Bill Text: FL S1058 | 2022 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Property Insurer Reimbursements

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2022-05-23 - Chapter No. 2022-132 [S1058 Detail]

Download: Florida-2022-S1058-Introduced.html

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       Florida Senate - 2022                                    SB 1058
       
       
        
       By Senator Hutson
       
       
       
       
       
       7-00836B-22                                           20221058__
    1                        A bill to be entitled                      
    2         An act relating to property insurer reimbursements;
    3         amending s. 215.555, F.S.; defining the term “unsound
    4         insurer”; revising requirements for coverage under the
    5         Florida Hurricane Catastrophe Fund of certain policies
    6         assumed by authorized insurers or the Citizens
    7         Property Insurance Corporation; providing
    8         construction; providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Paragraph (e) of subsection (5) of section
   13  215.555, Florida Statutes, is amended, and paragraph (p) is
   14  added to subsection (2) of that section, to read:
   15         215.555 Florida Hurricane Catastrophe Fund.—
   16         (2) DEFINITIONS.—As used in this section:
   17         (p) “Unsound insurer” means an insurer determined by the
   18  Office of Insurance Regulation to be in unsound condition as
   19  defined in s. 624.80(2) or an insurer placed in receivership
   20  under chapter 631.
   21         (5) REIMBURSEMENT PREMIUMS.—
   22         (e)1. If an authorized insurer or the Citizens Property
   23  Insurance Corporation assumes or otherwise provides coverage for
   24  policies of an unsound insurer an insurer placed in liquidation
   25  under chapter 631 pursuant to s. 627.351(6), the authorized
   26  insurer or the Citizens Property Insurance Corporation may,
   27  pursuant to conditions mutually agreed to between the authorized
   28  insurer or the Citizens Property Insurance Corporation and the
   29  State Board of Administration, seek to obtain coverage for such
   30  policies under its contract with the fund or accept an
   31  assignment of the unsound liquidated insurer’s contract with the
   32  fund. However, if a covered event has occurred before the
   33  effective date of the transfer of the policies, the authorized
   34  insurer or the Citizens Property Insurance Corporation may only
   35  obtain coverage for such policies through an assignment as
   36  provided in subparagraph 3.
   37         2. If an authorized insurer or the Citizens Property
   38  Insurance Corporation assumes policies from an unsound insurer
   39  and elects to cover these policies under its the corporation’s
   40  contract with the fund, it shall notify the board of its insured
   41  values with respect to such policies within a specified time
   42  mutually agreed to between the authorized insurer or the
   43  Citizens Property Insurance Corporation and the board, after
   44  such assumption or other coverage transaction, and the fund
   45  shall treat such policies as having been in effect as of June 30
   46  of that year.
   47         3. If an authorized insurer or the Citizens Property
   48  Insurance Corporation accepts In the event of an assignment of
   49  an unsound insurer’s contract, the fund shall apply the unsound
   50  insurer’s that contract to such policies and treat the
   51  authorized insurer or the Citizens Property Insurance
   52  Corporation as if it the corporation were the unsound liquidated
   53  insurer for the remaining term of the contract, with and the
   54  corporation shall have all rights and duties of the unsound
   55  liquidated insurer beginning on the date it provides coverage
   56  for such policies. This subparagraph may not be construed to
   57  limit the fund’s right to receive the premium due under the
   58  unsound insurer’s contract, but the corporation is not subject
   59  to any preexisting rights, liabilities, or duties of the
   60  liquidated insurer. The assignment, including any unresolved
   61  issues between the liquidated insurer and Citizens Property
   62  Insurance Corporation under the contract, shall be provided for
   63  in the liquidation order or otherwise determined by the court.
   64  However, if a covered event occurs before the effective date of
   65  the assignment, the corporation may not obtain coverage for such
   66  policies under its contract with the fund and shall accept an
   67  assignment of the liquidated insurer’s contract as provided in
   68  this paragraph.
   69         Section 2. This act shall take effect July 1, 2022.