On March 4, 2026, the Florida Senate approved Senate Bill 1028 (SB 1028), introduced by Senator Joe Gruters, which would establish both an admitted and a surplus lines clearinghouse for Citizens Property Insurance commercial policies. SB 1028, and its companion House Bill 943, were introduced on December 30, 2025, and have quickly made their way through both houses of the legislature. The Florida Legislature created Citizens Property Insurance Corporation (Citizens), a nonprofit windstorm and general property insurer of last resort, in 2002.[1]

SB 1028, if passed, would require every commercial residential and nonresidential risk insured by, or that has applied to be insured by, Citizens to be submitted to the newly established surplus lines clearinghouse, effective January 1, 2027. SB 1028 represents a mechanism in which “approved surplus lines clearinghouse insurers” can depopulate Citizens of current and future policyholders. An “approved surplus lines clearinghouse” is defined in SB 1028 as, “an eligible surplus lines insurer … which has a financial strength rating of “A-“ or higher and a financial size category of A-VII or higher from A.M. Best Company which the clearinghouse administrator recommends for participation in the program and which the office verifies meets the applicable program standards for participation within 30 business days after the commercial lines clearinghouse administrator’s recommendation.”

SB 1028 also provides for the creation of an administrator to run the new commercial clearinghouses. Under SB 1028, the administrator is empowered to create procedures for and oversee the process for offers of coverage to be provided by approved surplus lines insurers. The administrator may charge approved surplus lines clearinghouse insurers and surplus lines agents transaction, administrative, and technological fees.

Regarding the extension of coverage to a Citizens policyholder, or prospective policyholder, by an approved surplus lines clearinghouse insurer, SB 1028 provides that such extension of coverage has no effect on the policyholder or applicant’s eligibility to receive coverage from Citizens. However, in the case that such a policyholder or applicant rejects a surplus lines placement, SB 1028 does impose a premium equalization adjustment on that policy that would price the Citizens policy equal to the offer by the admitted surplus lines clearinghouse insurer for the next policy period. This adjustment only occurs in situations where the offer of coverages are substantially similar as to material terms and conditions, and the total cost of the coverage from the admitted surplus lines clearinghouse insurer is not more than 20% higher than Citizens’. If multiple admitted surplus lines clearinghouse insurers make offers of coverage, then the lowest priced is used for the adjustment.

By creating a surplus lines clearinghouse for commercial risks, the Florida Legislature believes surplus lines insurers are available and adequate to provide coverages that are currently being directed at their insurer of last resort. Additionally, by including a price adjustment mechanism that would make substantially similar surplus lines and Citizens’ coverages equally priced, the legislature desires to depopulate Citizens and find policyholders a private carrier for their insurance needs. Ultimately, if SB 1028’s companion bill passes in the House of Representatives, the result will be a move of commercial risks away from Citizens and into the surplus lines market.

[1] https://www.flsenate.gov/Session/Bill/2026/1028/Analyses/2026s01028.pre.bi.PDF