2015 Legislature     CS for CS for CS for SB 1094, 2nd Engrossed
    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 submit a copy of each elevation certificate that he
    8         or she completes to the Division of Emergency
    9         Management within a specified period beginning on a
   10         specified date; authorizing the redaction of certain
   11         personal information from the copy; amending s.
   12         627.715, F.S.; authorizing flexible flood insurance;
   13         specifying coverage requirements; deleting a provision
   14         that prohibits supplemental flood insurance from
   15         including excess coverage over any other insurance
   16         covering the peril of flood; revising the information
   17         that must be prominently noted on a certain page of a
   18         flood insurance policy; requiring the Office of
   19         Insurance Regulation to require an insurer to provide
   20         an appropriate credit or refund to affected insureds
   21         if the office determines that a rate of the insurer is
   22         excessive or unfairly discriminatory; revising the
   23         notice that must be provided to and acknowledged by an
   24         applicant for flood coverage from an authorized or
   25         surplus lines insurer if the applicant’s property is
   26         receiving flood insurance under the National Flood
   27         Insurance Program; allowing an authorized insurer to
   28         request a certification from the office which
   29         indicates that a policy, contract, or endorsement
   30         issued by the insurer provides coverage for the peril
   31         of flood which equals or exceeds the flood coverage
   32         offered by the National Flood Insurance Program;
   33         specifying requirements for such certification;
   34         authorizing such insurer or its agent to reference or
   35         include the certification in specified advertising,
   36         communications, and documentation; providing that
   37         misrepresenting that a flood policy, contract, or
   38         endorsement is certified is an unfair or deceptive
   39         act; providing an effective date.
   41  Be It Enacted by the Legislature of the State of Florida:
   43         Section 1. Paragraph (f) of subsection (2) of section
   44  163.3178, Florida Statutes, is amended to read:
   45         163.3178 Coastal management.—
   46         (2) Each coastal management element required by s.
   47  163.3177(6)(g) shall be based on studies, surveys, and data; be
   48  consistent with coastal resource plans prepared and adopted
   49  pursuant to general or special law; and contain:
   50         (f) A redevelopment component that which outlines the
   51  principles that must which shall be used to eliminate
   52  inappropriate and unsafe development in the coastal areas when
   53  opportunities arise. The component must:
   54         1. Include development and redevelopment principles,
   55  strategies, and engineering solutions that reduce the flood risk
   56  in coastal areas which results from high-tide events, storm
   57  surge, flash floods, stormwater runoff, and the related impacts
   58  of sea-level rise.
   59         2. Encourage the use of best practices development and
   60  redevelopment principles, strategies, and engineering solutions
   61  that will result in the removal of coastal real property from
   62  flood zone designations established by the Federal Emergency
   63  Management Agency.
   64         3. Identify site development techniques and best practices
   65  that may reduce losses due to flooding and claims made under
   66  flood insurance policies issued in this state.
   67         4. Be consistent with, or more stringent than, the flood
   68  resistant construction requirements in the Florida Building Code
   69  and applicable flood plain management regulations set forth in
   70  44 C.F.R. part 60.
   71         5. Require that any construction activities seaward of the
   72  coastal construction control lines established pursuant to s.
   73  161.053 be consistent with chapter 161.
   74         6. Encourage local governments to participate in the
   75  National Flood Insurance Program Community Rating System
   76  administered by the Federal Emergency Management Agency to
   77  achieve flood insurance premium discounts for their residents.
   78         Section 2. Section 472.0366, Florida Statutes, is created
   79  to read:
   80         472.0366 Elevation certificates; requirements for surveyors
   81  and mappers.—
   82         (1)As used in this section, the term:
   83         (a) “Division” means the Division of Emergency Management
   84  established within the Executive Office of the Governor under s.
   85  14.2016.
   86         (b) “Elevation certificate” means the certificate used to
   87  demonstrate the elevation of property which has been developed
   88  by the Federal Emergency Management Agency pursuant to federal
   89  floodplain management regulation and which is completed by a
   90  surveyor and mapper.
   91         (2) Beginning January 1, 2017, a surveyor and mapper shall,
   92  within 30 days after completion, submit to the division a copy
   93  of each elevation certificate that he or she completes. The copy
   94  must be unaltered, except that the surveyor and mapper may
   95  redact the name of the property owner.
   96         Section 3. Section 627.715, Florida Statutes, is amended to
   97  read:
   98         627.715 Flood insurance.—An authorized insurer may issue an
   99  insurance policy, contract, or endorsement providing personal
  100  lines residential coverage for the peril of flood on any
  101  structure or the contents of personal property contained
  102  therein, subject to this section. This section does not apply to
  103  commercial lines residential or commercial lines nonresidential
  104  coverage for the peril of flood. This section also does not
  105  apply to coverage for the peril of flood that is excess coverage
  106  over any other insurance covering the peril of flood. An insurer
  107  may issue flood insurance policies, contracts, or endorsements
  108  on a standard, preferred, customized, or supplemental basis.
  109         (1)(a)1. Standard flood insurance must cover only losses
  110  from the peril of flood, as defined in paragraph (b), equivalent
  111  to that provided under a standard flood insurance policy under
  112  the National Flood Insurance Program. Standard flood insurance
  113  issued under this section must provide the same coverage,
  114  including deductibles and adjustment of losses, as that provided
  115  under a standard flood insurance policy under the National Flood
  116  Insurance Program.
  117         2. Preferred flood insurance must include the same coverage
  118  as standard flood insurance but:
  119         a. Include, within the definition of “flood,” losses from
  120  water intrusion originating from outside the structure that are
  121  not otherwise covered under the definition of “flood” provided
  122  in paragraph (b).
  123         b. Include coverage for additional living expenses.
  124         c. Require that any loss under personal property or
  125  contents coverage that is repaired or replaced be adjusted only
  126  on the basis of replacement costs up to the policy limits.
  127         3. Customized flood insurance must include coverage that is
  128  broader than the coverage provided under standard flood
  129  insurance.
  130         4. Flexible flood insurance must cover losses from the
  131  peril of flood, as defined in paragraph (b), and may also
  132  include coverage for losses from water intrusion originating
  133  from outside the structure which is not otherwise covered by the
  134  definition of flood. Flexible flood insurance must include one
  135  or more of the following provisions:
  136         a. An agreement between the insurer and the insured that
  137  the flood coverage is in a specified amount, such as coverage
  138  that is limited to the total amount of each outstanding mortgage
  139  applicable to the covered property.
  140         b. A requirement for a deductible in an amount authorized
  141  under s. 627.701, including a deductible in an amount authorized
  142  for hurricanes.
  143         c. A requirement that flood loss to a dwelling be adjusted
  144  in accordance with s. 627.7011(3) or adjusted only on the basis
  145  of the actual cash value of the property.
  146         d. A restriction limiting flood coverage to the principal
  147  building defined in the policy.
  148         e. A provision including or excluding coverage for
  149  additional living expenses.
  150         f. A provision excluding coverage for personal property or
  151  contents as to the peril of flood.
  152         5.4. Supplemental flood insurance may provide coverage
  153  designed to supplement a flood policy obtained from the National
  154  Flood Insurance Program or from an insurer issuing standard or
  155  preferred flood insurance pursuant to this section. Supplemental
  156  flood insurance may provide, but need not be limited to,
  157  coverage for jewelry, art, deductibles, and additional living
  158  expenses. Supplemental flood insurance does not include coverage
  159  for the peril of flood that is excess coverage over any other
  160  insurance covering the peril of flood.
  161         (b) “Flood” means a general and temporary condition of
  162  partial or complete inundation of two or more acres of normally
  163  dry land area or of two or more properties, at least one of
  164  which is the policyholder’s property, from:
  165         1. Overflow of inland or tidal waters;
  166         2. Unusual and rapid accumulation or runoff of surface
  167  waters from any source;
  168         3. Mudflow; or
  169         4. Collapse or subsidence of land along the shore of a lake
  170  or similar body of water as a result of erosion or undermining
  171  caused by waves or currents of water exceeding anticipated
  172  cyclical levels that result in a flood as defined in this
  173  paragraph.
  174         (2) Any limitations on Flood coverage deductibles and or
  175  policy limits pursuant to this section, including, but not
  176  limited to, deductibles, must be prominently noted on the policy
  177  declarations page or face page.
  178         (3)(a) An insurer may establish and use flood coverage
  179  rates in accordance with the rate standards provided in s.
  180  627.062.
  181         (b) For flood coverage rates filed with the office before
  182  October 1, 2019, the insurer may also establish and use such
  183  rates in accordance with the rates, rating schedules, or rating
  184  manuals filed by the insurer with the office which allow the
  185  insurer a reasonable rate of return on flood coverage written in
  186  this state. Flood coverage rates established pursuant to this
  187  paragraph are not subject to s. 627.062(2)(a) and (f). An
  188  insurer shall notify the office of any change to such rates
  189  within 30 days after the effective date of the change. The
  190  notice must include the name of the insurer and the average
  191  statewide percentage change in rates. Actuarial data with regard
  192  to such rates for flood coverage must be maintained by the
  193  insurer for 2 years after the effective date of such rate change
  194  and is subject to examination by the office. The office may
  195  require the insurer to incur the costs associated with an
  196  examination. Upon examination, the office, in accordance with
  197  generally accepted and reasonable actuarial techniques, shall
  198  consider the rate factors in s. 627.062(2)(b), (c), and (d), and
  199  the standards in s. 627.062(2)(e), to determine if the rate is
  200  excessive, inadequate, or unfairly discriminatory. If the office
  201  determines that a rate is excessive or unfairly discriminatory,
  202  the office shall require the insurer to provide appropriate
  203  credit to affected insureds or an appropriate refund to affected
  204  insureds who no longer receive coverage from the insurer.
  205         (4) A surplus lines agent may export a contract or
  206  endorsement providing flood coverage to an eligible surplus
  207  lines insurer without making a diligent effort to seek such
  208  coverage from three or more authorized insurers under s.
  209  626.916(1)(a). This subsection expires July 1, 2017.
  210         (5) In addition to any other applicable requirements, an
  211  insurer providing flood coverage in this state must:
  212         (a) Notify the office at least 30 days before writing flood
  213  insurance in this state; and
  214         (b) File a plan of operation and financial projections or
  215  revisions to such plan, as applicable, with the office.
  216         (6) Citizens Property Insurance Corporation may not provide
  217  insurance for the peril of flood.
  218         (7) The Florida Hurricane Catastrophe Fund may not provide
  219  reimbursement for losses proximately caused by the peril of
  220  flood, including losses that occur during a covered event as
  221  defined in s. 215.555(2)(b).
  222         (8) An agent must, upon receiving obtaining an application
  223  for flood coverage from an authorized or surplus lines insurer
  224  for a property receiving flood insurance under the National
  225  Flood Insurance Program, must obtain an acknowledgment signed by
  226  the applicant before placing the coverage with the authorized or
  227  surplus lines insurer. The acknowledgment must notify the
  228  applicant that, if the applicant discontinues coverage under the
  229  National Flood Insurance Program which is provided at a
  230  subsidized rate, the full risk rate for flood insurance may
  231  apply to the property if the applicant such insurance is later
  232  seeks to reinstate coverage obtained under the National Flood
  233  Insurance program.
  234         (9) With respect to the regulation of flood coverage
  235  written in this state by authorized insurers, this section
  236  supersedes any other provision in the Florida Insurance Code in
  237  the event of a conflict.
  238         (10) If federal law or rule requires a certification by a
  239  state insurance regulatory official as a condition of qualifying
  240  for private flood insurance or disaster assistance, the
  241  Commissioner of Insurance Regulation may provide the
  242  certification, and such certification is not subject to review
  243  under chapter 120.
  244         (11)(a) An authorized insurer offering flood insurance may
  245  request the office to certify that a policy, contract, or
  246  endorsement provides coverage for the peril of flood which
  247  equals or exceeds the flood coverage offered by the National
  248  Flood Insurance Program. To be eligible for certification, such
  249  policy, contract, or endorsement must contain a provision
  250  stating that it meets the private flood insurance requirements
  251  specified in 42 U.S.C. s. 4012a(b) and may not contain any
  252  provision that is not in compliance with 42 U.S.C. s. 4012a(b).
  253         (b) The authorized insurer or its agent may reference or
  254  include a certification under paragraph (a) in advertising or
  255  communications with an agent, a lending institution, an insured,
  256  or a potential insured only for a policy, contract, or
  257  endorsement that is certified under this subsection. The
  258  authorized insurer may include a statement that notifies an
  259  insured of the certification on the declarations page or other
  260  policy documentation related to flood coverage certified under
  261  this subsection.
  262         (c) An insurer or agent who knowingly misrepresents that a
  263  flood policy, contract, or endorsement is certified under this
  264  subsection commits an unfair or deceptive act under s. 626.9541.
  265         Section 4. This act shall take effect July 1, 2015.