Senate Bill 1832er

    ENROLLED

    1999 Legislature                        SB 1832, 1st Engrossed



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  2         An act relating to collateral protection

  3         insurance; defining the term "collateral

  4         protection insurance" for purposes of the

  5         Florida Hurricane Catastrophe Fund and the

  6         code; providing an effective date.

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

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10         Section 1.  As used in sections 215.555, 627.311, and

11  627.351, Florida Statutes, the term "collateral protection

12  insurance" means commercial property insurance of which a

13  creditor is the primary beneficiary and policyholder and which

14  protects or covers an interest of the creditor arising out of

15  a credit transaction secured by real or personal property.

16  Initiation of such coverage is triggered by the mortgagor's

17  failure to maintain insurance coverage as required by the

18  mortgage or other lending document. Collateral protection

19  insurance is not residential coverage.

20         Section 2.  This act shall take effect July 1, 1999.

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