Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. PCS for SB 1980 (070118)
Barcode 513762
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Posey) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 On page 87, lines 2-28, delete those lines
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17 and insert:
18 Section 14. Subsection (2) of section 627.7011,
19 Florida Statutes, is amended, and subsection (6) is added to
20 that section, to read:
21 627.7011 Homeowners' policies; offer of replacement
22 cost coverage and law and ordinance coverage.--
23 (2) Unless the insurer obtains the policyholder's
24 written refusal of the policies or endorsements specified in
25 subsection (1), any policy covering the dwelling is deemed to
26 include the law and ordinance coverage limited to 25 percent
27 of the dwelling limit specified in paragraph (1)(b). The
28 rejection or selection of alternative coverage shall be made
29 on a form approved by the office. The form shall fully advise
30 the applicant of the nature of the coverage being rejected. If
31 this form is signed by a named insured, it will be
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. PCS for SB 1980 (070118)
Barcode 513762
1 conclusively presumed that there was an informed, knowing
2 rejection of the coverage or election of the alternative
3 coverage on behalf of all insureds. Unless the policyholder
4 requests in writing the coverage specified in this section, it
5 need not be provided in or supplemental to any other policy
6 that renews, insures, extends, changes, supersedes, or
7 replaces an existing policy when the policyholder has rejected
8 the coverage specified in this section or has selected
9 alternative coverage. The insurer must provide such
10 policyholder with notice of the availability of such coverage
11 in a form approved by the office at least once every 3 years.
12 The failure to provide such notice constitutes a violation of
13 this code, but does not affect the coverage provided under the
14 policy.
15 (6) This section does not prohibit an insurer from
16 limiting its liability under a policy or endorsement providing
17 that loss will be adjusted on the basis of replacement costs
18 to the lesser of:
19 (a) The limit of liability shown on the policy
20 declarations page;
21 (b) The reasonable and necessary cost to repair the
22 damaged, destroyed, or stolen covered property; or
23 (c) The reasonable and necessary cost to replace the
24 damaged, destroyed, or stolen covered property.
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28 And the title is amended as follows:
29 On page 5, line 20, after the semicolon,
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31 insert:
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. PCS for SB 1980 (070118)
Barcode 513762
1 providing that the section does not prohibit an
2 insurer from limiting its liability concerning
3 certain replacement costs;
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