Florida Senate - 2022 SB 1058 By Senator Hutson 7-00836B-22 20221058__ 1 A bill to be entitled 2 An act relating to property insurer reimbursements; 3 amending s. 215.555, F.S.; defining the term unsound 4 insurer; revising requirements for coverage under the 5 Florida Hurricane Catastrophe Fund of certain policies 6 assumed by authorized insurers or the Citizens 7 Property Insurance Corporation; providing 8 construction; providing an effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1.Paragraph (e) of subsection (5) of section 13 215.555, Florida Statutes, is amended, and paragraph (p) is 14 added to subsection (2) of that section, to read: 15 215.555Florida Hurricane Catastrophe Fund. 16 (2)DEFINITIONS.As used in this section: 17 (p)Unsound insurer means an insurer determined by the 18 Office of Insurance Regulation to be in unsound condition as 19 defined in s. 624.80(2) or an insurer placed in receivership 20 under chapter 631. 21 (5)REIMBURSEMENT PREMIUMS. 22 (e)1.If an authorized insurer or the Citizens Property 23 Insurance Corporation assumes or otherwise provides coverage for 24 policies of an unsound insurer an insurer placed in liquidation 25 under chapter 631 pursuant to s. 627.351(6), the authorized 26 insurer or the Citizens Property Insurance Corporation may, 27 pursuant to conditions mutually agreed to between the authorized 28 insurer or the Citizens Property Insurance Corporation and the 29 State Board of Administration, seek to obtain coverage for such 30 policies under its contract with the fund or accept an 31 assignment of the unsound liquidated insurers contract with the 32 fund. However, if a covered event has occurred before the 33 effective date of the transfer of the policies, the authorized 34 insurer or the Citizens Property Insurance Corporation may only 35 obtain coverage for such policies through an assignment as 36 provided in subparagraph 3. 37 2.If an authorized insurer or the Citizens Property 38 Insurance Corporation assumes policies from an unsound insurer 39 and elects to cover these policies under its the corporations 40 contract with the fund, it shall notify the board of its insured 41 values with respect to such policies within a specified time 42 mutually agreed to between the authorized insurer or the 43 Citizens Property Insurance Corporation and the board, after 44 such assumption or other coverage transaction, and the fund 45 shall treat such policies as having been in effect as of June 30 46 of that year. 47 3.If an authorized insurer or the Citizens Property 48 Insurance Corporation accepts In the event of an assignment of 49 an unsound insurers contract, the fund shall apply the unsound 50 insurers that contract to such policies and treat the 51 authorized insurer or the Citizens Property Insurance 52 Corporation as if it the corporation were the unsound liquidated 53 insurer for the remaining term of the contract, with and the 54 corporation shall have all rights and duties of the unsound 55 liquidated insurer beginning on the date it provides coverage 56 for such policies. This subparagraph may not be construed to 57 limit the funds right to receive the premium due under the 58 unsound insurers contract, but the corporation is not subject 59 to any preexisting rights, liabilities, or duties of the 60 liquidated insurer. The assignment, including any unresolved 61 issues between the liquidated insurer and Citizens Property 62 Insurance Corporation under the contract, shall be provided for 63 in the liquidation order or otherwise determined by the court. 64 However, if a covered event occurs before the effective date of 65 the assignment, the corporation may not obtain coverage for such 66 policies under its contract with the fund and shall accept an 67 assignment of the liquidated insurers contract as provided in 68 this paragraph. 69 Section 2.This act shall take effect July 1, 2022.