Bill Commons
--- version:S 1028 Filed
+++ version:(document, no version)
@@ -1,532 +1,36 @@
-Florida Senate - 2026 SB 1028
+ Florida Senate - 2026 SENATOR AMENDMENT
+ Bill No. CS for CS for SB 1028
-By Senator Gruters
+ Ì626130kÎ626130
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-A bill to be entitled 1
-An act relating to the Citizens Property Insurance 2
-Corporation; amending s. 627.351, F.S.; requiring the 3
-corporation to charge a specified premium on certain 4
-risks; specifying that the premium for subsequent 5
-renewals of a corporation policy is subject to certain 6
-requirements; providing an exception; amending s. 7
-627.3518, F.S.; deleting an obsolete provision; 8
-defining terms; revising the definition of the term 9
-“program”; requiring the corporation to establish a 10
-personal lines clearinghouse for specified purposes; 11
-requiring, on or before a specified date, the 12
-corporation to implement a commercial lines 13
-clearinghouse for specified purposes; requiring, on or 14
-before a specified date, the corporation to develop 15
-and implement certain procedures; deleting reporting 16
-requirements; revising the rights and responsibilities 17
-the corporation has in establishing the program; 18
-authorizing approved surplus lines clearinghouse 19
-insurers to participate in the commercial lines 20
-clearinghouse; prohibiting such insurers from 21
-participating in the personal lines clearinghouse; 22
-specifying that participation in the program is not 23
-mandatory for such insurers; revising prohibitions and 24
-requirements for insurers making offers of coverage to 25
-new applicants or renewal policyholders through the 26
-program; providing construction; specifying that 27
-applicants for new commercial lines residential 28
-coverage are not eligible for coverage from the 29
-Florida Senate - 2026 SB 1028
+ LEGISLATIVE ACTION
+ Senate . House
+ .
+ .
+ .
+ .
+ .
+ —————————————————————————————————————————————————————————————————
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-corporation under certain circumstances; deleting the 30
-definition of the term “primary residence”; specifying 31
-the circumstances under which policyholders of the 32
-corporation are not eligible for commercial lines 33
-residential coverage with the corporation; authorizing 34
-applicants or insureds to elect to accept coverage 35
-with specified insurers or elect to accept or continue 36
-coverage with the corporation under certain 37
-circumstances; authorizing insureds to elect to accept 38
-coverage with specified insurers or elect to accept or 39
-continue coverage with the corporation under certain 40
-circumstances; providing applicability; specifying 41
-that certain applicants remain eligible for coverage 42
-from the corporation; authorizing such applicants to 43
-elect to accept coverage with specified insurers or 44
-elect to accept or continue coverage with the 45
-corporation; requiring certain applicants to pay a 46
-specified premium for corporation coverage; providing 47
-applicability; revising the rights and authorizations 48
-for certain independent insurance agents; deleting a 49
-prohibition relating to commercial nonresidential 50
-policies; providing an effective date. 51
- 52
-Be It Enacted by the Legislature of the State of Florida: 53
- 54
-Section 1. Paragraph (oo) is added to subsection (6) of 55
-section 627.351, Florida Statutes, to read: 56
-627.351 Insurance risk apportionment plans.— 57
-(6) CITIZENS PROPERTY INSURANCE CORPORATION.— 58
-Florida Senate - 2026 SB 1028
+ —————————————————————————————————————————————————————————————————
+ Senator Gruters moved the following:
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-(oo) The corporation must charge a premium on a commercial 59
-residential or commercial nonresidential risk that has received 60
-an offer of coverage under s. 627.3518(5)(c)2., which premium is 61
-the greater of the premium offered by the approved surplus lines 62
-clearinghouse insurer for such coverage or the premium for 63
-coverage from the corporation calculated pursuant to paragraph 64
-(n). The premium for subsequent renewals of a corporation policy 65
-that is charged a premium equivalent to the premium offered by 66
-an approved surplus lines insurer under s. 627.3518(5)(c)2. is 67
-subject to the requirements of paragraph (n) as applied to the 68
-premium that was applied pursuant to this paragraph, unless the 69
-risk receives an offer at the subsequent renewal under s. 70
-627.3518(5)(c)2., in which case the premium shall be the greater 71
-of the premium offered at the subsequent renewal by the surplus 72
-lines insurer or the corporation’s premium on the risk. 73
-Section 2. Section 627.3518, Florida Statutes, is amended 74
-to read: 75
-627.3518 Citizens Property Insurance Corporation 76
-policyholder eligibility clearinghouse program.—The purpose of 77
-this section is to provide a framework for the corporation to 78
-implement a clearinghouse program by January 1, 2014. 79
-(1) As used in this section, the term: 80
-(a) “Approved surplus lines clearinghouse insurer” means an 81
-eligible surplus lines insurer that has a financial strength 82
-rating of “A-” or higher from A.M. Best Company and that the 83
-corporation determines has demonstrated competence in writing 84
-the types of risks for which it will make offers of coverage 85
-through the program. 86
-(b) “Corporation” means Citizens Property Insurance 87
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-Corporation. 88
-(c)(b) “Exclusive agent” means any licensed insurance agent 89
-that has, by contract, agreed to act exclusively for one company 90
-or group of affiliated insurance companies and is disallowed by 91
-the provisions of that contract to directly write for any other 92
-unaffiliated insurer absent express consent from the company or 93
-group of affiliated insurance companies. 94
-(d)(c) “Independent agent” means any licensed insurance 95
-agent not described in paragraph (c) (b). 96
-(e) “Primary residence” has the same meaning as in s. 97
-627.351(6)(c)2.a. 98
-(f)(d) “Program” means the clearinghouse created under this 99
-section, consisting of the personal lines clearinghouse and the 100
-commercial lines clearinghouse. 101
-(g) “Surplus lines agent” means an insurance agent licensed 102
-pursuant to s. 626.927 or s. 626.9272. 103
-(2)(a) The corporation shall establish a personal lines 104
-clearinghouse in order to confirm an applicant’s eligibility 105
-with the corporation, and to enhance access of new applicants 106
-for personal lines coverage and existing personal lines 107
-policyholders of the corporation to offers of coverage from 108
-authorized insurers, and the corporation shall establish a 109
-program for personal residential risks in order to facilitate 110
-the diversion of ineligible applicants and existing 111
-policyholders from the corporation into the voluntary insurance 112
-market. 113
-(b) The corporation shall implement, on or before January 114
-1, 2027, a commercial lines clearinghouse in order to enhance 115
-new applicants access to commercial residential coverage and 116
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-commercial nonresidential coverage and existing policyholders of 117
-the corporation to offers of coverage from approved surplus 118
-lines clearinghouse insurers. The corporation shall also develop 119
-and implement, on or before January 1, 2028, appropriate 120
-procedures for facilitating the diversion of new ineligible 121
-applicants and existing policyholders of the corporation to 122
-offers of commercial residential and commercial nonresidential 123
-coverage from authorized insurers for commercial residential 124
-coverage into the private insurance market and shall report such 125
-procedures to the President of the Senate and the Speaker of the 126
-House of Representatives by January 1, 2014. 127
-(3) The corporation board shall establish the clearinghouse 128
-program as an organizational unit within the corporation. The 129
-program shall have all the rights and responsibilities in 130
-carrying out its duties as a licensed general lines agent and a 131
-surplus lines agent, but may not be required to employ or engage 132
-a licensed general lines agent or a surplus lines agent, or to 133
-maintain an insurance agency license to carry out its activities 134
-in the solicitation and placement of insurance coverage. In 135
-establishing the program, the corporation has all of the 136
-following rights and responsibilities may: 137
-(a) May require all new applications, and all policies due 138
-for renewal, to be submitted for coverage to the program in 139
-order to facilitate obtaining an offer of coverage from an 140
-authorized insurer or, if the risk is a commercial risk, 141
-obtaining an offer of coverage from an approved surplus lines 142
-clearinghouse insurer, before binding or renewing coverage by 143
-the corporation. 144
-(b) May employ or otherwise contract with individuals or 145
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-other entities for appropriate administrative or professional 146
-services to effectuate the plan within the corporation in 147
-accordance with the applicable purchasing requirements under s. 148
-627.351 and, for purposes of implementing the commercial lines 149
-clearinghouse and providing offers of coverage from approved 150
-surplus lines clearinghouse insurers on or before January 1, 151
-2028, contract with such individuals or entities in accordance 152
-with s. 287.057(3)(c). 153
-(c) May enter into contracts with any authorized insurer 154
-and any approved surplus lines clearinghouse insurer to 155
-participate in the program and accept an appointment by such 156
-insurer. 157
-(d) May provide funds to operate the program. Insurers and 158
-agents participating in the program are not required to pay a 159
-fee to offset or partially offset the cost of the program or use 160
-the program for renewal of policies initially written through 161
-the clearinghouse. 162
-(e) May develop an enhanced application that includes 163
-information to assist private insurers in determining whether to 164
-make an offer of coverage through the program. 165
-(f) For personal lines residential risks, may require that, 166
-before approving all new applications for coverage by the 167
-corporation, that every application be subject to a period of 2 168
-business days when any insurer participating in the program may 169
-select the application for coverage. The insurer may issue a 170
-binder on any policy selected for coverage for a period of at 171
-least 30 days but not more than 60 days. 172
-(g) Shall, in creating the commercial lines clearinghouse, 173
-establish criteria to determine the capabilities necessary to 174
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-effectively provide and manage the commercial lines 175
-clearinghouse. For facilitating offers of surplus lines 176
-coverage, such criteria must include confirmed expertise in the 177
-surplus lines market, at least 5 years of publicly available 178
-audited financial statements, the ability to facilitate all 179
-approved surplus lines clearinghouse insurers to participate in 180
-the commercial lines clearinghouse on terms established by the 181
-corporation, and other criteria that the corporation determines 182
-necessary to effectively establish and manage offers of surplus 183
-lines coverage through the commercial lines clearinghouse. 184
-(4) Any authorized insurer may participate in the program; 185
-however, participation is not mandatory for any insurer. 186
-Approved surplus lines clearinghouse insurers may participate in 187
-the commercial lines clearinghouse but may not participate in 188
-the personal lines clearinghouse; however, participation in the 189
-program is not mandatory for any approved surplus lines insurer. 190
-Insurers making offers of coverage to new applicants or renewal 191
-policyholders through the program: 192
-(a) May not be required to individually appoint any agent 193
-whose customer is underwritten and bound through the program. 194
-Notwithstanding s. 626.112, insurers are not required to appoint 195
-any agent on a policy underwritten through the program for as 196
-long as that policy remains with the insurer. Insurers may, at 197
-their election, appoint any agent or surplus lines agent whose 198
-direct or indirect customer is initially underwritten and bound 199
-through the program. In the event an insurer accepts a policy 200
-from an agent who is not appointed pursuant to this paragraph, 201
-and thereafter elects to accept a policy from such agent, the 202
-provisions of s. 626.112 requiring appointment apply to the 203
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-agent. 204
-(b) Must enter into a limited agency agreement with each 205
-agent or surplus lines agent that is not appointed in accordance 206
-with paragraph (a) and whose customer is underwritten and bound 207
-through the program. In addition, a surplus lines agent that 208
-enters into a limited agency or broker agreement with an 209
-approved surplus lines clearinghouse insurer making an offer of 210
-coverage through the program must also enter into a limited 211
-agency or broker agreement with each producing agent whose 212
-customer is underwritten and bound through the program. 213
-(c) Must enter into its standard agency agreement with each 214
-agent or surplus lines agent whose customer is underwritten and 215
-bound through the program when that agent or surplus lines agent 216
-has been appointed by the insurer pursuant to s. 626.112. 217
-(d) Must comply with s. 627.4133(2) or, if the insurer is 218
-an approved surplus lines clearinghouse insurer, s. 626.9201. 219
-(e) May participate through their single-designated 220
-managing general agent or broker; however, the provisions of 221
-paragraph (6)(a) regarding ownership, control, and use of the 222
-expirations continue to apply. 223
-(f) For authorized insurers, must pay to the producing 224
-agent a commission equal to that paid by the corporation or the 225
-usual and customary commission paid by the insurer for that line 226
-of business, whichever is greater. 227
-(g) For approved surplus lines clearinghouse insurers, must 228
-pay a commission on premiums, exclusive of fees, surcharges, and 229
-taxes, to the surplus lines agent, managing general agent, or 230
-managing general underwriter placing the risk. The surplus lines 231
-agent, managing general agent, or managing general underwriter 232
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-must pay the producing agent a commission at least equal to the 233
-commission the corporation pays agents for coverage, calculated 234
-in the same manner and on the same basis used by the 235
-corporation, and shall retain the remainder of the total 236
-commission or equivalent compensation. This paragraph does not 237
-prohibit an agent from voluntarily accepting a lower commission 238
-at the agent’s sole discretion. 239
-(5)(a) Notwithstanding s. 627.3517, any applicant for new 240
-personal lines coverage from the corporation is not eligible for 241
-coverage from the corporation if provided an offer of comparable 242
-coverage from an authorized insurer through the program at a 243
-premium that is at or below the eligibility threshold for 244
-applicants for new coverage of a primary residence established 245
-in s. 627.351(6)(c)5.a., or for applicants for new coverage of a 246
-risk that is not a primary residence established in s. 247
-627.351(6)(c)5.b. Whenever an offer of comparable coverage for a 248
-personal lines risk is received for a policyholder of the 249
-corporation at renewal from an authorized insurer through the 250
-program which is at or below the eligibility threshold for 251
-primary residences of policyholders of the corporation 252
-established in s. 627.351(6)(c)5.a., or the eligibility 253
-threshold for risks that are not primary residences of 254
-policyholders of the corporation established in s. 255
-627.351(6)(c)5.b., the risk is not eligible for coverage with 256
-the corporation. In the event an offer of coverage for a new 257
-applicant is received from an authorized insurer through the 258
-program, and the premium offered exceeds the eligibility 259
-threshold for applicants for new coverage of a primary residence 260
-established in s. 627.351(6)(c)5.a., or the eligibility 261
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-threshold for applicants for new coverage on a risk that is not 262
-a primary residence established in s. 627.351(6)(c)5.b., the 263
-applicant or insured may elect to accept such coverage, or may 264
-elect to accept or continue coverage with the corporation. In 265
-the event an offer of coverage for a personal lines risk is 266
-received from an authorized insurer at renewal through the 267
-program, and the premium offered exceeds the eligibility 268
-threshold for primary residences of policyholders of the 269
-corporation established in s. 627.351(6)(c)5.a., or exceeds the 270
-eligibility threshold for risks that are not primary residences 271
-of policyholders of the corporation established in s. 272
-627.351(6)(c)5.b., the insured may elect to accept such 273
-coverage, or may elect to accept or continue coverage with the 274
-corporation. Section 627.351(6)(c)5.a.(I) and b.(I) does not 275
-apply to an offer of coverage from an authorized insurer 276
-obtained through the program. As used in this subsection, the 277
-term “primary residence” has the same meaning as in s. 278
-627.351(6)(c)2.a. 279
-(b) Notwithstanding s. 627.3517, an applicant for new 280
-commercial lines residential coverage from the corporation is 281
-not eligible for coverage from the corporation if the applicant 282
-is provided an offer of comparable coverage from an authorized 283
-insurer through the program at a premium that is at or below the 284
-eligibility threshold for applicants for new coverage 285
-established in s. 627.351(6)(c)5.c. Whenever an offer of 286
-comparable coverage for a commercial lines residential risk is 287
-received for a policyholder of the corporation at renewal from 288
-an authorized insurer through the program which is at or below 289
-the eligibility threshold in s. 627.351(6)(c)5.c., the risk is 290
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-not eligible for coverage with the corporation. In the event an 291
-offer of coverage for a new applicant is received from an 292
-authorized insurer through the program, and the premium offered 293
-exceeds the eligibility threshold established in s. 294
-627.351(6)(c)5.c., the applicant or insured may elect to accept 295
-such coverage or to accept or continue coverage with the 296
-corporation. In the event an offer of coverage for a commercial 297
-lines residential risk is received from an authorized insurer at 298
-renewal through the program, and the premium offered exceeds the 299
-eligibility threshold for policyholders of the corporation 300
-established in s. 627.351(6)(c)5.c., the insured may elect to 301
-accept such coverage or to accept or continue coverage with the 302
-corporation. Section 627.351(6)(c)5.c.(I) does not apply to an 303
-offer of coverage from an authorized insurer obtained through 304
-the program. 305
-(c)1. Except as provided in subparagraph 2., any applicant 306
-for new coverage from the corporation and any policyholder of 307
-the corporation that is offered commercial lines residential or 308
-commercial lines residential coverage pursuant to the program by 309
-an approved surplus lines clearinghouse insurer remains eligible 310
-for coverage from the corporation. The applicant or insured 311
-receiving an offer from an approved surplus lines clearinghouse 312
-insurer may elect to accept such coverage or may elect to accept 313
-or continue coverage with the corporation. 314
-2. Any applicant for new coverage from the corporation and 315
-any policyholder of the corporation that is offered commercial 316
-lines residential or commercial lines nonresidential coverage by 317
-an approved surplus lines insurer pursuant to the program, if 318
-such coverage is equivalent to or greater than coverage from the 319
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-corporation as to all aspects of such coverage and is for a 320
-premium that is not more than 20 percent greater than the 321
-premium for corporation coverage that will be paid by an 322
-applicant for corporation coverage or will be paid at renewal by 323
-a policyholder of the corporation, may elect to accept such 324
-coverage from the approved surplus lines clearinghouse insurer 325
-or may elect to accept or continue coverage with the 326
-corporation, but, if electing corporation coverage, such 327
-applicant or policyholder must pay a premium for corporation 328
-coverage that is the greater of the premium for such coverage 329
-from the corporation or from the approved surplus lines 330
-clearinghouse insurer. 331
-3. Section 627.351(6)(c)5.c.(I) does not apply to an offer 332
-of coverage from an approved surplus lines clearinghouse insurer 333
-obtained through the program. 334
-(6) Independent insurance agents submitting new 335
-applications for coverage or that are the agent of record on a 336
-renewal policy submitted to the program: 337
-(a) Are granted and must maintain ownership and the 338
-exclusive use of expirations, records, or other written or 339
-electronic information directly related to such applications or 340
-renewals written through the corporation or through an insurer 341
-participating in the program, notwithstanding s. 627.351(5)(a), 342
-s. 627.351(6)(c)5.a.(I)(B) and (II)(B), or s. 343
-627.351(6)(c)5.b.(I)(B) and (II)(B). Such ownership is granted 344
-for as long as the insured remains with the agency or until sold 345
-or surrendered in writing by the agent. Contracts with the 346
-corporation, or required by the corporation, or with any insurer 347
-or surplus lines agent must not amend, modify, interfere with, 348
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-or limit such rights of ownership. Such expirations, records, or 349
-other written or electronic information may be used to review an 350
-application, issue a policy, or for any other purpose necessary 351
-for placing such business through the program. 352
-(b) May not be required to be appointed by any insurer 353
-participating in the program for policies written solely through 354
-the program, notwithstanding the provisions of s. 626.112. 355
-(c) May accept an appointment from any insurer 356
-participating in the program. 357
-(d) May enter into either a standard or limited agency 358
-agreement with the insurer, at the insurer’s option, and may 359
-enter into agreements with a surplus lines agent. 360
- 361
-Applicants ineligible for coverage in accordance with subsection 362
-(5) remain ineligible if their independent agent is unwilling or 363
-unable to enter into a standard or limited agency agreement with 364
-an insurer participating in the program. 365
-(7) Exclusive agents submitting new applications for 366
-coverage or that are the agent of record on a renewal policy 367
-submitted to the program: 368
-(a) Must maintain ownership and the exclusive use of 369
-expirations, records, or other written or electronic information 370
-directly related to such applications or renewals written 371
-through the corporation or through an insurer participating in 372
-the program, notwithstanding s. 627.351(6)(c)5.a.(I)(B) and 373
-(II)(B) or s. 627.351(6)(c)5.b.(I)(B) and (II)(B). Contracts 374
-with the corporation or required by the corporation must not 375
-amend, modify, interfere with, or limit such rights of 376
-ownership. Such expirations, records, or other written or 377
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-electronic information may be used to review an application, 378
-issue a policy, or for any other purpose necessary for placing 379
-such business through the program. 380
-(b) May not be required to be appointed by any insurer 381
-participating in the program for policies written solely through 382
-the program, notwithstanding the provisions of s. 626.112. 383
-(c) Must only facilitate the placement of an offer of 384
-coverage from an insurer whose limited servicing agreement is 385
-approved by that exclusive agent’s exclusive insurer. 386
-(d) May enter into a limited servicing agreement with the 387
-insurer making an offer of coverage, and only after the 388
-exclusive agent’s insurer has approved the limited servicing 389
-agreement terms. The exclusive agent’s insurer must approve a 390
-limited service agreement for the program for any insurer for 391
-which it has approved a service agreement for other purposes. 392
- 393
-Applicants ineligible for coverage in accordance with subsection 394
-(5) remain ineligible if their exclusive agent is unwilling or 395
-unable to enter into a standard or limited agency agreement with 396
-an insurer making an offer of coverage to that applicant. 397
-(8) Submission of an application for coverage by the 398
-corporation to the program does not constitute the binding of 399
-coverage by the corporation, and failure of the program to 400
-obtain an offer of coverage by an insurer may not be considered 401
-acceptance of coverage of the risk by the corporation. 402
-(9) The 45-day notice of nonrenewal requirement set forth 403
-in s. 627.4133(2)(b)5. applies when a policy is nonrenewed by 404
-the corporation because the risk has received an offer of 405
-coverage pursuant to this section which renders the risk 406
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-ineligible for coverage by the corporation. 407
-(10) The program may not include commercial nonresidential 408
-policies. 409
-(11) Proprietary business information provided to the 410
-corporation’s clearinghouse by insurers with respect to 411
-identifying and selecting risks for an offer of coverage is 412
-confidential and exempt from s. 119.07(1) and s. 24(a), Art. I 413
-of the State Constitution. 414
-(a) As used in this subsection, the term “proprietary 415
-business information” means information, regardless of form or 416
-characteristics, which is owned or controlled by an insurer and: 417
-1. Is identified by the insurer as proprietary business 418
-information and is intended to be and is treated by the insurer 419
-as private in that the disclosure of the information would cause 420
-harm to the insurer, an individual, or the company’s business 421
-operations and has not been disclosed unless disclosed pursuant 422
-to a statutory requirement, an order of a court or 423
-administrative body, or a private agreement that provides that 424
-the information will not be released to the public; 425
-2. Is not otherwise readily ascertainable or publicly 426
-available by proper means by other persons from another source 427
-in the same configuration as provided to the clearinghouse; and 428
-3. Includes: 429
-a. Trade secrets, as defined in s. 688.002. 430
-b. Information relating to competitive interests, the 431
-disclosure of which would impair the competitive business of the 432
-provider of the information. 433
- 434
-Proprietary business information may be found in underwriting 435
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-criteria or instructions which are used to identify and select 436
-risks through the program for an offer of coverage and are 437
-shared with the clearinghouse to facilitate the shopping of 438
-risks with the insurer. 439
-(b) The clearinghouse may disclose confidential and exempt 440
-proprietary business information: 441
-1. If the insurer to which it pertains gives prior written 442
-consent; 443
-2. Pursuant to a court order; or 444
-3. To another state agency in this or another state or to a 445
-federal agency if the recipient agrees in writing to maintain 446
-the confidential and exempt status of the document, material, or 447
-other information and has verified in writing its legal 448
-authority to maintain such confidentiality. 449
-Section 3. This act shall take effect upon becoming a law. 450
+ 1 Senate Amendment to Amendment (241162) (with title
+ 2 amendment)
+ 3
+ 4 Delete line 435
+ 5 and insert:
+ 6 (b) Any applicant for new or renewal commercial lines
+ 7 nonresidential coverage from the corporation is not eligible for
+ 8 coverage from the corporation if provided an offer of comparable
+ 9 coverage from an authorized insurer through the program. Any
+ 10 applicant for new commercial lines residential
+ 11
+ 12 ================= T I T L E A M E N D M E N T ================
+ 13 And the title is amended as follows:
+ 14 Between lines 709 and 710
+ 15 insert:
+ 16 new or renewal commercial lines nonresidential
+ 17 coverage from the corporation are not eligible for
+ 18 coverage from the corporation under certain
+ 19 circumstances; specifying that applicants for

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