Bill Text: FL H4099 | 2011 | Regular Session | Comm Sub

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Bill Title: Repeal of Property & Casualty Insurance Provisions

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H4099 Detail]

Download: Florida-2011-H4099-Comm_Sub.html

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CS/HB 4099

1	A bill to be entitled
2	An act relating to the repeal of property and casualty
3	insurance provisions; amending s. 215.5595, F.S.; deleting
4	an obsolete requirement for the State Board of
5	Administration to transfer to the Citizens Property
6	Insurance Corporation certain funds of the Insurance
7	Capital Build-Up Incentive Program; amending s. 627.311,
8	F.S.; deleting an obsolete presuit notice requirement for
9	the Florida Automobile Joint Underwriting Association;
10	repealing s. 627.3519, F.S., relating to annual report of
11	aggregate net probable maximum losses, financing options,
12	and potential assessments; amending s. 627.706, F.S.;
13	deleting an obsolete form filing deadline for sinkhole
14	coverage; amending s. 627.7065, F.S.; deleting an obsolete
15	reporting requirement for activities relating to the
16	sinkhole database; repealing s. 627.7077, F.S., relating
17	to a feasibility and cost-benefit study of a Florida
18	Sinkhole Insurance Facility and other matters related to
19	affordability and availability of sinkhole insurance;
20	amending s. 627.712, F.S.; deleting an obsolete effective
21	date for the exclusion of windstorm and contents coverage;
22	providing an effective date.
23
24	Be It Enacted by the Legislature of the State of Florida:
25
26	Section 1.  Subsection (11) of section 215.5595, Florida
27	Statutes, is amended to read:
28	215.5595  Insurance Capital Build-Up Incentive Program.-
29	(11)  On January 15, 2009, the State Board of
30	Administration shall transfer to Citizens Property Insurance
31	Corporation any funds that have not been committed or reserved
32	for insurers approved to receive such funds under the program,
33	from the funds that were transferred from Citizens Property
34	Insurance Corporation in 2008-2009 for such purposes.
35	Section 2.  Paragraph (k) of subsection (3) of section
36	627.311, Florida Statutes, is amended to read:
37	627.311  Joint underwriters and joint reinsurers; public
38	records and public meetings exemptions.-
39	(3)  The office may, after consultation with insurers
40	licensed to write automobile insurance in this state, approve a
41	joint underwriting plan for purposes of equitable apportionment
42	or sharing among insurers of automobile liability insurance and
43	other motor vehicle insurance, as an alternate to the plan
44	required in s. 627.351(1). All insurers authorized to write
45	automobile insurance in this state shall subscribe to the plan
46	and participate therein. The plan shall be subject to continuous
47	review by the office which may at any time disapprove the entire
48	plan or any part thereof if it determines that conditions have
49	changed since prior approval and that in view of the purposes of
50	the plan changes are warranted. Any disapproval by the office
51	shall be subject to the provisions of chapter 120. The Florida
52	Automobile Joint Underwriting Association is created under the
53	plan. The plan and the association:
54	(k)1.  Shall have no liability, and no cause of action of
55	any nature shall arise against any member insurer or its agents
56	or employees, agents or employees of the association, members of
57	the board of governors of the association, the Chief Financial
58	Officer, or the office or its representatives for any action
59	taken by them in the performance of their duties or
60	responsibilities under this subsection. Such immunity does not
61	apply to actions for or arising out of breach of any contract or
62	agreement pertaining to insurance, or any willful tort.
63	2.  Notwithstanding the requirements of s. 624.155(3)(a),
64	as a condition precedent to bringing an action against the plan
65	under s. 624.155, the department and the plan must have been
66	given 90 days' written notice of the violation. If the
67	department returns a notice for lack of specificity, the 90-day
68	time period shall not begin until a proper notice is filed. This
69	notice must comply with the information requirements of s.
70	624.155(3)(b). Effective October 1, 2007, this subparagraph
71	shall expire unless reenacted by the Legislature prior to that
72	date.
73	Section 3.  Section 627.3519, Florida Statutes, is
74	repealed.
75	Section 4.  Subsections (3), (4), and (5) of section
76	627.706, Florida Statutes, are amended to read:
77	627.706  Sinkhole insurance; catastrophic ground cover
78	collapse; definitions.-
79	(3)  On or before June 1, 2007, every insurer authorized to
80	transact property insurance in this state shall make a proper
81	filing with the office for the purpose of extending the
82	appropriate forms of property insurance to include coverage for
83	catastrophic ground cover collapse or for sinkhole losses.
84	Coverage for catastrophic ground cover collapse may not go into
85	effect until the effective date provided for in the filing
86	approved by the office.
87	(3)(4)  Insurers offering policies that exclude coverage
88	for sinkhole losses shall inform policyholders in bold type of
89	not less than 14 points as follows: "YOUR POLICY PROVIDES
90	COVERAGE FOR A CATASTROPHIC GROUND COVER COLLAPSE THAT RESULTS
91	IN THE PROPERTY BEING CONDEMNED AND UNINHABITABLE. OTHERWISE,
92	YOUR POLICY DOES NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU
93	MAY PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN
94	ADDITIONAL PREMIUM."
95	(4)(5)  An insurer offering sinkhole coverage to
96	policyholders before or after the adoption of s. 30, chapter
97	2007-1, Laws of Florida, may nonrenew the policies of
98	policyholders maintaining sinkhole coverage in Pasco County or
99	Hernando County, at the option of the insurer, and provide an
100	offer of coverage to such policyholders which includes
101	catastrophic ground cover collapse and excludes sinkhole
102	coverage. Insurers acting in accordance with this subsection are
103	subject to the following requirements:
104	(a)  Policyholders must be notified that a nonrenewal is
105	for purposes of removing sinkhole coverage, and that the
106	policyholder is still being offered a policy that provides
107	coverage for catastrophic ground cover collapse.
108	(b)  Policyholders must be provided an actuarially
109	reasonable premium credit or discount for the removal of
110	sinkhole coverage and provision of only catastrophic ground
111	cover collapse.
112	(c)  Subject to the provisions of this subsection and the
113	insurer's approved underwriting or insurability guidelines, the
114	insurer shall provide each policyholder with the opportunity to
115	purchase an endorsement to his or her policy providing sinkhole
116	coverage and may require an inspection of the property before
117	issuance of a sinkhole coverage endorsement.
118	(d)  Section 624.4305 does not apply to nonrenewal notices
119	issued pursuant to this subsection.
120	Section 5.  Subsections (5) and (6) of section 627.7065,
121	Florida Statutes, are amended to read:
122	627.7065  Database of information relating to sinkholes;
123	the Department of Financial Services and the Department of
124	Environmental Protection.-
125	(5)  The Department of Environmental Protection, in
126	consultation with the Department of Financial Services, shall
127	present a report of activities relating to the sinkhole
128	database, including recommendations regarding the database and
129	similar matters, to the Governor, the Speaker of the House of
130	Representatives, the President of the Senate, and the Chief
131	Financial Officer by December 31, 2005. The report may consider
132	the need for the Legislature to create an entity to study the
133	increase in sinkhole activity in the state and other similar
134	issues relating to sinkhole damage, including recommendations
135	and costs for staffing the entity. The report may include other
136	information, as appropriate.
137	(5)(6)  The Department of Financial Services, in
138	consultation with the Department of Environmental Protection,
139	may adopt rules to implement this section.
140	Section 6.  Section 627.7077, Florida Statutes, is
141	repealed.
142	Section 7.  Subsection (7) of section 627.712, Florida
143	Statutes, is amended to read:
144	627.712  Residential windstorm coverage required;
145	availability of exclusions for windstorm or contents.-
146	(7)  This section is effective July 1, 2007, but the office
147	may delay application of this section until a date no later than
148	October 1, 2007, upon approval by the Financial Services
149	Commission.
150	Section 8.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.