Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. PCS for SB 1488 (960506)
Barcode 134230
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Campbell) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 On page 54, lines 12 through 18, delete those lines
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17 and insert:
18 (b) The legislative intent of this subsection is to
19 require payment of policy benefits otherwise due in the event
20 of a total loss only when the covered peril is a substantial
21 contributing factor to the total loss. In furtherance of this
22 intent, when a loss is caused in part by a covered peril and
23 in part by a noncovered peril, the insurer is liable under
24 this section only if the covered peril directly and in a
25 natural and continuous sequence produced or contributed
26 substantially to producing a total loss.
27 (c) The legislative intent of this subsection is to
28 ensure payment of policy benefits due in the event of a total
29 loss without allowing an insured to receive any payments
30 exceeding those necessary to repair, rebuild, or replace the
31 insured structure following the total loss. In furtherance of
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11:33 AM 03/29/05 s1488c-bi32-c9j
Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. PCS for SB 1488 (960506)
Barcode 134230
1 this intent, when a covered peril is a substantial
2 contributing factor to a total loss and that total loss is
3 caused in part by a noncovered peril, the insurer's liability
4 under this section shall be for the amount of money for which
5 the property was insured. However, if payment of this amount
6 exceeds the amount necessary to repair, rebuild, or replace
7 the structure following the total loss, the insurer's
8 liability shall be in such lesser amount as would, when added
9 together with all other benefits actually paid for the subject
10 loss, satisfy the total cost to repair, rebuild, or replace
11 the structure.
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15 And the title is amended as follows:
16 On page 3, lines 26 through 29, delete those lines
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18 and insert:
19 s. 627.702, F.S.; providing that an insurer is
20 liable for a total loss caused in part by a
21 covered peril and in part by a noncovered peril
22 only if the covered peril directly and in a
23 natural and continuous sequence produced or
24 contributed substantially to producing the
25 total loss; providing legislative intent
26 relating to the payment of policy benefits
27 following a total loss without the insured's
28 receiving payments exceeding those necessary to
29 repair, rebuild, or replace the insured
30 structure; providing that if a covered peril is
31 a substantial contributing factor to the total
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11:33 AM 03/29/05 s1488c-bi32-c9j
Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. PCS for SB 1488 (960506)
Barcode 134230
1 loss, the insurer is liable for the limits for
2 which the structure was insured; providing an
3 exception if the payment amount exceeds the
4 amount necessary to repair, rebuild, or replace
5 the structure; creating s. 627.711, F.S.;
6 requiring
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11:33 AM 03/29/05 s1488c-bi32-c9j