Florida Senate - 2015 CS for SB 1064 By the Committee on Banking and Insurance; and Senator Hukill 597-02742-15 20151064c1 1 A bill to be entitled 2 An act relating to insurance claims; amending s. 3 626.854, F.S.; providing that an assignment or 4 agreement that transfers authority to adjust, 5 negotiate, or settle a claim or that violates other 6 specified provisions is void; amending s. 626.8651, 7 F.S.; revising the authority of public adjuster 8 apprentices; amending s. 627.405, F.S.; prohibiting 9 assignment of an insurable interest except to 10 subsequent purchasers after a loss; amending s. 11 627.422, F.S.; authorizing a property insurance policy 12 to prohibit the post-loss assignment of certain 13 benefits or rights that apply to specified losses; 14 providing exceptions; providing that a post-loss 15 assignment in violation of the act is void; providing 16 an effective date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Subsection (16) of section 626.854, Florida 21 Statutes, is amended to read: 22 626.854 “Public adjuster” defined; prohibitions.—The 23 Legislature finds that it is necessary for the protection of the 24 public to regulate public insurance adjusters and to prevent the 25 unauthorized practice of law. 26 (16)(a) A licensed contractor under part I of chapter 489, 27 or a subcontractor, may not adjust a claim on behalf of an 28 insured unless licensed and compliant as a public adjuster under 29 this chapter. However, the contractor may discuss or explain a 30 bid for construction or repair of covered property with the 31 residential property owner who has suffered loss or damage 32 covered by a property insurance policy, or the insurer of such 33 property, if the contractor is doing so for the usual and 34 customary fees applicable to the work to be performed as stated 35 in the contract between the contractor and the insured. 36 (b) An assignment or agreement that transfers the authority 37 to adjust, negotiate, or settle any portion of a claim to such 38 contractor or subcontractor or that is otherwise in violation of 39 this section is void. 40 Section 2. Subsection (11) of section 626.8651, Florida 41 Statutes, is amended to read: 42 626.8651 Public adjuster apprentice license; 43 qualifications.— 44 (11) A public adjuster apprentice has the same authority as 45 the licensed public adjuster or public adjusting firm that 46 employs the apprentice except that an apprentice may not execute 47 contracts for the services of a public adjuster or public 48 adjusting firm and is limited in his or her ability tomay not49 solicit contracts for the servicesexcept under the direct50supervision and guidanceof the supervisory public adjuster. A 51 public adjuster apprentice may only solicit contracts for the 52 supervisory public adjuster under the general supervision of the 53 supervisory public adjuster; provided, however, that the public 54 adjuster apprentice may only solicit contracts if the public 55 adjuster apprentice has appeared at a residence without a prior 56 appointment if the apprentice is under the direct supervision of 57 the supervisory public adjuster. A public adjuster apprentice 58 may not solicit contracts for natural disaster claims within 30 59 days after the declaration of the natural disaster except under 60 the direct supervision of a supervisory public adjuster. An 61 individual may not be, act as, or hold himself or herself out to 62 be a public adjuster apprentice unless the individual is 63 licensed and holds a current appointment by a licensed public 64 all-lines adjuster or a public adjusting firm that employs a 65 licensed all-lines public adjuster. 66 Section 3. Subsection (4) is added to section 627.405, 67 Florida Statutes, to read: 68 627.405 Insurable interest; property.— 69 (4) An insurable interest does not survive an assignment, 70 except to a subsequent purchaser of the property who acquires 71 insurable interest following a loss. 72 Section 4. Section 627.422, Florida Statutes, is amended to 73 read: 74 627.422 Assignment of policies; limitations on post-loss 75 assignment of benefits.— 76 (1) A policy may be assignable, or not assignable, as 77 provided by its terms. Subject to its terms relating to 78 assignability, any life or health insurance policy under the 79 terms of which the beneficiary may be changed upon the sole 80 request of the policyowner may be assigned either by pledge or 81 transfer of title, by an assignment executed by the policyowner 82 alone and delivered to the insurer, regardless of whetheror not83 the pledgee or assignee is the insurer. Any such assignment 84 entitlesshall entitlethe insurer to deal with the assignee as 85 the owner or pledgee of the policy in accordance with the terms 86 of the assignment, until the insurer has received at its home 87 office written notice of termination of the assignment or pledge 88 or written notice by or on behalf of some other person claiming 89 some interest in the policy in conflict with the assignment. 90 (2) A property insurance policy may prohibit the post-loss 91 assignment of benefits, rights, causes of action, or other 92 contractual rights under the policy, except that a policyholder 93 may assign the benefit of payment: 94 (a) Up to $3,000, to a person or entity that provides 95 services or materials to mitigate or repair damage that directly 96 arises from a covered loss. Such assignment is limited solely to 97 designating the person or entity as a copayee for the benefit of 98 payment for the reasonable value of services or materials 99 provided. The policyholder has the exclusive right to enforce 100 payment of the post-loss benefits under the policy and may not 101 assign that right to another person or entity. 102 (b) To compensate a public adjuster for services authorized 103 by s. 626.854(11). The assignment may only be for compensation 104 due to the public adjuster by the policyholder and may not 105 include any assignment of other benefits under the policy. This 106 paragraph does not change the obligations, if any, of the 107 insurer to issue to the policyholder a check for payment in the 108 name of the policyholder or mortgageholder. 109 (c) To an attorney who represents the policyholder only if 110 the assignment provides that the benefits are to be paid to the 111 attorney for disbursement of the funds by the attorney to repair 112 the property at the direction of the policyholder. 113 (3) A post-loss assignment in violation of subsection (2) 114 is void. 115 Section 5. This act shall take effect July 1, 2015. 116