| 1 | A bill to be entitled |
| 2 | An act relating to surplus lines insurers; amending s. |
| 3 | 626.913, F.S.; specifying nonapplication of certain |
| 4 | provisions of law to surplus lines insurance; providing an |
| 5 | exception; amending s. 626.924, F.S.; requiring surplus |
| 6 | lines policies issued on or after a specified date to have |
| 7 | a specified statement printed on the face of the policy; |
| 8 | creating s. 626.9371, F.S.; providing methods of payment |
| 9 | for premiums and claims regarding surplus lines contracts |
| 10 | issued on or after a specified date; requiring a written |
| 11 | authorization to complete payment under certain |
| 12 | circumstances; providing for waiver of such requirement; |
| 13 | providing that an insurer remains liable for payment of a |
| 14 | claim if corresponding funds are misdirected; creating s. |
| 15 | 626.9372, F.S.; requiring that certain insurers provide a |
| 16 | disclosure statement to a claimant under certain |
| 17 | circumstances; requiring that such statement include |
| 18 | certain information; requiring that an insurer disclose |
| 19 | certain additional information upon the request of a |
| 20 | claimant; requiring the amendment of such statement under |
| 21 | certain circumstances; creating s. 626.9373, F.S.; |
| 22 | providing for the payment of attorney's fees in cases |
| 23 | involving surplus lines insurers at the trial and |
| 24 | appellate levels; amending s. 626.9374, F.S.; requiring |
| 25 | that a surplus lines policy containing a separate |
| 26 | hurricane or wind deductible issued on or after a |
| 27 | specified date have a specified statement printed on the |
| 28 | face of the policy; requiring that a surplus lines policy |
| 29 | containing a coinsurance provision applicable to hurricane |
| 30 | or wind losses issued on or after a specified date have a |
| 31 | specified statement printed on the face of the policy; |
| 32 | providing for the retroactive applicability of certain |
| 33 | provisions; providing severability; providing an effective |
| 34 | date. |
| 35 |
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| 36 | Be It Enacted by the Legislature of the State of Florida: |
| 37 |
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| 38 | Section 1. Subsection (4) is added to section 626.913, |
| 39 | Florida Statutes, to read: |
| 40 | 626.913 Surplus Lines Law; short title; purposes.-- |
| 41 | (4) Except as may be specifically stated to apply to |
| 42 | surplus lines insurers, the provisions of chapter 627 do not |
| 43 | apply to surplus lines insurance authorized under ss. 626.913- |
| 44 | 626.937, the Surplus Lines Law. |
| 45 | Section 2. Section 626.924, Florida Statutes, is amended |
| 46 | to read: |
| 47 | 626.924 Information required on contract.-- |
| 48 | (1) Each surplus lines agent through whom a surplus lines |
| 49 | coverage is procured shall write or print on the outside of the |
| 50 | policy and on any certificate, cover note, or other confirmation |
| 51 | of the insurance his or her name, address, and identification |
| 52 | number and the name and address of the producing agent through |
| 53 | whom the business originated and shall have stamped or written |
| 54 | upon the first page of the policy or the certificate, cover |
| 55 | note, or confirmation of insurance the words: THIS INSURANCE IS |
| 56 | ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS |
| 57 | INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF |
| 58 | THE FLORIDA INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF |
| 59 | RECOVERY FOR THE OBLIGATION OF AN INSOLVENT UNLICENSED INSURER. |
| 60 | (2) Surplus lines policies issued on or after October 1, |
| 61 | 2009, shall have stamped or printed on the face of the policy in |
| 62 | at least 14-point, boldface type, the following statement: |
| 63 | SURPLUS LINES INSURERS' POLICY RATES AND FORMS ARE NOT APPROVED |
| 64 | BY ANY FLORIDA REGULATORY AGENCY. |
| 65 | Section 3. Section 626.9371, Florida Statutes, is created |
| 66 | to read: |
| 67 | 626.9371 Payment of premiums and claims.-- |
| 68 | (1) The premiums for surplus lines insurance contracts |
| 69 | issued on or after October 1, 2009, in this state or covering |
| 70 | risks located in this state shall be paid in cash consisting of |
| 71 | coins, currency, checks, or money orders or by using a debit |
| 72 | card, credit card, automatic electronic funds transfer, or |
| 73 | payroll deduction plan. |
| 74 | (2) All payments of claims made in this state under any |
| 75 | contract of surplus lines insurance issued on or after October |
| 76 | 1, 2009, shall be made: |
| 77 | (a) In cash consisting of coins, currency, checks, drafts, |
| 78 | or money orders and, if made by check or draft, shall be in such |
| 79 | form as will comply with the standards for cash items adopted by |
| 80 | the Federal Reserve System to facilitate the sorting, routing, |
| 81 | and mechanized processing of such items; or |
| 82 | (b) By debit card or any other form of electronic transfer |
| 83 | if authorized in writing by the recipient or the recipient's |
| 84 | representative. Any fees or costs to be charged against the |
| 85 | recipient must be disclosed in writing to the recipient or the |
| 86 | recipient's representative at the time of written authorization. |
| 87 | However, the written authorization requirement may be waived by |
| 88 | the recipient or the recipient's representative if the insurer |
| 89 | verifies the identity of the insured or the insured's recipient |
| 90 | and does not charge a fee for the transaction. If the funds are |
| 91 | misdirected, the insurer remains liable for the payment of the |
| 92 | claim. |
| 93 | Section 4. Section 626.9372, Florida Statutes, is created |
| 94 | to read: |
| 95 | 626.9372 Disclosure statement of certain information |
| 96 | required-liability claims.-- |
| 97 | (1) Each insurer that provides or may provide liability |
| 98 | insurance coverage to pay all or a portion of any claim that |
| 99 | might be made under surplus lines policies issued on or after |
| 100 | October 1, 2009, shall provide, within 60 days after the written |
| 101 | request of the claimant, a statement of a corporate officer or |
| 102 | the insurer's claims manager or superintendent setting forth the |
| 103 | following information with regard to each known policy of |
| 104 | insurance, including excess or umbrella insurance: |
| 105 | (a) The name of the insurer. |
| 106 | (b) The name of each insured. |
| 107 | (c) The limits of the liability coverage. |
| 108 | (d) A statement of any policy or coverage defense that |
| 109 | such insurer reasonably believes is available to such insurer at |
| 110 | the time of filing such statement. |
| 111 | (e) A copy of the policy. |
| 112 |
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| 113 | In addition, the insured, or her or his insurance agent, upon |
| 114 | written request of the claimant or the claimant's attorney, |
| 115 | shall disclose the name and coverage of each known insurer to |
| 116 | the claimant and forward such request for information as |
| 117 | required by this subsection to all affected insurers. The |
| 118 | insurer shall supply the information required in this subsection |
| 119 | to the claimant within 60 days after receipt of such request. |
| 120 | (2) The statement required by subsection (1) must be |
| 121 | amended within 60 days after the date of discovery of facts |
| 122 | necessitating an amendment to such statement. |
| 123 | Section 5. Section 626.9373, Florida Statutes, is created |
| 124 | to read: |
| 125 | 626.9373 Attorney's fees.-- |
| 126 | (1) Upon the rendition of a judgment or decree by any |
| 127 | court of this state against a surplus lines insurer in favor of |
| 128 | any named or omnibus insured or the named beneficiary under a |
| 129 | policy or contract executed by the insurer on or after the |
| 130 | effective date of this act, the trial court or, if the insured |
| 131 | or beneficiary prevails on appeal, the appellate court, shall |
| 132 | adjudge or decree against the insurer in favor of the insured or |
| 133 | beneficiary a reasonable sum as fees or compensation for the |
| 134 | insured's or beneficiary's attorney prosecuting the lawsuit for |
| 135 | which recovery is awarded. |
| 136 | (2) If awarded, attorney's fees or compensation shall be |
| 137 | included in the judgment or decree rendered in the case. |
| 138 | Section 6. Section 626.9374, Florida Statutes, is created |
| 139 | to read: |
| 140 | 626.9374 Liability of insureds; deductible and |
| 141 | coinsurance.-- |
| 142 | (1) Any surplus lines, personal lines residential property |
| 143 | insurance policy issued on or after October 1, 2009, containing |
| 144 | a separate hurricane or wind deductible must on its face include |
| 145 | in at least 14-point, boldface type the following statement: |
| 146 | THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE OR WIND |
| 147 | LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU. |
| 148 | (2) A surplus lines, personal lines residential property |
| 149 | insurance policy issued on or after October 1, 2009, containing |
| 150 | a coinsurance provision applicable to hurricane or wind losses |
| 151 | must on its face include in at least 14-point, boldface type the |
| 152 | following statement: THIS POLICY CONTAINS A CO-PAY PROVISION |
| 153 | THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU. |
| 154 | Section 7. The amendments to s. 626.913, Florida Statutes, |
| 155 | in this act are remedial in nature and operate retroactively to |
| 156 | the regulation of surplus lines insurers from October 1, 1988, |
| 157 | except with respect to lawsuits that are filed on or before May |
| 158 | 15, 2009. |
| 159 | Section 8. If any provision of this act or the application |
| 160 | thereof to any person or circumstance is held invalid, the |
| 161 | invalidity shall not affect other provisions or applications of |
| 162 | the act which can be given effect without the invalid provision |
| 163 | or application, and to this end the provisions of this act are |
| 164 | declared severable. |
| 165 | Section 9. This act shall take effect upon becoming a law. |