Florida Senate - 2016 CS for SB 1248 By the Committee on Banking and Insurance; and Senator Diaz de la Portilla 597-03682-16 20161248c1 1 A bill to be entitled 2 An act relating to prohibited insurance practices; 3 amending s. 626.854, F.S.; adding entities and persons 4 that may not adjust a claim on behalf of an insured 5 unless licensed and compliant as a public adjuster; 6 revising an exception to include a subcontractor; 7 creating s. 627.716, F.S.; prohibiting a person or 8 entity from certain actions relating to the referral 9 of certain business related to certain repair, 10 mitigation, and restoration services; specifying 11 requirements for an entity or person that provides 12 certain emergency remediation or restoration services; 13 authorizing the Department of Financial Services to 14 seek a cease and desist order and administrative fines 15 for certain violations; authorizing the department to 16 enforce such penalties in a specified circuit court; 17 authorizing the department to recommend disciplinary 18 action to other licensing agencies or boards; 19 providing an effective date. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 23 Section 1. Subsection (16) of section 626.854, Florida 24 Statutes, is amended to read: 25 626.854 “Public adjuster” defined; prohibitions.—The 26 Legislature finds that it is necessary for the protection of the 27 public to regulate public insurance adjusters and to prevent the 28 unauthorized practice of law. 29 (16) Any
A licensedcontractor licensed under part I of 30 chapter 489, or asubcontractor to the contractor, or entity or 31 person that performs emergency remediation or restoration 32 services for an insured under an insurance policy in this state 33 may not adjust a claim on behalf of an insured unless licensed 34 and compliant as a public adjuster under this chapter. However, 35 the contractor or subcontractor may discuss or explain a bid for 36 construction or repair of covered property with the residential 37 property owner who has suffered loss or damage covered by a 38 property insurance policy, or the insurer of such property, if 39 the contractor or subcontractor is doing so for the usual and 40 customary fees applicable to the work to be performed as stated 41 in the contract between the contractor or subcontractor and the 42 insured. 43 Section 2. Section 627.716, Florida Statutes, is created to 44 read: 45 627.716 Prohibited practices related to repair, mitigation, 46 and restoration services; penalties.— 47 (1) A person or entity may not directly or indirectly 48 offer, deliver, receive, or accept any compensation, inducement, 49 or reward greater than $25 for the referral of any business for 50 the repair, mitigation, or restoration of property for which 51 property insurance proceeds are payable. 52 (2) An entity or person, including a contractor licensed 53 under part I of chapter 489 or a subcontractor to the 54 contractor, that provides emergency remediation or restoration 55 services for an insured under a property insurance policy in 56 this state must: 57 (a) Provide an insured with a scope of services and 58 materials to be provided for repairs undertaken pursuant to a 59 property insurance claim before the agreement authorizing such 60 repairs is executed. 61 (b) Notify the insured in writing that any assignment 62 accepted by the person or entity is limited to the scope of the 63 work indicated therein; that the insured may have other claims 64 under their homeowner’s insurance policy that are not covered by 65 this assignment; and that the insured may wish to contact a 66 public adjuster or attorney to evaluate other claims and 67 coverages. Nothing in this section prohibits the use of post 68 loss, partial assignments in homeowner’s insurance claims. 69 (3) The department may, in a proceeding initiated pursuant 70 to chapter 120, seek a cease and desist order, and if a cease 71 and desist order is violated, impose an administrative fine of 72 not more than $10,000 per violation against any person found in 73 the proceeding to have violated this section. Any cease and 74 desist order or administrative fine levied by the department 75 under this subsection may be enforced by the department by 76 appropriate proceedings in the circuit court of the county in 77 which the person resides. The department may recommend to the 78 appropriate licensing agency or board that disciplinary action 79 be taken against persons licensed by other agencies or boards. 80 Section 3. This act shall take effect July 1, 2016.