Florida Senate - 2016 COMMITTEE AMENDMENT Bill No. SB 1248 Ì311958JÎ311958 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/16/2016 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Margolis) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 25 - 70 4 and insert: 5 services for an insured under an insurance policy in this state 6 may not adjust a claim on behalf of an insured unless licensed 7 and compliant as a public adjuster under this chapter. However, 8 the contractor or subcontractor may discuss or explain a bid for 9 construction or repair of covered property with the residential 10 property owner who has suffered loss or damage covered by a 11 property insurance policy, or the insurer of such property, if 12 the contractor or subcontractor is doing so for the usual and 13 customary fees applicable to the work to be performed as stated 14 in the contract between the contractor or subcontractor and the 15 insured. 16 Section 2. Section 627.716, Florida Statutes, is created to 17 read: 18 627.716 Prohibited practices related to repair, mitigation, 19 and restoration services; penalties.— 20 (1) A person or entity may not directly or indirectly 21 offer, deliver, receive, or accept any compensation, inducement, 22 or reward greater than $25 for the referral of any business for 23 the repair, mitigation, or restoration of property for which 24 property insurance proceeds are payable. 25 (2) An entity or person, including a contractor licensed 26 under part I of chapter 489 or a subcontractor to the 27 contractor, that provides emergency remediation or restoration 28 services for an insured under a property insurance policy in 29 this state must: 30 (a) Provide an insured with a scope of services and 31 materials to be provided for repairs undertaken pursuant to a 32 property insurance claim before the agreement authorizing such 33 repairs is executed. 34 (b) Notify the insured in writing that any assignment 35 accepted by the person or entity is limited to the scope of the 36 work indicated therein; that the insured may have other claims 37 under their homeowner’s insurance policy that are not covered by 38 this assignment; and that the insured may wish to contact a 39 public adjuster or attorney to evaluate other claims and 40 coverages. Nothing in this section prohibits the use of post 41 loss, partial assignments in homeowner’s insurance claims. 42 (3) The department may, in a proceeding initiated pursuant 43 to chapter 120, seek a cease and desist order, and if a cease 44 and desist order is violated, impose an administrative fine of 45 not more than $10,000 per violation against any person found in 46 the proceeding to have violated this section. Any cease and 47 desist order or administrative fine levied by the department 48 under this subsection may be enforced by the department by 49 appropriate proceedings in the circuit court of the county in 50 which the person resides. The department may recommend to the 51 appropriate licensing agency or board that disciplinary action 52 be taken against persons licensed by other agencies or boards. 53 54 ================= T I T L E A M E N D M E N T ================ 55 And the title is amended as follows: 56 Delete lines 3 - 12 57 and insert: 58 amending s. 626.854, F.S.; adding entities and persons 59 that may not adjust a claim on behalf of an insured 60 unless licensed and compliant as a public adjuster; 61 revising an exception to include a subcontractor; 62 creating s. 627.716, F.S.; prohibiting a person or 63 entity from certain actions relating to the referral 64 of certain business related to certain repair, 65 mitigation, and restoration services; specifying 66 requirements for an entity or person that provides 67 certain emergency remediation or restoration services; 68 authorizing the Department of Financial Services to 69 seek a cease and desist order and administrative fines 70 for certain violations; authorizing the department to 71 enforce such penalties in a specified circuit court; 72 authorizing the department to recommend disciplinary 73 action to other licensing agencies or boards; 74 providing an effective date.