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
   41         date.
   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.
   87  14.2016.
   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
  101  read:
  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
  133  insurance.
  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
  177  paragraph.
  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.
  184  627.062.
  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.