Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. CS for SB 468
       
       
       
       
       
       
                                Ì174624*Î174624                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/10/2022           .                                
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       The Committee on Judiciary (Perry) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 142 - 468
    4  and insert:
    5  audits for policies only if the estimated annual premium is
    6  $10,000 or more. Payroll verification audit rules must include,
    7  but need not be limited to, the use of state and federal reports
    8  of employee income, payroll and other accounting records,
    9  certificates of insurance maintained by subcontractors, and
   10  duties of employees. At the completion of an audit, the employer
   11  or officer of the corporation and the auditor must print and
   12  sign their names on the audit document and attach proof of
   13  identification to the audit document.
   14         Section 3. Section 624.46227, Florida Statutes, is created
   15  to read:
   16         624.46227 Meeting requirements.—Any association, trust, or
   17  pool authorized by state law and created for the purpose of
   18  forming a risk management mechanism or providing self-insurance
   19  for public entities in this state may use communications media
   20  technology to establish a quorum and conduct public business.
   21         Section 4. Paragraph (j) of subsection (2) of section
   22  626.221, Florida Statutes, is amended to read:
   23         626.221 Examination requirement; exemptions.—
   24         (2) However, an examination is not necessary for any of the
   25  following:
   26         (j) An applicant for license as an all-lines adjuster who
   27  has the designation of Accredited Claims Adjuster (ACA) from a
   28  regionally accredited postsecondary institution in this state,
   29  Associate in Claims (AIC) from the Insurance Institute of
   30  America, Professional Claims Adjuster (PCA) from the
   31  Professional Career Institute, Professional Property Insurance
   32  Adjuster (PPIA) from the HurriClaim Training Academy, Certified
   33  Adjuster (CA) from ALL LINES Training, Certified Claims Adjuster
   34  (CCA) from AE21 Incorporated, Claims Adjuster Certified
   35  Professional (CACP) from WebCE, Inc., Accredited Insurance
   36  Claims Specialist (AICS) from Encore Claim Services, Certified
   37  All Lines Adjuster (CALA) from Kaplan, or Universal Claims
   38  Certification (UCC) from Claims and Litigation Management
   39  Alliance (CLM) whose curriculum has been approved by the
   40  department and which includes comprehensive analysis of basic
   41  property and casualty lines of insurance and testing at least
   42  equal to that of standard department testing for the all-lines
   43  adjuster license. The department shall adopt rules establishing
   44  standards for the approval of curriculum.
   45         Section 5. For the purpose of incorporating the amendment
   46  made by this act to section 626.221, Florida Statutes, in a
   47  reference thereto, paragraph (b) of subsection (1) of section
   48  626.8734, Florida Statutes, is reenacted to read:
   49         626.8734 Nonresident all-lines adjuster license
   50  qualifications.—
   51         (1) The department shall issue a license to an applicant
   52  for a nonresident all-lines adjuster license upon determining
   53  that the applicant has paid the applicable license fees required
   54  under s. 624.501 and:
   55         (b) Has passed to the satisfaction of the department a
   56  written Florida all-lines adjuster examination of the scope
   57  prescribed in s. 626.241(6); however, the requirement for the
   58  examination does not apply to:
   59         1. An applicant who is licensed as an all-lines adjuster in
   60  his or her home state if that state has entered into a
   61  reciprocal agreement with the department;
   62         2. An applicant who is licensed as a nonresident all-lines
   63  adjuster in a state other than his or her home state and a
   64  reciprocal agreement with the appropriate official of the state
   65  of licensure has been entered into with the department; or
   66         3. An applicant who holds a certification set forth in s.
   67  626.221(2)(j).
   68         Section 6. Section 626.856, Florida Statutes, is amended to
   69  read:
   70         626.856 “Company employee adjuster” defined.—A “company
   71  employee adjuster” means a person licensed as an all-lines
   72  adjuster who is appointed and employed on an insurer’s staff of
   73  adjusters, by an affiliate, or by a wholly owned subsidiary of
   74  the insurer, and who undertakes on behalf of such insurer or
   75  other insurers under common control or ownership to ascertain
   76  and determine the amount of any claim, loss, or damage payable
   77  under a contract of insurance, or undertakes to effect
   78  settlement of such claim, loss, or damage.
   79         Section 7. Paragraph (j) of subsection (2) of section
   80  627.062, Florida Statutes, is amended to read:
   81         627.062 Rate standards.—
   82         (2) As to all such classes of insurance:
   83         (j) With respect to residential property insurance rate
   84  filings, the rate filing:
   85         1. Must account for mitigation measures undertaken by
   86  policyholders to reduce hurricane losses.
   87         2.May use a modeling indication that is the weighted or
   88  straight average of two or more hurricane loss projection models
   89  found by the commission to be accurate or reliable pursuant to
   90  s. 627.0628.
   91  
   92  The provisions of this subsection do not apply to workers’
   93  compensation, employer’s liability insurance, and motor vehicle
   94  insurance.
   95         Section 8. Subsection (9) is added to section 627.0629,
   96  Florida Statutes, to read:
   97         627.0629 Residential property insurance; rate filings.—
   98         (9) An insurer may file with the office a personal lines
   99  residential property insurance rating plan that provides
  100  justified premium discounts, credits, or other rate
  101  differentials based on windstorm mitigation construction
  102  standards developed by an independent, not-for-profit scientific
  103  research organization, if such standards meet the requirements
  104  of this section.
  105         Section 9. Section 627.0665, Florida Statutes, is amended
  106  to read:
  107         627.0665 Automatic bank withdrawal agreements; notification
  108  required.—Any insurer licensed to issue insurance in this the
  109  state who has an automatic bank withdrawal agreement with an
  110  insured party for the payment of insurance premiums for any type
  111  of insurance shall give the named insured at least 15 days
  112  advance written notice of any increase in policy premiums that
  113  results in the next automatic bank withdrawal being increased by
  114  more than $10. Such notice must be provided before prior to any
  115  automatic bank withdrawal containing the of an increased premium
  116  amount.
  117         Section 10. Paragraph (a) of subsection (6) of section
  118  627.351, Florida Statutes, is amended to read:
  119         627.351 Insurance risk apportionment plans.—
  120         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  121         (a) The public purpose of this subsection is to ensure that
  122  there is an orderly market for property insurance for residents
  123  and businesses of this state.
  124         1. The Legislature finds that private insurers are
  125  unwilling or unable to provide affordable property insurance
  126  coverage in this state to the extent sought and needed. The
  127  absence of affordable property insurance threatens the public
  128  health, safety, and welfare and likewise threatens the economic
  129  health of the state. The state therefore has a compelling public
  130  interest and a public purpose to assist in assuring that
  131  property in this the state is insured and that it is insured at
  132  affordable rates so as to facilitate the remediation,
  133  reconstruction, and replacement of damaged or destroyed property
  134  in order to reduce or avoid the negative effects otherwise
  135  resulting to the public health, safety, and welfare, to the
  136  economy of the state, and to the revenues of the state and local
  137  governments which are needed to provide for the public welfare.
  138  It is necessary, therefore, to provide affordable property
  139  insurance to applicants who are in good faith entitled to
  140  procure insurance through the voluntary market but are unable to
  141  do so. The Legislature intends, therefore, that affordable
  142  property insurance be provided and that it continue to be
  143  provided, as long as necessary, through Citizens Property
  144  Insurance Corporation, a government entity that is an integral
  145  part of the state, and that is not a private insurance company.
  146  To that end, the corporation shall strive to increase the
  147  availability of affordable property insurance in this state,
  148  while achieving efficiencies and economies, and while providing
  149  service to policyholders, applicants, and agents which is no
  150  less than the quality generally provided in the voluntary
  151  market, for the achievement of the foregoing public purposes.
  152  Because it is essential for this government entity to have the
  153  maximum financial resources to pay claims following a
  154  catastrophic hurricane, it is the intent of the Legislature that
  155  the corporation continue to be an integral part of the state and
  156  that the income of the corporation be exempt from federal income
  157  taxation and that interest on the debt obligations issued by the
  158  corporation be exempt from federal income taxation.
  159         2. The Residential Property and Casualty Joint Underwriting
  160  Association originally created by this statute shall be known as
  161  the Citizens Property Insurance Corporation. The corporation
  162  shall provide insurance for residential and commercial property,
  163  for applicants who are entitled, but, in good faith, are unable
  164  to procure insurance through the voluntary market. The
  165  corporation shall operate pursuant to a plan of operation
  166  approved by order of the Financial Services Commission. The plan
  167  is subject to continuous review by the commission. The
  168  commission may, by order, withdraw approval of all or part of a
  169  plan if the commission determines that conditions have changed
  170  since approval was granted and that the purposes of the plan
  171  require changes in the plan. For the purposes of this
  172  subsection, residential coverage includes both personal lines
  173  residential coverage, which consists of the type of coverage
  174  provided by homeowner, mobile home owner, dwelling, tenant,
  175  condominium unit owner, and similar policies; and commercial
  176  lines residential coverage, which consists of the type of
  177  coverage provided by condominium association, apartment
  178  building, and similar policies.
  179         3. With respect to coverage for personal lines residential
  180  structures:
  181         a. Effective January 1, 2014, a structure that has a
  182  dwelling replacement cost of $1 million or more, or a single
  183  condominium unit that has a combined dwelling and contents
  184  replacement cost of $1 million or more, is not eligible for
  185  coverage by the corporation. Such dwellings insured by the
  186  corporation on December 31, 2013, may continue to be covered by
  187  the corporation until the end of the policy term. The office
  188  shall approve the method used by the corporation for valuing the
  189  dwelling replacement cost for the purposes of this subparagraph.
  190  If a policyholder is insured by the corporation before being
  191  determined to be ineligible pursuant to this subparagraph and
  192  such policyholder files a lawsuit challenging the determination,
  193  the policyholder may remain insured by the corporation until the
  194  conclusion of the litigation.
  195         b. Effective January 1, 2015, a structure that has a
  196  dwelling replacement cost of $900,000 or more, or a single
  197  condominium unit that has a combined dwelling and contents
  198  replacement cost of $900,000 or more, is not eligible for
  199  coverage by the corporation. Such dwellings insured by the
  200  corporation on December 31, 2014, may continue to be covered by
  201  the corporation only until the end of the policy term.
  202         c. Effective January 1, 2016, a structure that has a
  203  dwelling replacement cost of $800,000 or more, or a single
  204  condominium unit that has a combined dwelling and contents
  205  replacement cost of $800,000 or more, is not eligible for
  206  coverage by the corporation. Such dwellings insured by the
  207  corporation on December 31, 2015, may continue to be covered by
  208  the corporation until the end of the policy term.
  209         d. Effective January 1, 2017, a structure that has a
  210  dwelling replacement cost of $700,000 or more, or a single
  211  condominium unit that has a combined dwelling and contents
  212  replacement cost of $700,000 or more, is not eligible for
  213  coverage by the corporation. Such dwellings insured by the
  214  corporation on December 31, 2016, may continue to be covered by
  215  the corporation until the end of the policy term.
  216  
  217  The requirements of sub-subparagraphs b.-d. do not apply in
  218  counties where the office determines there is not a reasonable
  219  degree of competition. In such counties a personal lines
  220  residential structure that has a dwelling replacement cost of
  221  less than $1 million, or a single condominium unit that has a
  222  combined dwelling and contents replacement cost of less than $1
  223  million, is eligible for coverage by the corporation.
  224         4. It is the intent of the Legislature that policyholders,
  225  applicants, and agents of the corporation receive service and
  226  treatment of the highest possible level but never less than that
  227  generally provided in the voluntary market. It is also intended
  228  that the corporation be held to service standards no less than
  229  those applied to insurers in the voluntary market by the office
  230  with respect to responsiveness, timeliness, customer courtesy,
  231  and overall dealings with policyholders, applicants, or agents
  232  of the corporation.
  233         5.a. Effective January 1, 2009, a personal lines
  234  residential structure that is located in the “wind-borne debris
  235  region,” as defined in s. 1609.2, International Building Code
  236  (2006), and that has an insured value on the structure of
  237  $750,000 or more is not eligible for coverage by the corporation
  238  unless the structure has opening protections as required under
  239  the Florida Building Code for a newly constructed residential
  240  structure in that area. A residential structure is deemed to
  241  comply with this sub-subparagraph if it has shutters or opening
  242  protections on all openings and if such opening protections
  243  complied with the Florida Building Code at the time they were
  244  installed.
  245         b. Any major structure, as defined in s. 161.54(6)(a), that
  246  is newly constructed, or rebuilt, repaired, restored, or
  247  remodeled to increase the total square footage of finished area
  248  by more than 25 percent, pursuant to a permit applied for after
  249  July 1, 2015, is not eligible for coverage by the corporation if
  250  the structure is seaward of the coastal construction control
  251  line established pursuant to s. 161.053 or is within the Coastal
  252  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  253  3510.
  254         6. With respect to wind-only coverage for commercial lines
  255  residential condominiums, effective July 1, 2014, a condominium
  256  may shall be deemed ineligible for coverage when if 50 percent
  257  or more of the units are rented more than eight times in a
  258  calendar year for a rental agreement period of less than 30
  259  days.
  260         Section 11. Subsection (1) of section 627.421, Florida
  261  Statutes, is amended to read:
  262         627.421 Delivery of policy.—
  263         (1) Subject to the insurer’s requirement as to payment of
  264  premium, every policy shall be mailed, delivered, or
  265  electronically transmitted to the insured or to the person
  266  entitled thereto not later than 60 days after the effectuation
  267  of coverage. Notwithstanding any other provision of law, an
  268  insurer may allow a policyholder of personal lines insurance to
  269  affirmatively elect delivery of the policy documents, including,
  270  but not limited to, policies, endorsements, notices, or
  271  documents, by electronic means in lieu of delivery by mail.
  272  Electronic transmission of a policy for commercial risks,
  273  including, but not limited to, workers’ compensation and
  274  employers’ liability, commercial automobile liability,
  275  commercial automobile physical damage, commercial lines
  276  residential property, commercial nonresidential property,
  277  farmowners insurance, and the types of commercial lines risks
  278  set forth in s. 627.062(3)(d), constitutes delivery to the
  279  insured or to the person entitled to delivery, unless the
  280  insured or the person entitled to delivery communicates to the
  281  insurer in writing or electronically that he or she does not
  282  agree to delivery by electronic means. Electronic transmission
  283  shall include a notice to the insured or to the person entitled
  284  to delivery of a policy of his or her right to receive the
  285  policy via United States mail rather than via electronic
  286  transmission. A paper copy of the policy shall be provided to
  287  the insured or to the person entitled to delivery at his or her
  288  request.
  289         Section 12. Paragraph (d) of subsection (4) of section
  290  627.701, Florida Statutes, is amended to read:
  291         627.701 Liability of insureds; coinsurance; deductibles.—
  292         (4)
  293         (d)1. A personal lines residential property insurance
  294  policy covering a risk valued at less than $500,000 may not have
  295  a hurricane deductible in excess of 10 percent of the policy
  296  dwelling limits, unless the following conditions are met:
  297         a. The policyholder must personally write or type and
  298  provide to the insurer the following statement in his or her own
  299  handwriting and sign his or her name, which must also be signed
  300  by every other named insured on the policy, and dated: “I do not
  301  want the insurance on my home to pay for the first (specify
  302  dollar value) of damage from hurricanes. I will pay those costs.
  303  My insurance will not.”
  304         b. If the structure insured by the policy is subject to a
  305  mortgage or lien, the policyholder must provide the insurer with
  306  a written statement from the mortgageholder or lienholder
  307  indicating that the mortgageholder or lienholder approves the
  308  policyholder electing to have the specified deductible.
  309         2. A deductible subject to the requirements of this
  310  paragraph applies for the term of the policy and for each
  311  renewal thereafter. Changes to the deductible percentage may be
  312  implemented only as of the date of renewal.
  313         3. An insurer shall keep the original copy of the signed
  314  statement required by this paragraph, electronically or
  315  otherwise, and provide a copy to the policyholder providing the
  316  signed statement. A signed statement meeting the requirements of
  317  this paragraph creates a presumption that there was an informed,
  318  knowing election of coverage.
  319         4. The commission shall adopt rules providing appropriate
  320  alternative methods for providing the statements required by
  321  this section for policyholders who have a handicapping or
  322  disabling condition that prevents them from providing a
  323  handwritten statement.
  324         Section 13. Paragraph (a) of subsection (2) and subsection
  325  (3) of section 627.712, Florida Statutes, are amended to read:
  326         627.712 Residential windstorm coverage required;
  327  availability of exclusions for windstorm or contents.—
  328         (2) A property insurer must make available, at the option
  329  of the policyholder, an exclusion of windstorm coverage.
  330         (a) The coverage may be excluded only if:
  331         1. When the policyholder is a natural person, the
  332  policyholder personally writes or types and provides to the
  333  insurer the following statement in his or her own handwriting
  334  and signs his or her name, which must also be signed by every
  335  other named insured on the policy, and dated: “I do not want the
  336  insurance on my (home/mobile home/condominium unit) to pay for
  337  damage from windstorms. I will pay those costs. My insurance
  338  will not.”
  339         2. When the policyholder is other than a natural person,
  340  the policyholder provides to the insurer on the policyholder’s
  341  letterhead the following statement that must be signed by the
  342  policyholder’s authorized representative and dated: “...(Name of
  343  entity)... does not want the insurance on its ...(type of
  344  structure)... to pay for damage from windstorms. ...(Name of
  345  entity)... will be responsible for these costs. ...(Name of
  346  entity’s)... insurance will not.”
  347         (3) An insurer issuing a residential property insurance
  348  policy, except for a condominium unit owner policy or a tenant
  349  policy, must make available, at the option of the policyholder,
  350  an exclusion of coverage for the contents. The coverage may be
  351  excluded only if the policyholder personally writes or types and
  352  provides to the insurer the following statement in his or her
  353  own handwriting and signs his or her signature, which must also
  354  be signed by every other named insured on the policy, and dated:
  355  “I do not want the insurance on my (home/mobile home) to pay for
  356  the costs to repair or replace any contents that are damaged. I
  357  will pay those costs. My insurance will not.”
  358         Section 14. Effective upon this act becoming a law,
  359  paragraph (b) of subsection (1) and paragraph (a) of subsection
  360  (9) of section 627.7152, Florida Statutes, are amended to read:
  361         627.7152 Assignment agreements.—
  362         (1) As used in this section, the term:
  363         (b) “Assignment agreement” means any instrument by which
  364  post-loss benefits under a residential property insurance policy
  365  or commercial property insurance policy, as that term is defined
  366  in s. 627.0625(1), are assigned or transferred, or acquired in
  367  any manner, in whole or in part, to or from a person providing
  368  services, including, but not limited to, services to
  369  
  370  ================= T I T L E  A M E N D M E N T ================
  371  And the title is amended as follows:
  372         Delete lines 7 - 16
  373  and insert:
  374         requirement for construction classes to apply to
  375         policies having estimated annual premiums over a
  376         specified threshold; creating s. 624.46227, F.S.;
  377         authorizing any association, trust, or pool created
  378         for the purpose of forming a risk management mechanism
  379         or providing self-insurance for a public entity to use
  380         communications media technology to establish a quorum
  381         and conduct public business; amending s. 626.221,
  382         F.S.; exempting certain applicants for licensure as an
  383         all-lines adjuster from a required examination;
  384         reenacting s. 626.8734(1)(b), F.S., relating to
  385         nonresident all-lines adjuster license qualifications,
  386         to incorporate the amendment made to s. 626.221, F.S.,
  387         in a reference thereto; amending s. 626.856,