HB 7023

1	A bill to be entitled
2	An act relating to the repeal of obsolete insurance
3	provisions; amending s. 627.311, F.S.; deleting an
4	obsolete presuit notice requirement for the Florida
5	Automobile Joint Underwriting Association; amending s.
6	627.351, F.S.; deleting an obsolete Citizens Property
7	Insurance Corporation reporting requirement; amending s.
8	627.706, F.S.; deleting an obsolete form filing deadline
9	for sinkhole coverage; amending s. 627.7065, F.S.;
10	deleting an obsolete reporting requirement for activities
11	relating to the sinkhole database; repealing s. 627.7077,
12	F.S., relating to a feasibility and cost-benefit study of
13	a Florida Sinkhole Insurance Facility and other matters
14	related to affordability and availability of sinkhole
15	insurance; amending s. 627.712, F.S.; deleting an obsolete
16	effective date for the exclusion of windstorm and contents
17	coverage; providing an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Paragraph (k) of subsection (3) of section
22	627.311, Florida Statutes, is amended to read:
23	627.311  Joint underwriters and joint reinsurers; public
24	records and public meetings exemptions.-
25	(3)  The office may, after consultation with insurers
26	licensed to write automobile insurance in this state, approve a
27	joint underwriting plan for purposes of equitable apportionment
28	or sharing among insurers of automobile liability insurance and
29	other motor vehicle insurance, as an alternate to the plan
30	required in s. 627.351(1). All insurers authorized to write
31	automobile insurance in this state shall subscribe to the plan
32	and participate therein. The plan shall be subject to continuous
33	review by the office which may at any time disapprove the entire
34	plan or any part thereof if it determines that conditions have
35	changed since prior approval and that in view of the purposes of
36	the plan changes are warranted. Any disapproval by the office
37	shall be subject to the provisions of chapter 120. The Florida
38	Automobile Joint Underwriting Association is created under the
39	plan. The plan and the association:
40	(k)1.  Shall have no liability, and no cause of action of
41	any nature shall arise against any member insurer or its agents
42	or employees, agents or employees of the association, members of
43	the board of governors of the association, the Chief Financial
44	Officer, or the office or its representatives for any action
45	taken by them in the performance of their duties or
46	responsibilities under this subsection. Such immunity does not
47	apply to actions for or arising out of breach of any contract or
48	agreement pertaining to insurance, or any willful tort.
49	2.  Notwithstanding the requirements of s. 624.155(3)(a),
50	as a condition precedent to bringing an action against the plan
51	under s. 624.155, the department and the plan must have been
52	given 90 days' written notice of the violation. If the
53	department returns a notice for lack of specificity, the 90-day
54	time period shall not begin until a proper notice is filed. This
55	notice must comply with the information requirements of s.
56	624.155(3)(b). Effective October 1, 2007, this subparagraph
57	shall expire unless reenacted by the Legislature prior to that
58	date.
59	Section 2.  Paragraphs (dd), (ee), and (ff) of subsection
60	(6) of section 627.351, Florida Statutes, are redesignated as
61	paragraphs (cc), (dd), and (ee), respectively, and present
62	paragraph (cc) of that subsection is amended to read:
63	627.351  Insurance risk apportionment plans.-
64	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.-
65	(cc)  By February 1, 2007, the corporation shall submit a
66	report to the President of the Senate, the Speaker of the House
67	of Representatives, the minority party leaders of the Senate and
68	the House of Representatives, and the chairs of the standing
69	committees of the Senate and the House of Representatives having
70	jurisdiction over matters relating to property and casualty
71	insurance. In preparing the report, the corporation shall
72	consult with the Office of Insurance Regulation, the Department
73	of Financial Services, and any other party the corporation
74	determines appropriate. The report must include all findings and
75	recommendations on the feasibility of requiring authorized
76	insurers that issue and service personal and commercial
77	residential policies and commercial nonresidential policies that
78	provide coverage for basic property perils except for the peril
79	of wind to issue and service for a fee personal and commercial
80	residential policies and commercial nonresidential policies
81	providing coverage for the peril of wind issued by the
82	corporation. The report must include:
83	1.  The expense savings to the corporation of issuing and
84	servicing such policies as determined by a cost-benefit
85	analysis.
86	2.  The expenses and liability to authorized insurers
87	associated with issuing and servicing such policies.
88	3.  The effect on service to policyholders of the
89	corporation relating to issuing and servicing such policies.
90	4.  The effect on the producing agent of the corporation of
91	issuing and servicing such policies.
92	5.  Recommendations as to the amount of the fee which
93	should be paid to authorized insurers for issuing and servicing
94	such policies.
95	6.  The effect that issuing and servicing such policies
96	will have on the corporation's number of policies, total insured
97	value, and probable maximum loss.
98	Section 3.  Subsections (4) and (5) of section 627.706,
99	Florida Statutes, are renumbered as subsections (3) and (4),
100	respectively, and present subsection (3) of that section is
101	amended to read:
102	627.706  Sinkhole insurance; catastrophic ground cover
103	collapse; definitions.-
104	(3)  On or before June 1, 2007, every insurer authorized to
105	transact property insurance in this state shall make a proper
106	filing with the office for the purpose of extending the
107	appropriate forms of property insurance to include coverage for
108	catastrophic ground cover collapse or for sinkhole losses.
109	Coverage for catastrophic ground cover collapse may not go into
110	effect until the effective date provided for in the filing
111	approved by the office.
112	Section 4.  Subsection (6) of section 627.7065, Florida
113	Statutes, is renumbered as subsection (5), and present
114	subsection (5) of that section is amended to read:
115	627.7065  Database of information relating to sinkholes;
116	the Department of Financial Services and the Department of
117	Environmental Protection.-
118	(5)  The Department of Environmental Protection, in
119	consultation with the Department of Financial Services, shall
120	present a report of activities relating to the sinkhole
121	database, including recommendations regarding the database and
122	similar matters, to the Governor, the Speaker of the House of
123	Representatives, the President of the Senate, and the Chief
124	Financial Officer by December 31, 2005. The report may consider
125	the need for the Legislature to create an entity to study the
126	increase in sinkhole activity in the state and other similar
127	issues relating to sinkhole damage, including recommendations
128	and costs for staffing the entity. The report may include other
129	information, as appropriate.
130	Section 5.  Section 627.7077, Florida Statutes, is
131	repealed.
132	Section 6.  Subsection (7) of section 627.712, Florida
133	Statutes, is amended to read:
134	627.712  Residential windstorm coverage required;
135	availability of exclusions for windstorm or contents.-
136	(7)  This section is effective July 1, 2007, but the office
137	may delay application of this section until a date no later than
138	October 1, 2007, upon approval by the Financial Services
139	Commission.
140	Section 7.  This act shall take effect July 1, 2010.

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