Bill Text: FL S0678 | 2015 | Regular Session | Engrossed
Bill Title: Property and Casualty Insurance
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2015-04-28 - Died on Calendar, companion bill(s) passed, see CS/CS/CS/SB 1094 (Ch. 2015-69) [S0678 Detail]
Download: Florida-2015-S0678-Engrossed.html
CS for SB 678 First Engrossed 2015678e1 1 A bill to be entitled 2 An act relating to property and casualty insurance; 3 amending s. 627.715, F.S.; authorizing flexible flood 4 insurance; specifying coverage requirements; deleting 5 a provision that prohibits supplemental flood 6 insurance from including excess coverage over any 7 other insurance covering the peril of flood; amending 8 s. 629.271, F.S.; authorizing domestic reciprocal 9 insurers to return a portion of unassigned funds to 10 their subscribers; providing limitations; providing an 11 effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Paragraph (a) of subsection (1) of section 16 627.715, Florida Statutes, is amended to read: 17 627.715 Flood insurance.—An authorized insurer may issue an 18 insurance policy, contract, or endorsement providing personal 19 lines residential coverage for the peril of flood on any 20 structure or the contents of personal property contained 21 therein, subject to this section. This section does not apply to 22 commercial lines residential or commercial lines nonresidential 23 coverage for the peril of flood. This section also does not 24 apply to coverage for the peril of flood that is excess coverage 25 over any other insurance covering the peril of flood. An insurer 26 may issue flood insurance policies, contracts, or endorsements 27 on a standard, preferred, customized, flexible, or supplemental 28 basis. 29 (1)(a)1. Standard flood insurance must cover only losses 30 from the peril of flood, as defined in paragraph (b), equivalent 31 to that provided under a standard flood insurance policy under 32 the National Flood Insurance Program. Standard flood insurance 33 issued under this section must provide the same coverage, 34 including deductibles and adjustment of losses, as that provided 35 under a standard flood insurance policy under the National Flood 36 Insurance Program. 37 2. Preferred flood insurance must include the same coverage 38 as standard flood insurance but: 39 a. Include, within the definition of “flood,” losses from 40 water intrusion originating from outside the structure that are 41 not otherwise covered under the definition of “flood” provided 42 in paragraph (b). 43 b. Include coverage for additional living expenses. 44 c. Require that any loss under personal property or 45 contents coverage that is repaired or replaced be adjusted only 46 on the basis of replacement costs up to the policy limits. 47 3. Customized flood insurance must include coverage that is 48 broader than the coverage provided under standard flood 49 insurance. 50 4. Flexible flood insurance must cover losses from the 51 peril of flood, as defined in paragraph (b), and may also 52 include coverage for losses from water intrusion originating 53 from outside the structure which is not otherwise covered by the 54 definition of flood. Flexible flood insurance must include one 55 or more of the following provisions: 56 a. An agreement between the insurer and the insured that 57 the flood coverage is in a specified amount, such as coverage 58 that is limited to the total amount of each outstanding mortgage 59 applicable to the covered property. 60 b. A requirement for a deductible in an amount authorized 61 under s. 627.701, including a deductible in an amount authorized 62 for hurricanes. 63 c. A requirement that flood loss to a dwelling be adjusted 64 in accordance with s. 627.7011(3) or adjusted only on the basis 65 of the actual cash value of the property. 66 d. A restriction limiting flood coverage to the principal 67 building defined in the policy. 68 e. A provision including or excluding coverage for 69 additional living expenses. 70 f. A provision excluding coverage for personal property or 71 contents as to the peril of flood. 72 5.4.Supplemental flood insurance may provide coverage 73 designed to supplement a flood policy obtained from the National 74 Flood Insurance Program or from an insurer issuing standard or 75 preferred flood insurance pursuant to this section. Supplemental 76 flood insurance may provide, but need not be limited to, 77 coverage for jewelry, art, deductibles, and additional living 78 expenses.Supplemental flood insurance does not include coverage79for the peril of flood that is excess coverage over any other80insurance covering the peril of flood.81 Section 2. Section 629.271, Florida Statutes, is amended to 82 read: 83 629.271 Distribution of savings.— 84 (1) A reciprocal insurer mayfrom time to timereturn to 85 its subscribers any unused premiums, savings, or credits 86 accruing to their accounts.AnySuch distribution mayshallnot 87 unfairly discriminate between classes of risks,or policies, or 88 between subscribers, butsuch distributionmay vary as to 89 classes of subscribers based onuponthe experience of thesuch90 classes. 91 (2) In addition to the option provided in subsection (1), a 92 domestic reciprocal insurer may, upon the prior written approval 93 of the office, pay to its subscribers a portion of unassigned 94 funds of up to 10 percent of surplus with such distribution 95 limited to 50 percent of net income from the previous calendar 96 year. Such distribution may not unfairly discriminate between 97 classes of risks or policies, or between subscribers, but may 98 vary as to classes of subscribers based on the experience of 99 such classes. 100 Section 3. This act shall take effect July 1, 2015.