Florida Senate - 2022                                    SB 1926
       
       
        
       By Senator Stewart
       
       
       
       
       
       13-01267B-22                                          20221926__
    1                        A bill to be entitled                      
    2         An act relating to the disposition of insurance
    3         proceeds; amending s. 494.0026, F.S.; adding
    4         requirements for mortgagees and assignees holding
    5         certain insurance proceeds pending completion of all
    6         or part of damage repairs; providing an effective
    7         date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Subsection (2) of section 494.0026, Florida
   12  Statutes, is amended to read:
   13         494.0026 Disposition of insurance proceeds.—The following
   14  provisions apply to mortgage loans held by a mortgagee or
   15  assignee that is subject to part II or part III of this chapter.
   16         (2) Insurance proceeds received by a mortgagee or an
   17  assignee which that relate to compensation for damage to
   18  property or contents insurance coverage in which the mortgagee
   19  or assignee has a security interest must be promptly deposited
   20  into a segregated account of a federally insured financial
   21  institution. A mortgagee or an assignee holding insurance
   22  proceeds pending completion of all or part of damage repairs
   23  shall notify the insured of each requirement the insured must
   24  fulfill for the mortgagee or assignee to release the proceeds.
   25  The notice required under this subsection must be sent by
   26  written or electronic delivery no later than the 10th business
   27  day after the date the mortgagee or assignee endorses the check,
   28  draft, or other negotiable instrument for the proceeds.
   29  
   30  This section may not be construed to prevent an insurance
   31  company from paying the insured directly for additional living
   32  expenses or paying the insured directly for contents insurance
   33  coverage if the mortgagee or assignee does not have a security
   34  interest in the contents.
   35         Section 2. This act shall take effect July 1, 2022.