CS for SB 186 - Citizens Property Insurance Corporation

• Changes requirement for Citizens to use a single account from permissive ("may") to mandatory ("shall") once financing obligations are no longer outstanding.

• Establishes tiered policyholder surcharge rates based on total policyholders: 15% if under 1 million; 20% if 1-1.5 million; 25% if 1.5 million or more, and imposes an annual $5 renewal surcharge on primary residence policies.

• Defines "primary residence" as a dwelling with replacement cost under $700,000 (or condominium with combined dwelling and contents under $700,000) and limits policyholders and their spouses to one primary residence with Citizens.

• Allows eligible surplus lines insurers to participate in Citizens depopulation, take-out, and keep-out programs on the same terms as authorized insurers if they meet financial and operational requirements, including $50 million surplus and superior financial ratings.

• Establishes eligibility thresholds for high-value properties: risks with $700,000+ replacement cost are ineligible if offered comparable coverage from qualified surplus lines insurers at Citizens' premium or less, while lower-value properties remain eligible.

• Limits agent commissions to the average commission paid by the 20 largest property insurers in the prior year and requires policies assumed from unsound insurers to charge the higher of the unsound insurer's last premium or Citizens' applicable premium.