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#2258747 - 08/25/21 11:00 PM Florida Senate Bill 76
c@c Offline
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Georgia
We recently learned of a new law in Florida that prohibits insurance agents from placing the "replacement cost value" on an insurance policy. From time to time there are situations where our mortgage AUS qualifies the borrower for an appraisal waiver, therefore one is not obtained. In these instances, we were using the replacement cost value to determine adequacy of hazard and flood insurance on the property. I'm wondering if anyone else has experienced this, and if so, how are you handling?

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#2258759 - 08/26/21 12:48 PM Re: Florida Senate Bill 76 c@c
waldensouth Offline
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I did a quick reading of the final rule and saw no mention of that. It said a great deal about insurance issued under the Citizens Property Insurance Corporation. It indicated that mobile homes built after 1994 could not use replacement cost insurance but must use actual cash value. It was a very quick reading. I also did a word search for "replacement within the document" and found nothing which stated that. Do you know the specific cite?FL rule 2021-77 Senate Bill 76
Last edited by waldensouth; 08/26/21 12:51 PM.
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#2258794 - 08/26/21 05:43 PM Re: Florida Senate Bill 76 waldensouth
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Georgia
Hi Waldensouth. It may actually be the HB version. It's in the section below.

https://www.myfloridacfo.com/division/agents/newsletter/Archive/2021/Mar/InTheKnow.htm

In Florida on 7/1/2021 (Senate Bill 76) was signed into law by the governor regarding insurance agencies not providing a replacement cost estimator on insurance policies. This is what the law states

• Protecting Proprietary Business Information: prohibits a person from requiring an insurance agent or agency to provide the replacement cost estimator or other proprietary underwriting information as a condition to extending credit secured by real property, nor may an insurance agent or agency provide this information.

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#2258925 - 08/30/21 04:22 PM Re: Florida Senate Bill 76 c@c
waldensouth Offline
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FINALLY ABOVE the gnat line
Hi. thanks for the link and cite. I don't believe that means they can't put the replacement cost on insurance policies. That would make no sense especially if the customer purchased replacement cost coverage. A Replacement Cost Estimator is the tool that the insurance companies use to calculate the replacement cost value. As such the tool would be the proprietary business information and not the actual end result.

It appears they are protecting inside information of insurance agents. A lender cannot require the insurance underwriting information which, would include the RCV Estimator calculator, as a condition for extending credit.

You may wish to check with legal counsel on this interpretation as I am not an attorney. But not disclosing the basis of the tool used to calculate RCV makes a lot more sense.
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"Once you learn to read, you will be forever free."

- Frederick Douglass




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#2258930 - 08/30/21 04:29 PM Re: Florida Senate Bill 76 c@c
rlcarey Online
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Galveston, TX
Yeah, that is sort of how I read that bill also,
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