CS for CS for SB 1894                            First Engrossed
       
       
       
       
       
       
       
       
       20091894e1
       
    1                        A bill to be entitled                      
    2         An act relating to surplus lines insurers; amending s.
    3         626.913, F.S.; providing for the nonapplication of
    4         certain provisions of state law to surplus lines
    5         insurance authorized under the Surplus Lines Law;
    6         providing an exception; amending s. 626.924, F.S.;
    7         requiring that surplus lines policies issued on or
    8         after a specified date have a specified statement
    9         printed on the face of the policy; creating s.
   10         626.9371, F.S.; providing methods of payment for
   11         premiums and claims regarding surplus lines contracts
   12         issued on or after a specified date; requiring a
   13         written authorization to complete payment under
   14         certain circumstances; providing for waiver of such
   15         requirement; providing that an insurer remains liable
   16         for payment of a claim if corresponding funds are
   17         misdirected; creating s. 626.9372, F.S.; requiring
   18         that certain insurers provide a disclosure statement
   19         to a claimant under certain circumstances; requiring
   20         that such statement include certain information;
   21         requiring that an insurer disclose certain additional
   22         information upon the request of a claimant; requiring
   23         the amendment of such statement under certain
   24         circumstances; creating s. 626.9373, F.S.; providing
   25         for the payment of attorney’s fees in cases involving
   26         surplus lines insurers at the trial and appellate
   27         levels; amending s. 626.9374, F.S.; requiring that a
   28         surplus lines policy containing a separate hurricane
   29         or wind deductible issued on or after a specified date
   30         have a specified statement printed on the face of the
   31         policy; requiring that a surplus lines policy
   32         containing a coinsurance provision applicable to
   33         hurricane or wind losses issued on or after a
   34         specified date have a specified statement printed on
   35         the face of the policy; providing for the retroactive
   36         applicability of certain provisions; providing an
   37         effective date.
   38  
   39  Be It Enacted by the Legislature of the State of Florida:
   40  
   41         Section 1. Subsection (4) is added to section 626.913,
   42  Florida Statutes, to read:
   43         626.913 Surplus Lines Law; short title; purposes.—
   44         (4)Except as may be specifically stated to apply to
   45  surplus lines insurers, the provisions of chapter 627 do not
   46  apply to surplus lines insurance authorized under ss. 626.913
   47  626.937, the Surplus Lines Law.
   48         Section 2. Section 626.924, Florida Statutes, is amended to
   49  read:
   50         626.924 Information required on contract.—Each surplus
   51  lines agent through whom a surplus lines coverage is procured
   52  shall write or print on the outside of the policy and on any
   53  certificate, cover note, or other confirmation of the insurance
   54  his or her name, address, and identification number and the name
   55  and address of the producing agent through whom the business
   56  originated and shall have stamped or written upon the first page
   57  of the policy or the certificate, cover note, or confirmation of
   58  insurance the words: THIS INSURANCE IS ISSUED PURSUANT TO THE
   59  FLORIDA SURPLUS LINES LAW. PERSONS INSURED BY SURPLUS LINES
   60  CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE
   61  GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE
   62  OBLIGATION OF AN INSOLVENT UNLICENSED INSURER. Surplus lines
   63  policies issued on or after October 1, 2009, shall have stamped
   64  or printed on the face of the policy in at least 14-point,
   65  boldface type, the following statement: SURPLUS LINES INSURERS’
   66  POLICY RATES AND FORMS ARE NOT APPROVED BY ANY FLORIDA
   67  REGULATORY AGENCY.
   68         Section 3. Section 626.9371, Florida Statutes, is created
   69  to read:
   70         626.9371Payment of premiums and claims.—
   71         (1)The premiums for surplus lines insurance contracts
   72  issued on or after October 1, 2009, in this state or covering
   73  risks located in this state shall be paid in cash consisting of
   74  coins, currency, checks, or money orders or by using a debit
   75  card, credit card, automatic electronic funds transfer, or
   76  payroll deduction plan.
   77         (2)All payments of claims made in this state under any
   78  contract of surplus lines insurance issued on or after October
   79  1, 2009, shall be made:
   80         (a)In cash consisting of coins, currency, checks, drafts,
   81  or money orders and, if made by check or draft, shall be in such
   82  form as will comply with the standards for cash items adopted by
   83  the Federal Reserve System to facilitate the sorting, routing,
   84  and mechanized processing of such items; or
   85         (b)By debit card or any other form of electronic transfer
   86  if authorized in writing by the recipient or the recipient’s
   87  representative. Any fees or costs to be charged against the
   88  recipient must be disclosed in writing to the recipient or the
   89  recipient’s representative at the time of written authorization.
   90  However, the written authorization requirement may be waived by
   91  the recipient or the recipient’s representative if the insurer
   92  verifies the identity of the insured or the insured’s recipient
   93  and does not charge a fee for the transaction. If the funds are
   94  misdirected, the insurer remains liable for the payment of the
   95  claim.
   96         Section 4. Section 626.9372, Florida Statutes, is created
   97  to read:
   98         626.9372Disclosure statement of certain information
   99  required-liability claims.—
  100         (1)Each insurer that provides or may provide liability
  101  insurance coverage to pay all or a portion of any claim that
  102  might be made under surplus lines policies issued on or after
  103  October 1, 2009, shall provide, within 30 days after the written
  104  request of the claimant, a statement of a corporate officer or
  105  the insurer’s claims manager or superintendent setting forth the
  106  following information with regard to each known policy of
  107  insurance, including excess or umbrella insurance:
  108         (a)The name of the insurer.
  109         (b)The name of each insured.
  110         (c)The limits of the liability coverage.
  111         (d)A statement of any policy or coverage defense that such
  112  insurer reasonably believes is available to such insurer at the
  113  time of filing such statement.
  114         (e)A copy of the policy.
  115  
  116  In addition, the insured, or her or his insurance agent, upon
  117  written request of the claimant or the claimant’s attorney,
  118  shall disclose the name and coverage of each known insurer to
  119  the claimant and forward such request for information as
  120  required by this subsection to all affected insurers. The
  121  insurer shall supply the information required in this subsection
  122  to the claimant within 30 days after receipt of such request.
  123         (2)The statement required by subsection (1) must be
  124  amended within 30 days after the date of discovery of facts
  125  necessitating an amendment to such statement.
  126         Section 5. Section 626.9373, Florida Statutes, is created
  127  to read:
  128         626.9373Attorney’s fees.—
  129         (1)Upon the rendition of a judgment or decree by any court
  130  of this state against a surplus lines insurer in favor of any
  131  named or omnibus insured or the named beneficiary under a policy
  132  or contract executed by the insurer on or after October 1, 2009,
  133  the trial court or, if the insured or beneficiary prevails on
  134  appeal, the appellate court, shall adjudge or decree against the
  135  insurer in favor of the insured or beneficiary a reasonable sum
  136  as fees or compensation for the insured’s or beneficiary’s
  137  attorney prosecuting the lawsuit for which recovery is awarded.
  138         (2)If awarded, attorney’s fees or compensation shall be
  139  included in the judgment or decree rendered in the case.
  140         Section 6. Section 626.9374, Florida Statutes, is created
  141  to read:
  142         626.9374Liability of insureds; deductible and
  143  coinsurance.—
  144         (1)Any surplus lines, personal lines residential property
  145  insurance policy issued on or after October 1, 2009, containing
  146  a separate hurricane or wind deductible must on its face include
  147  in at least 14-point, boldface type the following statement:
  148  THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE OR WIND
  149  LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.
  150         (2)A surplus lines, personal lines residential property
  151  insurance policy issued on or after October 1, 2009, containing
  152  a coinsurance provision applicable to hurricane or wind losses
  153  must on its face include in at least 14-point, boldface type the
  154  following statement: THIS POLICY CONTAINS A CO-PAY PROVISION
  155  THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.
  156         Section 7. The amendments to s. 626.913, Florida Statutes,
  157  in this act are remedial in nature and operate retroactively to
  158  the regulation of surplus lines insurers from October 1, 1998,
  159  except with respect to lawsuits that are pending on the
  160  effective date of this act.
  161         Section 8. This act shall take effect upon becoming a law.