Florida Senate - 2016                                     SB 548
       
       
        
       By Senator Richter
       
       
       
       
       
       23-00503-16                                            2016548__
    1                        A bill to be entitled                      
    2         An act relating to title insurance; amending s.
    3         627.778, F.S.; increasing a title insurer’s limit of
    4         risk from one-half of its surplus as to policyholders
    5         to the entirety of its surplus; changing a reference
    6         to “approved insurers” to “authorized insurers”;
    7         providing that title insurers may obtain reinsurance
    8         from an assuming insurer with a specified financial
    9         strength rating from A.M. Best Company, Inc., or an
   10         alternative rating from another organization approved
   11         by the Commissioner of the Office of Insurance
   12         Regulation; providing an effective date.
   13          
   14  Be It Enacted by the Legislature of the State of Florida:
   15  
   16         Section 1. Paragraph (a) of subsection (1) of section
   17  627.778, Florida Statutes, is amended, and subsection (4) is
   18  added to that section, to read:
   19         627.778 Limit of risk.—
   20         (1)(a) A title insurer may not issue any contract of title
   21  insurance, either as a primary insurer or as a coinsurer or
   22  reinsurer, upon an estate, lien, or interest in property located
   23  in this state unless:
   24         1. The contract shows on its face the dollar amount of the
   25  risk assumed; and
   26         2. The dollar amount of the risk assumed does not exceed
   27  one-half of its surplus as to policyholders, unless the excess
   28  is simultaneously reinsured in one or more authorized approved
   29  insurers.
   30         (4) Notwithstanding any other provision of this part, a
   31  title insurer may obtain reinsurance by a reinsurance treaty or
   32  other reinsurance agreement from an assuming insurer that has a
   33  financial strength rating of “A” or higher from A.M. Best
   34  Company, Inc., or that has an alternative rating from another
   35  recognized rating organization which is approved and determined
   36  by the commissioner to be an equivalent rating.
   37         Section 2. This act shall take effect July 1, 2016.