Florida Senate - 2012                                     SB 728
       
       
       
       By Senator Ring
       
       
       
       
       32-00374B-12                                           2012728__
    1                        A bill to be entitled                      
    2         An act relating to residential property insurance;
    3         amending s. 627.40951, F.S., relating to checklists of
    4         policy contents; applying provisions to commercial
    5         lines residential insurance policies entered into on
    6         or after a certain date; deleting obsolete provisions;
    7         amending s. 627.4137, F.S.; revising provisions
    8         relating to the disclosure of certain insurer and
    9         policy information to claimants; amending s. 627.701,
   10         F.S.; revising provisions relating to deductibles
   11         included in policies entered into on or after a
   12         certain date; allowing deductibles for windstorm
   13         losses; providing that the failure to provide certain
   14         statements on a policy will result in voiding certain
   15         deductibles; providing that the deductible for
   16         hurricane losses is based on dwelling policy limits
   17         for insurance contracts entered into on or after a
   18         certain date, specifying that certain provisions
   19         relating to deductibles must be stated in the policy,
   20         capping the amount of the deductible, and providing
   21         that failure to provide certain notice requirements
   22         voids a separate deductible for hurricane or windstorm
   23         losses; providing an effective date.
   24  
   25  Be It Enacted by the Legislature of the State of Florida:
   26  
   27         Section 1. Section 627.40951, Florida Statutes, is amended
   28  to read:
   29         627.40951 Standard personal and commercial lines
   30  residential insurance policy.—
   31         (1) The Legislature finds that many consumers who filed
   32  property loss claims as a result of the hurricanes that struck
   33  this state in 2004 were inadequately insured due to the
   34  difficulty consumers encounter in trying to understand the
   35  complex nature of property insurance policies. The purpose and
   36  intent of this section is to require have property and casualty
   37  insurers to offer standard personal and commercial lines
   38  residential property insurance policies and standard checklists
   39  of policy contents, in accordance with s. 627.4143 if
   40  applicable, to consumers and to ensure that these policies and
   41  checklists are written in a simple format with easily readable
   42  language that will enable most consumers to understand the
   43  principal benefits and coverage provided in the policy; the
   44  principal exclusions and limitations or reductions contained in
   45  the policy, including, but not limited to, deductibles,
   46  coinsurance, and any other limitations or reductions; and any
   47  additional coverage provided through any rider or endorsement
   48  that accompanies the policy and renewal or cancellation
   49  provisions.
   50         (2) The Chief Financial Officer shall appoint an advisory
   51  committee composed of two representatives of insurers currently
   52  selling personal lines residential property insurance coverage,
   53  two representatives of property and casualty agents, two
   54  representatives of consumers, two representatives of the
   55  Commissioner of Insurance Regulation, and the Insurance Consumer
   56  Advocate or her or his designee. The Chief Financial Officer or
   57  her or his designee shall serve as chair of the committee. The
   58  committee shall develop policy language for coverage that
   59  represents general industry standards in the market for
   60  comprehensive coverage under personal lines residential
   61  insurance policies and shall develop a checklist to be used with
   62  each type of personal lines residential property insurance
   63  policy. The committee shall review policies and related forms
   64  written by Insurance Services Office, Inc. The committee shall
   65  file a report containing its recommendations to the President of
   66  the Senate and the Speaker of the House of Representatives by
   67  January 15, 2006. An No insurer is not shall be required to
   68  offer the standard personal or commercial lines residential
   69  property insurance policy unless required by further act of the
   70  Legislature.
   71         (3) This section applies to commercial lines residential
   72  property insurance policies entered into on or after July 1,
   73  2012.
   74         Section 2. Section 627.4137, Florida Statutes, is amended
   75  to read:
   76         627.4137 Disclosure of certain information required.—
   77         (1) Upon the written request of the claimant or the
   78  claimant’s attorney, the insured, or her or his insurance agent,
   79  shall disclose the name and coverage of each insurer that may
   80  pay all or a portion of any liability claim by a claimant and
   81  forward such request to all affected insurers within 30 days
   82  after the request.
   83         (2)(1) Each insurer that which does or may provide
   84  liability insurance coverage to pay all or a portion of any
   85  claim that which might be made shall provide, within 30 days
   86  after receipt of the written request of the claimant, a
   87  statement, under oath, of a corporate officer or the insurer’s
   88  claims manager or superintendent setting forth the following
   89  information with regard to each known policy of insurance,
   90  including excess or umbrella insurance:
   91         (a) The name of the insurer.
   92         (b) The name of each insured.
   93         (c) The limits of the liability coverage.
   94         (d) A statement of any policy or coverage defense that
   95  which such insurer reasonably believes is available to such
   96  insurer at the time of filing such statement.
   97         (e) A copy of the policy.
   98  
   99  In addition, the insured, or her or his insurance agent, upon
  100  written request of the claimant or the claimant’s attorney,
  101  shall disclose the name and coverage of each known insurer to
  102  the claimant and shall forward such request for information as
  103  required by this subsection to all affected insurers. The
  104  insurer shall then supply the information required in this
  105  subsection to the claimant within 30 days of receipt of such
  106  request.
  107         (3)(2) The statement required by paragraph (2)(d) must
  108  subsection (1) shall be amended immediately upon discovery of
  109  facts calling for an amendment to such statement.
  110         (4)(3) Any request made to a self-insured corporation
  111  pursuant to this section shall be sent by certified mail to the
  112  registered agent of the disclosing entity.
  113         Section 3. Subsection (1), paragraph (a) of subsection (4),
  114  and subsection (8) of section 627.701, Florida Statutes, are
  115  amended to read:
  116         627.701 Liability of insureds; coinsurance; deductibles.—
  117         (1) A property insurer, including a surplus line carrier
  118  issuing a policy of insurance in this state, may issue an
  119  insurance policy or contract covering either real or personal
  120  property in this state which requires contains provisions
  121  requiring the insured to be liable as a coinsurer with the
  122  insurer issuing the policy for any part of the loss or damage by
  123  covered peril to the property described in the policy only if:
  124         (a) The following words are printed or stamped on the face
  125  of the policy, or a form containing the following words is
  126  attached to the policy: “Coinsurance contract: The rate charged
  127  in this policy is based upon the use of the coinsurance clause
  128  attached to this policy, with the consent of the insured.”;
  129         (b) The coinsurance clause in the policy is clearly
  130  identifiable; and
  131         (c) The rate for the insurance with or without the
  132  coinsurance clause is furnished the insured upon his or her
  133  request.
  134         (4)(a) A Any policy that contains any type of a separate
  135  hurricane or windstorm deductible must, on its face, include in
  136  at least 18-point, boldfaced type no smaller than 18 points the
  137  following statement: “THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE
  138  FOR HURRICANE OR WINDSTORM LOSSES, WHICH MAY RESULT IN HIGH OUT
  139  OF-POCKET EXPENSES TO YOU.” A policy containing a coinsurance
  140  provision applicable to hurricane or windstorm losses must, on
  141  its face, include in at least 18-point, boldfaced type no
  142  smaller than 18 points the following statement: “THIS POLICY
  143  CONTAINS A CO-PAY PROVISION THAT MAY RESULT IN HIGH OUT-OF
  144  POCKET EXPENSES TO YOU.” Failure to comply with this paragraph
  145  voids any separate deductible for hurricane or windstorm losses
  146  and the policy reverts to the all-covered-perils deductible
  147  included on policies entered into on or after July 1, 2012.
  148         (8) Notwithstanding the other provisions of this section or
  149  of other law, but only as to hurricane coverage as defined in s.
  150  627.4025(2) for commercial lines residential coverages, an
  151  insurer may offer a deductible in an amount not exceeding 10
  152  percent of the dwelling policy limits insured value if, at the
  153  time of such offer and at each renewal, the insurer also offers
  154  to the policyholder a deductible in the amount of 3 percent of
  155  the dwelling policy limits insured value. Nothing in
  156         (a) This subsection does not prohibit prohibits any
  157  deductible otherwise authorized by this section.
  158         (b) All forms by which the offers authorized in this
  159  subsection are made or required to be made must shall be on
  160  forms that are adopted or approved by the commission or office.
  161         (c) For insurance contracts entered into on or after July
  162  1, 2012:
  163         1. The policy must state on the declarations page the
  164  dwelling policy limits as an aggregate dollar amount and the
  165  deductible as an aggregate dollar amount, as well as the
  166  percentage.
  167         2. If the deductible is stated on a per-building basis, the
  168  dwelling policy limits must also be clearly stated on a per
  169  building basis and the dollar amount of the deductible for each
  170  building must also be identified on the same page.
  171         3. Failure to comply with the provisions of this section
  172  voids any separate deductible for hurricane or windstorm losses,
  173  and the applicable deductible for the policy reverts to the
  174  policy’s all-covered-perils deductible.
  175         (d) As used in this subsection, the term “dwelling policy
  176  limits” means the maximum amount of insurance coverage on the
  177  building structure itself as stated on the declarations page of
  178  the policy, not including coverage for alternative living
  179  expenses, contents, loss of income, or any other optional
  180  coverage.
  181         Section 4. This act shall take effect July 1, 2012.