Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. HB 7077, 2nd Eng.
                        Barcode 790212
                            CHAMBER ACTION
              Senate                               House
                                   .                    
                                   .                    
 1                                 .                    
                                   .                    
 2                                 .                    
                                   .                    
 3         Floor: WD/2R            .                    
       05/02/2007 12:59 PM         .                    
 4  ______________________________________________________________
 5  
 6  
 7  
 8  
 9  
10  ______________________________________________________________
11  Senators Atwater and Deutch moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         Between lines 2181 and 2182,
15  
16  insert:  
17         Section 20.  Paragraph (i) of subsection (1) of section
18  626.9541, Florida Statutes, is amended to read:
19         626.9541  Unfair methods of competition and unfair or
20  deceptive acts or practices defined.--
21         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR
22  DECEPTIVE ACTS.--The following are defined as unfair methods
23  of competition and unfair or deceptive acts or practices:
24         (i)  Unfair claim settlement practices.--
25         1.  Attempting to settle claims on the basis of an
26  application, when serving as a binder or intended to become a
27  part of the policy, or any other material document which was
28  altered without notice to, or knowledge or consent of, the
29  insured;
30         2.  A material misrepresentation made to an insured or
31  any other person having an interest in the proceeds payable
                                  1
    10:29 AM   05/01/07                          h707702e2c-25-s07

Florida Senate - 2007 SENATOR AMENDMENT Bill No. HB 7077, 2nd Eng. Barcode 790212 1 under such contract or policy, for the purpose and with the 2 intent of effecting settlement of such claims, loss, or damage 3 under such contract or policy on less favorable terms than 4 those provided in, and contemplated by, such contract or 5 policy; or 6 3. A violation of s. 627.70131(5), where the insurer's 7 handling of the claim is found to be dishonest or in reckless 8 disregard for the rights of any insured; 9 4. Failing to pay an undisputed amount of partial or 10 full benefits under a first-party property insurance policy 11 within 30 days after determining the amount of partial or full 12 benefits and agreeing to coverage; or 13 5.3. Committing or performing with such frequency as 14 to indicate a general business practice any of the following: 15 a. Failing to adopt and implement standards for the 16 proper investigation of claims; 17 b. Misrepresenting pertinent facts or insurance policy 18 provisions relating to coverages at issue; 19 c. Failing to acknowledge and act promptly upon 20 communications with respect to claims; 21 d. Denying claims without conducting reasonable 22 investigations based upon available information; 23 e. Failing to affirm or deny full or partial coverage 24 of claims, and, as to partial coverage, the dollar amount or 25 extent of coverage, or failing to provide a written statement 26 that the claim is being investigated, upon the written request 27 of the insured within 30 days after proof-of-loss statements 28 have been completed; 29 f. Failing to promptly provide a reasonable 30 explanation in writing to the insured of the basis in the 31 insurance policy, in relation to the facts or applicable law, 2 10:29 AM 05/01/07 h707702e2c-25-s07
Florida Senate - 2007 SENATOR AMENDMENT Bill No. HB 7077, 2nd Eng. Barcode 790212 1 for denial of a claim or for the offer of a compromise 2 settlement; 3 g. Failing to promptly notify the insured of any 4 additional information necessary for the processing of a 5 claim; or 6 h. Failing to clearly explain the nature of the 7 requested information and the reasons why such information is 8 necessary. 9 10 (Redesignate subsequent sections.) 11 12 13 ================ T I T L E A M E N D M E N T =============== 14 And the title is amended as follows: 15 Line 68, after the first semicolon, 16 17 insert: 18 amending s. 626.9541, F.S.; including 19 additional violations and actions in the 20 definition of unfair claim settlement 21 practices; 22 23 24 25 26 27 28 29 30 31 3 10:29 AM 05/01/07 h707702e2c-25-s07