(1)(a) A title insurer may not issue any contract of title insurance, either as a primary insurer or as a coinsurer or reinsurer, upon an estate, lien, or interest in property located in this state unless:
1. The contract shows on its face the dollar amount of the risk assumed; and
2. The dollar amount of the risk assumed does not exceed its surplus as to policyholders, unless the excess is simultaneously reinsured in one or more authorized insurers or one or more reinsurers that meet the requirements of s. 624.610.
(b) A title insurer may not circumvent the limitations of paragraph (a) by issuing two or more policies upon the same estate, lien, or interest.
(c) This subsection does not prohibit:
1. The simultaneous issuance of policies insuring different estates, liens, or interests in the same property, if each of the simultaneous policies excepts the paramount estates, liens, or interests to which the insured estate, lien, or interest is subject and if each of the simultaneous policies conforms to this subsection.
2. Ceding portions of the total risk to authorized insurers or reinsurers that meet the requirements of s. 624.610. Insurance ceded, including coinsurance effected, is a retention of risk by the insurer assuming the ceded risk, and not by the insurer ceding the risk.
(2) Surplus as to policyholders shall be determined from the last annual statement of the insurer filed under s. 624.424.
(3) Only contractual remedies are available for a breach of a duty which arises solely from the terms of a contract of title insurance or an instrument issued pursuant to s. 627.786(3).
...isk between the insurer and insured. The economic loss rule protects these contractual expectations. including the important expectation that a title insurer's risk will be limited to the dollar amount shown on the face of the policy, see Fla. Stat. § 627.778(1)(a)....
...atute, it would have done so expressly, as it did with other sections of the insurance code. See Fla. Stat. § 624.155. Moreover, exposing title insurance companies to liability in excess of the policy limits is contrary to the legislature's goal in § 627.778( l )(a) of furthering the stability and viability of the title insurance industry by requiring title insurance policies to state the dollar amount of risk assumed and limiting such risk to one-half of the insurer's surplus....
This Florida statute resource is curated by Graham W. Syfert, Esq., a Jacksonville, Florida personal injury and workers' compensation attorney. Attorney Syfert regularly works with Chapter 627 in the context of insurance coverage law and represents clients throughout Northeast Florida. For legal consultation, call 904-383-7448.
