Florida Senate - 2016 CS for CS for SB 1248 By the Committees on Appropriations; and Banking and Insurance; and Senator Diaz de la Portilla 576-04478-16 20161248c2 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 providing applicability; authorizing the Department of 14 Financial Services to seek a cease and desist order 15 and administrative fines for certain violations; 16 authorizing the department to enforce such penalties 17 in a specified circuit court; authorizing the 18 department to recommend disciplinary action to other 19 licensing agencies or boards; providing applicability; 20 creating s. 627.717, F.S.; providing that a 21 policyholder that assigns the right to receive benefit 22 of payment under a property insurance policy is not 23 liable to the assignee for certain services or 24 materials; prohibiting certain actions by an assignee 25 against a policyholder under specified circumstances; 26 providing an effective date. 27 28 Be It Enacted by the Legislature of the State of Florida: 29 30 Section 1. Subsection (16) of section 626.854, Florida 31 Statutes, is amended to read: 32 626.854 “Public adjuster” defined; prohibitions.—The 33 Legislature finds that it is necessary for the protection of the 34 public to regulate public insurance adjusters and to prevent the 35 unauthorized practice of law. 36 (16) Any
A licensedcontractor licensed under part I of 37 chapter 489, or asubcontractor to the contractor, or entity or 38 person that performs emergency remediation or restoration 39 services for an insured under an insurance policy in this state 40 may not adjust a claim on behalf of an insured unless licensed 41 and compliant as a public adjuster under this chapter. However, 42 the contractor or subcontractor may discuss or explain a bid for 43 construction or repair of covered property with the residential 44 property owner who has suffered loss or damage covered by a 45 property insurance policy, or the insurer of such property, if 46 the contractor or subcontractor is doing so for the usual and 47 customary fees applicable to the work to be performed as stated 48 in the contract between the contractor or subcontractor and the 49 insured. 50 Section 2. Section 627.716, Florida Statutes, is created to 51 read: 52 627.716 Prohibited practices related to repair, mitigation, 53 and restoration services; penalties.— 54 (1) A person or entity may not directly or indirectly 55 offer, deliver, receive, or accept any compensation, inducement, 56 or reward greater than $25 for the referral of any business for 57 the repair, mitigation, or restoration of property for which 58 property insurance proceeds are payable. 59 (2) An entity or person, including a contractor licensed 60 under part I of chapter 489 or a subcontractor to the 61 contractor, that provides emergency remediation or restoration 62 services for an insured under a property insurance policy in 63 this state must: 64 (a) Provide an insured with a scope of services and 65 materials to be provided for repairs undertaken pursuant to a 66 property insurance claim before the agreement authorizing such 67 repairs is executed. A supplement to the original scope of work 68 does not violate this section. 69 (b) Notify the insured in writing that any assignment 70 accepted by the person or entity is limited to the scope of the 71 work indicated therein and that the insured may have other 72 claims under his or her homeowner’s insurance policy which are 73 not covered by this assignment. Nothing in this section 74 prohibits the use of post-loss, partial assignments in 75 homeowner’s insurance claims. 76 (3) The department may, in a proceeding initiated pursuant 77 to chapter 120, seek a cease and desist order, and if a cease 78 and desist order is violated, impose an administrative fine of 79 not more than $10,000 per violation against any person found in 80 the proceeding to have violated this section. Any cease and 81 desist order or administrative fine levied by the department 82 under this subsection may be enforced by the department by 83 appropriate proceedings in the circuit court of the county in 84 which the person resides. The department may recommend to the 85 appropriate licensing agency or board that disciplinary action 86 be taken against persons licensed by other agencies or boards. 87 (4) This section applies to residential coverage as 88 described in s. 627.4025(1). 89 Section 3. Section 627.717, Florida Statutes, is created to 90 read: 91 627.717 Assignment of the right to receive benefit of 92 payment; construction.—A policyholder who assigns the right to 93 receive the benefit of payment under a property insurance policy 94 in this state is not liable to the assignee for services and 95 materials for which the insurer is liable, and the assignee may 96 not collect or attempt to collect money from, maintain an action 97 at law against, or report a policyholder to a credit agency for 98 payment for which the insurer is liable. However, this section 99 does not prohibit the assignee from taking such actions against 100 a policyholder for payment of the amount of the insurance 101 deductible or any amount attributable to upgrades ordered by the 102 policyholder which are not covered under the insurance policy. 103 Section 4. This act shall take effect July 1, 2016.