Bill Text: FL S0260 | 2010 | Regular Session | Introduced

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Bill Title: Title Insurance [CPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Banking and Insurance [S0260 Detail]

Download: Florida-2010-S0260-Introduced.html

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Florida Senate - 2010                                     SB 260 
 
By Senator Bennett 
21-00262-10                                            2010260__ 
1                        A bill to be entitled 
2         An act relating to title insurance; creating s. 
3         626.8422, F.S.; authorizing a title insurance agent or 
4         agency to charge a reasonable fee for certain 
5         services; providing that such charges are not part of 
6         the rate charged by the title insurer; requiring that 
7         certain information regarding each charge be filed 
8         with the Office of Insurance Regulation; requiring 
9         that the office publish such information by specified 
10         means; prohibiting charges for certain services from 
11         being set below the cost of providing such services; 
12         amending s. 626.9541, F.S.; deleting clarifying 
13         provisions related to the payment of certain portions 
14         of premium; amending s. 627.7711, F.S.; expanding the 
15         definition of “premium” to include endorsements, 
16         commitments, or other contracts; providing additional 
17         exceptions to the scope of the term “premium”; 
18         providing a method of calculation of premium; creating 
19         s. 627.7712, F.S.; authorizing a title insurance agent 
20         or agency to charge a reasonable fee for certain 
21         services; providing that such charges are not part of 
22         the rate charged by the title insurer; requiring that 
23         certain information regarding each charge be filed 
24         with the office; requiring that the office publish 
25         such information by specified means; prohibiting 
26         charges for certain services from being set below the 
27         cost of providing such services; amending s. 627.780, 
28         F.S.; prohibiting a person from knowingly quoting, 
29         charging, accepting, collecting, or receiving a 
30         premium for title insurance other than the premium 
31         approved by the office; amending s. 627.782, F.S.; 
32         providing for the approval of rates; requiring that 
33         each title insurer make an annual filing with the 
34         office on or before a specified deadline demonstrating 
35         that the rate for such insurance is actuarially sound; 
36         prohibiting rates for such filing from including 
37         certain charges, commission, or compensation; 
38         providing methods by which filing requirements may be 
39         satisfied; requiring that the office issue a notice of 
40         intent to approve or disapprove the filing on or 
41         before a specified deadline; providing that such 
42         notice constitutes agency action; providing that 
43         requests for supporting information, mathematical or 
44         mechanical corrections, or notification of the 
45         office’s preliminary findings do not toll the deadline 
46         date; providing that a rate is deemed approved if the 
47         office does not issue the required notice within the 
48         specified period; requiring that the office review a 
49         rate filing to determine if the rate is excessive, 
50         inadequate, or unfairly discriminatory; requiring that 
51         the office consider certain factors and information 
52         when making such review; providing standards upon 
53         which a rate may be found excessive, inadequate, or 
54         unfairly discriminatory; authorizing the office to 
55         require an insurer to provide, at the insurer’s 
56         expense, any information necessary to evaluate the 
57         condition of the company and reasonableness of the 
58         filing; authorizing the office to review certain 
59         information at any time; requiring that the office 
60         initiate proceedings to disapprove a rate and notify 
61         the insurer if the office finds on a preliminary basis 
62         that a rate is excessive, inadequate, or unfairly 
63         discriminatory; requiring that an insurer, upon 
64         receipt of such notice from the office, provide 
65         certain information within a specified period; 
66         requiring that the office issue a notice of intent to 
67         approve or a notice of intent to disapprove within a 
68         specified period; providing that an insurer has the 
69         burden of proof to show by a preponderance of the 
70         evidence that a rate is not excessive, inadequate, or 
71         unfairly discriminatory; prohibiting an insurer from 
72         altering a rate for a specified period after its 
73         receipt of notice from the office that a rate may be 
74         excessive, inadequate, or unfairly discriminatory; 
75         providing exceptions; authorizing the office to 
76         disapprove without notice any rate increase filed by 
77         an insurer during the prohibited period; requiring 
78         that certain individuals affiliated with a title 
79         insurer certify specified information on a form 
80         approved by the Financial Services Commission when 
81         submitting a rate filing; providing that it is a 
82         violation of state law for a certifying officer or 
83         actuary to knowingly make a false certification; 
84         providing that failure to provide such certification 
85         results in a filing being disapproved without 
86         prejudice; authorizing an insurer to refile a rate 
87         filing under such circumstances; defining the term 
88         “actuary”; authorizing an insurer to apply for an 
89         extension of time to make a filing under certain 
90         circumstances; authorizing the office to exempt a 
91         company from filing rates or rate certifications under 
92         certain circumstances; authorizing the office to order 
93         insurers not meeting certain filing requirements to 
94         discontinue the issuance of policies for which the 
95         required filing was not made until such time that the 
96         office determines that the required filing has been 
97         submitted properly; providing for application of an 
98         approved rate; authorizing the commission to require 
99         by rule that licensees submit certain information 
100         determined by the office as necessary to analyze 
101         premium rates, retention rates, or the condition of 
102         the title insurance industry; authorizing the 
103         commission to adopt rules; amending s. 627.7845, F.S.; 
104         providing that an insurer is liable to the insured for 
105         damages up to three times the amount of coverage under 
106         certain conditions; repealing s. 627.783, F.S., 
107         relating to rate deviation; providing for application 
108         of the act; providing an effective date. 
109 
110  Be It Enacted by the Legislature of the State of Florida: 
111 
112         Section 1. Section 626.8422, Florida Statutes, is created 
113  to read: 
114         626.8422 Charges for services.— 
115         (1) A title insurance agent or agency may charge a 
116  reasonable fee for primary title services, title searches, and 
117  closing services, or the components thereof, actually performed 
118  by the agent or agency. Any charges under this section do not 
119  constitute a part of the rate charged by the title insurer for 
120  the issuance of the title insurance form, policy, commitment, or 
121  contract issued in connection therewith. The agent or agency 
122  must file with the office the amount of each such charge or 
123  change to such charge, including the components thereof, 
124  together with related information as required by the office on a 
125  form adopted by the office. The office shall publish the 
126  information collected from agents or agencies pursuant to this 
127  section via the Internet or otherwise as the office deems 
128  sufficient to apprise the public of costs for these services 
129  among the various agents or agencies. 
130         (2) Charges for the services or components of services 
131  described in subsection (1) which are set by the agent or agency 
132  may not be set below the cost of providing such services. 
133         Section 2. Paragraph (h) of subsection (1) of section 
134  626.9541, Florida Statutes, is amended to read: 
135         626.9541 Unfair methods of competition and unfair or 
136  deceptive acts or practices defined.— 
137         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 
138  ACTS.—The following are defined as unfair methods of competition 
139  and unfair or deceptive acts or practices: 
140         (h) Unlawful rebates.— 
141         1. Except as otherwise expressly provided by law, or in an 
142  applicable filing with the office, knowingly: 
143         a. Permitting, or offering to make, or making, any contract 
144  or agreement as to such contract other than as plainly expressed 
145  in the insurance contract issued thereon; 
146         b. Paying, allowing, or giving, or offering to pay, allow, 
147  or give, directly or indirectly, as inducement to such insurance 
148  contract, any unlawful rebate of premiums payable on the 
149  contract, any special favor or advantage in the dividends or 
150  other benefits thereon, or any valuable consideration or 
151  inducement whatever not specified in the contract; 
152         c. Giving, selling, or purchasing, or offering to give, 
153  sell, or purchase, as inducement to such insurance contract or 
154  in connection therewith, any stocks, bonds, or other securities 
155  of any insurance company or other corporation, association, or 
156  partnership, or any dividends or profits accrued thereon, or 
157  anything of value whatsoever not specified in the insurance 
158  contract. 
159         2. Nothing in paragraph (g) or subparagraph 1. of this 
160  paragraph shall be construed as including within the definition 
161  of discrimination or unlawful rebates: 
162         a. In the case of any contract of life insurance or life 
163  annuity, paying bonuses to all policyholders or otherwise 
164  abating their premiums in whole or in part out of surplus 
165  accumulated from nonparticipating insurance; provided that any 
166  such bonuses or abatement of premiums is fair and equitable to 
167  all policyholders and for the best interests of the company and 
168  its policyholders. 
169         b. In the case of life insurance policies issued on the 
170  industrial debit plan, making allowance to policyholders who 
171  have continuously for a specified period made premium payments 
172  directly to an office of the insurer in an amount which fairly 
173  represents the saving in collection expenses. 
174         c. Readjustment of the rate of premium for a group 
175  insurance policy based on the loss or expense thereunder, at the 
176  end of the first or any subsequent policy year of insurance 
177  thereunder, which may be made retroactive only for such policy 
178  year. 
179         d. Issuance of life insurance policies or annuity contracts 
180  at rates less than the usual rates of premiums for such policies 
181  or contracts, as group insurance or employee insurance as 
182  defined in this code. 
183         e. Issuing life or disability insurance policies on a 
184  salary savings, bank draft, preauthorized check, payroll 
185  deduction, or other similar plan at a reduced rate reasonably 
186  related to the savings made by the use of such plan. 
187         3.a. No title insurer, or any member, employee, attorney, 
188  agent, or agency thereof, shall pay, allow, or give, or offer to 
189  pay, allow, or give, directly or indirectly, as inducement to 
190  title insurance, or after such insurance has been effected, any 
191  rebate or abatement of the premium or any other charge or fee, 
192  or provide any special favor or advantage, or any monetary 
193  consideration or inducement whatever. 
194         b. Nothing in this subparagraph shall be construed as 
195  prohibiting the payment of fees to attorneys at law, duly 
196  licensed to practice law in the courts of this state, for 
197  professional services, or as prohibiting the payment of earned 
198  portions of the premium to duly appointed agents or agencies who 
199  actually perform services for the title insurer. Nothing in this 
200  subparagraph shall be construed as prohibiting a rebate or 
201  abatement of an attorney’s fee charged for professional 
202  services, or that portion of the premium that is not required to 
203  be retained by the insurer pursuant to s. 627.782(1), or any 
204  other agent charge or fee to the person responsible for paying 
205  the premium, charge, or fee. 
206         c. No insured named in a policy, or any other person 
207  directly or indirectly connected with the transaction involving 
208  the issuance of such policy, including, but not limited to, any 
209  mortgage broker, real estate broker, builder, or attorney, any 
210  employee, agent, agency, or representative thereof, or any other 
211  person whatsoever, shall knowingly receive or accept, directly 
212  or indirectly, any rebate or abatement of any portion of the 
213  title insurance premium or of any other charge or fee or any 
214  monetary consideration or inducement whatsoever, except as set 
215  forth in sub-subparagraph b.; provided, in no event shall any 
216  portion of the attorney’s fee, any portion of the premium that 
217  is not required to be retained by the insurer pursuant to s. 
218  627.782(1), any agent charge or fee, or any other monetary 
219  consideration or inducement be paid directly or indirectly for 
220  the referral of title insurance business. 
221         Section 3. Subsection (2) of section 627.7711, Florida 
222  Statutes, is amended to read: 
223         627.7711 Definitions.—As used in this part, the term: 
224         (2) “Premium” means the charge, as specified by rule of the 
225  commission, that is made by a title insurer for a title 
226  insurance policy, endorsement, commitment, or other contract for 
227  including the charge for performance of primary title services 
228  by a title insurer or title insurance agent or agency, and 
229  incurring the risks incident to the such policy, endorsement, 
230  commitment, or other contract under the several classifications 
231  of title insurance contracts and forms, and upon which charge a 
232  premium tax is paid under s. 624.509. As used in this part or in 
233  any other law, with respect to title insurance, the word 
234  “premium” does not include a commission or any reimbursement for 
235  primary title services, title searches, closing services, or any 
236  component thereof performed by a title insurer, title insurance 
237  agent, or agency. The premium shall be calculated by multiplying 
238  the approved rate by each $1,000 of title insurance limits 
239  provided. 
240         Section 4. Section 627.7712, Florida Statutes, is created 
241  to read: 
242         627.7712 Charges for services.— 
243         (1) A title insurance agent or agency may charge a 
244  reasonable fee for primary title services, title searches, and 
245  closing services, or the components thereof, actually performed 
246  by the agent or agency. Any charges under this section do not 
247  constitute a part of the rate charged by the title insurer for 
248  the issuance of the title insurance form, policy, commitment, or 
249  contract issued in connection therewith. The agent or agency 
250  must file with the office the amount of each such charge or 
251  change to such charge, including the components thereof, 
252  together with related information as required by the office on a 
253  form adopted by the office. The office shall publish the 
254  information collected from agents or agencies pursuant to this 
255  section via the Internet or otherwise as the office deems 
256  sufficient to apprise the public of costs for these services 
257  among the various agents or agencies. 
258         (2) Charges for the services or components of services 
259  described in subsection (1) set by the agent or agency may not 
260  be set below the cost of providing such services. 
261         Section 5. Subsection (1) of section 627.780, Florida 
262  Statutes, is amended to read: 
263         627.780 Illegal dealings in premium.— 
264         (1) A person may not knowingly quote, charge, accept, 
265  collect, or receive a premium for title insurance other than the 
266  premium approved by the office adopted by the commission, except 
267  as provided in s. 626.9541(1)(h)3.b. 
268         Section 6. Section 627.782, Florida Statutes, is amended to 
269  read: 
270         627.782 Approval Adoption of rates.— 
271         (1) Each title insurer shall make an annual filing with the 
272  office no later than 12 months after the date of that insurer’s 
273  previous filing which demonstrates that the rate is actuarially 
274  sound. Rates for the required filing may not include any charge 
275  for primary title services, closing services, or title searches 
276  as defined in s. 627.7711 or any commission or other 
277  compensation made to title agents or agencies. 
278         (a)� The filing requirements of this section shall be 
279  satisfied by one of the following methods: 
280         1.� A rate filing prepared by an actuary containing 
281  documentation demonstrating that the proposed rates are not 
282  excessive, inadequate, or unfairly discriminatory pursuant to 
283  applicable rating laws and rules of the commission. 
284         2.� If no rate change is proposed, a filing consisting of a 
285  certification by an actuary that the existing rate is 
286  actuarially sound and not excessive, inadequate, or unfairly 
287  discriminatory. 
288         (b)� The office shall finalize its review by issuing a 
289  notice of intent to approve or a notice of intent to disapprove 
290  within 90 days after the date of its receipt of the filing. The 
291  notice of intent to approve and the notice of intent to 
292  disapprove constitute agency action for purposes of chapter 120. 
293  Requests for supporting information, requests for mathematical 
294  or mechanical corrections, or notification to the insurer by the 
295  office of its preliminary findings do not toll the 90-day period 
296  during any such proceeding. The rate shall be deemed approved if 
297  the office does not issue a notice of intent to approve or a 
298  notice of intent to disapprove within 90 days after the date of 
299  its receipt of the filing. 
300         (c) Upon receipt of a rate filing, the office shall review 
301  the rate filing to determine if the rate is excessive, 
302  inadequate, or unfairly discriminatory. The office shall, in 
303  accordance with generally accepted and reasonable actuarial 
304  principles and techniques, consider the following factors when 
305  making such determination: 
306         1. Each title insurer’s loss experience and prospective 
307  loss experience within and without this state under closing 
308  protection letters, policies, endorsements, commitments, and 
309  other contracts and policy liabilities. 
310         2. A reasonable margin for profit and contingencies, 
311  including contingent liability under s. 627.7865, sufficient to 
312  allow title insurers to earn a rate of return on their capital 
313  which will attract and retain adequate capital investment in the 
314  title insurance business and maintain an efficient title 
315  insurance delivery system. 
316         3. Past expenses and prospective expenses for the 
317  administration and handling of risks. 
318         4. Liability for defalcation. 
319         5. The degree of competition among insurers for the risk 
320  insured. 
321         6. Investment income reasonably expected by the insurer, 
322  consistent with the insurer’s investment practices, from 
323  premiums anticipated in the filing, plus any other expected 
324  income from currently invested assets representing the amount 
325  expected on unearned premium reserves and loss reserves. The 
326  commission may adopt rules using reasonable techniques of 
327  actuarial science and economics to specify the manner in which 
328  insurers must calculate investment income attributable to such 
329  classes of insurance written in this state and the manner in 
330  which such investment income must be used in the calculation of 
331  insurance rates. The manner of calculation shall contemplate 
332  allowances for a profit factor and investment income that 
333  produce a reasonable rate of return; however, investment income 
334  from invested surplus may not be considered. 
335         7. The reasonableness of the judgment reflected in the 
336  filing. 
337         8. Dividends, savings, or unabsorbed premium deposits 
338  allowed or returned to Florida policyholders, members, or 
339  subscribers. 
340         9. The adequacy of loss reserves. 
341         10. The cost of reinsurance. 
342         11. Trend factors, including trends in actual losses per 
343  insured unit for the insurer making the filing. 
344         12. Other relevant factors that affect the frequency or 
345  severity of claims or expenses. 
346         (d) After consideration of the rate factors provided in 
347  paragraph (c), a rate may be found by the office to be 
348  excessive, inadequate, or unfairly discriminatory based upon the 
349  following standards: 
350         1. Rates shall be deemed excessive if they are likely to 
351  produce a profit from Florida business which is unreasonably 
352  high in relation to the risk involved in the class of business 
353  or if expenses are unreasonably high in relation to services 
354  rendered. 
355         2. Rates shall be deemed excessive if, among other things, 
356  the rate structure established by a title insurer provides for 
357  replenishment of surpluses from premiums if the replenishment is 
358  necessitated by investment losses. 
359         3. Rates shall be deemed inadequate if the rates and the 
360  investment income attributable to them are clearly insufficient 
361  to sustain projected losses and expenses in the class of 
362  business to which they apply. 
363         (e) In reviewing a rate filing, the office may require the 
364  insurer to provide, at the insurer’s expense, all information 
365  necessary to evaluate the condition of the company and the 
366  reasonableness of the filing according to the criteria 
367  enumerated in this section. 
368         (f) The office may at any time review a rate, rating 
369  schedule, rating manual, or rate change; the pertinent records 
370  of the insurer; and market conditions. If the office finds on a 
371  preliminary basis that a rate may be excessive, inadequate, or 
372  unfairly discriminatory, the office shall initiate proceedings 
373  to disapprove the rate and shall notify the insurer. Upon being 
374  notified, the insurer shall, within 60 days, file with the 
375  office all information that, in the belief of the insurer, 
376  proves the reasonableness, adequacy, and fairness of the rate or 
377  rate change. The office shall issue a notice of intent to 
378  approve or a notice of intent to disapprove pursuant to the 
379  procedures of paragraph (b) within 90 days after the date of its 
380  receipt of the insurer’s initial response. In such instances and 
381  in any administrative proceeding relating to the legality of the 
382  rate, the insurer has the burden of proof to show by a 
383  preponderance of the evidence that the rate is not excessive, 
384  inadequate, or unfairly discriminatory. After the office 
385  notifies an insurer that a rate may be excessive, inadequate, or 
386  unfairly discriminatory, unless the office withdraws the 
387  notification, the insurer may not alter the rate except to 
388  conform with the office’s notice until the earlier of 120 days 
389  after the date the notification was provided or 180 days after 
390  the date of the implementation of the rate. The office may, 
391  subject to chapter 120, disapprove without the required 60-day 
392  notification any rate increase filed by an insurer within the 
393  prohibited period or during the time that the legality of the 
394  increased rate is being contested. 
395         (g) When submitting a rate filing, the chief executive 
396  officer or the chief financial officer of the title insurer and 
397  the chief actuary of the title insurer must certify the 
398  following information on a form approved by the commission, 
399  under oath, and subject to penalty of perjury: 
400         1. The signing officer and actuary have reviewed the rate 
401  filing; 
402         2. Based on the knowledge of the signing officer and 
403  actuary, the rate filing does not contain any untrue statement 
404  of a material fact or omit a material fact necessary to make the 
405  statements not misleading, in light of the circumstances under 
406  which such statements were made; 
407         3. Based on the knowledge of the signing officer and 
408  actuary, the information and other factors described in this 
409  section, including, but not limited to, investment income, 
410  present the basis of the rate filing in all material respects 
411  for the periods presented in the filing; and 
412         4. Based on the knowledge of the signing officer and 
413  actuary, the rate filing reflects all premium savings that are 
414  reasonably expected to result from legislative enactments and 
415  are in accordance with generally accepted and reasonable 
416  actuarial techniques. 
417 
418  A signing officer or actuary who knowingly makes a false 
419  certification under this subsection commits a violation of s. 
420  626.9541(1)(e) and is subject to the penalties prescribed in s. 
421  626.9521. Failure to provide such certification by the officer 
422  and actuary shall result in the rate filing being disapproved 
423  without prejudice. Under such circumstances, the insurer or 
424  rating organization may refile its rate filing with the required 
425  certification. As used in this paragraph, the term “actuary” 
426  means an individual who is a member of the Casualty Actuary 
427  Society or the American Academy of Actuaries. 
428         (h) If, at the time a filing is required under this 
429  section, an insurer is in the process of completing a rate 
430  review, the insurer may apply to the office for an extension of 
431  up to an additional 30 days to make the filing. The request for 
432  an extension must be received by the office no later than the 
433  date the filing is due. 
434         (i) After receiving a request to be exempted from the 
435  provisions of this section before the filing is due, the office 
436  may, due to insignificant numbers of policies in force or 
437  insignificant premium volume, exempt a company from filing rates 
438  or rate certification as required by this section. 
439         (j) If an insurer fails to meet the filing requirements of 
440  this subsection and does not submit the filing within 60 days 
441  following the date on which the filing is due, the office may, 
442  in addition to any other penalty authorized by law, order the 
443  insurer to discontinue the issuance of policies for which the 
444  required filing was not made until such time that the office 
445  determines that the required filing has been submitted properly. 
446         (1) Subject to the rating provisions of this code, the 
447  commission must adopt a rule specifying the premium to be 
448  charged in this state by title insurers for the respective types 
449  of title insurance contracts and, for policies issued through 
450  agents or agencies, the percentage of such premium required to 
451  be retained by the title insurer which shall not be less than 30 
452  percent. However, in a transaction subject to the Real Estate 
453  Settlement Procedures Act of 1974, 12 U.S.C. ss. 2601 et seq., 
454  as amended, no portion of the premium attributable to providing 
455  a primary title service shall be paid to or retained by any 
456  person who does not actually perform or is not liable for the 
457  performance of such service. 
458         (2) In adopting premium rates, the commission must give due 
459  consideration to the following: 
460         (a) The title insurers’ loss experience and prospective 
461  loss experience under closing protection letters and policy 
462  liabilities. 
463         (b) A reasonable margin for underwriting profit and 
464  contingencies, including contingent liability under s. 627.7865, 
465  sufficient to allow title insurers, agents, and agencies to earn 
466  a rate of return on their capital that will attract and retain 
467  adequate capital investment in the title insurance business and 
468  maintain an efficient title insurance delivery system. 
469         (c) Past expenses and prospective expenses for 
470  administration and handling of risks. 
471         (d) Liability for defalcation. 
472         (e) Other relevant factors. 
473         (3) Rates may be grouped by classification or schedule and 
474  may differ as to class of risk assumed. 
475         (4) Rates may not be excessive, inadequate, or unfairly 
476  discriminatory. 
477         (2)(5) The approved rate premium applies to each $100 of 
478  insurance issued to an insured. 
479         (3)(6) The approved rate applies premium rates apply 
480  throughout this state. 
481         (7) The commission shall, in accordance with the standards 
482  provided in subsection (2), review the premium as needed, but 
483  not less frequently than once every 3 years, and shall, based 
484  upon the review required by this subsection, revise the premium 
485  if the results of the review so warrant. 
486         (4)(8) The commission may, by rule, require licensees under 
487  this part to annually submit statistical information, including 
488  loss and expense data, as the office department determines to be 
489  necessary to analyze premium rates, retention rates, and the 
490  condition of the title insurance industry. 
491         (5) The commission may establish procedures for the 
492  required filings by rule. 
493         Section 7. Subsection (1) of section 627.7845, Florida 
494  Statutes, is amended to read: 
495         627.7845 Determination of insurability required; 
496  preservation of evidence of title search and examination.— 
497         (1) A title insurer may not issue a title insurance 
498  commitment, endorsement, or title insurance policy until the 
499  title insurer has caused to be made a determination of 
500  insurability based upon the evaluation of a reasonable title 
501  search or a search of the records of a Uniform Commercial Code 
502  filing office, as applicable, has examined such other 
503  information as may be necessary, and has caused to be made a 
504  determination of insurability of title or the existence, 
505  attachments, perfection, and priority of a Uniform Commercial 
506  Code security interest, including endorsement coverages, in 
507  accordance with sound underwriting practices. If an insurer or 
508  its agent is negligent in performing the activities required in 
509  this subsection, the insurer is liable to the insured for 
510  damages up to three times the amount of coverage. 
511         Section 8. Section 627.783, Florida Statutes, is repealed. 
512         Section 9. This act shall take effect July 1, 2010, and 
513  applies to title insurance forms, contracts, commitments, or 
514  policies issued on or after that date.