CS for CS for SB 1574 - Citizens Property Insurance Corporation

• Revises Citizens Property Insurance Corporation policyholder surcharge structure based on total number of policyholders: 15% surcharge if less than 1 million policyholders, 20% if 1-1.5 million, and 25% if 1.5 million or more.

• Limits annual rate increases to 10% for personal residential properties used as primary residence with dwelling replacement cost under $700,000 (or single condominiums under $700,000 combined replacement cost) for policies initially issued before January 1, 2022.

• Allows eligible surplus lines insurers to participate in Citizens depopulation, take-out, and keep-out programs on the same terms as authorized insurers, subject to office approval and requirements including $50 million surplus, strong financial ratings, and adequate reinsurance reserves.

• Establishes new eligibility thresholds allowing risks with dwelling replacement costs of $700,000 or more to be ineligible for Citizens coverage when offered comparable coverage from qualified surplus lines insurers no more than 15% higher than Citizens premium.

• Caps agent commissions for Citizens policies at the average of commissions paid by the 20 largest admitted property insurers in the state.