| 1 | Representative(s) Gelber offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove line(s) 3082-3144 and insert: |
| 5 | Section 16. Section 627.706, Florida Statutes, is amended |
| 6 | to read: |
| 7 | 627.706 Sinkhole insurance; definitions.-- |
| 8 | (1) Every insurer authorized to transact property |
| 9 | insurance in this state shall provide coverage for a |
| 10 | catastrophic ground cover collapse and, unless the conditions of |
| 11 | subsection (2) are met, shall provide make available coverage |
| 12 | for insurable sinkhole losses on any structure, including |
| 13 | contents of personal property contained therein, to the extent |
| 14 | provided in the form to which the sinkhole coverage attaches. A |
| 15 | policy for residential property insurance may include a |
| 16 | deductible amount applicable to sinkhole losses equal to 1 |
| 17 | percent, 2 percent, 5 percent, or 10 percent of the policy |
| 18 | dwelling limits, with appropriate premium discounts offered with |
| 19 | each deductible amount. |
| 20 | (2) A personal lines residential property insurance policy |
| 21 | may not exclude sinkhole coverage unless the following |
| 22 | conditions are met: |
| 23 | (a) The policyholder must personally write and provide to |
| 24 | the insurer the following statement in his or her own |
| 25 | handwriting and sign his or her name, which must also be signed |
| 26 | by every other named insured on the policy, and dated: "I do not |
| 27 | do not want the insurance on my home to pay for damage from |
| 28 | sinkhole activity. I will pay those costs. My insurance will |
| 29 | not." |
| 30 | (b) If the structure insured by the policy is subject to a |
| 31 | mortgage or lien, the policyholder must provide the insurer with |
| 32 | a written statement from the mortgageholder or lienholder |
| 33 | indicating that the mortgageholder or lienholder approves the |
| 34 | policyholder electing to exclude sinkhole coverage. |
| 35 | (c) A sinkhole exclusion subject to the requirements of |
| 36 | this subsection applies only for the term of the policy and must |
| 37 | be newly executed upon each renewal pursuant to the requirements |
| 38 | of this subsection. |
| 39 | (d) An insurer shall keep the original copy of the signed |
| 40 | statement required by this subsection and provide a copy to the |
| 41 | policyholder providing the signed statement. A signed statement |
| 42 | meeting the requirements of this subsection creates a |
| 43 | presumption that there was an informed, knowing election of |
| 44 | coverage. |
| 45 | (e) The commission shall adopt rules providing appropriate |
| 46 | alternative methods for providing the statements required by |
| 47 | this subsection for policyholders who have a handicapping or |
| 48 | disabling condition that prevents them from providing a |
| 49 | handwritten statement. |
| 50 | (3)(2) As used in ss. 627.706-627.7074, and as used in |
| 51 | connection with any policy providing coverage for a catastrophic |
| 52 | ground cover collapse or sinkhole losses: |
| 53 | (a) "Catastrophic ground cover collapse" means geological |
| 54 | activity that results in the collapse of the ground cover and |
| 55 | the insured structure being condemned and ordered to be vacated |
| 56 | by the governmental agency authorized by law to issue such an |
| 57 | order for that structures. |
| 58 | (b)(a) "Sinkhole" means a landform created by subsidence |
| 59 | of soil, sediment, or rock as underlying strata are dissolved by |
| 60 | groundwater. A sinkhole may form by collapse into subterranean |
| 61 | voids created by dissolution of limestone or dolostone or by |
| 62 | subsidence as these strata are dissolved. |
| 63 | (c)(b) "Sinkhole Loss" means structural damage to the |
| 64 | building, including the foundation, caused by sinkhole activity. |
| 65 | Contents coverage shall apply only if there is structural damage |
| 66 | to the building caused by sinkhole activity. |
| 67 | (d)(c) "Sinkhole activity" means settlement or systematic |
| 68 | weakening of the earth supporting such property only when such |
| 69 | settlement or systematic weakening results from movement or |
| 70 | raveling of soils, sediments, or rock materials into |
| 71 | subterranean voids created by the effect of water on a limestone |
| 72 | or similar rock formation. |
| 73 | (e)(d) "Professional engineer" means a person, as defined |
| 74 | in s. 471.005, who has a bachelor's degree or higher in |
| 75 | engineering with a specialty in the geotechnical engineering |
| 76 | field. A professional engineer must have geotechnical experience |
| 77 | and expertise in the identification of sinkhole activity as well |
| 78 | as other potential causes of damage to the structure. |
| 79 | (f)(e) "Professional geologist" means a person, as defined |
| 80 | by s. 492.102, who has a bachelor's degree or higher in geology |
| 81 | or related earth science with expertise in the geology of |
| 82 | Florida. A professional geologist must have geological |
| 83 | experience and expertise in the identification of sinkhole |
| 84 | activity as well as other potential geologic causes of damage to |
| 85 | the structure. |
| 86 | (4)(3) Every insurer authorized to transact property |
| 87 | insurance in this state shall make a proper filing with the |
| 88 | office for the purpose of extending the appropriate forms of |
| 89 | property insurance to include coverage for catastrophic ground |
| 90 | cover collapse or for sinkhole losses. |
| 91 |
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| 92 |
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| 93 | ======= T I T L E A M E N D M E N T ======= |
| 94 | Remove line(s) 80-83 and insert: |
| 95 | providing legislative intent; amending s. 627.706, F.S.; |
| 96 | revising sinkhole insurance provisions to include coverage for |
| 97 | losses due to catastrophic ground cover collapse; prohibiting |
| 98 | insurers from excluding sinkhole coverage under certain |
| 99 | circumstances; specifying insurer and policyholder requirements |
| 100 | for excluding sinkhole coverage; authorizing certain |
| 101 | deductibles; revising definitions; |