Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 810
       
       
       
       
       
       
                                Barcode 804560                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/3R          .                                
             04/11/2013 02:52 PM       .                                
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       Senator Simpson moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Before line 11
    4  insert:
    5         Section 1. Paragraph (ee) of subsection (6) of section
    6  627.351, Florida Statutes, is amended to read:
    7         627.351 Insurance risk apportionment plans.—
    8         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
    9         (ee)1. The corporation may not decline a request for
   10  coverage of residential sinkhole loss based upon: conditions
   11  existing at or on the property which do not constitute sinkhole
   12  related activity; or the proximity of the property to the
   13  location of another property on which conditions exist which do
   14  not constitute sinkhole-related activity.
   15         a. For the purposes of this subparagraph, the term
   16  “sinkhole-related activity” means settlement or systematic
   17  weakening of the earth if the settlement or systematic weakening
   18  results from contemporaneous movement or raveling of soils,
   19  sediments, or rock materials into subterranean voids created by
   20  the effect of water on a limestone or similar rock formation.
   21         b. On or before December 31 of each calendar year, the
   22  corporation shall submit an annual report to the Office of
   23  Insurance Regulation and the Insurance Consumer Advocate
   24  disclosing:
   25         (I) The total number of requests received for residential
   26  sinkhole loss coverage;
   27         (II) The total number of policies issued for residential
   28  sinkhole loss coverage;
   29         (III) The total number of requests declined for residential
   30  sinkhole loss coverage; and
   31         (IV) The reasons for each decline of residential sinkhole
   32  loss coverage.
   33         2. A policy for residential property insurance issued by
   34  the corporation must include a deductible applicable to sinkhole
   35  losses equal to 1 percent, 2 percent, 5 percent, or 10 percent
   36  of the policy dwelling limits, with an appropriate premium
   37  discount amount offered with each deductible amount.
   38         3. The Legislature finds that it is in the public interest
   39  that indemnity funds paid pursuant to sinkhole loss claims are
   40  applied to repairing property damage in order to ensure that
   41  sinkhole indemnity funds paid for sinkhole damage are applied to
   42  above-ground and subsurface repairs. Therefore, a Citizens
   43  Sinkhole Repair Program shall be established by the corporation,
   44  subject to approval by the Office of Insurance Regulation and
   45  the Financial Services Commission. Any claim against a
   46  corporation policy that covers residential sinkhole loss for
   47  which it is determined that such loss has occurred must be
   48  included in the repair program.
   49         a. The repair program may be managed by a third-party
   50  administrator and, at a minimum, must include the following
   51  components:
   52         (I) The corporation may not require the policyholder to
   53  advance payment for repairs.
   54         (II) All applicable provisions contained in the
   55  corporation’s plan of operation apply, including, but not
   56  limited to, the consumer’s right to courteous, prompt, and
   57  professional customer service and the right to fair, prompt, and
   58  professional services.
   59         (III) Repairs shall be conducted by repair contractors who
   60  are qualified based upon guidelines adopted by the Financial
   61  Services Commission by rule.
   62         (A) The repair program shall select qualified repair
   63  contractors to perform repairs to damaged property pursuant to a
   64  fixed-price contract between the contractor and the
   65  policyholder. Under the terms of the contract, the selected
   66  repair contractor is solely responsible for the performance of
   67  all necessary repairs.
   68         (B) Each qualified contractor shall post a performance
   69  bond, secured by a third-party surety, in favor of the
   70  corporation as obligee, in a principle amount equal to the total
   71  cost of all fixed-price contracts annually awarded to that
   72  repair contractor.
   73         (C) Each repair contractor shall also provide a warranty to
   74  the policyholder which covers all repairs provided by the
   75  contractor for at least 5 years after completion of the repairs.
   76         b. The corporation is not responsible for serving as a
   77  repair contractor. The corporation’s obligations pursuant to the
   78  repair program are not an election to repair by the corporation
   79  and therefore do not imply a new contractual relationship.
   80         c. The corporation’s liability related to repair activity
   81  for damaged property included in the repair program is no
   82  greater than the limits of the policy covering that property.
   83         d. For the purposes of the repair program, the presumed
   84  correctness specified in s. 627.7073(1)(c) of the findings,
   85  opinions, and recommendations by the professional engineer or
   86  geologist as to land and building stabilization and foundation
   87  repair is recognized by the Legislature as necessary to address
   88  the public policy interest in ensuring that sinkhole-damaged
   89  residential property is repaired. Therefore, the presumption is
   90  intended to operate as a burden-shifting presumption under ss.
   91  90.302(2) and 90.304 The office may establish a pilot program to
   92  offer optional sinkhole coverage in one or more counties or
   93  other territories of the corporation for the purpose of
   94  implementing s. 627.706, as amended by s. 30, chapter 2007-1,
   95  Laws of Florida. Under the pilot program, the corporation is not
   96  required to issue a notice of nonrenewal to exclude sinkhole
   97  coverage upon the renewal of existing policies, but may exclude
   98  such coverage using a notice of coverage change.
   99  
  100  ================= T I T L E  A M E N D M E N T ================
  101         And the title is amended as follows:
  102         Delete line 2
  103  and insert:
  104         An act relating to insurance coverage; amending s.
  105         627.351, F.S.; prohibiting Citizen’s Property
  106         Insurance Corporation from denying sinkhole coverage
  107         for certain reasons; requiring the corporation to
  108         submit an annual report to the Office of Insurance
  109         Regulation and the Insurance Consumer Advocate on the
  110         number of residential sinkhole policies issued and
  111         declined; requiring the policy to include a
  112         deductible; establishing a Citizens Sinkhole Repair
  113         Program for sinkhole claims; providing program
  114         components; specifying the corporation’s liability
  115         with respect to sinkhole claims; specifying the
  116         presumed correctness of professional engineer and
  117         geologist opinions; deleting obsolete provisions;