Florida Senate - 2015                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1064
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
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       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 7 14 calendar
   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 45 90 days 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 45 90 days
   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 7 14 days 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 7 14 days
   96         after the time you communicated the claim.
   97         2. Upon written request, receive from your
   98         insurance company within 15 30 days 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 45 90 days, 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.