Bill Text: FL H7023 | 2010 | Regular Session | Comm Sub

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Bill Title: Repeal of Obsolete Insurance Provisions

Spectrum: Partisan Bill (Republican 11-0)

Status: (Failed) 2010-04-30 - Died in Messages [H7023 Detail]

Download: Florida-2010-H7023-Comm_Sub.html

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CS/HB 7023

1	A bill to be entitled
2	An act relating to the repeal of obsolete insurance
3	provisions; amending s. 215.5595, F.S.; deleting an
4	obsolete requirement for the State Board of Administration
5	to transfer to the Citizens Property Insurance Corporation
6	certain funds of the Insurance Capital Build-Up Incentive
7	Program; amending s. 627.311, F.S.; deleting an obsolete
8	presuit notice requirement for the Florida Automobile
9	Joint Underwriting Association; amending s. 627.351, F.S.;
10	deleting an obsolete Citizens Property Insurance
11	Corporation reporting requirement; amending s. 627.706,
12	F.S.; deleting an obsolete form filing deadline for
13	sinkhole coverage; amending s. 627.7065, F.S.; deleting an
14	obsolete reporting requirement for activities relating to
15	the sinkhole database; repealing s. 627.7077, F.S.,
16	relating to a feasibility and cost-benefit study of a
17	Florida Sinkhole Insurance Facility and other matters
18	related to affordability and availability of sinkhole
19	insurance; amending s. 627.712, F.S.; deleting an obsolete
20	effective date for the exclusion of windstorm and contents
21	coverage; providing an effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1. Subsection (11) of section 215.5595, Florida
26	Statutes, is amended to read:
27	215.5595 Insurance Capital Build-Up Incentive Program.-
28	(11) On January 15, 2009, the State Board of
29	Administration shall transfer to Citizens Property Insurance
30	Corporation any funds that have not been committed or reserved
31	for insurers approved to receive such funds under the program,
32	from the funds that were transferred from Citizens Property
33	Insurance Corporation in 2008-2009 for such purposes.
34	Section 2. Paragraph (k) of subsection (3) of section
35	627.311, Florida Statutes, is amended to read:
36	627.311 Joint underwriters and joint reinsurers; public
37	records and public meetings exemptions.-
38	(3) The office may, after consultation with insurers
39	licensed to write automobile insurance in this state, approve a
40	joint underwriting plan for purposes of equitable apportionment
41	or sharing among insurers of automobile liability insurance and
42	other motor vehicle insurance, as an alternate to the plan
43	required in s. 627.351(1). All insurers authorized to write
44	automobile insurance in this state shall subscribe to the plan
45	and participate therein. The plan shall be subject to continuous
46	review by the office which may at any time disapprove the entire
47	plan or any part thereof if it determines that conditions have
48	changed since prior approval and that in view of the purposes of
49	the plan changes are warranted. Any disapproval by the office
50	shall be subject to the provisions of chapter 120. The Florida
51	Automobile Joint Underwriting Association is created under the
52	plan. The plan and the association:
53	(k)1. Shall have no liability, and no cause of action of
54	any nature shall arise against any member insurer or its agents
55	or employees, agents or employees of the association, members of
56	the board of governors of the association, the Chief Financial
57	Officer, or the office or its representatives for any action
58	taken by them in the performance of their duties or
59	responsibilities under this subsection. Such immunity does not
60	apply to actions for or arising out of breach of any contract or
61	agreement pertaining to insurance, or any willful tort.
62	2. Notwithstanding the requirements of s. 624.155(3)(a),
63	as a condition precedent to bringing an action against the plan
64	under s. 624.155, the department and the plan must have been
65	given 90 days' written notice of the violation. If the
66	department returns a notice for lack of specificity, the 90-day
67	time period shall not begin until a proper notice is filed. This
68	notice must comply with the information requirements of s.
69	624.155(3)(b). Effective October 1, 2007, this subparagraph
70	shall expire unless reenacted by the Legislature prior to that
71	date.
72	Section 3. Paragraphs (dd), (ee), and (ff) of subsection
73	(6) of section 627.351, Florida Statutes, are redesignated as
74	paragraphs (cc), (dd), and (ee), respectively, and present
75	paragraph (cc) of that subsection is amended to read:
76	627.351 Insurance risk apportionment plans.-
77	(6) CITIZENS PROPERTY INSURANCE CORPORATION.-
78	(cc) By February 1, 2007, the corporation shall submit a
79	report to the President of the Senate, the Speaker of the House
80	of Representatives, the minority party leaders of the Senate and
81	the House of Representatives, and the chairs of the standing
82	committees of the Senate and the House of Representatives having
83	jurisdiction over matters relating to property and casualty
84	insurance. In preparing the report, the corporation shall
85	consult with the Office of Insurance Regulation, the Department
86	of Financial Services, and any other party the corporation
87	determines appropriate. The report must include all findings and
88	recommendations on the feasibility of requiring authorized
89	insurers that issue and service personal and commercial
90	residential policies and commercial nonresidential policies that
91	provide coverage for basic property perils except for the peril
92	of wind to issue and service for a fee personal and commercial
93	residential policies and commercial nonresidential policies
94	providing coverage for the peril of wind issued by the
95	corporation. The report must include:
96	1. The expense savings to the corporation of issuing and
97	servicing such policies as determined by a cost-benefit
98	analysis.
99	2. The expenses and liability to authorized insurers
100	associated with issuing and servicing such policies.
101	3. The effect on service to policyholders of the
102	corporation relating to issuing and servicing such policies.
103	4. The effect on the producing agent of the corporation of
104	issuing and servicing such policies.
105	5. Recommendations as to the amount of the fee which
106	should be paid to authorized insurers for issuing and servicing
107	such policies.
108	6. The effect that issuing and servicing such policies
109	will have on the corporation's number of policies, total insured
110	value, and probable maximum loss.
111	Section 4. Subsections (4) and (5) of section 627.706,
112	Florida Statutes, are renumbered as subsections (3) and (4),
113	respectively, and present subsection (3) of that section is
114	amended to read:
115	627.706 Sinkhole insurance; catastrophic ground cover
116	collapse; definitions.-
117	(3) On or before June 1, 2007, every insurer authorized to
118	transact property insurance in this state shall make a proper
119	filing with the office for the purpose of extending the
120	appropriate forms of property insurance to include coverage for
121	catastrophic ground cover collapse or for sinkhole losses.
122	Coverage for catastrophic ground cover collapse may not go into
123	effect until the effective date provided for in the filing
124	approved by the office.
125	Section 5. Subsection (6) of section 627.7065, Florida
126	Statutes, is renumbered as subsection (5), and present
127	subsection (5) of that section is amended to read:
128	627.7065 Database of information relating to sinkholes;
129	the Department of Financial Services and the Department of
130	Environmental Protection.-
131	(5) The Department of Environmental Protection, in
132	consultation with the Department of Financial Services, shall
133	present a report of activities relating to the sinkhole
134	database, including recommendations regarding the database and
135	similar matters, to the Governor, the Speaker of the House of
136	Representatives, the President of the Senate, and the Chief
137	Financial Officer by December 31, 2005. The report may consider
138	the need for the Legislature to create an entity to study the
139	increase in sinkhole activity in the state and other similar
140	issues relating to sinkhole damage, including recommendations
141	and costs for staffing the entity. The report may include other
142	information, as appropriate.
143	Section 6. Section 627.7077, Florida Statutes, is
144	repealed.
145	Section 7. Subsection (7) of section 627.712, Florida
146	Statutes, is amended to read:
147	627.712 Residential windstorm coverage required;
148	availability of exclusions for windstorm or contents.-
149	(7) This section is effective July 1, 2007, but the office
150	may delay application of this section until a date no later than
151	October 1, 2007, upon approval by the Financial Services
152	Commission.
153	Section 8. This act shall take effect July 1, 2010.

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