S1028 revises the Citizens Property Insurance Corporation’s eligibility and depopulation framework by expanding the clearinghouse process into separate commercial lines tracks for authorized insurers and surplus lines insurers. The bill requires Citizens to establish a personal lines clearinghouse and, by January 1, 2027, separate commercial lines clearinghouses to route new and renewing applicants first to private-market coverage before Citizens may bind or renew a policy. It also changes when applicants and policyholders become ineligible for Citizens coverage if they receive qualifying offers from participating insurers, and it sets different standards for personal lines, commercial residential, and commercial nonresidential risks.
The bill defines and uses “comparable coverage” and “total cost of insurance coverage” to compare Citizens’ coverage with offers from authorized insurers and approved surplus lines clearinghouse insurers. For commercial risks, Citizens generally may not issue new coverage when a surplus lines offer is comparable and within 15 percent of Citizens’ total cost, and for authorized insurers the bill uses eligibility-threshold tests tied to existing statutory thresholds. It also creates notice, agency, commission, data-sharing, confidentiality, and approval requirements for the clearinghouse administrators, while directing the Office of Insurance Regulation to review and approve the program and related contracts, procedures, and controls.
Impact
The bill amends s. 627.351 and s. 627.3518, F.S., to restructure Citizens’ role in the market and to add a new commercial surplus lines clearinghouse alongside the existing personal lines process. It limits Citizens’ ability to write new commercial residential and commercial nonresidential business when comparable private coverage is available under the bill’s pricing tests, requires risk and policy information sharing with clearinghouse administrators, and authorizes participation by approved surplus lines clearinghouse insurers under specified conditions. It also revises agent appointment and commission rules, creates confidentiality protections for proprietary underwriting information, bars discretionary rate adjustments for certain surplus lines risks, and requires OIR approval of the program through final order.
Sentiment
The bill appears to have been broadly supported in committee and on the floor, with unanimous or near-unanimous votes in the Senate committees and strong final passage in both chambers. The final floor votes show only limited opposition, suggesting general agreement with the goal of moving more property insurance business out of Citizens and into the private market. The absence of committee transcript material limits insight into detailed debate, but the voting pattern indicates the measure was viewed favorably overall.
Contention
The main policy tension in the bill is between depopulating Citizens and preserving access and affordability for policyholders. Supporters likely favor the bill’s effort to steer risks to private insurers and surplus lines carriers, while potential concerns center on whether offers are truly comparable, how the 15 percent cost test affects eligibility, and whether policyholders may be pushed into surplus lines coverage with different consumer protections. Additional points of contention include the new administrative burden on agents and insurers, the handling of commissions and appointments, and the confidentiality of underwriting data shared through the clearinghouse.