Florida Senate - 2023                                    SB 1340
       
       
        
       By Senator Grall
       
       
       
       
       
       29-01330A-23                                          20231340__
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 624.155,
    3         F.S.; providing construction relating to the recovery
    4         of damages under the common-law remedy of bad faith
    5         against insurers; amending s. 624.3161, F.S.;
    6         providing that specified property insurers shall,
    7         rather than may, be subject to an additional market
    8         conduct examination after a hurricane; amending s.
    9         624.4055, F.S.; revising a prohibition against the
   10         continued writing of private passenger automobile
   11         insurance by certain insurers; amending ss. 624.407
   12         and 624.408, F.S.; revising minimum surplus
   13         requirements for certain residential property
   14         insurers; amending s. 624.424, F.S.; revising
   15         information required to be reported by property
   16         insurers in certain supplemental reports; specifying
   17         requirements for the Office of Insurance Regulation in
   18         publicly reporting certain data; providing
   19         construction; amending s. 626.9201, F.S.; prohibiting
   20         insurers providing homeowners’ insurance or commercial
   21         property insurance from canceling, nonrenewing, or
   22         terminating a policy during a pending claim except
   23         under certain circumstances; amending s. 626.9541,
   24         F.S.; adding unfair claim settlement practices that
   25         constitute unfair methods of competition or unfair or
   26         deceptive acts or practices; prohibiting directors or
   27         officers of insolvent or impaired insurers from
   28         authorizing or permitting the payment of certain
   29         bonuses; defining the term “bonus”; providing a
   30         criminal penalty; amending s. 627.0613, F.S.;
   31         requiring the consumer advocate, in conjunction with
   32         the Department of Financial Services and the office,
   33         to annually prepare and make publicly available a
   34         report relating to insurer rate increases; amending s.
   35         627.351, F.S.; deleting a requirement that a Citizens
   36         Property Insurance Corporation policyholder making a
   37         claim for water damage has the burden of proving that
   38         the damage was not caused by flooding; amending s.
   39         627.35191, F.S.; requiring the corporation to provide
   40         to the Legislature and the Financial Services
   41         Commission an annual supplemental report relating to
   42         closed claims; specifying requirements for the report;
   43         amending s. 627.4133, F.S.; prohibiting insurers
   44         providing homeowners’ insurance from canceling,
   45         nonrenewing, or terminating a policy during a pending
   46         claim except under certain circumstances; amending s.
   47         627.420, F.S.; prohibiting certain actions by an
   48         insurer issuing a homeowner’s insurance binder before
   49         closing to a purchaser of residential property;
   50         requiring such insurer to perform any required
   51         inspections before binding coverage; requiring a
   52         seller of a new home purchase to allow access to the
   53         property for such inspection before closing; amending
   54         s. 627.701, F.S.; providing that if a roof deductible
   55         is applied under a personal lines residential property
   56         insurance policy, no other deductible may be applied
   57         to certain other losses; amending s. 627.7011, F.S.;
   58         providing that if a homeowner’s insurance policy
   59         provides an option with limited coverage, the insurer
   60         must offer a premium with a certain discount or
   61         credit; creating s. 627.70111, F.S.; requiring a
   62         specified notice period to a homeowner before any
   63         inspection of the homeowner’s residential property for
   64         insurance purposes, except under certain
   65         circumstances; amending s. 627.70131, F.S.; providing
   66         that repeated violations of certain prompt payment
   67         requirements are an unfair method of competition and
   68         an unfair or deceptive act or practice; deleting a
   69         provision providing that failure to comply with
   70         certain provisions does not form the sole basis for a
   71         private cause of action; amending s. 627.70132, F.S.;
   72         providing that certain timeframes to provide notice of
   73         a property insurance claim are tolled during the
   74         period of active duty for an insured in active
   75         military service; amending s. 627.70152, F.S.;
   76         requiring a property insurer to provide a certain
   77         response to a presuit notice to the department;
   78         deleting the authority for an insurer to require the
   79         claimant to participate in appraisal; providing that a
   80         policy must require a claimant’s consent; specifying a
   81         limitation and restriction on invoking appraisal;
   82         providing that a certain notice and response are
   83         admissible as evidence in certain proceedings;
   84         requiring that any alternative dispute resolution
   85         process be authorized by statute; creating s.
   86         627.70155, F.S.; specifying restrictions on property
   87         insurance policies relating to venue and controlling
   88         law provisions; amending s. 627.702, F.S.; providing
   89         that certain total losses under the valued policy law
   90         may not be subject to any requirement for the insured
   91         to participate in appraisal; amending s. 768.79, F.S.;
   92         revising conditions for making, and parties who may
   93         make, certain joint offers of judgment or settlement;
   94         providing an effective date.
   95          
   96  Be It Enacted by the Legislature of the State of Florida:
   97  
   98         Section 1. Subsection (8) of section 624.155, Florida
   99  Statutes, is amended to read:
  100         624.155 Civil remedy.—
  101         (8) The civil remedy specified in this section does not
  102  preempt any other remedy or cause of action provided for
  103  pursuant to any other statute or pursuant to the common law of
  104  this state. Any person may obtain a judgment under either the
  105  common-law remedy of bad faith or this statutory remedy, but
  106  shall not be entitled to a judgment under both remedies. This
  107  section shall not be construed to create a common-law cause of
  108  action. The damages recoverable pursuant to this section shall
  109  include those damages which are a reasonably foreseeable result
  110  of a specified violation of this section by the authorized
  111  insurer and may include an award or judgment in an amount that
  112  exceeds the policy limits. This section does not limit or
  113  prohibit the recovery of any damages under the common-law remedy
  114  of bad faith, and extracontractual, consequential damages may be
  115  recovered under such remedy.
  116         Section 2. Subsection (7) of section 624.3161, Florida
  117  Statutes, is amended to read:
  118         624.3161 Market conduct examinations.—
  119         (7) Notwithstanding subsection (1), any authorized insurer
  120  transacting property insurance business in this state shall may
  121  be subject to an additional market conduct examination after a
  122  hurricane if the insurer:
  123         (a) Is among the top 20 percent of insurers based upon a
  124  calculation of the ratio of hurricane-related property insurance
  125  claims filed to the number of property insurance policies in
  126  force;
  127         (b) Is among the top 20 percent of insurers based upon a
  128  calculation of the ratio of consumer complaints made to the
  129  department to hurricane-related claims;
  130         (c) Has made significant payments to its managing general
  131  agent since the hurricane; or
  132         (d) Is identified by the office as necessitating a market
  133  conduct exam for any other reason.
  134  
  135  All relevant criteria under this section and s. 624.316 shall be
  136  applied to the market conduct examination under this subsection.
  137  Such an examination must be initiated within 18 months after the
  138  landfall of a hurricane that results in an executive order or a
  139  state of emergency issued by the Governor. An examination of an
  140  insurer under this subsection must also include an examination
  141  of its managing general agent as if it were the insurer.
  142         Section 3. Section 624.4055, Florida Statutes, is amended
  143  to read:
  144         624.4055 Restrictions on existing private passenger
  145  automobile insurance.—An No insurer writing private passenger
  146  automobile insurance in this state may not continue to write
  147  such insurance if the insurer:
  148         (1) Writes homeowners’ insurance in another state but not
  149  in this state; or
  150         (2)Writes homeowners’ insurance in this state, but the
  151  number of homeowners’ insurance policies that it writes or
  152  renews in this state in any calendar year is less than 5 percent
  153  of the total number of policies written or renewed by the
  154  insurer for all kinds of insurance transacted in this state by
  155  the insurer, unless the insurer writing private passenger
  156  automobile insurance in this state is affiliated with an insurer
  157  writing homeowners’ insurance in this state.
  158         Section 4. Subsection (1) of section 624.407, Florida
  159  Statutes, is amended to read:
  160         624.407 Surplus required; new insurers.—
  161         (1) To receive authority to transact any one kind or
  162  combinations of kinds of insurance, as defined in part V of this
  163  chapter, an insurer applying for its original certificate of
  164  authority in this state shall possess surplus as to
  165  policyholders at least the greater of:
  166         (a) For a property and casualty insurer, $5 million, or
  167  $2.5 million for any other insurer;
  168         (b) For life insurers, 4 percent of the insurer’s total
  169  liabilities;
  170         (c) For life and health insurers, 4 percent of the
  171  insurer’s total liabilities, plus 6 percent of the insurer’s
  172  liabilities relative to health insurance;
  173         (d) For all insurers other than life insurers and life and
  174  health insurers, 10 percent of the insurer’s total liabilities;
  175         (e) Notwithstanding paragraph (a) or paragraph (d), for a
  176  domestic insurer that transacts residential property insurance
  177  and is:
  178         1. Not a wholly owned subsidiary of an insurer domiciled in
  179  any other state, $30 $15 million.
  180         2. A wholly owned subsidiary of an insurer domiciled in any
  181  other state, $50 million;
  182         (f) Notwithstanding paragraphs (a), (d), and (e), for a
  183  domestic insurer that only transacts limited sinkhole coverage
  184  insurance for personal lines residential property pursuant to s.
  185  627.7151, $7.5 million; or
  186         (g) Notwithstanding paragraphs (a), (d), and (e), for an
  187  insurer that only transacts residential property insurance in
  188  the form of renter’s insurance, tenant’s coverage, cooperative
  189  unit owner insurance, or any combination thereof, $10 million.
  190         Section 5. Paragraphs (f) and (g) of subsection (1) of
  191  section 624.408, Florida Statutes, are amended to read:
  192         624.408 Surplus required; current insurers.—
  193         (1) To maintain a certificate of authority to transact any
  194  one kind or combinations of kinds of insurance, as defined in
  195  part V of this chapter, an insurer in this state must at all
  196  times maintain surplus as to policyholders at least the greater
  197  of:
  198         (f) For residential property insurers not holding a
  199  certificate of authority before July 1, 2011, $30 $15 million.
  200         (g) For residential property insurers holding a certificate
  201  of authority before July 1, 2011, and until June 30, 2016, $5
  202  million; on or after July 1, 2016, and until June 30, 2021, $10
  203  million; on or after July 1, 2021, and until June 30, 2023, $15
  204  million; on or after July 1, 2023, $30 million.
  205  
  206  The office may reduce the surplus requirement in paragraphs (f)
  207  and (g) if the insurer is not writing new business, has premiums
  208  in force of less than $1 million per year in residential
  209  property insurance, or is a mutual insurance company.
  210         Section 6. Paragraph (a) of subsection (10) and subsection
  211  (11) of section 624.424, Florida Statutes, are amended to read:
  212         624.424 Annual statement and other information.—
  213         (10)(a) Each insurer or insurer group doing business in
  214  this state shall file on a quarterly basis in conjunction with
  215  financial reports required by paragraph (1)(a) a supplemental
  216  report on an individual and group basis on a form prescribed by
  217  the commission with information on personal lines and commercial
  218  lines residential property insurance policies in this state. The
  219  supplemental report shall include separate information for
  220  personal lines property policies and for commercial lines
  221  property policies and totals for each item specified, including
  222  premiums written for each of the property lines of business as
  223  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
  224  shall include the following information for each county on a
  225  monthly basis:
  226         1. Total number of policies in force at the end of each
  227  month.
  228         2. Total number of policies canceled.
  229         3. Total number of policies nonrenewed.
  230         4. Number of policies canceled due to hurricane risk.
  231         5. Number of policies nonrenewed due to hurricane risk.
  232         6. Number of new policies written.
  233         7. Total dollar value of structure exposure under policies
  234  that include wind coverage.
  235         8. Number of policies that exclude wind coverage.
  236         9. Number of claims open each month.
  237         10. Number of claims closed each month.
  238         11. Number of claims pending each month.
  239         12. Number of claims in which either the insurer or insured
  240  invoked any form of alternative dispute resolution;, which party
  241  invoked alternative dispute resolution; the pre-alternative
  242  dispute resolution payment made by the insurer, if any; the
  243  post-alternative dispute resolution payment made by the insurer,
  244  if any; and the specifying which form of alternative dispute
  245  resolution was used.
  246         (11) Beginning January 1, 2022, each authorized insurer or
  247  insurer group issuing personal lines or commercial lines
  248  residential property insurance policies in this state shall file
  249  with the office on an annual basis in conjunction with the
  250  statements required by paragraph (1)(a) a supplemental report on
  251  an individual and group basis for closed claims. The office
  252  shall compile the data for each insurer or insurer group on a
  253  statewide basis and make such data publicly available on its
  254  website monthly. Such data, when aggregated on a statewide basis
  255  as to an individual insurer or insurer group, is not a trade
  256  secret as defined in s. 688.002 or s. 812.081(1) and is not
  257  subject to the public records exemption for trade secrets
  258  provided in s. 119.0715. By January 1, 2024, the office shall
  259  also make publicly available the data required to be reported by
  260  each insurer or insurer group for the 2021 calendar year, the
  261  2022 calendar year, and the 2023 calendar year through July 1,
  262  2023, and collected by the office during the 2022 calendar year
  263  and subsequent years. The report must be on a form prescribed by
  264  the commission and must include the following information for
  265  each claim closed, excluding liability only claims, within the
  266  reporting period in this state:
  267         (a) The unique claim identification number.
  268         (b) The type of policy.
  269         (c) The zip code of the property where the claim occurred.
  270         (d) The county where the claim occurred.
  271         (e) The date of loss.
  272         (f) The peril or type of loss, including information about:
  273         1. The types of vendors used for mitigation, repair, or
  274  replacement; and
  275         2. The names of vendors used, if known.
  276         (g) The date the claim was reported to insurer.
  277         (h) The initial date the claim was closed, including
  278  information about whether the claim was closed with or without
  279  payment.
  280         (i) The date the claim was most recently reopened, if
  281  applicable.
  282         (j) The date a supplemental claim was filed, if applicable.
  283         (k) The date the claim was most recently closed, if
  284  different from the initial date the claim was closed.
  285         (l) The name of the public adjuster on the claim, if any.
  286         (m) The Florida Bar number and name of the attorney for the
  287  claimant, if any.
  288         (n) The total indemnity paid by the insurer.
  289         (o) The total loss adjustment expenses paid by the insurer.
  290         (p) The amounts, listed separately, amount paid for any
  291  claimant’s and insurer’s attorney fees, and specifying the
  292  amount incurred during prelitigation or appraisal and the amount
  293  incurred during arbitration or litigation, as applicable if any.
  294         (q) The amounts, listed separately, amount paid in costs
  295  for claimant’s and insurer’s attorney attorney’s expenses,
  296  including, but not limited to, expert witness fees.
  297         (r) The contingency risk multiplier, if any, that the
  298  claimant’s attorney requested to be applied in calculating the
  299  attorney fees awarded to the claimant’s attorney.
  300         (s) The contingency risk multiplier, if any, that a court
  301  applied in calculating the attorney fees awarded to the
  302  claimant’s attorney.
  303         (t) Data submitted by each claimant and each insurer or
  304  insurer group pursuant to s. 627.70152(3) and (4) to the
  305  department.
  306         (u) Any other information deemed necessary by the
  307  commission to provide the office with the ability to track
  308  litigation and claims trends occurring in the property market.
  309         Section 7. Subsection (4) is added to section 626.9201,
  310  Florida Statutes, to read:
  311         626.9201 Notice of cancellation or nonrenewal.—
  312         (4) Notwithstanding this section or any other law to the
  313  contrary, an insurer providing homeowners’ insurance or
  314  commercial property insurance may not cancel, nonrenew, or
  315  terminate a policy during a pending claim, except for nonpayment
  316  of premium.
  317         Section 8. Paragraphs (i), (o), and (w) of subsection (1)
  318  of section 626.9541, Florida Statutes, are amended to read:
  319         626.9541 Unfair methods of competition and unfair or
  320  deceptive acts or practices defined.—
  321         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
  322  ACTS.—The following are defined as unfair methods of competition
  323  and unfair or deceptive acts or practices:
  324         (i) Unfair claim settlement practices.—
  325         1. Attempting to settle claims on the basis of an
  326  application, when serving as a binder or intended to become a
  327  part of the policy, or any other material document which was
  328  altered without notice to, or knowledge or consent of, the
  329  insured;
  330         2. A material misrepresentation made to an insured or any
  331  other person having an interest in the proceeds payable under
  332  such contract or policy, for the purpose and with the intent of
  333  effecting settlement of such claims, loss, or damage under such
  334  contract or policy on less favorable terms than those provided
  335  in, and contemplated by, such contract or policy;
  336         3. Committing or performing with such frequency as to
  337  indicate a general business practice any of the following:
  338         a. Failing to adopt and implement standards for the proper
  339  investigation of claims;
  340         b. Misrepresenting pertinent facts or insurance policy
  341  provisions relating to coverages at issue;
  342         c. Failing to acknowledge and act promptly upon
  343  communications with respect to claims;
  344         d. Denying claims without conducting reasonable
  345  investigations based upon available information;
  346         e. Failing to affirm or deny full or partial coverage of
  347  claims, and, as to partial coverage, the dollar amount or extent
  348  of coverage, or failing to provide a written statement that the
  349  claim is being investigated, upon the written request of the
  350  insured within 30 days after proof-of-loss statements have been
  351  completed;
  352         f. Failing to promptly provide a reasonable explanation in
  353  writing to the insured of the basis in the insurance policy, in
  354  relation to the facts or applicable law, for denial of a claim
  355  or for the offer of a compromise settlement;
  356         g. Failing to promptly notify the insured of any additional
  357  information necessary for the processing of a claim;
  358         h. Failing to clearly explain the nature of the requested
  359  information and the reasons why such information is necessary;
  360  or
  361         i. Failing to pay personal injury protection insurance
  362  claims within the time periods required by s. 627.736(4)(b). The
  363  office may order the insurer to pay restitution to a
  364  policyholder, medical provider, or other claimant, including
  365  interest at a rate consistent with the amount set forth in s.
  366  55.03(1), for the time period within which an insurer fails to
  367  pay claims as required by law. Restitution is in addition to any
  368  other penalties allowed by law, including, but not limited to,
  369  the suspension of the insurer’s certificate of authority; or
  370         j.Compelling insureds to institute litigation to recover
  371  amounts due under an insurance policy by offering substantially
  372  less than the amounts ultimately recovered in actions brought by
  373  such insureds;
  374         k.Altering a field adjuster’s initial estimate, report,
  375  photographs, or written comments regarding photographs or
  376  observations of an insured risk without the express written
  377  approval of the adjuster obtained within 5 days after the
  378  alteration which clearly explains in detail the nature and
  379  extent of the changes;
  380         l.Failing to provide an insured with a complete,
  381  unredacted, and unaltered copy of a field adjuster’s initial
  382  report, estimate, and photographs within 10 business days after
  383  receipt of such materials; or
  384         m.Failing to provide an insured with a complete,
  385  unredacted, and unaltered copy of any report or estimate
  386  obtained from an engineer, an environmental consultant, a
  387  contractor, or another specialist retained by the insurer to
  388  investigate the claim within 10 business days after receipt of
  389  such report or estimate;
  390         4. Failing to pay undisputed amounts of partial or full
  391  benefits owed under first-party property insurance policies
  392  within 60 days after an insurer receives notice of a residential
  393  property insurance claim, determines the amounts of partial or
  394  full benefits, and agrees to coverage, unless payment of the
  395  undisputed benefits is prevented by factors beyond the control
  396  of the insurer as defined in s. 627.70131(5);
  397         5.Repeatedly failing to comply with s. 627.70131(7)(a); or
  398         6.Assigning three or more adjusters within a 6-month
  399  period on a claim arising from a natural disaster, including a
  400  tropical storm or hurricane, which is the subject of a state of
  401  emergency declared by executive order or proclamation of the
  402  Governor pursuant to s. 252.36.
  403         (o) Illegal dealings in premiums; excess or reduced charges
  404  for insurance.—
  405         1. Knowingly collecting any sum as a premium or charge for
  406  insurance, which is not then provided, or is not in due course
  407  to be provided, subject to acceptance of the risk by the
  408  insurer, by an insurance policy issued by an insurer as
  409  permitted by this code.
  410         2. Knowingly collecting as a premium or charge for
  411  insurance any sum in excess of or less than the premium or
  412  charge applicable to such insurance, in accordance with the
  413  applicable classifications and rates as filed with and approved
  414  by the office, and as specified in the policy; or, in cases when
  415  classifications, premiums, or rates are not required by this
  416  code to be so filed and approved, premiums and charges collected
  417  from a Florida resident in excess of or less than those
  418  specified in the policy and as fixed by the insurer.
  419  Notwithstanding any other provision of law, this provision shall
  420  not be deemed to prohibit the charging and collection, by
  421  surplus lines agents licensed under part VIII of this chapter,
  422  of the amount of applicable state and federal taxes, or fees as
  423  authorized by s. 626.916(4), in addition to the premium required
  424  by the insurer or the charging and collection, by licensed
  425  agents, of the exact amount of any discount or other such fee
  426  charged by a credit card facility in connection with the use of
  427  a credit card, as authorized by subparagraph (q)3., in addition
  428  to the premium required by the insurer. This subparagraph shall
  429  not be construed to prohibit collection of a premium for a
  430  universal life or a variable or indeterminate value insurance
  431  policy made in accordance with the terms of the contract.
  432         3.Imposing or requesting an additional premium for a
  433  policy of homeowner’s insurance because the insured filed a
  434  claim, unless the insurer’s file contains information from which
  435  the insurer in good faith determines that the insured acted
  436  negligently or intentionally caused damages that led to the
  437  claim.
  438         4.a.3.a. Imposing or requesting an additional premium for a
  439  policy of motor vehicle liability, personal injury protection,
  440  medical payment, or collision insurance or any combination
  441  thereof or refusing to renew the policy solely because the
  442  insured was involved in a motor vehicle accident unless the
  443  insurer’s file contains information from which the insurer in
  444  good faith determines that the insured was substantially at
  445  fault in the accident.
  446         b. An insurer which imposes and collects such a surcharge
  447  or which refuses to renew such policy shall, in conjunction with
  448  the notice of premium due or notice of nonrenewal, notify the
  449  named insured that he or she is entitled to reimbursement of
  450  such amount or renewal of the policy under the conditions listed
  451  below and will subsequently reimburse him or her or renew the
  452  policy, if the named insured demonstrates that the operator
  453  involved in the accident was:
  454         (I) Lawfully parked;
  455         (II) Reimbursed by, or on behalf of, a person responsible
  456  for the accident or has a judgment against such person;
  457         (III) Struck in the rear by another vehicle headed in the
  458  same direction and was not convicted of a moving traffic
  459  violation in connection with the accident;
  460         (IV) Hit by a “hit-and-run” driver, if the accident was
  461  reported to the proper authorities within 24 hours after
  462  discovering the accident;
  463         (V) Not convicted of a moving traffic violation in
  464  connection with the accident, but the operator of the other
  465  automobile involved in such accident was convicted of a moving
  466  traffic violation;
  467         (VI) Finally adjudicated not to be liable by a court of
  468  competent jurisdiction;
  469         (VII) In receipt of a traffic citation which was dismissed
  470  or nolle prossed; or
  471         (VIII) Not at fault as evidenced by a written statement
  472  from the insured establishing facts demonstrating lack of fault
  473  which are not rebutted by information in the insurer’s file from
  474  which the insurer in good faith determines that the insured was
  475  substantially at fault.
  476         c. In addition to the other provisions of this
  477  subparagraph, an insurer may not fail to renew a policy if the
  478  insured has had only one accident in which he or she was at
  479  fault within the current 3-year period. However, an insurer may
  480  nonrenew a policy for reasons other than accidents in accordance
  481  with s. 627.728. This subparagraph does not prohibit nonrenewal
  482  of a policy under which the insured has had three or more
  483  accidents, regardless of fault, during the most recent 3-year
  484  period.
  485         5.4. Imposing or requesting an additional premium for, or
  486  refusing to renew, a policy for motor vehicle insurance solely
  487  because the insured committed a noncriminal traffic infraction
  488  as described in s. 318.14 unless the infraction is:
  489         a. A second infraction committed within an 18-month period,
  490  or a third or subsequent infraction committed within a 36-month
  491  period.
  492         b. A violation of s. 316.183, when such violation is a
  493  result of exceeding the lawful speed limit by more than 15 miles
  494  per hour.
  495         6.5. Upon the request of the insured, the insurer and
  496  licensed agent shall supply to the insured the complete proof of
  497  fault or other criteria which justifies the additional charge or
  498  cancellation.
  499         7.6. No insurer shall impose or request an additional
  500  premium for motor vehicle insurance, cancel or refuse to issue a
  501  policy, or refuse to renew a policy because the insured or the
  502  applicant is a handicapped or physically disabled person, so
  503  long as such handicap or physical disability does not
  504  substantially impair such person’s mechanically assisted driving
  505  ability.
  506         8.7. No insurer may cancel or otherwise terminate any
  507  insurance contract or coverage, or require execution of a
  508  consent to rate endorsement, during the stated policy term for
  509  the purpose of offering to issue, or issuing, a similar or
  510  identical contract or coverage to the same insured with the same
  511  exposure at a higher premium rate or continuing an existing
  512  contract or coverage with the same exposure at an increased
  513  premium.
  514         9.8. No insurer may issue a nonrenewal notice on any
  515  insurance contract or coverage, or require execution of a
  516  consent to rate endorsement, for the purpose of offering to
  517  issue, or issuing, a similar or identical contract or coverage
  518  to the same insured at a higher premium rate or continuing an
  519  existing contract or coverage at an increased premium without
  520  meeting any applicable notice requirements.
  521         10.9. No insurer shall, with respect to premiums charged
  522  for motor vehicle insurance, unfairly discriminate solely on the
  523  basis of age, sex, marital status, or scholastic achievement.
  524         11.10. Imposing or requesting an additional premium for
  525  motor vehicle comprehensive or uninsured motorist coverage
  526  solely because the insured was involved in a motor vehicle
  527  accident or was convicted of a moving traffic violation.
  528         12.11. No insurer shall cancel or issue a nonrenewal notice
  529  on any insurance policy or contract without complying with any
  530  applicable cancellation or nonrenewal provision required under
  531  the Florida Insurance Code.
  532         13.12. No insurer shall impose or request an additional
  533  premium, cancel a policy, or issue a nonrenewal notice on any
  534  insurance policy or contract because of any traffic infraction
  535  when adjudication has been withheld and no points have been
  536  assessed pursuant to s. 318.14(9) and (10). However, this
  537  subparagraph does not apply to traffic infractions involving
  538  accidents in which the insurer has incurred a loss due to the
  539  fault of the insured.
  540         (w) Soliciting or accepting new or renewal insurance risks
  541  or payment of certain bonuses by insolvent or impaired insurer
  542  prohibited; penalty.—
  543         1. Whether or not delinquency proceedings as to the insurer
  544  have been or are to be initiated, but while such insolvency or
  545  impairment exists, no director or officer of an insurer, except
  546  with the written permission of the office, shall authorize or
  547  permit the insurer to solicit or accept new or renewal insurance
  548  risks in this state after such director or officer knew, or
  549  reasonably should have known, that the insurer was insolvent or
  550  impaired.
  551         2.Regardless of whether delinquency proceedings as to the
  552  insurer have been or are to be initiated, but while such
  553  insolvency or impairment exists, a director or an officer of an
  554  impaired insurer may not authorize or permit the insurer to pay
  555  a bonus to any officer or director of the insurer.
  556         3.As used in this paragraph, the term:
  557         a.“Bonus” means a payment, in addition to an officer’s or
  558  a director’s usual compensation, which is in addition to any
  559  amounts contracted for or otherwise legally due.
  560         b. “Impaired” includes impairment of capital or surplus, as
  561  defined in s. 631.011(12) and (13).
  562         4.2. Any such director or officer, upon conviction of a
  563  violation of this paragraph, commits is guilty of a felony of
  564  the third degree, punishable as provided in s. 775.082, s.
  565  775.083, or s. 775.084.
  566         Section 9. Section 627.0613, Florida Statutes, is amended
  567  to read:
  568         627.0613 Consumer advocate.—
  569         (1) The Chief Financial Officer must appoint a consumer
  570  advocate who must represent the general public of the state
  571  before the department and the office. The consumer advocate must
  572  report directly to the Chief Financial Officer, but is not
  573  otherwise under the authority of the department or of any
  574  employee of the department. The consumer advocate has such
  575  powers as are necessary to carry out the duties of the office of
  576  consumer advocate, including, but not limited to, the powers to:
  577         (a)(1) Recommend to the department or office, by petition,
  578  the commencement of any proceeding or action; appear in any
  579  proceeding or action before the department or office; or appear
  580  in any proceeding before the Division of Administrative Hearings
  581  relating to subject matter under the jurisdiction of the
  582  department or office.
  583         (b)(2) Have access to and use of all files, records, and
  584  data of the department or office.
  585         (c)(3) Examine rate and form filings submitted to the
  586  office, hire consultants as necessary to aid in the review
  587  process, and recommend to the department or office any position
  588  deemed by the consumer advocate to be in the public interest.
  589         (d)(4) Prepare an annual budget for presentation to the
  590  Legislature by the department, which budget must be adequate to
  591  carry out the duties of the office of consumer advocate.
  592         (2)By March 1 of each year, and in conjunction with the
  593  department and the office, the consumer advocate shall prepare
  594  and make publicly available a report analyzing rate filings in
  595  the previous year in which a rate increase was requested and
  596  approved by the office and summarizing the grounds on which each
  597  increase was approved.
  598         Section 10. Paragraph (kk) of subsection (6) of section
  599  627.351, Florida Statutes, is amended to read:
  600         627.351 Insurance risk apportionment plans.—
  601         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  602         (kk) A corporation policyholder making a claim for water
  603  damage against the corporation has the burden of proving that
  604  the damage was not caused by flooding.
  605         Section 11. Subsection (3) is added to section 627.35191,
  606  Florida Statutes, to read:
  607         627.35191 Required reports.—
  608         (3) By January 1 of each year, Citizens Property Insurance
  609  Corporation shall also provide to the Legislature and the
  610  Financial Services Commission a supplemental report on an
  611  individual and group basis for closed claims. The report must be
  612  on a form prescribed by the commission and must include the
  613  following information for each claim closed, excluding liability
  614  only claims, within the reporting period in this state:
  615         (a) The unique claim identification number.
  616         (b) The type of policy.
  617         (c) The zip code of the property where the claim occurred.
  618         (d) The county where the claim occurred.
  619         (e) The date of loss.
  620         (f) The peril or type of loss, including information about:
  621         1. The types of vendors used for mitigation, repair, or
  622  replacement; and
  623         2. The names of vendors used, if known.
  624         (g) The date the claim was reported to the corporation.
  625         (h) The initial date the claim was closed, including
  626  information about whether the claim was closed with or without
  627  payment.
  628         (i) The date the claim was most recently reopened, if
  629  applicable.
  630         (j) The date a supplemental claim was filed, if applicable.
  631         (k) The date the claim was most recently closed, if
  632  different from the initial date the claim was closed.
  633         (l) The name of the public adjuster on the claim, if any.
  634         (m) The Florida Bar number and name of the attorney for the
  635  claimant, if any.
  636         (n) The total indemnity paid by the corporation.
  637         (o) The total loss adjustment expenses paid by the
  638  corporation.
  639         (p) The amounts, listed separately, paid for the claimant’s
  640  and the corporation’s attorney fees, if any, specifying the
  641  amount incurred during prelitigation or appraisal and the amount
  642  incurred during arbitration or litigation, as applicable.
  643         (q) The amounts, listed separately, paid in costs for the
  644  claimant’s and corporation’s attorney’s expenses, including, but
  645  not limited to, expert witness fees.
  646         (r) The contingency risk multiplier, if any, that the
  647  claimant’s attorney requested to be applied in calculating the
  648  attorney fees awarded to the claimant’s attorney.
  649         (s) The contingency risk multiplier, if any, that a court
  650  applied in calculating the attorney fees awarded to the
  651  claimant’s attorney.
  652         (t) Any other information deemed necessary by the
  653  commission to provide the corporation with the ability to track
  654  litigation and claims trends occurring in the property market.
  655         Section 12. Paragraph (f) is added to subsection (2) of
  656  section 627.4133, Florida Statutes, to read:
  657         627.4133 Notice of cancellation, nonrenewal, or renewal
  658  premium.—
  659         (2) With respect to any personal lines or commercial
  660  residential property insurance policy, including, but not
  661  limited to, any homeowner, mobile home owner, farmowner,
  662  condominium association, condominium unit owner, apartment
  663  building, or other policy covering a residential structure or
  664  its contents:
  665         (f)Notwithstanding this section or any other law to the
  666  contrary, an insurer providing homeowners’ insurance may not
  667  cancel, nonrenew, or terminate a policy during a pending claim,
  668  except for nonpayment of premium.
  669         Section 13. Section 627.420, Florida Statutes, is amended
  670  to read:
  671         627.420 Binders.—
  672         (1) Binders or other contracts for temporary property,
  673  marine, casualty, or surety insurance may be made orally or in
  674  writing, and shall be deemed to include all the usual terms of
  675  the policy as to which the binder was given together with such
  676  applicable endorsements as are designated in the binder, except
  677  as superseded by the clear and express terms of the binder. No
  678  notice of cancellation or notice of nonrenewal otherwise
  679  required by this chapter shall be required unless the duration
  680  of the binder exceeds 60 days. However, for purposes of ss.
  681  627.728 and 627.7281, an insurer shall give 5 days’ prior notice
  682  of cancellation of a binder, unless the binder is replaced by a
  683  policy or another binder in the same or another company.
  684         (2)Notwithstanding subsection (1) and any other law, an
  685  insurer that issues a homeowners’ insurance binder before
  686  closing to a purchaser of residential property may not cancel
  687  coverage, require additional repairs as a condition of coverage,
  688  or increase the policy premium for the first contract year of
  689  the homeowner’s insurance policy. An insurer must perform any
  690  required inspections before binding coverage. For a new home
  691  purchase, a seller must allow access to the property for the
  692  purpose of such inspection before closing.
  693         Section 14. Paragraph (a) of subsection (10) of section
  694  627.701, Florida Statutes, is amended to read:
  695         627.701 Liability of insureds; coinsurance; deductibles.—
  696         (10)(a) Notwithstanding any other provision of law, an
  697  insurer issuing a personal lines residential property insurance
  698  policy may include in such policy a separate roof deductible
  699  that meets all of the following requirements:
  700         1. The insurer has complied with the offer requirements
  701  under subsection (7) regarding a deductible applicable to losses
  702  from perils other than a hurricane.
  703         2. The roof deductible may not exceed the lesser of 2
  704  percent of the Coverage A limit of the policy or 50 percent of
  705  the cost to replace the roof.
  706         3. The premium that a policyholder is charged for the
  707  policy includes an actuarially sound credit or premium discount
  708  for the roof deductible.
  709         4. The roof deductible applies only to a claim adjusted on
  710  a replacement cost basis.
  711         5. The roof deductible does not apply to any of the
  712  following events:
  713         a. A total loss to a primary structure in accordance with
  714  the valued policy law under s. 627.702 which is caused by a
  715  covered peril.
  716         b. A roof loss resulting from a hurricane as defined in s.
  717  627.4025(2)(c).
  718         c. A roof loss resulting from a tree fall or other hazard
  719  that damages the roof and punctures the roof deck.
  720         d. A roof loss requiring the repair of less than 50 percent
  721  of the roof.
  722  
  723  If a roof deductible is applied, no other deductible under the
  724  policy may be applied to the loss or to any other loss to the
  725  property caused by the same covered peril.
  726         Section 15. Paragraph (c) is added to subsection (1) of
  727  section 627.7011, Florida Statutes, to read:
  728         627.7011 Homeowners’ policies; offer of replacement cost
  729  coverage and law and ordinance coverage.—
  730         (1) Prior to issuing a homeowner’s insurance policy, the
  731  insurer must offer each of the following:
  732         (c)If a homeowner’s insurance policy provides an option
  733  with limited coverage, a premium for such reduced coverage which
  734  includes a substantial, actuarially sound premium discount or
  735  credit for the impact of the reduced coverage.
  736  
  737  An insurer is not required to make the offers required by this
  738  subsection with respect to the issuance or renewal of a
  739  homeowner’s policy that contains the provisions specified in
  740  paragraph (b) for law and ordinance coverage limited to 25
  741  percent of the dwelling limit, except that the insurer must
  742  offer the law and ordinance coverage limited to 50 percent of
  743  the dwelling limit. This subsection does not prohibit the offer
  744  of a guaranteed replacement cost policy.
  745         Section 16. Section 627.70111, Florida Statutes, is created
  746  to read:
  747         627.70111 Inspections of residential property; required
  748  notice to homeowners.—A homeowner must be notified at least 48
  749  hours before any inspection of the homeowner’s residential
  750  property which is required for insurance purposes, unless the
  751  homeowner agrees to a shorter timeframe.
  752         Section 17. Paragraph (a) of subsection (7) of section
  753  627.70131, Florida Statutes, is amended to read:
  754         627.70131 Insurer’s duty to acknowledge communications
  755  regarding claims; investigation.—
  756         (7)(a) Within 90 days after an insurer receives notice of
  757  an initial, reopened, or supplemental property insurance claim
  758  from a policyholder, the insurer shall pay or deny such claim or
  759  a portion of the claim unless the failure to pay is caused by
  760  factors beyond the control of the insurer which reasonably
  761  prevent such payment. The insurer shall provide a reasonable
  762  explanation in writing to the policyholder of the basis in the
  763  insurance policy, in relation to the facts or applicable law,
  764  for the payment, denial, or partial denial of a claim. If the
  765  insurer’s claim payment is less than specified in any insurer’s
  766  detailed estimate of the amount of the loss, the insurer must
  767  provide a reasonable explanation in writing of the difference to
  768  the policyholder. Any payment of an initial or supplemental
  769  claim or portion of such claim made 90 days after the insurer
  770  receives notice of the claim, or made more than 15 days after
  771  there are no longer factors beyond the control of the insurer
  772  which reasonably prevented such payment, whichever is later,
  773  bears interest at the rate set forth in s. 55.03. Interest
  774  begins to accrue from the date the insurer receives notice of
  775  the claim. The provisions of this subsection may not be waived,
  776  voided, or nullified by the terms of the insurance policy. If
  777  there is a right to prejudgment interest, the insured must
  778  select whether to receive prejudgment interest or interest under
  779  this subsection. Interest is payable when the claim or portion
  780  of the claim is paid. Failure to comply with this subsection
  781  constitutes a violation of this code, and repeated violations
  782  constitute an unfair method of competition and an unfair or
  783  deceptive act or practice as defined in s. 626.9541. However,
  784  failure to comply with this subsection does not form the sole
  785  basis for a private cause of action.
  786         Section 18. Subsection (2) of section 627.70132, Florida
  787  Statutes, is amended to read:
  788         627.70132 Notice of property insurance claim.—
  789         (2) A claim or reopened claim, but not a supplemental
  790  claim, under an insurance policy that provides property
  791  insurance, as defined in s. 624.604, including a property
  792  insurance policy issued by an eligible surplus lines insurer,
  793  for loss or damage caused by any peril is barred unless notice
  794  of the claim was given to the insurer in accordance with the
  795  terms of the policy within 1 year after the date of loss. A
  796  supplemental claim is barred unless notice of the supplemental
  797  claim was given to the insurer in accordance with the terms of
  798  the policy within 18 months after the date of loss. The time
  799  limitations of this subsection are tolled during the period of
  800  active duty for an insured in active military service.
  801         Section 19. Subsection (4) and paragraph (a) of subsection
  802  (6) of section 627.70152, Florida Statutes, are amended, and
  803  subsection (8) is added to that section, to read:
  804         627.70152 Suits arising under a property insurance policy.—
  805         (4) INSURER DUTIES.—An insurer must have a procedure for
  806  the prompt investigation, review, and evaluation of the dispute
  807  stated in the notice and must investigate each claim contained
  808  in the notice in accordance with the Florida Insurance Code. An
  809  insurer must respond in writing within 10 business days after
  810  receiving the notice specified in subsection (3). The insurer
  811  must provide the response to the department by e-mail and, to
  812  the claimant by e-mail if the insured has designated an e-mail
  813  address in the notice, must provide the response to the insured
  814  by e-mail.
  815         (a) If an insurer is responding to a notice served on the
  816  insurer following a denial of coverage by the insurer, the
  817  insurer must respond by:
  818         1. Accepting coverage;
  819         2. Continuing to deny coverage; or
  820         3. Asserting the right to reinspect the damaged property.
  821  If the insurer responds by asserting the right to reinspect the
  822  damaged property, it has 14 business days after the response
  823  asserting that right to reinspect the property and accept or
  824  continue to deny coverage. The time limits provided in s. 95.11
  825  are tolled during the reinspection period if such time limits
  826  expire before the end of the reinspection period. If the insurer
  827  continues to deny coverage, the claimant may file suit without
  828  providing additional notice to the insurer.
  829         (b) If an insurer is responding to a notice provided to the
  830  insurer alleging an act or omission by the insurer other than a
  831  denial of coverage, the insurer must respond by making a
  832  settlement offer or requesting requiring the claimant to
  833  participate in appraisal or another method of alternative
  834  dispute resolution. A policy must require a claimant’s consent
  835  to participate in appraisal. Appraisal must be invoked within 30
  836  days after presentation of a dispute, but may not be initially
  837  invoked after the filing of a lawsuit. The time limits provided
  838  in s. 95.11 are tolled as long as appraisal or other alternative
  839  dispute resolution is ongoing if such time limits expire during
  840  the appraisal process or dispute resolution process. If the
  841  appraisal or alternative dispute resolution has not been
  842  concluded within 90 days after the expiration of the 10-day
  843  notice of intent to initiate litigation specified in subsection
  844  (3), the claimant or claimant’s attorney may immediately file
  845  suit without providing the insurer additional notice.
  846         (6) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice
  847  provided pursuant to subsection (3) and, if applicable, the
  848  documentation to support the information provided in the notice:
  849         (a) Are not admissible as evidence only in a any proceeding
  850  regarding attorney fees.
  851         (8) ALTERNATIVE DISPUTE RESOLUTION PROCESS.—Notwithstanding
  852  any contractual provision to the contrary, any alternative
  853  dispute resolution process entered into pursuant to this section
  854  must be authorized by statute.
  855         Section 20. Section 627.70155, Florida Statutes, is created
  856  to read:
  857         627.70155 Prohibited venue and controlling law provisions.
  858  A residential or commercial property insurance policy, including
  859  a residential or commercial property insurance policy issued by
  860  an eligible surplus lines insurer, may not require:
  861         (1)An insured to bring an administrative or legal action
  862  in a venue outside of this state;
  863         (2)Any arbitration, mediation, or other legal proceeding
  864  to be conducted outside of this state; or
  865         (3)That a law of a state other than Florida be applied to
  866  any legal proceeding between the insured and insurer.
  867         Section 21. Paragraph (a) of subsection (1) of section
  868  627.702, Florida Statutes, is amended to read:
  869         627.702 Valued policy law.—
  870         (1)(a) In the event of the total loss of any building,
  871  structure, mobile home as defined in s. 320.01(2), or
  872  manufactured building as defined in s. 553.36(13), located in
  873  this state and insured by any insurer as to a covered peril, in
  874  the absence of any change increasing the risk without the
  875  insurer’s consent and in the absence of fraudulent or criminal
  876  fault on the part of the insured or one acting in her or his
  877  behalf, the insurer’s liability under the policy for such total
  878  loss, if caused by a covered peril, shall be in the amount of
  879  money for which such property was so insured as specified in the
  880  policy and for which a premium has been charged and paid. A
  881  total loss under this paragraph may not be subject to any
  882  requirement for the insured to participate in appraisal.
  883         Section 22. Subsection (6) of section 768.79, Florida
  884  Statutes, is amended to read:
  885         768.79 Offer of judgment and demand for judgment.—
  886         (6) For a first-party property insurance breach of contract
  887  action, a property insurer may make a joint offer of judgment or
  888  settlement, and a plaintiff may make a joint demand for judgment
  889  or settlement, which that is conditioned on the mutual
  890  acceptance of all the joint offerees.
  891         Section 23. This act shall take effect July 1, 2023.