CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS for SB 994
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, between lines 23 and 24,
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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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9:57 AM 04/27/98 s0994c1c-38k7u
SENATE AMENDMENT
Bill No. CS for SB 994
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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SENATE AMENDMENT
Bill No. CS for SB 994
Amendment No.
1 (Redesignate subsequent sections.)
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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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