SB 122 — Insurance Assignment Agreements

Florida Senate - 2019 CS for SB 122 By Senatorthe BroxsonCommittee 1-00417-19on 2019122__Banking A bill to be entitled An act relating to attorney fee awards under insurance policies and contracts;Insurance;

and Senators Broxson and Hooper 597-02675-19 2019122c1 A bill to be entitled An act relating to agreements between service providers and consumers;

creating s.

501.172, F.S.;

defining terms;

specifying limitations and authorized provisions relating to a service provider’s right to payment under certain agreements with consumers under urgent or emergency circumstances;

specifying requirements, limitations, and prohibited provisions for agreements containing a post-loss assignment of benefits;

providing that a prevailing party under certain policies and coverages has the right to attorney fees and costs;

providing that a court need not determine there is a prevailing party;

providing factors a court must consider in determining who the prevailing party is under certain circumstances;

providing construction relating to waiver and limitations on recovery;

authorizing a court to order an assignee to pay attorney fees and costs under certain circumstances;

requiring the court to stay proceedings under certain circumstances;

providing applicability;

providing legislative findings and intent;

revisingproviding certainthat attorney feefees under certain provisions inof the Florida Insurance Code tomay specifynot thatbe anawarded insured or beneficiary entitled, under certain circumstances, to attorney fees under an insuranceassignee policyof orpost-loss contractbenefits mustwho beis a namedservice insuredprovider; or named beneficiary;

providing thatapplicability; such right to attorney fees may not be assigned or extended by agreement, except to certain persons;

making technical changes;

1429 Be It Enacted by the Legislature of the State of Florida:

1631 Section 1. Section 626.9373,501.172, Florida Statutes, is amendedcreated to read:

626.9373 Attorney501.172 Agreements Attorney’sbetween fees.—service (1) Uponproviders theand renditionconsumers.— of(1) DEFINITIONS.—As aused judgment or decree by any court of this state against a surplus lines insurer in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer on or after the effective date of this act,section: the trial court or, if the named insured or named beneficiary prevails on appeal, the appellate court, shall adjudge or decree against the insurer in favor of the named insured or named beneficiary a reasonable sum as fees or compensation for the named insured’s or named beneficiary’s attorney prosecuting the lawsuit for which recovery is awarded.

The(a) “Consumer” rightmeans toa attorneyperson feeswho underhas thisan sectioninterest mayin, notor bewho assignedhas ora extendedright byto contractmanage real or otherpersonal agreementproperty, toincluding anyimprovements personupon othersuch thanproperty, anotherregardless namedof insured,whether namedfor beneficiary,personal or omnibusbusiness insured.purposes, including an owner, a tenant, a licensee, or a property manager.

(2) If(b) “Service awarded,provider” attorneymeans attorney’sa feesperson orwho compensationenters mustinto shallan beagreement includedwith ina consumer for the judgmentstabilization, repair, improvement, or decreeremediation renderedof inreal theor case.personal property.

Section(2) LIMITATION 2. SectionON 627.428,AGREEMENTS FloridaBETWEEN Statutes,SERVICE isPROVIDERS amendedAND CONSUMERS UNDER URGENT OR EMERGENCY CIRCUMSTANCES.— (a) If a consumer acts under urgent or emergency circumstances to read:protect property from damage and enters into an agreement with a service provider to stabilize, protect, repair, or improve such property, the service provider may only contract for, receive, or acquire in any manner from the consumer at such time the right to payment for the work necessary to stabilize, protect, and prevent additional damage to the property.

627.428 AttorneySuch feesright Attorney’sto fee.—payment (1) Uponmay theinclude: rendition of a judgment or decree by any court of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the named insured or named beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the named insured or named beneficiary a reasonable sum as fees or compensation for the named insured’s or named beneficiary’s attorney prosecuting the suit in which the recovery is awarded had.

The1. A rightpost-loss toassignment attorneyof feesbenefits under thisa sectionproperty mayinsurance notpolicy beor assignedunder the comprehensive or extendedcombined byadditional contractcoverage orunder othera agreementmotor tovehicle anyinsurance personpolicy otherfor thancoverage anotherof namedwindshield insured,damage, namedexecuted beneficiary,pursuant orto omnibussubsection insured.(3), except that notwithstanding ss.

(2) As626.9373 toand suits627.428, basedany onright claimsto arisingattorney underfees lifeor insurancecosts policiesagainst oran annuityinsurer contracts,by noany such attorneyservice feesprovider may not attorney’s fee shall be allowedas ifprovided suchin suitsubsection was(4). commenced prior to expiration of 60 days after proof of the claim was duly filed with the insurer.

(3) WhenA soservice awarded,provider compensationmay ornot feesreceive offrom thea attorneyconsumer mustacting shallunder beurgent includedor inemergency thecircumstances judgmentan orassignment decreeof renderedpost-loss benefits in theexcess case.of:

Sectiona. Under 3. Thisa actproperty shallinsurance takepolicy, effectin Julyexcess 1,of 2019.the greater of $3,000 or 1 percent of the Coverage A limit under such policy.

b. Under a motor vehicle insurance policy for comprehensive or combined additional coverage for windshield damage, in excess of $500.

2. An acknowledgement of the rights that may exist, if any, under chapter 713 to make a claim upon the property.

(b) An agreement between a consumer and a service provider that provides greater rights to the service provider under such urgent or emergency circumstances, including alleged rights to do further repairs, remediation, or improvements or an assignment of rights, benefits, causes of action, or other contractual rights in violation of this subsection is void.

(3) REQUIREMENTS FOR AGREEMENTS CONTAINING A POST-LOSS ASSIGNMENT OF BENEFITS.—In all circumstances, an agreement entered into by a consumer and a service provider after a loss or damage has occurred to the consumer’s property which contains a post-loss assignment of benefits to the service provider or some third person is only valid if:

(a) The consumer or service provider provides a copy of the agreement to the consumer’s insurer, sent to the location designated for receipt of such agreements if specified in the insurance policy, within 3 business days after the agreement’s execution;

(b) The agreement contains a provision allowing the consumer to rescind the agreement in a writing signed by the assignor, if the consumer provides written notice of the rescission to the service provider within 14 days of the execution of the agreement or at least 30 days after the execution of the agreement if the service provider has not begun substantial work on the property;

(c) The agreement does not impose any fee or penalty for rescinding the agreement, for check processing, for not using a specified service provider for permanent repairs, or for mortgage processing;

(d) The agreement does not prevent or inhibit an insurer from communicating with the consumer at any time;

(e) The agreement, if made under a motor vehicle insurance policy for comprehensive or combined additional coverage for windshield damage, does not assign the right to more than $500 in post-loss benefits;

(f) The agreement does not transfer or create any authority to adjust, negotiate, or settle any portion of a claim to a person or an entity who is not authorized to adjust, negotiate, or settle a claim on behalf of the insured or claimant under part VI of chapter 626;

(g) The agreement does not transfer to the assignee any greater right to attorney fees and costs from the insurer than the right to attorney fees and costs as provided for in subsection (4);