Florida Senate - 2015 CS for SB 202
By the Committee on Banking and Insurance; and Senator Bradley
597-01468-15 2015202c1
1 A bill to be entitled
2 An act relating to insurer notifications; amending s.
3 627.421, F.S.; authorizing a policyholder of personal
4 lines insurance to elect delivery of policy documents
5 by electronic means; amending s. 627.43141, F.S.;
6 defining the term “optional coverage”; revising the
7 requirements applicable to insurers when providing a
8 notice of change in policy terms for a renewal policy
9 to include the requirement that the notice be an
10 advance notice and to allow such notice to be sent
11 separately from the notice of renewal premium within a
12 specified timeframe; requiring the insurer to provide
13 a sample copy of the notice of change in policy terms
14 to the insurance agent at a specified time;
15 prohibiting the use of such notice to add optional
16 coverage that increases the policy’s premium unless
17 the policyholder approves the optional coverage;
18 reenacting ss. 624.488(4) and 628.6016(4), F.S., to
19 incorporate the amendments made to s. 627.421, F.S.,
20 in references thereto; reenacting s. 627.4102(3),
21 F.S., to incorporate the amendments made to s.
22 627.43141, F.S., in a reference thereto; providing an
23 effective date.
24
25 Be It Enacted by the Legislature of the State of Florida:
26
27 Section 1. Subsection (1) of section 627.421, Florida
28 Statutes, is amended to read:
29 627.421 Delivery of policy.—
30 (1) Subject to the insurer’s requirement as to payment of
31 premium, every policy shall be mailed, delivered, or
32 electronically transmitted to the insured or to the person
33 entitled thereto within not later than 60 days after the
34 effectuation of coverage. Notwithstanding any other provision of
35 law, an insurer may allow a policyholder of personal lines
36 insurance to affirmatively elect delivery of the policy
37 documents, including, but not limited to, policies,
38 endorsements, notices, or documents, by electronic means in lieu
39 of delivery by mail. Electronic transmission of a policy for
40 commercial risks, including, but not limited to, workers’
41 compensation and employers’ liability, commercial automobile
42 liability, commercial automobile physical damage, commercial
43 lines residential property, commercial nonresidential property,
44 farmowners insurance, and the types of commercial lines risks
45 specified set forth in s. 627.062(3)(d), constitutes shall
46 constitute delivery to the insured or to the person entitled to
47 delivery, unless the insured or the person entitled to delivery
48 communicates to the insurer in writing or electronically that he
49 or she does not agree to delivery by electronic means.
50 Electronic transmission must shall include a notice to the
51 insured or to the person entitled to delivery of a policy of his
52 or her right to receive the policy via United States mail rather
53 than via electronic transmission. A paper copy of the policy
54 shall be provided to the insured or to the person entitled to
55 delivery at his or her request.
56 Section 2. Present paragraphs (b) and (c) of subsection (1)
57 of section 627.43141, Florida Statutes, are redesignated as
58 paragraphs (c) and (d), respectively, a new paragraph (b) is
59 added to that subsection, subsection (2) of that section is
60 amended, present subsections (3) through (6) of that section are
61 redesignated as subsections (4) through (7), respectively, and a
62 new subsection (3) is added to that section, to read:
63 627.43141 Notice of change in policy terms.—
64 (1) As used in this section, the term:
65 (b) “Optional coverage” means the addition of new insurance
66 coverage that has not previously been requested or approved by
67 the policyholder but that does not include any change to the
68 base policy or a deductible or an insurance limit.
69 (2) A renewal policy may contain a change in policy terms.
70 If a renewal policy does contain such change occurs, the insurer
71 shall must give the named insured advance written notice of the
72 change, which may must be enclosed along with the written notice
73 of renewal premium required under by ss. 627.4133 and 627.728 or
74 sent separately within the timeframe required under the Florida
75 Insurance Code for the provision of a notice of nonrenewal to
76 the named insured for that line of insurance. The insurer must
77 also provide a sample copy of the notice to the named insured’s
78 insurance agent before or at the same time that notice is
79 provided to the named insured. Such notice shall be entitled
80 “Notice of Change in Policy Terms.”
81 (3) A renewal policy that includes the addition of optional
82 coverage that increases the premium to a policyholder may not
83 use the “Notice of Change in Policy Terms” under this section to
84 add the optional coverage to the policy unless the policyholder
85 affirmatively indicates to the insurer or agent that the
86 policyholder approves the addition of the optional coverage.
87 Section 3. Subsection (4) of s. 624.488 and subsection (4)
88 of s. 628.6016, Florida Statutes, are reenacted for the purpose
89 of incorporating the amendments made by this act to s. 627.421,
90 Florida Statutes, in references thereto.
91 Section 4. Subsection (3) of s. 627.4102, Florida Statutes,
92 is reenacted for the purpose of incorporating the amendments
93 made by this act to s. 627.43141, Florida Statutes, in a
94 reference thereto.
95 Section 5. This act shall take effect July 1, 2015.