FL S0410

Creates Part XXII of Chapter 627, Florida Statutes, establishing a comprehensive regulatory framework for collateral protection insurance on mortgaged real property, including manufactured and mobile homes, effective July 1, 2023

Prohibits insurers and insurance agents from issuing collateral protection insurance on property they own or service, and bars them from compensating lenders, investors, or servicers through commissions, profit-sharing, premium-sharing, or any payments made to secure collateral protection insurance business

Requires coverage and premiums to be based on replacement cost value, determined first by the last known coverage amount, then by the insurer's calculated replacement cost, or finally by the unpaid principal balance if other methods are unavailable; any excess coverage beyond the unpaid loan balance must be paid to the mortgagor

Mandates insurers with at least $100,000 in direct written premium file annual reports with the Office of Insurance Regulation detailing loss ratios, earned premiums, itemized expenses, and loss reserves, and requires a rate filing if the annual loss ratio falls below 35% for two consecutive years

Requires insurers to refile collateral protection insurance rates at least every 4 years and maintain separate rates for collateral protection insurance versus voluntary insurance on real estate owned property, with enforcement authority granted to the Office of Insurance Regulation