Bill Text: FL S0378 | 2013 | Regular Session | Comm Sub
Bill Title: Manufactured and Mobile Homes
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2013-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/CS/HB 573 (Ch. 2013-158) [S0378 Detail]
Download: Florida-2013-S0378-Comm_Sub.html
Florida Senate - 2013 CS for SB 378 By the Committee on Banking and Insurance; and Senator Bean 597-02425-13 2013378c1 1 A bill to be entitled 2 An act relating to manufactured and mobile homes; 3 amending s. 627.351, F.S.; requiring the Citizens 4 Property Insurance Corporation to provide coverage for 5 mobile homes and related structures; amending s. 6 723.06115, F.S.; specifying the procedure for 7 requesting and obtaining funds from the Florida Mobile 8 Home Relocation Trust Fund to pay for the operational 9 costs of the Florida Mobile Home Relocation 10 Corporation and the relocation costs of mobile home 11 owners; providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Paragraph (c) of subsection (6) of section 16 627.351, Florida Statutes, is amended to read: 17 627.351 Insurance risk apportionment plans.— 18 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 19 (c) The corporation’s plan of operation: 20 1. Must provide for adoption of residential property and 21 casualty insurance policy forms and commercial residential and 22 nonresidential property insurance forms, which must be approved 23 by the office before use. The corporation shall adopt the 24 following policy forms: 25 a. Standard personal lines policy forms that are 26 comprehensive multiperil policies providing full coverage of a 27 residential property equivalent to the coverage provided in the 28 private insurance market under an HO-3, HO-4, or HO-6 policy. 29 b. Basic personal lines policy forms that are policies 30 similar to an HO-8 policy or a dwelling fire policy that provide 31 coverage meeting the requirements of the secondary mortgage 32 market, but which is more limited than the coverage under a 33 standard policy. 34 c. Commercial lines residential and nonresidential policy 35 forms that are generally similar to the basic perils of full 36 coverage obtainable for commercial residential structures and 37 commercial nonresidential structures in the admitted voluntary 38 market. 39 d. Personal lines and commercial lines residential property 40 insurance forms that cover the peril of wind only. The forms are 41 applicable only to residential properties located in areas 42 eligible for coverage under the coastal account referred to in 43 sub-subparagraph (b)2.a. 44 e. Commercial lines nonresidential property insurance forms 45 that cover the peril of wind only. The forms are applicable only 46 to nonresidential properties located in areas eligible for 47 coverage under the coastal account referred to in sub 48 subparagraph (b)2.a. 49 f. The corporation may adopt variations of the policy forms 50 listed in sub-subparagraphs a.-e. which contain more restrictive 51 coverage. 52 g. Effective January 1, 2013, the corporation shall offer a 53 basic personal lines policy similar to an HO-8 policy with 54 dwelling repair based on common construction materials and 55 methods. 56 2. Must provide that the corporation adopt a program in 57 which the corporation and authorized insurers enter into quota 58 share primary insurance agreements for hurricane coverage, as 59 defined in s. 627.4025(2)(a), for eligible risks, and adopt 60 property insurance forms for eligible risks which cover the 61 peril of wind only. 62 a. As used in this subsection, the term: 63 (I) “Quota share primary insurance” means an arrangement in 64 which the primary hurricane coverage of an eligible risk is 65 provided in specified percentages by the corporation and an 66 authorized insurer. The corporation and authorized insurer are 67 each solely responsible for a specified percentage of hurricane 68 coverage of an eligible risk as set forth in a quota share 69 primary insurance agreement between the corporation and an 70 authorized insurer and the insurance contract. The 71 responsibility of the corporation or authorized insurer to pay 72 its specified percentage of hurricane losses of an eligible 73 risk, as set forth in the agreement, may not be altered by the 74 inability of the other party to pay its specified percentage of 75 losses. Eligible risks that are provided hurricane coverage 76 through a quota share primary insurance arrangement must be 77 provided policy forms that set forth the obligations of the 78 corporation and authorized insurer under the arrangement, 79 clearly specify the percentages of quota share primary insurance 80 provided by the corporation and authorized insurer, and 81 conspicuously and clearly state that the authorized insurer and 82 the corporation may not be held responsible beyond their 83 specified percentage of coverage of hurricane losses. 84 (II) “Eligible risks” means personal lines residential and 85 commercial lines residential risks that meet the underwriting 86 criteria of the corporation and are located in areas that were 87 eligible for coverage by the Florida Windstorm Underwriting 88 Association on January 1, 2002. 89 b. The corporation may enter into quota share primary 90 insurance agreements with authorized insurers at corporation 91 coverage levels of 90 percent and 50 percent. 92 c. If the corporation determines that additional coverage 93 levels are necessary to maximize participation in quota share 94 primary insurance agreements by authorized insurers, the 95 corporation may establish additional coverage levels. However, 96 the corporation’s quota share primary insurance coverage level 97 may not exceed 90 percent. 98 d. Any quota share primary insurance agreement entered into 99 between an authorized insurer and the corporation must provide 100 for a uniform specified percentage of coverage of hurricane 101 losses, by county or territory as set forth by the corporation 102 board, for all eligible risks of the authorized insurer covered 103 under the agreement. 104 e. Any quota share primary insurance agreement entered into 105 between an authorized insurer and the corporation is subject to 106 review and approval by the office. However, such agreement shall 107 be authorized only as to insurance contracts entered into 108 between an authorized insurer and an insured who is already 109 insured by the corporation for wind coverage. 110 f. For all eligible risks covered under quota share primary 111 insurance agreements, the exposure and coverage levels for both 112 the corporation and authorized insurers shall be reported by the 113 corporation to the Florida Hurricane Catastrophe Fund. For all 114 policies of eligible risks covered under such agreements, the 115 corporation and the authorized insurer must maintain complete 116 and accurate records for the purpose of exposure and loss 117 reimbursement audits as required by fund rules. The corporation 118 and the authorized insurer shall each maintain duplicate copies 119 of policy declaration pages and supporting claims documents. 120 g. The corporation board shall establish in its plan of 121 operation standards for quota share agreements which ensure that 122 there is no discriminatory application among insurers as to the 123 terms of the agreements, pricing of the agreements, incentive 124 provisions if any, and consideration paid for servicing policies 125 or adjusting claims. 126 h. The quota share primary insurance agreement between the 127 corporation and an authorized insurer must set forth the 128 specific terms under which coverage is provided, including, but 129 not limited to, the sale and servicing of policies issued under 130 the agreement by the insurance agent of the authorized insurer 131 producing the business, the reporting of information concerning 132 eligible risks, the payment of premium to the corporation, and 133 arrangements for the adjustment and payment of hurricane claims 134 incurred on eligible risks by the claims adjuster and personnel 135 of the authorized insurer. Entering into a quota sharing 136 insurance agreement between the corporation and an authorized 137 insurer is voluntary and at the discretion of the authorized 138 insurer. 139 3.a. May provide that the corporation may employ or 140 otherwise contract with individuals or other entities to provide 141 administrative or professional services that may be appropriate 142 to effectuate the plan. The corporation may borrow funds by 143 issuing bonds or by incurring other indebtedness, and shall have 144 other powers reasonably necessary to effectuate the requirements 145 of this subsection, including, without limitation, the power to 146 issue bonds and incur other indebtedness in order to refinance 147 outstanding bonds or other indebtedness. The corporation may 148 seek judicial validation of its bonds or other indebtedness 149 under chapter 75. The corporation may issue bonds or incur other 150 indebtedness, or have bonds issued on its behalf by a unit of 151 local government pursuant to subparagraph (q)2. in the absence 152 of a hurricane or other weather-related event, upon a 153 determination by the corporation, subject to approval by the 154 office, that such action would enable it to efficiently meet the 155 financial obligations of the corporation and that such 156 financings are reasonably necessary to effectuate the 157 requirements of this subsection. The corporation may take all 158 actions needed to facilitate tax-free status for such bonds or 159 indebtedness, including formation of trusts or other affiliated 160 entities. The corporation may pledge assessments, projected 161 recoveries from the Florida Hurricane Catastrophe Fund, other 162 reinsurance recoverables, policyholder surcharges and other 163 surcharges, and other funds available to the corporation as 164 security for bonds or other indebtedness. In recognition of s. 165 10, Art. I of the State Constitution, prohibiting the impairment 166 of obligations of contracts, it is the intent of the Legislature 167 that no action be taken whose purpose is to impair any bond 168 indenture or financing agreement or any revenue source committed 169 by contract to such bond or other indebtedness. 170 b. To ensure that the corporation is operating in an 171 efficient and economic manner while providing quality service to 172 policyholders, applicants, and agents, the board shall 173 commission an independent third-party consultant having 174 expertise in insurance company management or insurance company 175 management consulting to prepare a report and make 176 recommendations on the relative costs and benefits of 177 outsourcing various policy issuance and service functions to 178 private servicing carriers or entities performing similar 179 functions in the private market for a fee, rather than 180 performing such functions in-house. In making such 181 recommendations, the consultant shall consider how other 182 residual markets, both in this state and around the country, 183 outsource appropriate functions or use servicing carriers to 184 better match expenses with revenues that fluctuate based on a 185 widely varying policy count. The report must be completed by 186 July 1, 2012. Upon receiving the report, the board shall develop 187 a plan to implement the report and submit the plan for review, 188 modification, and approval to the Financial Services Commission. 189 Upon the commission’s approval of the plan, the board shall 190 begin implementing the plan by January 1, 2013. 191 4. Must require that the corporation operate subject to the 192 supervision and approval of a board of governors consisting of 193 eight individuals who are residents of this state, from 194 different geographical areas of this state. 195 a. The Governor, the Chief Financial Officer, the President 196 of the Senate, and the Speaker of the House of Representatives 197 shall each appoint two members of the board. At least one of the 198 two members appointed by each appointing officer must have 199 demonstrated expertise in insurance andisdeemed to be within 200 the scope of the exemption provided in s. 112.313(7)(b). The 201 Chief Financial Officer shall designate one of the appointees as 202 chair. All board members serve at the pleasure of the appointing 203 officer. All members of the board are subject to removal at will 204 by the officers who appointed them. All board members, including 205 the chair, must be appointed to serve for 3-year terms beginning 206 annually on a date designated by the plan. However, for the 207 first term beginning on or after July 1, 2009, each appointing 208 officer shall appoint one member of the board for a 2-year term 209 and one member for a 3-year term. A board vacancy shall be 210 filled for the unexpired term by the appointing officer. The 211 Chief Financial Officer shall appoint a technical advisory group 212 to provide information and advice to the board in connection 213 with the board’s duties under this subsection. The executive 214 director and senior managers of the corporation shall be engaged 215 by the board and serve at the pleasure of the board. Any 216 executive director appointed on or after July 1, 2006, is 217 subject to confirmation by the Senate. The executive director is 218 responsible for employing other staff as the corporation may 219 require, subject to review and concurrence by the board. 220 b. The board shall create a Market Accountability Advisory 221 Committee to assist the corporation in developing awareness of 222 its rates and its customer and agent service levels in 223 relationship to the voluntary market insurers writing similar 224 coverage. 225 (I) The members of the advisory committee consist of the 226 following 11 persons, one of whom must be elected chair by the 227 members of the committee: four representatives, one appointed by 228 the Florida Association of Insurance Agents, one by the Florida 229 Association of Insurance and Financial Advisors, one by the 230 Professional Insurance Agents of Florida, and one by the Latin 231 American Association of Insurance Agencies; three 232 representatives appointed by the insurers with the three highest 233 voluntary market share of residential property insurance 234 business in the state; one representative from the Office of 235 Insurance Regulation; one consumer appointed by the board who is 236 insured by the corporation at the time of appointment to the 237 committee; one representative appointed by the Florida 238 Association of Realtors; and one representative appointed by the 239 Florida Bankers Association. All members shall be appointed to 240 3-year terms and may serve for consecutive terms. 241 (II) The committee shall report to the corporation at each 242 board meeting on insurance market issues which may include rates 243 and rate competition with the voluntary market; service, 244 including policy issuance, claims processing, and general 245 responsiveness to policyholders, applicants, and agents; and 246 matters relating to depopulation. 247 5. Must provide a procedure for determining the eligibility 248 of a risk for coverage, as follows: 249 a. Subject to s. 627.3517, with respect to personal lines 250 residential risks, if the risk is offered coverage from an 251 authorized insurer at the insurer’s approved rate under a 252 standard policy including wind coverage or, if consistent with 253 the insurer’s underwriting rules as filed with the office, a 254 basic policy including wind coverage, for a new application to 255 the corporation for coverage, the risk is not eligible for any 256 policy issued by the corporation unless the premium for coverage 257 from the authorized insurer is more than 15 percent greater than 258 the premium for comparable coverage from the corporation. If the 259 risk is not able to obtain such offer, the risk is eligible for 260 a standard policy including wind coverage or a basic policy 261 including wind coverage issued by the corporation; however, if 262 the risk could not be insured under a standard policy including 263 wind coverage regardless of market conditions, the risk is 264 eligible for a basic policy including wind coverage unless 265 rejected under subparagraph 8. However, a policyholder of the 266 corporation or a policyholder removed from the corporation 267 through an assumption agreement until the end of the assumption 268 period remains eligible for coverage from the corporation 269 regardless of any offer of coverage from an authorized insurer 270 or surplus lines insurer. The corporation shall determine the 271 type of policy to be provided on the basis of objective 272 standards specified in the underwriting manual and based on 273 generally accepted underwriting practices. 274 (I) If the risk accepts an offer of coverage through the 275 market assistance plan or through a mechanism established by the 276 corporation before a policy is issued to the risk by the 277 corporation or during the first 30 days of coverage by the 278 corporation, and the producing agent who submitted the 279 application to the plan or to the corporation is not currently 280 appointed by the insurer, the insurer shall: 281 (A) Pay to the producing agent of record of the policy for 282 the first year, an amount that is the greater of the insurer’s 283 usual and customary commission for the type of policy written or 284 a fee equal to the usual and customary commission of the 285 corporation; or 286 (B) Offer to allow the producing agent of record of the 287 policy to continue servicing the policy for at least 1 year and 288 offer to pay the agent the greater of the insurer’s or the 289 corporation’s usual and customary commission for the type of 290 policy written. 291 292 If the producing agent is unwilling or unable to accept 293 appointment, the new insurer shall pay the agent in accordance 294 with sub-sub-sub-subparagraph (A). 295 (II) If the corporation enters into a contractual agreement 296 for a take-out plan, the producing agent of record of the 297 corporation policy is entitled to retain any unearned commission 298 on the policy, and the insurer shall: 299 (A) Pay to the producing agent of record, for the first 300 year, an amount that is the greater of the insurer’s usual and 301 customary commission for the type of policy written or a fee 302 equal to the usual and customary commission of the corporation; 303 or 304 (B) Offer to allow the producing agent of record to 305 continue servicing the policy for at least 1 year and offer to 306 pay the agent the greater of the insurer’s or the corporation’s 307 usual and customary commission for the type of policy written. 308 309 If the producing agent is unwilling or unable to accept 310 appointment, the new insurer shall pay the agent in accordance 311 with sub-sub-sub-subparagraph (A). 312 b. With respect to commercial lines residential risks, for 313 a new application to the corporation for coverage, if the risk 314 is offered coverage under a policy including wind coverage from 315 an authorized insurer at its approved rate, the risk is not 316 eligible for a policy issued by the corporation unless the 317 premium for coverage from the authorized insurer is more than 15 318 percent greater than the premium for comparable coverage from 319 the corporation. If the risk is not able to obtain any such 320 offer, the risk is eligible for a policy including wind coverage 321 issued by the corporation. However, a policyholder of the 322 corporation or a policyholder removed from the corporation 323 through an assumption agreement until the end of the assumption 324 period remains eligible for coverage from the corporation 325 regardless of an offer of coverage from an authorized insurer or 326 surplus lines insurer. 327 (I) If the risk accepts an offer of coverage through the 328 market assistance plan or through a mechanism established by the 329 corporation before a policy is issued to the risk by the 330 corporation or during the first 30 days of coverage by the 331 corporation, and the producing agent who submitted the 332 application to the plan or the corporation is not currently 333 appointed by the insurer, the insurer shall: 334 (A) Pay to the producing agent of record of the policy, for 335 the first year, an amount that is the greater of the insurer’s 336 usual and customary commission for the type of policy written or 337 a fee equal to the usual and customary commission of the 338 corporation; or 339 (B) Offer to allow the producing agent of record of the 340 policy to continue servicing the policy for at least 1 year and 341 offer to pay the agent the greater of the insurer’s or the 342 corporation’s usual and customary commission for the type of 343 policy written. 344 345 If the producing agent is unwilling or unable to accept 346 appointment, the new insurer shall pay the agent in accordance 347 with sub-sub-sub-subparagraph (A). 348 (II) If the corporation enters into a contractual agreement 349 for a take-out plan, the producing agent of record of the 350 corporation policy is entitled to retain any unearned commission 351 on the policy, and the insurer shall: 352 (A) Pay to the producing agent of record, for the first 353 year, an amount that is the greater of the insurer’s usual and 354 customary commission for the type of policy written or a fee 355 equal to the usual and customary commission of the corporation; 356 or 357 (B) Offer to allow the producing agent of record to 358 continue servicing the policy for at least 1 year and offer to 359 pay the agent the greater of the insurer’s or the corporation’s 360 usual and customary commission for the type of policy written. 361 362 If the producing agent is unwilling or unable to accept 363 appointment, the new insurer shall pay the agent in accordance 364 with sub-sub-sub-subparagraph (A). 365 c. For purposes of determining comparable coverage under 366 sub-subparagraphs a. and b., the comparison must be based on 367 those forms and coverages that are reasonably comparable. The 368 corporation may rely on a determination of comparable coverage 369 and premium made by the producing agent who submits the 370 application to the corporation, made in the agent’s capacity as 371 the corporation’s agent. A comparison may be made solely of the 372 premium with respect to the main building or structure only on 373 the following basis: the same coverage A or other building 374 limits; the same percentage hurricane deductible that applies on 375 an annual basis or that applies to each hurricane for commercial 376 residential property; the same percentage of ordinance and law 377 coverage, if the same limit is offered by both the corporation 378 and the authorized insurer; the same mitigation credits, to the 379 extent the same types of credits are offered both by the 380 corporation and the authorized insurer; the same method for loss 381 payment, such as replacement cost or actual cash value, if the 382 same method is offered both by the corporation and the 383 authorized insurer in accordance with underwriting rules; and 384 any other form or coverage that is reasonably comparable as 385 determined by the board. If an application is submitted to the 386 corporation for wind-only coverage in the coastal account, the 387 premium for the corporation’s wind-only policy plus the premium 388 for the ex-wind policy that is offered by an authorized insurer 389 to the applicant must be compared to the premium for multiperil 390 coverage offered by an authorized insurer, subject to the 391 standards for comparison specified in this subparagraph. If the 392 corporation or the applicant requests from the authorized 393 insurer a breakdown of the premium of the offer by types of 394 coverage so that a comparison may be made by the corporation or 395 its agent and the authorized insurer refuses or is unable to 396 provide such information, the corporation may treat the offer as 397 not being an offer of coverage from an authorized insurer at the 398 insurer’s approved rate. 399 6. Must include rules for classifications of risks and 400 rates. 401 7. Must provide that if premium and investment income for 402 an account attributable to a particular calendar year are in 403 excess of projected losses and expenses for the account 404 attributable to that year, such excess shall be held in surplus 405 in the account. Such surplus must be available to defray 406 deficits in that account as to future years and used for that 407 purpose before assessing assessable insurers and assessable 408 insureds as to any calendar year. 409 8. Must provide objective criteria and procedures to be 410 uniformly applied to all applicants in determining whether an 411 individual risk is so hazardous as to be uninsurable. In making 412 this determination and in establishing the criteria and 413 procedures, the following must be considered: 414 a. Whether the likelihood of a loss for the individual risk 415 is substantially higher than for other risks of the same class; 416 and 417 b. Whether the uncertainty associated with the individual 418 risk is such that an appropriate premium cannot be determined. 419 420 The acceptance or rejection of a risk by the corporation shall 421 be construed as the private placement of insurance, and the 422 provisions of chapter 120 do not apply. 423 9. Must provide that the corporation make its best efforts 424 to procure catastrophe reinsurance at reasonable rates, to cover 425 its projected 100-year probable maximum loss as determined by 426 the board of governors. 427 10. The policies issued by the corporation must provide 428 that if the corporation or the market assistance plan obtains an 429 offer from an authorized insurer to cover the risk at its 430 approved rates, the risk is no longer eligible for renewal 431 through the corporation, except as otherwise provided in this 432 subsection. 433 11. Corporation policies and applications must include a 434 notice that the corporation policy could, under this section, be 435 replaced with a policy issued by an authorized insurer which 436 does not provide coverage identical to the coverage provided by 437 the corporation. The notice must also specify that acceptance of 438 corporation coverage creates a conclusive presumption that the 439 applicant or policyholder is aware of this potential. 440 12. May establish, subject to approval by the office, 441 different eligibility requirements and operational procedures 442 for any line or type of coverage for any specified county or 443 area if the board determines that such changes are justified due 444 to the voluntary market being sufficiently stable and 445 competitive in such area or for such line or type of coverage 446 and that consumers who, in good faith, are unable to obtain 447 insurance through the voluntary market through ordinary methods 448 continue to have access to coverage from the corporation. If 449 coverage is sought in connection with a real property transfer, 450 the requirements and procedures may not provide an effective 451 date of coverage later than the date of the closing of the 452 transfer as established by the transferor, the transferee, and, 453 if applicable, the lender. 454 13. Must provide that, with respect to the coastal account, 455 any assessable insurer with a surplus as to policyholders of $25 456 million or less writing 25 percent or more of its total 457 countrywide property insurance premiums in this state may 458 petition the office, within the first 90 days of each calendar 459 year, to qualify as a limited apportionment company. A regular 460 assessment levied by the corporation on a limited apportionment 461 company for a deficit incurred by the corporation for the 462 coastal account may be paid to the corporation on a monthly 463 basis as the assessments are collected by the limited 464 apportionment company from its insureds, but a limited 465 apportionment company must begin collecting the regular 466 assessments not later than 90 days after the regular assessments 467 are levied by the corporation, and the regular assessments must 468 be paid in full within 15 months after being levied by the 469 corporation. A limited apportionment company shall collect from 470 its policyholders any emergency assessment imposed under sub 471 subparagraph (b)3.d. The plan must provide that, if the office 472 determines that any regular assessment will result in an 473 impairment of the surplus of a limited apportionment company, 474 the office may direct that all or part of such assessment be 475 deferred as provided in subparagraph (q)4. However, an emergency 476 assessment to be collected from policyholders under sub 477 subparagraph (b)3.d. may not be limited or deferred. 478 14. Must provide that the corporation appoint as its 479 licensed agents only those agents who also hold an appointment 480 as defined in s. 626.015(3) with an insurer who at the time of 481 the agent’s initial appointment by the corporation is authorized 482 to write and is actually writing personal lines residential 483 property coverage, commercial residential property coverage, or 484 commercial nonresidential property coverage within the state. 485 15. Must provide a premium payment plan option to its 486 policyholders which, at a minimum, allows for quarterly and 487 semiannual payment of premiums. A monthly payment plan may, but 488 is not required to, be offered. 489 16. Must limit coverage on mobile homes or manufactured 490 homes built before 1994 to actual cash value of the dwelling 491 rather than replacement costs of the dwelling. 492 17. Must provide coverage for manufactured or mobile home 493 dwellings. Such coverage must also include the following 494 attached structures: 495 a. Screened enclosures that are aluminum framed or screened 496 enclosures that are not covered by the same or substantially the 497 same materials as that of the primary dwelling; 498 b. Carports that are aluminum or carports not covered by 499 the same or substantially the same materials as that of the 500 primary dwelling; and 501 c. Patios that have a roof covering constructed of 502 materials that are not the same or substantially the same 503 materials as that of the primary dwelling. 504 505 The corporation shall make available a policy for mobile homes 506 or manufactured homes for a minimum insured value of at least 507 $3,000. 508 18.17.May provide such limits of coverage as the board 509 determines, consistent with the requirements of this subsection. 510 19.18.May require commercial property to meet specified 511 hurricane mitigation construction features as a condition of 512 eligibility for coverage. 513 20.19.Must provide that new or renewal policies issued by 514 the corporation on or after January 1, 2012, which cover 515 sinkhole loss do not include coverage for any loss to 516 appurtenant structures, driveways, sidewalks, decks, or patios 517 that are directly or indirectly caused by sinkhole activity. The 518 corporation shall exclude such coverage using a notice of 519 coverage change, which may be included with the policy renewal, 520 and not by issuance of a notice of nonrenewal of the excluded 521 coverage upon renewal of the current policy. 522 21.20.As of January 1, 2012, must require that the agent 523 obtain from an applicant for coverage from the corporation an 524 acknowledgment signed by the applicant, which includes, at a 525 minimum, the following statement: 526 527 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 528 AND ASSESSMENT LIABILITY: 529 530 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 531 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A 532 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, 533 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND 534 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE 535 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT 536 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA 537 LEGISLATURE. 538 2. I ALSO UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 539 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 540 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 541 FLORIDA LEGISLATURE. 542 3. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 543 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE 544 STATE OF FLORIDA. 545 a. The corporation shall maintain, in electronic format or 546 otherwise, a copy of the applicant’s signed acknowledgment and 547 provide a copy of the statement to the policyholder as part of 548 the first renewal after the effective date of this subparagraph. 549 b. The signed acknowledgment form creates a conclusive 550 presumption that the policyholder understood and accepted his or 551 her potential surcharge and assessment liability as a 552 policyholder of the corporation. 553 Section 2. Section 723.06115, Florida Statutes, is amended 554 to read: 555 723.06115 Florida Mobile Home Relocation Trust Fund.— 556 (1) The Florida Mobile Home Relocation Trust FundThereis 557 established within the Department of Business and Professional 558 Regulation. TheFlorida Mobile Home Relocationtrust fund,is to 559 be used to fundby the department for the purpose of fundingthe 560 administration and operations of the Florida Mobile Home 561 Relocation Corporation. All interest earned from the investment 562 or deposit of moneys in the trust fund shall be deposited in the 563 trust fund. The trust fund shall be funded fromthemoneys 564 collected by the corporationdepartment under s.723.06116from 565 mobile home park owners under s. 723.06116,who change the use566of their mobile home parks;the surcharge collected by the 567 department under s. 723.007(2),;the surcharge collected by the 568 Department of Highway Safety and Motor Vehicles,;and fromby569 other appropriated funds. 570 (2) Moneys in the Florida Mobile Home Relocation Trust Fund 571 may be expended only: 572 (a) To pay the administration costs of the Florida Mobile 573 Home Relocation Corporation; and 574 (b) To carry out the purposes and objectives of theFlorida575Mobile Home Relocationcorporation by making payments to mobile 576 home owners under the relocation program. 577 (3) The department shall distribute moneys in the Florida 578 Mobile Home Relocation Trust Fund to the Florida Mobile Home 579 Relocation Corporation in accordance with the following: 580 (a) Before the beginning of each fiscal year, the 581 corporation shall submit its annual operating budget, as 582 approved by the corporation board, for the fiscal year and set 583 forth that amount to the department in writing. One-fourth of 584 the operating budget shall be transferred to the corporation 585 each quarter. The department shall make the first one-fourth 586 quarter transfer on the first business day of the fiscal year 587 and make the remaining one-fourth quarter transfers before the 588 second business day of the second, third, and fourth quarters. 589 The corporation board may approve changes to the operational 590 budget for a fiscal year by providing written notification of 591 such changes to the department. The written notification must 592 indicate the changes to the operational budget and the 593 conditions that were unforeseen at the time the corporation 594 developed the operational budget and why the changes are 595 essential in order to continue operation of the corporation. 596 (b) The corporation shall periodically submit requests to 597 the department for the transfer of funds to the corporation 598 needed to make payments to mobile home owners under the 599 relocation program. Requests must include documentation 600 indicating the amount of funds needed, the name and location of 601 the mobile home park, the number of approved applications for 602 moving expenses or abandonment allowance, and summary 603 information specifying the number and type, single-section or 604 multisection, of homes moved or abandoned. The department shall 605 process requests that include such documentation, subject to the 606 availability of sufficient funds within the trust fund within 5 607 business days after receipt of the request. Transfer requests 608 may be submitted electronically. 609 (c) Funds transferred from the trust fund to the 610 corporation shall be transferred electronically and shall be 611 transferred to and maintained in a qualified public depository 612 as defined in s. 280.02 which is specified by the corporation. 613 (4) Other than the requirements specified under this 614 section, neither the corporation nor the department are required 615 to take any other action as a prerequisite to accomplishing the 616 provisions of this section. 617 (5) This section does not preclude department inspection of 618 corporation records 5 business days after receipt of written 619 notice. 620 Section 3. This act shall take effect upon becoming a law.