Florida Senate - 2015                                    SB 1094
       By Senator Brandes
       22-00259C-15                                          20151094__
    1                        A bill to be entitled                      
    2         An act relating to the peril of flood; amending s.
    3         163.3178, F.S.; specifying components that must be
    4         contained in the coastal management element required
    5         for a local government comprehensive plan; creating s.
    6         195.088, F.S.; defining terms; requiring a licensed
    7         surveyor and mapper to complete an elevation
    8         certificate in accordance with a checklist developed
    9         by the Division of Emergency Management and to submit
   10         a copy of the elevation certificate to a specified
   11         property appraiser within a certain time after its
   12         completion; authorizing the redaction of certain
   13         personal information from the copy; requiring each
   14         property appraiser to submit the copies of elevation
   15         certificates to the division on a schedule established
   16         by the division; amending s. 627.715, F.S.; revising
   17         the required coverage for customized flood insurance;
   18         specifying how such coverage may differ from standard
   19         and preferred flood insurance; deleting a provision
   20         that prohibits supplemental flood insurance from
   21         including excess coverage over any other insurance
   22         covering the peril of flood; revising the information
   23         that must be prominently noted on a certain page of a
   24         flood insurance policy; requiring an agent to offer a
   25         flood insurance quote when quoting an insurance policy
   26         that will cover a residential structure located within
   27         a specified area; requiring the agent to maintain a
   28         record of an insured’s declination of flood insurance
   29         coverage for a specified period of time; revising the
   30         notice that must be provided to and acknowledged by an
   31         applicant for flood coverage from an authorized or
   32         surplus lines insurer if the applicant’s property is
   33         receiving flood insurance under the National Flood
   34         Insurance Program; allowing an authorized insurer to
   35         request a certification from the Office of Insurance
   36         Regulation which indicates that a policy, contract, or
   37         endorsement issued by the insurer provides coverage
   38         for the peril of flood which equals or exceeds the
   39         flood coverage offered by the National Flood Insurance
   40         Program; authorizing such insurer or its agent to
   41         reference or include the certification in specified
   42         advertising, communications, and documentation;
   43         providing an effective date.
   45  Be It Enacted by the Legislature of the State of Florida:
   47         Section 1. Paragraph (f) of subsection (2) of section
   48  163.3178, Florida Statutes, is amended to read:
   49         163.3178 Coastal management.—
   50         (2) Each coastal management element required by s.
   51  163.3177(6)(g) shall be based on studies, surveys, and data; be
   52  consistent with coastal resource plans prepared and adopted
   53  pursuant to general or special law; and contain:
   54         (f) A redevelopment component that which outlines the
   55  principles that must which shall be used to eliminate
   56  inappropriate and unsafe development in the coastal areas when
   57  opportunities arise. The component must:
   58         1. Include development and redevelopment principles,
   59  strategies, and engineering solutions that reduce the flood risk
   60  in coastal areas which results from high-tide events, storm
   61  surge, flash floods, stormwater runoff, and the related impacts
   62  of sea-level rise.
   63         2. Encourage the use of best practices development and
   64  redevelopment principles, strategies, and engineering solutions
   65  that will result in the removal of coastal real property from
   66  flood zone designations established by the Federal Emergency
   67  Management Agency.
   68         3. Identify site development techniques and best practices
   69  that may reduce losses due to flooding and claims made under
   70  flood insurance policies issued in this state.
   71         Section 2. Section 195.088, Florida Statutes, is created to
   72  read:
   73         195.088 Property appraisers to submit elevation
   74  certificates to the Division of Emergency Management.—
   75         (1)As used in this section, the term:
   76         (a) “Division” means the Division of Emergency Management
   77  established within the Executive Office of the Governor under s.
   78  14.2016.
   79         (b) “Elevation certificate” means the certificate used to
   80  demonstrate the elevation of property which has been developed
   81  by the Federal Emergency Management Agency pursuant to federal
   82  floodplain management regulation or which is completed by a
   83  licensed surveyor and mapper.
   84         (c) “Licensed surveyor and mapper” has the same meaning as
   85  provided in s. 472.005 for “surveyor and mapper.”
   86         (2) An elevation certificate must be completed by a
   87  licensed surveyor and mapper in accordance with the checklist
   88  developed by the division. Within 30 days after the completion
   89  of an elevation certificate, a licensed surveyor and mapper must
   90  submit a copy of the certificate to the property appraiser of
   91  the county in which the property that was surveyed or mapped is
   92  located. The copy must be unaltered, except that the licensed
   93  surveyor and mapper may redact the name of the property owner.
   94         (3) Each property appraiser shall submit the copies
   95  received under subsection (2) to the division on a regular
   96  schedule established by the division.
   97         Section 3. Section 627.715, Florida Statutes, is amended to
   98  read:
   99         627.715 Flood insurance.—An authorized insurer may issue an
  100  insurance policy, contract, or endorsement providing personal
  101  lines residential coverage for the peril of flood on any
  102  structure or the contents of personal property contained
  103  therein, subject to this section. This section does not apply to
  104  commercial lines residential or commercial lines nonresidential
  105  coverage for the peril of flood. This section also does not
  106  apply to coverage for the peril of flood that is excess coverage
  107  over any other insurance covering the peril of flood. An insurer
  108  may issue flood insurance policies, contracts, or endorsements
  109  on a standard, preferred, customized, or supplemental basis.
  110         (1)(a)1. Standard flood insurance must cover only losses
  111  from the peril of flood, as defined in paragraph (b), equivalent
  112  to that provided under a standard flood insurance policy under
  113  the National Flood Insurance Program. Standard flood insurance
  114  issued under this section must provide the same coverage,
  115  including deductibles and adjustment of losses, as that provided
  116  under a standard flood insurance policy under the National Flood
  117  Insurance Program.
  118         2. Preferred flood insurance must include the same coverage
  119  as standard flood insurance but:
  120         a. Include, within the definition of “flood,” losses from
  121  water intrusion originating from outside the structure that are
  122  not otherwise covered under the definition of “flood” provided
  123  in paragraph (b).
  124         b. Include coverage for additional living expenses.
  125         c. Require that any loss under personal property or
  126  contents coverage that is repaired or replaced be adjusted only
  127  on the basis of replacement costs up to the policy limits.
  128         3. Customized flood insurance must provide include coverage
  129  for the peril of flood, and may differ from standard and
  130  preferred that is broader than the coverage provided under
  131  standard flood insurance by:
  132         a. Including coverage that is broader than the coverage
  133  provided under standard flood insurance;
  134         b. Being in an amount agreed upon by the insurer and
  135  insured, such as coverage that is limited to the total amount of
  136  each outstanding mortgage applicable to the covered property, if
  137  such coverage does not include a provision penalizing the
  138  policyholder for not insuring the covered property up to the
  139  replacement cost;
  140         c. Including a deductible as authorized in s. 627.701;
  141         d. Requiring that a loss to a dwelling be adjusted in
  142  accordance with s. 627.7011(3) or adjusted only on the basis of
  143  the actual cash value of the property;
  144         e. Restricting flood coverage to the principal building, as
  145  defined in the applicable policy;
  146         f. Including or excluding coverage for additional living
  147  expenses; and
  148         g. Excluding coverage, as to the peril of flood, for
  149  personal property or contents.
  150         4. Supplemental flood insurance may provide coverage
  151  designed to supplement a flood policy obtained from the National
  152  Flood Insurance Program or from an insurer issuing standard or
  153  preferred flood insurance pursuant to this section. Supplemental
  154  flood insurance may provide, but need not be limited to,
  155  coverage for jewelry, art, deductibles, and additional living
  156  expenses. Supplemental flood insurance does not include coverage
  157  for the peril of flood that is excess coverage over any other
  158  insurance covering the peril of flood.
  159         (b) “Flood” means a general and temporary condition of
  160  partial or complete inundation of two or more acres of normally
  161  dry land area or of two or more properties, at least one of
  162  which is the policyholder’s property, from:
  163         1. Overflow of inland or tidal waters;
  164         2. Unusual and rapid accumulation or runoff of surface
  165  waters from any source;
  166         3. Mudflow; or
  167         4. Collapse or subsidence of land along the shore of a lake
  168  or similar body of water as a result of erosion or undermining
  169  caused by waves or currents of water exceeding anticipated
  170  cyclical levels that result in a flood as defined in this
  171  paragraph.
  172         (2) Any limitations on Flood coverage deductibles and or
  173  policy limits pursuant to this section, including, but not
  174  limited to, deductibles, must be prominently noted on the policy
  175  declarations page or face page.
  176         (3)(a) An insurer may establish and use flood coverage
  177  rates in accordance with the rate standards provided in s.
  178  627.062.
  179         (b) For flood coverage rates filed with the office before
  180  October 1, 2019, the insurer may also establish and use such
  181  rates in accordance with the rates, rating schedules, or rating
  182  manuals filed by the insurer with the office which allow the
  183  insurer a reasonable rate of return on flood coverage written in
  184  this state. Flood coverage rates established pursuant to this
  185  paragraph are not subject to s. 627.062(2)(a) and (f). An
  186  insurer shall notify the office of any change to such rates
  187  within 30 days after the effective date of the change. The
  188  notice must include the name of the insurer and the average
  189  statewide percentage change in rates. Actuarial data with regard
  190  to such rates for flood coverage must be maintained by the
  191  insurer for 2 years after the effective date of such rate change
  192  and is subject to examination by the office. The office may
  193  require the insurer to incur the costs associated with an
  194  examination. Upon examination, the office, in accordance with
  195  generally accepted and reasonable actuarial techniques, shall
  196  consider the rate factors in s. 627.062(2)(b), (c), and (d), and
  197  the standards in s. 627.062(2)(e), to determine if the rate is
  198  excessive, inadequate, or unfairly discriminatory.
  199         (4) A surplus lines agent may export a contract or
  200  endorsement providing flood coverage to an eligible surplus
  201  lines insurer without making a diligent effort to seek such
  202  coverage from three or more authorized insurers under s.
  203  626.916(1)(a). This subsection expires July 1, 2017.
  204         (5) In addition to any other applicable requirements, an
  205  insurer providing flood coverage in this state must:
  206         (a) Notify the office at least 30 days before writing flood
  207  insurance in this state; and
  208         (b) File a plan of operation and financial projections or
  209  revisions to such plan, as applicable, with the office.
  210         (6) Citizens Property Insurance Corporation may not provide
  211  insurance for the peril of flood.
  212         (7) The Florida Hurricane Catastrophe Fund may not provide
  213  reimbursement for losses proximately caused by the peril of
  214  flood, including losses that occur during a covered event as
  215  defined in s. 215.555(2)(b).
  216         (8) An agent must:
  217         (a) Offer a flood insurance quote when quoting an insurance
  218  policy that will cover a residential structure located within a
  219  Special Flood Hazard Area designated by the Federal Emergency
  220  Management Agency. If the insured declines to obtain flood
  221  insurance coverage, the agent must maintain a record of that
  222  declination for 36 months.
  223         (b) Upon receiving obtaining an application for flood
  224  coverage from an authorized or surplus lines insurer for a
  225  property receiving flood insurance under the National Flood
  226  Insurance Program, must obtain an acknowledgment signed by the
  227  applicant before placing the coverage with the authorized or
  228  surplus lines insurer. The acknowledgment must notify the
  229  applicant that, if the applicant discontinues coverage under the
  230  National Flood Insurance Program which is provided at a
  231  subsidized rate, the full risk rate for flood insurance may
  232  apply to the property if the applicant such insurance is later
  233  seeks to reinstate coverage obtained under the National Flood
  234  Insurance program.
  235         (9) With respect to the regulation of flood coverage
  236  written in this state by authorized insurers, this section
  237  supersedes any other provision in the Florida Insurance Code in
  238  the event of a conflict.
  239         (10) If federal law or rule requires a certification by a
  240  state insurance regulatory official as a condition of qualifying
  241  for private flood insurance or disaster assistance, the
  242  Commissioner of Insurance Regulation may provide the
  243  certification, and such certification is not subject to review
  244  under chapter 120.
  245         (11) An authorized insurer offering flood insurance in this
  246  state may request a certification by the office which indicates
  247  that a policy, contract, or endorsement issued by the insurer
  248  under this section provides coverage for the peril of flood
  249  which equals or exceeds the flood coverage offered by the
  250  National Flood Insurance Program. The authorized insurer or its
  251  agent may reference or include the certification in advertising
  252  and communications with an agent, a lending institution, an
  253  insured, and a potential insured. The authorized insurer may
  254  include a statement that notifies an insured of the
  255  certification on the declarations page or other policy
  256  documentation related to flood coverage.
  257         Section 4. This act shall take effect July 1, 2015.