HB 1D — Property Insurance

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D RAP program layer aggregate limit deferred from 2022-2023.

The preliminary RAP qualification ratio shall be based on the 2021-2022 contract year's company premiums,premiums as of December 31, 2021, adjusted to 90 percent based on the 2022-2023 contract year coverage selections.

The RAP qualification ratio shall be based on the reported 2022-2023 contract year company premiums,premiums as of December 31, 2022, adjusted to 90 percent.

(l) "RAP retention" means the amount of losses below which Page 9of 6163 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D a RAP insurer is not entitled to reimbursement under the RAP program.

Page 10 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 2.

The RAP reimbursement contract shall be executed no later than:

(d) The board shall calculate and report to each RAP insurer the RAP payout multiples as the ratio of the RAP Page 11 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D industry limit of $2 billion for the 2022-2023 contract year, or the deferred limit for the 2022-2023 contract year, to the mandatory FHCF retention multiplied by the mandatory FHCF retention multiples divided by the RAP qualification ratio.

Page 12 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 3.

Page 13 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 2.

(6) PARTICIPATION DEFERRAL.— (a) A RAP insurer that has any private reinsurance withinthat theduplicates RAP layercoverage ofsuch coverageinsurer would receive for the 2022-20232022- 2023 contract year shall notify the board in writing of such duplicative coverage no later than June 30, 2022.

(8) CLAIMS-PAYING CAPACITY.—The RAP program shall not affectPage the14 claims-payingof63 capacityCODING: of the FHCF as provided in s.

Page 14 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 215.555(4)(c)1.affect the claims-paying capacity of the FHCF as provided in s.

215.555(4)(c)1.

(12) RULEMAKING.—The board may adopt such rules as are reasonable and necessary to implement this section,section. and it is the intent of the Legislature that all rules adopted to Page 15 of61 CODING:

In addition, the board may adopt emergency rules, Page 15 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D implement this section will be done as emergency rules pursuant to s.

120.54(4).120.54, at any time, as are necessary to implement this section for the 2022-2023 fiscal year.

The Legislature finds that such emergency rulemaking power is necessary in order to address a critical need in the state's problematic property insurance market.

The Legislature further finds that the uniquely short timeframe needed to effectively implement this section for the 2022-2023 fiscal year requires that the board adopt rules as quickly as practicable.

Therefore, in adopting such emergency rules, the board need not make the findings required by s.

120.54(4)(a).

Emergency rules adopted under this section are exempt from s.

120.54(4)(c) and shall remain in effect until replaced by rules adopted under the nonemergency rulemaking procedures of chapter 120, which must occur no later than July 1, 2023.

Upon receiving such notice, the Executive Office of the Governor shall instruct the Chief Financial Officer to draw a warrant from the General Revenue Fund for a transfer to the board for the RAP program in thePage amount16 requested.of63 CODING:

The Executive Office of the Governor shall provide written notification to the chair and vice chair of the Legislative Budget Commission at least 3 days before the effective date of the warrant.

Cumulative transfers authorized under this paragraph may not exceed $2 billion.

(b) If General Revenue Funds are transferred to the board for the RAP program under paragraph (a), the board shall submit written notice to the Executive Office of the Governor that funds will be necessary for the administration of the RAP program and post-event examinations for covered events that require RAP coverage.

The initial notice, and any subsequent requests, must specify the amount necessary for administration Page 16 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D of the RAPamount programrequested. and post-event examinations.

The Executive Office of the Governor shall provide written notification to the chair and vice chair of the Legislative Budget Commission at least 3 days before the effective date of the warrant.

Cumulative transfers authorized under this paragraph may not exceed $2 billion.

(b) If general revenue funds are transferred to the board for the RAP program under paragraph (a), the board shall submit written notice to the Executive Office of the Governor that funds will be necessary for the administration of the RAP program and post-event examinations for covered events that require RAP coverage.

The initial notice, and any subsequent requests, must specify the amount necessary for administration of the RAP program and post-event examinations.

(c) No later than January 31, 2023, and quarterly thereafter, the board shall submit a report to the Executive Office of the Governor, the President of the Senate, and the Speaker of the House of Representatives detailing any reimbursementsPage of17 theof63 RAPCODING: program, all loss development projections, the amount of RAP reimbursement coverage deferred until the 2023-2024 contract year, and detailed information about administrative and post-event examination expenditures.

(14) EXPIRATION DATE.—If no General Revenue Funds have been transferred to the board for the RAP program under subsection (13) by June 30, 2025, this section expires on July 1, 2025.

If General Revenue Funds have been transferred to the board for the RAP program under subsection (13) by June 30, 2025, this section expires on July 1, 2029, and all unencumbered RAP program funds shall be transferred by the board back to the General Revenue Fund unallocated.

Page 17 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D Sectionreimbursements 2.of the RAP program, all loss development projections, the amount of RAP reimbursement coverage deferred until the 2023-2024 contract year, and detailed information about administrative and post-event examination expenditures.

(14) EXPIRATION DATE.—If no general revenue funds have been transferred to the board for the RAP program under subsection (13) by June 30, 2025, this section expires on July 1, 2025.

If general revenue funds have been transferred to the board for the RAP program under subsection (13) by June 30, 2025, this section expires on July 1, 2029, and all unencumbered RAP program funds shall be transferred by the board back to the General Revenue Fund unallocated.

Section 2.

215.5551, Florida Statutes, shall reduce its rates to reflect the cost savings realized by participating in the program through a rate filing with the OfficePage of18 Insuranceof63 RegulationCODING: or by amending a pending rate filing.

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D Office of Insurance Regulation or by amending a pending rate filing.

Effective July 1, 2022, paragraph (d) of subsection (1), paragraphs (a) and (b) of subsection (2),(2) and subsection (10) of section 215.5586, Florida Statutes, are amended to read:

The department shall provide fiscal Pageaccountability, 18contract of61management, CODING:and strategic leadership for the program, consistent with this section.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D accountability, contract management, and strategic leadership for the program, consistent with this section.

(1)(2) HURRICANE MITIGATION INSPECTIONS.—GRANTS.—Financial (d)grants Anshall applicationbe forused anto inspectionPage must19 contain:of63 CODING:

1.

A provision requiring the applicant to make his or her home available for inspection once a mitigation project is completed;

and 2.

A signed or electronically verified statement made under penalty of perjury that the applicant has submitted only a single application for that home.

(2) MITIGATION GRANTS.—Financial grants shall be used to encourage single-family, site-built, owner-occupied, residential property owners to retrofit their properties to make them less vulnerable to hurricane damage.

Page 19 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D (a)encourage Forsingle-family, asite-built, homeownerowner-occupied, residential property owners to beretrofit eligibletheir forproperties ato grant,make thethem followingless criteriavulnerable mustto behurricane met:damage.

(a) For a homeowner to be eligible for a grant, the following criteria must be met:

An6. application for a grant must contain a signed or electronically verified statement made under penalty of perjury that the applicant has submitted only a single application and must have attached documents demonstrating the applicant meets the requirements of this paragraph.

(b)The Allhomeowner grants must beagree matchedto onmake thehis basisor ofher $1home providedavailable by the applicant for $2inspection providedonce by the state a dollar-for-mitigation Pageproject 20is of61completed. CODING:

An application for a grant must contain a signed or electronically verified statement made under penalty of perjury Page 20 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D dollarthat basisthe upapplicant tohas asubmitted maximumonly statea contributionsingle totalapplication ofand $10,000must towardhave forattached thedocuments actualdemonstrating cost of the mitigationapplicant projectmeets with the state'srequirements contributionof notthis toparagraph. exceed $5,000.

(b) All grants must be matched on the basis of $1 provided by the applicant for $2 provided by the state a dollar-for- dollar basis up to a maximum state contribution total of $10,000 toward for the actual cost of the mitigation project with the state's contribution not to exceed $5,000.

The department shall submit budget amendments requesting release of the funds held in reserve pursuant to chapterPage 216,21 Floridaof63 Statutes.CODING:

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D chapter 216, Florida Statutes.

Page(b) 21One of61hundred CODING:fifteen million dollars for mitigation grants.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D (b) One hundred fifteen million dollars for mitigation grants.

(4) ThisThe sectiondepartment shallmay expireadopt Octoberemergency 1,rules 2024.pursuant to s.

120.54, Florida Statutes, at any time, as are necessary to implement this section and s.

215.5586, Florida Statutes, as amended by this act.

The Legislature finds that such emergency rulemaking authority is necessary to address a critical need in the state's problematic property insurance market.

The Legislature further finds that the uniquely short timeframe needed to effectively implement this section for the 2022-2023 fiscal year requires that the department adopt rules as quickly Page 22 of63 CODING:

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D as practicable.

Therefore, in adopting such emergency rules, the department need not make the findings required by s.

120.54(4)(a), Florida Statutes.

Emergency rules adopted under this section are exempt from s.

120.54(4)(c), Florida Statutes, and shall remain in effect until replaced by rules adopted under the nonemergency rulemaking procedures of chapter 120, Florida Statutes, which must occur no later than July 1, 2023.

(5) This section shall expire October 1, 2024.

Page2. 22 of61 CODING:

It is insurance fraud punishable as a felony of the third degree for a contractor to knowingly or willfully, and with intent to injure, defraud, or deceive, pay, waive, or rebate all or part of an insurance deductible applicable to Page 23 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 2.payment to the contractor for repairs to a property covered by a property insurance policy;

It is insurance fraud punishable as a felony of the third degree for a contractor to knowingly or willfully, and with intent to injure, defraud, or deceive, pay, waive, or rebate all or part of an insurance deductible applicable to payment to the contractor for repairs to a property covered by a property insurance policy;

Page(a) 23Aggregate of61information CODING:may include information asserted as trade secret information unless the trade secret information can be individually extrapolated, in which case the trade secret information remains protected as provided under s.

624.4213.

Page 24 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D (a)(b) AggregateThe informationoffice mayshall includepublish informationall assertedorders, asdata traderequired secretby information unless the trade secret information can be individually extrapolated, in which case the trade secret information remains protected as provided under s.

624.4213.627.915(2), reports required by s.

(b) The office shall publish all orders, data required by ss.

624.313, 624.315, and 627.915, reports required by s.

624.313 Publications.— (1) As early as reasonably possiblepossible, and no later than July 1 of each year, the office shall annually have printed and made available a statistical report which must include all of the following information on either a calendar year or fiscal year basis:

(e) The ratio of premiums earned to losses incurred by Pageline 24of of61insurance. CODING:

(f) The market share of the 10 largest insurers or insurer groups by line of insurance and of each insurer or insurer group that has a market share of at least 1 percent of a line of insurance in this state.

Page 25 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D (g) The profitability of each major line of insurance.

(f) The market share of the 10 largest insurers or insurer groups by line of insurance and of each insurer or insurer group that has a market share of at least 1 percent of a line of insurance in this state.

(g) The profitability of each major line of insurance.

Paragraph (c) of subsection (1) and paragraph (n) of subsection (2) of section 624.315, Florida Statutes, isare amended to read:

Page624.315 25Department; of61 CODING:

annual report.— (1) As early as reasonably possible, the office, with such assistance from the department as requested, shall annually prepare a report to the Speaker and Minority Leader of the House of Representatives, the President and Minority Leader of the Page 26 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 624.315Senate, Department;the chairs of the legislative committees with jurisdiction over matters of insurance, and the Governor showing, with respect to the preceding calendar year:

annual(c) report.—Names (1) As early as reasonably possible, the office, with such assistance from the department as requested, shall annually prepare a report to the Speaker and Minority Leader of theinsurers Houseagainst ofwhich Representatives,delinquency theor Presidentsimilar andproceedings Minoritywere Leaderinstituted. of the Senate, the chairs of the legislative committees with jurisdiction over matters of insurance, and the Governor showing, with respect to the preceding calendar year:

(c)For Namesproperty of insurers againstfor which delinquency or similar proceedings were instituted, includingthe annual report must also include the date that each insurer was deemed impaired of capital or surplus, as the terms impairment"impairment of capitalcapital" and impairment"impairment of surplussurplus" are defined in s.

631.011, or insolvent, as the term insolvency"insolvency" is defined in s.

631.011;631.011;,and a concise statement of the circumstances that led to each insurer's delinquency;

and a concise statement of the circumstances that led to each insurer's delinquency;

Reports relating to the health of the homeowners' and condominium unit owners' insurance market must include the percentage of policies written by voluntary carriers, the Pagepercentage 26of of61policies CODING:written by the Citizens Property Insurance Corporation, and any trends related to the relative shares of the voluntary and residual markets.

Page 27 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D percentageSection of10. policies written by the Citizens Property Insurance Corporation, and any trends related to the relative shares of the voluntary and residual markets.

Section 10.

Page6.(f) 27Number of61of CODING:new policies written.

7.(g) Total dollar value of structure exposure under policies that include wind coverage.

Page 28 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 6.(f)8.(h) Number of new policies written.that exclude wind coverage.

7.(g) Total dollar value of structure exposure under policies that include wind coverage.

8.(h) Number of policies that exclude wind coverage.

626.9373 Attorney fees.— (1) Upon the rendition of a 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, the trial court or, if the insured or beneficiary prevails on appeal, the appellate court, shall adjudge or decree against the insurer in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or beneficiary's attorney prosecuting the lawsuit for Pagewhich 28recovery of61is CODING:awarded.

In a suit arising under a residential or commercial property insurance policy not brought by an assignee, the amount of reasonable attorney fees shall be Page 29 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D whichawarded recoveryonly isas awarded.provided in s.

In a suit arising under a residential or commercial property insurance policy not brought by an assignee, the amount of reasonable attorney fees shall be awarded only as provided in s.

In a suit arising under a residential or commercial property insurance Pagepolicy 29not of61brought CODING:by an assignee, the amount of reasonable attorney fees shall be awarded only as provided in s.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D policy not brought by an assignee, the amount of reasonable attorney fees shall be awarded only as provided in s.

(2)Page As30 toof63 suitsCODING: based on claims arising under life insurance policies or annuity contracts, no such attorney fees shall be allowed if such suit was commenced prior to expiration of 60 days after proof of the claim was duly filed with the insurer.

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D (2) As to suits based on claims arising under life insurance policies or annuity contracts, no such attorney fees shall be allowed if such suit was commenced prior to expiration of 60 days after proof of the claim was duly filed with the insurer.

deductibles.— (2) Unless the office determines that the deductible provision is clear and unambiguous, a property insurer may not issue an insurance policy or contract covering real property in Pagethis 30state of61which CODING:contains a deductible provision that:

(c) Applies solely to a roof loss as provided in subsection (10).

Page 31 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D this(4) state(d)1. which contains a deductible provision that:

(c) Applies solely to a roof loss as provided in subsection (10).

(4) (d)1.

An insurer shall keep the original copy of the signed Pagestatement 31required of61by CODING:this paragraph, electronically or otherwise, and provide a copy to the policyholder providing the signed statement.

A signed statement meeting the requirements of Page 32 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D statement required by this paragraph,paragraph electronicallycreates ora otherwise,presumption andthat providethere awas copyan toinformed, theknowing policyholderelection providingof thecoverage. signed statement.

A signed statement meeting the requirements of this paragraph creates a presumption that there was an informed, knowing election of coverage.

(7) Prior to issuing a personal lines residential property insurance policy on or after April 1, 1997, or prior to the first renewal of a residential property insurance policy on or after April 1, 1997, the insurer must offer a deductible equal Page 3233 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D insurance policy on or after April 1, 1997, or prior to the first renewal of a residential property insurance policy on or after April 1, 1997, the insurer must offer a deductible equal to $500 applicable to losses from perils other than hurricane.

Page4. 33 of61 CODING:

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D 4.

The roof deductible does not apply to any of the followingPage events:34 of63 CODING:

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D following events:

(c) At the time of renewal, an insurer may add a separate roof deductible to a personal lines residential property insurance policy if the insurer provides a notice of change in Pagepolicy 34terms of61pursuant CODING:to s.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D policy terms pursuant to s.

To reject a separate roof deductible, thePage policyholder35 shallof63 signCODING: a form approved by the office.

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D the policyholder shall sign a form approved by the office.

The insurer shall pay any remaining Pageamounts 35necessary of61to CODING:perform such repairs as work is performed and expenses are incurred.

However, if a roof deductible under s.

627.701(10) is applied to the insured loss, the insurer may Page 36 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D amountslimit necessarythe claim payment as to performthe suchroof repairsto asthe workactual iscash performedvalue andof expensesthe areloss incurred.to the roof until the insurer receives reasonable proof of payment by the policyholder of the roof deductible.

However, if a roof deductible under s.

627.701(10) is applied to the insured loss, the insurer may limit the claim payment as to the roof to the actual cash value of the loss to the roof until the insurer receives reasonable proof of payment by the policyholder of the roof deductible.

Any other individual or entity recognized by the insurer as possessing the necessary qualifications to properly complete a general inspection of a residential structure insured Pagewith 36a of61homeowner's CODING:insurance policy.

(b) An insurer may not refuse to issue or refuse to renew a homeowner's policy insuring a residential structure with a Page 37 of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D withroof athat homeowner'sis insuranceless policy.than 15 years old solely because of the age of the roof.

(b) An insurer may not refuse to issue or refuse to renew a homeowner's policy insuring a residential structure with a roof that is less than 15 years old solely because of the age of the roof.

(d) ThisFor subsectionpurposes appliesof tothis homeowners'subsection, insurancea policiesroof's issuedage shall be calculated using the last date for which 100 percent of the roof's surface area was built or renewedreplaced onin accordance with the building code in effect at that time or afterthe Julyinitial 1,date 2022.of a partial roof replacement when subsequent partial roof builds or replacements were completed that resulted in 100 percent of the roof's surface area being built or replaced.

(e) This subsection applies to homeowners' insurance policies issued or renewed on or after July 1, 2022.

627.70131 Insurer's duty to acknowledge communications regardingPage claims;38 of63 CODING:

investigation.— (3)(a) Unless otherwise provided by the policy of insurance or by law, within 14 days after an insurer receives proof of loss statements, the insurer shall begin such Page 37 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D investigationregarding asclaims; is reasonably necessary unless the failure to begin such investigation is caused by factors beyond the control of the insurer which reasonably prevent the commencement of such investigation.

investigation.— (3)(a) Unless otherwise provided by the policy of insurance or by law, within 14 days after an insurer receives proof of loss statements, the insurer shall begin such investigation as is reasonably necessary unless the failure to begin such investigation is caused by factors beyond the control of the insurer which reasonably prevent the commencement of such investigation.

After receiving such a request from the policyholder, the insurer must send any such detailed estimate to the policyholder within the later of 7 days after the insurer received the request or 7 days after the detailed estimate of the amount of the loss is Page 3839 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D receiving such a request from the policyholder, the insurer must send any such detailed estimate to the policyholder within the later of 7 days after the insurer received the request or 7 days after the detailed estimate of the amount of the loss is completed.

Any payment of an initial or supplemental claim or portion of such claim made 90 days after the insurer receives notice of the claim, or made more than 15 days after there are no longer factors beyond the control of the insurer which reasonably prevented such payment, whichever is later, bearsPage interest40 atof63 theCODING: rate set forth in s.

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D bears interest at the rate set forth in s.

If Pagethere 39is of61a CODING:right to prejudgment interest, the insured must shall select whether to receive prejudgment interest or interest under this subsection.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D there is a right to prejudgment interest, the insured must shall select whether to receive prejudgment interest or interest under this subsection.

(8) ATTORNEY FEES.— (a)Page In41 aof63 suitCODING: arising under a residential or commercial property insurance policy not brought by an assignee, the amount of reasonable attorney fees and costs under s.

626.9373(1) or s.

627.428(1) shall be calculated and awarded as follows:

Page 40 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 1.(a) In a suit arising under a residential or commercial property insurance policy not brought by an assignee, the amount of reasonable attorney fees and costs under s.

626.9373(1) or s.

627.428(1) shall be calculated and awarded as follows:

1.

(b) In a suit arising under a residential or commercial property insurance policy not brought by an assignee, if a court dismisses a claimant's suit pursuant to subsection (5), the courtPage may42 notof63 awardCODING: to the claimant any incurred attorney fees for services rendered before the dismissal of the suit.

When a claimant's suit is dismissed pursuant to subsection (5), the court may award to the insurer reasonable attorney fees and Page 41 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D costscourt associatedmay withnot securingaward to the dismissal.claimant any incurred attorney fees for services rendered before the dismissal of the suit.

When a claimant's suit is dismissed pursuant to subsection (5), the court may award to the insurer reasonable attorney fees and costs associated with securing the dismissal.

The Homeowner Claims Bill of Rights does not create a civil cause of action by any individual policyholder or class of policyholders againstPage an43 insurerof63 orCODING: insurers.

The failure of an insurer to properly deliver the Homeowner Claims Bill of Rights is subject to administrative enforcement by the office but is not admissible as evidence in a civil action against an insurer.

The Page 42 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D Homeowneragainst Claimsan Billinsurer of Rights does not enlarge, modify, or contraveneinsurers. statutory requirements, including, but not limited to, ss.

The failure of an insurer to properly deliver the Homeowner Claims Bill of Rights is subject to administrative enforcement by the office but is not admissible as evidence in a civil action against an insurer.

The Homeowner Claims Bill of Rights does not enlarge, modify, or contravene statutory requirements, including, but not limited to, ss.

YOUPage HAVE44 THEof63 RIGHTCODING: TO:

1.

Receive from your insurance company an acknowledgment of your reported claim within 14 days Page 43 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D afterYOU theHAVE timeTHE youRIGHT communicatedTO: the claim.

1.

Receive from your insurance company an acknowledgment of your reported claim within 14 days after the time you communicated the claim.

The interest, if applicable, must bePage paid45 whenof63 yourCODING: claim or the undisputed portion of your claim is paid.

5.

Free mediation of your disputed claim by the Florida Department of Financial Services, Division of Page 44 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D Consumerbe Services,paid underwhen mostyour circumstancesclaim andor subjectthe toundisputed certainportion restrictions.of your claim is paid.

5.

Free mediation of your disputed claim by the Florida Department of Financial Services, Division of Consumer Services, under most circumstances and subject to certain restrictions.

Contact your insurance company before entering into any contract for repairs to confirm any managed repair policy provisions or optional preferred vendors.Page 46 of63 CODING:

3.

Make and document emergency repairs that are necessary to prevent further damage.

Keep the damaged property, if feasible, keep all receipts, and take Page 45 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D photographsvendors. or video of damage before and after any repairs to provide to your insurer.

3.

Make and document emergency repairs that are necessary to prevent further damage.

Keep the damaged property, if feasible, keep all receipts, and take photographs or video of damage before and after any repairs to provide to your insurer.

Subsection (1), paragraph (a) of subsection (2), subsection (8), paragraph (a) of subsection (9), and subsectionPage (10)47 ofof63 sectionCODING: 627.7152, Florida Statutes, are amended to read:

627.7152 Assignment agreements.— Page 46 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D (1)subsection As(10) usedof insection this627.7152, section,Florida theStatutes, term:are amended to read:

627.7152 Assignment agreements.— (1) As used in this section, the term:

(e) "Judgment obtained" means damages recovered, if any, but does not include any amount awarded for attorney fees, costs,Page or48 interest.of63 CODING:

(f) "Presuit settlement demand" means the demand made by the assignee in the written notice of intent to initiate Page 47 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D litigationcosts, asor requiredinterest. by paragraph (9)(a).

(f) "Presuit settlement demand" means the demand made by the assignee in the written notice of intent to initiate litigation as required by paragraph (9)(a).

a.Page 49 of63 CODING:

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 Page 48 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D b.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 b.

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 HASPage NOT50 BEGUNof63 SUBSTANTIALCODING: WORK ON THE PROPERTY.

HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS Page 49 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D RESCINDED.HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY.

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

The notice must be served by certified mail, return receipt requested, to the name and mailing address designated by the insurer in the policy forms or by electronic delivery to the e-mail address designated by the insurer in the policy forms at least 10 business days before filing suit, but may not be served before Page 5051 of61of63 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D policy forms or by electronic delivery to the e-mail address designated by the insurer in the policy forms at least 10 business days before filing suit, but may not be served before the insurer has made a determination of coverage under s.

3.Page 52 of63 CODING:

At least 50 percent of the disputed amount, the assignee is entitled to an award of reasonable attorney fees.

(b) If the insurer fails to inspect the property or Page 51 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D provide3. written or oral authorization for repairs within 7 calendar days after the first notice of loss, the insurer waives its right to an award of attorney fees under this subsection.

At least 50 percent of the disputed amount, the assignee is entitled to an award of reasonable attorney fees.

(b) If the insurer fails to inspect the property or provide written or oral authorization for repairs within 7 calendar days after the first notice of loss, the insurer waives its right to an award of attorney fees under this subsection.

627.7154Page Property53 Insuranceof63 StabilityCODING: Unit;

duties and required reports.— (1) An insurer stability unit is created within the office Page 52 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D to627.7154 aidProperty in the detection and prevention of insurer insolvenciesstability inunit; the homeowners' and condominium unit owners' insurance market.

duties and required reports.— (1) A property insurer stability unit is created within the office to aid in the detection and prevention of insurer insolvencies in the homeowners' and condominium unit owners' insurance market.

The following responsibilities are limited only to matters related to homeowners' and condominium unit owners' insurance.

(c) Have primary responsibility to conduct annual catastrophe stress tests of all domestic insurers and insurers thatPage are54 commerciallyof63 domiciledCODING: in this state.

1.

The insurer stability unit shall cooperate with the Florida Commission on Hurricane Loss Projection Methodology to select the hurricane scenarios that are used in the annual catastrophe stress test.

Page 53 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 2.that are commercially domiciled in this state.

1.

The insurer stability unit shall cooperate with the Florida Commission on Hurricane Loss Projection Methodology to select the hurricane scenarios that are used in the annual catastrophe stress test.

2.

(f) On January 1 and July 1 of each year, provide a report on the status of the homeowners' and condominium unit owners' insurance market to the Governor, the President of the Senate, the Speaker of the House of Representatives, the Minority Leader of the Senate, the Minority Leader of the House of Representatives,Page and55 theof63 chairsCODING: of the legislative committees with jurisdiction over matters of insurance showing:

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D Representatives, and the chairs of the legislative committees with jurisdiction over matters of insurance showing:

Percentage of homeowners and condominium unit owners Pagewho 54obtain of61insurance CODING:in the voluntary market.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D who obtain insurance in the voluntary market.

The number of referrals to the insurer stability unit whichPage were56 deemedof63 appropriateCODING: for enhanced monitoring, including the reason for the monitoring.

10.

The name of any insurer against which delinquency proceedings were instituted, including the grounds for rehabilitation pursuant to s.

631.051 and the date that each Page 55 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D insurerwhich waswere deemed impairedappropriate offor capitalenhanced ormonitoring, surplus,including as the termsreason impairmentfor ofthe capitalmonitoring. and impairment of surplus are defined in s.

631.011,10. or insolvent, as the term insolvency is defined in s.

The name of any insurer against which delinquency proceedings were instituted, including the grounds for rehabilitation pursuant to s.

631.051 and the date that each insurer was deemed impaired of capital or surplus, as the terms "impairment of capital" and "impairment of surplus" are defined in s.

631.011, or insolvent, as the term "insolvency" is defined in s.

(b) There is reason to believe that an insurer who is authorized to sell homeowners' or condominium unit owners' insurancePage in57 thisof63 stateCODING: has engaged in an unfair trade practice under part IX of chapter 626.

(c) A market conduct examination determines that an insurer has exhibited a pattern or practice of willful violations of an unfair insurance trade practice related to Page 56 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D claims-handlinginsurance whichin causedthis harmstate tohas policyholders,engaged asin prohibitedan byunfair s.trade practice under part IX of chapter 626.

(c) A market conduct examination determines that an insurer has exhibited a pattern or practice of willful violations of an unfair insurance trade practice related to claims-handling which caused harm to policyholders, as prohibited by s.

has exceeded its powers in a manner as described in s.Page 58 of63 CODING:

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D s.

624.424 Pageand 57627.915 of61which CODING:is misleading or contains material errors.

Words strickenare deletions;

words underlined are additions.

hb0001d-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1D 2022D and 627.915 which is misleading or contains material errors.

(m) An insurer authorized to sell homeowners' or condominiumPage unit59 owners'of63 insuranceCODING: in this state is party to a reinsurance agreement that does not create a meaningful transfer of risk of loss to the reinsurer, pursuant to s.

624.610(14).

(n) Citizens Property Insurance Corporation is required to absorb policies from an insurer that participated in the Page 58 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D corporation'scondominium depopulationunit programowners' authorizedinsurance byin this state is party to a reinsurance agreement that does not create a meaningful transfer of risk of loss to the reinsurer, pursuant to s.

624.610(14).

(n) Citizens Property Insurance Corporation is required to absorb policies from an insurer that participated in the corporation's depopulation program authorized by s.

631.031 Initiation and commencement of delinquency proceeding.— (1) Upon a determination by the office that one or more grounds for the initiation of delinquency proceedings exist pursuant to this chapter and that delinquency proceedings must bePage initiated,60 theof63 DirectorCODING: of the Office of Insurance Regulation shall notify the department of such determination and shall provide the department with all necessary documentation and evidence.

Notification by the office must include an affidavit that identifies the grounds for rehabilitation pursuant to s.

Page 59 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D 631.051;be initiated, the Director of the Office of Insurance Regulation shall notify the department of such determination and shall provide the department with all necessary documentation and evidence.

If the datedirector thatmust eachnotify insurerthe wasdepartment deemedof impaireda ofdetermination capitalregarding ora surplus,property asinsurer, the termsnotification impairmentmust ofinclude capitalan andaffidavit impairmentthat ofidentifies surplusthe aregrounds definedfor inrehabilitation pursuant to s.

631.011,631.051; or insolvent, as the term insolvency is defined in s.

the date that each insurer was deemed impaired of capital or surplus, as the terms "impairment of capital" and "impairment of surplus" are defined in s.

631.011, or insolvent, as the term "insolvency" is defined in s.

(b) For an insolvency involving a domestic property insurer,Page the61 departmentof63 shall:CODING:

1.

Begin an analysis of the history and causes of the insolvency no later than the initiation of delinquency proceedings pursuant to s.

631.031.

2.

Submit an initial report analyzing the history and causes of the insolvency to the Governor, the President of the Page 60 of61 CODING:

hb0001d-00hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB1DCS/HB1D 2022D Senate,insurer, the Speakerdepartment ofshall: the House of Representatives, and the office.

The1. initial report must be submitted no later than 2 months after the initiation of the delinquency proceeding.

Begin an analysis of the history and causes of the insolvency once the department is appointed by the court as receiver.

2.

Submit an initial report analyzing the history and causes of the insolvency to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the office.

The initial report must be submitted no later than 4 months after the department is appointed as receiver.

The report may not be used as evidence in any proceeding brought by the department or others to recover assets on behalf of the receivership estate as part of its duties under s.

631.141(8).

The submission of a report under this subparagraph shall not be considered a waiver of any evidentiary privilege the department may assert under state or federal law.

Provide a special report to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the office,office within 10 days upon identifying any condition or practice that may lead to insolvency in the property insurance marketplace.

Submit a final report analyzing the history and causes of the insolvency and the review of the Officeoffice's of Insurance Regulation's regulatory oversight of the insurer to the Governor, the President of the Senate,Page the62 Speakerof63 ofCODING: the House of Representatives, and the office within 30 days of the conclusion of the insolvency proceeding.

Words strickenare deletions;

words underlined are additions.

hb0001d-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB1D 2022D Senate, the Speaker of the House of Representatives, and the office within 30 days of the conclusion of the insolvency proceeding.

Review the Officeoffice's of Insurance Regulation's regulatory oversight of the insurer.

Page 6163 of61of63 CODING:

hb0001d-00hb0001d-01-c1