SB 76 — Insurance

(b) The term does not include:

1. Paid services as a spokesperson used as part of a written or an electronic advertisement.

2. Paid services as a photographer or videographer used to capture images of damage.

3. Paid services to inventory personal property or business personal property.

4. Discussion or explanation of a bid for construction or repair services by a licensed contractor under part I of chapter 489, or a subcontractor for a licensed contractor, with a property owner or the insurer of the property.

(2) Except for a duly licensed attorney at law as exempted under s.

626.860 or an agent as exempted under s.

626.862, a person may not provide claims adjusting services unless licensed and appointed as an adjuster under this part.

(3) The department may take administrative action and impose fines against any persons performing claims adjusting, soliciting, marketing, or any other services under this section or s.

626.854 without the licensure required under s.

626.112 or s.

626.854.

Section 3. Subsections (3) and (4) are added to section 626.9373, Florida Statutes, to read:

626.9373 Attorney’s fees.— (3) In an award of attorney fees under this section for a claim arising under a property insurance policy, a strong presumption is created that a lodestar fee is sufficient and reasonable.

Such presumption may be rebutted only in a rare and exceptional circumstance with evidence that competent counsel could not be retained in a reasonable manner.

(4)(a) As used in this subsection, the term:

1. “Claimant” means an insured or assignee who is filing suit under a property insurance policy.

2. “Demand” means the specific amount alleged to be owed by the insurer to the claimant under the property insurance policy.

3. “Demand-judgment quotient” means the quotient obtained by dividing the judgment by the demand.

4. “Incurred attorney fees” means the total amount of attorney fees supported by sufficient evidence and determined by the court to have been incurred by the claimant in bringing the action.

5. “Judgment” means damages recovered, if any, but does not include any amount awarded for attorney fees, costs, or interest.

(b) Notwithstanding any other provision of law, in a suit arising under a residential or commercial property insurance policy, attorney fees and costs may be recovered by a claimant only pursuant to s.

57.105 and this subsection.

Attorney fees may be awarded to a claimant under this section as follows:

1. If the demand-judgment quotient is greater than or equal to 0.8, the full amount of incurred attorney fees may be awarded.

2. If the demand-judgment quotient is equal to or greater than 0.2 but less than 0.8, the attorney fees must equal the product of multiplying the incurred attorney fees by the demand judgment quotient.

3. If the demand-judgment quotient is less than 0.2, attorney fees may not be awarded.

Section 4. Subsection (4) is added to section 627.428, Florida Statutes, to read:

Section 5. Paragraphs2. Paragraph (f),(f) (g),is and (h) are added to subsection (5) of section 627.7011, Florida Statutes, to read:

22597 “PLEASE DISCUSS WITH YOUR INSURANCE AGENT.

PLEASE DISCUSS WITH YOUR INSURANCE AGENT.” 233105 5. Allow for all actuarially sound methods of s.

239111 A roof surface reimbursement schedule may not be applied to a roof if there is a total loss to a primary structure in accordance with the valued policy law under s.

(g) ProhibitSection an3. Section insurer627.70132, thatFlorida providesStatutes, roofis reimbursementamended onto theread: basis of a roof surface reimbursement schedule from also offering roof reimbursement on the basis of replacement costs.

(h) Prohibit an insurer, notwithstanding paragraph (1)(a), from providing coverage on a personal lines residential property insurance policy by limiting coverage for a roof to a stated value sublimit of coverage.

A stated value sublimit of coverage may not be applied to a roof if there is a total loss to the primary structure in accordance with the valued policy law under s.

627.702 which is caused by a covered peril.

Section 6. Section 627.70132, Florida Statutes, is amended to read:

624.604, including a property insurance policy issued by an eligible surplus lines insurer, for loss or damage caused by the peril of windstorm or hurricane is barred unless notice of the claim, supplemental claim, or reopened claim is was given to the insurer in accordance with the terms of the policy within 2 years 3 years after the date of loss hurricane first made landfall or the windstorm caused the covered damage.

Section 7. Subsection4. Subsection (9) of section 627.7015, Florida Statutes, is amended,amended and subsection (10) is added to that section, to read:

(10) ASection property5. Section insurance627.70152, policyFlorida mayStatutes, requireis thecreated policyholder as a first-party claimant and a third party as an assignee of the policy benefits to participateread: in mediation pursuant to this section if requested by the insurer.

Section 8. Section 627.70152, Florida Statutes, is created to read:

Section 9. Section6. Paragraphs 627.70153,(d) through (g) of subsection (1) and subsections (9) and (10) of section 627.7152, Florida Statutes, isare createdamended to read:

627.70153 Consolidation of residential property insurance actions.—Each party that is aware of ongoing multiple actions involving coverage provided under the same residential property insurance policy for the same property with the same owners must provide written notice to the court of the multiple actions.

Upon notification of any party, the court may order that the actions be consolidated and transferred to the court having jurisdiction based on the total amount in controversy of all consolidated claims.

If multiple cases are pending in circuit courts, the cases may be consolidated based on the date on which the first case was filed.

Section 10. Paragraphs (d) through (g) of subsection (1), paragraph (a) of subsection (2), and subsections (5), (9), and (10) of section 627.7152, Florida Statutes, are amended to read:

(2)(a) An assignment agreement must:

1. Be in writing and executed by and between the assignor and the assignee.

2. Contain a provision that allows the assignor to rescind the assignment agreement without a penalty or fee by submitting a written notice of rescission signed by the assignor to the assignee within 14 days after the execution of the agreement, at least 30 days after the date work on the property is scheduled to commence if the assignee has not substantially performed, or at least 30 days after the execution of the agreement if the agreement does not contain a commencement date and the assignee has not begun substantial work on the property.

3. Contain a provision requiring the assignee to provide a copy of the executed assignment agreement to the insurer and the named insured within 3 business days after the date on which the assignment agreement is executed or the date on which work begins, whichever is earlier.

Delivery of the copy of the assignment agreement to the insurer and the named insured may be made:

a. By personal service, overnight delivery, or electronic transmission, with evidence of delivery in the form of a receipt or other paper or electronic acknowledgment by the insurer or named insured, as applicable;

or b. To the location designated for the insurer’s receipt of such agreements as specified in the policy.

4. Contain a written, itemized, per-unit cost estimate of the services to be performed by the assignee.

5. Relate only to work to be performed by the assignee for services to protect, repair, restore, or replace a dwelling or structure or to mitigate against further damage to such property.

6. Contain the following notice in 18-point uppercase and boldfaced type:

528 YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH MAY RESULT IN LITIGATION AGAINST YOUR INSURER.

PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT.

YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY.

HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS RESCINDED.

THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR PROPERTY INSURANCE POLICY.

546 7. Contain a provision requiring the assignee to indemnify and hold harmless the assignor from all liabilities, damages, losses, and costs, including, but not limited to, attorney fees, should the policy subject to the assignment agreement prohibit, in whole or in part, the assignment of benefits.

(5) An assignment agreement and this section do not modify or eliminate:

(a) Any term, condition, or defense relating to any managed repair arrangement provided in the policy.

(b) The right of an insurer to communicate directly with the named insured if such insured is not represented by counsel.

Section 11. The7. This Supremeact Courtshall oftake Floridaeffect isJuly requested1, to2021. amend the Rules of Professional Conduct of the Rules Regulating The Florida Bar to require that, when a recovery judgment has been awarded in a residential or commercial residential property claim, each participating lawyer or law firm must provide closing statements itemizing the amount of the fee received by each participating lawyer or law firm, costs, and expenses to the Department of Financial Services.

Section 12. This act shall take effect July 1, 2021.