Florida Senate - 2015               CS for CS for CS for SB 1094
       By the Committees on Rules; Community Affairs; and Banking and
       Insurance; and Senator Brandes
       595-03442-15                                          20151094c3
    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         5. Require that any construction activities seaward of the
   73  coastal construction control lines established pursuant to s.
   74  161.053 be consistent with chapter 161.
   75         6. Encourage local governments to participate in the
   76  National Flood Insurance Program Community Rating System
   77  administered by the Federal Emergency Management Agency to
   78  achieve flood insurance premium discounts for their residents.
   79         Section 2. Section 472.0366, Florida Statutes, is created
   80  to read:
   81         472.0366 Elevation certificates; requirements for surveyors
   82  and mappers.—
   83         (1)As used in this section, the term:
   84         (a) “Division” means the Division of Emergency Management
   85  established within the Executive Office of the Governor under s.
   86  14.2016.
   87         (b) “Elevation certificate” means the certificate used to
   88  demonstrate the elevation of property which has been developed
   89  by the Federal Emergency Management Agency pursuant to federal
   90  floodplain management regulation and which is completed by a
   91  surveyor and mapper.
   92         (2) An elevation certificate must be completed by a
   93  surveyor and mapper in accordance with the checklist developed
   94  by the division. Within 30 days after the completion of an
   95  elevation certificate, a surveyor and mapper must submit a copy
   96  of the certificate to the division. The copy must be unaltered,
   97  except that the surveyor and mapper may redact the name of the
   98  property owner.
   99         Section 3. Section 627.715, Florida Statutes, is amended to
  100  read:
  101         627.715 Flood insurance.—An authorized insurer may issue an
  102  insurance policy, contract, or endorsement providing personal
  103  lines residential coverage for the peril of flood on any
  104  structure or the contents of personal property contained
  105  therein, subject to this section. This section does not apply to
  106  commercial lines residential or commercial lines nonresidential
  107  coverage for the peril of flood. This section also does not
  108  apply to coverage for the peril of flood that is excess coverage
  109  over any other insurance covering the peril of flood. An insurer
  110  may issue flood insurance policies, contracts, or endorsements
  111  on a standard, preferred, customized, or supplemental basis.
  112         (1)(a)1. Standard flood insurance must cover only losses
  113  from the peril of flood, as defined in paragraph (b), equivalent
  114  to that provided under a standard flood insurance policy under
  115  the National Flood Insurance Program. Standard flood insurance
  116  issued under this section must provide the same coverage,
  117  including deductibles and adjustment of losses, as that provided
  118  under a standard flood insurance policy under the National Flood
  119  Insurance Program.
  120         2. Preferred flood insurance must include the same coverage
  121  as standard flood insurance but:
  122         a. Include, within the definition of “flood,” losses from
  123  water intrusion originating from outside the structure that are
  124  not otherwise covered under the definition of “flood” provided
  125  in paragraph (b).
  126         b. Include coverage for additional living expenses.
  127         c. Require that any loss under personal property or
  128  contents coverage that is repaired or replaced be adjusted only
  129  on the basis of replacement costs up to the policy limits.
  130         3. Customized flood insurance must include coverage that is
  131  broader than the coverage provided under standard flood
  132  insurance.
  133         4. Flexible flood insurance must cover losses from the
  134  peril of flood, as defined in paragraph (b), and may also
  135  include coverage for losses from water intrusion originating
  136  from outside the structure which is not otherwise covered by the
  137  definition of flood. Flexible flood insurance must include one
  138  or more of the following provisions:
  139         a. An agreement between the insurer and the insured that
  140  the flood coverage is in a specified amount, such as coverage
  141  that is limited to the total amount of each outstanding mortgage
  142  applicable to the covered property.
  143         b. A requirement for a deductible in an amount authorized
  144  under s. 627.701, including a deductible in an amount authorized
  145  for hurricanes.
  146         c. A requirement that flood loss to a dwelling be adjusted
  147  in accordance with s. 627.7011(3) or adjusted only on the basis
  148  of the actual cash value of the property.
  149         d. A restriction limiting flood coverage to the principal
  150  building defined in the policy.
  151         e. A provision including or excluding coverage for
  152  additional living expenses.
  153         f. A provision excluding coverage for personal property or
  154  contents as to the peril of flood.
  155         5.4. Supplemental flood insurance may provide coverage
  156  designed to supplement a flood policy obtained from the National
  157  Flood Insurance Program or from an insurer issuing standard or
  158  preferred flood insurance pursuant to this section. Supplemental
  159  flood insurance may provide, but need not be limited to,
  160  coverage for jewelry, art, deductibles, and additional living
  161  expenses. Supplemental flood insurance does not include coverage
  162  for the peril of flood that is excess coverage over any other
  163  insurance covering the peril of flood.
  164         (b) “Flood” means a general and temporary condition of
  165  partial or complete inundation of two or more acres of normally
  166  dry land area or of two or more properties, at least one of
  167  which is the policyholder’s property, from:
  168         1. Overflow of inland or tidal waters;
  169         2. Unusual and rapid accumulation or runoff of surface
  170  waters from any source;
  171         3. Mudflow; or
  172         4. Collapse or subsidence of land along the shore of a lake
  173  or similar body of water as a result of erosion or undermining
  174  caused by waves or currents of water exceeding anticipated
  175  cyclical levels that result in a flood as defined in this
  176  paragraph.
  177         (2) Any limitations on Flood coverage deductibles and or
  178  policy limits pursuant to this section, including, but not
  179  limited to, deductibles, must be prominently noted on the policy
  180  declarations page or face page.
  181         (3)(a) An insurer may establish and use flood coverage
  182  rates in accordance with the rate standards provided in s.
  183  627.062.
  184         (b) For flood coverage rates filed with the office before
  185  October 1, 2019, the insurer may also establish and use such
  186  rates in accordance with the rates, rating schedules, or rating
  187  manuals filed by the insurer with the office which allow the
  188  insurer a reasonable rate of return on flood coverage written in
  189  this state. Flood coverage rates established pursuant to this
  190  paragraph are not subject to s. 627.062(2)(a) and (f). An
  191  insurer shall notify the office of any change to such rates
  192  within 30 days after the effective date of the change. The
  193  notice must include the name of the insurer and the average
  194  statewide percentage change in rates. Actuarial data with regard
  195  to such rates for flood coverage must be maintained by the
  196  insurer for 2 years after the effective date of such rate change
  197  and is subject to examination by the office. The office may
  198  require the insurer to incur the costs associated with an
  199  examination. Upon examination, the office, in accordance with
  200  generally accepted and reasonable actuarial techniques, shall
  201  consider the rate factors in s. 627.062(2)(b), (c), and (d), and
  202  the standards in s. 627.062(2)(e), to determine if the rate is
  203  excessive, inadequate, or unfairly discriminatory. If the office
  204  determines that a rate is excessive or unfairly discriminatory,
  205  the office shall require the insurer to provide appropriate
  206  credit to affected insureds.
  207         (4) A surplus lines agent may export a contract or
  208  endorsement providing flood coverage to an eligible surplus
  209  lines insurer without making a diligent effort to seek such
  210  coverage from three or more authorized insurers under s.
  211  626.916(1)(a). This subsection expires July 1, 2017.
  212         (5) In addition to any other applicable requirements, an
  213  insurer providing flood coverage in this state must:
  214         (a) Notify the office at least 30 days before writing flood
  215  insurance in this state; and
  216         (b) File a plan of operation and financial projections or
  217  revisions to such plan, as applicable, with the office.
  218         (6) Citizens Property Insurance Corporation may not provide
  219  insurance for the peril of flood.
  220         (7) The Florida Hurricane Catastrophe Fund may not provide
  221  reimbursement for losses proximately caused by the peril of
  222  flood, including losses that occur during a covered event as
  223  defined in s. 215.555(2)(b).
  224         (8) An agent must, upon receiving obtaining an application
  225  for flood coverage from an authorized or surplus lines insurer
  226  for a property receiving flood insurance under the National
  227  Flood Insurance Program, must obtain an acknowledgment signed by
  228  the applicant before placing the coverage with the authorized or
  229  surplus lines insurer. The acknowledgment must notify the
  230  applicant that, if the applicant discontinues coverage under the
  231  National Flood Insurance Program which is provided at a
  232  subsidized rate, the full risk rate for flood insurance may
  233  apply to the property if the applicant such insurance is later
  234  seeks to reinstate coverage obtained under the National Flood
  235  Insurance program.
  236         (9) With respect to the regulation of flood coverage
  237  written in this state by authorized insurers, this section
  238  supersedes any other provision in the Florida Insurance Code in
  239  the event of a conflict.
  240         (10) If federal law or rule requires a certification by a
  241  state insurance regulatory official as a condition of qualifying
  242  for private flood insurance or disaster assistance, the
  243  Commissioner of Insurance Regulation may provide the
  244  certification, and such certification is not subject to review
  245  under chapter 120.
  246         (11)(a) An authorized insurer offering flood insurance may
  247  request the office to certify that a policy, contract, or
  248  endorsement provides coverage for the peril of flood which
  249  equals or exceeds the flood coverage offered by the National
  250  Flood Insurance Program. To be eligible for certification, such
  251  policy, contract, or endorsement must contain a provision
  252  stating that it meets the private flood insurance requirements
  253  specified in 42 U.S.C. s. 4012a(b) and may not contain any
  254  provision that is not in compliance with 42 U.S.C. s. 4012a(b).
  255         (b) The authorized insurer or its agent may reference or
  256  include a certification under paragraph (a) in advertising or
  257  communications with an agent, a lending institution, an insured,
  258  or a potential insured only for a policy, contract, or
  259  endorsement that is certified under this subsection. The
  260  authorized insurer may include a statement that notifies an
  261  insured of the certification on the declarations page or other
  262  policy documentation related to flood coverage certified under
  263  this subsection.
  264         (c) An insurer or agent who knowingly misrepresents that a
  265  flood policy, contract, or endorsement is certified under this
  266  subsection commits an unfair or deceptive act under s. 626.9541.
  267         Section 4. This act shall take effect July 1, 2015.