Citizens Property Insurance Corporation

Establishes a mandatory requirement for the corporation to implement a separate commercial lines clearinghouse for surplus lines insurance by January 1, 2027, to facilitate offers from approved surplus lines insurers.

Requires the corporation to share risk exposure and policy information with the clearinghouse administrator, with strict rules requiring such data to be aggregated and deidentified to protect privacy.

Prohibits the corporation from applying discretionary rate adjustments to specific risks submitted to the surplus lines clearinghouse.

Sets a specific eligibility threshold where applicants become ineligible for corporation coverage if a private insurer offers comparable coverage within 15% of the corporation's total cost of insurance.

Updates eligibility rules to apply to both new and renewal commercial nonresidential coverage, whereas previous versions focused primarily on residential risks.

Defines 'total cost of insurance coverage for the specific risk' to include premiums, fees, taxes, assessments, and surcharges to ensure accurate price comparisons.

Mandates that the Office of Insurance Regulation review and approve the program through a final order within 3 months of the effective date and annually thereafter.

Sets a deadline of January 1, 2027, for the corporation to amend its plan of operation and implement the commercial lines clearinghouse for surplus lines insurance.

Set a mandatory deadline of January 1, 2027, for the corporation to implement a commercial lines clearinghouse and amend its plan of operation.

Authorized the corporation to share risk exposure and policy information with the commercial lines clearinghouse administrator to facilitate the orderly assessment of risks.

Mandated that the corporation determine if an offer from an authorized insurer is below the eligibility threshold before submitting its own coverage terms to the clearinghouse.

Required insurers to pay commissions to producing agents that are at least equal to the commission the corporation pays or the usual market rate, whichever is greater.

Established a requirement that the corporation and the clearinghouse administrator implement specific procedures to prevent rebates and ensure compliance with insurance law.

Granted the Office of Insurance Regulation the authority to review operational processes related to the program and submit recommendations to the Financial Services Commission if solvency risks are identified.

Clarified that the corporation cannot impose an equalization adjustment if a surplus lines insurer offers coverage at a lower total cost, and stated that such adjustments expire at the end of the policy term.

Added specific definitions for 'equalization adjustment' and clarified that it is a temporary policy-term-only adjustment that does not constitute a filed rate.

Added a requirement for the corporation to impose a 'premium equalization adjustment' on policies if an approved surplus lines insurer offers coverage within 20% of the corporation's total cost of insurance.

Added a prohibition on the commercial lines clearinghouse including commercial nonresidential policies, creating a distinction between the two types of commercial risks.

Clarified that applicants for new commercial lines residential coverage remain eligible for the corporation unless they receive an offer from an authorized insurer at a lower premium threshold.

Added new definitions for 'Exclusive agent' and 'Independent agent' to clarify agency relationships within the clearinghouse program.

Added a new definition for 'Program' to explicitly include both the personal lines and commercial lines clearinghouses.

Extended the deadline for implementing the commercial lines clearinghouse to January 1, 2027, and added a requirement to select a clearinghouse administrator within 90 days of the act's effective date.