Bill Text: FL S1136 | 2015 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Title Insurance
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-04-23 - Laid on Table, companion bill(s) passed, see CS/HB 927 (Ch. 2015-154) [S1136 Detail]
Download: Florida-2015-S1136-Introduced.html
Bill Title: Title Insurance
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-04-23 - Laid on Table, companion bill(s) passed, see CS/HB 927 (Ch. 2015-154) [S1136 Detail]
Download: Florida-2015-S1136-Introduced.html
Florida Senate - 2015 SB 1136 By Senator Hukill 8-01041B-15 20151136__ 1 A bill to be entitled 2 An act relating to title insurance; amending s. 3 631.401, F.S.; revising procedures and requirements 4 relating to the recovery of assessments from title 5 insurers through surcharges assessed on policies; 6 revising provisions relating to surcharges collected 7 in excess of the assessments paid by title insurers; 8 revising requirements for the payment of excess 9 surcharges to the Insurance Regulatory Trust Fund; 10 authorizing the Office of Insurance Regulation to 11 adopt rules for certain purposes; providing an 12 effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Section 631.401, Florida Statutes, is amended to 17 read: 18 631.401 Recovery of assessments and assumed policy 19 obligations.— 20 (1) Upon the making of any assessment allowed by s. 21 631.400, the office shall order a surcharge or, if a surcharge 22 is currently in effect, an additional surcharge amount on each 23 title insurance policy thereafter issued insuring an interest in 24 real property in this state. The office shall set the per 25 transaction surcharge at an amount estimated to generate 26 sufficient funds to recover the amount assessed over a period of 27 not more than 7 years. The amount of the surcharge ordered under 28 this section may not exceed $25 per transaction for each 29 impaired title insurer.If additional surcharges are occasioned30by additional title insurers becoming impaired, the office shall31order an increase in the amount of the surcharge to reflect the32aggregate surcharge.33 (2) The party responsible for the payment of title 34 insurance premium, unless otherwise agreed between the parties, 35 shall be responsible for the payment of the surcharge. No 36 surcharge will be due or owing as to any policy of title 37 insurance subject toissued atthe simultaneous issue premium 38rate.For all other purposes,The surcharge will be considered a 39 governmental assessment to be separately stated on any 40 settlement statement as a surcharge. The surcharge is not 41 premium and is not subject to premium tax or reserve 42 requirements under chapter 625. 43 (3) Title insurers doing business in this state which are 44 not subject to a given assessmentwriting no premiums in the45prior calendar yearshall collect the same per transaction 46 surcharge as provided by this section. Such surcharge collected 47 shall be paid to the receiver within 60 days after receipt to be 48 maintained in an excess surcharge account and used only as 49 provided in subsection (6)from the title agent or agency. 50 (4) Each title insurance agent, agency, or direct title 51 operation shall collect the surcharge as to each title insurance 52 policy written and remit those surchargesalong with the53policies and premiumswithin 60 days to the title insurer on 54 whichwhomthe policy was written. 55 (5) A title insurer may not retain more in surchargesfor56an ordered assessmentthan the amount of aggregate assessments 57 paid by theassessment thattitle insurerpaid. Any surcharges 58 collected in excess of the amount of the aggregate assessments 59 paid by a title insurer shall be paid as provided in subsection 60 (6). As used in this section, the term “aggregate assessments” 61 means the total amount of assessments ordered by the office 62 under s. 631.400. 63 (6) Each title insurer collecting surcharges shall promptly 64 notify the office when it has collected surcharges equal to the 65 amount of the aggregate assessmentsassessmentpaid pursuant to 66 s. 631.400. The office shall notify all companies, including 67 those collecting surcharges as required by subsection (3), to 68 cease collecting surcharges when notified that all aggregate 69 assessments have been recovered. Any surcharges collected by a 70 title insurer in excess of the total amount it was assessed for 71 aggregate assessments shall be paid quarterly to the receiver to 72 be maintained in the excess surcharge account by the receiver. 73 Excess surcharges may be used by the receiver for the following 74 purposes only: 75 (a) To reduce or eliminate the amount of a future 76 assessment for a title insurer in receivership; 77 (b) To reduce the amount of time that consumers in the 78 state are subject to surcharges by transferring excess 79 surcharges to title insurers that have not fully collected 80 surcharges equal to the amount of the aggregate assessments they 81 paid pursuant to s. 631.400; or 82 (c) To reduce or eliminate the need for future assessments 83 for title insurers not yet in receivership. 84 (7) In conjunction with the filing of each quarterly 85 financial statement, each title insurer shall provide the office 86 with an accounting of assessments paid and surcharges collected 87 during the period. Any surcharges collected in excess of the 88 amount assessed which are not used under subsection (6) within 1 89 year after the termination of all title insurer receiverships 90 shall be paid to the Insurance Regulatory Trust Fund. The office 91 may adopt rules specifying procedures for the collection, use, 92 and transfer of surcharges, including excess surcharges. 93 Section 2. This act shall take effect July 1, 2015.