Florida Senate - 2015                      CS for CS for SB 1094
       By the Committees on Community Affairs; and Banking and
       Insurance; and Senator Brandes
       578-02720-15                                          20151094c2
    1                        A bill to be entitled                      
    2         An act relating to the peril of flood; amending s.
    3         163.3178, F.S.; specifying requirements for the
    4         coastal management element required for a local
    5         government comprehensive plan; creating s. 472.0366,
    6         F.S.; defining terms; requiring a surveyor and mapper
    7         to complete an elevation certificate in accordance
    8         with a checklist developed by the Division of
    9         Emergency Management and to submit a copy of the
   10         elevation certificate to the division within a certain
   11         time after its completion; authorizing the redaction
   12         of certain personal information from the copy;
   13         amending s. 627.715, F.S.; authorizing flexible flood
   14         insurance; specifying coverage requirements; deleting
   15         a provision that prohibits supplemental flood
   16         insurance from including excess coverage over any
   17         other insurance covering the peril of flood; revising
   18         the information that must be prominently noted on a
   19         certain page of a flood insurance policy; requiring
   20         the Office of Insurance Regulation to require an
   21         insurer to provide appropriate credit to affected
   22         insureds if the office determines that a rate of the
   23         insurer is excessive or unfairly discriminatory;
   24         revising the notice that must be provided to and
   25         acknowledged by an applicant for flood coverage from
   26         an authorized or surplus lines insurer if the
   27         applicant’s property is receiving flood insurance
   28         under the National Flood Insurance Program; allowing
   29         an authorized insurer to request a certification from
   30         the office which indicates that a policy, contract, or
   31         endorsement issued by the insurer provides coverage
   32         for the peril of flood which equals or exceeds the
   33         flood coverage offered by the National Flood Insurance
   34         Program; specifying requirements for such
   35         certification; authorizing such insurer or its agent
   36         to reference or include the certification in specified
   37         advertising, communications, and documentation;
   38         providing that misrepresenting that a flood policy,
   39         contract, or endorsement is certified is an unfair or
   40         deceptive act; providing an effective date.
   42  Be It Enacted by the Legislature of the State of Florida:
   44         Section 1. Paragraph (f) of subsection (2) of section
   45  163.3178, Florida Statutes, is amended to read:
   46         163.3178 Coastal management.—
   47         (2) Each coastal management element required by s.
   48  163.3177(6)(g) shall be based on studies, surveys, and data; be
   49  consistent with coastal resource plans prepared and adopted
   50  pursuant to general or special law; and contain:
   51         (f) A redevelopment component that which outlines the
   52  principles that must which shall be used to eliminate
   53  inappropriate and unsafe development in the coastal areas when
   54  opportunities arise. The component must:
   55         1. Include development and redevelopment principles,
   56  strategies, and engineering solutions that reduce the flood risk
   57  in coastal areas which results from high-tide events, storm
   58  surge, flash floods, stormwater runoff, and the related impacts
   59  of sea-level rise.
   60         2. Encourage the use of best practices development and
   61  redevelopment principles, strategies, and engineering solutions
   62  that will result in the removal of coastal real property from
   63  flood zone designations established by the Federal Emergency
   64  Management Agency.
   65         3. Identify site development techniques and best practices
   66  that may reduce losses due to flooding and claims made under
   67  flood insurance policies issued in this state.
   68         4. Be consistent with, or more stringent than, the flood
   69  resistant construction requirements in the Florida Building Code
   70  and applicable flood plain management regulations set forth in
   71  44 C.F.R. part 60.
   72         Section 2. Section 472.0366, Florida Statutes, is created
   73  to read:
   74         472.0366 Elevation certificates; requirements for surveyors
   75  and mappers.—
   76         (1)As used in this section, the term:
   77         (a) “Division” means the Division of Emergency Management
   78  established within the Executive Office of the Governor under s.
   79  14.2016.
   80         (b) “Elevation certificate” means the certificate used to
   81  demonstrate the elevation of property which has been developed
   82  by the Federal Emergency Management Agency pursuant to federal
   83  floodplain management regulation and which is completed by a
   84  surveyor and mapper.
   85         (2) An elevation certificate must be completed by a
   86  surveyor and mapper in accordance with the checklist developed
   87  by the division. Within 30 days after the completion of an
   88  elevation certificate, a surveyor and mapper must submit a copy
   89  of the certificate to the division. The copy must be unaltered,
   90  except that the surveyor and mapper may redact the name of the
   91  property owner.
   92         Section 3. Section 627.715, Florida Statutes, is amended to
   93  read:
   94         627.715 Flood insurance.—An authorized insurer may issue an
   95  insurance policy, contract, or endorsement providing personal
   96  lines residential coverage for the peril of flood on any
   97  structure or the contents of personal property contained
   98  therein, subject to this section. This section does not apply to
   99  commercial lines residential or commercial lines nonresidential
  100  coverage for the peril of flood. This section also does not
  101  apply to coverage for the peril of flood that is excess coverage
  102  over any other insurance covering the peril of flood. An insurer
  103  may issue flood insurance policies, contracts, or endorsements
  104  on a standard, preferred, customized, or supplemental basis.
  105         (1)(a)1. Standard flood insurance must cover only losses
  106  from the peril of flood, as defined in paragraph (b), equivalent
  107  to that provided under a standard flood insurance policy under
  108  the National Flood Insurance Program. Standard flood insurance
  109  issued under this section must provide the same coverage,
  110  including deductibles and adjustment of losses, as that provided
  111  under a standard flood insurance policy under the National Flood
  112  Insurance Program.
  113         2. Preferred flood insurance must include the same coverage
  114  as standard flood insurance but:
  115         a. Include, within the definition of “flood,” losses from
  116  water intrusion originating from outside the structure that are
  117  not otherwise covered under the definition of “flood” provided
  118  in paragraph (b).
  119         b. Include coverage for additional living expenses.
  120         c. Require that any loss under personal property or
  121  contents coverage that is repaired or replaced be adjusted only
  122  on the basis of replacement costs up to the policy limits.
  123         3. Customized flood insurance must include coverage that is
  124  broader than the coverage provided under standard flood
  125  insurance.
  126         4. Flexible flood insurance must cover losses from the
  127  peril of flood, as defined in paragraph (b), and may also
  128  include coverage for losses from water intrusion originating
  129  from outside the structure which is not otherwise covered by the
  130  definition of flood. Flexible flood insurance must include one
  131  or more of the following provisions:
  132         a. An agreement between the insurer and the insured that
  133  the flood coverage is in a specified amount, such as coverage
  134  that is limited to the total amount of each outstanding mortgage
  135  applicable to the covered property.
  136         b. A requirement for a deductible in an amount authorized
  137  under s. 627.701, including a deductible in an amount authorized
  138  for hurricanes.
  139         c. A requirement that flood loss to a dwelling be adjusted
  140  in accordance with s. 627.7011(3) or adjusted only on the basis
  141  of the actual cash value of the property.
  142         d. A restriction limiting flood coverage to the principal
  143  building defined in the policy.
  144         e. A provision including or excluding coverage for
  145  additional living expenses.
  146         f. A provision excluding coverage for personal property or
  147  contents as to the peril of flood.
  148         5.4. Supplemental flood insurance may provide coverage
  149  designed to supplement a flood policy obtained from the National
  150  Flood Insurance Program or from an insurer issuing standard or
  151  preferred flood insurance pursuant to this section. Supplemental
  152  flood insurance may provide, but need not be limited to,
  153  coverage for jewelry, art, deductibles, and additional living
  154  expenses. Supplemental flood insurance does not include coverage
  155  for the peril of flood that is excess coverage over any other
  156  insurance covering the peril of flood.
  157         (b) “Flood” means a general and temporary condition of
  158  partial or complete inundation of two or more acres of normally
  159  dry land area or of two or more properties, at least one of
  160  which is the policyholder’s property, from:
  161         1. Overflow of inland or tidal waters;
  162         2. Unusual and rapid accumulation or runoff of surface
  163  waters from any source;
  164         3. Mudflow; or
  165         4. Collapse or subsidence of land along the shore of a lake
  166  or similar body of water as a result of erosion or undermining
  167  caused by waves or currents of water exceeding anticipated
  168  cyclical levels that result in a flood as defined in this
  169  paragraph.
  170         (2) Any limitations on Flood coverage deductibles and or
  171  policy limits pursuant to this section, including, but not
  172  limited to, deductibles, must be prominently noted on the policy
  173  declarations page or face page.
  174         (3)(a) An insurer may establish and use flood coverage
  175  rates in accordance with the rate standards provided in s.
  176  627.062.
  177         (b) For flood coverage rates filed with the office before
  178  October 1, 2019, the insurer may also establish and use such
  179  rates in accordance with the rates, rating schedules, or rating
  180  manuals filed by the insurer with the office which allow the
  181  insurer a reasonable rate of return on flood coverage written in
  182  this state. Flood coverage rates established pursuant to this
  183  paragraph are not subject to s. 627.062(2)(a) and (f). An
  184  insurer shall notify the office of any change to such rates
  185  within 30 days after the effective date of the change. The
  186  notice must include the name of the insurer and the average
  187  statewide percentage change in rates. Actuarial data with regard
  188  to such rates for flood coverage must be maintained by the
  189  insurer for 2 years after the effective date of such rate change
  190  and is subject to examination by the office. The office may
  191  require the insurer to incur the costs associated with an
  192  examination. Upon examination, the office, in accordance with
  193  generally accepted and reasonable actuarial techniques, shall
  194  consider the rate factors in s. 627.062(2)(b), (c), and (d), and
  195  the standards in s. 627.062(2)(e), to determine if the rate is
  196  excessive, inadequate, or unfairly discriminatory. If the office
  197  determines that a rate is excessive or unfairly discriminatory,
  198  the office shall require the insurer to provide appropriate
  199  credit to affected insureds.
  200         (4) A surplus lines agent may export a contract or
  201  endorsement providing flood coverage to an eligible surplus
  202  lines insurer without making a diligent effort to seek such
  203  coverage from three or more authorized insurers under s.
  204  626.916(1)(a). This subsection expires July 1, 2017.
  205         (5) In addition to any other applicable requirements, an
  206  insurer providing flood coverage in this state must:
  207         (a) Notify the office at least 30 days before writing flood
  208  insurance in this state; and
  209         (b) File a plan of operation and financial projections or
  210  revisions to such plan, as applicable, with the office.
  211         (6) Citizens Property Insurance Corporation may not provide
  212  insurance for the peril of flood.
  213         (7) The Florida Hurricane Catastrophe Fund may not provide
  214  reimbursement for losses proximately caused by the peril of
  215  flood, including losses that occur during a covered event as
  216  defined in s. 215.555(2)(b).
  217         (8) An agent must, upon receiving obtaining an application
  218  for flood coverage from an authorized or surplus lines insurer
  219  for a property receiving flood insurance under the National
  220  Flood Insurance Program, must obtain an acknowledgment signed by
  221  the applicant before placing the coverage with the authorized or
  222  surplus lines insurer. The acknowledgment must notify the
  223  applicant that, if the applicant discontinues coverage under the
  224  National Flood Insurance Program which is provided at a
  225  subsidized rate, the full risk rate for flood insurance may
  226  apply to the property if the applicant such insurance is later
  227  seeks to reinstate coverage obtained under the National Flood
  228  Insurance program.
  229         (9) With respect to the regulation of flood coverage
  230  written in this state by authorized insurers, this section
  231  supersedes any other provision in the Florida Insurance Code in
  232  the event of a conflict.
  233         (10) If federal law or rule requires a certification by a
  234  state insurance regulatory official as a condition of qualifying
  235  for private flood insurance or disaster assistance, the
  236  Commissioner of Insurance Regulation may provide the
  237  certification, and such certification is not subject to review
  238  under chapter 120.
  239         (11)(a) An authorized insurer offering flood insurance may
  240  request the office to certify that a policy, contract, or
  241  endorsement provides coverage for the peril of flood which
  242  equals or exceeds the flood coverage offered by the National
  243  Flood Insurance Program. To be eligible for certification, such
  244  policy, contract, or endorsement must contain a provision
  245  stating that it meets the private flood insurance requirements
  246  specified in 42 U.S.C. s. 4012a(b) and may not contain any
  247  provision that is not in compliance with 42 U.S.C. s. 4012a(b).
  248         (b) The authorized insurer or its agent may reference or
  249  include a certification under paragraph (a) in advertising or
  250  communications with an agent, a lending institution, an insured,
  251  or a potential insured only for a policy, contract, or
  252  endorsement that is certified under this subsection. The
  253  authorized insurer may include a statement that notifies an
  254  insured of the certification on the declarations page or other
  255  policy documentation related to flood coverage certified under
  256  this subsection.
  257         (c) An insurer or agent who knowingly misrepresents that a
  258  flood policy, contract, or endorsement is certified under this
  259  subsection commits an unfair or deceptive act under s. 626.9541.
  260         Section 4. This act shall take effect July 1, 2015.