Florida Senate - 2013 SENATOR AMENDMENT
Bill No. CS for CS for SB 810
Barcode 804560
LEGISLATIVE ACTION
Senate . House
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Floor: WD/3R .
04/11/2013 02:52 PM .
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Senator Simpson moved the following:
1 Senate Amendment (with title amendment)
2
3 Before line 11
4 insert:
5 Section 1. Paragraph (ee) of subsection (6) of section
6 627.351, Florida Statutes, is amended to read:
7 627.351 Insurance risk apportionment plans.—
8 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
9 (ee)1. The corporation may not decline a request for
10 coverage of residential sinkhole loss based upon: conditions
11 existing at or on the property which do not constitute sinkhole
12 related activity; or the proximity of the property to the
13 location of another property on which conditions exist which do
14 not constitute sinkhole-related activity.
15 a. For the purposes of this subparagraph, the term
16 “sinkhole-related activity” means settlement or systematic
17 weakening of the earth if the settlement or systematic weakening
18 results from contemporaneous movement or raveling of soils,
19 sediments, or rock materials into subterranean voids created by
20 the effect of water on a limestone or similar rock formation.
21 b. On or before December 31 of each calendar year, the
22 corporation shall submit an annual report to the Office of
23 Insurance Regulation and the Insurance Consumer Advocate
24 disclosing:
25 (I) The total number of requests received for residential
26 sinkhole loss coverage;
27 (II) The total number of policies issued for residential
28 sinkhole loss coverage;
29 (III) The total number of requests declined for residential
30 sinkhole loss coverage; and
31 (IV) The reasons for each decline of residential sinkhole
32 loss coverage.
33 2. A policy for residential property insurance issued by
34 the corporation must include a deductible applicable to sinkhole
35 losses equal to 1 percent, 2 percent, 5 percent, or 10 percent
36 of the policy dwelling limits, with an appropriate premium
37 discount amount offered with each deductible amount.
38 3. The Legislature finds that it is in the public interest
39 that indemnity funds paid pursuant to sinkhole loss claims are
40 applied to repairing property damage in order to ensure that
41 sinkhole indemnity funds paid for sinkhole damage are applied to
42 above-ground and subsurface repairs. Therefore, a Citizens
43 Sinkhole Repair Program shall be established by the corporation,
44 subject to approval by the Office of Insurance Regulation and
45 the Financial Services Commission. Any claim against a
46 corporation policy that covers residential sinkhole loss for
47 which it is determined that such loss has occurred must be
48 included in the repair program.
49 a. The repair program may be managed by a third-party
50 administrator and, at a minimum, must include the following
51 components:
52 (I) The corporation may not require the policyholder to
53 advance payment for repairs.
54 (II) All applicable provisions contained in the
55 corporation’s plan of operation apply, including, but not
56 limited to, the consumer’s right to courteous, prompt, and
57 professional customer service and the right to fair, prompt, and
58 professional services.
59 (III) Repairs shall be conducted by repair contractors who
60 are qualified based upon guidelines adopted by the Financial
61 Services Commission by rule.
62 (A) The repair program shall select qualified repair
63 contractors to perform repairs to damaged property pursuant to a
64 fixed-price contract between the contractor and the
65 policyholder. Under the terms of the contract, the selected
66 repair contractor is solely responsible for the performance of
67 all necessary repairs.
68 (B) Each qualified contractor shall post a performance
69 bond, secured by a third-party surety, in favor of the
70 corporation as obligee, in a principle amount equal to the total
71 cost of all fixed-price contracts annually awarded to that
72 repair contractor.
73 (C) Each repair contractor shall also provide a warranty to
74 the policyholder which covers all repairs provided by the
75 contractor for at least 5 years after completion of the repairs.
76 b. The corporation is not responsible for serving as a
77 repair contractor. The corporation’s obligations pursuant to the
78 repair program are not an election to repair by the corporation
79 and therefore do not imply a new contractual relationship.
80 c. The corporation’s liability related to repair activity
81 for damaged property included in the repair program is no
82 greater than the limits of the policy covering that property.
83 d. For the purposes of the repair program, the presumed
84 correctness specified in s. 627.7073(1)(c) of the findings,
85 opinions, and recommendations by the professional engineer or
86 geologist as to land and building stabilization and foundation
87 repair is recognized by the Legislature as necessary to address
88 the public policy interest in ensuring that sinkhole-damaged
89 residential property is repaired. Therefore, the presumption is
90 intended to operate as a burden-shifting presumption under ss.
91 90.302(2) and 90.304 The office may establish a pilot program to
92 offer optional sinkhole coverage in one or more counties or
93 other territories of the corporation for the purpose of
94 implementing s. 627.706, as amended by s. 30, chapter 2007-1,
95 Laws of Florida. Under the pilot program, the corporation is not
96 required to issue a notice of nonrenewal to exclude sinkhole
97 coverage upon the renewal of existing policies, but may exclude
98 such coverage using a notice of coverage change.
99
100 ================= T I T L E A M E N D M E N T ================
101 And the title is amended as follows:
102 Delete line 2
103 and insert:
104 An act relating to insurance coverage; amending s.
105 627.351, F.S.; prohibiting Citizen’s Property
106 Insurance Corporation from denying sinkhole coverage
107 for certain reasons; requiring the corporation to
108 submit an annual report to the Office of Insurance
109 Regulation and the Insurance Consumer Advocate on the
110 number of residential sinkhole policies issued and
111 declined; requiring the policy to include a
112 deductible; establishing a Citizens Sinkhole Repair
113 Program for sinkhole claims; providing program
114 components; specifying the corporation’s liability
115 with respect to sinkhole claims; specifying the
116 presumed correctness of professional engineer and
117 geologist opinions; deleting obsolete provisions;