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CS for SB 2-D First Engrossed 20222De1 A bill to be entitled An act relating to property insurance;
Florida Senate - 2022 CS for SB 2-D By the Committee on Appropriations;
and Senator Boyd 576-00048-22D 20222Dc1 A bill to be entitled An act relating to property insurance;
providing that Page 1 of 54 CODING:
providing that Page 1 of 52 CODING:
CS for SB 2-D First Engrossed 20222De1 certain violations are violations of the insurance code;
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 certain violations are violations of the insurance code;
authorizing the board to adopt nonemergency rules and emergency rules;
authorizing the board to adopt rules;
providing legislative findings;
specifying conditions and limitations for any emergency rules adopted;
requiring the Department of Financial Services to Page 2 of 54 CODING:
requiring the Department of Financial Services to submit budget amendments;
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words underlined are additions.
CS for SB 2-D First Engrossed 20222De1 submit budget amendments;
authorizing the Department of Financial Services to adopt emergency rules;
providing for Page 2 of 52 CODING:
providing legislative findings;
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providing that such rules remain in effect until replaced by rules adopted using nonemergency rulemaking procedures;
words underlined are additions.
providing for expiration;
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 expiration;
revising conditions for the award of reasonable attorney fees to apply to all suits brought under residential or commercial property insurance policies, rather than Page 3 of 54 CODING:
revising conditions for the award of reasonable attorney fees to apply to all suits brought under residential or commercial property insurance policies, rather than those not brought by assignees;
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CS for SB 2-D First Engrossed 20222De1 those not brought by assignees;
limiting the transfer, assignment, or acquisition of rights to attorney fees in certain property insurance suits;
limiting the transfer, assignment, or Page 3 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 acquisition of rights to attorney fees in certain property insurance suits;
authorizing property insurers to limit certain roof Page 4 of 54 CODING:
authorizing property insurers to limit certain roof claim payments under certain circumstances;
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CS for SB 2-D First Engrossed 20222De1 claim payments under certain circumstances;
specifying the manner of calculating the age of certain roofs;
requiring insurers to conduct physical inspections for certain claims within a specified timeframe;
requiring insurers to conduct Page 4 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 physical inspections for certain claims within a specified timeframe;
specifying a timeframe during which and the addresses to which a notice of Page 5 of 54 CODING:
specifying a timeframe during which and the addresses to which a notice of intent must be served;
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words underlined are additions.
CS for SB 2-D First Engrossed 20222De1 intent must be served;
specifying events that trigger referrals to the unit;
specifying events that trigger referrals to Page 5 of 52 CODING:
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words underlined are additions.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 the unit;
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215.5551 Reinsurance to Assist Policyholders program.— (1) CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS Page 6 of 54 CODING:
215.5551 Reinsurance to Assist Policyholders program.— (1) CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS PROGRAM.—There is created the Reinsurance to Assist Policyholders program to be administered by the State Board of Administration.
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CS for SB 2-D First Engrossed 20222De1 PROGRAM.—There is created the Reinsurance to Assist Policyholders program to be administered by the State Board of Administration.
(c) “Covered event” means any one storm declared to be a hurricane by the National Hurricane Center, which storm causes insured losses in this state.
(c) “Covered event” means any one storm declared to be a Page 6 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 hurricane by the National Hurricane Center, which storm causes insured losses in this state.
For the 2023-2024 contract year, for RAP insurers that are subject to participation Page 7 of 54 CODING:
For the 2023-2024 contract year, for RAP insurers that are subject to participation deferral under subsection (6) and participate during the 2023- 2024 contract year, the RAP limit means the RAP insurer’s maximum payout, which is its share of the total amount of the RAP program layer aggregate limit deferred from 2022-2023.
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CS for SB 2-D First Engrossed 20222De1 deferral under subsection (6) and participate during the 2023- 2024 contract year, the RAP limit means the RAP insurer’s maximum payout, which is its share of the total amount of the 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, as of December 31, 2021, adjusted to 90 percent based on the 2022-2023 contract year coverage selections.
The preliminary RAP qualification ratio shall be Page 7 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 based on the 2021-2022 contract year’s company premiums, as of December 31, 2021, adjusted to 90 percent based on the 2022-2023 contract year coverage selections.
(l) “RAP retention” means the amount of losses below which a RAP insurer is not entitled to reimbursement under the RAP Page 8 of 54 CODING:
(l) “RAP retention” means the amount of losses below which a RAP insurer is not entitled to reimbursement under the RAP program.
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CS for SB 2-D First Engrossed 20222De1 program.
(b) The board shall provide a reimbursement layer of $2 billion below the FHCF retention prior to the third event dropdown of the FHCF retention set forth in s.
(b) The board shall provide a reimbursement layer of $2 Page 8 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 billion below the FHCF retention prior to the third event dropdown of the FHCF retention set forth in s.
March 1, 2023, for RAP insurers that are subject to Page 9 of 54 CODING:
March 1, 2023, for RAP insurers that are subject to participation deferral under subsection (6) and participate in the RAP program during the 2023-2024 contract year.
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CS for SB 2-D First Engrossed 20222De1 participation deferral under subsection (6) and participate in the RAP program during the 2023-2024 contract year.
(b) For the two covered events with the largest losses, the RAP reimbursement contract must contain a promise by the board to reimburse the RAP insurer for 90 percent of its losses from each covered event in excess of the insurer’s RAP retention, plus 10 percent of the reimbursed losses to cover loss adjustment expenses.
(b) For the two covered events with the largest losses, the RAP reimbursement contract must contain a promise by the board to reimburse the RAP insurer for 90 percent of its losses from Page 9 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 each covered event in excess of the insurer’s RAP retention, plus 10 percent of the reimbursed losses to cover loss adjustment expenses.
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1.
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CS for SB 2-D First Engrossed 20222De1 1.
The RAP industry retention for the 2022-2023 contract year is the FHCF’s industry retention minus $2 billion, prior to allocation to qualifying RAP insurers.
The RAP industry retention for the 2022-2023 contract year is the FHCF’s industry retention minus $2 billion, prior to Page 10 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 allocation to qualifying RAP insurers.
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1.
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CS for SB 2-D First Engrossed 20222De1 1.
624.404;
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 624.404;
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(b) A new participating insurer that begins writing covered policies in this state after June 1, 2022, is deemed to defer its RAP coverage to the 2023-2024 contract year.
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CS for SB 2-D First Engrossed 20222De1 (b) A new participating insurer that begins writing covered policies in this state after June 1, 2022, is deemed to defer its RAP coverage to the 2023-2024 contract year.
(9) INSOLVENCY OF RAP INSURER.— (a) The RAP reimbursement contract shall provide that in the event of an insolvency of a RAP insurer, the RAP program shall pay reimbursements directly to the applicable state guaranty fund for the benefit of policyholders in this state of the RAP insurer.
(9) INSOLVENCY OF RAP INSURER.— Page 12 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 (a) The RAP reimbursement contract shall provide that in the event of an insolvency of a RAP insurer, the RAP program shall pay reimbursements directly to the applicable state guaranty fund for the benefit of policyholders in this state of the RAP insurer.
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(12) RULEMAKING.—The board may adopt such rules as are reasonable and necessary to implement this section, and it is the intent of the Legislature that all rules adopted to implement this section will be done as emergency rules pursuant to s.
120.54(4).
(13) APPROPRIATION.— (a) Within 60 days after a covered event, the board shall submit written notice to the Executive Office of the Governor if the board determines that funds from the RAP program coverage Page 13 of 52 CODING:
CS for SB 2-D First Engrossed 20222De1 (12) RULEMAKING.—The board may adopt rules to implement this section.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 established by this section will be necessary to reimburse RAP insurers for losses associated with the covered event.
In addition, the board may adopt emergency rules, pursuant to s.
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.
(13) APPROPRIATION.— (a) Within 60 days after a covered event, the board shall submit written notice to the Executive Office of the Governor if the board determines that funds from the RAP program coverage established by this section will be necessary to reimburse RAP insurers for losses associated with the covered event.
The Executive Office of the Governor shall provide written notification to the chair and vice chair of the Page 14 of 54 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.
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CS for SB 2-D First Engrossed 20222De1 Legislative Budget Commission at least 3 days before the effective date of the warrant.
(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 reimbursements 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.
(c) No later than January 31, 2023, and quarterly Page 14 of 52 CODING:
(14) EXPIRATION DATE.—If no General Revenue Funds have been transferred to the board for the RAP program under subsection Page 15 of 54 CODING:
CS for SB 2-D First Engrossed 20222De1 (13) by June 30, 2025, this section expires on July 1, 2025.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 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 reimbursements 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.
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 Office of Insurance Regulation or by amending a pending rate filing.
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 Office of Insurance Regulation or by amending a pending rate Page 15 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 filing.
215.5586 My Safe Florida Home Program.—There is established within the Department of Financial Services the My Safe Florida Page 16 of 54 CODING:
215.5586 My Safe Florida Home Program.—There is established within the Department of Financial Services the My Safe Florida Home Program.
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CS for SB 2-D First Engrossed 20222De1 Home Program.
1.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 1.
The home must be located in the “wind-borne debris Page 17 of 54 CODING:
The home must be located in the “wind-borne debris region” as that term is defined in the Florida Building Code s.
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CS for SB 2-D First Engrossed 20222De1 region” as that term is defined in the Florida Building Code s.
(10) REPORTS.—The department shall make an annual report on the activities of the program that shall account for the use of state funds and indicate the number of inspections requested, the number of inspections performed, the number of grant applications received, and the number and value of grants approved, and the average annual amount of insurance premium discounts and total annual amount of insurance premium discounts homeowners received from insurers as a result of mitigation funded through the program.
(10) REPORTS.—The department shall make an annual report on Page 17 of 52 CODING:
The report shall be delivered to the President of the Senate and the Speaker of the House of Page 18 of 54 CODING:
CS for SB 2-D First Engrossed 20222De1 Representatives by February 1 of each year.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 the activities of the program that shall account for the use of state funds and indicate the number of inspections requested, the number of inspections performed, the number of grant applications received, and the number and value of grants approved, and the average annual amount of insurance premium discounts and total annual amount of insurance premium discounts homeowners received from insurers as a result of mitigation funded through the program.
The report shall be delivered to the President of the Senate and the Speaker of the House of Representatives by February 1 of each year.
(3) Any unexpended balance of funds from this appropriation remaining on June 30, 2023, shall revert and is appropriated to the Department of Financial Services for the 2023-2024 fiscal year for the same purpose.
(3) Any unexpended balance of funds from this appropriation Page 18 of 52 CODING:
(4) The department may adopt emergency rules 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 Page 19 of 54 CODING:
CS for SB 2-D First Engrossed 20222De1 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 as practicable.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 remaining on June 30, 2023, shall revert and is appropriated to the Department of Financial Services for the 2023-2024 fiscal year for the same purpose.
Therefore, in adopting such emergency rules, the department need not make the findings required by s.
(4) This section shall expire on October 1, 2024.
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 on October 1, 2024.
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 Page 20 of 54 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 payment to the contractor for repairs to a property covered by a property insurance policy;
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CS for SB 2-D First Engrossed 20222De1 property insurance policy;
Section 6.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 Section 6.
Paragraph (j) of subsection (1) of section Page 21 of 54 CODING:
Paragraph (j) of subsection (1) of section 624.313, Florida Statutes, is amended to read:
624.313 Publications.— (1) As early as reasonably possible, 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:
(j) An analysis of such lines or kinds of insurance for Page 20 of 52 CODING:
CS for SB 2-D First Engrossed 20222De1 624.313, Florida Statutes, is amended to read:
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 which the office determines that an availability problem exists in this state, and an analysis of the availability of reinsurance to domestic insurers selling homeowners’ and condominium unit owners’ insurance in this state.
624.313 Publications.— (1) As early as reasonably possible, 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:
(j) An analysis of such lines or kinds of insurance for which the office determines that an availability problem exists in this state, and an analysis of the availability of reinsurance to domestic insurers selling homeowners’ and condominium unit owners’ insurance in this state.
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and a concise statement of the circumstances that led to each insurer’s delinquency;
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CS for SB 2-D First Engrossed 20222De1 and a concise statement of the circumstances that led to each insurer’s delinquency;
emerging trends as exemplified by the percentage change in frequency and severity of both paid and incurred claims, and pure premium (Florida and countrywide).
emerging trends as exemplified by the Page 21 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 percentage change in frequency and severity of both paid and incurred claims, and pure premium (Florida and countrywide).
The report Page 23 of 54 CODING:
The report shall include the following information for each county on a monthly basis:
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CS for SB 2-D First Engrossed 20222De1 shall include the following information for each county on a monthly basis:
5.(e) Number of policies nonrenewed due to hurricane risk.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 5.(e) Number of policies nonrenewed due to hurricane risk.
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 Page 24 of 54 CODING:
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 which recovery is 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 23 of 52 CODING:
CS for SB 2-D First Engrossed 20222De1 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 which recovery is awarded.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 awarded only as 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 Page 25 of 54 CODING:
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.
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CS for SB 2-D First Engrossed 20222De1 policy not brought by an assignee, the amount of reasonable attorney fees shall be awarded only as provided in s.
(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.
(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 Page 24 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 insurer.
(4) Page 26 of 54 CODING:
(4) (d)1.
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CS for SB 2-D First Engrossed 20222De1 (d)1.
The policyholder must personally write or type and provide to the insurer the following statement in his or her own handwriting and sign his or her name, which must also be signed by every other named insured on the policy, and dated:
The policyholder must personally write or type and provide to the insurer the following statement in his or her own handwriting and sign his or her name, which must also be signed Page 25 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 by every other named insured on the policy, and dated:
The commission shall adopt rules providing appropriate alternative methods for providing the statements required by this section for policyholders who have a handicapping or Page 27 of 54 CODING:
The commission shall adopt rules providing appropriate alternative methods for providing the statements required by this section for policyholders who have a handicapping or disabling condition that prevents them from providing a handwritten statement.
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CS for SB 2-D First Engrossed 20222De1 disabling condition that prevents them from providing a handwritten statement.
“YOU ARE ELECTING TO PURCHASE COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR ROOF LOSSES.
“YOU ARE ELECTING TO PURCHASE Page 26 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR ROOF LOSSES.
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(10)(a) Notwithstanding any other provision of law, an insurer issuing a personal lines residential property insurance policy may include in such policy a separate roof deductible that meets all of the following requirements:
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CS for SB 2-D First Engrossed 20222De1 (10)(a) Notwithstanding any other provision of law, an insurer issuing a personal lines residential property insurance policy may include in such policy a separate roof deductible that meets all of the following requirements:
2.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 2.
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(b) At the time of initial issuance of a personal lines residential property insurance policy, an insurer may offer the policyholder a separate roof deductible with the ability to opt- out and reject the separate roof deductible.
To reject a separate roof deductible, the policyholder shall sign a form approved by the office.
(c) At the time of renewal, an insurer may add a separate Page 28 of 52 CODING:
CS for SB 2-D First Engrossed 20222De1 (b) At the time of initial issuance of a personal lines residential property insurance policy, an insurer may offer the policyholder a separate roof deductible with the ability to opt- out and reject the separate roof deductible.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 roof deductible to a personal lines residential property insurance policy if the insurer provides a notice of change in policy terms pursuant to s.
To reject a separate roof deductible, the policyholder shall sign a form approved by the office.
(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 policy terms pursuant to s.
offer of replacement cost coverage and law and ordinance coverage.— Page 30 of 54 CODING:
offer of replacement cost coverage and law and ordinance coverage.— (3) In the event of a loss for which a dwelling or personal property is insured on the basis of replacement costs:
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CS for SB 2-D First Engrossed 20222De1 (3) In the event of a loss for which a dwelling or personal property is insured on the basis of replacement costs:
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.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 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 Page 31 of 54 CODING:
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 with a homeowner’s insurance policy.
(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.
(c) For a roof that is at least 15 years old, an insurer Page 30 of 52 CODING:
CS for SB 2-D First Engrossed 20222De1 a general inspection of a residential structure insured with a homeowner’s insurance policy.
Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 must allow a homeowner to have a roof inspection performed by an authorized inspector at the homeowner’s expense before requiring the replacement of the roof of a residential structure as a condition of issuing or renewing a homeowner’s insurance policy.
(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.
(c) For a roof that is at least 15 years old, an insurer must allow a homeowner to have a roof inspection performed by an authorized inspector at the homeowner’s expense before requiring the replacement of the roof of a residential structure as a condition of issuing or renewing a homeowner’s insurance policy.
(d) For purposes of this subsection, a roof’s age shall be calculated using the last date on which 100 percent of the roof’s surface area was built or replaced in accordance with the building code in effect at that time or the initial date 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.
(d) This subsection applies to homeowners’ insurance policies issued or renewed on or after July 1, 2022.
(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 Page 32 of 54 CODING:
627.70131 Insurer’s duty to acknowledge communications regarding claims;
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CS for SB 2-D First Engrossed 20222De1 regarding claims;
For claims other than those subject to a hurricane deductible, an insurer must conduct any such physical inspection within 45 days after its receipt of the proof of loss statements.
For claims other than those subject to a hurricane deductible, an insurer must conduct any such physical inspection within 45 Page 31 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 days after its receipt of the proof of loss statements.
This paragraph does not require that an insurer Page 33 of 54 CODING:
This paragraph does not require that an insurer create a detailed estimate of the amount of the loss if such estimate is not reasonably necessary as part of the claim investigation.
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CS for SB 2-D First Engrossed 20222De1 create a detailed estimate of the amount of the loss if such estimate is not reasonably necessary as part of the claim investigation.
If the insurer’s claim payment is less than specified in any insurer’s detailed estimate of the amount of the loss, the insurer must provide a reasonable explanation in writing of the difference to the policyholder.
If the insurer’s claim payment is less than specified in any insurer’s detailed estimate of the amount of the loss, the insurer must Page 32 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 provide a reasonable explanation in writing of the difference to the policyholder.
However, failure to comply Page 34 of 54 CODING:
However, failure to comply with this subsection does not form the sole basis for a private cause of action.
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CS for SB 2-D First Engrossed 20222De1 with this subsection does not form the sole basis for a private cause of action.
(8) ATTORNEY FEES.— (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.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 (8) ATTORNEY FEES.— (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.
If the difference between the amount obtained by the claimant and the presuit settlement offer, excluding reasonable attorney fees and costs, is at least 20 percent but less than 50 percent of the disputed amount, the insurer pays the claimant’s Page 35 of 54 CODING:
If the difference between the amount obtained by the claimant and the presuit settlement offer, excluding reasonable attorney fees and costs, is at least 20 percent but less than 50 percent of the disputed amount, the insurer pays the claimant’s attorney fees and costs under s.
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CS for SB 2-D First Engrossed 20222De1 attorney fees and costs under s.
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.
When a claimant’s suit is dismissed pursuant to subsection (5), the Page 34 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 court may award to the insurer reasonable attorney fees and costs associated with securing the dismissal.
The purpose of the bill of rights is to summarize, in simple, nontechnical terms, Page 36 of 54 CODING:
The purpose of the bill of rights is to summarize, in simple, nontechnical terms, existing Florida law regarding the rights of a personal lines residential property insurance policyholder who files a claim of loss.
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CS for SB 2-D First Engrossed 20222De1 existing Florida law regarding the rights of a personal lines residential property insurance policyholder who files a claim of loss.
626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does not prohibit an insurer from exercising its right to repair damaged property in compliance with the terms of an applicable policy or ss.
626.854, 626.9541, 627.70131, 627.7015, and 627.7074, Page 35 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 and does not prohibit an insurer from exercising its right to repair damaged property in compliance with the terms of an applicable policy or ss.
This document does not create a civil cause of action by an individual policyholder, or a class of policyholders, against an insurer or insurers and does not prohibit Page 37 of 54 CODING:
This document does not create a civil cause of action by an individual policyholder, or a class of policyholders, against an insurer or insurers and does not prohibit an insurer from exercising its right to repair damaged property in compliance with the terms of an applicable policy.
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CS for SB 2-D First Engrossed 20222De1 an insurer from exercising its right to repair damaged property in compliance with the terms of an applicable policy.
Upon written request, receive from your insurance company within 30 days after you have submitted a complete proof-of-loss statement to your insurance company, confirmation that your claim is covered in full, partially covered, or denied, or receive a written statement that your claim is being investigated.
Upon written request, receive from your insurance company within 30 days after you have submitted a complete proof-of-loss statement to your insurance company, confirmation that your claim is covered in full, partially covered, or denied, or receive a written statement that your claim is being Page 36 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 investigated.
The interest, if applicable, must be paid when your claim or the undisputed portion of Page 38 of 54 CODING:
The interest, if applicable, must be paid when your claim or the undisputed portion of your claim is paid.
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CS for SB 2-D First Engrossed 20222De1 your claim is paid.
You can reach the Helpline by phone at ...(toll-free phone number)..., or you can seek assistance online at the Florida Department of Financial Services, Division of Consumer Services’ website at ...(website address)....
You can reach the Helpline by phone at ...(toll-free phone number)..., or you can seek assistance online at Page 37 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 the Florida Department of Financial Services, Division of Consumer Services’ website at ...(website address)....
Keep the damaged property, if feasible, keep all receipts, and take photographs or video of damage before and after any Page 39 of 54 CODING:
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.
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CS for SB 2-D First Engrossed 20222De1 repairs to provide to your insurer.
7.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 7.
(b) “Assignment agreement” means any instrument by which post-loss benefits under a residential property insurance policy Page 40 of 54 CODING:
(b) “Assignment agreement” means any instrument by which post-loss benefits under a residential property insurance policy or commercial property insurance policy, as that term is defined in s.
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CS for SB 2-D First Engrossed 20222De1 or commercial property insurance policy, as that term is defined in s.
(d) “Disputed amount” means the difference between the assignee’s presuit settlement demand and the insurer’s presuit settlement offer.
(d) “Disputed amount” means the difference between the assignee’s presuit settlement demand and the insurer’s presuit Page 39 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 settlement offer.
Contain a provision that allows the assignor to rescind the assignment agreement without a penalty or fee by submitting Page 41 of 54 CODING:
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.
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CS for SB 2-D First Engrossed 20222De1 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.
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;
By personal service, overnight delivery, or electronic Page 40 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 transmission, with evidence of delivery in the form of a receipt or other paper or electronic acknowledgment by the insurer;
YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH Page 42 of 54 CODING:
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.
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CS for SB 2-D First Engrossed 20222De1 MAY RESULT IN LITIGATION AGAINST YOUR INSURER.
THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR PROPERTY INSURANCE POLICY.
THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR Page 41 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 PROPERTY INSURANCE POLICY.
(9)(a) An assignee must provide the named insured, insurer, and the assignor, if not the named insured, with a written notice of intent to initiate litigation before filing suit under Page 43 of 54 CODING:
(9)(a) An assignee must provide the named insured, insurer, and the assignor, if not the named insured, with a written notice of intent to initiate litigation before filing suit under the policy.
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CS for SB 2-D First Engrossed 20222De1 the policy.
Concurrent with the notice, and as a precondition to filing suit, the assignee must provide the named insured, insurer, and the assignor, if not the named insured, a detailed written invoice or estimate of services, including itemized information on equipment, materials, and supplies;
Concurrent with the notice, and as a precondition to filing suit, the assignee must provide the named insured, insurer, and the assignor, if not the named insured, a detailed written invoice or estimate of services, including Page 42 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 itemized information on equipment, materials, and supplies;
At least 25 percent but less than 50 percent of the disputed amount, no party is entitled to an award of attorney Page 44 of 54 CODING:
At least 25 percent but less than 50 percent of the disputed amount, no party is entitled to an award of attorney fees.
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CS for SB 2-D First Engrossed 20222De1 fees.
252.36, factors beyond the control of the insurer which reasonably prevented an inspection or written or oral authorization for repairs, or the named insured’s failure or inability to allow an inspection of the property after a request by the insurer, the insurer does not waive its right to an award of attorney fees under this subsection.
252.36, factors beyond the control of the insurer which reasonably prevented an inspection or written or oral authorization for repairs, or the named insured’s failure or inability to allow an inspection of the property after a request by the insurer, the insurer does Page 43 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 not waive its right to an award of attorney fees under this subsection.
duties and required reports.— (1) A property insurer stability unit is created within the Page 45 of 54 CODING:
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.
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CS for SB 2-D First Engrossed 20222De1 office to aid in the detection and prevention of insurer insolvencies in the homeowners’ and condominium unit owners’ insurance market.
(a) Conduct a target market exam when there is reason to believe that an insurer’s claims practices, rate requirements, investment activities, or financial statements suggest that the insurer may be in an unsound financial condition.
(a) Conduct a target market exam when there is reason to believe that an insurer’s claims practices, rate requirements, Page 44 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 investment activities, or financial statements suggest that the insurer may be in an unsound financial condition.
Whether an individual insurer can survive a one in 130- Page 46 of 54 CODING:
Whether an individual insurer can survive a one in 130- year probable maximum loss (PML), and a second event 50-year return PML following a first event that exceeds a 100-year return PML;
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CS for SB 2-D First Engrossed 20222De1 year probable maximum loss (PML), and a second event 50-year return PML following a first event that exceeds a 100-year return PML;
(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, and the chairs of the legislative committees with jurisdiction over matters of insurance showing:
(f) On January 1 and July 1 of each year, provide a report Page 45 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 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, and the chairs of the legislative committees with jurisdiction over matters of insurance showing:
Profitability of the homeowners’ and condominium unit owners’ lines of insurance in this state, including a comparison Page 47 of 54 CODING:
Profitability of the homeowners’ and condominium unit owners’ lines of insurance in this state, including a comparison with similar lines of insurance in other hurricane-prone states and with the national average.
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CS for SB 2-D First Engrossed 20222De1 with similar lines of insurance in other hurricane-prone states and with the national average.
The number of referrals to the insurer stability unit which were deemed appropriate for enhanced monitoring, including the reason for the monitoring.
The number of referrals to the insurer stability unit which were deemed appropriate for enhanced monitoring, including Page 46 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 the reason for the monitoring.
Identification of any trends that may warrant attention Page 48 of 54 CODING:
Identification of any trends that may warrant attention in the future.
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CS for SB 2-D First Engrossed 20222De1 in the future.
(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.
(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 Page 47 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 caused harm to policyholders, as prohibited by s.
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(g) A quarterly or annual financial statement required by ss.
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CS for SB 2-D First Engrossed 20222De1 (g) A quarterly or annual financial statement required by ss.
624.424 and 627.915.
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 624.424 and 627.915.
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(m) An insurer authorized to sell homeowners’ or condominium unit owners’ insurance 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.
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CS for SB 2-D First Engrossed 20222De1 (m) An insurer authorized to sell homeowners’ or condominium unit owners’ insurance 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.
(5) Expenses of the insurer stability unit shall be paid from moneys allocated to the Insurance Regulatory Trust Fund.
(5) Expenses of the insurer stability unit shall be paid Page 49 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 from moneys allocated to the Insurance Regulatory Trust Fund.
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 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 Page 51 of 54 CODING:
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 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.
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CS for SB 2-D First Engrossed 20222De1 evidence.
631.398 Prevention of insolvencies.—To aid in the detection and prevention of insurer insolvencies or impairments:
631.398 Prevention of insolvencies.—To aid in the detection Page 50 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 and prevention of insurer insolvencies or impairments:
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 Page 52 of 54 CODING:
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.
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CS for SB 2-D First Engrossed 20222De1 office.
Provide a special report to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the office, within 10 days upon identifying any condition or practice that may lead to insolvency in the property insurance marketplace.
Provide a special report to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the office, within 10 days upon identifying any condition or practice that may lead to insolvency in the property insurance Page 51 of 52 CODING:
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Florida Senate - 2022 CS for SB 2-D 576-00048-22D 20222Dc1 marketplace.
Except as otherwise expressly provided in this Page 53 of 54 CODING:
Except as otherwise expressly provided in this act, this act shall take effect upon becoming a law.
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CS for SB 2-D First Engrossed 20222De1 act, this act shall take effect upon becoming a law.
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