Florida Senate - 2005                      COMMITTEE AMENDMENT
    Bill No. PCS for SB 1488 (060960)
                        Barcode 342872
                            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 56, lines 1 through 7, 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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    2:24 PM   04/04/05                             s1488c-bi32-c3t

Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. PCS for SB 1488 (060960) Barcode 342872 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. 12 13 14 ================ T I T L E A M E N D M E N T =============== 15 And the title is amended as follows: 16 On page 4, lines 1 through 4, delete those lines 17 18 and insert: 19 insurance claim; amending s. 627.702, F.S.; 20 providing that an insurer is liable for a total 21 loss caused in part by a covered peril and in 22 part by a noncovered peril only if the covered 23 peril directly and in a natural and continuous 24 sequence produced or contributed substantially 25 to producing the total loss; providing 26 legislative intent relating to the payment of 27 policy benefits following a total loss without 28 the insured's receiving payments exceeding 29 those necessary to repair, rebuild, or replace 30 the insured structure; providing that if a 31 covered peril is a substantial contributing 2 2:24 PM 04/04/05 s1488c-bi32-c3t
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. PCS for SB 1488 (060960) Barcode 342872 1 factor to the total loss, the insurer is liable 2 for the limits for which the structure was 3 insured; providing an exception if the payment 4 amount exceeds the amount necessary to repair, 5 rebuild, or replace the structure; 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3 2:24 PM 04/04/05 s1488c-bi32-c3t