Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1894
       
       
       
       
       
       
                                Barcode 588204                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/20/2009           .                                
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       The Committee on Finance and Tax (Ring) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 155 and 156
    4  insert:
    5         Section 7. Section 626.9375, Florida Statutes, is created
    6  to read:
    7         626.9375 Claims administration.—
    8         (1) Without limitation of any right or defense of a surplus
    9  lines insurer, the following acts by or on behalf of a surplus
   10  lines insurer shall not be deemed to constitute a waiver of any
   11  provision of a policy or of any defense of the insurer issuing
   12  the policy:
   13         (a) Acknowledging the receipt of notice of loss or claim
   14  under the policy.
   15         (b) Furnishing forms for reporting a loss or claim, giving
   16  information relative thereto, making proof of loss, or receiving
   17  or acknowledging receipt of any such forms or proof, completed
   18  or uncompleted.
   19         (c) Investigating any loss or claim under any policy or
   20  engaging in negotiations regarding a possible settlement of any
   21  such loss or claim.
   22         (2) A surplus lines liability insurer may not deny coverage
   23  based on a particular coverage defense unless:
   24         (a) Within 30 days after the liability insurer knew or
   25  should have known of the coverage defense, written notice of
   26  reservation of rights to assert a coverage defense is given to
   27  the named insured by registered or certified mail sent to the
   28  last known address of the insured or by hand delivery; and
   29         (b) Within 60 days after compliance with paragraph (a) or
   30  receipt of a summons and complaint naming the insured as a
   31  defendant, whichever is later, but in no case later than 30 days
   32  before trial commences, the insurer:
   33         1. Gives written notice to the named insured by registered
   34  or certified mail of its refusal to defend the insured;
   35         2. Obtains from the insured a nonwaiver agreement following
   36  full disclosure of the specific facts and policy provisions upon
   37  which the coverage defense is asserted and the duties,
   38  obligations, and liabilities of the insurer during and following
   39  the pendency of the subject litigation; or
   40         3. Retains independent counsel that is mutually agreeable
   41  to the parties. Reasonable fees for the counsel may be agreed
   42  upon between the parties or, if no agreement is reached, shall
   43  be set by the court.
   44  
   45  ================= T I T L E  A M E N D M E N T ================
   46         And the title is amended as follows:
   47         Delete line 34
   48  and insert:
   49         statement printed on the face of the policy; creating
   50         s. 626.9375, F.S.; specifying certain acts that do not
   51         constitute a waiver of any provision of a policy or of
   52         any defense of the insurer; providing circumstances
   53         under which a surplus lines liability insurer may deny
   54         coverage based on a particular coverage defense;
   55         providing