Florida Senate - 2020 SB 1492
By Senator Wright
14-00928B-20 20201492__
1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 501.0051, F.S.; prohibiting consumer reporting
4 agencies from charging to reissue or provide a new
5 unique personal identifier to a consumer for the
6 removal of a security freeze; amending s. 624.307,
7 F.S.; revising a requirement for entities licensed or
8 authorized by the Department of Financial Services or
9 the Office of Insurance Regulation to respond to the
10 department’s Division of Consumer Services regarding
11 consumer complaints; revising administrative penalties
12 the division may impose for failure to comply;
13 amending s. 626.112, F.S.; prohibiting unlicensed
14 activity by an adjusting firm; providing an exemption;
15 providing an exemption from licensure for branch firms
16 that meet certain criteria; providing an
17 administrative penalty for failing to apply for
18 certain licensure; providing a criminal penalty for
19 aiding or abetting unlicensed activity; deleting an
20 obsolete provision; amending s. 626.602, F.S.;
21 authorizing the department to disapprove the use of
22 insurance agency names containing the words “Medicare”
23 or “Medicaid”; providing an exception for certain
24 insurance agencies; amending s. 626.621, F.S.; adding
25 grounds on which the department may take certain
26 actions against a license, appointment, or application
27 of certain insurance representatives; amending ss.
28 626.782 and 626.783, F.S.; revising the definitions of
29 the terms “industrial class insurer” and “ordinary
30 combination class insurer,” respectively, to conform
31 to changes made by the act; repealing s. 626.796,
32 F.S., relating to the representation of multiple
33 insurers in the same industrial debit territory;
34 amending s. 626.8443, F.S.; increasing the maximum
35 period of suspension of a title insurance agent’s or
36 agency’s license; amending s. 626.854, F.S.; revising
37 the timeframes in which an insured or claimant may
38 cancel a public adjuster’s contract to adjust a claim
39 without penalty or obligation; amending s. 626.916,
40 F.S.; revising the classes of insurance subject to a
41 disclosure requirement before being eligible for
42 export under the Surplus Lines Law; amending s.
43 626.9541, F.S.; adding certain acts or practices to
44 the definition of sliding; amending s. 626.9741, F.S.;
45 requiring an insurer to include certain additional
46 information when providing an applicant or insured
47 with certain credit report or score information;
48 amending ss. 626.9957 and 627.062, F.S.; conforming
49 cross-references; amending s. 627.421, F.S.; requiring
50 personal lines residential property insurers to
51 annually deliver a certain notification to
52 policyholders within a specified timeframe; amending
53 s. 627.502, F.S.; prohibiting life insurers from
54 writing new policies of industrial life insurance
55 beginning on a certain date; amending s. 627.70131,
56 F.S.; providing that communication made to or by an
57 insurer’s representative, rather than to or by an
58 insurer’s agent, constitutes communication to or by
59 the insurer; requiring an insurer-assigned licensed
60 adjuster to provide the policyholder with certain
61 information in certain investigations; requiring that
62 certain adjuster reports be provided to policyholders
63 within a certain timeframe; specifying requirements
64 for insurers in notifying policyholders for certain
65 changes in assigned adjusters; requiring an insurer to
66 establish a process to provide the agent of record
67 access to claim status information for a certain
68 purpose; defining the term “agent of record”;
69 requiring insurers to include specified notices when
70 providing preliminary or partial damage estimates or
71 claim payments; specifying the timeframe in which an
72 insurer must pay or deny property insurance claims
73 under certain circumstances; providing applicability;
74 conforming provisions to changes made by the act;
75 creating s. 627.7031, F.S.; prohibiting foreign venue
76 clauses in property insurance policies; providing
77 applicability; amending s. 627.7142, F.S.; revising
78 information contained in the Homeowner Claims Bill of
79 Rights; conforming provisions to changes made by the
80 act; amending s. 631.57, F.S.; deleting a deductible
81 on the Florida Insurance Guaranty Association,
82 Incorporated’s obligation as to certain covered
83 claims; amending s. 648.30, F.S.; prohibiting the
84 aiding or abetting of unlicensed activity of a bail
85 bond agent or temporary bail bond agent; amending ss.
86 717.124, 717.12404, 717.1315, and 717.1322, F.S.;
87 conforming provisions to changes made by the act;
88 amending s. 717.135, F.S.; replacing provisions
89 relating to powers of attorney to recover unclaimed
90 property with provisions relating to uniform forms for
91 unclaimed property recovery agreements and purchase
92 agreements; requiring the department to adopt the
93 uniform forms by rule; specifying required information
94 and disclosures in the forms; requiring that, for the
95 purchase agreement form, proof the seller received
96 payment be filed with the department along with the
97 claim; requiring registered claimant’s representatives
98 to use the forms as the exclusive means of engaging
99 with a claimant or seller to file claims and
100 prohibiting them from using or distributing other
101 agreements; specifying a limitation on fees and costs
102 owed or paid; prohibiting certain language in the
103 forms; authorizing the department to pay additional
104 accounts owned by the claimant under certain
105 circumstances; providing construction; repealing s.
106 717.1351, F.S., relating to the acquisition of
107 unclaimed property; providing an effective date.
108
109 Be It Enacted by the Legislature of the State of Florida:
110
111 Section 1. Paragraph (b) of subsection (9) of section
112 501.0051, Florida Statutes, is amended to read:
113 501.0051 Protected consumer report security freeze.—
114 (9)
115 (b) A consumer reporting agency may not charge to a
116 reasonable fee, not to exceed $10, if the representative fails
117 to retain the original unique personal identifier provided by
118 the consumer reporting agency and the agency must reissue the
119 unique personal identifier or provide a new unique personal
120 identifier to the consumer representative.
121 Section 2. Paragraph (b) of subsection (10) of section
122 624.307, Florida Statutes, is amended to read:
123 624.307 General powers; duties.—
124 (10)
125 (b) Any entity person licensed or issued a certificate of
126 authority by the department or the office shall respond, in
127 writing, to the division within 20 days after receipt of a
128 written request for documents and information from the division
129 concerning a consumer complaint. The response must address the
130 issues and allegations raised in the complaint and include any
131 requested documents. The division may impose an administrative
132 penalty for failure to comply with this paragraph of up to
133 $2,500 per violation upon any entity licensed by the department
134 or the office and $250 for the first violation, $500 for the
135 second violation, and up to $1,000 for the third or subsequent
136 violation upon any individual licensed by the department or the
137 office.
138 Section 3. Present subsection (9) of section 626.112,
139 Florida Statutes, is redesignated as subsection (10), a new
140 subsection (9) is added to that section, and paragraph (d) of
141 subsection (7) and present subsection (9) of that section are
142 amended, to read:
143 626.112 License and appointment required; agents, customer
144 representatives, adjusters, insurance agencies, service
145 representatives, managing general agents, insurance adjusting
146 firms.—
147 (7)
148 (d) Effective October 1, 2015, the department must
149 automatically convert the registration of an approved registered
150 insurance agency to an insurance agency license.
151 (9)(a) An individual, firm, partnership, corporation,
152 association, or other entity may not act in its own name or
153 under a trade name, directly or indirectly, as an adjusting firm
154 unless it complies with s. 626.8696 with respect to possessing
155 an adjusting firm license for each place of business at which it
156 engages in an activity that may be performed only by a licensed
157 insurance adjuster. However, an adjusting firm that is owned and
158 operated by a single licensed adjuster conducting business in
159 his or her individual name and not employing or otherwise using
160 the services of or appointing other licensees is exempt from the
161 adjusting firm licensing requirements of this subsection.
162 (b) A branch place of business that is established by a
163 licensed adjusting firm is considered a branch firm and is not
164 required to be licensed if:
165 1. It transacts business under the same name and federal
166 tax identification number as the licensed adjusting firm;
167 2. It has designated with the department a primary adjuster
168 operating the location as required by s. 626.8695; and
169 3. The address and telephone number of the branch location
170 have been submitted to the department for inclusion in the
171 licensing record of the licensed adjusting firm within 30 days
172 after insurance transactions begin at the branch location.
173 (c) If an adjusting firm is required to be licensed, but
174 fails to file an application for licensure in accordance with
175 this section, the department shall impose on the firm an
176 administrative penalty of up to $10,000.
177 (10)(9) Any person who knowingly transacts insurance or
178 otherwise engages in insurance activities in this state without
179 a license in violation of this section or who knowingly aids or
180 abets an unlicensed person in transacting insurance or otherwise
181 engaging in insurance activities in this state without a license
182 commits a felony of the third degree, punishable as provided in
183 s. 775.082, s. 775.083, or s. 775.084.
184 Section 4. Subsection (4) is added to section 626.602,
185 Florida Statutes, to read:
186 626.602 Insurance agency names; disapproval.—The department
187 may disapprove the use of any true or fictitious name, other
188 than the bona fide natural name of an individual, by any
189 insurance agency on any of the following grounds:
190 (4) The name contains the word “Medicare” or “Medicaid.” An
191 insurance agency whose name contains the word “Medicare” or
192 “Medicaid” but which is licensed as of July 1, 2020, may
193 continue to use that name as long as the agency’s license is
194 valid. If the agency’s license expires or is suspended or
195 revoked, the agency may not be relicensed using that name.
196 Section 5. Subsections (16) and (17) are added to section
197 626.621, Florida Statutes, to read:
198 626.621 Grounds for discretionary refusal, suspension, or
199 revocation of agent’s, adjuster’s, customer representative’s,
200 service representative’s, or managing general agent’s license or
201 appointment.—The department may, in its discretion, deny an
202 application for, suspend, revoke, or refuse to renew or continue
203 the license or appointment of any applicant, agent, adjuster,
204 customer representative, service representative, or managing
205 general agent, and it may suspend or revoke the eligibility to
206 hold a license or appointment of any such person, if it finds
207 that as to the applicant, licensee, or appointee any one or more
208 of the following applicable grounds exist under circumstances
209 for which such denial, suspension, revocation, or refusal is not
210 mandatory under s. 626.611:
211 (16) Allowing the personal financial or medical information
212 of a consumer or customer to be made available or accessible to
213 the general public, regardless of the format in which the record
214 is stored.
215 (17) Initiating in-person or telephone solicitation after 9
216 p.m. or before 8 a.m. local time of the prospective customer
217 unless requested by the prospective customer.
218 Section 6. Section 626.782, Florida Statutes, is amended to
219 read:
220 626.782 “Industrial class insurer” defined.—An “industrial
221 class insurer” is an insurer collecting premiums on policies of
222 writing industrial life insurance, as defined in s. 627.502,
223 written before July 1, 2020, and as to such insurance, operates
224 under a system of collecting a debit by its agent.
225 Section 7. Section 626.783, Florida Statutes, is amended to
226 read:
227 626.783 “Ordinary-combination class insurer” defined.—An
228 “ordinary-combination class insurer” is an insurer writing both
229 ordinary class insurance and collecting premiums on existing
230 industrial life class insurance under s. 626.782.
231 Section 8. Section 626.796, Florida Statutes, is repealed.
232 Section 9. Subsection (1) of section 626.8443, Florida
233 Statutes, is amended to read:
234 626.8443 Duration of suspension or revocation.—
235 (1) The department shall, in its order suspending a title
236 insurance agent’s or agency’s license or appointment or in its
237 order suspending the eligibility of a person to hold or apply
238 for such license or appointment, specify the period during which
239 the suspension is to be in effect, but such period shall not
240 exceed 2 years 1 year. The license, or appointment, or
241 eligibility shall remain suspended during the period so
242 specified, subject, however, to any rescission or modification
243 of the order by the department, or modification or reversal
244 thereof by the court, prior to expiration of the suspension
245 period. A license, appointment, or eligibility that which has
246 been suspended may not be reinstated except upon request for
247 such reinstatement, but the department shall not grant such
248 reinstatement if it finds that the circumstance or circumstances
249 for which the license, appointment, and eligibility was
250 suspended still exist or are likely to recur.
251 Section 10. Subsection (6) of section 626.854, Florida
252 Statutes, is amended to read:
253 626.854 “Public adjuster” defined; prohibitions.—The
254 Legislature finds that it is necessary for the protection of the
255 public to regulate public insurance adjusters and to prevent the
256 unauthorized practice of law.
257 (6) Except during a state of emergency declared by the
258 Governor and except during the 1-year period after the date of
259 loss, an insured or claimant may cancel a public adjuster’s
260 contract to adjust a claim without penalty or obligation within
261 7 calendar 3 business days after the date on which the contract
262 is executed or within 7 calendar 3 business days after the date
263 on which the insured or claimant has notified the insurer of the
264 claim, whichever is later. During a state of emergency declared
265 by the Governor or during the 1-year period after the date of
266 loss, an insured or claimant may cancel a public adjuster’s
267 contract to adjust a claim without penalty or obligation within
268 30 calendar days after the date on which the contract is
269 executed or within 30 calendar days after the date on which the
270 insured or claimant has notified the insurer of the claim,
271 whichever is later. The public adjuster’s contract must disclose
272 to the insured or claimant his or her right to cancel the
273 contract and advise the insured or claimant that notice of
274 cancellation must be submitted in writing and sent by certified
275 mail, return receipt requested, or other form of mailing that
276 provides proof thereof, to the public adjuster at the address
277 specified in the contract; provided, during any state of
278 emergency as declared by the Governor and for 1 year after the
279 date of loss, the insured or claimant has 5 business days after
280 the date on which the contract is executed to cancel a public
281 adjuster’s contract.
282 Section 11. Subsection (3) of section 626.916, Florida
283 Statutes, is amended, and paragraph (f) is added to subsection
284 (1) of that section, to read:
285 626.916 Eligibility for export.—
286 (1) No insurance coverage shall be eligible for export
287 unless it meets all of the following conditions:
288 (f) The insured has signed a disclosure in substantially
289 the following form: “You are agreeing to place coverage in the
290 surplus lines market. Superior coverage may be available in the
291 admitted market and at a lesser cost. Persons insured by surplus
292 lines carriers are not protected under the Florida Insurance
293 Guaranty Act with respect to any right of recovery for the
294 obligation of an insolvent unlicensed insurer.”
295 (3)(a) Subsection (1) does not apply to wet marine and
296 transportation or aviation risks that which are subject to s.
297 626.917.
298 (b) Paragraphs (1)(a)-(d) do not apply to classes of
299 insurance which are subject to s. 627.062(3)(d)1. These classes
300 may be exportable under the following conditions:
301 1. The insurance must be placed only by or through a
302 surplus lines agent licensed in this state;
303 2. The insurer must be made eligible under s. 626.918; and
304 3. The insured has signed must sign a disclosure as
305 required under paragraph (1)(f) that substantially provides the
306 following: “You are agreeing to place coverage in the surplus
307 lines market. Superior coverage may be available in the admitted
308 market and at a lesser cost. Persons insured by surplus lines
309 carriers are not protected under the Florida Insurance Guaranty
310 Act with respect to any right of recovery for the obligation of
311 an insolvent unlicensed insurer.” If the disclosure notice is
312 signed by the insured, the insured is presumed to have been
313 informed and to know that other coverage may be available, and,
314 with respect to the diligent-effort requirement under subsection
315 (1), there is no liability on the part of, and no cause of
316 action arises against, the retail agent presenting the form.
317 Section 12. Paragraph (z) of subsection (1) of section
318 626.9541, Florida Statutes, is amended to read:
319 626.9541 Unfair methods of competition and unfair or
320 deceptive acts or practices defined.—
321 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
322 ACTS.—The following are defined as unfair methods of competition
323 and unfair or deceptive acts or practices:
324 (z) Sliding.—Sliding is the act or practice of any of the
325 following:
326 1. Representing to the applicant that a specific ancillary
327 coverage or product is required by law in conjunction with the
328 purchase of insurance when such coverage or product is not
329 required.;
330 2. Representing to the applicant that a specific ancillary
331 coverage or product is included in the policy applied for
332 without an additional charge when such charge is required.; or
333 3. Charging an applicant for a specific ancillary coverage
334 or product, in addition to the cost of the insurance coverage
335 applied for, without the informed consent of the applicant.
336 4. Initiating, effectuating, binding, or otherwise issuing
337 a policy of insurance without the prior informed consent of the
338 owner of the property to be insured.
339 5. Mailing, transmitting, or otherwise submitting by any
340 means an invoice for premium payment to a mortgagee or escrow
341 agent, for the purpose of effectuating an insurance policy,
342 without the prior informed consent of the owner of the property
343 to be insured.
344 Section 13. Subsection (3) of section 626.9741, Florida
345 Statutes, is amended to read:
346 626.9741 Use of credit reports and credit scores by
347 insurers.—
348 (3) An insurer must inform an applicant or insured, in the
349 same medium as the application is taken, that a credit report or
350 score is being requested for underwriting or rating purposes.
351 The notification to the consumer must include the following
352 language: “The Department of Financial Services offers free
353 financial literacy programs to assist you in understanding how
354 credit scores are calculated, what factors are considered, and
355 how credit works. The Department’s toll-free Insurance Consumer
356 Helpline is available to assist you with insurance-related
357 questions and inquiries. To learn more about the free financial
358 literacy programs or for help with insurance, call 1-877-693
359 5236 or visit www.MyFloridaCFO.com.” An insurer that makes an
360 adverse decision based, in whole or in part, upon a credit
361 report must provide at no charge, a copy of the credit report to
362 the applicant or insured or provide the applicant or insured
363 with the name, address, and telephone number of the consumer
364 reporting agency from which the insured or applicant may obtain
365 the credit report. The insurer must provide notification to the
366 consumer explaining the reasons for the adverse decision. The
367 reasons must be provided in sufficiently clear and specific
368 language so that a person can identify the basis for the
369 insurer’s adverse decision. Such notification shall include a
370 description of the four primary reasons, or such fewer number as
371 existed, which were the primary influences of the adverse
372 decision. The use of generalized terms such as “poor credit
373 history,” “poor credit rating,” or “poor insurance score” does
374 not meet the explanation requirements of this subsection. A
375 credit score may not be used in underwriting or rating insurance
376 unless the scoring process produces information in sufficient
377 detail to permit compliance with the requirements of this
378 subsection. It shall not be deemed an adverse decision if, due
379 to the insured’s credit report or credit score, the insured
380 continues to receive a less favorable rate or placement in a
381 less favorable tier or company at the time of renewal except for
382 renewals or reunderwriting required by this section.
383 Section 14. Subsection (1) of section 626.9957, Florida
384 Statutes, is amended to read:
385 626.9957 Conduct prohibited; denial, revocation, or
386 suspension of registration.—
387 (1) As provided in s. 626.112, only a person licensed as an
388 insurance agent or customer representative may engage in the
389 solicitation of insurance. A person who engages in the
390 solicitation of insurance as described in s. 626.112(1) without
391 such license is subject to the penalties provided under s.
392 626.112(10) s. 626.112(9).
393 Section 15. Subsection (10) of section 627.062, Florida
394 Statutes, is amended to read:
395 627.062 Rate standards.—
396 (10) Any interest paid pursuant to s. 627.70131(7) s.
397 627.70131(5) may not be included in the insurer’s rate base and
398 may not be used to justify a rate or rate change.
399 Section 16. Subsection (6) is added to section 627.421,
400 Florida Statutes, to read:
401 627.421 Delivery of policy.—
402 (6) For personal lines residential property insurance
403 policies, the insurer shall, between March 3 and April 2 of each
404 year, inclusive, deliver a notification to all policyholders via
405 mail or e-mail which includes the Homeowner Claims Bill of
406 Rights and outlines the hurricane coverage included in the
407 policy, including the hurricane deductible and the coverages and
408 exclusions.
409 Section 17. Section 627.502, Florida Statutes, is amended
410 to read:
411 627.502 “Industrial life insurance” defined; reporting;
412 prohibition on new policies after a certain date.—
413 (1) For the purposes of this code, “industrial life
414 insurance” is that form of life insurance written under policies
415 under which premiums are payable monthly or more often, bearing
416 the words “industrial policy” or “weekly premium policy” or
417 words of similar import imprinted upon the policies as part of
418 the descriptive matter, and issued by an insurer that which, as
419 to such industrial life insurance, is operating under a system
420 of collecting a debit by its agent.
421 (2) Every life insurer servicing existing transacting
422 industrial life insurance shall report to the office all annual
423 statement data regarding the exhibit of life insurance,
424 including relevant information for industrial life insurance.
425 (3) Beginning July 1, 2020, a life insurer may not write a
426 new policy of industrial life insurance.
427 Section 18. Section 627.70131, Florida Statutes, is amended
428 to read:
429 627.70131 Insurer’s duty to acknowledge communications
430 regarding claims; investigation.—
431 (1)(a) Upon an insurer’s receiving a communication with
432 respect to a claim, the insurer shall, within 14 calendar days,
433 review and acknowledge receipt of such communication unless
434 payment is made within that period of time or unless the failure
435 to acknowledge is caused by factors beyond the control of the
436 insurer which reasonably prevent such acknowledgment. If the
437 acknowledgment is not in writing, a notification indicating
438 acknowledgment shall be made in the insurer’s claim file and
439 dated. A communication made to or by a representative an agent
440 of an insurer with respect to a claim shall constitute
441 communication to or by the insurer.
442 (b) As used in this subsection, the term “representative”
443 “agent” means any person to whom an insurer has granted
444 authority or responsibility to receive or make such
445 communications with respect to claims on behalf of the insurer.
446 (c) This subsection shall not apply to claimants
447 represented by counsel beyond those communications necessary to
448 provide forms and instructions.
449 (2) Such acknowledgment shall be responsive to the
450 communication. If the communication constitutes a notification
451 of a claim, unless the acknowledgment reasonably advises the
452 claimant that the claim appears not to be covered by the
453 insurer, the acknowledgment shall provide necessary claim forms,
454 and instructions, including an appropriate telephone number.
455 (3)(a) Unless otherwise provided by the policy of insurance
456 or by law, within 10 business working days after an insurer
457 receives proof of loss statements, the insurer shall begin such
458 investigation as is reasonably necessary unless the failure to
459 begin such investigation is caused by factors beyond the control
460 of the insurer which reasonably prevent the commencement of such
461 investigation.
462 (b) If such investigation involves a physical inspection of
463 the property, the licensed adjuster assigned by the insurer must
464 provide the policyholder with his or her name, license number,
465 and contact information.
466 (c) An unedited copy of any report received by the insurer,
467 which was produced by the licensed adjuster based upon the
468 physical inspection of the property, must be provided to the
469 policyholder electronically or as a physical copy within 7 days
470 after receipt by the insurer.
471 (d) If an insurer assigns the claim to a different licensed
472 adjuster after receipt of a report from the adjuster who
473 performed the physical inspection, the insurer must, within 7
474 days after changing the licensed insurance adjuster assigned to
475 a claim, provide the name, license number, and contact
476 information of the new adjuster to the policyholder. The
477 notification may be sent electronically or via mail. If the
478 notification is a physical letter, it must be postmarked within
479 7 days after the change in adjuster. Any subsequent change to
480 the assigned adjuster must be handled in accordance with this
481 paragraph.
482 (4) An insurer shall establish a process by which the agent
483 of record for an insurance policy is provided access to
484 information provided to the policyholder under subsection (3) in
485 order to assist the agent of record in answering the
486 policyholder’s questions regarding claims. As used in this
487 subsection, the term “agent of record” means the agent named on
488 the declarations page of the insurance policy.
489 (5) For purposes of this section, the term “insurer” means
490 any residential property insurer.
491 (6)(a) When providing a preliminary or partial estimate of
492 damage regarding a claim, an insurer shall include with the
493 estimate the following statement printed in at least 12-point
494 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
495 EVALUATION OF THE LOSS TO YOUR INSURED PROPERTY AND MAY BE
496 REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU HAVE
497 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
498 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
499 (b) When providing a preliminary or partial payment on a
500 claim, an insurer shall include with the payment the following
501 statement printed in at least 12-point bold, uppercase type: WE
502 ARE CONTINUING TO EVALUATE YOUR CLAIM INVOLVING YOUR INSURED
503 PROPERTY AND MAY ISSUE ADDITIONAL PAYMENTS. IF YOU HAVE
504 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
505 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
506 (7)(5)(a) Within 90 calendar days after an insurer receives
507 notice of an initial, reopened, or supplemental property
508 insurance claim from a policyholder, the insurer shall pay or
509 deny such claim or a portion of the claim unless the failure to
510 pay is caused by factors beyond the control of the insurer which
511 reasonably prevent such payment. Any payment of an initial or
512 supplemental claim or portion of such claim made 90 calendar
513 days after the insurer receives notice of the claim, or made
514 more than 15 days after there are no longer factors beyond the
515 control of the insurer which reasonably prevented such payment,
516 whichever is later, bears interest at the rate set forth in s.
517 55.03. Interest begins to accrue from the date the insurer
518 receives notice of the claim. The provisions of this subsection
519 may not be waived, voided, or nullified by the terms of the
520 insurance policy. If there is a right to prejudgment interest,
521 the insured shall select whether to receive prejudgment interest
522 or interest under this subsection. Interest is payable when the
523 claim or portion of the claim is paid. Failure to comply with
524 this subsection constitutes a violation of this code. However,
525 failure to comply with this subsection does not form the sole
526 basis for a private cause of action.
527 (b) Notwithstanding subsection (5) (4), for purposes of
528 this subsection, the term “claim” means any of the following:
529 1. A claim under an insurance policy providing residential
530 coverage as defined in s. 627.4025(1);
531 2. A claim for structural or contents coverage under a
532 commercial property insurance policy if the insured structure is
533 10,000 square feet or less; or
534 3. A claim for contents coverage under a commercial tenant
535 policy if the insured premises is 10,000 square feet or less.
536 (c) This subsection shall not apply to claims under an
537 insurance policy covering nonresidential commercial structures
538 or contents in more than one state.
539 (8) This section applies to surplus lines insurers and
540 surplus lines insurance authorized under ss. 626.913-626.937.
541 Section 19. Section 627.7031, Florida Statutes, is created
542 to read:
543 627.7031 Foreign venue clauses prohibited.—A property
544 insurance policy sold in this state after July 1, 2020, may not
545 require an insured to pursue dispute resolution through
546 litigation, arbitration, or mediation outside this state. This
547 section applies to surplus lines insurers and surplus lines
548 insurance authorized under ss. 626.913-626.937.
549 Section 20. Section 627.7142, Florida Statutes, is amended
550 to read:
551 627.7142 Homeowner Claims Bill of Rights.—An insurer
552 issuing a personal lines residential property insurance policy
553 in this state must provide a Homeowner Claims Bill of Rights to
554 a policyholder within 14 days after receiving an initial
555 communication with respect to a claim, unless the claim follows
556 an event that is the subject of a declaration of a state of
557 emergency by the Governor. The purpose of the bill of rights is
558 to summarize, in simple, nontechnical terms, existing Florida
559 law regarding the rights of a personal lines residential
560 property insurance policyholder who files a claim of loss. The
561 Homeowner Claims Bill of Rights is specific to the claims
562 process and does not represent all of a policyholder’s rights
563 under Florida law regarding the insurance policy. The Homeowner
564 Claims Bill of Rights does not create a civil cause of action by
565 any individual policyholder or class of policyholders against an
566 insurer or insurers. The failure of an insurer to properly
567 deliver the Homeowner Claims Bill of Rights is subject to
568 administrative enforcement by the office but is not admissible
569 as evidence in a civil action against an insurer. The Homeowner
570 Claims Bill of Rights does not enlarge, modify, or contravene
571 statutory requirements, including, but not limited to, ss.
572 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does
573 not prohibit an insurer from exercising its right to repair
574 damaged property in compliance with the terms of an applicable
575 policy or ss. 627.7011(5)(e) and 627.702(7). The Homeowner
576 Claims Bill of Rights must state:
577
578 HOMEOWNER CLAIMS
579 BILL OF RIGHTS
580 This Bill of Rights is specific to the claims process
581 and does not represent all of your rights under
582 Florida law regarding your policy. There are also
583 exceptions to the stated timelines when conditions are
584 beyond your insurance company’s control. This document
585 does not create a civil cause of action by an
586 individual policyholder, or a class of policyholders,
587 against an insurer or insurers and does not prohibit
588 an insurer from exercising its right to repair damaged
589 property in compliance with the terms of an applicable
590 policy.
591
592 YOU HAVE THE RIGHT TO:
593 1. Receive from your insurance company an
594 acknowledgment of your reported claim within 14
595 calendar days after the time you communicated the
596 claim.
597 2. Upon written request, receive from your
598 insurance company within 30 days after you have
599 submitted a complete proof-of-loss statement to your
600 insurance company, confirmation that your claim is
601 covered in full, partially covered, or denied, or
602 receive a written statement that your claim is being
603 investigated.
604 3. Within 7 calendar days, receive notification
605 from your insurance company if there has been a change
606 in the company adjuster who is assigned to your claim.
607 The notification must include the assigned adjuster’s
608 contact information.
609 4. Within 90 calendar days, subject to any dual
610 interest noted in the policy, receive full settlement
611 payment for your claim or payment of the undisputed
612 portion of your claim, or your insurance company’s
613 denial of your claim.
614 5. Receive payment of interest from your
615 insurance company, which begins accruing from the date
616 your claim is filed if your insurance company does not
617 pay full settlement of your claim or the undisputed
618 portion of your claim or does not deny your claim
619 within 90 calendar days after your claim is filed. The
620 interest must be paid when your claim or undisputed
621 portion of your claim is paid.
622 6.4. Free mediation of your disputed claim by the
623 Florida Department of Financial Services, Division of
624 Consumer Services, under most circumstances and
625 subject to certain restrictions.
626 7.5. Neutral evaluation of your disputed claim,
627 if your claim is for damage caused by a sinkhole and
628 is covered by your policy.
629 8.6. Contact the Florida Department of Financial
630 Services, Division of Consumer Services’ toll-free
631 helpline for assistance with any insurance claim or
632 questions pertaining to the handling of your claim.
633 You can reach the Helpline by phone at...(toll-free
634 phone number)..., or you can seek assistance online at
635 the Florida Department of Financial Services, Division
636 of Consumer Services’ website at...(website
637 address)....
638
639 YOU ARE ADVISED TO:
640 1. Contact your insurance company before entering
641 into any contract for repairs to confirm any managed
642 repair policy provisions or optional preferred
643 vendors.
644 2. Make and document emergency repairs that are
645 necessary to prevent further damage. Keep the damaged
646 property, if feasible, keep all receipts, and take
647 photographs or video of damage before and after any
648 repairs.
649 3. Carefully read any contract that requires you
650 to pay out-of-pocket expenses or a fee that is based
651 on a percentage of the insurance proceeds that you
652 will receive for repairing or replacing your property.
653 4. Confirm that the contractor you choose is
654 licensed to do business in Florida. You can verify a
655 contractor’s license and check to see if there are any
656 complaints against him or her by calling the Florida
657 Department of Business and Professional Regulation.
658 You should also ask the contractor for references from
659 previous work.
660 5. Require all contractors to provide proof of
661 insurance before beginning repairs.
662 6. Take precautions if the damage requires you to
663 leave your home, including securing your property and
664 turning off your gas, water, and electricity, and
665 contacting your insurance company and provide a phone
666 number where you can be reached.
667 Section 21. Paragraph (a) of subsection (1) and subsection
668 (6) of section 631.57, Florida Statutes, are amended to read:
669 631.57 Powers and duties of the association.—
670 (1) The association shall:
671 (a)1. Be obligated to the extent of the covered claims
672 existing:
673 a. Prior to adjudication of insolvency and arising within
674 30 days after the determination of insolvency;
675 b. Before the policy expiration date if less than 30 days
676 after the determination; or
677 c. Before the insured replaces the policy or causes its
678 cancellation, if she or he does so within 30 days of the
679 determination.
680 2. The obligation under subparagraph 1. includes only the
681 amount of each covered claim which is in excess of $100 and is
682 less than $300,000, except that policies providing coverage for
683 homeowner’s insurance shall provide for an additional $200,000
684 for the portion of a covered claim which relates only to the
685 damage to the structure and contents.
686 3.a. Notwithstanding subparagraph 2., the obligation under
687 subparagraph 1. for policies covering condominium associations
688 or homeowners’ associations, which associations have a
689 responsibility to provide insurance coverage on residential
690 units within the association, shall include that amount of each
691 covered property insurance claim which is less than $100,000
692 multiplied by the number of condominium units or other
693 residential units; however, as to homeowners’ associations, this
694 sub-subparagraph applies only to claims for damage or loss to
695 residential units and structures attached to residential units.
696 b. Notwithstanding sub-subparagraph a., the association has
697 no obligation to pay covered claims that are to be paid from the
698 proceeds of bonds issued under s. 631.695. However, the
699 association shall assign and pledge the first available moneys
700 from all or part of the assessments to be made under paragraph
701 (3)(a) to or on behalf of the issuer of such bonds for the
702 benefit of the holders of such bonds. The association shall
703 administer any such covered claims and present valid covered
704 claims for payment in accordance with the provisions of the
705 assistance program in connection with which such bonds have been
706 issued.
707 4. In no event shall the association be obligated to a
708 policyholder or claimant in an amount in excess of the
709 obligation of the insolvent insurer under the policy from which
710 the claim arises.
711 (6) The association may extend the time limits specified in
712 paragraph (1)(a) by up to an additional 60 days or waive the
713 applicability of the $100 deductible specified in paragraph
714 (1)(a) if the board determines that either or both such actions
715 are necessary to facilitate the bulk assumption of obligations.
716 Section 22. Section 648.30, Florida Statutes, is amended to
717 read:
718 648.30 Licensure and appointment required; prohibited acts;
719 penalties.—
720 (1) A person may not act in the capacity of a bail bond
721 agent or temporary bail bond agent or perform any of the
722 functions, duties, or powers prescribed for bail bond agents or
723 temporary bail bond agents under this chapter unless that person
724 is qualified, licensed, and appointed as provided in this
725 chapter.
726 (2) A person may not represent himself or herself to be a
727 bail enforcement agent, bounty hunter, or other similar title in
728 this state.
729 (3) A person, other than a certified law enforcement
730 officer, may not apprehend, detain, or arrest a principal on a
731 bond, wherever issued, unless that person is qualified,
732 licensed, and appointed as provided in this chapter or licensed
733 as a bail bond agent or bail bond enforcement agent, or holds an
734 equivalent license by the state where the bond was written.
735 (4) Any person who violates this section commits a felony
736 of the third degree, punishable as provided in s. 775.082, s.
737 775.083, or s. 775.084.
738 (5) Any licensee under this chapter who knowingly aids or
739 abets an unlicensed person in violating this section commits a
740 felony of the third degree, punishable as provided in s.
741 775.082, s. 775.083, or s. 775.084.
742 Section 23. Paragraphs (b) and (c) of subsection (4) and
743 subsections (1) and (10) of section 717.124, Florida Statutes,
744 are amended to read:
745 717.124 Unclaimed property claims.—
746 (1) Any person, excluding another state, claiming an
747 interest in any property paid or delivered to the department
748 under this chapter may file with the department a claim on a
749 form prescribed by the department and verified by the claimant
750 or the claimant’s representative. The claimant’s representative
751 must be an attorney licensed to practice law in this state, a
752 licensed Florida-certified public accountant, or a private
753 investigator licensed under chapter 493. The claimant’s
754 representative must be registered with the department under this
755 chapter. The claimant, or the claimant’s representative, shall
756 provide the department with a legible copy of a valid driver
757 license of the claimant at the time the original claim form is
758 filed. If the claimant has not been issued a valid driver
759 license at the time the original claim form is filed, the
760 department shall be provided with a legible copy of a
761 photographic identification of the claimant issued by the United
762 States, a state or territory of the United States, a foreign
763 nation, or a political subdivision or agency thereof or other
764 evidence deemed acceptable by the department by rule. In lieu of
765 photographic identification, a notarized sworn statement by the
766 claimant may be provided which affirms the claimant’s identity
767 and states the claimant’s full name and address. The claimant
768 must produce to the notary photographic identification of the
769 claimant issued by the United States, a state or territory of
770 the United States, a foreign nation, or a political subdivision
771 or agency thereof or other evidence deemed acceptable by the
772 department by rule. The notary shall indicate the notary’s full
773 address on the notarized sworn statement. Any claim filed
774 without the required identification or the sworn statement with
775 the original claim form and the original Florida Uniform
776 Unclaimed Property Recovery Agreement or Florida Uniform
777 Property Purchase Agreement power of attorney or purchase
778 agreement, if applicable, is void.
779 (a) Within 90 days after receipt of a claim, the department
780 may return any claim that provides for the receipt of fees and
781 costs greater than that permitted under this chapter or that
782 contains any apparent errors or omissions. The department may
783 also request that the claimant or the claimant’s representative
784 provide additional information. The department shall retain a
785 copy or electronic image of the claim.
786 (b) A claimant or the claimant’s representative shall be
787 deemed to have withdrawn a claim if no response to the
788 department’s request for additional information is received by
789 the department within 60 days after the notification of any
790 apparent errors or omissions.
791 (c) Within 90 days after receipt of the claim, or the
792 response of the claimant or the claimant’s representative to the
793 department’s request for additional information, whichever is
794 later, the department shall determine each claim. Such
795 determination shall contain a notice of rights provided by ss.
796 120.569 and 120.57. The 90-day period shall be extended by 60
797 days if the department has good cause to need additional time or
798 if the unclaimed property:
799 1. Is owned by a person who has been a debtor in
800 bankruptcy;
801 2. Was reported with an address outside of the United
802 States;
803 3. Is being claimed by a person outside of the United
804 States; or
805 4. Contains documents filed in support of the claim that
806 are not in the English language and have not been accompanied by
807 an English language translation.
808 (d) The department shall deny any claim under which the
809 claimant’s representative has refused to authorize the
810 department to reduce the fees and costs to the maximum permitted
811 under this chapter.
812 (4)
813 (b) If an owner authorizes an attorney licensed to practice
814 law in this state, Florida-certified public accountant, or
815 private investigator licensed under chapter 493, and registered
816 with the department under this chapter, to claim the unclaimed
817 property on the owner’s behalf, the department is authorized to
818 make distribution of the property or money in accordance with
819 the Florida Uniform Unclaimed Property Recovery Agreement or
820 Florida Uniform Property Purchase Agreement under s. 717.135
821 such power of attorney. The original Florida Uniform Unclaimed
822 Property Recovery Agreement or Florida Uniform Property Purchase
823 Agreement power of attorney must be executed by the claimant or
824 seller owner and must be filed with the department.
825 (c)1. Payments of approved claims for unclaimed cash
826 accounts shall be made to the owner after deducting any fees and
827 costs authorized pursuant to a Florida Uniform Unclaimed
828 Property Recovery Agreement written power of attorney. The
829 contents of a safe-deposit box shall be delivered directly to
830 the claimant notwithstanding any power of attorney or agreement
831 to the contrary.
832 2. Payments of fees and costs authorized pursuant to a
833 Florida Uniform Unclaimed Property Recovery Agreement written
834 power of attorney for approved claims must shall be made or
835 issued to the law firm of the designated attorney licensed to
836 practice law in this state, the public accountancy firm of the
837 licensed Florida-certified public accountant, or the designated
838 employing private investigative agency licensed by this state.
839 Such payments shall be made by electronic funds transfer and may
840 be made on such periodic schedule as the department may define
841 by rule, provided the payment intervals do not exceed 31 days.
842 Payment made to an attorney licensed in this state, a Florida
843 certified public accountant, or a private investigator licensed
844 under chapter 493, operating individually or as a sole
845 practitioner, shall be to the attorney, certified public
846 accountant, or private investigator.
847 (10) Notwithstanding any other provision of this chapter,
848 the department may develop a process by which a registered
849 claimant’s representative or a buyer of unclaimed property may
850 electronically submit to the department an electronic image of a
851 completed claim and claims-related documents pursuant to this
852 chapter, including a Florida Uniform Unclaimed Property Recovery
853 Agreement or Florida Uniform Property Purchase Agreement a
854 limited power of attorney or purchase agreement that has been
855 manually signed and dated by a claimant or seller pursuant to s.
856 717.135 or s. 717.1351, after the claimant’s representative or
857 the buyer of unclaimed property receives the original documents
858 provided by the claimant or the seller for any claim. Each claim
859 filed by a registered claimant’s representative or a buyer of
860 unclaimed property must include a statement by the claimant’s
861 representative or the buyer of unclaimed property attesting that
862 all documents are true copies of the original documents and that
863 all original documents are physically in the possession of the
864 claimant’s representative or the buyer of unclaimed property.
865 All original documents must be kept in the original form, by
866 claim number, under the secure control of the claimant’s
867 representative or the buyer of unclaimed property and must be
868 available for inspection by the department in accordance with s.
869 717.1315. The department may adopt rules to implement this
870 subsection.
871 Section 24. Subsection (2) of section 717.12404, Florida
872 Statutes, is amended to read:
873 717.12404 Claims on behalf of a business entity or trust.—
874 (2) Claims on behalf of a dissolved corporation, a business
875 entity other than an active corporation, or a trust must include
876 a legible copy of a valid driver license of the person acting on
877 behalf of the dissolved corporation, business entity other than
878 an active corporation, or trust. If the person has not been
879 issued a valid driver license, the department shall be provided
880 with a legible copy of a photographic identification of the
881 person issued by the United States, a foreign nation, or a
882 political subdivision or agency thereof. In lieu of photographic
883 identification, a notarized sworn statement by the person may be
884 provided which affirms the person’s identity and states the
885 person’s full name and address. The person must produce his or
886 her photographic identification issued by the United States, a
887 state or territory of the United States, a foreign nation, or a
888 political subdivision or agency thereof or other evidence deemed
889 acceptable by the department by rule. The notary shall indicate
890 the notary’s full address on the notarized sworn statement. Any
891 claim filed without the required identification or the sworn
892 statement with the original claim form and the original Florida
893 Uniform Unclaimed Property Recovery Agreement or Florida Uniform
894 Property Purchase Agreement power of attorney, if applicable, is
895 void.
896 Section 25. Subsection (1) of section 717.1315, Florida
897 Statutes, is amended to read:
898 717.1315 Retention of records by claimant’s representatives
899 and buyers of unclaimed property.—
900 (1) Every claimant’s representative and buyer of unclaimed
901 property shall keep and use in his or her business such books,
902 accounts, and records of the business conducted under this
903 chapter to enable the department to determine whether such
904 person is complying with this chapter and the rules adopted by
905 the department under this chapter. Every claimant’s
906 representative and buyer of unclaimed property shall preserve
907 such books, accounts, and records, including every Florida
908 Uniform Unclaimed Property Recovery Agreement or Florida Uniform
909 Property Purchase Agreement power of attorney or agreement
910 between the owner and such claimant’s representative or buyer,
911 for at least 3 years after the date of the initial power of
912 attorney or agreement.
913 Section 26. Paragraph (j) of subsection (1) of section
914 717.1322, Florida Statutes, is amended to read:
915 717.1322 Administrative and civil enforcement.—
916 (1) The following acts are violations of this chapter and
917 constitute grounds for an administrative enforcement action by
918 the department in accordance with the requirements of chapter
919 120 and for civil enforcement by the department in a court of
920 competent jurisdiction:
921 (j) Requesting or receiving compensation for notifying a
922 person of his or her unclaimed property or assisting another
923 person in filing a claim for unclaimed property, unless the
924 person is an attorney licensed to practice law in this state, a
925 Florida-certified public accountant, or a private investigator
926 licensed under chapter 493, or entering into, or making a
927 solicitation to enter into, an agreement a power of attorney to
928 file a claim for unclaimed property owned by another, or a
929 contract or agreement to purchase unclaimed property, unless
930 such person is registered with the department pursuant to this
931 chapter and an attorney licensed to practice law in this state
932 in the regular practice of her or his profession, a Florida
933 certified public accountant who is acting within the scope of
934 the practice of public accounting as defined in chapter 473, or
935 a private investigator licensed under chapter 493. This
936 subsection does not apply to a person who has been granted a
937 durable power of attorney to convey and receive all of the real
938 and personal property of the owner, is the court-appointed
939 guardian of the owner, has been employed as an attorney or
940 qualified representative to contest the department’s denial of a
941 claim, or has been employed as an attorney to probate the estate
942 of the owner or an heir or legatee of the owner.
943 Section 27. Section 717.135, Florida Statutes, is amended
944 to read:
945 (Substantial rewording of section. See
946 s. 717.135, F.S., for present text.)
947 717.135 Recovery agreements and purchase agreements for
948 claims filed by claimant’s representative; fees and costs.—
949 (1) In order to protect the interests of owners of
950 unclaimed property, the department shall adopt by rule a form
951 entitled “Florida Uniform Unclaimed Property Recovery Agreement”
952 and a form entitled “Florida Uniform Property Purchase
953 Agreement.”
954 (2) The Florida Uniform Unclaimed Property Recovery
955 Agreement form and the Florida Uniform Property Purchase
956 Agreement form must include and disclose:
957 (a) The total dollar amount of unclaimed property accounts
958 claimed or sold.
959 (b) Either the total percentage of all authorized fees and
960 costs to be paid to the claimant’s representative or the
961 percentage of the value of the property to be paid as net gain
962 to the purchasing registered claimant’s representative.
963 (c) Either the total dollar amount to be deducted and
964 received from the claimant as fees and costs by the claimant’s
965 representative or the total net dollar amount to be received by
966 the purchasing registered claimant’s representative.
967 (d) The net dollar amount to be received by the claimant or
968 seller.
969 (e) For each account claimed, the unclaimed property
970 account number and name of the apparent owner, as listed on the
971 department’s database.
972 (f) For the Florida Uniform Property Purchase Agreement, a
973 statement that the purchase price will be remitted to the seller
974 within 30 days after the execution of the form by the seller.
975 (g) The name, address, e-mail address, phone number, and
976 license number of the registered claimant’s representative.
977 (h) The manual signature of the claimant or seller and the
978 date signed.
979 (i) The social security number or taxpayer identification
980 number of the claimant or seller, if available. A number is
981 available if one has been issued to the claimant or seller.
982 (j) A limit of total fees and costs, or the total discount
983 amount in the case of a purchase agreement, to no more than 20
984 percent of the claimed amount.
985 (3) For a Florida Uniform Property Purchase Agreement form,
986 proof that the seller has received payment must be filed with
987 the department along with the claim. If proof of payment is not
988 provided, the claim is void.
989 (4) A registered claimant’s representative shall use the
990 Florida Uniform Unclaimed Property Recovery Agreement form or
991 the Florida Uniform Property Purchase Agreement form as the
992 exclusive means of engaging with a claimant or seller to file a
993 claim with the department.
994 (5) Fees and costs may be owed or paid to a registered
995 claimant’s representative only pursuant to the forms authorized
996 by this section and upon approval of the claim filed thereby.
997 (6) A claimant’s representative may not use or distribute
998 any other agreement of any type with respect to the claimant or
999 seller which relates to unclaimed property accounts held by the
1000 department or the Chief Financial Officer other than the
1001 agreements authorized by this section. Any agreement that is not
1002 authorized by this section is null and void.
1003 (7) The forms under subsection (1):
1004 (a) May not contain language that makes the agreement
1005 irrevocable; and
1006 (b) May not contain language that creates an assignment of
1007 any unclaimed property held by the department.
1008 (8) This section does not supersede the conflicting claims
1009 provisions of s. 717.1241.
1010 (9) At the time a claim is approved, the department may pay
1011 any additional account that is owned by the claimant but has not
1012 been claimed at the time of approval, provided that no
1013 subsequent claim has been filed and is pending for the claimant
1014 at the time of approval.
1015 Section 28. Section 717.1351, Florida Statutes, is
1016 repealed.
1017 Section 29. This act shall take effect upon becoming a law.