House Bill hb1133

    Florida House of Representatives - 2002                HB 1133

        By Representative Mealor






  1                      A bill to be entitled

  2         An act relating to collateral protection

  3         insurance; amending s. 215.555, F.S.; revising

  4         a definition; specifying that a collateral

  5         insurance policy is a covered policy; providing

  6         an effective date.

  7

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

  9

10         Section 1.  Paragraph (c) of subsection (2) and

11  subsection (15) of section 215.555, Florida Statutes, are

12  amended to read:

13         215.555  Florida Hurricane Catastrophe Fund.--

14         (2)  DEFINITIONS.--As used in this section:

15         (c)  "Covered policy" means any insurance policy

16  covering residential property in this state, including, but

17  not limited to, any homeowner's, mobile home owner's, farm

18  owner's, condominium association, condominium unit owner's,

19  tenant's, or apartment building policy, collateral protection

20  insurance policy, or any other policy covering a residential

21  structure or its contents issued by any authorized insurer,

22  including any joint underwriting association or similar entity

23  created pursuant to law. Additionally, covered policies

24  include policies covering the peril of wind removed from the

25  Florida Residential Property and Casualty Joint Underwriting

26  Association, created pursuant to s. 627.351(6), or from the

27  Florida Windstorm Underwriting Association, created pursuant

28  to s. 627.351(2), by an authorized insurer under the terms and

29  conditions of an executed assumption agreement between the

30  authorized insurer and either such association. Each

31  assumption agreement between either association and such

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






    Florida House of Representatives - 2002                HB 1133

    784-112-02






  1  authorized insurer must be approved by the Florida Department

  2  of Insurance prior to the effective date of the assumption,

  3  and the Department of Insurance must provide written

  4  notification to the board within 15 working days after such

  5  approval. "Covered policy" does not include any policy that

  6  excludes wind coverage or hurricane coverage or any

  7  reinsurance agreement and does not include any policy

  8  otherwise meeting this definition which is issued by a surplus

  9  lines insurer or a reinsurer.

10         (15)  COLLATERAL PROTECTION INSURANCE.--As used in this

11  section and ss. 627.311 and 627.351, the term "collateral

12  protection insurance" means commercial property insurance of

13  which a creditor is the primary beneficiary and policyholder

14  and which protects or covers an interest of the creditor

15  arising out of a credit transaction secured by real or

16  personal property. Initiation of such coverage is triggered by

17  the mortgagor's failure to maintain insurance coverage as

18  required by the mortgage or other lending document. Collateral

19  protection insurance is not residential coverage. For purposes

20  of this section, a collateral protection insurance policy is a

21  covered policy.

22         Section 2.  This act shall take effect upon becoming a

23  law.

24

25            *****************************************

26                          HOUSE SUMMARY

27
      Specifies that a collateral insurance policy is a covered
28    policy.

29

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