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A bill to be entitled |
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An act relating to title insurance; amending s. 624.608, |
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F.S.; excluding certain casualty insurance from the |
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definition of title insurance; amending s. 627.784, F.S.; |
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deleting a reference to guarantee of title in a |
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prohibition against issuing title insurance under certain |
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circumstances; amending s. 627.786, F.S.; authorizing |
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title insurers to issue certain policies or certificates |
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insuring a lien securing certain loans or mortgages under |
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certain circumstances; providing an effective date. |
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Be It Enacted by the Legislature of the State of Florida: |
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Section 1. Section 624.608, Florida Statutes, is amended |
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to read: |
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624.608 "Title insurance" defined.-- |
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(1)"Title insurance" is insurance of owners of real |
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property or others having an interest in real property or |
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contractual interest derived therefrom, or liens or encumbrances |
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on real property, against loss by encumbrance, or defective |
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titles, or invalidity, or adverse claim to title.
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(2) “Title insurance” does not include casualty insurance |
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coverage issued to and paid for by a financial institution to |
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insure any lien interest of the institution in real property |
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that secures a home equity loan or junior mortgage. |
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Section 2. Section 627.784, Florida Statutes, is amended |
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to read: |
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627.784 Casualty title insurance prohibited.--A title |
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insurance policy or guarantee of titlemay not be issued without |
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regard to the possible existence of adverse matters or defects |
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of title. |
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Section 3. Subsection (4) is added to section 627.786, |
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Florida Statutes, to read: |
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627.786 Transaction of title insurance and any other kind |
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of insurance prohibited.--
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(4) Subsection (1) does not preclude a title insurer from |
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issuing to a financial institution a casualty insurance policy |
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or certificate insuring its lien interest in real property that |
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secures a home equity loan or junior mortgage provided that the |
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financial institution pays for the insurance and does not pass |
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the cost to the consumer. |
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Section 4. This act shall take effect upon becoming a law. |