Bill Text: FL S1288 | 2019 | Regular Session | Introduced

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Bill Title: Property Insurance Coverage for Explosions

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-05-03 - Died in Banking and Insurance [S1288 Detail]

Download: Florida-2019-S1288-Introduced.html

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       Florida Senate - 2019                                    SB 1288
       
       
        
       By Senator Braynon
       
       
       
       
       
       35-01813-19                                           20191288__
    1                        A bill to be entitled                      
    2         An act relating to property insurance coverage for
    3         explosions; amending s. 624.10, F.S.; defining the
    4         term “explosion” for purposes of the Florida Insurance
    5         Code; creating s. 627.70105, F.S.; requiring an
    6         insurer issuing or renewing a property insurance
    7         policy to provide explosion coverage; providing
    8         options for exclusions of explosion coverage;
    9         providing requirements for such options; providing
   10         recordkeeping requirements; providing a presumption;
   11         providing applicability; requiring the Financial
   12         Services Commission to adopt rules; providing
   13         effective dates.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Effective July 1, 2020, subsections (4) and (5)
   18  of section 624.10, Florida Statutes, are renumbered as
   19  subsections (5) and (6), respectively, and a new subsection (4)
   20  is added to that section, to read:
   21         624.10 Other definitions.—As used in the Florida Insurance
   22  Code, the term:
   23         (4) “Explosion” means:
   24         (a) An intense ground vibration caused by drilling or
   25  blasting for mining or quarrying; or
   26         (b) A sudden and violent release of energy in a rapid
   27  nuclear or chemical reaction that produces heat, light, noise,
   28  and a shock wave.
   29         Section 2. Effective July 1, 2020, section 627.70105,
   30  Florida Statutes, is created to read:
   31         627.70105 Explosion coverage required; availability of
   32  exclusions.—
   33         (1) An insurer issuing or renewing a property insurance
   34  policy must provide explosion coverage.
   35         (2) An insurer issuing a property insurance policy must
   36  make available, at the option of the policyholder, an exclusion
   37  of explosion coverage.
   38         (a) The coverage may be excluded only if:
   39         1. When the policyholder is a natural person, the
   40  policyholder personally provides to the insurer the following
   41  statement, which must be written in the policyholder’s own
   42  handwriting, signed by the policyholder and every other named
   43  insured on the property insurance policy, and dated: “I do not
   44  want the insurance on my (home/mobile home/dwelling/condominium
   45  unit/association/business) to pay for damage from explosion. I
   46  will pay those costs. My insurance will not.”
   47         2. When the policyholder is other than a natural person,
   48  the policyholder provides to the insurer on the policyholder’s
   49  letterhead the following statement, which must be signed by the
   50  policyholder’s authorized representative and dated: ...(Name of
   51  entity)... does not want the insurance on its ...(type of
   52  structure)... to pay for damage from an explosion. ...(Name of
   53  entity)... will be responsible for these costs. ...(Name of
   54  entity’s)... insurance will not.
   55         (b) If the structure covered by the property insurance
   56  policy is subject to a mortgage or lien, the policyholder must
   57  provide the insurer with a written statement from the
   58  mortgageholder or lienholder indicating that the mortgageholder
   59  or lienholder approves the policyholder electing to exclude
   60  explosion coverage from his or her or its property insurance
   61  policy.
   62         (3) An insurer issuing a property insurance policy must
   63  make available, at the option of the policyholder, an exclusion
   64  of coverage for the contents. The coverage may be excluded only
   65  if the policyholder personally provides to the insurer the
   66  following statement, which must be written in the policyholder’s
   67  own handwriting, signed by the policyholder and every other
   68  named insured on the property insurance policy, and dated: “I do
   69  not want the insurance on my (home/mobile
   70  home/dwelling/condominium unit/association/business) to pay for
   71  the costs to repair or replace any contents that are damaged
   72  from explosion. I will pay those costs. My insurance will not.”
   73         (4) An insurer shall keep the original copy of a signed
   74  statement required by this section for coverage exclusion,
   75  electronically or otherwise, and provide a copy to the
   76  policyholder. A signed statement meeting the requirements of
   77  this section creates a presumption that there was an informed,
   78  knowing rejection of coverage.
   79         (5) The exclusions authorized by this section apply for the
   80  term of the property insurance policy and for each renewal
   81  thereafter. Changes to the exclusions authorized by this section
   82  may be implemented only as of the date of renewal.
   83         (6) The commission shall adopt rules providing appropriate
   84  alternative methods for providing the statements required by
   85  this section for policyholders who have a handicapping or
   86  disabling condition that prevents them from providing a
   87  handwritten statement.
   88         Section 3. Except as otherwise provided in this act, this
   89  act shall take effect July 1, 2019.