Bill Text: FL S0774 | 2014 | Regular Session | Introduced

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Bill Title: Windstorm Insurance Coverage

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-05-02 - Died in Banking and Insurance [S0774 Detail]

Download: Florida-2014-S0774-Introduced.html

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       Florida Senate - 2014                                     SB 774
       
       
        
       By Senator Bullard
       
       
       
       
       
       39-00783-14                                            2014774__
    1                        A bill to be entitled                      
    2         An act relating to windstorm insurance coverage;
    3         amending s. 627.712, F.S.; deleting the requirement
    4         that a mortgageholder or lienholder must approve a
    5         policyholder’s decision to exclude windstorm coverage
    6         from a property insurance policy; providing an
    7         effective date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Section 627.712, Florida Statutes, is amended to
   12  read:
   13         627.712 Residential windstorm coverage required;
   14  availability of exclusions for windstorm or contents.—
   15         (1) An insurer issuing a residential property insurance
   16  policy must provide windstorm coverage. Except as provided in
   17  paragraph (2)(b) (2)(c), this section does not apply to risks
   18  that are eligible for wind-only coverage from Citizens Property
   19  Insurance Corporation under s. 627.351(6), and risks that are
   20  not eligible for coverage from Citizens Property Insurance
   21  Corporation under s. 627.351(6)(a)3. or 5. A risk ineligible for
   22  coverage by the corporation under s. 627.351(6)(a)3. or 5. is
   23  exempt from this section only if the risk is located within the
   24  boundaries of the coastal account of the corporation.
   25         (2) A property insurer must make available, at the option
   26  of the policyholder, an exclusion for of windstorm coverage.
   27         (a) The coverage may be excluded only if:
   28         1. When The policyholder is a natural person, the
   29  policyholder personally writes and provides to the insurer the
   30  following statement in his or her own handwriting and signs his
   31  or her name, which must also be signed by every other named
   32  insured on the policy, and dated: “I do not want the insurance
   33  on my (home/mobile home/condominium unit) to pay for damage from
   34  windstorms. I will pay those costs. My insurance will not.”
   35         2. When The policyholder is other than a natural person,
   36  the policyholder provides to the insurer on the policyholder’s
   37  letterhead the following statement that must be signed by the
   38  policyholder’s authorized representative and dated: “...(Name of
   39  entity)... does not want the insurance on its ...(type of
   40  structure)... to pay for damage from windstorms. ...(Name of
   41  entity)... will be responsible for these costs. ...(Name of
   42  entity’s)... insurance will not.”
   43         (b) If the structure insured by the policy is subject to a
   44  mortgage or lien, the policyholder must provide the insurer with
   45  a written statement from the mortgageholder or lienholder
   46  indicating that the mortgageholder or lienholder approves the
   47  policyholder electing to exclude windstorm coverage or hurricane
   48  coverage from his or her or its property insurance policy.
   49         (b)(c) An insurer nonrenewing a policy and issuing a
   50  replacement policy, or issuing a new policy, that does not
   51  provide wind coverage shall provide a notice to the
   52  mortgageholder or lienholder indicating the policyholder has
   53  elected coverage that does not cover wind.
   54         (3) An insurer issuing a residential property insurance
   55  policy, except for a condominium unit owner’s policy or a
   56  tenant’s policy, must make available, at the option of the
   57  policyholder, an exclusion of coverage for the contents. The
   58  coverage may be excluded only if the policyholder personally
   59  writes and provides to the insurer the following statement in
   60  his or her own handwriting and signs his or her signature, which
   61  must also be signed by every other named insured on the policy,
   62  and dated: “I do not want the insurance on my (home/mobile home)
   63  to pay for the costs to repair or replace any contents that are
   64  damaged. I will pay those costs. My insurance will not.”
   65         (4) An insurer shall keep the original copy of a signed
   66  statement required by this section, electronically or otherwise,
   67  and provide a copy to the policyholder providing the signed
   68  statement. A signed statement meeting the requirements of this
   69  section creates a presumption that there was an informed,
   70  knowing rejection of coverage.
   71         (5) The exclusions authorized by this section apply for the
   72  term of the policy and for each renewal thereafter. Changes to
   73  the exclusions authorized by this section may be implemented
   74  only as of the date of renewal.
   75         (6) The commission shall adopt rules providing appropriate
   76  alternative methods for providing the statements required by
   77  this section for policyholders who have a handicapping or
   78  disabling condition that prevents them from providing a
   79  handwritten statement.
   80         Section 2. This act shall take effect July 1, 2014.