Florida Senate - 2014                                    SB 1386
       
       
        
       By Senator Garcia
       
       
       
       
       
       38-00005A-14                                          20141386__
    1                        A bill to be entitled                      
    2         An act relating to insurers; amending s. 624.4055,
    3         F.S.; prohibiting certain insurers from writing
    4         private passenger automobile insurance unless they
    5         increase the number of homeowners’ policies they
    6         write; providing applicability; creating s. 627.70101,
    7         F.S.; authorizing an insurer to offer a homeowner’s
    8         insurance policy that is limited to the amount of all
    9         outstanding mortgages applicable to the covered
   10         property; providing an effective date.
   11          
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Section 624.4055, Florida Statutes, is amended
   15  to read:
   16         624.4055 Restrictions on existing private passenger
   17  automobile insurance.—
   18         (1) Effective January 1, 2008, an no insurer writing
   19  private passenger automobile insurance in this state may not
   20  continue to write such insurance if the insurer writes
   21  homeowners’ insurance in another state but not in this state,
   22  unless the insurer writing private passenger automobile
   23  insurance in this state is affiliated with an insurer writing
   24  homeowners’ insurance in this state.
   25         (2) Effective July 1, 2015, an insurer and its affiliates
   26  may not write new private passenger automobile insurance
   27  policies in this state unless the insurer and its affiliates, in
   28  the aggregate, increase the number of homeowners’ policies in
   29  force in this state by at least 10 percent over the previous
   30  calendar year. This subsection applies only if the market share
   31  of the insurer and all its affiliates, in the aggregate,
   32  providing private passenger automobile insurance in this state
   33  exceeds 200 percent of the market share of the insurer and all
   34  its affiliates, in the aggregate, providing homeowners’
   35  insurance in this state. This subsection does not apply to an
   36  insurer if the insurer and its affiliated insurers do not write
   37  homeowners’ insurance in this state or in any other state.
   38         Section 2. Section 627.70101, Florida Statutes, is created
   39  to read:
   40         627.70101 Homeowners’ policy limitations.—An insurer may
   41  offer a homeowners’ insurance policy that is limited to the
   42  amount of all outstanding mortgages applicable to the covered
   43  property. A homeowners’ insurance policy so limited may not
   44  include a provision penalizing the policyholder for not insuring
   45  the covered property up to the replacement cost. A policy that
   46  limits homeowners’ insurance coverage to an amount less than the
   47  full replacement cost of the property must include the following
   48  statement: “THIS POLICY LIMITS COVERAGE TO LESS THAN THE FULL
   49  COST OF REPLACEMENT FOR THE PROPERTY, WHICH MAY RESULT IN HIGH
   50  OUT-OF-POCKET EXPENSES TO YOU AND MAY PUT YOUR EQUITY IN THIS
   51  PROPERTY AT RISK.”
   52         Section 3. This act shall take effect July 1, 2014.