Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1488
                        Barcode 113790
                            CHAMBER ACTION
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11  Senator Garcia moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         On page 49, line 15, through
15            page 52, line 30, delete those lines
16  
17  and insert:  
18         Section 12.  Effective October 1, 2006, subsections
19  (3), (4), (8), and (9) of section 627.701, Florida Statutes,
20  as amended by section 4 of chapter 2004-480, Laws of Florida,
21  are amended to read:
22         627.701  Liability of insureds; coinsurance;
23  deductibles.--
24         (3)(a)  A policy of residential property insurance
25  shall include a deductible amount applicable to hurricane or
26  wind losses no lower than $500 and no higher than 2 percent of
27  the policy dwelling limits with respect to personal lines
28  residential risks, and no higher than 3 percent of the policy
29  limits with respect to commercial lines residential risks;
30  however, if a risk was covered on August 24, 1992, under a
31  policy having a higher deductible than the deductibles allowed
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    8:11 AM   05/02/05                             s1488c2c-40-z2g

Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 113790 1 by this paragraph, a policy covering such risk may include a 2 deductible no higher than the deductible in effect on August 3 24, 1992. Notwithstanding the other provisions of this 4 paragraph, a personal lines residential policy covering a risk 5 valued at $50,000 or less may include a deductible amount 6 attributable to hurricane or wind losses no lower than $250, 7 and a personal lines residential policy covering a risk valued 8 at $100,000 or more may include a deductible amount 9 attributable to hurricane or wind losses no higher than 10 5 10 percent of the policy limits unless subject to a higher 11 deductible on August 24, 1992; however, no maximum deductible 12 is required with respect to a personal lines residential 13 policy covering a risk valued at more than $500,000. An 14 insurer may require a higher deductible, provided such 15 deductible is the same as or similar to a deductible program 16 lawfully in effect on June 14, 1995. In addition to the 17 deductible amounts authorized by this paragraph, an insurer 18 may also offer policies with a copayment provision under 19 which, after exhaustion of the deductible, the policyholder is 20 responsible for 10 percent of the next $10,000 of insured 21 hurricane or wind losses. 22 (b)1. Except as otherwise provided in this paragraph, 23 prior to issuing a personal lines residential property 24 insurance policy on or after January 1, 2006 April 1, 1996, or 25 prior to the first renewal of a residential property insurance 26 policy on or after January 1, 2006 April 1, 1996, the insurer 27 must offer alternative deductible amounts applicable to 28 hurricane or wind losses equal to $500, and 2 percent, 5 29 percent, and 10 percent of the policy dwelling limits, unless 30 the specific percentage 2 percent deductible is less than 31 $500. The written notice of the offer shall specify the 2 8:11 AM 05/02/05 s1488c2c-40-z2g
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 113790 1 hurricane or wind deductible to be applied in the event that 2 the applicant or policyholder fails to affirmatively choose a 3 hurricane deductible. The insurer must provide such 4 policyholder with notice of the availability of the deductible 5 amounts specified in this paragraph in a form approved by the 6 office in conjunction with each renewal of the policy. The 7 failure to provide such notice constitutes a violation of this 8 code but does not affect the coverage provided under the 9 policy. 10 2. This paragraph does not apply with respect to a 11 deductible program lawfully in effect on June 14, 1995, or to 12 any similar deductible program, if the deductible program 13 requires a minimum deductible amount of no less than 2 percent 14 of the policy limits. 15 3. With respect to a policy covering a risk with 16 dwelling limits of at least $100,000, but less than $250,000, 17 the insurer may, in lieu of offering a policy with a $500 18 hurricane or wind deductible as required by subparagraph 1., 19 offer a policy that the insurer guarantees it will not 20 nonrenew for reasons of reducing hurricane loss for one 21 renewal period and that contains up to a 2 percent hurricane 22 or wind deductible as required by subparagraph 1. 23 4. With respect to a policy covering a risk with 24 dwelling limits of $250,000 or more, the insurer need not 25 offer the $500 hurricane or wind deductible as required by 26 subparagraph 1., but must, except as otherwise provided in 27 this subsection, offer the other 2 percent hurricane 28 deductibles or wind deductible as required by subparagraph 1. 29 (c) In order to provide for the transition from wind 30 deductibles to hurricane deductibles as required by this 31 subsection, an insurer is required to provide wind deductibles 3 8:11 AM 05/02/05 s1488c2c-40-z2g
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 113790 1 meeting the requirements of this subsection until the 2 effective date of the insurer's first rate filing made after 3 January 1, 1997, and is thereafter required to provide 4 hurricane deductibles meeting the requirements of this 5 subsection. 6 (4)(a) Any policy that contains a separate hurricane 7 deductible must on its face include in boldfaced type no 8 smaller than 18 points the following statement: "THIS POLICY 9 CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY 10 RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU." A policy 11 containing a coinsurance provision applicable to hurricane 12 losses must on its face include in boldfaced type no smaller 13 than 18 points the following statement: "THIS POLICY CONTAINS 14 A CO-PAY PROVISION THAT MAY RESULT IN HIGH OUT-OF-POCKET 15 EXPENSES TO YOU." 16 (b) Beginning October 1, 2005, for any personal lines 17 residential property insurance policy containing a separate 18 hurricane deductible, the insurer shall compute and 19 prominently display the actual dollar value of the hurricane 20 deductible on the declarations page of the policy at issuance 21 and, for renewal, on the renewal declarations page of the 22 policy or on the premium renewal notice. 23 (c) Beginning October 1, 2005, for any personal lines 24 residential property insurance policy containing an inflation 25 guard rider, the insurer shall compute and prominently display 26 the actual dollar value of the hurricane deductible on the 27 declarations page of the policy at issuance and, for renewal, 28 on the renewal declarations page of the policy or on the 29 premium renewal notice. In addition, beginning October 1, 30 2005, for any personal lines residential property insurance 31 policy containing an inflation guard rider, the insurer shall 4 8:11 AM 05/02/05 s1488c2c-40-z2g
Florida Senate - 2005 SENATOR AMENDMENT Bill No. CS for CS for SB 1488 Barcode 113790 1 notify the policyholder of the possibility that the hurricane 2 deductible may be higher than indicated when loss occurs due 3 to application of the inflation guard rider. Such notification 4 shall be made on the declarations page of the policy at 5 issuance and, for renewal, on the renewal declarations page of 6 the policy or on the premium renewal notice. 7 8 9 ================ T I T L E A M E N D M E N T =============== 10 And the title is amended as follows: 11 On page 3, line 26, following the semicolon 12 13 insert: 14 providing for computation and display of the 15 dollar value of hurricane deductibles; 16 requiring insurers to compute and display 17 actual dollar values of certain riders for 18 certain policies; 19 20 21 22 23 24 25 26 27 28 29 30 31 5 8:11 AM 05/02/05 s1488c2c-40-z2g