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