Florida Senate - 2017 SENATOR AMENDMENT
Bill No. CS/HB 359, 1st Eng.
Ì229518?Î229518
LEGISLATIVE ACTION
Senate . House
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Floor: WD/3R .
05/05/2017 01:18 PM .
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Senator Farmer moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Subsection (2) of section 177.041, Florida
6 Statutes, is amended to read:
7 177.041 Boundary survey and title certification required.
8 Every plat or replat of a subdivision submitted to the approving
9 agency of the local governing body must be accompanied by:
10 (2) A title opinion of an attorney at law licensed in
11 Florida or a property information report certification by an
12 abstractor or a title company showing that record title to the
13 land as described and shown on the plat is in the name of the
14 person, persons, corporation, or entity executing the
15 dedication. The title opinion or property information report
16 must certification shall also show all mortgages not satisfied
17 or released of record nor otherwise terminated by law.
18 Section 2. Subsection (16) of section 177.091, Florida
19 Statutes, is amended to read:
20 177.091 Plats made for recording.—Every plat of a
21 subdivision offered for recording shall conform to the
22 following:
23 (16) Location and width of proposed easements and existing
24 easements identified in the title opinion or property
25 information report certification required by s. 177.041(2) must
26 shall be shown on the plat or in the notes or legend, and their
27 intended use shall be clearly stated. Where easements are not
28 coincident with property lines, they must be labeled with
29 bearings and distances and tied to the principal lot, tract, or
30 right-of-way.
31 Section 3. Paragraph (a) of subsection (5) of section
32 197.502, Florida Statutes, is amended to read:
33 197.502 Application for obtaining tax deed by holder of tax
34 sale certificate; fees.—
35 (5)(a) The tax collector may contract with a title company
36 or an abstract company to provide the minimum information
37 required in subsection (4), consistent with rules adopted by the
38 department. If additional information is required, the tax
39 collector must make a written request to the title or abstract
40 company stating the additional requirements. The tax collector
41 may select any title or abstract company, regardless of its
42 location, as long as the fee is reasonable, the minimum
43 information is submitted, and the title or abstract company is
44 authorized to do business in this state. The tax collector may
45 advertise and accept bids for the title or abstract company if
46 he or she considers it appropriate to do so.
47 1. The property information ownership and encumbrance
48 report must include the letterhead of the person, firm, or
49 company that makes the search, and the signature of the
50 individual who makes the search or of an officer of the firm.
51 The tax collector is not liable for payment to the firm unless
52 these requirements are met. The report may be submitted to the
53 tax collector in an electronic format.
54 2. The tax collector may not accept or pay for any title
55 search or abstract if financial responsibility is not assumed
56 for the search. However, reasonable restrictions as to the
57 liability or responsibility of the title or abstract company are
58 acceptable. Notwithstanding s. 627.7843(3), the tax collector
59 may contract for higher maximum liability limits.
60 3. In order to establish uniform prices for property
61 information ownership and encumbrance reports within the county,
62 the tax collector must ensure that the contract for property
63 information ownership and encumbrance reports include all
64 requests for title searches or abstracts for a given period of
65 time.
66 Section 4. Paragraph (b) of subsection (6) of section
67 215.555, Florida Statutes, is amended to read:
68 215.555 Florida Hurricane Catastrophe Fund.—
69 (6) REVENUE BONDS.—
70 (b) Emergency assessments.—
71 1. If the board determines that the amount of revenue
72 produced under subsection (5) is insufficient to fund the
73 obligations, costs, and expenses of the fund and the
74 corporation, including repayment of revenue bonds and that
75 portion of the debt service coverage not met by reimbursement
76 premiums, the board shall direct the Office of Insurance
77 Regulation to levy, by order, an emergency assessment on direct
78 premiums for all property and casualty lines of business in this
79 state, including property and casualty business of surplus lines
80 insurers regulated under part VIII of chapter 626, but not
81 including any workers’ compensation premiums or medical
82 malpractice premiums. As used in this subsection, the term
83 “property and casualty business” includes all lines of business
84 identified on Form 2, Exhibit of Premiums and Losses, in the
85 annual statement required of authorized insurers by s. 624.424
86 and any rule adopted under this section, except for those lines
87 identified as accident and health insurance and except for
88 policies written under the National Flood Insurance Program. The
89 assessment shall be specified as a percentage of direct written
90 premium and is subject to annual adjustments by the board in
91 order to meet debt obligations. The same percentage applies to
92 all policies in lines of business subject to the assessment
93 issued or renewed during the 12-month period beginning on the
94 effective date of the assessment.
95 2. A premium is not subject to an annual assessment under
96 this paragraph in excess of 6 percent of premium with respect to
97 obligations arising out of losses attributable to any one
98 contract year, and a premium is not subject to an aggregate
99 annual assessment under this paragraph in excess of 10 percent
100 of premium. An annual assessment under this paragraph continues
101 as long as the revenue bonds issued with respect to which the
102 assessment was imposed are outstanding, including any bonds the
103 proceeds of which were used to refund the revenue bonds, unless
104 adequate provision has been made for the payment of the bonds
105 under the documents authorizing issuance of the bonds.
106 3. Emergency assessments shall be collected from
107 policyholders. Emergency assessments shall be remitted by
108 insurers as a percentage of direct written premium for the
109 preceding calendar quarter as specified in the order from the
110 Office of Insurance Regulation. The office shall verify the
111 accurate and timely collection and remittance of emergency
112 assessments and shall report the information to the board in a
113 form and at a time specified by the board. Each insurer
114 collecting assessments shall provide the information with
115 respect to premiums and collections as may be required by the
116 office to enable the office to monitor and verify compliance
117 with this paragraph.
118 4. With respect to assessments of surplus lines premiums,
119 each surplus lines agent shall collect the assessment at the
120 same time as the agent collects the surplus lines tax required
121 by s. 626.932, and the surplus lines agent shall remit the
122 assessment to the Florida Surplus Lines Service Office created
123 by s. 626.921 at the same time as the agent remits the surplus
124 lines tax to the Florida Surplus Lines Service Office. The
125 emergency assessment on each insured procuring coverage and
126 filing under s. 626.938 shall be remitted by the insured to the
127 Florida Surplus Lines Service Office at the time the insured
128 pays the surplus lines tax to the Florida Surplus Lines Service
129 Office. The Florida Surplus Lines Service Office shall remit the
130 collected assessments to the fund or corporation as provided in
131 the order levied by the Office of Insurance Regulation. The
132 Florida Surplus Lines Service Office shall verify the proper
133 application of such emergency assessments and shall assist the
134 board in ensuring the accurate and timely collection and
135 remittance of assessments as required by the board. The Florida
136 Surplus Lines Service Office shall annually calculate the
137 aggregate written premium on property and casualty business,
138 other than workers’ compensation and medical malpractice,
139 procured through surplus lines agents and insureds procuring
140 coverage and filing under s. 626.938 and shall report the
141 information to the board in a form and at a time specified by
142 the board.
143 5. Any assessment authority not used for a particular
144 contract year may be used for a subsequent contract year. If,
145 for a subsequent contract year, the board determines that the
146 amount of revenue produced under subsection (5) is insufficient
147 to fund the obligations, costs, and expenses of the fund and the
148 corporation, including repayment of revenue bonds and that
149 portion of the debt service coverage not met by reimbursement
150 premiums, the board shall direct the Office of Insurance
151 Regulation to levy an emergency assessment up to an amount not
152 exceeding the amount of unused assessment authority from a
153 previous contract year or years, plus an additional 4 percent
154 provided that the assessments in the aggregate do not exceed the
155 limits specified in subparagraph 2.
156 6. The assessments otherwise payable to the corporation
157 under this paragraph shall be paid to the fund unless the Office
158 of Insurance Regulation and the Florida Surplus Lines Service
159 Office received a notice from the corporation and the fund,
160 which shall be conclusive and upon which they may rely without
161 further inquiry, that the corporation has issued bonds and the
162 fund has no agreements in effect with local governments under
163 paragraph (c). On or after the date of the notice and until the
164 date the corporation has no bonds outstanding, the fund shall
165 have no right, title, or interest in or to the assessments,
166 except as provided in the fund’s agreement with the corporation.
167 7. Emergency assessments are not premium and are not
168 subject to the premium tax, to the surplus lines tax, to any
169 fees, or to any commissions. An insurer is liable for all
170 assessments that it collects and must treat the failure of an
171 insured to pay an assessment as a failure to pay the premium. An
172 insurer is not liable for uncollectible assessments.
173 8. If an insurer is required to return an unearned premium,
174 it shall also return any collected assessment attributable to
175 the unearned premium. A credit adjustment to the collected
176 assessment may be made by the insurer with regard to future
177 remittances that are payable to the fund or corporation, but the
178 insurer is not entitled to a refund.
179 9. If a surplus lines insured or an insured who has
180 procured coverage and filed under s. 626.938 is entitled to the
181 return of an unearned premium, the Florida Surplus Lines Service
182 Office shall provide a credit or refund to the agent or such
183 insured for the collected assessment attributable to the
184 unearned premium before remitting the emergency assessment
185 collected to the fund or corporation.
186 10. The exemption of medical malpractice insurance premiums
187 from emergency assessments under this paragraph is repealed May
188 31, 2019, and medical malpractice insurance premiums shall be
189 subject to emergency assessments attributable to loss events
190 occurring in the contract years commencing on June 1, 2019.
191 Section 5. Subsection (1) of section 624.407, Florida
192 Statutes, is amended to read:
193 624.407 Surplus required; new insurers.—
194 (1) To receive authority to transact any one kind or
195 combinations of kinds of insurance, as defined in part V of this
196 chapter, an insurer applying for its original certificate of
197 authority in this state shall possess surplus as to
198 policyholders at least the greater of:
199 (a) For a property and casualty insurer, $5 million, or
200 $2.5 million for any other insurer;
201 (b) For life insurers, 4 percent of the insurer’s total
202 liabilities;
203 (c) For life and health insurers, 4 percent of the
204 insurer’s total liabilities, plus 6 percent of the insurer’s
205 liabilities relative to health insurance;
206 (d) For all insurers other than life insurers and life and
207 health insurers, 10 percent of the insurer’s total liabilities;
208 (e) Notwithstanding paragraph (a) or paragraph (d), for a
209 domestic insurer that transacts residential property insurance
210 and is:
211 1. Not a wholly owned subsidiary of an insurer domiciled in
212 any other state, $15 million.
213 2. A wholly owned subsidiary of an insurer domiciled in any
214 other state, $50 million; or
215 (f) Notwithstanding paragraphs (a), (d), and (e), for a
216 domestic insurer that only transacts limited sinkhole coverage
217 insurance for personal lines residential property pursuant to s.
218 627.7151, $7.5 million; or
219 (g) Notwithstanding paragraphs (a), (b), and (e), for an
220 insurer that only transacts residential property insurance in
221 the form of renter’s insurance, tenant’s coverage, cooperative
222 unit owner insurance, or any combination thereof, $10 million.
223 Section 6. Paragraph (c) of subsection (8) of section
224 624.424, Florida Statutes, is amended to read:
225 624.424 Annual statement and other information.—
226 (8)
227 (c) The board of directors of an insurer shall hire the
228 certified public accountant that prepares the audit required by
229 this subsection and the board shall establish an audit committee
230 of three or more directors of the insurer or an affiliated
231 company. The audit committee shall be responsible for discussing
232 audit findings and interacting with the certified public
233 accountant with regard to her or his findings. The audit
234 committee shall be comprised solely of members who are free from
235 any relationship that, in the opinion of its board of directors,
236 would interfere with the exercise of independent judgment as a
237 committee member. The audit committee shall report to the board
238 any findings of adverse financial conditions or significant
239 deficiencies in internal controls that have been noted by the
240 accountant. The insurer may request the office to waive this
241 requirement of the audit committee membership based upon unusual
242 hardship to the insurer.
243 Section 7. Subsection (15) of section 625.012, Florida
244 Statutes, is amended to read:
245 625.012 “Assets” defined.—In any determination of the
246 financial condition of an insurer, there shall be allowed as
247 “assets” only such assets as are owned by the insurer and which
248 consist of:
249 (15)(a) Assessments levied pursuant to s. 631.57(3)(a) and
250 (e) or s. 631.914 which that are paid before policy surcharges
251 are collected and result in a receivable for policy surcharges
252 to be collected in the future. This amount, to the extent it is
253 likely that it will be realized, meets the definition of an
254 admissible asset as specified in the National Association of
255 Insurance Commissioners’ Statement of Statutory Accounting
256 Principles No. 4. The asset shall be established and recorded
257 separately from the liability regardless of whether it is based
258 on a retrospective or prospective premium-based assessment. If
259 an insurer is unable to fully recoup the amount of the
260 assessment because of a reduction in writings or withdrawal from
261 the market, the amount recorded as an asset shall be reduced to
262 the amount reasonably expected to be recouped.
263 (b) Assessments levied as monthly installments pursuant to
264 s. 631.57(3)(e)3. or s. 631.914 which that are paid after policy
265 surcharges are collected so that the recognition of assets is
266 based on actual premium written offset by the obligation to the
267 Florida Insurance Guaranty Association or the Florida Workers’
268 Compensation Insurance Guaranty Association, Incorporated.
269 Section 8. Paragraph (e) of subsection (7) of section
270 627.062, Florida Statutes, is amended, and subsection (11) is
271 added to that section, to read:
272 627.062 Rate standards.—
273 (7) The provisions of this subsection apply only to rates
274 for medical malpractice insurance and control to the extent of
275 any conflict with other provisions of this section.
276 (e) For medical malpractice rates subject to paragraph
277 (2)(a), the medical malpractice insurer shall make an annual
278 base a rate filing in accordance with s. 627.0645 under this
279 section, sworn to by at least two executive officers of the
280 insurer, at least once each calendar year.
281 (11) Attorney fees and costs paid by a property insurer
282 pursuant to s. 627.428 may not be included in the property
283 insurer’s rate base and may not be used to justify a rate
284 increase or rate change.
285 Section 9. Subsection (1) of section 627.0645, Florida
286 Statutes, is amended to read:
287 627.0645 Annual filings.—
288 (1) Each rating organization filing rates for, and each
289 insurer writing, any line of property or casualty insurance to
290 which this part applies, except:
291 (a) Workers’ compensation and employer’s liability
292 insurance;
293 (b) Insurance as defined in ss. 624.604 and 624.605,
294 limited to coverage of commercial risks other than commercial
295 residential multiperil and medical malpractice insurance that is
296 subject to s. 627.062(2)(a) and (f); or
297 (c) Travel insurance, if issued as a master group policy
298 with a situs in another state where each certificateholder pays
299 less than $30 in premium for each covered trip and where the
300 insurer has written less than $1 million in annual written
301 premiums in the travel insurance product in this state during
302 the most recent calendar year,
303
304 shall make an annual base rate filing for each such line with
305 the office no later than 12 months after its previous base rate
306 filing, demonstrating that its rates are not inadequate.
307 Section 10. Section 627.4035, Florida Statutes, is amended
308 to read:
309 627.4035 Cash Payment of premiums; claims.—
310 (1)(a) The premiums for insurance contracts issued in this
311 state or covering risk located in this state must shall be paid
312 in cash consisting of coins, currency, checks, electronic
313 checks, drafts, or money orders or by using a debit card, credit
314 card, automatic electronic funds transfer, or payroll deduction
315 plan. By July 1, 2007, Insurers issuing personal lines
316 residential and commercial property policies shall provide a
317 premium payment plan option to their policyholders which allows
318 for a minimum of quarterly and semiannual payment of premiums.
319 Insurers may, but are not required to, offer monthly payment
320 plans. Insurers issuing such policies must submit their premium
321 payment plan option to the office for approval before use.
322 (b) If, due to insufficient funds, a payment of premium
323 under this subsection by debit card, credit card, electronic
324 funds transfer, or electronic check is returned, is declined, or
325 cannot be processed, the insurer may impose an insufficient
326 funds fee of up to $15 per occurrence pursuant to the policy
327 terms. However, the insurer may not charge the policyholder an
328 insufficient funds fee if the failure in payment resulted from
329 fraud or misuse on the policyholder’s account from which the
330 payment was made and such fraud or misuse was not attributed to
331 the policyholder.
332 (2) Subsection (1) is not applicable to:
333 (a) Reinsurance agreements;
334 (b) Pension plans;
335 (c) Premium loans, whether or not subject to an automatic
336 provision;
337 (d) Dividends, whether to purchase additional paid-up
338 insurance or to shorten the dividend payment period;
339 (e) Salary deduction plans;
340 (f) Preauthorized check plans;
341 (g) Waivers of premiums on disability;
342 (h) Nonforfeiture provisions affording benefits under
343 supplementary contracts; or
344 (i) Such other methods of paying for life insurance as may
345 be permitted by the commission pursuant to rule or regulation.
346 (3) All payments of claims made in this state under any
347 contract of insurance shall be paid:
348 (a) In cash consisting of coins, currency, checks, drafts,
349 or money orders and, if by check or draft, shall be in such form
350 as will comply with the standards for cash items adopted by the
351 Federal Reserve System to facilitate the sorting, routing, and
352 mechanized processing of such items; or
353 (b) If authorized in writing by the recipient or the
354 recipient’s representative, by debit card or any other form of
355 electronic transfer. Any fees or costs to be charged against the
356 recipient must be disclosed in writing to the recipient or the
357 recipient’s representative at the time of written authorization.
358 However, the written authorization requirement may be waived by
359 the recipient or the recipient’s representative if the insurer
360 verifies the identity of the insured or the insured’s recipient
361 and does not charge a fee for the transaction. If the funds are
362 misdirected, the insurer remains liable for the payment of the
363 claim.
364 Section 11. Subsection (5) is added to section 627.421,
365 Florida Statutes, to read:
366 627.421 Delivery of policy.—
367 (5) An electronically delivered document satisfies any
368 font, size, color, spacing, or other formatting requirement for
369 printed documents if the format in the electronically delivered
370 document has reasonably similar proportions or emphasis of the
371 characters relative to the rest of the electronic document or is
372 otherwise displayed in a reasonably conspicuous manner.
373 Section 12. Subsection (9) of section 627.7295, Florida
374 Statutes, is amended to read:
375 627.7295 Motor vehicle insurance contracts.—
376 (9)(a) In addition to the methods provided in s.
377 627.4035(1), premium for motor vehicle insurance contracts
378 issued in this state or covering risk located in this state may
379 be paid in cash in the form of a draft or drafts.
380 (b) If, due to insufficient funds, payment of premium under
381 this subsection by debit card, credit card, electronic funds
382 transfer, or electronic check is returned, is declined, or
383 cannot be processed, the insurer may impose an insufficient
384 funds fee of up to $15 per occurrence pursuant to the policy
385 terms.
386 Section 13. Section 627.7843, Florida Statutes, is amended
387 to read:
388 627.7843 Property information reports Ownership and
389 encumbrance reports.—
390 (1) As used in this section, the term “property information
391 report” means any report that contains the limitations of this
392 section and discloses documents or information appearing in the
393 Official Records as described in s. 28.222, in the records of a
394 county tax collector pertaining to ad valorem real property
395 taxes and special assessments imposed by a governmental
396 authority against real property, in the Secretary of State
397 filing office, or in another governmental filing office
398 pertaining to real or personal property. A property information
399 report may be issued by any person, including a Florida-licensed
400 title insurer, title agent, or title agency “ownership and
401 encumbrance report” means a report that discloses certain
402 defined documents imparting constructive notice and appearing in
403 the official records relating to specified real property.
404 (2) A property information An ownership and encumbrance
405 report may not directly or indirectly set forth or imply any
406 opinion, warranty, guarantee, insurance, or other similar
407 assurance and does not constitute title insurance as defined in
408 s. 624.608 as to the status of title to real property.
409 (3) The contractual liability of the issuer of a property
410 information report is limited to the person or persons expressly
411 identified by name in the property information report as the
412 recipient or recipients of the property information report and
413 may not exceed the amount paid for the property information
414 report. Only contractual remedies are available for an error or
415 omission that arises from a property information report. A
416 property information report must contain the following language:
417
418 “This report is not title insurance. Pursuant to s. 627.7843,
419 Florida Statutes, the maximum liability of the issuer of this
420 property information report for errors or omissions in this
421 property information report is limited to the amount paid for
422 this property information report, and is further limited to the
423 person(s) expressly identified by name in the property
424 information report as the recipient(s) of the property
425 information report.” Any ownership and encumbrance report or
426 similar report that is relied on or intended to be relied on by
427 a consumer must be on forms approved by the office, and must
428 provide for a maximum liability for incorrect information of not
429 more than $1,000.
430 (4) This section is not applicable to an opinion of title
431 issued by an attorney.
432 Section 14. Section 627.422, Florida Statutes, is amended
433 to read:
434 627.422 Assignment of policies or post-loss benefits.—A
435 policy may be assignable, or not assignable, as provided by its
436 terms.
437 (1) LIFE OR HEALTH INSURANCE POLICIES.—Subject to its terms
438 relating to assignability, any life or health insurance policy
439 under the terms of which the beneficiary may be changed upon the
440 sole request of the policyowner may be assigned either by pledge
441 or transfer of title, by an assignment executed by the
442 policyowner alone and delivered to the insurer, whether or not
443 the pledgee or assignee is the insurer. Any such assignment
444 shall entitle the insurer to deal with the assignee as the owner
445 or pledgee of the policy in accordance with the terms of the
446 assignment, until the insurer has received at its home office
447 written notice of termination of the assignment or pledge or
448 written notice by or on behalf of some other person claiming
449 some interest in the policy in conflict with the assignment.
450 (2) POST-LOSS BENEFITS UNDER CERTAIN PROPERTY INSURANCE
451 POLICIES.—A personal lines residential property insurance
452 policy, a commercial residential property insurance policy, or a
453 commercial property insurance policy may not prohibit or limit
454 the post-loss assignment of benefits. This subsection does not
455 affect the assignment of benefits in other insurance policies.
456 (a) An agreement to assign post-loss benefits under this
457 subsection is not valid unless the agreement:
458 1. Is in writing between the policyholder and assignee and
459 is delivered to the insurer as provided in paragraph (c);
460 2. Is limited to claims for work performed or to be
461 performed by the assignee for damages claimed to be covered;
462 3. Allows the policyholder to unilaterally cancel the
463 assignment of post-loss benefits without penalty or obligation
464 within 7 days after the execution of the assignment by an
465 insured; provided, however, that the policyholder or insurer may
466 be responsible for payment for work already performed during
467 such period;
468 4. Contains an accurate and up-to-date statement of the
469 scope of work to be performed;
470 5. Includes proof that the assignee possesses a valid
471 certification from an entity that requires water damage
472 remediation to be performed according to a standard approved by
473 the American National Standards Institute; and
474 6. Contains the following notice in at least 14-point,
475 capitalized type:
476
477 YOU ARE AUTHORIZING THE ASSIGNEE OF YOUR POLICY TO COMMUNICATE
478 WITH YOUR INSURANCE COMPANY ON YOUR BEHALF. THIS ASSIGNMENT
479 GIVES YOUR ASSIGNEE THE PRIMARY AUTHORITY TO NEGOTIATE WITH YOUR
480 INSURANCE COMPANY ON YOUR BEHALF. PLEASE READ AND UNDERSTAND
481 THIS DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT TO CANCEL
482 THIS AGREEMENT WITHOUT PENALTY OR OBLIGATION WITHIN 7 DAYS AFTER
483 THE DATE THIS AGREEMENT IS EXECUTED. SHOULD YOU CANCEL THIS
484 AGREEMENT, YOU OR YOUR INSURER MAY BE RESPONSIBLE FOR ANY WORK
485 THAT HAS ALREADY BEEN PERFORMED. THIS AGREEMENT DOES NOT CHANGE
486 YOUR OBLIGATION TO PERFORM THE DUTIES UNDER YOUR PROPERTY
487 INSURANCE POLICY.
488 (b) An assignee of post-loss benefits under this
489 subsection:
490 1. Must provide the policyholder with accurate and up-to
491 date revised statements of the scope of work to be performed as
492 supplemental or additional repairs are required, and must
493 provide to the policyholder and insurer a final invoice and bill
494 for service rendered within 7 business days after the date on
495 which the work was completed;
496 2. Must guarantee to the policyholder that the work
497 performed conforms to current and accepted industry standards;
498 3. May not charge the policyholder more than the applicable
499 deductible contained in the policy unless the policyholder opts
500 for additional work or betterment of materials at the
501 policyholder’s own expense;
502 4. May not pay referral fees totaling more than $250 in
503 connection with the assignment; and
504 5. May not charge the policyholder directly, except for
505 additional work not covered under the policy which includes:
506 a. Work performed that is rightfully denied as not covered;
507 and
508 b. Betterments or additional work not part of the loss.
509 (c) An insurer shall provide on its website and in the
510 policy its contact information for receiving the agreement that
511 meets the requirements of paragraph (a). The contact information
512 must include at least a dedicated facsimile number. After
513 executing the assignment agreement, the assignee must deliver
514 the agreement to the insurer within the later of:
515 1. If a state of emergency was declared under s. 252.36 for
516 a hurricane or other natural disaster and the property covered
517 under the policy was damaged as a result of the hurricane or
518 natural disaster, 7 days after the state of emergency is
519 terminated; or
520 2. Seven business days after execution of the agreement.
521 (d) Notwithstanding s. 627.70131, upon receiving the
522 agreement in paragraph (a), the insurer must make any initial
523 inspections of the covered property within the later of:
524 1. If a state of emergency was declared under s. 252.36 for
525 a hurricane or other natural disaster and the property covered
526 under the policy was damaged as a result of the hurricane or
527 natural disaster, 7 days after the state of emergency is
528 terminated; or
529 2. Seven business days after receiving the agreement.
530 (e) No later than 7 days before an insured or assignee
531 initiates litigation against an insurer relating to a denied or
532 limited claim, the insured or assignee must provide the insurer
533 with notice of intent to initiate such litigation. The notice of
534 intent must include a copy of the final invoice required under
535 subparagraph (b)1 for the work that has been performed or an
536 estimate of the work to be performed. This paragraph does not
537 increase the time periods prescribed in s. 627.70131.
538 (f) Notwithstanding any other law, in a dispute relating to
539 the assignment of benefits for a personal lines residential
540 property insurance policy, commercial residential property
541 insurance policy, or commercial property insurance policy in
542 which an assignee but not the named insured is a party, for any
543 proposal for settlement made to a plaintiff, such proposal shall
544 be served no earlier than 10 days after the date of commencement
545 of the action.
546 (g) This section does not apply to:
547 1. An assignment, transfer, or conveyance granted to a
548 subsequent purchaser of the property with an insurable interest
549 in the property following a loss;
550 2. A power of attorney under chapter 709 which grants to a
551 management company, family member, guardian, or similarly
552 situated person of an insured the authority to act on behalf of
553 an insured as it relates to a property insurance claim; or
554 3. Liability coverage under a property insurance policy.
555 (3) ANNUAL REPORT.—The office shall require each insurer to
556 report by March 31, 2019, and each year thereafter, data on each
557 claim paid in the prior calendar year pursuant to an assignment
558 agreement. Such data must include, but are not limited to:
559 (a) The number of days between the first notice of loss and
560 the initial inspection.
561 (b) Loss severity.
562 (c) Allocated loss adjustment expense.
563 (d) For litigated claims:
564 1. Any amount paid before litigation, the amount in
565 dispute, the amount of any proposal for settlement, and the
566 settlement or judgment amount;
567 2. The amount of fees paid to the claimant’s attorney; and
568 3. The amount and structure, whether fixed, hourly, or
569 contingent, of fees paid to the insurer’s attorney.
570
571 All information the insurer reports under this paragraph must
572 first be reported to the opposing counsel on the litigated claim
573 for verification or certification. The opposing counsel on the
574 litigated claim shall report to the office its agreement or
575 disagreement with the accuracy of the figures reported.
576 (e) For nonlitigated claims, the difference between the
577 insurer’s initial offer and the amount paid on the claim.
578 (f) The time from the first notice of loss until the claim
579 was closed.
580 (g) For claims involving water damage, whether the adjuster
581 possessed certification from an entity that requires water
582 damage remediation to be performed according to a standard
583 approved by the American National Standards Institute.
584 Section 15. The amendments made by this act to s. 627.422,
585 Florida Statutes, apply to assignment agreements entered into on
586 or after January 1, 2018.
587 Section 16. Paragraph (a) of subsection (3) of section
588 627.7011, Florida Statutes, is amended to read:
589 627.7011 Homeowners’ policies; offer of replacement cost
590 coverage and law and ordinance coverage.—
591 (3) In the event of a loss for which a dwelling or personal
592 property is insured on the basis of replacement costs:
593 (a) For a dwelling:,
594 1. The insurer must initially pay at least the actual cash
595 value of the insured loss, less any applicable deductible. The
596 insurer shall pay any remaining amounts necessary to perform
597 such repairs as work is performed and expenses are incurred. If
598 a total loss of a dwelling occurs, the insurer shall pay the
599 replacement cost coverage without reservation or holdback of any
600 depreciation in value, pursuant to s. 627.702.
601 2. The insurer may not require that a particular vendor
602 make repairs to such dwelling.
603 3. The insurer may not, unless expressly requested by the
604 insured, recommend or suggest a particular vendor for repairs to
605 be made to such dwelling.
606 Section 17. This act shall take effect upon becoming a law.
607
608 ================= T I T L E A M E N D M E N T ================
609 And the title is amended as follows:
610 Delete everything before the enacting clause
611 and insert:
612 A bill to be entitled
613 An act relating to insurance; amending s. 177.041,
614 F.S.; providing that a specified property information
615 report, rather than a specified certification by an
616 abstractor or a title company, may be submitted as
617 part of certain information required in relation to
618 the plat or replat of a subdivision; amending ss.
619 177.091 and 197.502, F.S.; conforming provisions to
620 changes made by the act; amending s. 215.555, F.S.;
621 deleting a future repeal of an exemption of medical
622 malpractice insurance premiums from certain emergency
623 assessments by the State Board of Administration
624 relating to the Florida Hurricane Catastrophe Fund;
625 amending s. 624.407, F.S.; specifying the minimum
626 surplus as to policyholders for insurers that only
627 transact in specified forms of residential property
628 insurance; amending s. 624.424, F.S.; revising a
629 requirement for audit committees established by the
630 boards of directors of insurers, relating to
631 relationships that would interfere with the exercise
632 of independent judgment of committee members; amending
633 s. 625.012, F.S.; revising the allowable assets of
634 insurers relating to specified levied assessments;
635 amending s. 627.062, F.S.; revising requirements for
636 certain rate filings by medical malpractice insurers;
637 providing that certain attorney fees and costs paid by
638 property insurers may not be included such insurers’
639 rate base and may not be used to justify a rate
640 increase or rate change; amending s. 627.0645, F.S.;
641 adding certain medical malpractice insurance to
642 casualty insurance excluded from an annual base rate
643 filing requirement for rating organizations; amending
644 s. 627.4035, F.S.; revising the methods of paying
645 premiums for insurance contracts; authorizing an
646 insurer to impose a specified insufficient funds fee
647 if certain premium payment methods are returned, are
648 declined, or cannot be processed; providing an
649 exception; amending s. 627.421, F.S.; providing that
650 an electronically delivered document in an insurance
651 policy meets formatting requirements for printed
652 documents under certain conditions; amending s.
653 627.7295, F.S.; conforming provisions to changes made
654 by the act; amending s. 627.7843, F.S.; replacing
655 provisions relating to ownership and encumbrance
656 reports with provisions relating to property
657 information reports; defining the term “property
658 information report”; prohibiting property information
659 reports from setting forth or implying certain
660 assurances; providing construction; specifying a
661 limitation on the contractual liability of issuers of
662 property information reports; requiring a specified
663 disclosure in property information reports; providing
664 applicability; amending s. 627.422, F.S.; prohibiting
665 certain property insurance policies from prohibiting
666 or limiting the post-loss assignment of benefits;
667 providing that an assignment agreement is not valid
668 unless it meets specified requirements; providing
669 requirements and limitations for assignees of post
670 loss benefits; requiring insurers to provide specified
671 contact information on their websites and in policies;
672 requiring assignees to deliver an executed assignment
673 agreement to insurers within a specified timeframe;
674 requiring insurers, upon receiving such agreements, to
675 make any initial inspections of covered property
676 within specified timeframes; requiring insureds or
677 assignees to provide a certain prelitigation notice
678 and invoice to insurers within a specified timeframe;
679 providing construction; requiring certain settlement
680 proposals to a plaintiff to be served no earlier than
681 a specified time; providing applicability; requiring
682 the Office of Insurance Regulation to require each
683 insurer to report at specified timeframes certain data
684 relating to claims paid pursuant to assignment
685 agreements; requiring insurers to report certain
686 information to opposing counsel, and requiring the
687 opposing counsel to verify or certify the information;
688 providing applicability of the amendments made by the
689 act; amending s. 627.7011, F.S.; prohibiting specified
690 acts of insurers relating to homeowners’ insurance
691 policies under certain circumstances; providing an
692 effective date.