Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 826
                                Barcode 233862                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  01/26/2012           .                                

       The Committee on Banking and Insurance (Bennett) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete lines 12 - 18
    4  and insert:
    5         627.7832Claims payment.—
    6         (1) A title insurer has the right to cure each claim made.
    7  However, after 90 days without a cure the insurer must tender
    8  payment of full policy limits to the insured or pay up to an
    9  additional 25 percent above the initial amount insured to
   10  reimburse the insured for the payment of any attorney fees,
   11  moving expenses, property taxes, architect fees, engineering
   12  fees, permitting fees, or mortgage interest until the cure is
   13  finalized.
   14         (2) The additional 25 percent applies only if the insurer’s
   15  failure to establish title directly impacts the payments listed
   16  in subsection (1).
   17         (3) If a complete loss of title occurs, full policy limits
   18  must be paid regardless of market values.
   20  This section does not apply to additional policy limits issued
   21  pursuant to s. 627.7844.
   22         Section 2. Section 627.7844, Florida Statutes, is created
   23  to read:
   24         627.7844Supplemental coverage.—
   25         (1) If the current owner of real property borrows money
   26  secured by an interest in such real property and a loan title
   27  insurance policy is issued at original title insurance rates
   28  established pursuant to s. 627.782, less any agreed rebates in
   29  connection therewith, the title agency, title insurer, or
   30  attorney-agent providing the loan title insurance policy must
   31  simultaneously issue an owner’s title insurance policy in the
   32  amount of the loan title insurance policy, or such greater
   33  amount as may be requested by the property owner.
   34         (2)(a) If the property owner provides a copy of one or more
   35  owner’s title insurance policies currently insuring the owner’s
   36  interest in the real property, the coverage of the new owner’s
   37  policy to be issued shall be supplemental to the existing owners
   38  policy, and the policy limits of the new owner’s policy must be
   39  fully available if the aggregate insured losses suffered by the
   40  insured exceed the amount insured collectively by the prior
   41  policy. Actual payment or recovery from the prior insurer is not
   42  a condition precedent for recovery under the new owner’s policy.
   43         (b) This supplemental coverage may be accomplished through
   44  an endorsement of the existing owner’s policy or the issuance of
   45  a new owner’s policy containing language establishing coverage
   46  as being supplemental to the prior policies.
   47         (c) The new owner’s and loan policies shall reflect policy
   48  exceptions and limitations based on the current state of title
   49  to the property, and may include exceptions that did not appear
   50  in the prior owner’s policy.
   51         (3) The premium for the simultaneous issuance of the new
   52  owner’s policy must be the minimum simultaneous issue rate
   53  established pursuant to s. 627.782.
   54         (4) The owner of the real property shall waive in writing
   55  the right to purchase any additional owner’s coverage.
   56         Section 3. Subsection (1) of section 627.7845, Florida
   57  Statutes, is amended to read:
   58         627.7845 Determination of insurability required;
   59  preservation of evidence of title search and examination.—
   60         (1) A title insurer may not issue a title insurance
   61  commitment, endorsement, or title insurance policy until the
   62  title insurer has caused to be made a determination of
   63  insurability based upon the evaluation of a reasonable title
   64  search beginning with a root of title, as defined in s.
   65  712.01(2) or a search of the records of a Uniform Commercial
   66  Code filing office, as applicable, has examined such other
   67  information as may be necessary, and has caused to be made a
   68  determination of insurability of title or the existence,
   69  attachments, perfection, and priority of a Uniform Commercial
   70  Code security interest, including endorsement coverages, in
   71  accordance with sound underwriting practices.
   73  ================= T I T L E  A M E N D M E N T ================
   74         And the title is amended as follows:
   75         Delete lines 4 - 6
   76  and insert:
   77         a title insurer must pay the claim or pay an
   78         additional percentage above the initial amount insured
   79         to reimburse the policyholder for certain expenses
   80         until the claim is cured; providing conditions for
   81         certain payments; providing an exception for
   82         additional policy limits; creating s. 627.7844, F.S.;
   83         providing conditions and amounts for the simultaneous
   84         issue of an owner’s title insurance policy in
   85         additional to the loan title insurance policy;
   86         providing criteria for the supplemental coverage;
   87         establishing the premium for such coverage and
   88         providing for a waiver of coverage; amending s.
   89         627.7845, F.S.; specifying that a title insurer’s
   90         determination of insurability must be based on the
   91         evaluation of a reasonable title search beginning with
   92         a root of title; providing an effective date.