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





                                                  SENATE AMENDMENT

    Bill No. CS for SB 2054

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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11  Senator Silver moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 1, line 15,

15

16  insert:

17         Section 1.  Subsection (2) of section 627.4091, Florida

18  Statutes, is amended to read:

19         627.4091  Specific reasons for denial, cancellation, or

20  nonrenewal.--

21         (2)(a)  Each notice of nonrenewal or cancellation must

22  be accompanied by the specific reasons for nonrenewal or

23  cancellation, including the specific underwriting reasons, if

24  applicable.

25         (b)  An insurer may not cancel or nonrenew a policy

26  providing residential coverage as described in s. 627.4025(1)

27  for an underwriting reason unless the insurer provides the

28  policyholder, in writing, with the underwriting reason for the

29  cancellation or nonrenewal. The reason stated must be based

30  upon a specific underwriting rule on file with the department

31  or contained in an approved rating manual of a licensed rating

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2054

    Amendment No.    





 1  organization of which the insurer is a subscriber or member,

 2  must cite the specific underwriting rule being invoked as a

 3  basis for the cancellation or nonrenewal, and must state or

 4  paraphrase such underwriting rule.

 5         Section 2.  Section 627.4138, Florida Statutes, is

 6  created to read:

 7         627.4138  Residential coverage; restrictions on

 8  cancellation or nonrenewal.--

 9         (1)  For the purposes of this section, the term

10  "residential coverage" has the same meaning as provided in s.

11  627.4025.

12         (2)  An insurer may not cancel or nonrenew a policy of

13  residential coverage because of a property damage claim that

14  arose due to causes that were not within the control of the

15  policyholder and does not exceed 25 percent of the insured

16  value of the dwelling, unless there has been a similar claim

17  by the policyholder within the previous 5 years.

18         (3)  With regard to policyholders who have maintained

19  residential coverage with an insurer for a period of at least

20  10 years, such insurer may not cancel or nonrenew coverage for

21  such policyholder solely on the basis of a single claim that

22  was not intentionally or willfully caused by the policyholder.

23         (4)  An insurer may not use as grounds for cancellation

24  or nonrenewal of a policy of residential coverage notice to

25  the insurer of damage to the insured property if a claim is

26  not filed.

27         (5)  The provisions of this section shall supplement,

28  and shall not restrict or replace, any other provision of the

29  Florida Insurance Code relating to the cancellation or

30  nonrenewal of a policy of residential coverage.

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    7:48 AM   04/15/98                              s2054c1c-38j04




                                                  SENATE AMENDMENT

    Bill No. CS for SB 2054

    Amendment No.    





 1  (Redesignate subsequent sections.)

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 3

 4  ================ T I T L E   A M E N D M E N T ===============

 5  And the title is amended as follows:

 6         On page 1, line 2, after the semicolon,

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 8  insert:

 9         amending s. 627.4091, F.S.; prohibiting

10         insurers from canceling or nonrenewing

11         residential policies without notice; providing

12         requirements for such notice; creating s.

13         627.4138, F.S.; providing restrictions on

14         cancellation or nonrenewal of residential

15         coverage;

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