Senate Bill sb1742c1

    Florida Senate - 2007                           CS for SB 1742

    By the Committee on Banking and Insurance; and Senator Fasano





    597-2462-07

  1                      A bill to be entitled

  2         An act relating to surplus lines coverage;

  3         amending s. 626.916, F.S.; providing

  4         requirements for insurance coverage eligible

  5         for export for residential property risks;

  6         requiring that the insured be notified that

  7         coverage may be available from Citizens

  8         Property Insurance Corporation; creating s.

  9         626.9232, F.S.; requiring that surplus lines

10         agents who sell surplus lines of homeowners'

11         insurance provide customers, who also are

12         eligible for coverage through Citizens Property

13         Insurance Corporation, with a premium rate

14         quote from Citizens Property Insurance

15         Corporation before selling such a surplus lines

16         policy; providing an effective date.

17  

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

19  

20         Section 1.  Paragraph (e) is added to subsection (1) of

21  section 626.916, Florida Statutes, to read:

22         626.916  Eligibility for export.--

23         (1)  No insurance coverage shall be eligible for export

24  unless it meets all of the following conditions:

25         (e)  For personal residential property risks, the

26  retail or producing agent must advise the insured in writing

27  that coverage may be available and may be less expensive from

28  Citizens Property Insurance Corporation. The notice must

29  include other information that states that Citizens'

30  assessments are higher and the coverage provided by Citizens

31  may be less than the property's existing coverage. If the

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






    Florida Senate - 2007                           CS for SB 1742
    597-2462-07




 1  notice is signed by the insured, it is presumed that the

 2  insured has been informed and knows that policies from

 3  Citizens Property Insurance Corporation may be less expensive,

 4  may provide less coverage, and will be accompanied by higher

 5  assessments.

 6         Section 2.  Section 626.9232, Florida Statutes, is

 7  created to read:

 8         626.9232  Surplus lines of homeowners' insurance; quote

 9  required.--Surplus lines agents who sell surplus lines of

10  homeowners' insurance must provide to all customers who are

11  eligible for coverage through Citizens Property Insurance

12  Corporation a premium rate quote from Citizens Property

13  Insurance Corporation before selling such a surplus lines

14  policy.

15         Section 3.  This act shall take effect upon becoming a

16  law.

17  

18          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
19                         Senate Bill 1742

20                                 

21  The committee substitute provides the following change:

22       Provides that a residential property insurance risk is
         not eligible for export to the surplus lines market
23       unless the retail or producing agent advises the insured
         in writing that coverage may be available and less
24       expensive from Citizens Property Insurance Corporation.
         The notice may also include other specified information.
25       If the notice is signed by the insured, it is presumed
         that the insured has been informed.
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CODING: Words stricken are deletions; words underlined are additions.