Florida Senate - 2016                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1248
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       Senator Simmons moved the following:
    1         Senate Amendment (with title amendment)
    3         Before line 30
    4  insert:
    5         Section 1. Section 501.172, Florida Statutes, is created to
    6  read:
    7         501.172 Agreements with service providers entered into
    8  under urgent or emergency circumstances; assignment of benefits
    9  relating to property insurance; limitations.
   10         (1) For purposes of this section, the term:
   11         (a) “Consumer” means a person who has an interest in or who
   12  has a right to manage real property, including improvements upon
   13  such real property, regardless of whether for personal or
   14  business purposes, including an owner, a tenant, a licensee, or
   15  a property manager.
   16         (b) “Service provider” means a person who enters into an
   17  agreement with a consumer for the stabilization, repair,
   18  improvement, or remediation of real property.
   19         (2)If a consumer, including a consumer who is a
   20  policyowner of a property insurance policy, acts under urgent or
   21  emergency circumstances to protect property from damage and
   22  enters into an agreement with a service provider to stabilize,
   23  protect, repair, or improve such property, the service provider
   24  may only contract for or receive from the consumer at such time
   25  the right to payment for the amount of work necessary to
   26  stabilize, protect, repair, and prevent additional damage from
   27  occurring to the property.
   28         (3)In all circumstances, including urgent or emergency
   29  circumstances, an agreement entered into by a consumer and a
   30  service provider after a loss or damage has occurred to the
   31  consumer’s property which contains a purported post-loss
   32  assignment of benefits to the service provider or some third
   33  person is not valid:
   34         (a) Unless the consumer or service provider provides a copy
   35  of the agreement to the consumer’s property insurer within 5
   36  business days after execution by both the service provider and
   37  consumer;
   38         (b) To the extent that the agreement prevents or inhibits
   39  an insurer from communicating with the consumer at any time; or
   40         (c) To the extent that the agreement purports to transfer
   41  or create any authority to adjust, negotiate, or settle any
   42  portion of a claim to a person or an entity who is not
   43  authorized to adjust, negotiate, or settle a claim on behalf of
   44  the insured or claimant under part VI of chapter 626.
   45         (4) This section does not apply to a power of attorney
   46  granted to a management company, family member, guardian, or
   47  similarly situated person which complies with chapter 709 and
   48  which may include, as part of the authority granted, the
   49  authority to act in place of a principal as it relates to a
   50  property insurance claim.
   51         (5)A policyholder who assigns the right to receive the
   52  benefit of payment under the policy is not liable to the
   53  assignee for services and materials for which the insurer is
   54  liable, and the assignee may not collect or attempt to collect
   55  money from, maintain any action at law against, or claim a lien
   56  on the real property of a policyholder or report a policyholder
   57  to a credit agency for payment for which the insurer is liable
   58  under the policy. However, to the extent such purported
   59  assignment is otherwise valid under applicable law, this
   60  subsection does not prohibit the assignee from collecting or
   61  attempting to collect money from, maintaining an action at law
   62  against, or claiming a lien on the real property of a
   63  policyholder or reporting a policyholder to a credit agency for
   64  payment of the amount of the insurance deductible or any amount
   65  attributable to services and materials ordered by the
   66  policyholder which are not covered under the insurance policy.
   68  ================= T I T L E  A M E N D M E N T ================
   69  And the title is amended as follows:
   70         Delete line 2
   71  and insert:
   72         An act relating to insurance practices; creating s.
   73         501.172, F.S.; defining terms; specifying limitations
   74         to the assignment of specified rights by a consumer to
   75         a service provider for certain services provided under
   76         urgent or emergency circumstances to stabilize,
   77         protect, repair, or improve real property; providing
   78         that a specified agreement assigning certain rights is
   79         not valid unless specified conditions are met;
   80         providing applicability; providing that a policyholder
   81         who assigns a certain right is not liable to the
   82         assignee for specified services and materials;
   83         prohibiting an assignee from taking certain actions
   84         for payments for which the insurer is liable;
   85         providing applicability;