Senate Bill sb1668

    Florida Senate - 2003                                  SB 1668

    By Senator Posey





    24-668-03

  1                      A bill to be entitled

  2         An act relating to insurance; amending s.

  3         624.608, F.S.; revising the definition of the

  4         term "title insurance;" amending s. 627.784,

  5         F.S.; conforming provisions; amending s.

  6         627.786, F.S.; authorizing title insurers to

  7         issue certain casualty policies to lending

  8         institutions; providing an effective date.

  9

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

11

12         Section 1.  Section 624.608, Florida Statutes, is

13  amended to read:

14         624.608  "Title insurance" defined.--"Title insurance"

15  is insurance of owners of real property or others having an

16  interest in real property or contractual interest derived

17  therefrom, or liens or encumbrances on real property, against

18  loss by encumbrance, or defective titles, or invalidity, or

19  adverse claim to title. However, it does not include casualty

20  insurance that is issued to and the premiums paid by a lending

21  institution to insure its lien interest that secures a home

22  equity loan or junior mortgage.

23         Section 2.  Section 627.784, Florida Statutes, is

24  amended to read:

25         627.784  Casualty title insurance prohibited.--A title

26  insurance policy or guarantee of title may not be issued

27  without regard to the possible existence of adverse matters or

28  defects of title.

29         Section 3.  Section 627.786, Florida Statutes, is

30  amended to read:

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






    Florida Senate - 2003                                  SB 1668
    24-668-03




  1         627.786  Transaction of title insurance and any other

  2  kind of insurance prohibited.--

  3         (1)  An insurer may not transact title insurance and

  4  any other kind of insurance in this state.

  5         (2)  Subsection (1) does not apply to any insurer

  6  actively transacting title insurance and any other kind of

  7  insurance in this state on January 1, 1965.

  8         (3)  Subsection (1) does not preclude a title insurer

  9  from providing instruments to any prospective insured, in the

10  form and content approved by the department, under which the

11  title insurer assumes liability for loss due to the fraud of,

12  dishonesty of, misappropriation of funds by, or failure to

13  comply with written closing instructions by, its contract

14  agents, agencies, or approved attorneys in connection with a

15  real property transaction for which the title insurer is to

16  issue a title insurance policy.

17         (4)  Subsection (1) does not preclude a title insurer

18  from issuing to a lending institution a casualty insurance

19  policy or certificate insuring its lien interest in real

20  property that secures a home equity loan or junior mortgage if

21  the lending institution pays for the insurance.

22         Section 4.  This act shall take effect July 1, 2003.

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25                          SENATE SUMMARY

26    Provides an exception to allow lending institutions to
      purchase casualty insurance protecting its lien interest
27    in real property that secures home equity loans or junior
      mortgages.
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CODING: Words stricken are deletions; words underlined are additions.