Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 2-A
       
       
       
       
       
       
                                Ì368558YÎ368558                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                 Comm: UNFAV           .                                
                  12/12/2022           .                                
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       The Committee on Banking and Insurance (Thompson) recommended
       the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 2400 - 2682
    4  and insert:
    5         (1) Upon the rendition of a judgment or decree by any of
    6  the courts of this state against an insurer and in favor of any
    7  named or omnibus insured or the named beneficiary under a policy
    8  or contract executed by the insurer, the trial court or, in the
    9  event of an appeal in which the insured or beneficiary prevails,
   10  the appellate court shall adjudge or decree against the insurer
   11  and in favor of the insured or beneficiary a reasonable sum as
   12  fees or compensation for the insured’s or beneficiary’s attorney
   13  prosecuting the suit in which the recovery is had. In a suit
   14  arising under a residential or commercial property insurance
   15  policy, the amount of reasonable attorney fees shall be awarded
   16  only as provided in s. 57.105, or s. 627.70152, or s. 768.79, as
   17  applicable.
   18         (4) In a suit arising under a residential or commercial
   19  property insurance policy, the right to attorney fees under this
   20  section may not be transferred to, assigned to, or acquired in
   21  any other manner by anyone other than a named or omnibus insured
   22  or a named beneficiary.
   23         Section 14. Paragraph (b) of subsection (4) of section
   24  627.7011, Florida Statutes, is amended to read:
   25         627.7011 Homeowners’ policies; offer of replacement cost
   26  coverage and law and ordinance coverage.—
   27         (4)
   28         (b) An insurer that issues a homeowner’s insurance policy
   29  that does not provide flood insurance coverage must include on
   30  the policy declarations page with the policy documents at
   31  initial issuance and every renewal, in bold type no smaller than
   32  18 points, the following statement:
   33  
   34         “FLOOD INSURANCE: YOU SHOULD MAY ALSO NEED TO CONSIDER
   35         THE PURCHASE OF FLOOD INSURANCE. YOUR HOMEOWNER’S
   36         INSURANCE POLICY DOES NOT INCLUDE COVERAGE FOR DAMAGE
   37         RESULTING FROM FLOOD EVEN IF HURRICANE WINDS AND RAIN
   38         CAUSED THE FLOOD TO OCCUR. WITHOUT SEPARATE FLOOD
   39         INSURANCE COVERAGE, YOUR YOU MAY HAVE UNCOVERED LOSSES
   40         CAUSED BY FLOOD ARE NOT COVERED. PLEASE DISCUSS THE
   41         NEED TO PURCHASE SEPARATE FLOOD INSURANCE COVERAGE
   42         WITH YOUR INSURANCE AGENT.”
   43  
   44         Section 15. Effective March 1, 2023, present subsection (8)
   45  of section 627.70131, Florida Statutes, is redesignated as
   46  subsection (9), a new subsection (8) is added to that section,
   47  and paragraph (a) of subsection (1), subsections (3), (4), and
   48  (5), and paragraph (a) of subsection (7) of that section are
   49  amended, to read:
   50         627.70131 Insurer’s duty to acknowledge communications
   51  regarding claims; investigation.—
   52         (1)(a) Upon an insurer’s receiving a communication with
   53  respect to a claim, the insurer shall, within 7 14 calendar
   54  days, review and acknowledge receipt of such communication
   55  unless payment is made within that period of time or unless the
   56  failure to acknowledge is caused by factors beyond the control
   57  of the insurer which reasonably prevent such acknowledgment. If
   58  the acknowledgment is not in writing, a notification indicating
   59  acknowledgment shall be made in the insurer’s claim file and
   60  dated. A communication made to or by a representative of an
   61  insurer with respect to a claim shall constitute communication
   62  to or by the insurer.
   63         (3)(a) Unless otherwise provided by the policy of insurance
   64  or by law, within 7 14 days after an insurer receives proof-of
   65  loss statements, the insurer shall begin such investigation as
   66  is reasonably necessary unless the failure to begin such
   67  investigation is caused by factors beyond the control of the
   68  insurer which reasonably prevent the commencement of such
   69  investigation.
   70         (b) If such investigation involves a physical inspection of
   71  the property, the licensed adjuster assigned by the insurer must
   72  provide the policyholder with a printed or electronic document
   73  containing his or her name and state adjuster license number.
   74  For claims other than those subject to a hurricane deductible,
   75  An insurer must conduct any such physical inspection within 30
   76  45 days after its receipt of the proof-of-loss statements.
   77         (c) Any subsequent communication with the policyholder
   78  regarding the claim must also include the name and license
   79  number of the adjuster communicating about the claim.
   80  Communication of the adjuster’s name and license number may be
   81  included with other information provided to the policyholder.
   82         (d) An insurer may use electronic methods to investigate
   83  the loss. Such electronic methods may include any method that
   84  provides the insurer with clear, color pictures or video
   85  documenting the loss, including, but not limited to, electronic
   86  photographs or video recordings of the loss, video conferencing
   87  between the adjuster and the policyholder which includes video
   88  recording of the loss, and video recordings or photographs of
   89  the loss using a drone, driverless vehicle, or other machine
   90  that can move independently or through remote control. The
   91  insurer also may allow the policyholder to use such methods to
   92  assist in the investigation of the loss. An insurer may void the
   93  insurance policy if the policyholder or any other person at the
   94  direction of the policyholder, with intent to injure, defraud,
   95  or deceive any insurer, commits insurance fraud by providing
   96  false, incomplete, or misleading information concerning any fact
   97  or thing material to a claim using electronic methods. The use
   98  of electronic methods to investigate the loss does not prohibit
   99  an insurer from assigning a licensed adjuster to physically
  100  inspect the property.
  101         (e)Within 7 days after the insurer’s assignment of an
  102  adjuster to the claim, The insurer must send notify the
  103  policyholder that he or she may request a copy of any detailed
  104  estimate of the amount of the loss within 7 days after the
  105  estimate is generated by an insurer’s adjuster. After receiving
  106  such a request from the policyholder, the insurer must send any
  107  such detailed estimate to the policyholder within the later of 7
  108  days after the insurer received the request or 7 days after the
  109  detailed estimate of the amount of the loss is completed. This
  110  paragraph does not require that an insurer create a detailed
  111  estimate of the amount of the loss if such estimate is not
  112  reasonably necessary as part of the claim investigation.
  113         (4) An insurer shall maintain:
  114         (a) A record or log of each adjuster who communicates with
  115  the policyholder as provided in paragraphs (3)(b) and (c) and
  116  provide a list of such adjusters to the insured, office, or
  117  department upon request.
  118         (b)Claim records, including dates, of:
  119         1.Any claim-related communication made between the insurer
  120  and the policyholder or the policyholder’s representative;
  121         2.The insurer’s receipt of the policyholder’s proof of
  122  loss statement;
  123         3.Any claim-related request for information made by the
  124  insurer to the policyholder or the policyholder’s
  125  representative;
  126         4.Any claim-related inspections of the property made by
  127  the insurer, including physical inspections and inspections made
  128  by electronic means;
  129         5.Any detailed estimate of the amount of the loss
  130  generated by the insurer’s adjuster;
  131         6.The beginning and end of any tolling period provided for
  132  in subsection (8); and
  133         7.The insurer’s payment or denial of the claim.
  134         (5) For purposes of this section, the term:
  135         (a)“Factors beyond the control of the insurer” means:
  136         1.Any of the following events that is the basis for the
  137  office issuing an order finding that such event renders all or
  138  specified residential property insurers reasonably unable to
  139  meet the requirements of this section in specified locations and
  140  ordering that such insurer or insurers may have additional time
  141  as specified by the office to comply with the requirements of
  142  this section: a state of emergency declared by the Governor
  143  under s. 252.36, a breach of security that must be reported
  144  under s. 501.171(3), or an information technology issue. The
  145  office may not extend the period for payment or denial of a
  146  claim for more than 30 additional days.
  147         2.Actions by the policyholder or the policyholder’s
  148  representative which constitute fraud, lack of cooperation, or
  149  intentional misrepresentation regarding the claim for which
  150  benefits are owed when such actions reasonably prevent the
  151  insurer from complying with any requirement of this section.
  152         (b) “Insurer” means any residential property insurer.
  153         (7)(a) Within 60 90 days after an insurer receives notice
  154  of an initial, reopened, or supplemental property insurance
  155  claim from a policyholder, the insurer shall pay or deny such
  156  claim or a portion of the claim unless the failure to pay is
  157  caused by factors beyond the control of the insurer which
  158  reasonably prevent such payment. The insurer shall provide a
  159  reasonable explanation in writing to the policyholder of the
  160  basis in the insurance policy, in relation to the facts or
  161  applicable law, for the payment, denial, or partial denial of a
  162  claim. If the insurer’s claim payment is less than specified in
  163  any insurer’s detailed estimate of the amount of the loss, the
  164  insurer must provide a reasonable explanation in writing of the
  165  difference to the policyholder. Any payment of an initial or
  166  supplemental claim or portion of such claim made 60 90 days
  167  after the insurer receives notice of the claim, or made more
  168  than 15 days after the expiration of any additional timeframe
  169  provided to pay or deny a claim or a portion of a claim made
  170  pursuant to an order of the office finding there are no longer
  171  factors beyond the control of the insurer which reasonably
  172  prevented such payment, whichever is later, bears interest at
  173  the rate set forth in s. 55.03. Interest begins to accrue from
  174  the date the insurer receives notice of the claim. The
  175  provisions of this subsection may not be waived, voided, or
  176  nullified by the terms of the insurance policy. If there is a
  177  right to prejudgment interest, the insured must select whether
  178  to receive prejudgment interest or interest under this
  179  subsection. Interest is payable when the claim or portion of the
  180  claim is paid. Failure to comply with this subsection
  181  constitutes a violation of this code. However, failure to comply
  182  with this subsection does not form the sole basis for a private
  183  cause of action.
  184         (8)The requirements of this section are tolled:
  185         (a)During the pendency of any mediation proceeding under
  186  s. 627.7015 or any alternative dispute resolution proceeding
  187  provided for in the insurance contract. The tolling period ends
  188  upon the end of the mediation or alternative dispute resolution
  189  proceeding.
  190         (b)Upon the failure of a policyholder or a representative
  191  of the policyholder to provide material claims information
  192  requested by the insurer within 10 days after the request was
  193  received. The tolling period ends upon the insurer’s receipt of
  194  the requested information. Tolling under this paragraph applies
  195  only to requests sent by the insurer to the policyholder or a
  196  representative of the policyholder at least 15 days before the
  197  insurer is required to pay or deny the claim or a portion of the
  198  claim under subsection (7).
  199         Section 16. Subsection (2) of section 627.70132, Florida
  200  Statutes, is amended to read:
  201         627.70132 Notice of property insurance claim.—
  202         (2) A claim or reopened claim, but not a supplemental
  203  claim, under an insurance policy that provides property
  204  insurance, as defined in s. 624.604, including a property
  205  insurance policy issued by an eligible surplus lines insurer,
  206  for loss or damage caused by any peril is barred unless notice
  207  of the claim was given to the insurer in accordance with the
  208  terms of the policy within 1 year 2 years after the date of
  209  loss. A supplemental claim is barred unless notice of the
  210  supplemental claim was given to the insurer in accordance with
  211  the terms of the policy within 18 months 3 years after the date
  212  of loss.
  213         Section 17. Subsection (1) of section 627.70152, Florida
  214  Statutes, is amended to read:
  215         627.70152 Suits arising under a property insurance policy.—
  216         (1) APPLICATION.—This section applies exclusively to all
  217  suits not brought by an assignee arising under a residential or
  218  commercial property insurance policy, including a residential or
  219  commercial property insurance policy issued by an eligible
  220  surplus lines insurer.
  221  
  222  ================= T I T L E  A M E N D M E N T ================
  223  And the title is amended as follows:
  224         Delete lines 99 - 125
  225  and insert:
  226         627.428, F.S.; revising conditions under which
  227         attorney fees may be awarded in suits arising under a
  228         residential or commercial property insurance policy;
  229         deleting a restriction on transferring, assigning, or
  230         acquiring a certain right to attorney fees; amending
  231         s. 627.7011, F.S.; revising disclosure requirements
  232         relating to flood insurance for insurers issuing
  233         homeowners’ policies; amending s. 627.70131, F.S.;
  234         revising requirements for insurers relating to
  235         acknowledging communications regarding claims,
  236         investigating claims, sending estimates of losses to
  237         policyholders, recordkeeping, and paying or denying
  238         claims; authorizing insurers to use specified methods
  239         in investigating losses; authorizing insurers to void
  240         insurance policies under certain circumstances;
  241         defining the term “factors beyond the control of the
  242         insurer”; specifying circumstances under which certain
  243         requirements are tolled; providing construction;
  244         amending s. 627.70132, F.S.; revising timeframes under
  245         which notices of claims, reopened claims, and
  246         supplemental claims under property insurance policies
  247         must be given to insurers or be barred; amending s.
  248         627.70152, F.S.; revising applicability of provisions
  249         relating to suits arising under a property insurance
  250         policy; creating s. 627.70154, F.S.; specifying