Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 408
                                Barcode 249528                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/22/2011           .                                

       The Committee on Banking and Insurance (Richter) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete lines 2518 - 2538
    4  and insert:
    5         (a) For a dwelling, the insurer must initially pay at least
    6  the actual cash value of the insured loss, less any applicable
    7  deductible. To receive payment from an insurer for replacement
    8  costs, the policyholder must enter into a contract for the
    9  performance of building and structural repairs, unless the
   10  requirement for a contract is waived by the insurer. The insurer
   11  shall pay any remaining amounts necessary to perform such
   12  repairs as work is performed and expenses are incurred. The
   13  insurer or any contractor or subcontractor may not require the
   14  policyholder to advance payment for such repairs or expenses,
   15  with the exception of incidental expenses to mitigate further
   16  damage. If a total loss of a dwelling occurs, the insurer shall
   17  pay the replacement cost coverage without reservation or
   18  holdback of any depreciation in value, pursuant to s. 627.702.
   19         (b) For personal property, the insurer may limit the
   20  initial payment to the actual cash value of the personal
   21  property to be replaced. An insurer may require an insured to
   22  provide receipts for the purchase of the property financed by
   23  the initial payment and use such receipts to make the next
   24  payment requested by the insured for the replacement of insured
   25  property, and continue this process until the insured remits all
   26  receipts up to the policy limits for replacement costs. The
   27  insurer must provide clear notice of this process in the
   28  insurance contract. The insurer may not require the policyholder
   29  to advance payment for the replaced property the insurer shall
   30  pay
   32  ================= T I T L E  A M E N D M E N T ================
   33         And the title is amended as follows:
   34         Delete lines 133 - 147
   35  and insert:
   36         627.7011, F.S.; requiring the insurer to pay the
   37         actual cash value of an insured loss for a dwelling,
   38         less any applicable deductible; requiring a
   39         policyholder to enter into a contract for the
   40         performance of building and structural repairs unless
   41         waived by the insurer; restricting insurers and
   42         contractors from requiring advance payments for
   43         repairs and expenses; authorizing an insurer to limit
   44         the initial payment for personal property to the
   45         actual cash value of the property to be replaced and
   46         to require the insured to provide receipts for
   47         purchases; requiring the insurer to provide notice of
   48         this process in the insurance contract; prohibiting an
   49         insurer from requiring the insured to advance payment;
   50         amending s.