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3 | 3 | | HB 695 2022 |
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7 | 7 | | CODING: Words stricken are deletions; words underlined are additions. |
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8 | 8 | | hb0695-00 |
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9 | 9 | | Page 1 of 3 |
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10 | 10 | | 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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13 | 13 | | |
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14 | 14 | | A bill to be entitled 1 |
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15 | 15 | | An act relating to property insurer reimbursements; 2 |
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16 | 16 | | amending s. 215.555, F.S.; defining the term "unsound 3 |
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17 | 17 | | insurer"; revising requirements for coverage under the 4 |
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18 | 18 | | Florida Hurricane Catastrophe Fund of certain policies 5 |
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19 | 19 | | assumed by authorized insurers or the Citizens 6 |
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20 | 20 | | Property Insurance Corporation; providing 7 |
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21 | 21 | | construction; providing an effective date. 8 |
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22 | 22 | | 9 |
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23 | 23 | | Be It Enacted by the Legislature of the State of Florida: 10 |
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24 | 24 | | 11 |
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25 | 25 | | Section 1. Paragraph (e) of subsection (5) of section 12 |
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26 | 26 | | 215.555, Florida Statutes, is amended, and paragraph (p) is 13 |
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27 | 27 | | added to subsection (2) of that section, to read: 14 |
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28 | 28 | | 215.555 Florida Hurricane Catastrophe Fund. — 15 |
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29 | 29 | | (2) DEFINITIONS.—As used in this section: 16 |
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30 | 30 | | (p) "Unsound insurer" means an insurer determined by the 17 |
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31 | 31 | | Office of Insurance Regulation to be in unsound condition as 18 |
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32 | 32 | | defined in s. 624.80(2) or an insurer placed in receivership 19 |
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33 | 33 | | under chapter 631. 20 |
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34 | 34 | | (5) REIMBURSEMENT PREMIUMS. — 21 |
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35 | 35 | | (e)1. If an authorized insurer or the Citizens Property 22 |
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36 | 36 | | Insurance Corporation assumes or otherwise provides coverage for 23 |
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37 | 37 | | policies of an unsound insurer placed in liquidation under 24 |
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38 | 38 | | chapter 631 pursuant to s. 627.351(6) , the authorized insurer or 25 |
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39 | 39 | | |
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40 | 40 | | HB 695 2022 |
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43 | 43 | | |
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44 | 44 | | CODING: Words stricken are deletions; words underlined are additions. |
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45 | 45 | | hb0695-00 |
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46 | 46 | | Page 2 of 3 |
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47 | 47 | | 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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51 | 51 | | the Citizens Property Insurance Corporation may, pursuant to 26 |
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52 | 52 | | conditions mutually agreed to between the authorized insurer or 27 |
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53 | 53 | | the Citizens Property Insurance Corporation and the State Board 28 |
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54 | 54 | | of Administration, seek to obtain coverage for such policies 29 |
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55 | 55 | | under its contract with the fund or acce pt an assignment of the 30 |
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56 | 56 | | unsound liquidated insurer's contract with the fund. However, if 31 |
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57 | 57 | | a covered event has occurred before the effective date of the 32 |
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58 | 58 | | transfer of the policies, the authorized insurer or the Citizens 33 |
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59 | 59 | | Property Insurance Corporation may obtai n coverage for such 34 |
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60 | 60 | | policies only through an assignment as provided in subparagraph 35 |
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61 | 61 | | 3. 36 |
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62 | 62 | | 2. If an authorized insurer or the Citizens Property 37 |
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63 | 63 | | Insurance Corporation assumes policies from an unsound insurer 38 |
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64 | 64 | | and elects to cover these policies under its the corporation's 39 |
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65 | 65 | | contract with the fund, it shall notify the board of its insured 40 |
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66 | 66 | | values with respect to such policies within a specified time 41 |
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67 | 67 | | mutually agreed to between the authorized insurer or the 42 |
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68 | 68 | | Citizens Property Insurance Corporation and the board , after 43 |
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69 | 69 | | such assumption or other coverage transaction , and the fund 44 |
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70 | 70 | | shall treat such policies as having been in effect as of June 30 45 |
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71 | 71 | | of that year. 46 |
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72 | 72 | | 3. If an authorized insurer or the Citizens Property 47 |
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73 | 73 | | Insurance Corporation accepts In the event of an assignment of 48 |
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74 | 74 | | an unsound insurer's contract , the fund shall apply the unsound 49 |
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75 | 75 | | insurer's that contract to such policies and treat the 50 |
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76 | 76 | | |
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77 | 77 | | HB 695 2022 |
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78 | 78 | | |
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80 | 80 | | |
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81 | 81 | | CODING: Words stricken are deletions; words underlined are additions. |
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82 | 82 | | hb0695-00 |
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83 | 83 | | Page 3 of 3 |
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84 | 84 | | 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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88 | 88 | | authorized insurer or the Citizens Property Insurance 51 |
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89 | 89 | | Corporation as if it the corporation were the unsound liquidated 52 |
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90 | 90 | | insurer for the remaining term of the contract, with and the 53 |
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91 | 91 | | corporation shall have all rights and duties of the unsound 54 |
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92 | 92 | | liquidated insurer beginning on the date it provides coverage 55 |
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93 | 93 | | for such policies. This subparagraph may not be construed to 56 |
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94 | 94 | | limit the fund's right to receive the premium due under the 57 |
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95 | 95 | | unsound insurer's contract , but the corporation is not subject 58 |
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96 | 96 | | to any preexisting rights, liabilities, or duties of the 59 |
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97 | 97 | | liquidated insurer. The assignment, including any unresolved 60 |
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98 | 98 | | issues between the liquidat ed insurer and Citizens Property 61 |
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99 | 99 | | Insurance Corporation under the contract, shall be provided for 62 |
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100 | 100 | | in the liquidation order or otherwise determined by the court. 63 |
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101 | 101 | | However, if a covered event occurs before the effective date of 64 |
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102 | 102 | | the assignment, the corporation may not obtain coverage for such 65 |
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103 | 103 | | policies under its contract with the fund and shall accept an 66 |
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104 | 104 | | assignment of the liquidated insurer's contract as provided in 67 |
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105 | 105 | | this paragraph. 68 |
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106 | 106 | | Section 2. This act shall take effect July 1, 2022. 69 |
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