Florida Senate - 2022                          SENATOR AMENDMENT
       Bill No. SB 2-A
       
       
       
       
       
       
                                Ì757448OÎ757448                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 2/F/2R          .                                
             12/13/2022 02:38 PM       .                                
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       Senator Pizzo moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 452 - 526
    4  and insert:
    5  transacting property insurance business in this state shall be
    6  subject to an additional market conduct examination after a
    7  hurricane if the insurer:
    8         (a)Is among the top 20 percent of insurers based upon a
    9  calculation of the ratio of hurricane-related property insurance
   10  claims filed to the number of property insurance policies in
   11  force;
   12         (b)Is among the top 20 percent of insurers based upon a
   13  calculation of the ratio of consumer complaints made to the
   14  department to hurricane-related claims;
   15         (c)Has made significant payments to its managing general
   16  agent since the hurricane; or
   17         (d)Is identified by the office as necessitating a market
   18  conduct exam for any other reason.
   19  
   20  All relevant criteria under this section and s. 624.316 shall be
   21  applied to the market conduct examination under this subsection.
   22  Such an examination must be initiated within 18 months after the
   23  landfall of a hurricane that results in an executive order or a
   24  state of emergency issued by the Governor. An examination of an
   25  insurer under this subsection must also include an examination
   26  of its managing general agent as if it were the insurer.
   27         Section 4. Paragraph (c) of subsection (2) of section
   28  624.418, Florida Statutes, is amended to read:
   29         624.418 Suspension, revocation of certificate of authority
   30  for violations and special grounds.—
   31         (2) The office may, in its discretion, suspend or revoke
   32  the certificate of authority of an insurer if it finds that the
   33  insurer:
   34         (c) Has for any line, class, or combination thereof, with
   35  such frequency as to indicate its general business practice in
   36  this state, without just cause:
   37         1. Refused to pay proper claims arising under its policies,
   38  whether any such claim is in favor of an insured or is in favor
   39  of a third person with respect to the liability of an insured to
   40  such third person, or without just cause compels such insureds
   41  or claimants to accept less than the amount due them or to
   42  employ attorneys or to bring suit against the insurer or such an
   43  insured to secure full payment or settlement of such claims; or
   44         2.Compelled insureds to participate in appraisal under a
   45  property insurance policy in order to secure full payment or
   46  settlement of such claims.
   47         Section 5. Paragraph (a) of subsection (10) and subsection
   48  (11) of section 624.424, Florida Statutes, are amended to read:
   49         624.424 Annual statement and other information.—
   50         (10)(a) Each insurer or insurer group doing business in
   51  this state shall file on a quarterly basis in conjunction with
   52  financial reports required by paragraph (1)(a) a supplemental
   53  report on an individual and group basis on a form prescribed by
   54  the commission with information on personal lines and commercial
   55  lines residential property insurance policies in this state. The
   56  supplemental report shall include separate information for
   57  personal lines property policies and for commercial lines
   58  property policies and totals for each item specified, including
   59  premiums written for each of the property lines of business as
   60  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
   61  shall include the following information for each county on a
   62  monthly basis:
   63         1. Total number of policies in force at the end of each
   64  month.
   65         2. Total number of policies canceled.
   66         3. Total number of policies nonrenewed.
   67         4. Number of policies canceled due to hurricane risk.
   68         5. Number of policies nonrenewed due to hurricane risk.
   69         6. Number of new policies written.
   70         7. Total dollar value of structure exposure under policies
   71  that include wind coverage.
   72         8. Number of policies that exclude wind coverage.
   73         9.Number of claims open each month.
   74         10.Number of claims closed each month.
   75         11.Number of claims pending each month.
   76         12.Number of claims in which either the insurer or insured
   77  invoked any form of alternative dispute resolution, which party
   78  invoked alternative dispute resolution, and specifying which
   79  form of alternative dispute resolution was used.
   80         13. Number of policies canceled or not renewed while a
   81  claim is pending.
   82         (11) Beginning January 1, 2022, each authorized insurer or
   83  insurer group issuing personal lines or commercial lines
   84  residential property insurance policies in this state shall file
   85  with the office on an annual basis in conjunction with the
   86  statements required by paragraph (1)(a) a supplemental report on
   87  an individual and group basis for closed claims. The office
   88  shall compile the data for each insurer or insurer group on a
   89  statewide basis and make such data publicly available on its
   90  website monthly. Such information, when aggregated on a
   91  statewide basis as to an individual insurer or insurer group, is
   92  not a trade secret as defined in s. 688.002(4) or s. 812.081 and
   93  is not subject to the public records exemption for trade secrets
   94  provided in s. 119.0715. The report must be on a form prescribed
   95  by the commission and must include the following information for
   96  each claim closed, excluding liability only claims, within the
   97  reporting period in this state:
   98         (a) The unique claim identification number.
   99         (b) The type of policy.
  100         (c) The zip code of the property where the claim occurred.
  101         (d) The county where the claim occurred.
  102         (e) The date of loss.
  103         (f) The peril or type of loss, including information about:
  104         1. The types of vendors used for mitigation, repair, or
  105  replacement; and
  106         2. The names of vendors used, if known.
  107         (g) The date the claim was reported to insurer.
  108         (h) The initial date the claim was closed, including
  109  information about whether the claim was closed with or without
  110  payment.
  111         (i) The date the claim was most recently reopened, if
  112  applicable.
  113         (j) The date a supplemental claim was filed, if applicable.
  114         (k) The date the claim was most recently closed, if
  115  different from the initial date the claim was closed.
  116         (l) The name of the public adjuster on the claim, if any.
  117         (m) The Florida Bar number and name of the attorney for the
  118  claimant, if any.
  119         (n) The total indemnity paid by the insurer.
  120         (o) The total loss adjustment expenses paid by the insurer.
  121         (p) The amount paid for claimant’s attorney fees, if any.
  122         (q) The amount paid in costs for claimant’s attorney’s
  123  expenses, including, but not limited to, expert witness fees.
  124         (r) The contingency risk multiplier, if any, that the
  125  claimant’s attorney requested to be applied in calculating the
  126  attorney fees awarded to the claimant’s attorney.
  127         (s) The contingency risk multiplier, if any, that a court
  128  applied in calculating the attorney fees awarded to the
  129  claimant’s attorney.
  130         (t) Data submitted to the Department of Financial Services
  131  by each claimant and each insurer or insurer group pursuant to
  132  ss. 627.70152(3) and (4).
  133         (u) Any other information deemed necessary by the
  134  commission to provide the office with the ability to track
  135  litigation and claims trends occurring in the property market.
  136  
  137  ================= T I T L E  A M E N D M E N T ================
  138  And the title is amended as follows:
  139         Delete lines 32 - 41
  140  and insert:
  141         insurers shall be subject to an additional market
  142         conduct examination by the Office of Insurance
  143         Regulation after a hurricane under certain
  144         circumstances; providing requirements for such
  145         examination; amending s. 624.418, F.S.; adding
  146         specified grounds on which the office may suspend or
  147         revoke a property insurer’s certificate of authority;
  148         amending s. 624.424, F.S.; adding information required
  149         to be reported by property insurers in their quarterly
  150         supplemental reports; requiring the office to compile
  151         certain insurer information and make such data
  152         publicly available; specifying that such data is not a
  153         trade secret; amending s. 626.9373, F.S.;