Florida Senate - 2017                          SENATOR AMENDMENT
       Bill No. CS/HB 359, 1st Eng.
       
       
       
       
       
       
                                Ì505904%Î505904                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 1/RE/2R         .                                
             05/04/2017 10:04 PM       .                                
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       Senator Brandes moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (2) of section 177.041, Florida
    6  Statutes, is amended to read:
    7         177.041 Boundary survey and title certification required.
    8  Every plat or replat of a subdivision submitted to the approving
    9  agency of the local governing body must be accompanied by:
   10         (2) A title opinion of an attorney at law licensed in
   11  Florida or a property information report certification by an
   12  abstractor or a title company showing that record title to the
   13  land as described and shown on the plat is in the name of the
   14  person, persons, corporation, or entity executing the
   15  dedication. The title opinion or property information report
   16  must certification shall also show all mortgages not satisfied
   17  or released of record nor otherwise terminated by law.
   18         Section 2. Subsection (16) of section 177.091, Florida
   19  Statutes, is amended to read:
   20         177.091 Plats made for recording.—Every plat of a
   21  subdivision offered for recording shall conform to the
   22  following:
   23         (16) Location and width of proposed easements and existing
   24  easements identified in the title opinion or property
   25  information report certification required by s. 177.041(2) must
   26  shall be shown on the plat or in the notes or legend, and their
   27  intended use shall be clearly stated. Where easements are not
   28  coincident with property lines, they must be labeled with
   29  bearings and distances and tied to the principal lot, tract, or
   30  right-of-way.
   31         Section 3. Paragraph (a) of subsection (5) of section
   32  197.502, Florida Statutes, is amended to read:
   33         197.502 Application for obtaining tax deed by holder of tax
   34  sale certificate; fees.—
   35         (5)(a) The tax collector may contract with a title company
   36  or an abstract company to provide the minimum information
   37  required in subsection (4), consistent with rules adopted by the
   38  department. If additional information is required, the tax
   39  collector must make a written request to the title or abstract
   40  company stating the additional requirements. The tax collector
   41  may select any title or abstract company, regardless of its
   42  location, as long as the fee is reasonable, the minimum
   43  information is submitted, and the title or abstract company is
   44  authorized to do business in this state. The tax collector may
   45  advertise and accept bids for the title or abstract company if
   46  he or she considers it appropriate to do so.
   47         1. The property information ownership and encumbrance
   48  report must include the letterhead of the person, firm, or
   49  company that makes the search, and the signature of the
   50  individual who makes the search or of an officer of the firm.
   51  The tax collector is not liable for payment to the firm unless
   52  these requirements are met. The report may be submitted to the
   53  tax collector in an electronic format.
   54         2. The tax collector may not accept or pay for any title
   55  search or abstract if financial responsibility is not assumed
   56  for the search. However, reasonable restrictions as to the
   57  liability or responsibility of the title or abstract company are
   58  acceptable. Notwithstanding s. 627.7843(3), the tax collector
   59  may contract for higher maximum liability limits.
   60         3. In order to establish uniform prices for property
   61  information ownership and encumbrance reports within the county,
   62  the tax collector must ensure that the contract for property
   63  information ownership and encumbrance reports include all
   64  requests for title searches or abstracts for a given period of
   65  time.
   66         Section 4. Paragraph (b) of subsection (6) of section
   67  215.555, Florida Statutes, is amended to read:
   68         215.555 Florida Hurricane Catastrophe Fund.—
   69         (6) REVENUE BONDS.—
   70         (b) Emergency assessments.—
   71         1. If the board determines that the amount of revenue
   72  produced under subsection (5) is insufficient to fund the
   73  obligations, costs, and expenses of the fund and the
   74  corporation, including repayment of revenue bonds and that
   75  portion of the debt service coverage not met by reimbursement
   76  premiums, the board shall direct the Office of Insurance
   77  Regulation to levy, by order, an emergency assessment on direct
   78  premiums for all property and casualty lines of business in this
   79  state, including property and casualty business of surplus lines
   80  insurers regulated under part VIII of chapter 626, but not
   81  including any workers’ compensation premiums or medical
   82  malpractice premiums. As used in this subsection, the term
   83  “property and casualty business” includes all lines of business
   84  identified on Form 2, Exhibit of Premiums and Losses, in the
   85  annual statement required of authorized insurers by s. 624.424
   86  and any rule adopted under this section, except for those lines
   87  identified as accident and health insurance and except for
   88  policies written under the National Flood Insurance Program. The
   89  assessment shall be specified as a percentage of direct written
   90  premium and is subject to annual adjustments by the board in
   91  order to meet debt obligations. The same percentage applies to
   92  all policies in lines of business subject to the assessment
   93  issued or renewed during the 12-month period beginning on the
   94  effective date of the assessment.
   95         2. A premium is not subject to an annual assessment under
   96  this paragraph in excess of 6 percent of premium with respect to
   97  obligations arising out of losses attributable to any one
   98  contract year, and a premium is not subject to an aggregate
   99  annual assessment under this paragraph in excess of 10 percent
  100  of premium. An annual assessment under this paragraph continues
  101  as long as the revenue bonds issued with respect to which the
  102  assessment was imposed are outstanding, including any bonds the
  103  proceeds of which were used to refund the revenue bonds, unless
  104  adequate provision has been made for the payment of the bonds
  105  under the documents authorizing issuance of the bonds.
  106         3. Emergency assessments shall be collected from
  107  policyholders. Emergency assessments shall be remitted by
  108  insurers as a percentage of direct written premium for the
  109  preceding calendar quarter as specified in the order from the
  110  Office of Insurance Regulation. The office shall verify the
  111  accurate and timely collection and remittance of emergency
  112  assessments and shall report the information to the board in a
  113  form and at a time specified by the board. Each insurer
  114  collecting assessments shall provide the information with
  115  respect to premiums and collections as may be required by the
  116  office to enable the office to monitor and verify compliance
  117  with this paragraph.
  118         4. With respect to assessments of surplus lines premiums,
  119  each surplus lines agent shall collect the assessment at the
  120  same time as the agent collects the surplus lines tax required
  121  by s. 626.932, and the surplus lines agent shall remit the
  122  assessment to the Florida Surplus Lines Service Office created
  123  by s. 626.921 at the same time as the agent remits the surplus
  124  lines tax to the Florida Surplus Lines Service Office. The
  125  emergency assessment on each insured procuring coverage and
  126  filing under s. 626.938 shall be remitted by the insured to the
  127  Florida Surplus Lines Service Office at the time the insured
  128  pays the surplus lines tax to the Florida Surplus Lines Service
  129  Office. The Florida Surplus Lines Service Office shall remit the
  130  collected assessments to the fund or corporation as provided in
  131  the order levied by the Office of Insurance Regulation. The
  132  Florida Surplus Lines Service Office shall verify the proper
  133  application of such emergency assessments and shall assist the
  134  board in ensuring the accurate and timely collection and
  135  remittance of assessments as required by the board. The Florida
  136  Surplus Lines Service Office shall annually calculate the
  137  aggregate written premium on property and casualty business,
  138  other than workers’ compensation and medical malpractice,
  139  procured through surplus lines agents and insureds procuring
  140  coverage and filing under s. 626.938 and shall report the
  141  information to the board in a form and at a time specified by
  142  the board.
  143         5. Any assessment authority not used for a particular
  144  contract year may be used for a subsequent contract year. If,
  145  for a subsequent contract year, the board determines that the
  146  amount of revenue produced under subsection (5) is insufficient
  147  to fund the obligations, costs, and expenses of the fund and the
  148  corporation, including repayment of revenue bonds and that
  149  portion of the debt service coverage not met by reimbursement
  150  premiums, the board shall direct the Office of Insurance
  151  Regulation to levy an emergency assessment up to an amount not
  152  exceeding the amount of unused assessment authority from a
  153  previous contract year or years, plus an additional 4 percent
  154  provided that the assessments in the aggregate do not exceed the
  155  limits specified in subparagraph 2.
  156         6. The assessments otherwise payable to the corporation
  157  under this paragraph shall be paid to the fund unless the Office
  158  of Insurance Regulation and the Florida Surplus Lines Service
  159  Office received a notice from the corporation and the fund,
  160  which shall be conclusive and upon which they may rely without
  161  further inquiry, that the corporation has issued bonds and the
  162  fund has no agreements in effect with local governments under
  163  paragraph (c). On or after the date of the notice and until the
  164  date the corporation has no bonds outstanding, the fund shall
  165  have no right, title, or interest in or to the assessments,
  166  except as provided in the fund’s agreement with the corporation.
  167         7. Emergency assessments are not premium and are not
  168  subject to the premium tax, to the surplus lines tax, to any
  169  fees, or to any commissions. An insurer is liable for all
  170  assessments that it collects and must treat the failure of an
  171  insured to pay an assessment as a failure to pay the premium. An
  172  insurer is not liable for uncollectible assessments.
  173         8. If an insurer is required to return an unearned premium,
  174  it shall also return any collected assessment attributable to
  175  the unearned premium. A credit adjustment to the collected
  176  assessment may be made by the insurer with regard to future
  177  remittances that are payable to the fund or corporation, but the
  178  insurer is not entitled to a refund.
  179         9. If a surplus lines insured or an insured who has
  180  procured coverage and filed under s. 626.938 is entitled to the
  181  return of an unearned premium, the Florida Surplus Lines Service
  182  Office shall provide a credit or refund to the agent or such
  183  insured for the collected assessment attributable to the
  184  unearned premium before remitting the emergency assessment
  185  collected to the fund or corporation.
  186         10. The exemption of medical malpractice insurance premiums
  187  from emergency assessments under this paragraph is repealed May
  188  31, 2019, and medical malpractice insurance premiums shall be
  189  subject to emergency assessments attributable to loss events
  190  occurring in the contract years commencing on June 1, 2019.
  191         Section 5. Subsection (1) of section 624.407, Florida
  192  Statutes, is amended to read:
  193         624.407 Surplus required; new insurers.—
  194         (1) To receive authority to transact any one kind or
  195  combinations of kinds of insurance, as defined in part V of this
  196  chapter, an insurer applying for its original certificate of
  197  authority in this state shall possess surplus as to
  198  policyholders at least the greater of:
  199         (a) For a property and casualty insurer, $5 million, or
  200  $2.5 million for any other insurer;
  201         (b) For life insurers, 4 percent of the insurer’s total
  202  liabilities;
  203         (c) For life and health insurers, 4 percent of the
  204  insurer’s total liabilities, plus 6 percent of the insurer’s
  205  liabilities relative to health insurance;
  206         (d) For all insurers other than life insurers and life and
  207  health insurers, 10 percent of the insurer’s total liabilities;
  208         (e) Notwithstanding paragraph (a) or paragraph (d), for a
  209  domestic insurer that transacts residential property insurance
  210  and is:
  211         1. Not a wholly owned subsidiary of an insurer domiciled in
  212  any other state, $15 million.
  213         2. A wholly owned subsidiary of an insurer domiciled in any
  214  other state, $50 million; or
  215         (f) Notwithstanding paragraphs (a), (d), and (e), for a
  216  domestic insurer that only transacts limited sinkhole coverage
  217  insurance for personal lines residential property pursuant to s.
  218  627.7151, $7.5 million; or
  219         (g) Notwithstanding paragraphs (a), (b), and (e), for an
  220  insurer that only transacts residential property insurance in
  221  the form of renter’s insurance, tenant’s coverage, cooperative
  222  unit owner insurance, or any combination thereof, $10 million.
  223         Section 6. Paragraph (c) of subsection (8) of section
  224  624.424, Florida Statutes, is amended to read:
  225         624.424 Annual statement and other information.—
  226         (8)
  227         (c) The board of directors of an insurer shall hire the
  228  certified public accountant that prepares the audit required by
  229  this subsection and the board shall establish an audit committee
  230  of three or more directors of the insurer or an affiliated
  231  company. The audit committee shall be responsible for discussing
  232  audit findings and interacting with the certified public
  233  accountant with regard to her or his findings. The audit
  234  committee shall be comprised solely of members who are free from
  235  any relationship that, in the opinion of its board of directors,
  236  would interfere with the exercise of independent judgment as a
  237  committee member. The audit committee shall report to the board
  238  any findings of adverse financial conditions or significant
  239  deficiencies in internal controls that have been noted by the
  240  accountant. The insurer may request the office to waive this
  241  requirement of the audit committee membership based upon unusual
  242  hardship to the insurer.
  243         Section 7. Subsection (15) of section 625.012, Florida
  244  Statutes, is amended to read:
  245         625.012 “Assets” defined.—In any determination of the
  246  financial condition of an insurer, there shall be allowed as
  247  “assets” only such assets as are owned by the insurer and which
  248  consist of:
  249         (15)(a) Assessments levied pursuant to s. 631.57(3)(a) and
  250  (e) or s. 631.914 which that are paid before policy surcharges
  251  are collected and result in a receivable for policy surcharges
  252  to be collected in the future. This amount, to the extent it is
  253  likely that it will be realized, meets the definition of an
  254  admissible asset as specified in the National Association of
  255  Insurance Commissioners’ Statement of Statutory Accounting
  256  Principles No. 4. The asset shall be established and recorded
  257  separately from the liability regardless of whether it is based
  258  on a retrospective or prospective premium-based assessment. If
  259  an insurer is unable to fully recoup the amount of the
  260  assessment because of a reduction in writings or withdrawal from
  261  the market, the amount recorded as an asset shall be reduced to
  262  the amount reasonably expected to be recouped.
  263         (b) Assessments levied as monthly installments pursuant to
  264  s. 631.57(3)(e)3. or s. 631.914 which that are paid after policy
  265  surcharges are collected so that the recognition of assets is
  266  based on actual premium written offset by the obligation to the
  267  Florida Insurance Guaranty Association or the Florida Workers’
  268  Compensation Insurance Guaranty Association, Incorporated.
  269         Section 8. Paragraph (e) of subsection (7) of section
  270  627.062, Florida Statutes, is amended to read:
  271         627.062 Rate standards.—
  272         (7) The provisions of this subsection apply only to rates
  273  for medical malpractice insurance and control to the extent of
  274  any conflict with other provisions of this section.
  275         (e) For medical malpractice rates subject to paragraph
  276  (2)(a), the medical malpractice insurer shall make an annual
  277  base a rate filing in accordance with s. 627.0645 under this
  278  section, sworn to by at least two executive officers of the
  279  insurer, at least once each calendar year.
  280         Section 9. Subsection (1) of section 627.0645, Florida
  281  Statutes, is amended to read:
  282         627.0645 Annual filings.—
  283         (1) Each rating organization filing rates for, and each
  284  insurer writing, any line of property or casualty insurance to
  285  which this part applies, except:
  286         (a) Workers’ compensation and employer’s liability
  287  insurance;
  288         (b) Insurance as defined in ss. 624.604 and 624.605,
  289  limited to coverage of commercial risks other than commercial
  290  residential multiperil and medical malpractice insurance that is
  291  subject to s. 627.062(2)(a) and (f); or
  292         (c) Travel insurance, if issued as a master group policy
  293  with a situs in another state where each certificateholder pays
  294  less than $30 in premium for each covered trip and where the
  295  insurer has written less than $1 million in annual written
  296  premiums in the travel insurance product in this state during
  297  the most recent calendar year,
  298  
  299  shall make an annual base rate filing for each such line with
  300  the office no later than 12 months after its previous base rate
  301  filing, demonstrating that its rates are not inadequate.
  302         Section 10. Section 627.4035, Florida Statutes, is amended
  303  to read:
  304         627.4035 Cash Payment of premiums; claims.—
  305         (1)(a) The premiums for insurance contracts issued in this
  306  state or covering risk located in this state must shall be paid
  307  in cash consisting of coins, currency, checks, electronic
  308  checks, drafts, or money orders or by using a debit card, credit
  309  card, automatic electronic funds transfer, or payroll deduction
  310  plan. By July 1, 2007, Insurers issuing personal lines
  311  residential and commercial property policies shall provide a
  312  premium payment plan option to their policyholders which allows
  313  for a minimum of quarterly and semiannual payment of premiums.
  314  Insurers may, but are not required to, offer monthly payment
  315  plans. Insurers issuing such policies must submit their premium
  316  payment plan option to the office for approval before use.
  317         (b) If, due to insufficient funds, a payment of premium
  318  under this subsection by debit card, credit card, electronic
  319  funds transfer, or electronic check is returned, is declined, or
  320  cannot be processed, the insurer may impose an insufficient
  321  funds fee of up to $15 per occurrence pursuant to the policy
  322  terms. However, the insurer may not charge the policyholder an
  323  insufficient funds fee if the failure in payment resulted from
  324  fraud or misuse on the policyholder’s account from which the
  325  payment was made and such fraud or misuse was not attributed to
  326  the policyholder.
  327         (2) Subsection (1) is not applicable to:
  328         (a) Reinsurance agreements;
  329         (b) Pension plans;
  330         (c) Premium loans, whether or not subject to an automatic
  331  provision;
  332         (d) Dividends, whether to purchase additional paid-up
  333  insurance or to shorten the dividend payment period;
  334         (e) Salary deduction plans;
  335         (f) Preauthorized check plans;
  336         (g) Waivers of premiums on disability;
  337         (h) Nonforfeiture provisions affording benefits under
  338  supplementary contracts; or
  339         (i) Such other methods of paying for life insurance as may
  340  be permitted by the commission pursuant to rule or regulation.
  341         (3) All payments of claims made in this state under any
  342  contract of insurance shall be paid:
  343         (a) In cash consisting of coins, currency, checks, drafts,
  344  or money orders and, if by check or draft, shall be in such form
  345  as will comply with the standards for cash items adopted by the
  346  Federal Reserve System to facilitate the sorting, routing, and
  347  mechanized processing of such items; or
  348         (b) If authorized in writing by the recipient or the
  349  recipient’s representative, by debit card or any other form of
  350  electronic transfer. Any fees or costs to be charged against the
  351  recipient must be disclosed in writing to the recipient or the
  352  recipient’s representative at the time of written authorization.
  353  However, the written authorization requirement may be waived by
  354  the recipient or the recipient’s representative if the insurer
  355  verifies the identity of the insured or the insured’s recipient
  356  and does not charge a fee for the transaction. If the funds are
  357  misdirected, the insurer remains liable for the payment of the
  358  claim.
  359         Section 11. Subsection (5) is added to section 627.421,
  360  Florida Statutes, to read:
  361         627.421 Delivery of policy.—
  362         (5)An electronically delivered document satisfies any
  363  font, size, color, spacing, or other formatting requirement for
  364  printed documents if the format in the electronically delivered
  365  document has reasonably similar proportions or emphasis of the
  366  characters relative to the rest of the electronic document or is
  367  otherwise displayed in a reasonably conspicuous manner.
  368         Section 12. Subsection (9) of section 627.7295, Florida
  369  Statutes, is amended to read:
  370         627.7295 Motor vehicle insurance contracts.—
  371         (9)(a) In addition to the methods provided in s.
  372  627.4035(1), premium for motor vehicle insurance contracts
  373  issued in this state or covering risk located in this state may
  374  be paid in cash in the form of a draft or drafts.
  375         (b) If, due to insufficient funds, payment of premium under
  376  this subsection by debit card, credit card, electronic funds
  377  transfer, or electronic check is returned, is declined, or
  378  cannot be processed, the insurer may impose an insufficient
  379  funds fee of up to $15 per occurrence pursuant to the policy
  380  terms.
  381         Section 13. Section 627.7843, Florida Statutes, is amended
  382  to read:
  383         627.7843 Property information reports Ownership and
  384  encumbrance reports.—
  385         (1) As used in this section, the term “property information
  386  report” means any report that contains the limitations of this
  387  section and discloses documents or information appearing in the
  388  Official Records as described in s. 28.222, in the records of a
  389  county tax collector pertaining to ad valorem real property
  390  taxes and special assessments imposed by a governmental
  391  authority against real property, in the Secretary of State
  392  filing office, or in another governmental filing office
  393  pertaining to real or personal property. A property information
  394  report may be issued by any person, including a Florida-licensed
  395  title insurer, title agent, or title agency “ownership and
  396  encumbrance report” means a report that discloses certain
  397  defined documents imparting constructive notice and appearing in
  398  the official records relating to specified real property.
  399         (2) A property information An ownership and encumbrance
  400  report may not directly or indirectly set forth or imply any
  401  opinion, warranty, guarantee, insurance, or other similar
  402  assurance and does not constitute title insurance as defined in
  403  s. 624.608 as to the status of title to real property.
  404         (3) The contractual liability of the issuer of a property
  405  information report is limited to the person or persons expressly
  406  identified by name in the property information report as the
  407  recipient or recipients of the property information report and
  408  may not exceed the amount paid for the property information
  409  report. Only contractual remedies are available for an error or
  410  omission that arises from a property information report. A
  411  property information report must contain the following language:
  412  
  413  “This report is not title insurance. Pursuant to s. 627.7843,
  414  Florida Statutes, the maximum liability of the issuer of this
  415  property information report for errors or omissions in this
  416  property information report is limited to the amount paid for
  417  this property information report, and is further limited to the
  418  person(s) expressly identified by name in the property
  419  information report as the recipient(s) of the property
  420  information report.” Any ownership and encumbrance report or
  421  similar report that is relied on or intended to be relied on by
  422  a consumer must be on forms approved by the office, and must
  423  provide for a maximum liability for incorrect information of not
  424  more than $1,000.
  425         (4) This section is not applicable to an opinion of title
  426  issued by an attorney.
  427         Section 14. This act shall take effect upon becoming a law.
  428  
  429  ================= T I T L E  A M E N D M E N T ================
  430  And the title is amended as follows:
  431         Delete everything before the enacting clause
  432  and insert:
  433                        A bill to be entitled                      
  434         An act relating to the regulation of insurance
  435         companies; amending s. 177.041, F.S.; providing that a
  436         specified property information report, rather than a
  437         specified certification by an abstractor or a title
  438         company, may be submitted as part of certain
  439         information required in relation to the plat or replat
  440         of a subdivision; amending ss. 177.091 and 197.502,
  441         F.S.; conforming provisions to changes made by the
  442         act; amending s. 215.555, F.S.; deleting a future
  443         repeal of an exemption of medical malpractice
  444         insurance premiums from certain emergency assessments
  445         by the State Board of Administration relating to the
  446         Florida Hurricane Catastrophe Fund; amending s.
  447         624.407, F.S.; specifying the minimum surplus as to
  448         policyholders for insurers that only transact in
  449         specified forms of residential property insurance;
  450         amending s. 624.424, F.S.; revising a requirement for
  451         audit committees established by the boards of
  452         directors of insurers, relating to relationships that
  453         would interfere with the exercise of independent
  454         judgment of committee members; amending s. 625.012,
  455         F.S.; revising the allowable assets of insurers
  456         relating to specified levied assessments; amending s.
  457         627.062, F.S.; revising requirements for certain rate
  458         filings by medical malpractice insurers; amending s.
  459         627.0645, F.S.; adding certain medical malpractice
  460         insurance to casualty insurance excluded from an
  461         annual base rate filing requirement for rating
  462         organizations; amending s. 627.4035, F.S.; revising
  463         the methods of paying premiums for insurance
  464         contracts; authorizing an insurer to impose a
  465         specified insufficient funds fee if certain premium
  466         payment methods are returned, are declined, or cannot
  467         be processed; providing an exception; amending s.
  468         627.421, F.S.; providing that an electronically
  469         delivered document in an insurance policy meets
  470         formatting requirements for printed documents under
  471         certain conditions; amending s. 627.7295, F.S.;
  472         conforming provisions to changes made by the act;
  473         amending s. 627.7843, F.S.; replacing provisions
  474         relating to ownership and encumbrance reports with
  475         provisions relating to property information reports;
  476         defining the term “property information report”;
  477         prohibiting property information reports from setting
  478         forth or implying certain assurances; providing
  479         construction; specifying a limitation on the
  480         contractual liability of issuers of property
  481         information reports; requiring a specified disclosure
  482         in property information reports; providing
  483         applicability; providing an effective date.