Florida Senate - 2019 COMMITTEE AMENDMENT Bill No. SB 122 Ì4692549Î469254 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Thurston) recommended the following: 1 Senate Substitute for Amendment (923034) (with title 2 amendment) 3 4 Delete everything after the enacting clause 5 and insert: 6 Section 1. Section 627.7152, Florida Statutes, is created 7 to read: 8 627.7152 Assignment of residential homeowner’s property 9 insurance post-loss benefits.— 10 (1) An agreement to assign post-loss benefits of a 11 residential homeowner’s property insurance policy is not valid 12 unless the agreement: 13 (a) Is in writing; 14 (b) Is limited to claims for work performed or work to be 15 performed by the assignee to protect or repair property from 16 damage, including, but not limited to, work to stabilize, 17 protect, repair, or improve such property; 18 (c) Allows the insured to rescind the assignment within 3 19 days after the execution of the assignment without a penalty or 20 fee; 21 (d) Contains the following notice in 14-point bold type to 22 the consumer: 23 24 “WARNING: IF YOU HAVE RESIDENTIAL HOMEOWNERS PROPERTY 25 INSURANCE, YOU MAY BE AGREEING TO GIVE UP CERTAIN 26 RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD 27 PARTY. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE 28 SIGNING IT. WITH THE EXCEPTION OF PAYMENT FOR WORK 29 ALREADY PERFORMED BY A SERVICE PROVIDER TO PREVENT 30 ADDITIONAL DAMAGE FROM OCCURRING TO THE PROPERTY 31 RESULTING FROM EMERGENCY OR URGENT CIRCUMSTANCES, YOU 32 HAVE THE RIGHT TO RESCIND THIS AGREEMENT WITHOUT 33 PENALTY WITHIN 3 BUSINESS DAYS AFTER THE DATE THIS 34 AGREEMENT IS EXECUTED. IF THE ASSIGNMENT IS RESCINDED, 35 YOU ARE RESPONSIBLE TO PAY FOR THE WORK DONE UP TO THE 36 DATE OF THE RESCISSION AND YOU ARE NOT OTHERWISE 37 RESPONSIBLE TO PAY FOR THE WORK COVERED BY THE 38 ASSIGNMENT. IF WORK IS BEING PERFORMED AS A RESULT OF 39 DAMAGES CAUSED BY AN EVENT FOR WHICH THE GOVERNOR HAS 40 DECLARED A STATE OF EMERGENCY AND IS WITHIN 1 YEAR 41 AFTER SUCH DECLARATION, THE 3 BUSINESS DAY PERIOD TO 42 RESCIND THIS AGREEMENT IS EXTENDED TO 5 BUSINESS DAYS. 43 THIS AGREEMENT DOES NOT CHANGE YOUR DUTIES UNDER YOUR 44 PROPERTY INSURANCE POLICY, SUCH AS PROMPTLY NOTIFYING 45 YOUR INSURANCE COMPANY OF A LOSS AND MITIGATING YOUR 46 PROPERTY FROM FURTHER DAMAGE. 47 48 (2) The assignee shall provide a copy of the assignment 49 agreement to the insurer within 5 days after execution of the 50 agreement, or within 48 hours after beginning nonemergency work, 51 whichever is earlier, if the insurer has a facsimile number and 52 email address on its website designated for the delivery of such 53 documents. This assignment agreement must be accompanied by a 54 written estimate of the work to be done, with unit prices 55 indicated where appropriate, and the basis for calculating lump 56 sum fees if unit prices are inappropriate. The estimate must be 57 timely updated if conditions require a change in scope. The 58 failure to comply with this requirement constitutes a defense to 59 any payment obligation under the policy or the assignment, if 60 the insurer can establish prejudice resulting from the failure. 61 (3) Before emergency work commences, the remediator, 62 contractor, or other service provider must inform the homeowner 63 in writing of the obvious conditions that require priority 64 repairs and mitigation, including, but not limited to, flooding 65 or standing water, exposed electrical wiring, a hole or breach 66 in the roof or an exterior wall, or significant foundation 67 cracks. 68 (4) The insurer may inspect the property at any time. If 69 the insurer fails to attempt in good faith to do so within 5 70 days after receiving a copy of the assignment agreement 71 described in subsection (2) and to promptly deliver to the 72 assignee written notice of any perceived deficiency in the 73 assignee’s notice or the work being performed, the failure may 74 be raised to estop the insurer from asserting that work done was 75 not reasonably necessary or that the notice was insufficient to 76 comply with this section. 77 (5) Notwithstanding any other law, the acceptance by a 78 person of any assignment agreement constitutes a waiver by the 79 assignee or transferee, and any subcontractor of the assignee or 80 transferee, of any and all claims against all named insureds for 81 payment arising from the specified loss, except that all named 82 insureds remain responsible for the payment of any deductible 83 amount provided for by the terms of the insurance policy and for 84 the cost of any betterment ordered by all named insureds. This 85 waiver remains in effect notwithstanding any subsequent 86 determination that the assignment agreement is invalid or 87 notwithstanding the rescission of the assignment agreement by 88 all named insureds, except that the assignee is entitled to 89 payment for the reasonable cost of any contracted work performed 90 before the assignor rescinded the assignment agreement. 91 Section 2. This act shall take effect July 1, 2019. 92 93 ================= T I T L E A M E N D M E N T ================ 94 And the title is amended as follows: 95 Delete everything before the enacting clause 96 and insert: 97 A bill to be entitled 98 An act relating to assignment of residential 99 homeowners property insurance post-loss benefits; 100 creating s. 627.7152, F.S.; providing that an 101 agreement to assign post-loss benefits of a 102 residential homeowner’s property insurance policy is 103 not valid unless specified conditions are met; 104 requiring the assignee to provide a copy of the 105 assignment agreement and a specified written estimate 106 to the insurer within a specified timeframe; requiring 107 the estimate to be timely updated if conditions 108 require a change in scope; providing construction 109 relating to failure to comply with such requirement; 110 requiring service providers to inform homeowners of 111 certain conditions before commencing emergency work; 112 authorizing insurers to inspect the property at any 113 time; providing construction if an insurer fails to 114 attempt in good faith to inspect the property within a 115 certain timeframe; providing that a person’s 116 acceptance of an assignment agreement constitutes a 117 waiver by the assignee or transferee, or any 118 subcontractor of the assignee or transferee, of 119 certain claims against named insureds, except under 120 specified circumstances; providing construction 121 relating to such waiver; providing an effective date.