SB 1486

Relating to Property Ins./Hurricane Deductibles

 

Last Action: 05/06/2005 S In returning messages; Concurred; CS passed as amended; YEAS 38 NAYS 1; Ordered engrossed, then enrolled


S 1486    GENERAL BILL/CS by Banking and Insurance; Senator Garcia (Compare H 1745)
Property Ins./Hurricane Deductibles; provides that requirement for
hurricane deductible to apply on annual basis applies to personal lines
residential property insurance policies; requires insurers that provide
commercial residential property insurance to offer alternative hurricane
deductibles that apply on annual basis or to each hurricane. Amends
627.701. EFFECTIVE DATE: Upon becoming law.
02/15/05 SENATE Filed
02/24/05 SENATE Referred to Banking and Insurance; Judiciary; General
                  Government Appropriations; Ways and Means; Rules and Calendar
03/08/05 SENATE Introduced, referred to Banking and Insurance; Judiciary;
                  General Government Appropriations; Ways and Means; Rules and
                  Calendar -SJ 00091; On Committee agenda-- Banking and
                  Insurance, 03/09/05, 9:00 am, 412-K
03/09/05 SENATE CS by Banking and Insurance; YEAS 9 NAYS 0 -SJ 00135; CS
                  read first time on 03/10/05 -SJ 00149; Now in Judiciary
                  -SJ 00135
03/10/05 SENATE Withdrawn from Judiciary; General Government Appropriations;
                  Ways and Means; Rules and Calendar -SJ 00124; Placed on
                  Calendar, on second reading
03/17/05 SENATE Placed on Special Order Calendar -SJ 00226; Read second time
                  -SJ 00222
03/18/05 SENATE Read third time -SJ 00235; CS passed; YEAS 37 NAYS 0
                  -SJ 00235

03/22/05 HOUSE In Messages

CODING: Words stricken are deletions; words underlined are additions. 

 

  1 A bill to be entitled 

  2 An act relating to property insurance; amending

  3 s. 627.701, F.S.; providing that the 

  4 requirement for a hurricane deductible to apply

  5 on an annual basis applies to personal lines

  6 residential property insurance policies;

  7 requiring insurers that provide commercial

  8 residential property insurance to offer

  9 alternative hurricane deductibles that apply on

10 an annual basis or to each hurricane; providing

11 an effective date.

12

13 Be It Enacted by the Legislature of the State of Florida:

14

15 Section 1. Subsection (5) of section 627.701, Florida

16 Statutes, as amended by section 4 of chapter 2004-480, Laws of

17 Florida, is amended to read:

18 627.701 Liability of Insureds; coinsurance;

19 deductibles.--

20 (5)(a) The hurricane deductible of any personal lines 

21 residential property insurance policy issued or renewed on or

22 after May 1, 2005, shall be applied as follows:

23 1.(a) The hurricane deductible shall apply on an

24 annual basis to all covered hurricane losses that occur during

25 the calendar year for losses that are covered under one or

26 more policies issued by the same insurer or an insurer in the

27 same insurer group.

28 2.(b) If a hurricane deductible applies separately to

29 each of one or more structures insured under a single policy,

30 the requirements of this paragraph subsection apply with

31 respect to the deductible for each structure. 

 

                                          PAGE  1

  1 3.(c) If there was a hurricane loss for a prior 

  2 hurricane or hurricanes during the calendar year, the insurer 

  3 may apply a deductible to a subsequent hurricane which that is 

  4 the greater of the remaining amount of the hurricane 

  5 deductible or the amount of the deductible that applies to 

  6 perils other than a hurricane. Insurers may require 

  7 policyholders to report hurricane losses that are below the 

  8 hurricane deductible or to maintain receipts or other records 

  9 of such hurricane losses in order to apply such losses to 

10 subsequent hurricane claims. 

11 4.(d) If there are hurricane losses in a calendar year 

12 on more than one policy issued by the same insurer or an 

13 insurer in the same insurer group, the hurricane deductible 

14 shall be the highest amount stated in any one of the policies. 

15 If a policyholder who had a hurricane loss under the prior 

16 policy is provided or offered a lower hurricane deductible 

17 under the new or renewal policy, the insurer must notify the 

18 policyholder, in writing, at the time the lower hurricane 

19 deductible is provided or offered, that the lower hurricane 

20 deductible will not apply until January 1 of the following 

21 calendar year. 

22 (b) For commercial residential property insurance 

23 policies issued or renewed on or after January 1, 2006, the 

24 insurer must offer the policyholder the following alternative 

25 hurricane deductibles: 

26 1. A hurricane deductible that applies on an annual 

27 basis as provided in paragraph (a); and 

28 2. A hurricane deductible that applies to each 

29 hurricane. 

30 Section 2. This act shall take effect upon becoming a 

31 law. 

                                            PAGE 2 

  1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN COMMITTEE SUBSTITUTE FOR 

  2 Senate Bill 1486 

  3 

  4 The committee substitute amends s. 627.701, F.S., to provide that the annual hurricane

     deductible requirement applies to 

  5 personal lines residential policies issued or renewed on or after May 1, 2005. For

     commercial residential policies issued 

  6 or renewed on or after January 1, 2006, the insurer would be required to offer the

     policyholder the option of: 1) a 

  7 hurricane deductible that applies on an annual basis (as required for personal lines

      policies), and 2) a hurricane 

  8 deductible that applies to each hurricane. 


CODING: Words stricken are deletions; words underlined are additions. 


 
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