Florida 2022 Regular Session

Florida House Bill H0695 Compare Versions

Only one version of the bill is available at this time.
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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
1515 An act relating to property insurer reimbursements; 2
1616 amending s. 215.555, F.S.; defining the term "unsound 3
1717 insurer"; revising requirements for coverage under the 4
1818 Florida Hurricane Catastrophe Fund of certain policies 5
1919 assumed by authorized insurers or the Citizens 6
2020 Property Insurance Corporation; providing 7
2121 construction; providing an effective date. 8
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2323 Be It Enacted by the Legislature of the State of Florida: 10
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2525 Section 1. Paragraph (e) of subsection (5) of section 12
2626 215.555, Florida Statutes, is amended, and paragraph (p) is 13
2727 added to subsection (2) of that section, to read: 14
2828 215.555 Florida Hurricane Catastrophe Fund. — 15
2929 (2) DEFINITIONS.—As used in this section: 16
3030 (p) "Unsound insurer" means an insurer determined by the 17
3131 Office of Insurance Regulation to be in unsound condition as 18
3232 defined in s. 624.80(2) or an insurer placed in receivership 19
3333 under chapter 631. 20
3434 (5) REIMBURSEMENT PREMIUMS. — 21
3535 (e)1. If an authorized insurer or the Citizens Property 22
3636 Insurance Corporation assumes or otherwise provides coverage for 23
3737 policies of an unsound insurer placed in liquidation under 24
3838 chapter 631 pursuant to s. 627.351(6) , the authorized insurer or 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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5151 the Citizens Property Insurance Corporation may, pursuant to 26
5252 conditions mutually agreed to between the authorized insurer or 27
5353 the Citizens Property Insurance Corporation and the State Board 28
5454 of Administration, seek to obtain coverage for such policies 29
5555 under its contract with the fund or acce pt an assignment of the 30
5656 unsound liquidated insurer's contract with the fund. However, if 31
5757 a covered event has occurred before the effective date of the 32
5858 transfer of the policies, the authorized insurer or the Citizens 33
5959 Property Insurance Corporation may obtai n coverage for such 34
6060 policies only through an assignment as provided in subparagraph 35
6161 3. 36
6262 2. If an authorized insurer or the Citizens Property 37
6363 Insurance Corporation assumes policies from an unsound insurer 38
6464 and elects to cover these policies under its the corporation's 39
6565 contract with the fund, it shall notify the board of its insured 40
6666 values with respect to such policies within a specified time 41
6767 mutually agreed to between the authorized insurer or the 42
6868 Citizens Property Insurance Corporation and the board , after 43
6969 such assumption or other coverage transaction , and the fund 44
7070 shall treat such policies as having been in effect as of June 30 45
7171 of that year. 46
7272 3. If an authorized insurer or the Citizens Property 47
7373 Insurance Corporation accepts In the event of an assignment of 48
7474 an unsound insurer's contract , the fund shall apply the unsound 49
7575 insurer's that contract to such policies and treat the 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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8888 authorized insurer or the Citizens Property Insurance 51
8989 Corporation as if it the corporation were the unsound liquidated 52
9090 insurer for the remaining term of the contract, with and the 53
9191 corporation shall have all rights and duties of the unsound 54
9292 liquidated insurer beginning on the date it provides coverage 55
9393 for such policies. This subparagraph may not be construed to 56
9494 limit the fund's right to receive the premium due under the 57
9595 unsound insurer's contract , but the corporation is not subject 58
9696 to any preexisting rights, liabilities, or duties of the 59
9797 liquidated insurer. The assignment, including any unresolved 60
9898 issues between the liquidat ed insurer and Citizens Property 61
9999 Insurance Corporation under the contract, shall be provided for 62
100100 in the liquidation order or otherwise determined by the court. 63
101101 However, if a covered event occurs before the effective date of 64
102102 the assignment, the corporation may not obtain coverage for such 65
103103 policies under its contract with the fund and shall accept an 66
104104 assignment of the liquidated insurer's contract as provided in 67
105105 this paragraph. 68
106106 Section 2. This act shall take effect July 1, 2022. 69