HB 753

1	A bill to be entitled
2	An act relating to insurance; amending s. 627.40951,
3	F.S., relating to standard personal lines residential
4	insurance policy; providing application to certain
5	commercial lines residential property insurance
6	policies; amending s. 627.4137, F.S.; specifying that
7	upon written request of a claimant, an insurer
8	providing liability insurance coverage must disclose
9	certain information to the claimant within a specified
10	time after the written request; amending s. 627.701,
11	F.S.; authorizing a surplus lines carrier to issue
12	real or personal property coverage containing a
13	coinsurance clause imposing liability on the insured
14	only under certain circumstances; requiring a policy
15	containing a separate windstorm deductible or
16	coinsurance provision to include certain disclosures
17	in boldfaced type; voiding separate deductibles for
18	hurricane or windstorm coverage if a policy fails to
19	comply with required disclosures relating to separate
20	deductibles; providing that the applicable deductible
21	in such policy reverts to the all covered perils
22	deductible under certain circumstances; specifying
23	that certain policies that contain commercial lines
24	residential coverage must include specified statements
25	relating to dwelling policy limits and deductibles;
26	voiding separate deductibles for hurricane or
27	windstorm coverage if certain policies containing
28	commercial lines residential coverage fail to make the
29	required disclosures relating to dwelling policy
30	limits and deductibles; providing that the applicable
31	separate deductibles in certain policies that contain
32	commercial lines residential coverage revert to the
33	applicable all covered perils deductible under certain
34	circumstances; providing an effective date.
35
36	Be It Enacted by the Legislature of the State of Florida:
37
38	Section 1.  Subsection (1) of section 627.40951, Florida
39	Statutes, is amended to read:
40	627.40951  Standard personal lines residential insurance
41	policy.-
42	(1)  The Legislature finds that many consumers who filed
43	property loss claims as a result of the hurricanes that struck
44	this state in 2004 were inadequately insured due to the
45	difficulty consumers encounter in trying to understand the
46	complex nature of property insurance policies. The purpose and
47	intent of this section is to have property and casualty insurers
48	offer standard personal lines residential property insurance
49	policies and standard checklists of policy contents, in
50	accordance with s. 627.4143, to consumers and to ensure that
51	these policies and checklists are written in a simple format
52	with easily readable language that will enable most consumers to
53	understand the principal benefits and coverage provided in the
54	policy; the principal exclusions and limitations or reductions
55	contained in the policy, including, but not limited to,
56	deductibles, coinsurance, and any other limitations or
57	reductions; and any additional coverage provided through any
58	rider or endorsement that accompanies the policy and renewal or
59	cancellation provisions. Beginning July 1, 2012, this subsection
60	applies to commercial lines residential property insurance
61	policies entered into on or after that date.
62	Section 2.  Subsection (1) of section 627.4137, Florida
63	Statutes, is amended to read:
64	627.4137  Disclosure of certain information required.-
65	(1)  Each insurer which does or may provide liability
66	insurance coverage to pay all or a portion of any claim which
67	might be made shall provide, within 30 days after of the written
68	request of the claimant, a statement, under oath, of a corporate
69	officer or the insurer's claims manager or superintendent
70	setting forth the following information with regard to each
71	known policy of insurance, including excess or umbrella
72	insurance:
73	(a)  The name of the insurer.
74	(b)  The name of each insured.
75	(c)  The limits of the liability coverage.
76	(d)  A statement of any policy or coverage defense which
77	such insurer reasonably believes is available to such insurer at
78	the time of filing such statement.
79	(e)  A copy of the policy.
80
81	In addition, the insured, or her or his insurance agent, upon
82	written request of the claimant or the claimant's attorney,
83	shall disclose the name and coverage of each known insurer to
84	the claimant and shall forward such request for information as
85	required by this subsection to all affected insurers. The
86	insurer shall then supply the information required in this
87	subsection to the claimant within 30 days after of receipt of
88	such request.
89	Section 3.  Subsection (1), paragraph (a) of subsection
90	(4), and subsection (8) of section 627.701, Florida Statutes,
91	are amended to read:
92	627.701  Liability of insureds; coinsurance; deductibles.-
93	(1)  A property insurer, including any surplus lines
94	carrier issuing a policy of insurance in this state, may issue
95	an insurance policy or contract covering either real or personal
96	property in this state which contains provisions requiring the
97	insured to be liable as a coinsurer with the insurer issuing the
98	policy for any part of the loss or damage by covered peril to
99	the property described in the policy only if:
100	(a)  The following words are printed or stamped on the face
101	of the policy, or a form containing the following words is
102	attached to the policy: "Coinsurance contract: The rate charged
103	in this policy is based upon the use of the coinsurance clause
104	attached to this policy, with the consent of the insured.";
105	(b)  The coinsurance clause in the policy is clearly
106	identifiable; and
107	(c)  The rate for the insurance with or without the
108	coinsurance clause is furnished the insured upon his or her
109	request.
110	(4)(a)  Any policy that contains a separate hurricane or
111	windstorm deductible of any kind must on its face include in
112	boldfaced type no smaller than 18 points the following
113	statement: "THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR
114	HURRICANE OR WINDSTORM LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-
115	POCKET EXPENSES TO YOU." A policy containing a coinsurance
116	provision applicable to hurricane or windstorm losses must on
117	its face include in boldfaced type no smaller than 18 points the
118	following statement: "THIS POLICY CONTAINS A CO-PAY PROVISION
119	THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU."
120	Beginning July 1, 2012, failure to comply with this paragraph
121	voids any separate deductible for hurricane or windstorm losses
122	contained in a policy entered into on or after that date, and
123	the otherwise applicable separate deductible in the policy must
124	then revert to the all covered perils deductible applicable to
125	the policy.
126	(8)  Notwithstanding the other provisions of this section
127	or of other law, but only as to hurricane coverage as defined in
128	s. 627.4025 for commercial lines residential coverages:,
129	(a)  An insurer may offer a deductible in an amount not
130	exceeding 10 percent of the insured value if, at the time of
131	such offer and at each renewal, the insurer also offers to the
132	policyholder a deductible in the amount of 3 percent of the
133	insured value. Nothing in this subsection prohibits any
134	deductible otherwise authorized by this section. All forms by
135	which the offers authorized in this subsection are made or
136	required to be made shall be on forms that are adopted or
137	approved by the commission or office.
138	(b)  For any insurance contract entered into on or after
139	July 1, 2012, which contains such coverage, the policy must:
140	1.  State on the declarations page the dwelling policy
141	limits as an aggregate dollar amount and the deductible in an
142	aggregate dollar amount in addition to any stated percentage.
143	2.  If the dwelling policy limits are calculated on a per
144	building basis, clearly state any deductible on a per building
145	basis and identify on the same page the dollar amount of any
146	deductible for each building.
147	3.  Comply with this paragraph, and any failure to comply
148	voids any separate deductible for hurricane or windstorm losses
149	contained in the policy, and results in the reversion of an
150	otherwise applicable separate deductible in the policy to the
151	all covered perils deductible applicable to the policy.
152	Section 4.  This act shall take effect July 1, 2012.

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