Senate Bill sb2232c1

    Florida Senate - 2002                           CS for SB 2232

    By the Committee on Banking and Insurance; and Senator Peaden





    311-2184-02

  1                      A bill to be entitled

  2         An act relating to insurance; amending s.

  3         215.555, F.S.; providing that collateral

  4         protection insurance policies for personal

  5         residences are covered policies for purposes of

  6         the Florida Hurricane Catastrophe Fund;

  7         providing an effective date.

  8

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

10

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

12  215.555, Florida Statutes, is 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. The term includes any

20  collateral protection insurance policy as it applies to

21  personal residences, 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

                                  1

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






    Florida Senate - 2002                           CS for SB 2232
    311-2184-02




  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         Section 2.  This act shall take effect July 1, 2002.

12

13          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
14                         Senate Bill 2232

15

16  Clarifies that a collateral protection insurance policy
    applying to personal residences would be deemed a "covered
17  policy" for purposes of the Florida Hurricane Catastrophe
    Fund.
18
    Removes a redundant provision defining collateral protection
19  insurance.

20

21

22

23

24

25

26

27

28

29

30

31

                                  2

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