Florida Senate - 2015 COMMITTEE AMENDMENT Bill No. CS for SB 1064 Ì740412lÎ740412 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Judiciary (Ring) recommended the following: 1 Senate Amendment to Amendment (142260) (with title 2 amendment) 3 4 Between lines 66 and 67 5 insert: 6 Section 3. Paragraph (a) of subsection (1) and paragraph 7 (a) of subsection (5) of section 627.70131, Florida Statutes, 8 are amended to read: 9 627.70131 Insurer’s duty to acknowledge communications 10 regarding claims; investigation.— 11 (1)(a) Upon an insurer’s receiving a communication with 12 respect to a claim, the insurer shall, within 714calendar 13 days, review and acknowledge receipt of such communication 14 unless payment is made within that period of time or unless the 15 failure to acknowledge is caused by factors beyond the control 16 of the insurer which reasonably prevent such acknowledgment. If 17 the acknowledgment is not in writing, a notification indicating 18 acknowledgment shall be made in the insurer’s claim file and 19 dated. A communication made to or by an agent of an insurer with 20 respect to a claim shall constitute communication to or by the 21 insurer. If a residential property insurer receives a 22 communication in writing from a third party identified in s. 23 627.422(2) with respect to the claim requesting that the insurer 24 acknowledge the existence of a policy of insurance on the 25 property, the insurer must respond to the communication within 7 26 days after the request. If the insurer’s acknowledgment is not 27 in writing, a notification indicating acknowledgment must be 28 made in the insurer’s claim file and dated. 29 (5)(a) Within 4590days after an insurer receives notice 30 of an initial, reopened, or supplemental property insurance 31 claim from a policyholder, the insurer shall pay or deny such 32 claim or a portion of the claim unless the failure to pay is 33 caused by factors beyond the control of the insurer which 34 reasonably prevent such payment. Any payment of an initial or 35 supplemental claim or portion of such claim made 4590days 36 after the insurer receives notice of the claim, or made more 37 than 15 days after there are no longer factors beyond the 38 control of the insurer which reasonably prevented such payment, 39 whichever is later, bears interest at the rate set forth in s. 40 55.03. Interest begins to accrue from the date the insurer 41 receives notice of the claim. The provisions of this subsection 42 may not be waived, voided, or nullified by the terms of the 43 insurance policy. If there is a right to prejudgment interest, 44 the insured shall select whether to receive prejudgment interest 45 or interest under this subsection. Interest is payable when the 46 claim or portion of the claim is paid. Failure to comply with 47 this subsection constitutes a violation of this code. However, 48 failure to comply with this subsection does not form the sole 49 basis for a private cause of action. 50 Section 4. Section 627.7142, Florida Statutes, is amended 51 to read: 52 627.7142 Homeowner Claims Bill of Rights.—An insurer 53 issuing a personal lines residential property insurance policy 54 in this state must provide a Homeowner Claims Bill of Rights to 55 a policyholder within 714days after receiving an initial 56 communication with respect to a claim, unless the claim follows 57 an event that is the subject of a declaration of a state of 58 emergency by the Governor. The purpose of the bill of rights is 59 to summarize, in simple, nontechnical terms, existing Florida 60 law regarding the rights of a personal lines residential 61 property insurance policyholder who files a claim of loss. The 62 Homeowner Claims Bill of Rights is specific to the claims 63 process and does not represent all of a policyholder’s rights 64 under Florida law regarding the insurance policy. The Homeowner 65 Claims Bill of Rights does not create a civil cause of action by 66 any individual policyholder or class of policyholders against an 67 insurer or insurers. The failure of an insurer to properly 68 deliver the Homeowner Claims Bill of Rights is subject to 69 administrative enforcement by the office but is not admissible 70 as evidence in a civil action against an insurer. The Homeowner 71 Claims Bill of Rights does not enlarge, modify, or contravene 72 statutory requirements, including, but not limited to, ss. 73 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does 74 not prohibit an insurer from exercising its right to repair 75 damaged property in compliance with the terms of an applicable 76 policy or ss. 627.7011(5)(e) and 627.702(7). The Homeowner 77 Claims Bill of Rights must state: 78 79 HOMEOWNER CLAIMS 80 BILL OF RIGHTS 81 This Bill of Rights is specific to the claims process 82 and does not represent all of your rights under 83 Florida law regarding your policy. There are also 84 exceptions to the stated timelines when conditions are 85 beyond your insurance company’s control. This document 86 does not create a civil cause of action by an 87 individual policyholder, or a class of policyholders, 88 against an insurer or insurers and does not prohibit 89 an insurer from exercising its right to repair damaged 90 property in compliance with the terms of an applicable 91 policy. 92 93 YOU HAVE THE RIGHT TO: 94 1. Receive from your insurance company an 95 acknowledgment of your reported claim within 714days 96 after the time you communicated the claim. 97 2. Upon written request, receive from your 98 insurance company within 1530days after you have 99 submitted a complete proof-of-loss statement to your 100 insurance company, confirmation that your claim is 101 covered in full, partially covered, or denied, or 102 receive a written statement that your claim is being 103 investigated. 104 3. Within 4590days, subject to any dual 105 interest noted in the policy, receive full settlement 106 payment for your claim or payment of the undisputed 107 portion of your claim, or your insurance company’s 108 denial of your claim. 109 4. Free mediation of your disputed claim by the 110 Florida Department of Financial Services, Division of 111 Consumer Services, under most circumstances and 112 subject to certain restrictions. 113 5. Neutral evaluation of your disputed claim, if 114 your claim is for damage caused by a sinkhole and is 115 covered by your policy. 116 6. Contact the Florida Department of Financial 117 Services, Division of Consumer Services’ toll-free 118 helpline for assistance with any insurance claim or 119 questions pertaining to the handling of your claim. 120 You can reach the Helpline by phone at...(toll-free 121 phone number)..., or you can seek assistance online at 122 the Florida Department of Financial Services, Division 123 of Consumer Services’ website at...(website 124 address).... 125 126 YOU ARE ADVISED TO: 127 1. Contact your insurance company before entering 128 into any contract for repairs to confirm any managed 129 repair policy provisions or optional preferred 130 vendors. 131 2. Make and document emergency repairs that are 132 necessary to prevent further damage. Keep the damaged 133 property, if feasible, keep all receipts, and take 134 photographs of damage before and after any repairs. 135 3. Carefully read any contract that requires you 136 to pay out-of-pocket expenses or a fee that is based 137 on a percentage of the insurance proceeds that you 138 will receive for repairing or replacing your property. 139 4. Confirm that the contractor you choose is 140 licensed to do business in Florida. You can verify a 141 contractor’s license and check to see if there are any 142 complaints against him or her by calling the Florida 143 Department of Business and Professional Regulation. 144 You should also ask the contractor for references from 145 previous work. 146 5. Require all contractors to provide proof of 147 insurance before beginning repairs. 148 6. Take precautions if the damage requires you to 149 leave your home, including securing your property and 150 turning off your gas, water, and electricity, and 151 contacting your insurance company and provide a phone 152 number where you can be reached. 153 154 ================= T I T L E A M E N D M E N T ================ 155 And the title is amended as follows: 156 Delete line 84 157 and insert: 158 void; amending s. 627.70131, F.S.; revising timeframes 159 and other requirements for residential property 160 insurers in responding to certain communications 161 relating to claims; revising the timeframes in which 162 residential property insurers must pay or deny certain 163 claims; amending s. 627.7142, F.S.; revising the 164 timeframe in which certain information must be 165 provided by a personal lines residential property 166 insurer in response to certain communications relating 167 to a claim; revising the timeframes applicable to 168 certain rights specified in the Homeowner Claims Bill 169 of Rights; providing an effective date.