FL H0943

Citizens Property Insurance Corporation must establish a commercial lines clearinghouse by January 1, 2027, to connect commercial residential and nonresidential applicants with approved surplus lines insurers that have an A.M. Best rating of "A-" or higher and financial size category of A-VII or higher.

For commercial risks, if an approved surplus lines insurer offers coverage at no more than 20% above Citizens' total cost, Citizens must impose an "equalization adjustment" on the policy equal to the difference, or cannot issue/renew coverage without doing so.

The corporation must select a commercial lines clearinghouse administrator within 90 days of the act's effective date; the administrator may charge reasonable fees to participating surplus lines insurers but Citizens may not fund the commercial clearinghouse operations.

Applications for commercial coverage must be submitted through the clearinghouse with a 5-business-day waiting period before Citizens can bind coverage, and Citizens must provide its unalterable coverage terms and pricing before surplus lines insurers receive submissions.

The Office of Insurance Regulation may review program operations for solvency risks and recommend temporary measures to the Financial Services Commission, including suspension of the equalization adjustment or temporary exclusion of participating insurers.