Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 682
Barcode 415840
CHAMBER ACTION
Senate House
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04/19/2006 03:40 PM .
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11 The Committee on Banking and Insurance (Baker) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 627.442, Florida Statutes, is
19 created to read:
20 627.442 Construction contract insurance provisions;
21 acceptance, rejection, or application.--
22 (1) If a written construction contract requires a
23 subcontractor, sub-subcontractor, or materialman to provide an
24 insurance policy or certificate of insurance to the general
25 contractor or another subcontractor for work performed or
26 materials provided, which extends coverage rights to an
27 additional insured, the general contractor or subcontractor is
28 deemed to have accepted the insurance policy or certificate of
29 insurance as conforming to the written construction contract
30 unless the general contractor or subcontractor rejects the
31 insurance policy or certificate of insurance in writing within
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 682
Barcode 415840
1 30 business days for commercial construction projects and 7
2 business days for residential construction projects after
3 receipt of the insurance policy or certificate of insurance.
4 The written rejection must specify the reason for rejection.
5 However, the general contractor or subcontractor may not be
6 deemed to have accepted an insurance policy or certificate of
7 insurance that does not comply with the insurance coverage
8 limits specified in the construction contract, that was
9 knowingly and fraudulently altered, or that reflects coverages
10 or conditions that are not contained in the underlying policy.
11 (2) After a general contractor or subcontractor
12 accepts an insurance policy or certificate of insurance or is
13 deemed to have accepted the insurance policy or certificate of
14 insurance, a general contractor or subcontractor may not use
15 the lack of conforming insurance as a reason to reject work
16 previously completed by a subcontractor or sub-subcontractor,
17 reject materials previously supplied by a materialman, or
18 withhold payment for work previously completed or materials
19 previously supplied. However, the general contractor or
20 subcontractor may reject work previously completed or
21 materials previously supplied or withhold payment for such
22 work or materials if the policy or certificate provided by the
23 subcontractor, sub-subcontractor, or materialman:
24 (a) Does not comply with the insurance coverage limits
25 specified in the construction contract;
26 (b) Was knowingly and fraudulently altered or reflects
27 coverages or conditions that are not contained in the
28 underlying policy; or
29 (c) Is canceled, nonrenewed, or materially and
30 adversely altered during the term of the construction
31 contract.
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 682
Barcode 415840
1 (3) Subsection (1) does not preclude a general
2 contractor or subcontractor from rejecting as nonconforming an
3 insurance policy or certificate of insurance previously
4 accepted or deemed to have been accepted; however, such a
5 rejection shall be in writing and shall specify the reason for
6 rejection. A general contractor or subcontractor who rejects
7 in writing an insurance policy or certificate of insurance as
8 nonconforming and states the specific reason for such
9 rejection may withhold payment for the work performed or
10 materials supplied after the date of the rejection of the
11 policy or certificate.
12 (4) A policy of insurance issued by an authorized
13 insurer or self-insurance fund that is subject to ss. 631.901
14 631.932 may not be rejected as nonconforming by a general
15 contactor on the grounds that such authorized insurer or
16 self-insurance fund is rated or not rated by a nationally
17 recognized insurance rating service.
18 (5) This section shall not apply if at the time of the
19 request for proposals or bids, or prior to the subcontractor,
20 sub-subcontractor, or materialman commencing work or supplying
21 materials under the construction contract, the general
22 contractor or subcontractor provides a sample of an acceptable
23 certificate of insurance or a one-page schedule accurately
24 reflecting all insurance requirements which extend coverage
25 rights to an additional insured for that contract to the
26 subcontractor, sub-subcontractor, or materialman and the
27 insurance provided by the subcontractor, sub-subcontractor, or
28 materialman does not comply with the construction contract. A
29 schedule or sample certificate of insurance issued under this
30 subsection shall not be deemed to amend or modify the contract
31 between the parties in any way or to waive any requirement of
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 682
Barcode 415840
1 the contract unless the schedule or certificate expressly
2 states that such an amendment, modification, or waiver is
3 intended.
4 (6) For purposes of this section, term:
5 (a) "Residential construction project" means the
6 construction, remodeling, repair, or improvement of a
7 one-family, two-family, or three-family residence not
8 exceeding two habitable stories above no more than one
9 uninhabitable story, and accessory-use structures in
10 connection therewith.
11 (b) "Commercial construction project" means any
12 construction, remodeling, repair, or improvement that does not
13 constitute a residential construction project.
14 (7) This section shall apply to contracts entered into
15 on or after July 1, 2006.
16 Section 2. Section 627.443, Florida Statutes, is
17 created to read:
18 627.443 Insurance rating service.--Notwithstanding any
19 other provision in this chapter, any person requiring a
20 workers' compensation policy pursuant to a construction
21 contract may not require that the policy be issued by an
22 insurer or self-insurance fund that is rated by a nationally
23 recognized insurance rating service if the issuing insurer or
24 self-insurance fund is subject to part V of chapter 631.
25 Section 3. This act shall take effect July 1, 2006.
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28 ================ T I T L E A M E N D M E N T ===============
29 And the title is amended as follows:
30 Delete everything before the enacting clause
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 682
Barcode 415840
1 and insert:
2 A bill to be entitled
3 An act relating to construction contracts;
4 creating s. 627.442, F.S.; specifying
5 acceptance of certain insurance provisions of a
6 construction contract under certain
7 circumstances; providing exceptions;
8 prohibiting certain actions after acceptance of
9 such provisions; providing an exception
10 authorizing such actions under certain
11 circumstances; authorizing contractors or
12 subcontractors to reject certain accepted
13 construction contract insurance provisions as
14 nonconforming under certain circumstances;
15 authorizing such contractors and subcontractors
16 to withhold payment for work performed or
17 materials supplied under certain circumstances;
18 prohibiting rejecting certain policies of
19 insurance on certain grounds; specifying
20 nonapplication of construction contract
21 insurance provisions under certain
22 circumstances; providing construction;
23 providing definitions; providing for
24 application to certain contracts; creating s.
25 627.443, F.S.; prohibiting a person who
26 requires a workers' compensation policy under a
27 construction contract from requiring that the
28 workers' compensation policy be issued by an
29 insurer or self-insurance fund that is rated by
30 a nationally recognized insurance rating
31 service if the issuing insurer or
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 682
Barcode 415840
1 self-insurance fund is subject to specified
2 laws; providing an effective date.
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