Senate Bill sb2232

    Florida Senate - 2002                                  SB 2232

    By Senator Peaden





    1-1343-02

  1                      A bill to be entitled

  2         An act relating to insurance; amending ss.

  3         215.555, 627.351, F.S.; providing that

  4         collateral protection insurance policies are

  5         covered policies for purposes of the Florida

  6         Hurricane Catastrophe Fund; providing an

  7         effective date.

  8

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

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

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

13  amended to read:

14         215.555  Florida Hurricane Catastrophe Fund.--

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

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

17  covering residential property in this state, including, but

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

19  owner's, condominium association, condominium unit owner's,

20  tenant's, or apartment building policy. The term includes any

21  collateral protection policy, or any other policy covering a

22  residential structure or its contents issued by any authorized

23  insurer, including any joint underwriting association or

24  similar entity created pursuant to law. Additionally, covered

25  policies include policies covering the peril of wind removed

26  from the Florida Residential Property and Casualty Joint

27  Underwriting Association, created pursuant to s. 627.351(6),

28  or from the Florida Windstorm Underwriting Association,

29  created pursuant to s. 627.351(2), by an authorized insurer

30  under the terms and conditions of an executed assumption

31  agreement between the authorized insurer and either such

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






    Florida Senate - 2002                                  SB 2232
    1-1343-02




  1  association. Each assumption agreement between either

  2  association and such authorized insurer must be approved by

  3  the Florida Department of Insurance prior to the effective

  4  date of the assumption, and the Department of Insurance must

  5  provide written notification to the board within 15 working

  6  days after such approval. "Covered policy" does not include

  7  any policy that excludes wind coverage or hurricane coverage

  8  or any reinsurance agreement and does not include any policy

  9  otherwise meeting this definition which is issued by a surplus

10  lines insurer or a reinsurer.

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

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

13  protection insurance" means commercial property insurance of

14  which a creditor is the primary beneficiary and policyholder

15  and which protects or covers an interest of the creditor

16  arising out of a credit transaction secured by real or

17  personal property. Initiation of such coverage is triggered by

18  the mortgagor's failure to maintain insurance coverage as

19  required by the mortgage or other lending document. Collateral

20  protection insurance is not residential coverage, but for

21  purposes of this section is a covered policy.

22         Section 2.  Subsection (7) of section 627.351, Florida

23  Statutes, is amended to read:

24         627.351  Insurance risk apportionment plans.--

25         (7)  COLLATERAL PROTECTION INSURANCE.--As used in this

26  section and ss. 215.555 and 627.311, the term "collateral

27  protection insurance" means commercial property insurance of

28  which a creditor is the primary beneficiary and policyholder

29  and which protects or covers an interest of the creditor

30  arising out of a credit transaction secured by real or

31  personal property. Initiation of such coverage is triggered by

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    Florida Senate - 2002                                  SB 2232
    1-1343-02




  1  the mortgagor's failure to maintain insurance coverage as

  2  required by the mortgage or other lending document. Collateral

  3  protection insurance is not residential coverage, but for

  4  purposes of this section is a covered policy.

  5         Section 3.  This act shall take effect July 1, 2002.

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  8                          SENATE SUMMARY

  9    Provides that collateral protection insurance policies
      are covered policies for purposes of the Florida
10    Hurricane Catastrophe Fund.

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