Fla. Stat. §627.3511 — what it says, and how the exam tests it

627.3511 Depopulation of Citizens Property Insurance Corporation. — (1) LEGISLATIVE INTENT. — The Legislature finds that the public policy of this state requires the maintenance of a residual market for residential property insurance. It is the intent of the Legislature to provide a variety of financial incentives to encourage the replacement of the highest possible number of Citizens Property Insurance Corporation policies with policies written by admitted insurers at approved rates. (2) TAKE-OUT BONUS. — The Citizens Property Insurance Corporation shall pay the sum of up to $100 to an insurer for each risk that the insurer removes from the corporation, either by issuance of a policy upon expiration or cancellation of the corporation policy or by assumption of the corporation’s obligations with respect to an in-force policy. Such payment is subject to approval of the corporation board. In order to qualify for the bonus under this subsection, the take-out plan must include a minimum of 25,000 policies. Within 30 days after approval by the board, the office may reject the insurer’s take-out plan and disqualify the insurer from the bonus, based on the following criteria: (a) The capacity of the insurer to absorb the policies proposed to be taken out of the corporation and the concentration of risks of those policies. (b) Whether the geographic and risk characteristics of policies in the proposed take-out plan serve to reduce the exposure of the corporation sufficiently to justify the bonus. (c) Whether coverage for risks to be taken out otherwise exists in the admitted voluntary market. (d) The degree to which the take-out bonus is promoting new capital being allocated by the insurer to Florida residential property coverage.