HB 1087

1	A bill to be entitled
2	An act relating to persons designated to receive insurer
3	notifications; amending s. 627.4133, F.S.; changing the
4	designated person or persons who must be notified by an
5	insurer from the "insured" to the "first-named insured" in
6	situations involving the nonrenewal, renewal premium,
7	cancellation, or termination of workers' compensation,
8	employer liability, or certain property and casualty
9	insurance coverage; amending s. 627.7277, F.S.; making a
10	conforming change that specifies the "first-named insured"
11	as the person who is to receive notification of a renewal
12	premium; amending s. 627.728, F.S.; changing the
13	designated person or persons who must be notified by an
14	insurer from the "insured" to the "first-named insured" in
15	certain situations involving the cancellation or
16	nonrenewal of motor vehicle insurance coverage; making a
17	conforming change that specifies the "first-named
18	insured's insurance agent" as a person who is to receive
19	certain notifications relating to motor vehicle insurance
20	coverage; amending s. 627.7281, F.S.; making a conforming
21	change that specifies the "first-named insured" as the
22	person who is to receive notification of cancellation of
23	motor vehicle insurance coverage; providing an effective
24	date.
25
26	Be It Enacted by the Legislature of the State of Florida:
27
28	Section 1.  Paragraphs (a) and (b) of subsection (1) and
29	paragraphs (a) and (b) of subsection (2) of section 627.4133,
30	Florida Statutes, are amended to read:
31	627.4133  Notice of cancellation, nonrenewal, or renewal
32	premium.-
33	(1)  Except as provided in subsection (2):
34	(a)  An insurer issuing a policy providing coverage for
35	workers' compensation and employer's liability insurance,
36	property, casualty, except mortgage guaranty, surety, or marine
37	insurance, other than motor vehicle insurance subject to s.
38	627.728, shall give the first-named named insured at least 45
39	days' advance written notice of nonrenewal or of the renewal
40	premium. If the policy is not to be renewed, the written notice
41	shall state the reason or reasons as to why the policy is not to
42	be renewed. This requirement applies only if the insured has
43	furnished all of the necessary information so as to enable the
44	insurer to develop the renewal premium prior to the expiration
45	date of the policy to be renewed.
46	(b)  An insurer issuing a policy providing coverage for
47	property, casualty, except mortgage guaranty, surety, or marine
48	insurance, other than motor vehicle insurance subject to s.
49	627.728 or s. 627.7281, shall give the first-named named insured
50	written notice of cancellation or termination other than
51	nonrenewal at least 45 days prior to the effective date of the
52	cancellation or termination, including in the written notice the
53	reason or reasons for the cancellation or termination, except
54	that:
55	1.  When cancellation is for nonpayment of premium, at
56	least 10 days' written notice of cancellation accompanied by the
57	reason therefor shall be given. As used in this subparagraph,
58	the term "nonpayment of premium" means failure of the named
59	insured to discharge when due any of her or his obligations in
60	connection with the payment of premiums on a policy or any
61	installment of such premium, whether the premium is payable
62	directly to the insurer or its agent or indirectly under any
63	premium finance plan or extension of credit, or failure to
64	maintain membership in an organization if such membership is a
65	condition precedent to insurance coverage. "Nonpayment of
66	premium" also means the failure of a financial institution to
67	honor an insurance applicant's check after delivery to a
68	licensed agent for payment of a premium, even if the agent has
69	previously delivered or transferred the premium to the insurer.
70	If a dishonored check represents the initial premium payment,
71	the contract and all contractual obligations shall be void ab
72	initio unless the nonpayment is cured within the earlier of 5
73	days after actual notice by certified mail is received by the
74	applicant or 15 days after notice is sent to the applicant by
75	certified mail or registered mail, and if the contract is void,
76	any premium received by the insurer from a third party shall be
77	refunded to that party in full; and
78	2.  When such cancellation or termination occurs during the
79	first 90 days during which the insurance is in force and the
80	insurance is canceled or terminated for reasons other than
81	nonpayment of premium, at least 20 days' written notice of
82	cancellation or termination accompanied by the reason therefor
83	shall be given except where there has been a material
84	misstatement or misrepresentation or failure to comply with the
85	underwriting requirements established by the insurer.
86
87	After the policy has been in effect for 90 days, no such policy
88	shall be canceled by the insurer except when there has been a
89	material misstatement, a nonpayment of premium, a failure to
90	comply with underwriting requirements established by the insurer
91	within 90 days of the date of effectuation of coverage, or a
92	substantial change in the risk covered by the policy or when the
93	cancellation is for all insureds under such policies for a given
94	class of insureds. This subsection does not apply to
95	individually rated risks having a policy term of less than 90
96	days.
97	(2)  With respect to any personal lines or commercial
98	residential property insurance policy, including, but not
99	limited to, any homeowner's, mobile home owner's, farmowner's,
100	condominium association, condominium unit owner's, apartment
101	building, or other policy covering a residential structure or
102	its contents:
103	(a)  The insurer shall give the first-named named insured
104	at least 45 days' advance written notice of the renewal premium.
105	(b)  The insurer shall give the first-named named insured
106	written notice of nonrenewal, cancellation, or termination at
107	least 100 days prior to the effective date of the nonrenewal,
108	cancellation, or termination. However, the insurer shall give at
109	least 100 days' written notice, or written notice by June 1,
110	whichever is earlier, for any nonrenewal, cancellation, or
111	termination that would be effective between June 1 and November
112	30. The notice must include the reason or reasons for the
113	nonrenewal, cancellation, or termination, except that:
114	1.  The insurer shall give the first-named named insured
115	written notice of nonrenewal, cancellation, or termination at
116	least 180 days prior to the effective date of the nonrenewal,
117	cancellation, or termination for a first-named named insured
118	whose residential structure has been insured by that insurer or
119	an affiliated insurer for at least a 5-year period immediately
120	prior to the date of the written notice.
121	2.  When cancellation is for nonpayment of premium, at
122	least 10 days' written notice of cancellation accompanied by the
123	reason therefor shall be given. As used in this subparagraph,
124	the term "nonpayment of premium" means failure of the named
125	insured to discharge when due any of her or his obligations in
126	connection with the payment of premiums on a policy or any
127	installment of such premium, whether the premium is payable
128	directly to the insurer or its agent or indirectly under any
129	premium finance plan or extension of credit, or failure to
130	maintain membership in an organization if such membership is a
131	condition precedent to insurance coverage. "Nonpayment of
132	premium" also means the failure of a financial institution to
133	honor an insurance applicant's check after delivery to a
134	licensed agent for payment of a premium, even if the agent has
135	previously delivered or transferred the premium to the insurer.
136	If a dishonored check represents the initial premium payment,
137	the contract and all contractual obligations shall be void ab
138	initio unless the nonpayment is cured within the earlier of 5
139	days after actual notice by certified mail is received by the
140	applicant or 15 days after notice is sent to the applicant by
141	certified mail or registered mail, and if the contract is void,
142	any premium received by the insurer from a third party shall be
143	refunded to that party in full.
144	3.  When such cancellation or termination occurs during the
145	first 90 days during which the insurance is in force and the
146	insurance is canceled or terminated for reasons other than
147	nonpayment of premium, at least 20 days' written notice of
148	cancellation or termination accompanied by the reason therefor
149	shall be given except where there has been a material
150	misstatement or misrepresentation or failure to comply with the
151	underwriting requirements established by the insurer.
152	4.  The requirement for providing written notice of
153	nonrenewal by June 1 of any nonrenewal that would be effective
154	between June 1 and November 30 does not apply to the following
155	situations, but the insurer remains subject to the requirement
156	to provide such notice at least 100 days prior to the effective
157	date of nonrenewal:
158	a.  A policy that is nonrenewed due to a revision in the
159	coverage for sinkhole losses and catastrophic ground cover
160	collapse pursuant to s. 627.706, as amended by s. 30, chapter
161	2007-1, Laws of Florida.
162	b.  A policy that is nonrenewed by Citizens Property
163	Insurance Corporation, pursuant to s. 627.351(6), for a policy
164	that has been assumed by an authorized insurer offering
165	replacement or renewal coverage to the policyholder.
166
167	After the policy has been in effect for 90 days, the policy
168	shall not be canceled by the insurer except when there has been
169	a material misstatement, a nonpayment of premium, a failure to
170	comply with underwriting requirements established by the insurer
171	within 90 days of the date of effectuation of coverage, or a
172	substantial change in the risk covered by the policy or when the
173	cancellation is for all insureds under such policies for a given
174	class of insureds. This paragraph does not apply to individually
175	rated risks having a policy term of less than 90 days.
176	Section 2.  Subsection (2) of section 627.7277, Florida
177	Statutes, is amended to read:
178	627.7277  Notice of renewal premium.-
179	(2)  An insurer shall mail or deliver to the first-named
180	insured its policyholder at least 30 days' advance written
181	notice of the renewal premium for the policy.
182	Section 3.  Paragraph (a) of subsection (3), paragraphs (a)
183	and (d) of subsection (4), and subsections (5) and (6) of
184	section 627.728, Florida Statutes, are amended to read:
185	627.728  Cancellations; nonrenewals.-
186	(3)(a)  No notice of cancellation of a policy to which this
187	section applies shall be effective unless mailed or delivered by
188	the insurer to the first-named named insured and to the first-
189	named named insured's insurance agent at least 45 days prior to
190	the effective date of cancellation, except that, when
191	cancellation is for nonpayment of premium, at least 10 days'
192	notice of cancellation accompanied by the reason therefor shall
193	be given. No notice of cancellation of a policy to which this
194	section applies shall be effective unless the reason or reasons
195	for cancellation accompany the notice of cancellation.
196	(4)(a)  No insurer shall fail to renew a policy unless it
197	mails or delivers to the first-named named insured, at the
198	address shown in the policy, and to the first-named named
199	insured's insurance agent at her or his business address, at
200	least 45 days' advance notice of its intention not to renew; and
201	the reasons for refusal to renew must accompany such notice.
202	This subsection does not apply:
203	1.  If the insurer has manifested its willingness to renew;
204	or
205	2.  In case of nonpayment of premium.
206
207	Notwithstanding the failure of an insurer to comply with this
208	subsection, the policy shall terminate on the effective date of
209	any other automobile liability insurance policy procured by the
210	insured with respect to any automobile designated in both
211	policies. Unless a written explanation for refusal to renew
212	accompanies the notice of intention not to renew, the policy
213	shall remain in full force and effect.
214	(d)  Instead of canceling or nonrenewing a policy, an
215	insurer may, upon expiration of the policy term, transfer a
216	policy to another insurer under the same ownership or management
217	as the transferring insurer, by giving the first-named named
218	insured at least 45 days' advance notice of its intent to
219	transfer the policy and of the premium and the specific reasons
220	for any increase in the premium.
221	(5)  United States postal proof of mailing or certified or
222	registered mailing of notice of cancellation, of intention not
223	to renew, or of reasons for cancellation, or of the intention of
224	the insurer to issue a policy by an insurer under the same
225	ownership or management, to the first-named named insured at the
226	address shown in the policy shall be sufficient proof of notice.
227	(6)  When a policy is canceled, other than for nonpayment
228	of premium, or in the event of failure to renew a policy to
229	which subsection (4) applies, the insurer shall notify the
230	first-named named insured of her or his possible eligibility for
231	insurance through the Automobile Joint Underwriting Association.
232	Such notice shall accompany or be included in the notice of
233	cancellation or the notice of intent not to renew and shall
234	state that such notice of availability of the Automobile Joint
235	Underwriting Association is given pursuant to this section.
236	Section 4.  Section 627.7281, Florida Statutes, is amended
237	to read:
238	627.7281  Cancellation notice.-An insurer issuing a policy
239	of motor vehicle insurance not covered under the cancellation
240	provisions of s. 627.728 shall give the first-named named
241	insured notice of cancellation at least 45 days prior to the
242	effective date of cancellation, except that, when cancellation
243	is for nonpayment of premium, at least 10 days' notice of
244	cancellation accompanied by the reason therefor shall be given.
245	As used in this section, "policy" does not include a binder as
246	defined in s. 627.420 unless the duration of the binder period
247	exceeds 60 days.
248	Section 5.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.