CS for CS for CS for SB 1094 First Engrossed
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 an appropriate credit or refund to
22 affected insureds if the office determines that a rate
23 of the insurer is excessive or unfairly
24 discriminatory; revising the notice that must be
25 provided to and acknowledged by an applicant for flood
26 coverage from an authorized or surplus lines insurer
27 if the applicant’s property is receiving flood
28 insurance under the National Flood Insurance Program;
29 allowing an authorized insurer to request a
30 certification from the office which indicates that a
31 policy, contract, or endorsement issued by the insurer
32 provides coverage for the peril of flood which equals
33 or exceeds the flood coverage offered by the National
34 Flood Insurance Program; specifying requirements for
35 such certification; authorizing such insurer or its
36 agent to reference or include the certification in
37 specified advertising, communications, and
38 documentation; providing that misrepresenting that a
39 flood policy, contract, or endorsement is certified is
40 an unfair or deceptive act; providing an effective
43 Be It Enacted by the Legislature of the State of Florida:
45 Section 1. Paragraph (f) of subsection (2) of section
46 163.3178, Florida Statutes, is amended to read:
47 163.3178 Coastal management.—
48 (2) Each coastal management element required by s.
49 163.3177(6)(g) shall be based on studies, surveys, and data; be
50 consistent with coastal resource plans prepared and adopted
51 pursuant to general or special law; and contain:
52 (f) A redevelopment component that
which outlines the
53 principles that must which shall be used to eliminate
54 inappropriate and unsafe development in the coastal areas when
55 opportunities arise. The component must:
56 1. Include development and redevelopment principles,
57 strategies, and engineering solutions that reduce the flood risk
58 in coastal areas which results from high-tide events, storm
59 surge, flash floods, stormwater runoff, and the related impacts
60 of sea-level rise.
61 2. Encourage the use of best practices development and
62 redevelopment principles, strategies, and engineering solutions
63 that will result in the removal of coastal real property from
64 flood zone designations established by the Federal Emergency
65 Management Agency.
66 3. Identify site development techniques and best practices
67 that may reduce losses due to flooding and claims made under
68 flood insurance policies issued in this state.
69 4. Be consistent with, or more stringent than, the flood
70 resistant construction requirements in the Florida Building Code
71 and applicable flood plain management regulations set forth in
72 44 C.F.R. part 60.
73 5. Require that any construction activities seaward of the
74 coastal construction control lines established pursuant to s.
75 161.053 be consistent with chapter 161.
76 6. Encourage local governments to participate in the
77 National Flood Insurance Program Community Rating System
78 administered by the Federal Emergency Management Agency to
79 achieve flood insurance premium discounts for their residents.
80 Section 2. Section 472.0366, Florida Statutes, is created
81 to read:
82 472.0366 Elevation certificates; requirements for surveyors
83 and mappers.—
84 (1) As used in this section, the term:
85 (a) “Division” means the Division of Emergency Management
86 established within the Executive Office of the Governor under s.
88 (b) “Elevation certificate” means the certificate used to
89 demonstrate the elevation of property which has been developed
90 by the Federal Emergency Management Agency pursuant to federal
91 floodplain management regulation and which is completed by a
92 surveyor and mapper.
93 (2) An elevation certificate must be completed by a
94 surveyor and mapper in accordance with the checklist developed
95 by the division. Within 30 days after the completion of an
96 elevation certificate, a surveyor and mapper must submit a copy
97 of the certificate to the division. The copy must be unaltered,
98 except that the surveyor and mapper may redact the name of the
99 property owner.
100 Section 3. Section 627.715, Florida Statutes, is amended to
102 627.715 Flood insurance.—An authorized insurer may issue an
103 insurance policy, contract, or endorsement providing personal
104 lines residential coverage for the peril of flood on any
105 structure or the contents of personal property contained
106 therein, subject to this section. This section does not apply to
107 commercial lines residential or commercial lines nonresidential
108 coverage for the peril of flood. This section also does not
109 apply to coverage for the peril of flood that is excess coverage
110 over any other insurance covering the peril of flood. An insurer
111 may issue flood insurance policies, contracts, or endorsements
112 on a standard, preferred, customized, or supplemental basis.
113 (1)(a)1. Standard flood insurance must cover only losses
114 from the peril of flood, as defined in paragraph (b), equivalent
115 to that provided under a standard flood insurance policy under
116 the National Flood Insurance Program. Standard flood insurance
117 issued under this section must provide the same coverage,
118 including deductibles and adjustment of losses, as that provided
119 under a standard flood insurance policy under the National Flood
120 Insurance Program.
121 2. Preferred flood insurance must include the same coverage
122 as standard flood insurance but:
123 a. Include, within the definition of “flood,” losses from
124 water intrusion originating from outside the structure that are
125 not otherwise covered under the definition of “flood” provided
126 in paragraph (b).
127 b. Include coverage for additional living expenses.
128 c. Require that any loss under personal property or
129 contents coverage that is repaired or replaced be adjusted only
130 on the basis of replacement costs up to the policy limits.
131 3. Customized flood insurance must include coverage that is
132 broader than the coverage provided under standard flood
134 4. Flexible flood insurance must cover losses from the
135 peril of flood, as defined in paragraph (b), and may also
136 include coverage for losses from water intrusion originating
137 from outside the structure which is not otherwise covered by the
138 definition of flood. Flexible flood insurance must include one
139 or more of the following provisions:
140 a. An agreement between the insurer and the insured that
141 the flood coverage is in a specified amount, such as coverage
142 that is limited to the total amount of each outstanding mortgage
143 applicable to the covered property.
144 b. A requirement for a deductible in an amount authorized
145 under s. 627.701, including a deductible in an amount authorized
146 for hurricanes.
147 c. A requirement that flood loss to a dwelling be adjusted
148 in accordance with s. 627.7011(3) or adjusted only on the basis
149 of the actual cash value of the property.
150 d. A restriction limiting flood coverage to the principal
151 building defined in the policy.
152 e. A provision including or excluding coverage for
153 additional living expenses.
154 f. A provision excluding coverage for personal property or
155 contents as to the peril of flood.
156 5. 4. Supplemental flood insurance may provide coverage
157 designed to supplement a flood policy obtained from the National
158 Flood Insurance Program or from an insurer issuing standard or
159 preferred flood insurance pursuant to this section. Supplemental
160 flood insurance may provide, but need not be limited to,
161 coverage for jewelry, art, deductibles, and additional living
162 expenses. Supplemental flood insurance does not include coverage
163 for the peril of flood that is excess coverage over any other
164 insurance covering the peril of flood.
165 (b) “Flood” means a general and temporary condition of
166 partial or complete inundation of two or more acres of normally
167 dry land area or of two or more properties, at least one of
168 which is the policyholder’s property, from:
169 1. Overflow of inland or tidal waters;
170 2. Unusual and rapid accumulation or runoff of surface
171 waters from any source;
172 3. Mudflow; or
173 4. Collapse or subsidence of land along the shore of a lake
174 or similar body of water as a result of erosion or undermining
175 caused by waves or currents of water exceeding anticipated
176 cyclical levels that result in a flood as defined in this
178 (2) Any limitations on Flood coverage deductibles and or
179 policy limits pursuant to this section , including, but not
180 limited to, deductibles, must be prominently noted on the policy
181 declarations page or face page.
182 (3)(a) An insurer may establish and use flood coverage
183 rates in accordance with the rate standards provided in s.
185 (b) For flood coverage rates filed with the office before
186 October 1, 2019, the insurer may also establish and use such
187 rates in accordance with the rates, rating schedules, or rating
188 manuals filed by the insurer with the office which allow the
189 insurer a reasonable rate of return on flood coverage written in
190 this state. Flood coverage rates established pursuant to this
191 paragraph are not subject to s. 627.062(2)(a) and (f). An
192 insurer shall notify the office of any change to such rates
193 within 30 days after the effective date of the change. The
194 notice must include the name of the insurer and the average
195 statewide percentage change in rates. Actuarial data with regard
196 to such rates for flood coverage must be maintained by the
197 insurer for 2 years after the effective date of such rate change
198 and is subject to examination by the office. The office may
199 require the insurer to incur the costs associated with an
200 examination. Upon examination, the office, in accordance with
201 generally accepted and reasonable actuarial techniques, shall
202 consider the rate factors in s. 627.062(2)(b), (c), and (d), and
203 the standards in s. 627.062(2)(e), to determine if the rate is
204 excessive, inadequate, or unfairly discriminatory. If the office
205 determines that a rate is excessive or unfairly discriminatory,
206 the office shall require the insurer to provide appropriate
207 credit to affected insureds or an appropriate refund to affected
208 insureds who no longer receive coverage from the insurer.
209 (4) A surplus lines agent may export a contract or
210 endorsement providing flood coverage to an eligible surplus
211 lines insurer without making a diligent effort to seek such
212 coverage from three or more authorized insurers under s.
213 626.916(1)(a). This subsection expires July 1, 2017.
214 (5) In addition to any other applicable requirements, an
215 insurer providing flood coverage in this state must:
216 (a) Notify the office at least 30 days before writing flood
217 insurance in this state; and
218 (b) File a plan of operation and financial projections or
219 revisions to such plan, as applicable, with the office.
220 (6) Citizens Property Insurance Corporation may not provide
221 insurance for the peril of flood.
222 (7) The Florida Hurricane Catastrophe Fund may not provide
223 reimbursement for losses proximately caused by the peril of
224 flood, including losses that occur during a covered event as
225 defined in s. 215.555(2)(b).
226 (8) An agent must, upon receiving obtaining an application
227 for flood coverage from an authorized or surplus lines insurer
228 for a property receiving flood insurance under the National
229 Flood Insurance Program, must obtain an acknowledgment signed by
230 the applicant before placing the coverage with the authorized or
231 surplus lines insurer. The acknowledgment must notify the
232 applicant that, if the applicant discontinues coverage under the
233 National Flood Insurance Program which is provided at a
234 subsidized rate, the full risk rate for flood insurance may
235 apply to the property if the applicant such insurance is later
236 seeks to reinstate coverage obtained under the National Flood
237 Insurance program.
238 (9) With respect to the regulation of flood coverage
239 written in this state by authorized insurers, this section
240 supersedes any other provision in the Florida Insurance Code in
241 the event of a conflict.
242 (10) If federal law or rule requires a certification by a
243 state insurance regulatory official as a condition of qualifying
244 for private flood insurance or disaster assistance, the
245 Commissioner of Insurance Regulation may provide the
246 certification, and such certification is not subject to review
247 under chapter 120.
248 (11)(a) An authorized insurer offering flood insurance may
249 request the office to certify that a policy, contract, or
250 endorsement provides coverage for the peril of flood which
251 equals or exceeds the flood coverage offered by the National
252 Flood Insurance Program. To be eligible for certification, such
253 policy, contract, or endorsement must contain a provision
254 stating that it meets the private flood insurance requirements
255 specified in 42 U.S.C. s. 4012a(b) and may not contain any
256 provision that is not in compliance with 42 U.S.C. s. 4012a(b).
257 (b) The authorized insurer or its agent may reference or
258 include a certification under paragraph (a) in advertising or
259 communications with an agent, a lending institution, an insured,
260 or a potential insured only for a policy, contract, or
261 endorsement that is certified under this subsection. The
262 authorized insurer may include a statement that notifies an
263 insured of the certification on the declarations page or other
264 policy documentation related to flood coverage certified under
265 this subsection.
266 (c) An insurer or agent who knowingly misrepresents that a
267 flood policy, contract, or endorsement is certified under this
268 subsection commits an unfair or deceptive act under s. 626.9541.
269 Section 4. This act shall take effect July 1, 2015.