Florida Senate - 2019                CS for CS for CS for SB 714
       By the Committees on Banking and Insurance; Judiciary; and
       Banking and Insurance; and Senators Brandes and Bracy
       597-04033-19                                           2019714c3
    1                        A bill to be entitled                      
    2         An act relating to insurance; providing a short title;
    3         amending s. 215.555, F.S.; increasing the required
    4         reimbursement of loss adjustment expenses in
    5         reimbursement contracts between the State Board of
    6         Administration and property insurers under the Florida
    7         Hurricane Catastrophe Fund; amending s. 319.30, F.S.;
    8         specifying means by which an insurance company may
    9         forward certificates of title of certain salvage motor
   10         vehicles or mobile homes to the Department of Highway
   11         Safety and Motor Vehicles; revising the effective date
   12         of certain procedures and requirements relating to
   13         certificates of title; providing that certain
   14         electronic signatures satisfy certain signature
   15         requirements; amending s. 440.381, F.S.; revising a
   16         criminal penalty for the submission, with certain
   17         intent, of an employer application for workers’
   18         compensation insurance coverage which contains false,
   19         misleading, or incomplete information; providing that
   20         certain sworn statements in such applications are not
   21         required to be notarized; creating s. 624.1055, F.S.;
   22         providing a right of contribution among insurers for
   23         defense costs under certain circumstances; providing a
   24         requirement for, and authorizing the use of certain
   25         factors by, a court in allocating costs; providing a
   26         cause of action to enforce the right of contribution;
   27         providing construction and applicability; amending s.
   28         624.155, F.S.; deleting a provision that tolls, under
   29         certain circumstances, a period before a civil action
   30         against an insurer may be brought; deleting a
   31         provision authorizing the Department of Financial
   32         Services to return a civil remedy notice for lack of
   33         specificity; prohibiting the filing of the notice
   34         within a certain timeframe under certain
   35         circumstances; amending s. 624.404, F.S.; adding a
   36         circumstance under which the Office of Insurance
   37         Regulation may waive a 3-year operation requirement
   38         for foreign or alien insurers and exchanges; amending
   39         s. 624.4085, F.S.; specifying the applicable formula
   40         for determining risk-based capital of certain health
   41         maintenance organizations and prepaid limited health
   42         service organizations; amending s. 626.914, F.S.;
   43         revising the definition of the term “diligent effort”
   44         as used in the Surplus Lines Law; amending s. 627.062,
   45         F.S.; specifying applicable rate standards and
   46         requirements for certain personal lines residential
   47         property insurance; creating s. 627.1711, F.S.;
   48         providing a limitation on certain personal lines
   49         residential property insurance policies that may be
   50         written or renewed by an insurer each calendar year;
   51         amending s. 627.4102, F.S.; providing an exemption, if
   52         certain conditions are met, from a form approval
   53         process for certain personal lines residential
   54         property insurance forms; amending s. 626.916, F.S.;
   55         specifying applicable requirements before certain
   56         personal lines residential property insurance may be
   57         exported; deleting a limit on fees charged by filing
   58         surplus lines agents per policy certified for export;
   59         authorizing retail agents to charge reasonable fees
   60         for placing surplus lines policies; specifying
   61         requirements for itemizing and enumerating fees;
   62         amending s. 626.9541, F.S.; providing that insurers
   63         and agents may give insureds certain free or
   64         discounted loss mitigation services or loss control
   65         items; deleting a limitation on the value of loss
   66         mitigation services that may be given to insureds;
   67         amending s. 627.0655, F.S.; revising circumstances
   68         under which insurers or certain authorized persons may
   69         provide certain premium discounts to insureds;
   70         amending s. 627.426, F.S.; adding means by which
   71         liability insurers may provide to named insureds
   72         certain notices relating to coverage denials based on
   73         a particular coverage defense; amending s. 627.4555,
   74         F.S.; requiring life insurers that are required to
   75         provide a specified notice to policyowners of an
   76         impending lapse in coverage to also notify the
   77         policyowner’s agent of record within a certain
   78         timeframe; providing that the agent is not responsible
   79         for any lapse in coverage; exempting the insurer from
   80         the requirement under certain circumstances; amending
   81         s. 627.7015, F.S.; adding circumstances under which
   82         certain property insurers may provide required notice
   83         to policyholders of their right to participate in a
   84         certain mediation program; amending s. 627.7295, F.S.;
   85         reducing the collected premium required before private
   86         passenger motor vehicle insurance policies or binders
   87         may be initially issued; amending s. 921.0022, F.S.;
   88         conforming a provision to changes made by the act;
   89         providing effective dates.
   91  Be It Enacted by the Legislature of the State of Florida:
   93         Section 1. This act may be cited as “Omnibus Prime.”
   94         Section 2. Effective upon this act becoming a law,
   95  paragraph (b) of subsection (4) of section 215.555, Florida
   96  Statutes, is amended to read:
   97         215.555 Florida Hurricane Catastrophe Fund.—
   99         (b)1. The contract shall contain a promise by the board to
  100  reimburse the insurer for 45 percent, 75 percent, or 90 percent
  101  of its losses from each covered event in excess of the insurer’s
  102  retention, plus 5 percent of the reimbursed losses to cover loss
  103  adjustment expenses. For contracts and rates effective on or
  104  after June 1, 2019, the loss adjustment expense reimbursement
  105  must be 10 percent of the reimbursed losses.
  106         2. The insurer must elect one of the percentage coverage
  107  levels specified in this paragraph and may, upon renewal of a
  108  reimbursement contract, elect a lower percentage coverage level
  109  if no revenue bonds issued under subsection (6) after a covered
  110  event are outstanding, or elect a higher percentage coverage
  111  level, regardless of whether or not revenue bonds are
  112  outstanding. All members of an insurer group must elect the same
  113  percentage coverage level. Any joint underwriting association,
  114  risk apportionment plan, or other entity created under s.
  115  627.351 must elect the 90-percent coverage level.
  116         3. The contract shall provide that reimbursement amounts
  117  shall not be reduced by reinsurance paid or payable to the
  118  insurer from other sources.
  119         Section 3. Paragraph (b) of subsection (3) of section
  120  319.30, Florida Statutes, is amended, and paragraph (d) is added
  121  to that section, to read:
  122         319.30 Definitions; dismantling, destruction, change of
  123  identity of motor vehicle or mobile home; salvage.—
  124         (3)
  125         (b) The owner, including persons who are self-insured, of a
  126  motor vehicle or mobile home that is considered to be salvage
  127  shall, within 72 hours after the motor vehicle or mobile home
  128  becomes salvage, forward the title to the motor vehicle or
  129  mobile home to the department for processing. However, an
  130  insurance company that pays money as compensation for the total
  131  loss of a motor vehicle or mobile home shall obtain the
  132  certificate of title for the motor vehicle or mobile home, make
  133  the required notification to the National Motor Vehicle Title
  134  Information System, and, within 72 hours after receiving such
  135  certificate of title, forward such title by electronic means,
  136  the United States Postal Service, or another commercially
  137  available delivery service to the department for processing. The
  138  owner or insurance company, as applicable, may not dispose of a
  139  vehicle or mobile home that is a total loss before it obtains a
  140  salvage certificate of title or certificate of destruction from
  141  the department. Effective July 1, 2020 July 1, 2023:
  142         1. Thirty days after payment of a claim for compensation
  143  pursuant to this paragraph, the insurance company may receive a
  144  salvage certificate of title or certificate of destruction from
  145  the department if the insurance company is unable to obtain a
  146  properly assigned certificate of title from the owner or
  147  lienholder of the motor vehicle or mobile home, if the motor
  148  vehicle or mobile home does not carry an electronic lien on the
  149  title and the insurance company:
  150         a. Has obtained the release of all liens on the motor
  151  vehicle or mobile home;
  152         b. Has provided proof of payment of the total loss claim;
  153  and
  154         c. Has provided an affidavit on letterhead signed by the
  155  insurance company or its authorized agent stating the attempts
  156  that have been made to obtain the title from the owner or
  157  lienholder and further stating that all attempts are to no
  158  avail. The affidavit must include a request that the salvage
  159  certificate of title or certificate of destruction be issued in
  160  the insurance company’s name due to payment of a total loss
  161  claim to the owner or lienholder. The attempts to contact the
  162  owner may be by written request delivered in person or by first
  163  class mail with a certificate of mailing to the owner’s or
  164  lienholder’s last known address.
  165         2. If the owner or lienholder is notified of the request
  166  for title in person, the insurance company must provide an
  167  affidavit attesting to the in-person request for a certificate
  168  of title.
  169         3. The request to the owner or lienholder for the
  170  certificate of title must include a complete description of the
  171  motor vehicle or mobile home and the statement that a total loss
  172  claim has been paid on the motor vehicle or mobile home.
  173         (d)An electronic signature that is in accordance with
  174  chapter 668 satisfies any signature requirement under this
  175  subsection.
  176         Section 4. Subsection (2) of section 440.381, Florida
  177  Statutes, is amended to read:
  178         440.381 Application for coverage; reporting payroll;
  179  payroll audit procedures; penalties.—
  180         (2) Submission of an application that contains false,
  181  misleading, or incomplete information provided with the purpose
  182  of avoiding or reducing the amount of premiums for workers’
  183  compensation coverage is a felony of the third second degree,
  184  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
  185  The application must contain a statement that the filing of an
  186  application containing false, misleading, or incomplete
  187  information provided with the purpose of avoiding or reducing
  188  the amount of premiums for workers’ compensation coverage is a
  189  felony of the third degree, punishable as provided in s.
  190  775.082, s. 775.083, or s. 775.084. The application must contain
  191  a sworn statement by the employer attesting to the accuracy of
  192  the information submitted and acknowledging the provisions of
  193  former s. 440.37(4). The application must contain a sworn
  194  statement by the agent attesting that the agent explained to the
  195  employer or officer the classification codes that are used for
  196  premium calculations. The sworn statements by the employer and
  197  the agent are not required to be notarized.
  198         Section 5. Section 624.1055, Florida Statutes, is created
  199  to read:
  200         624.1055Right of contribution among insurers for defense
  201  costs.—A liability insurer that owes a duty to defend an insured
  202  and that defends the insured against a claim, suit, or other
  203  action has a right of contribution for defense costs against any
  204  other liability insurer that owes a duty to defend the insured
  205  against the same claim, suit, or other action, provided that
  206  contribution may not be sought from any insurer for defense
  207  costs incurred before the insurer’s receipt of notice of the
  208  claim, suit, or other action.
  209         (1)APPORTIONMENT OF COSTS.—The court shall allocate
  210  defense costs among insurers that owe a duty to defend the
  211  insured against the same claim, suit, or other action in
  212  accordance with the terms of the insurance policies. The court
  213  may use such equitable factors as the court determines are
  214  appropriate in making such allocation.
  215         (2)ENFORCEMENT OF RIGHT OF CONTRIBUTION.—A liability
  216  insurer that is entitled to contribution from another insurer
  217  under this section may file an action for contribution in a
  218  court of competent jurisdiction.
  219         (3)CONSTRUCTION.—
  220         (a)This section is not intended to alter any term of a
  221  liability insurance policy or to create any additional duty on
  222  the part of an insurer to an insured.
  223         (b)An insured may not rely on this section as grounds for
  224  a complaint against an insurer.
  225         (4) APPLICABILITY.—
  226         (a)This section applies to liability insurance policies
  227  issued for delivery in this state or to liability insurance
  228  policies under which an insurer has a duty to defend an insured
  229  against claims asserted or suits or actions filed in this state.
  230  Such liability insurance policies include surplus lines
  231  insurance policies authorized under the Surplus Lines Law, ss.
  232  626.913-626.937. This section does not apply to motor vehicle
  233  liability insurance or medical professional liability insurance.
  234         (b)This section applies to any claim, suit, or other
  235  action initiated on or after January 1, 2020.
  236         Section 6. Subsection (3) of section 624.155, Florida
  237  Statutes, is amended to read:
  238         624.155 Civil remedy.—
  239         (3)(a) As a condition precedent to bringing an action under
  240  this section, the department and the authorized insurer must
  241  have been given 60 days’ written notice of the violation. If the
  242  department returns a notice for lack of specificity, the 60-day
  243  time period shall not begin until a proper notice is filed.
  244         (b) The notice shall be on a form provided by the
  245  department and shall state with specificity the following
  246  information, and such other information as the department may
  247  require:
  248         1. The statutory provision, including the specific language
  249  of the statute, which the authorized insurer allegedly violated.
  250         2. The facts and circumstances giving rise to the
  251  violation.
  252         3. The name of any individual involved in the violation.
  253         4. Reference to specific policy language that is relevant
  254  to the violation, if any. If the person bringing the civil
  255  action is a third party claimant, she or he shall not be
  256  required to reference the specific policy language if the
  257  authorized insurer has not provided a copy of the policy to the
  258  third party claimant pursuant to written request.
  259         5. A statement that the notice is given in order to perfect
  260  the right to pursue the civil remedy authorized by this section.
  261         (c) Within 20 days of receipt of the notice, the department
  262  may return any notice that does not provide the specific
  263  information required by this section, and the department shall
  264  indicate the specific deficiencies contained in the notice. A
  265  determination by the department to return a notice for lack of
  266  specificity shall be exempt from the requirements of chapter
  267  120.
  268         (c)(d) No action shall lie if, within 60 days after filing
  269  notice, the damages are paid or the circumstances giving rise to
  270  the violation are corrected.
  271         (d)(e) The authorized insurer that is the recipient of a
  272  notice filed pursuant to this section shall report to the
  273  department on the disposition of the alleged violation.
  274         (e)(f) The applicable statute of limitations for an action
  275  under this section shall be tolled for a period of 65 days by
  276  the mailing of the notice required by this subsection or the
  277  mailing of a subsequent notice required by this subsection.
  278         (f)A notice required under this subsection may not be
  279  filed within 60 days after appraisal is invoked by any party in
  280  a residential property insurance claim.
  281         Section 7. Subsection (2) of section 624.404, Florida
  282  Statutes, is amended to read:
  283         624.404 General eligibility of insurers for certificate of
  284  authority.—To qualify for and hold authority to transact
  285  insurance in this state, an insurer must be otherwise in
  286  compliance with this code and with its charter powers and must
  287  be an incorporated stock insurer, an incorporated mutual
  288  insurer, or a reciprocal insurer, of the same general type as
  289  may be formed as a domestic insurer under this code; except
  290  that:
  291         (2) A No foreign or alien insurer or exchange may not shall
  292  be authorized to transact insurance in this state unless it is
  293  otherwise qualified therefor under this code and has operated
  294  satisfactorily for at least 3 years in its state or country of
  295  domicile; however, the office may waive the 3-year requirement
  296  if the foreign or alien insurer or exchange:
  297         (a) Has operated successfully and has capital and surplus
  298  of $5 million;
  299         (b) Is the wholly owned subsidiary of an insurer which is
  300  an authorized insurer in this state;
  301         (c) Is the successor in interest through merger or
  302  consolidation of an authorized insurer; or
  303         (d) Provides a product or service not readily available to
  304  the consumers of this state; or
  305         (e)Possesses sufficient capital and surplus to support its
  306  plan of operation as filed with the office.
  307         Section 8. Paragraphs (d) and (e) of subsection (2) of
  308  section 624.4085, Florida Statutes, are amended, and paragraph
  309  (g) of subsection (1) of that section is republished, to read:
  310         624.4085 Risk-based capital requirements for insurers.—
  311         (1) As used in this section, the term:
  312         (g) “Life and health insurer” means an insurer authorized
  313  or eligible under the Florida Insurance Code to underwrite life
  314  or health insurance. The term includes a property and casualty
  315  insurer that writes accident and health insurance only.
  316  Effective January 1, 2015, the term also includes a health
  317  maintenance organization that is authorized in this state and
  318  one or more other states, jurisdictions, or countries and a
  319  prepaid limited health service organization that is authorized
  320  in this state and one or more other states, jurisdictions, or
  321  countries.
  322         (2)
  323         (d) A life and health insurer’s risk-based capital is
  324  determined in accordance with the formula set forth in the risk
  325  based capital instructions. The formula takes into account and
  326  may adjust for the covariance between:
  327         1. The risk with respect to the insurer’s assets;
  328         2. The risk of adverse insurance experience with respect to
  329  the insurer’s liabilities and obligations;
  330         3. The interest rate risk with respect to the insurer’s
  331  business; and
  332         4. Any other business or other relevant risk set out in the
  333  risk-based capital instructions,
  335  determined in each case by applying the factors in the manner
  336  set forth in the risk-based capital instructions. This paragraph
  337  does not apply to a health maintenance organization or a prepaid
  338  limited health service organization.
  339         (e) The risk-based capital of a property and casualty
  340  insurer, and, if a health maintenance organization or prepaid
  341  limited health service organization is subject to this section
  342  pursuant to paragraph (1)(g), the risk-based capital of such
  343  organization, insurer’s risk-based capital is determined in
  344  accordance with the formula set forth in the risk-based capital
  345  instructions. The formula takes into account and may adjust for
  346  the covariance between:
  347         1. The asset risk;
  348         2. The credit risk;
  349         3. The underwriting risk; and
  350         4. Any other business or other relevant risk set out in the
  351  risk-based capital instructions,
  353  determined in each case by applying the factors in the manner
  354  set forth in the risk-based capital instructions.
  355         Section 9. Subsection (4) of section 626.914, Florida
  356  Statutes, is amended to read:
  357         626.914 Definitions.—As used in this Surplus Lines Law, the
  358  term:
  359         (4) “Diligent effort” means seeking coverage from and
  360  having been rejected by at least three authorized insurers
  361  currently writing this type of coverage and documenting these
  362  rejections. However, if the residential structure has a dwelling
  363  replacement cost of $700,000 $1 million or more, the term means
  364  seeking coverage from and having been rejected by at least one
  365  authorized insurer currently writing this type of coverage and
  366  documenting this rejection.
  367         Section 10. Paragraph (d) of subsection (3) of section
  368  627.062, Florida Statutes, is amended to read:
  369         627.062 Rate standards.—
  370         (3)
  371         (d)1. Personal lines residential property insurance with a
  372  dwelling replacement limit of $700,000 or more which is written
  373  or renewed pursuant to s. 627.1711 and the following categories
  374  or kinds of insurance and types of commercial lines risks are
  375  not subject to paragraph (2)(a) or paragraph (2)(f):
  376         a. Excess or umbrella.
  377         b. Surety and fidelity.
  378         c. Boiler and machinery and leakage and fire extinguishing
  379  equipment.
  380         d. Errors and omissions.
  381         e. Directors and officers, employment practices, fiduciary
  382  liability, and management liability.
  383         f. Intellectual property and patent infringement liability.
  384         g. Advertising injury and Internet liability insurance.
  385         h. Property risks rated under a highly protected risks
  386  rating plan.
  387         i. General liability.
  388         j. Nonresidential property, except for collateral
  389  protection insurance as defined in s. 624.6085.
  390         k. Nonresidential multiperil.
  391         l. Excess property.
  392         m. Burglary and theft.
  393         n. Travel insurance, if issued as a master group policy
  394  with a situs in another state where each certificateholder pays
  395  less than $30 in premium for each covered trip and where the
  396  insurer has written less than $1 million in annual written
  397  premiums in the travel insurance product in this state during
  398  the most recent calendar year.
  399         o. Medical malpractice for a facility that is not a
  400  hospital licensed under chapter 395, a nursing home licensed
  401  under part II of chapter 400, or an assisted living facility
  402  licensed under part I of chapter 429.
  403         p. Medical malpractice for a health care practitioner who
  404  is not a dentist licensed under chapter 466, a physician
  405  licensed under chapter 458, an osteopathic physician licensed
  406  under chapter 459, a chiropractic physician licensed under
  407  chapter 460, a podiatric physician licensed under chapter 461, a
  408  pharmacist licensed under chapter 465, or a pharmacy technician
  409  registered under chapter 465.
  410         q. Any other commercial lines categories or kinds of
  411  insurance or types of commercial lines risks that the office
  412  determines should not be subject to paragraph (2)(a) or
  413  paragraph (2)(f) because of the existence of a competitive
  414  market for such insurance or similarity of such insurance to
  415  other categories or kinds of insurance not subject to paragraph
  416  (2)(a) or paragraph (2)(f), or to improve the general
  417  operational efficiency of the office.
  418         2. Insurers or rating organizations shall establish and use
  419  rates, rating schedules, or rating manuals to allow the insurer
  420  a reasonable rate of return on insurance and risks described in
  421  subparagraph 1. which are written in this state.
  422         3. An insurer shall notify the office of any changes to
  423  rates for insurance and risks described in subparagraph 1.
  424  within 30 days after the effective date of the change. The
  425  notice must include the name of the insurer, the type or kind of
  426  insurance subject to rate change, and the average statewide
  427  percentage change in rates. Actuarial data with regard to rates
  428  for such risks must be maintained by the insurer for 2 years
  429  after the effective date of changes to those rates and are
  430  subject to examination by the office. The office may require the
  431  insurer to incur the costs associated with an examination. Upon
  432  examination, the office, in accordance with generally accepted
  433  and reasonable actuarial techniques, shall consider the rate
  434  factors in paragraphs (2)(b), (c), and (d) and the standards in
  435  paragraph (2)(e) to determine if the rate is excessive,
  436  inadequate, or unfairly discriminatory.
  437         4. A rating organization shall notify the office of any
  438  changes to loss cost for insurance and risks described in
  439  subparagraph 1. within 30 days after the effective date of the
  440  change. The notice must include the name of the rating
  441  organization, the type or kind of insurance subject to a loss
  442  cost change, loss costs during the immediately preceding year
  443  for the type or kind of insurance subject to the loss cost
  444  change, and the average statewide percentage change in loss
  445  cost. Actuarial data with regard to changes to loss cost for
  446  risks not subject to paragraph (2)(a) or paragraph (2)(f) must
  447  be maintained by the rating organization for 2 years after the
  448  effective date of the change and are subject to examination by
  449  the office. The office may require the rating organization to
  450  incur the costs associated with an examination. Upon
  451  examination, the office, in accordance with generally accepted
  452  and reasonable actuarial techniques, shall consider the rate
  453  factors in paragraphs (2)(b)-(d) and the standards in paragraph
  454  (2)(e) to determine if the rate is excessive, inadequate, or
  455  unfairly discriminatory.
  456         Section 11. Section 627.1711, Florida Statutes, is created
  457  to read:
  458         627.1711 Alternative personal lines residential property
  459  insurance rates.—In each calendar year, the sum of personal
  460  lines residential property insurance policies issued or renewed
  461  by an insurer using rates established under s. 627.062(3)(d)
  462  plus personal lines residential property insurance policies
  463  issued or renewed using rates established under s. 627.171 may
  464  not exceed 5 percent of all personal lines residential insurance
  465  policies written or renewed by the insurer.
  466         Section 12. Subsection (1) of section 627.4102, Florida
  467  Statutes, is amended to read:
  468         627.4102 Informational filing of forms.—
  469         (1) Property and casualty forms, excluding except workers’
  470  compensation and personal lines forms, but including residential
  471  property insurance with rates established pursuant to s.
  472  627.062(3)(d), are exempt from the approval process required
  473  under s. 627.410 if:
  474         (a) The form has been electronically submitted to the
  475  office in an informational filing made through I-File 30 days
  476  before the delivery or issuance for delivery of the form within
  477  this state; and
  478         (b) At the time the informational filing is made, a
  479  notarized certification is attached to the filing that certifies
  480  that each form within the filing is in compliance with all
  481  applicable state laws and rules. The certification must be on
  482  the insurer’s letterhead and signed and dated by the insurer’s
  483  president, chief executive officer, general counsel, or an
  484  employee of the insurer responsible for the filing on behalf of
  485  the insurer. The certification must contain the following
  486  statement, and no other language: “I, ...(name)..., as
  487  ...(title)... of ...(insurer name)..., do hereby certify that
  488  this form filing has been thoroughly and diligently reviewed by
  489  me and by all appropriate company personnel, as well as company
  490  consultants, if applicable, and certify that each form contained
  491  within the filing is in compliance with all applicable Florida
  492  laws and rules. Should a form be found not to be in compliance
  493  with Florida laws and rules, I acknowledge that the Office of
  494  Insurance Regulation shall disapprove the form.”
  495         Section 13. Paragraph (b) of subsection (3) and subsection
  496  (4) of section 626.916, Florida Statutes, are amended, and
  497  subsection (5) is added to that section, to read:
  498         626.916 Eligibility for export.—
  499         (3)
  500         (b) Except for personal lines insurance covering a
  501  residential structure that has a dwelling replacement cost of
  502  $700,000 or more, paragraphs (1)(a)-(d) do not apply to classes
  503  of insurance which are subject to s. 627.062(3)(d)1. These
  504  classes may be exportable under the following conditions:
  505         1. The insurance must be placed only by or through a
  506  surplus lines agent licensed in this state;
  507         2. The insurer must be made eligible under s. 626.918; and
  508         3. The insured must sign a disclosure that substantially
  509  provides the following: “You are agreeing to place coverage in
  510  the surplus lines market. Superior coverage may be available in
  511  the admitted market and at a lesser cost. Persons insured by
  512  surplus lines carriers are not protected under the Florida
  513  Insurance Guaranty Act with respect to any right of recovery for
  514  the obligation of an insolvent unlicensed insurer.” If the
  515  notice is signed by the insured, the insured is presumed to have
  516  been informed and to know that other coverage may be available,
  517  and, with respect to the diligent-effort requirement under
  518  subsection (1), there is no liability on the part of, and no
  519  cause of action arises against, the retail agent presenting the
  520  form.
  521         (4) A reasonable per-policy fee, not to exceed $35, may be
  522  charged by the filing surplus lines agent for each policy
  523  certified for export. The per-policy fee must be itemized
  524  separately to the customer before purchase and must be
  525  enumerated in the policy.
  526         (5)A retail agent may charge a reasonable per-policy fee
  527  for placement of a surplus lines policy under this section. The
  528  per-policy fee must be itemized separately to the customer
  529  before purchase.
  530         Section 14. Paragraph (m) of subsection (1) of section
  531  626.9541, Florida Statutes, is amended to read:
  532         626.9541 Unfair methods of competition and unfair or
  533  deceptive acts or practices defined.—
  535  ACTS.—The following are defined as unfair methods of competition
  536  and unfair or deceptive acts or practices:
  537         (m) Permissible advertising and promotional gifts, and
  538  charitable contributions, and loss mitigation services or loss
  539  control items permitted.—
  540         1. The provisions of Paragraph (f), paragraph (g), or
  541  paragraph (h) do not prohibit a licensed insurer or its agent
  542  from:
  543         a. Giving to insureds, prospective insureds, or others any
  544  article of merchandise, goods, wares, store gift cards, gift
  545  certificates, event tickets, anti-fraud or loss mitigation
  546  services, or other items having a total value of $100 or less
  547  per insured or prospective insured in any calendar year.
  548         b. Making charitable contributions, as defined in s. 170(c)
  549  of the Internal Revenue Code, on behalf of insureds or
  550  prospective insureds, of up to $100 per insured or prospective
  551  insured in any calendar year.
  552         c.Giving to insureds, for free or at a discounted price,
  553  loss mitigation services or loss control items of value that
  554  relate to the risks covered under the policy.
  555         2. The provisions of Paragraph (f), paragraph (g), or
  556  paragraph (h) do not prohibit a title insurance agent or title
  557  insurance agency, as those terms are defined in s. 626.841, or a
  558  title insurer, as defined in s. 627.7711, from giving to
  559  insureds, prospective insureds, or others, for the purpose of
  560  advertising, any article of merchandise having a value of not
  561  more than $25. A person or entity governed by this subparagraph
  562  is not subject to subparagraph 1.
  563         Section 15. Section 627.0655, Florida Statutes, is amended
  564  to read:
  565         627.0655 Policyholder loss or expense-related premium
  566  discounts.—An insurer or person authorized to engage in the
  567  business of insurance in this state may include, in the premium
  568  charged an insured for any policy, contract, or certificate of
  569  insurance, an actuarially sound a discount based on the fact
  570  that another policy, contract, or certificate of any type has
  571  been purchased by the insured from:
  572         (1) The same insurer or insurer group, or another insurer
  573  under a joint marketing agreement;
  574         (2) The Citizens Property Insurance Corporation created
  575  under s. 627.351(6), if the same insurance agent is servicing
  576  both policies;, or
  577         (3) An insurer that has removed the policy from the
  578  Citizens Property Insurance Corporation or issued a policy
  579  pursuant to the clearinghouse program under s. 627.3518, if the
  580  same insurance agent is servicing both policies; or
  581         (4)An insurer, if the same insurance agent is servicing
  582  the policies.
  583         Section 16. Subsection (2) of section 627.426, Florida
  584  Statutes, is amended to read:
  585         627.426 Claims administration.—
  586         (2) A liability insurer shall not be permitted to deny
  587  coverage based on a particular coverage defense unless:
  588         (a) Within 30 days after the liability insurer knew or
  589  should have known of the coverage defense, written notice of
  590  reservation of rights to assert a coverage defense is given to
  591  the named insured by United States postal proof of mailing,
  592  registered or certified mail, or other mailing using the
  593  Intelligent Mail barcode or other similar tracking method used
  594  or approved by the United States Postal Service, sent to the
  595  last known address of the insured, or by hand delivery; and
  596         (b) Within 60 days of compliance with paragraph (a) or
  597  receipt of a summons and complaint naming the insured as a
  598  defendant, whichever is later, but in no case later than 30 days
  599  before trial, the insurer:
  600         1. Gives written notice to the named insured by United
  601  States postal proof of mailing, registered or certified mail, or
  602  other mailing using the Intelligent Mail barcode or other
  603  similar tracking method used or approved by the United States
  604  Postal Service, of its refusal to defend the insured;
  605         2. Obtains from the insured a nonwaiver agreement following
  606  full disclosure of the specific facts and policy provisions upon
  607  which the coverage defense is asserted and the duties,
  608  obligations, and liabilities of the insurer during and following
  609  the pendency of the subject litigation; or
  610         3. Retains independent counsel which is mutually agreeable
  611  to the parties. Reasonable fees for the counsel may be agreed
  612  upon between the parties or, if no agreement is reached, shall
  613  be set by the court.
  614         Section 17. Section 627.4555, Florida Statutes, is amended
  615  to read:
  616         627.4555 Secondary notice.—
  617         (1) Except as provided in this section, a contract for life
  618  insurance issued or issued for delivery in this state on or
  619  after October 1, 1997, covering a natural person 64 years of age
  620  or older, which has been in force for at least 1 year, may not
  621  be lapsed for nonpayment of premium unless, after expiration of
  622  the grace period, and at least 21 days before the effective date
  623  of any such lapse, the insurer has mailed a notification of the
  624  impending lapse in coverage to the policyowner and to a
  625  specified secondary addressee if such addressee has been
  626  designated in writing by name and address by the policyowner. An
  627  insurer issuing a life insurance contract on or after October 1,
  628  1997, shall notify the applicant of the right to designate a
  629  secondary addressee at the time of application for the policy,
  630  on a form provided by the insurer, and at any time the policy is
  631  in force, by submitting a written notice to the insurer
  632  containing the name and address of the secondary addressee. For
  633  purposes of any life insurance policy that provides a grace
  634  period of more than 51 days for nonpayment of premiums, the
  635  notice of impending lapse in coverage required by this section
  636  must be mailed to the policyowner and the secondary addressee at
  637  least 21 days before the expiration of the grace period provided
  638  in the policy. This section does not apply to any life insurance
  639  contract under which premiums are payable monthly or more
  640  frequently and are regularly collected by a licensed agent or
  641  are paid by credit card or any preauthorized check processing or
  642  automatic debit service of a financial institution.
  643         (2)If the policyowner has a life agent of record or any
  644  agent of record, the insurer must also notify the agent of the
  645  impending lapse in coverage or mail or send electronically a
  646  copy of the notification of the impending lapse in coverage
  647  under subsection (1) to the agent at least 21 days before the
  648  effective date of any such lapse. Receipt of such notice does
  649  not make the agent responsible for any lapse in coverage. An
  650  insurer is not required to notify the agent under this
  651  subsection if any of the following applies:
  652         (a)The insurer maintains an online system that allows an
  653  agent to independently determine if a policy has lapsed.
  654         (b)The insurer maintains a procedure that allows an agent
  655  to independently determine whether the notice of lapse has been
  656  sent to the insured.
  657         (c)The insurer has no record of the current agent of
  658  record.
  659         (d)The agent is employed by the insurer or an affiliate of
  660  the insurer.
  661         Section 18. Subsection (2) of section 627.7015, Florida
  662  Statutes, is amended to read:
  663         627.7015 Alternative procedure for resolution of disputed
  664  property insurance claims.—
  665         (2) At the time of issuance and renewal of a policy or at
  666  the time a first-party claim within the scope of this section is
  667  filed by the policyholder, the insurer shall notify the
  668  policyholder of its right to participate in the mediation
  669  program under this section. The department shall prepare a
  670  consumer information pamphlet for distribution to persons
  671  participating in mediation.
  672         Section 19. Subsection (7) of section 627.7295, Florida
  673  Statutes, is amended to read:
  674         627.7295 Motor vehicle insurance contracts.—
  675         (7) A policy of private passenger motor vehicle insurance
  676  or a binder for such a policy may be initially issued in this
  677  state only if, before the effective date of such binder or
  678  policy, the insurer or agent has collected from the insured an
  679  amount equal to at least 1 month’s 2 months’ premium. An
  680  insurer, agent, or premium finance company may not, directly or
  681  indirectly, take any action resulting in the insured having paid
  682  from the insured’s own funds an amount less than the 1 month’s 2
  683  months’ premium required by this subsection. This subsection
  684  applies without regard to whether the premium is financed by a
  685  premium finance company or is paid pursuant to a periodic
  686  payment plan of an insurer or an insurance agent. This
  687  subsection does not apply if an insured or member of the
  688  insured’s family is renewing or replacing a policy or a binder
  689  for such policy written by the same insurer or a member of the
  690  same insurer group. This subsection does not apply to an insurer
  691  that issues private passenger motor vehicle coverage primarily
  692  to active duty or former military personnel or their dependents.
  693  This subsection does not apply if all policy payments are paid
  694  pursuant to a payroll deduction plan, an automatic electronic
  695  funds transfer payment plan from the policyholder, or a
  696  recurring credit card or debit card agreement with the insurer.
  697  This subsection and subsection (4) do not apply if all policy
  698  payments to an insurer are paid pursuant to an automatic
  699  electronic funds transfer payment plan from an agent, a managing
  700  general agent, or a premium finance company and if the policy
  701  includes, at a minimum, personal injury protection pursuant to
  702  ss. 627.730-627.7405; motor vehicle property damage liability
  703  pursuant to s. 627.7275; and bodily injury liability in at least
  704  the amount of $10,000 because of bodily injury to, or death of,
  705  one person in any one accident and in the amount of $20,000
  706  because of bodily injury to, or death of, two or more persons in
  707  any one accident. This subsection and subsection (4) do not
  708  apply if an insured has had a policy in effect for at least 6
  709  months, the insured’s agent is terminated by the insurer that
  710  issued the policy, and the insured obtains coverage on the
  711  policy’s renewal date with a new company through the terminated
  712  agent.
  713         Section 20. Paragraph (e) of subsection (3) of section
  714  921.0022, Florida Statutes, is amended to read:
  715         921.0022 Criminal Punishment Code; offense severity ranking
  716  chart.—
  718         (e) LEVEL 5
  720  FloridaStatute             FelonyDegree        Description        
  721  316.027(2)(a)                  3rd     Accidents involving personal injuries other than serious bodily injury, failure to stop; leaving scene.
  722  316.1935(4)(a)                 2nd     Aggravated fleeing or eluding.
  723  316.80(2)                      2nd     Unlawful conveyance of fuel; obtaining fuel fraudulently.
  724  322.34(6)                      3rd     Careless operation of motor vehicle with suspended license, resulting in death or serious bodily injury.
  725  327.30(5)                      3rd     Vessel accidents involving personal injury; leaving scene.
  726  379.365(2)(c)1.                3rd     Violation of rules relating to: willful molestation of stone crab traps, lines, or buoys; illegal bartering, trading, or sale, conspiring or aiding in such barter, trade, or sale, or supplying, agreeing to supply, aiding in supplying, or giving away stone crab trap tags or certificates; making, altering, forging, counterfeiting, or reproducing stone crab trap tags; possession of forged, counterfeit, or imitation stone crab trap tags; and engaging in the commercial harvest of stone crabs while license is suspended or revoked.
  727  379.367(4)                     3rd     Willful molestation of a commercial harvester’s spiny lobster trap, line, or buoy.
  728  379.407(5)(b)3.                3rd     Possession of 100 or more undersized spiny lobsters.
  729  381.0041(11)(b)                3rd     Donate blood, plasma, or organs knowing HIV positive.
  730  440.10(1)(g)                   2nd     Failure to obtain workers’ compensation coverage.
  731  440.105(5)                     2nd     Unlawful solicitation for the purpose of making workers’ compensation claims.
  732  440.381(2)                   3rd 2nd   Submission of false, misleading, or incomplete information with the purpose of avoiding or reducing workers’ compensation premiums.
  733  624.401(4)(b)2.                2nd     Transacting insurance without a certificate or authority; premium collected $20,000 or more but less than $100,000.
  734  626.902(1)(c)                  2nd     Representing an unauthorized insurer; repeat offender.
  735  790.01(2)                      3rd     Carrying a concealed firearm.
  736  790.162                        2nd     Threat to throw or discharge destructive device.
  737  790.163(1)                     2nd     False report of bomb, explosive, weapon of mass destruction, or use of firearms in violent manner.
  738  790.221(1)                     2nd     Possession of short-barreled shotgun or machine gun.
  739  790.23                         2nd     Felons in possession of firearms, ammunition, or electronic weapons or devices.
  740  796.05(1)                      2nd     Live on earnings of a prostitute; 1st offense.
  741  800.04(6)(c)                   3rd     Lewd or lascivious conduct; offender less than 18 years of age.
  742  800.04(7)(b)                   2nd     Lewd or lascivious exhibition; offender 18 years of age or older.
  743  806.111(1)                     3rd     Possess, manufacture, or dispense fire bomb with intent to damage any structure or property.
  744  812.0145(2)(b)                 2nd     Theft from person 65 years of age or older; $10,000 or more but less than $50,000.
  745  812.015(8)                     3rd     Retail theft; property stolen is valued at $300 or more and one or more specified acts.
  746  812.019(1)                     2nd     Stolen property; dealing in or trafficking in.
  747  812.131(2)(b)                  3rd     Robbery by sudden snatching.
  748  812.16(2)                      3rd     Owning, operating, or conducting a chop shop.
  749  817.034(4)(a)2.                2nd     Communications fraud, value $20,000 to $50,000.
  750  817.234(11)(b)                 2nd     Insurance fraud; property value $20,000 or more but less than $100,000.
  751  817.2341(1),(2)(a) & (3)(a)    3rd     Filing false financial statements, making false entries of material fact or false statements regarding property values relating to the solvency of an insuring entity.
  752  817.568(2)(b)                  2nd     Fraudulent use of personal identification information; value of benefit, services received, payment avoided, or amount of injury or fraud, $5,000 or more or use of personal identification information of 10 or more persons.
  753  817.611(2)(a)                  2nd     Traffic in or possess 5 to 14 counterfeit credit cards or related documents.
  754  817.625(2)(b)                  2nd     Second or subsequent fraudulent use of scanning device, skimming device, or reencoder.
  755  825.1025(4)                    3rd     Lewd or lascivious exhibition in the presence of an elderly person or disabled adult.
  756  827.071(4)                     2nd     Possess with intent to promote any photographic material, motion picture, etc., which includes sexual conduct by a child.
  757  827.071(5)                     3rd     Possess, control, or intentionally view any photographic material, motion picture, etc., which includes sexual conduct by a child.
  758  828.12(2)                      3rd     Tortures any animal with intent to inflict intense pain, serious physical injury, or death.
  759  839.13(2)(b)                   2nd     Falsifying records of an individual in the care and custody of a state agency involving great bodily harm or death.
  760  843.01                         3rd     Resist officer with violence to person; resist arrest with violence.
  761  847.0135(5)(b)                 2nd     Lewd or lascivious exhibition using computer; offender 18 years or older.
  762  847.0137(2) & (3)              3rd     Transmission of pornography by electronic device or equipment.
  763  847.0138(2) & (3)              3rd     Transmission of material harmful to minors to a minor by electronic device or equipment.
  764  874.05(1)(b)                   2nd     Encouraging or recruiting another to join a criminal gang; second or subsequent offense.
  765  874.05(2)(a)                   2nd     Encouraging or recruiting person under 13 years of age to join a criminal gang.
  766  893.13(1)(a)1.                 2nd     Sell, manufacture, or deliver cocaine (or other s. 893.03(1)(a), (1)(b), (1)(d), (2)(a), (2)(b), or (2)(c)5. drugs).
  767  893.13(1)(c)2.                 2nd     Sell, manufacture, or deliver cannabis (or other s. 893.03(1)(c), (2)(c)1., (2)(c)2., (2)(c)3., (2)(c)6., (2)(c)7., (2)(c)8., (2)(c)9., (2)(c)10., (3), or (4) drugs) within 1,000 feet of a child care facility, school, or state, county, or municipal park or publicly owned recreational facility or community center.
  768  893.13(1)(d)1.                 1st     Sell, manufacture, or deliver cocaine (or other s. 893.03(1)(a), (1)(b), (1)(d), (2)(a), (2)(b), or (2)(c)5. drugs) within 1,000 feet of university.
  769  893.13(1)(e)2.                 2nd     Sell, manufacture, or deliver cannabis or other drug prohibited under s. 893.03(1)(c), (2)(c)1., (2)(c)2., (2)(c)3., (2)(c)6., (2)(c)7., (2)(c)8., (2)(c)9., (2)(c)10., (3), or (4) within 1,000 feet of property used for religious services or a specified business site.
  770  893.13(1)(f)1.                 1st     Sell, manufacture, or deliver cocaine (or other s. 893.03(1)(a), (1)(b), (1)(d), or (2)(a), (2)(b), or (2)(c)5. drugs) within 1,000 feet of public housing facility.
  771  893.13(4)(b)                   2nd     Use or hire of minor; deliver to minor other controlled substance.
  772  893.1351(1)                    3rd     Ownership, lease, or rental for trafficking in or manufacturing of controlled substance.
  773         Section 21. Except as otherwise expressly provided in this
  774  act and except for this section, which shall take effect upon
  775  this act becoming a law, this act shall take effect July 1,
  776  2019.