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) 03/22/05
HOUSE In Messages CODING: Words
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. 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. 29 each of one or more structures insured under a single policy, 30
the requirements of this paragraph
31 respect to the deductible for each structure.
PAGE 1
1 3. 2 hurricane or hurricanes during the calendar year, the insurer 3
may apply a deductible to a subsequent hurricane which
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. 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.
|
BACK
TO
PRIORITY BILLS |
HOME | BACK
TO
NEWS PAGES |