Florida Senate - 2016                       CS for CS for SB 548
       
       
        
       By the Committees on Appropriations; and Banking and Insurance;
       and Senator Richter
       
       576-03792-16                                           2016548c2
    1                        A bill to be entitled                      
    2         An act relating to title insurance; amending s.
    3         627.778, F.S.; increasing a title insurer’s limit of
    4         risk from one-half of its surplus as to policyholders
    5         to the entirety of its surplus; revising an exception
    6         to the limit; providing that the risk limitation does
    7         not prohibit ceding portions of the total risk to
    8         specified reinsurers; providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Paragraphs (a) and (c) of subsection (1) of
   13  section 627.778, Florida Statutes, are amended to read:
   14         627.778 Limit of risk.—
   15         (1)(a) A title insurer may not issue any contract of title
   16  insurance, either as a primary insurer or as a coinsurer or
   17  reinsurer, upon an estate, lien, or interest in property located
   18  in this state unless:
   19         1. The contract shows on its face the dollar amount of the
   20  risk assumed; and
   21         2. The dollar amount of the risk assumed does not exceed
   22  one-half of its surplus as to policyholders, unless the excess
   23  is simultaneously reinsured in one or more authorized approved
   24  insurers or one or more reinsurers that may provide reinsurance
   25  under s. 624.610.
   26         (c) This subsection does not prohibit:
   27         1. The simultaneous issuance of policies insuring different
   28  estates, liens, or interests in the same property, if each of
   29  the simultaneous policies excepts the paramount estates, liens,
   30  or interests to which the insured estate, lien, or interest is
   31  subject and if each of the simultaneous policies conforms to
   32  this subsection.
   33         2. Ceding portions of the total risk to authorized insurers
   34  or reinsurers that may provide reinsurance under s. 624.610.
   35  Insurance ceded, including coinsurance effected, is a retention
   36  of risk by the insurer assuming the ceded risk, and not by the
   37  insurer ceding the risk.
   38         Section 2. This act shall take effect July 1, 2016.