Senate Bill 1304

    Florida Senate - 1998                                  SB 1304

    By Senator Grant





    13-1298-98

  1                      A bill to be entitled

  2         An act relating to property insurance; amending

  3         s. 627.701, F.S.; limiting hurricane

  4         deductibles in personal lines residential

  5         policies to deductibles for other risks unless

  6         the policyholder elects a higher deductible;

  7         providing an effective date.

  8

  9  Be It Enacted by the Legislature of the State of Florida:

10

11         Section 1.  Paragraph (b) of subsection (3) of section

12  627.701, Florida Statutes, is amended to read:

13         627.701  Liability of insureds; coinsurance;

14  deductibles.--

15         (3)

16         (b)1.  Except as otherwise provided in this paragraph,

17  prior to issuing a personal lines residential property

18  insurance policy on or after April 1, 1996, or prior to the

19  first renewal of a residential property insurance policy on or

20  after April 1, 1996, the insurer must offer alternative

21  deductible amounts applicable to hurricane or wind losses

22  equal to $500 and 2 percent of the policy dwelling limits,

23  unless the 2 percent deductible is less than $500. The

24  hurricane deductible may not exceed the deductible that

25  applies to other risks covered under the policy unless the

26  policyholder affirmatively elects a higher deductible. The

27  written notice of the offer shall specify the hurricane or

28  wind deductible to be applied in the event that the applicant

29  or policyholder fails to affirmatively choose a hurricane

30  deductible. The insurer must provide such policyholder with

31  notice of the availability of the deductible amounts specified

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                                  SB 1304
    13-1298-98




  1  in this paragraph in a form specified by the department in

  2  conjunction with each renewal of the policy. The failure to

  3  provide such notice constitutes a violation of this code but

  4  does not affect the coverage provided under the policy.

  5         2.  This paragraph does not apply with respect to a

  6  deductible program lawfully in effect on June 14, 1995, or to

  7  any similar deductible program, if the deductible program

  8  requires a minimum deductible amount of no less than 2 percent

  9  of the policy limits.

10         3.  With respect to a policy covering a risk with

11  dwelling limits of at least $100,000, but less than $250,000,

12  the insurer may, in lieu of offering a policy with a $500

13  hurricane or wind deductible as required by subparagraph 1.,

14  offer a policy that the insurer guarantees it will not

15  nonrenew for reasons of reducing hurricane loss for one

16  renewal period and that contains up to a 2 percent hurricane

17  or wind deductible as required by subparagraph 1.

18         4.  With respect to a policy covering a risk with

19  dwelling limits of $250,000 or more, the insurer need not

20  offer the $500 hurricane or wind deductible as required by

21  subparagraph 1., but must, except as otherwise provided in

22  this subsection, offer the 2 percent hurricane or wind

23  deductible as required by subparagraph 1.

24         Section 2.  This act applies to policies issued or

25  renewed on or after January 1, 1999.

26         Section 3.  This act shall take effect January 1, 1999.

27

28            *****************************************

29                          SENATE SUMMARY

30    Limits hurricane deductibles in personal lines
      residential policies to deductibles for other risks
31    unless the policyholder makes an affirmative election of
      a higher deductible.
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