Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. CS for SB 1894
Barcode 334520
LEGISLATIVE ACTION
Senate . House
Comm: WD .
04/20/2009 .
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The Committee on Finance and Tax (Justice) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Between lines 47 and 48
4 insert:
5 Section 2. Effective July 1, 2009, subsection (4) of
6 section 626.914, Florida Statutes, is amended to read:
7 626.914 Definitions.—As used in this Surplus Lines Law, the
8 term:
9 (4) “Diligent effort” means seeking coverage from and
10 having been rejected by at least three authorized insurers
11 currently writing this type of coverage and documenting these
12 rejections by filing a statement verified under oath that the
13 conditions regarding rejections by authorized insurers stated in
14 this part have been met. Such verified statements shall be
15 attached to and made a part of all surplus lines policies.
16 However, if the residential structure has a dwelling replacement
17 cost of $1 million or more, the term means seeking coverage from
18 and having been rejected by at least one authorized insurer
19 currently writing this type of coverage and documenting this
20 rejection.
21 Section 3. Effective July 1, 2009, paragraph (a) of
22 subsection (1) of section 626.916, Florida Statutes, is amended
23 to read:
24 626.916 Eligibility for export.—
25 (1) No insurance coverage shall be eligible for export
26 unless it meets all of the following conditions:
27 (a) The full amount of insurance required must not be
28 procurable, after a diligent effort has been made by the
29 producing agent to do so, from among the insurers authorized to
30 transact and actually writing that kind and class of insurance
31 in this state, and the amount of insurance exported shall be
32 only the excess over the amount so procurable from authorized
33 insurers. Surplus lines agents must verify, in compliance with
34 s. 626.914(4), that a diligent effort has been made by requiring
35 a properly documented statement of diligent effort from the
36 retail or producing agent. However, to be in compliance with the
37 diligent effort requirement, the surplus lines agent’s reliance
38 must be reasonable under the particular circumstances
39 surrounding the export of that particular risk. Reasonableness
40 shall be assessed by taking into account factors which include,
41 but are not limited to, a regularly conducted program of
42 verification of the information provided by the retail or
43 producing agent. Declinations must be documented on a risk-by
44 risk basis. If it is not possible to obtain the full amount of
45 insurance required by layering the risk, it is permissible to
46 export the full amount.
47
48 ================= T I T L E A M E N D M E N T ================
49 And the title is amended as follows:
50 Delete lines 6 - 37
51 and insert:
52 exception; amending s. 626.914, F.S.; clarifying the
53 definition of the term “diligent effort” to require
54 the documentation of rejections for coverage by
55 specified means; amending s. 626.916, F.S.; requiring
56 that surplus lines agents verify certain information
57 in compliance with specified provisions of state law;
58 amending s. 626.924, F.S.; requiring that surplus
59 lines policies issued on or after a specified date
60 have a specified statement printed on the face of the
61 policy; creating s. 626.9371, F.S.; providing methods
62 of payment for premiums and claims regarding surplus
63 lines contracts issued on or after a specified date;
64 requiring a written authorization to complete payment
65 under certain circumstances; providing for waiver of
66 such requirement; providing that an insurer remains
67 liable for payment of a claim if corresponding funds
68 are misdirected; creating s. 626.9372, F.S.; requiring
69 that certain insurers provide a disclosure statement
70 to a claimant under certain circumstances; requiring
71 that such statement include certain information;
72 requiring that an insurer disclose certain additional
73 information upon the request of a claimant; requiring
74 the amendment of such statement under certain
75 circumstances; creating s. 626.9373, F.S.; providing
76 for the payment of attorney’s fees in cases involving
77 surplus lines insurers at the trial and appellate
78 levels; amending s. 626.9374, F.S.; requiring that a
79 surplus lines policy containing a separate hurricane
80 or wind deductible issued on or after a specified date
81 have a specified statement printed on the face of the
82 policy; requiring that a surplus lines policy
83 containing a coinsurance provision applicable to
84 hurricane or wind losses issued on or after a
85 specified date have a specified statement printed on
86 the face of the policy; providing for severability;
87 providing for the retroactive applicability of certain
88 provisions; providing effective dates.