Bill Text: FL S1094 | 2015 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Peril of Flood
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Passed) 2015-05-22 - Chapter No. 2015-69 [S1094 Detail]
Download: Florida-2015-S1094-Introduced.html
Bill Title: Peril of Flood
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Passed) 2015-05-22 - Chapter No. 2015-69 [S1094 Detail]
Download: Florida-2015-S1094-Introduced.html
Florida Senate - 2015 SB 1094 By Senator Brandes 22-00259C-15 20151094__ 1 A bill to be entitled 2 An act relating to the peril of flood; amending s. 3 163.3178, F.S.; specifying components that must be 4 contained in the coastal management element required 5 for a local government comprehensive plan; creating s. 6 195.088, F.S.; defining terms; requiring a licensed 7 surveyor and mapper to complete an elevation 8 certificate in accordance with a checklist developed 9 by the Division of Emergency Management and to submit 10 a copy of the elevation certificate to a specified 11 property appraiser within a certain time after its 12 completion; authorizing the redaction of certain 13 personal information from the copy; requiring each 14 property appraiser to submit the copies of elevation 15 certificates to the division on a schedule established 16 by the division; amending s. 627.715, F.S.; revising 17 the required coverage for customized flood insurance; 18 specifying how such coverage may differ from standard 19 and preferred flood insurance; deleting a provision 20 that prohibits supplemental flood insurance from 21 including excess coverage over any other insurance 22 covering the peril of flood; revising the information 23 that must be prominently noted on a certain page of a 24 flood insurance policy; requiring an agent to offer a 25 flood insurance quote when quoting an insurance policy 26 that will cover a residential structure located within 27 a specified area; requiring the agent to maintain a 28 record of an insured’s declination of flood insurance 29 coverage for a specified period of time; revising the 30 notice that must be provided to and acknowledged by an 31 applicant for flood coverage from an authorized or 32 surplus lines insurer if the applicant’s property is 33 receiving flood insurance under the National Flood 34 Insurance Program; allowing an authorized insurer to 35 request a certification from the Office of Insurance 36 Regulation which indicates that a policy, contract, or 37 endorsement issued by the insurer provides coverage 38 for the peril of flood which equals or exceeds the 39 flood coverage offered by the National Flood Insurance 40 Program; authorizing such insurer or its agent to 41 reference or include the certification in specified 42 advertising, communications, and documentation; 43 providing an effective date. 44 45 Be It Enacted by the Legislature of the State of Florida: 46 47 Section 1. Paragraph (f) of subsection (2) of section 48 163.3178, Florida Statutes, is amended to read: 49 163.3178 Coastal management.— 50 (2) Each coastal management element required by s. 51 163.3177(6)(g) shall be based on studies, surveys, and data; be 52 consistent with coastal resource plans prepared and adopted 53 pursuant to general or special law; and contain: 54 (f) A redevelopment component thatwhichoutlines the 55 principles that mustwhichshallbe used to eliminate 56 inappropriate and unsafe development in the coastal areas when 57 opportunities arise. The component must: 58 1. Include development and redevelopment principles, 59 strategies, and engineering solutions that reduce the flood risk 60 in coastal areas which results from high-tide events, storm 61 surge, flash floods, stormwater runoff, and the related impacts 62 of sea-level rise. 63 2. Encourage the use of best practices development and 64 redevelopment principles, strategies, and engineering solutions 65 that will result in the removal of coastal real property from 66 flood zone designations established by the Federal Emergency 67 Management Agency. 68 3. Identify site development techniques and best practices 69 that may reduce losses due to flooding and claims made under 70 flood insurance policies issued in this state. 71 Section 2. Section 195.088, Florida Statutes, is created to 72 read: 73 195.088 Property appraisers to submit elevation 74 certificates to the Division of Emergency Management.— 75 (1) As used in this section, the term: 76 (a) “Division” means the Division of Emergency Management 77 established within the Executive Office of the Governor under s. 78 14.2016. 79 (b) “Elevation certificate” means the certificate used to 80 demonstrate the elevation of property which has been developed 81 by the Federal Emergency Management Agency pursuant to federal 82 floodplain management regulation or which is completed by a 83 licensed surveyor and mapper. 84 (c) “Licensed surveyor and mapper” has the same meaning as 85 provided in s. 472.005 for “surveyor and mapper.” 86 (2) An elevation certificate must be completed by a 87 licensed surveyor and mapper in accordance with the checklist 88 developed by the division. Within 30 days after the completion 89 of an elevation certificate, a licensed surveyor and mapper must 90 submit a copy of the certificate to the property appraiser of 91 the county in which the property that was surveyed or mapped is 92 located. The copy must be unaltered, except that the licensed 93 surveyor and mapper may redact the name of the property owner. 94 (3) Each property appraiser shall submit the copies 95 received under subsection (2) to the division on a regular 96 schedule established by the division. 97 Section 3. Section 627.715, Florida Statutes, is amended to 98 read: 99 627.715 Flood insurance.—An authorized insurer may issue an 100 insurance policy, contract, or endorsement providing personal 101 lines residential coverage for the peril of flood on any 102 structure or the contents of personal property contained 103 therein, subject to this section. This section does not apply to 104 commercial lines residential or commercial lines nonresidential 105 coverage for the peril of flood. This section also does not 106 apply to coverage for the peril of flood that is excess coverage 107 over any other insurance covering the peril of flood. An insurer 108 may issue flood insurance policies, contracts, or endorsements 109 on a standard, preferred, customized, or supplemental basis. 110 (1)(a)1. Standard flood insurance must cover only losses 111 from the peril of flood, as defined in paragraph (b), equivalent 112 to that provided under a standard flood insurance policy under 113 the National Flood Insurance Program. Standard flood insurance 114 issued under this section must provide the same coverage, 115 including deductibles and adjustment of losses, as that provided 116 under a standard flood insurance policy under the National Flood 117 Insurance Program. 118 2. Preferred flood insurance must include the same coverage 119 as standard flood insurance but: 120 a. Include, within the definition of “flood,” losses from 121 water intrusion originating from outside the structure that are 122 not otherwise covered under the definition of “flood” provided 123 in paragraph (b). 124 b. Include coverage for additional living expenses. 125 c. Require that any loss under personal property or 126 contents coverage that is repaired or replaced be adjusted only 127 on the basis of replacement costs up to the policy limits. 128 3. Customized flood insurance must provideincludecoverage 129 for the peril of flood, and may differ from standard and 130 preferredthat is broader than the coverage provided under131standardflood insurance by: 132 a. Including coverage that is broader than the coverage 133 provided under standard flood insurance; 134 b. Being in an amount agreed upon by the insurer and 135 insured, such as coverage that is limited to the total amount of 136 each outstanding mortgage applicable to the covered property, if 137 such coverage does not include a provision penalizing the 138 policyholder for not insuring the covered property up to the 139 replacement cost; 140 c. Including a deductible as authorized in s. 627.701; 141 d. Requiring that a loss to a dwelling be adjusted in 142 accordance with s. 627.7011(3) or adjusted only on the basis of 143 the actual cash value of the property; 144 e. Restricting flood coverage to the principal building, as 145 defined in the applicable policy; 146 f. Including or excluding coverage for additional living 147 expenses; and 148 g. Excluding coverage, as to the peril of flood, for 149 personal property or contents. 150 4. Supplemental flood insurance may provide coverage 151 designed to supplement a flood policy obtained from the National 152 Flood Insurance Program or from an insurer issuing standard or 153 preferred flood insurance pursuant to this section. Supplemental 154 flood insurance may provide, but need not be limited to, 155 coverage for jewelry, art, deductibles, and additional living 156 expenses.Supplemental flood insurance does not include coverage157for the peril of flood that is excess coverage over any other158insurance covering the peril of flood.159 (b) “Flood” means a general and temporary condition of 160 partial or complete inundation of two or more acres of normally 161 dry land area or of two or more properties, at least one of 162 which is the policyholder’s property, from: 163 1. Overflow of inland or tidal waters; 164 2. Unusual and rapid accumulation or runoff of surface 165 waters from any source; 166 3. Mudflow; or 167 4. Collapse or subsidence of land along the shore of a lake 168 or similar body of water as a result of erosion or undermining 169 caused by waves or currents of water exceeding anticipated 170 cyclical levels that result in a flood as defined in this 171 paragraph. 172 (2)Any limitations onFlood coverage deductibles andor173 policy limits pursuant to this section, including, but not174limited to, deductibles,must be prominently noted on the policy 175 declarations page or face page. 176 (3)(a) An insurer may establish and use flood coverage 177 rates in accordance with the rate standards provided in s. 178 627.062. 179 (b) For flood coverage rates filed with the office before 180 October 1, 2019, the insurer may also establish and use such 181 rates in accordance with the rates, rating schedules, or rating 182 manuals filed by the insurer with the office which allow the 183 insurer a reasonable rate of return on flood coverage written in 184 this state. Flood coverage rates established pursuant to this 185 paragraph are not subject to s. 627.062(2)(a) and (f). An 186 insurer shall notify the office of any change to such rates 187 within 30 days after the effective date of the change. The 188 notice must include the name of the insurer and the average 189 statewide percentage change in rates. Actuarial data with regard 190 to such rates for flood coverage must be maintained by the 191 insurer for 2 years after the effective date of such rate change 192 and is subject to examination by the office. The office may 193 require the insurer to incur the costs associated with an 194 examination. Upon examination, the office, in accordance with 195 generally accepted and reasonable actuarial techniques, shall 196 consider the rate factors in s. 627.062(2)(b), (c), and (d), and 197 the standards in s. 627.062(2)(e), to determine if the rate is 198 excessive, inadequate, or unfairly discriminatory. 199 (4) A surplus lines agent may export a contract or 200 endorsement providing flood coverage to an eligible surplus 201 lines insurer without making a diligent effort to seek such 202 coverage from three or more authorized insurers under s. 203 626.916(1)(a). This subsection expires July 1, 2017. 204 (5) In addition to any other applicable requirements, an 205 insurer providing flood coverage in this state must: 206 (a) Notify the office at least 30 days before writing flood 207 insurance in this state; and 208 (b) File a plan of operation and financial projections or 209 revisions to such plan, as applicable, with the office. 210 (6) Citizens Property Insurance Corporation may not provide 211 insurance for the peril of flood. 212 (7) The Florida Hurricane Catastrophe Fund may not provide 213 reimbursement for losses proximately caused by the peril of 214 flood, including losses that occur during a covered event as 215 defined in s. 215.555(2)(b). 216 (8) An agent must: 217 (a) Offer a flood insurance quote when quoting an insurance 218 policy that will cover a residential structure located within a 219 Special Flood Hazard Area designated by the Federal Emergency 220 Management Agency. If the insured declines to obtain flood 221 insurance coverage, the agent must maintain a record of that 222 declination for 36 months. 223 (b) Upon receivingobtainingan application for flood 224 coverage from an authorized or surplus lines insurer for a 225 property receiving flood insurance under the National Flood 226 Insurance Program,mustobtain an acknowledgment signed by the 227 applicant before placing the coverage with the authorized or 228 surplus lines insurer. The acknowledgment must notify the 229 applicant that, if the applicant discontinues coverage under the 230 National Flood Insurance Program which is provided at a 231 subsidized rate, the full risk rate for flood insurance may 232 apply to the property if the applicantsuch insurance islater 233 seeks to reinstate coverageobtainedunder theNational Flood234Insuranceprogram. 235 (9) With respect to the regulation of flood coverage 236 written in this state by authorized insurers, this section 237 supersedes any other provision in the Florida Insurance Code in 238 the event of a conflict. 239 (10) If federal law or rule requires a certification by a 240 state insurance regulatory official as a condition of qualifying 241 for private flood insurance or disaster assistance, the 242 Commissioner of Insurance Regulation may provide the 243 certification, and such certification is not subject to review 244 under chapter 120. 245 (11) An authorized insurer offering flood insurance in this 246 state may request a certification by the office which indicates 247 that a policy, contract, or endorsement issued by the insurer 248 under this section provides coverage for the peril of flood 249 which equals or exceeds the flood coverage offered by the 250 National Flood Insurance Program. The authorized insurer or its 251 agent may reference or include the certification in advertising 252 and communications with an agent, a lending institution, an 253 insured, and a potential insured. The authorized insurer may 254 include a statement that notifies an insured of the 255 certification on the declarations page or other policy 256 documentation related to flood coverage. 257 Section 4. This act shall take effect July 1, 2015. 258