Florida Senate - 2022                                     SB 2-D
       
       
        
       By Senator Boyd
       
       
       
       
       
       21-00011-22D                                            20222D__
    1                        A bill to be entitled                      
    2         An act relating to property insurance; creating s.
    3         215.5551, F.S.; creating the Reinsurance to Assist
    4         Policyholders program to be administered by the State
    5         Board of Administration; defining terms; requiring
    6         certain property insurers to obtain coverage under the
    7         program; requiring the board to provide reimbursement
    8         to property insurers under the program; requiring the
    9         board and property insurers to enter into contracts to
   10         provide certain insurance reimbursement; providing
   11         requirements for the contracts; providing
   12         construction; providing calculations for specified
   13         amounts of losses to determine reimbursement under the
   14         program; authorizing the board to inspect, examine,
   15         and verify insurer records; providing insurer
   16         eligibility qualifications for the program; providing
   17         for disqualification; requiring certain insurers to
   18         notify the board under a specified circumstance;
   19         prohibiting premiums from being charged for
   20         participation in the program; providing that the
   21         program does not affect the claims-paying capacity of
   22         the Florida Hurricane Catastrophe Fund; requiring the
   23         program to pay reimbursements directly to the
   24         applicable state guaranty fund in the event of
   25         insolvency; specifying requirements for the Florida
   26         Hurricane Catastrophe Fund if an insurer or the
   27         Citizens Property Insurance Corporation accept
   28         assignments of unsound insurers; providing that
   29         certain violations are violations of the insurance
   30         code; authorizing the board to enforce certain
   31         requirements; authorizing the board to adopt rules;
   32         providing legislative intent; requiring the board to
   33         submit a written notice within a certain timeframe to
   34         the Executive Office of the Governor relating to the
   35         program funds, under certain circumstances; providing
   36         a requirement for the notice and subsequent requests;
   37         requiring the Executive Office of the Governor to
   38         instruct the Chief Financial Officer to draw a warrant
   39         for a transfer to the board for the program under
   40         certain circumstances and to provide notification to
   41         specified persons within a certain timeframe;
   42         prohibiting cumulative transfers from exceeding a
   43         specified amount; providing reporting requirements;
   44         providing for expiration and transfer of unencumbered
   45         funds; requiring certain property insurers to reduce
   46         rates to reflect certain cost savings through rate
   47         filings by a specified date; prohibiting such insurers
   48         from making other rate changes; requiring the Office
   49         of Insurance Regulation to expedite the review of
   50         certain filings; amending s. 215.5586, F.S.; adding a
   51         requirement for hurricane mitigation inspection
   52         applications; revising homeowner eligibility criteria
   53         for mitigation grants; specifying matching
   54         requirements for grants; revising reporting
   55         requirements; providing an appropriation; requiring
   56         the Department of Financial Services to submit budget
   57         amendments; specifying requirements for budget
   58         amendments; providing for reversion and appropriation
   59         of any unexpended balance; providing for expiration;
   60         amending s. 489.147, F.S.; revising the definition of
   61         the term “prohibited advertisement”; creating s.
   62         624.1551, F.S.; requiring claimants to establish that
   63         property insurers have breached the insurance contract
   64         to prevail in certain claims for damages; amending s.
   65         624.307, F.S.; requiring the office to publish certain
   66         information on its website; amending s. 624.313, F.S.;
   67         requiring the office to print and make a specified
   68         report available by a specified date annually;
   69         revising the information the office must include in
   70         such report; amending s. 624.315, F.S.; revising the
   71         information the office must include in certain
   72         reports; amending s. 624.424, F.S.; requiring the
   73         Office of Insurance Regulation to aggregate on a
   74         statewide basis and make publicly available certain
   75         data submitted by insurers and insurer groups;
   76         specifying requirements for publishing such data;
   77         providing that such information is not a trade secret
   78         and is not subject to a certain public records
   79         exemption; amending s. 626.9373, F.S.; revising
   80         conditions for the award of reasonable attorney fees
   81         to apply to all suits brought under residential or
   82         commercial property insurance policies, rather than
   83         those not brought by assignees; limiting the transfer,
   84         assignment, or acquisition of rights to attorney fees
   85         in certain property insurance suits; amending s.
   86         627.428, F.S.; revising conditions for the award of
   87         reasonable attorney fees to apply to all suits brought
   88         under residential or commercial property insurance
   89         policies, rather than those not brought by assignees;
   90         limiting the transfer, assignment, or acquisition of
   91         rights to attorney fees in certain property insurance
   92         suits; amending s. 627.701, F.S.; revising a
   93         prohibition against the issuance of insurance policies
   94         containing certain deductible provisions; revising the
   95         conditions a personal lines residential property
   96         insurance policy covering certain risks must meet
   97         under certain circumstances; requiring personal lines
   98         residential property insurance policies containing
   99         separate roof deductibles to include specified
  100         information; authorizing property insurers to include
  101         separate roof deductibles if certain requirements are
  102         met; providing requirements for policyholders in
  103         rejecting such deductibles under certain
  104         circumstances; requiring the office to expedite the
  105         review of filing of certain forms; authorizing the
  106         commission to adopt certain model forms or guidelines;
  107         requiring the office to review certain filings within
  108         a specified timeframe; providing that roof deductible
  109         portions of the filing are not subject to a specified
  110         extension for review; amending s. 627.7011, F.S.;
  111         authorizing property insurers to limit certain roof
  112         claim payments under certain circumstances; defining
  113         the term “authorized inspector”; prohibiting insurers
  114         from refusing to issue or renew homeowners’ policies
  115         insuring certain structures; requiring insurers to
  116         allow homeowners to have roof inspections performed
  117         before requiring roof replacement; providing
  118         applicability; amending s. 627.70131, F.S.; requiring
  119         insurers to conduct physical inspections for certain
  120         claims within a specified timeframe; requiring
  121         property insurers to notify and provide certain
  122         detailed estimates to policyholders; providing
  123         construction; requiring property insurers to provide
  124         reasonable explanations related to claims under
  125         certain circumstances; amending s. 627.70152, F.S.;
  126         making a technical change; authorizing property
  127         insurers to be awarded attorney fees in certain suit
  128         dismissals; providing that a strong presumption is
  129         created that a lodestar fee is sufficient and
  130         reasonable; providing that such presumption may be
  131         rebutted only under certain circumstances; amending s.
  132         627.7142, F.S.; conforming a cross-reference; amending
  133         s. 627.7152, F.S.; revising the definition of the term
  134         “assignment agreement”; deleting the definitions of
  135         the terms “disputed amount” and “judgment obtained”;
  136         revising a requirement for assignment agreements;
  137         revising the requirement for assignees to indemnify
  138         and hold harmless assignors; specifying a timeframe
  139         during which and the addresses to which a notice of
  140         intent must be served; deleting certain limitations on
  141         the recovery and award of attorney fees in suits
  142         related to assignment agreements; creating s.
  143         627.7154, F.S.; creating an insurer stability unit
  144         within the office for a specified purpose; specifying
  145         the duties of the unit; requiring the unit to provide
  146         a specified report biannually; specifying requirements
  147         for such report; specifying events that trigger
  148         referrals to the unit; requiring the unit’s
  149         supervisors to review such referrals for a certain
  150         determination; requiring unit expenses be paid from a
  151         specified fund; requiring costs of examinations to be
  152         paid by examined persons in a specified circumstance;
  153         amending s. 631.031, F.S.; requiring notifications by
  154         the office to the department of grounds for
  155         delinquency proceedings to include an affidavit;
  156         specifying contents of such affidavit; amending s.
  157         631.398, F.S.; specifying duties of the department for
  158         insurer insolvency proceedings; providing for
  159         construction of the act in pari materia with laws
  160         enacted during the 2022 Regular Session of the
  161         Legislature; providing effective dates.
  162          
  163  Be It Enacted by the Legislature of the State of Florida:
  164  
  165         Section 1. Section 215.5551, Florida Statutes, is created
  166  to read:
  167         215.5551 Reinsurance to Assist Policyholders program.—
  168         (1)CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS
  169  PROGRAM.—There is created the Reinsurance to Assist
  170  Policyholders program to be administered by the State Board of
  171  Administration.
  172         (2) DEFINITIONS.—As used in this section, the term:
  173         (a)“Board” means the State Board of Administration.
  174         (b)“Contract year” means the period beginning on June 1 of
  175  a specified calendar year and ending on May 31 of the following
  176  calendar year.
  177         (c)“Covered event” means any one storm declared to be a
  178  hurricane by the National Hurricane Center, which storm causes
  179  insured losses in this state.
  180         (d)“Covered policy” has the same meaning as in s.
  181  215.555(2)(c).
  182         (e)“FHCF” means the Florida Hurricane Catastrophe Fund
  183  created under s. 215.555.
  184         (f)“Losses” has the same meaning as in s. 215.555(2)(d).
  185         (g)“RAP” means the Reinsurance to Assist Policyholders
  186  program created by this section.
  187         (h)“RAP insurer” means an insurer that is a participating
  188  insurer in the FHCF on June 1, 2022, which must obtain coverage
  189  under the RAP program and qualifies under subsection (5).
  190  However, any joint underwriting association, risk apportionment
  191  plan, or other entity created under s. 627.351 is not considered
  192  a RAP insurer and is prohibited from obtaining coverage under
  193  the RAP program.
  194         (i)“RAP limit” means, for the 2022-2023 contract year, the
  195  RAP insurer’s maximum payout, which is its share of the $2
  196  billion RAP layer aggregate limit. For the 2023-2024 contract
  197  year, for RAP insurers that are subject to participation
  198  deferral under subsection (6) and participate during the 2023
  199  2024 contract year, the RAP limit means the RAP insurer’s
  200  maximum payout, which is its share of the total amount of the
  201  RAP program layer aggregate limit deferred from 2022-2023.
  202         (j)“RAP qualification ratio” means:
  203         1.For the 2022-2023 contract year, the ratio of FHCF
  204  mandatory premium adjusted to 90 percent for RAP insurers
  205  divided by the FHCF mandatory premium adjusted to 90 percent for
  206  all insurers. The preliminary RAP qualification ratio shall be
  207  based on the 2021-2022 contract year’s company premiums, as of
  208  December 31, 2021, adjusted to 90 percent based on the 2022-2023
  209  contract year coverage selections. The RAP qualification ratio
  210  shall be based on the reported 2022-2023 contract year company
  211  premiums, as of December 31, 2022, adjusted to 90 percent.
  212         2.For the 2023-2024 contract year, the ratio of FHCF
  213  mandatory premium adjusted to 90 percent for the qualified RAP
  214  insurers that have deferred RAP coverage to 2023-2024 divided by
  215  the FHCF mandatory premium adjusted to 90 percent for all
  216  insurers. The preliminary RAP qualification ratio shall be based
  217  on the 2022-2023 contract year’s company premiums as of December
  218  31, 2022, adjusted to 90 percent based on the 2023-2024 contract
  219  year coverage selections. The RAP qualification ratio shall be
  220  based on the reported 2023-2024 contract year company premiums
  221  as of December 31, 2023, adjusted to 90 percent.
  222         (k)“RAP reimbursement contract” means the reimbursement
  223  contract reflecting the obligations of the RAP program to
  224  insurers.
  225         (l) “RAP retention” means the amount of losses below which
  226  a RAP insurer is not entitled to reimbursement under the RAP
  227  program.
  228         (m)“Unsound insurer” means a RAP insurer determined by the
  229  Office of Insurance Regulation to be in unsound condition as
  230  defined in s. 624.80(2) or a RAP insurer placed in receivership
  231  under chapter 631.
  232         (3) COVERAGE.—
  233         (a)As a condition of doing business in this state, each
  234  RAP insurer shall obtain coverage under the RAP program.
  235         (b)The board shall provide a reimbursement layer of $2
  236  billion below the FHCF retention prior to the third event
  237  dropdown of the FHCF retention set forth in s. 215.555(2)(e).
  238  Subject to the mandatory notice provisions in subsection (5),
  239  the board shall enter into a RAP reimbursement contract with
  240  each eligible RAP insurer writing covered policies in this state
  241  to provide to the insurer the reimbursement described in this
  242  section.
  243         (4) RAP REIMBURSEMENT CONTRACTS.—
  244         (a)1. The board shall issue a RAP reimbursement contract to
  245  each eligible RAP insurer which is effective:
  246         a.June 1, 2022, for RAP insurers that participate in the
  247  RAP program during the 2022-2023 contract year; or
  248         b.June 1, 2023, for RAP insurers that are subject to
  249  participation deferral under subsection (6) and participate in
  250  the RAP program during the 2023-2024 contract year.
  251         2.The reimbursement contract shall be executed no later
  252  than:
  253         a.July 15, 2022, for RAP insurers that participate in the
  254  RAP program during the 2022-2023 contract year; or
  255         b.March 1, 2023, for RAP insurers that are subject to
  256  participation deferral under subsection (6) and participate in
  257  the RAP program during the 2023-2024 contract year.
  258         3.If a RAP insurer fails to execute the RAP reimbursement
  259  contract by the dates required in this paragraph, the RAP
  260  insurance contract is deemed to have been executed by the RAP
  261  insurer.
  262         (b) For the two covered events with the largest losses, the
  263  RAP reimbursement contract must contain a promise by the board
  264  to reimburse the RAP insurer for 90 percent of its losses from
  265  each covered event in excess of the insurer’s RAP retention,
  266  plus 10 percent of the reimbursed losses to cover loss
  267  adjustment expenses. The sum of the losses and 10 percent loss
  268  adjustment expense allocation from the RAP layer may not exceed
  269  the RAP limit. Recoveries on losses in the FHCF mandatory layer
  270  shall inure to the benefit of the RAP contract layer.
  271         (c) The RAP reimbursement contract must provide that
  272  reimbursement amounts are not reduced by reinsurance paid or
  273  payable to the insurer from other sources excluding the FHCF.
  274         (d)The board shall calculate and report to each RAP
  275  insurer the RAP payout multiples as the ratio of the RAP
  276  industry limit of $2 billion for the 2022-2023 contract year, or
  277  the deferred limit for the 2022-2023 contract year, to the
  278  mandatory FHCF retention multiplied by the mandatory FHCF
  279  retention multiples divided by the RAP qualification ratio. The
  280  RAP payout multiple for an insurer is multiplied by the RAP
  281  insurer’s FHCF premium to calculate its RAP maximum payout. RAP
  282  payout multiples are calculated for 45 percent, 75 percent, and
  283  90 percent FHCF mandatory coverage selections.
  284         (e) A RAP insurer’s RAP retention is calculated as follows:
  285         1. The board shall calculate and report to each RAP insurer
  286  the RAP retention multiples for each FHCF coverage selection as
  287  the FHCF retention multiple minus the RAP payout multiple. The
  288  RAP retention multiple for an insurer is multiplied by the RAP
  289  insurer’s FHCF premium to calculate its RAP retention. RAP
  290  retention multiples are calculated for 45 percent, 75 percent,
  291  and 90 percent FHCF mandatory coverage selections.
  292         2. The RAP industry retention for the 2022-2023 contract
  293  year is the FHCF’s industry retention minus $2 billion, prior to
  294  allocation to qualifying RAP insurers. The RAP industry
  295  retention for the 2023-2024 contract year is the FHCF’s industry
  296  retention for the 2023-2024 contract year minus the total
  297  deferred RAP limit, prior to allocation to qualifying RAP
  298  insurers.
  299         3. A RAP insurer determines its actual RAP retention by
  300  multiplying its actual mandatory reimbursement FHCF premium by
  301  the RAP retention multiple.
  302         (f)To ensure that insurers have properly reported the
  303  losses for which RAP reimbursements have been made, the board
  304  may inspect, examine, and verify the records of each RAP
  305  insurer’s covered policies at such times as the board deems
  306  appropriate for the specific purpose of validating the accuracy
  307  of losses required to be reported under the terms and conditions
  308  of the RAP reimbursement contract.
  309         (5) INSURER QUALIFICATION.—
  310         (a)An insurer is not eligible to participate in the RAP
  311  program if the board receives a notice from the Commissioner of
  312  Insurance Regulation which certifies that the insurer is in an
  313  unsound financial condition no later than:
  314         1.June 15, 2022, for RAP insurers that participate during
  315  the 2022-2023 contract year; or
  316         2.February 1, 2023, for RAP insurers subject to
  317  participation deferral under subsection (6) and participate
  318  during the 2023-2024 contract year.
  319         (b)The office must make this determination based on the
  320  following factors:
  321         1.The insurer’s compliance with the requirements to
  322  qualify for and hold a certificate of authority under s.
  323  624.404;
  324         2.The insurer’s compliance with the applicable surplus
  325  requirements of s. 624.408;
  326         3.The insurer’s compliance with the applicable risk-based
  327  capital requirements under s. 624.4085;
  328         4.The insurer’s compliance with the applicable premium to
  329  surplus requirements under s. 624.4095; and
  330         5.An analysis of quarterly and annual statements,
  331  including an actuarial opinion summary, and other information
  332  submitted to the office pursuant to s. 624.424.
  333         (c)If the board receives timely notice pursuant to
  334  paragraph (a) regarding an insurer, such insurer is disqualified
  335  from participating in the RAP program.
  336         (6) PARTICIPATION DEFERRAL.—
  337         (a)A RAP insurer that has any private reinsurance within
  338  the RAP layer of coverage for the 2022-2023 contract year shall
  339  notify the board in writing of such coverage no later than June
  340  30, 2022. Participation in the RAP program for such RAP insurers
  341  shall be deferred until the 2023-2024 contract year.
  342         (b)A new participating insurer that begins writing covered
  343  policies in this state after June 1, 2022, is deemed to defer
  344  its RAP coverage to the 2023-2024 contract year.
  345         (7) RAP PREMIUMS.—Premiums may not be charged for
  346  participation in the RAP program.
  347         (8) CLAIMS-PAYING CAPACITY.—The RAP program shall not
  348  affect the claims-paying capacity of the FHCF as provided in s.
  349  215.555(4)(c)1.
  350         (9)INSOLVENCY OF RAP INSURER.—
  351         (a)The RAP reimbursement contract shall provide that in
  352  the event of an insolvency of a RAP insurer, the RAP program
  353  shall pay reimbursements directly to the applicable state
  354  guaranty fund for the benefit of policyholders in this state of
  355  the RAP insurer.
  356         (b)If an authorized insurer or the Citizens Property
  357  Insurance Corporation accepts an assignment of an unsound RAP
  358  insurer’s RAP contract, the FHCF shall apply the unsound RAP
  359  insurer’s RAP contract to such policies and treat the authorized
  360  insurer or the Citizens Property Insurance Corporation as if it
  361  were the unsound RAP insurer for the remaining term of the RAP
  362  contract, with all rights and duties of the unsound RAP insurer
  363  beginning on the date it provides coverage for such policies.
  364         (10)VIOLATIONS.—Any violation of this section or of rules
  365  adopted under this section constitutes a violation of the
  366  insurance code.
  367         (11)LEGAL PROCEEDINGS.—The board is authorized to take any
  368  action necessary to enforce the rules, provisions, and
  369  requirements of the RAP reimbursement contract, required by and
  370  adopted pursuant to this section.
  371         (12)RULEMAKING.—The board may adopt such rules as are
  372  reasonable and necessary to implement this section, and it is
  373  the intent of the Legislature that all rules adopted to
  374  implement this section will be done as emergency rules pursuant
  375  to s. 120.54(4).
  376         (13) APPROPRIATION.—
  377         (a)Within 60 days after a covered event, the board shall
  378  submit written notice to the Executive Office of the Governor if
  379  the board determines that funds from the RAP program coverage
  380  established by this section will be necessary to reimburse RAP
  381  insurers for losses associated with the covered event. The
  382  initial notice, and any subsequent requests, must specify the
  383  amount necessary to provide RAP reimbursements. Upon receiving
  384  such notice, the Executive Office of the Governor shall instruct
  385  the Chief Financial Officer to draw a warrant from the General
  386  Revenue Fund for a transfer to the board for the RAP program in
  387  the amount requested. The Executive Office of the Governor shall
  388  provide written notification to the chair and vice chair of the
  389  Legislative Budget Commission at least 3 days before the
  390  effective date of the warrant. Cumulative transfers authorized
  391  under this paragraph may not exceed $2 billion.
  392         (b)If General Revenue Funds are transferred to the board
  393  for the RAP program under paragraph (a), the board shall submit
  394  written notice to the Executive Office of the Governor that
  395  funds will be necessary for the administration of the RAP
  396  program and post-event examinations for covered events that
  397  require RAP coverage. The initial notice, and any subsequent
  398  requests, must specify the amount necessary for administration
  399  of the RAP program and post-event examinations. Upon receiving
  400  such notice, the Executive Office of the Governor shall instruct
  401  the Chief Financial Officer to draw a warrant from the General
  402  Revenue Fund for a transfer to the board for the RAP program in
  403  the amount requested. The Executive Office of the Governor shall
  404  provide written notification to the chair and vice chair of the
  405  Legislative Budget Commission at least 3 days before the
  406  effective date of the warrant. Cumulative transfers authorized
  407  under this paragraph may not exceed $5 million.
  408         (c)No later than January 31, 2023, and quarterly
  409  thereafter, the board shall submit a report to the Executive
  410  Office of the Governor, the President of the Senate, and the
  411  Speaker of the House of Representatives detailing any
  412  reimbursements of the RAP program, all loss development
  413  projections, the amount of RAP reimbursement coverage deferred
  414  until the 2023-2024 contract year, and detailed information
  415  about administrative and post-event examination expenditures.
  416         (14)EXPIRATION DATE.—If no General Revenue Funds have been
  417  transferred to the board for the RAP program under subsection
  418  (13) by June 30, 2025, this section expires on July 1, 2025. If
  419  General Revenue Funds have been transferred to the board for the
  420  RAP program under subsection (13) by June 30, 2025, this section
  421  expires on July 1, 2029, and all unencumbered RAP program funds
  422  shall be transferred by the board back to the General Revenue
  423  Fund unallocated.
  424         Section 2. (1)No later than June 30, 2022, each insurer
  425  that participates during the 2022-2023 contract year in the
  426  Reinsurance to Assist Policyholders program under s. 215.5551,
  427  Florida Statutes, shall reduce its rates to reflect the cost
  428  savings realized by participating in the program through a rate
  429  filing with the Office of Insurance Regulation or by amending a
  430  pending rate filing. The insurer shall make no other changes to
  431  its rates in the filing.
  432         (2)No later than May 1, 2023, each insurer that defers
  433  participation in the Reinsurance to Assist Policyholders program
  434  until the 2023-2024 year under s. 215.5551, Florida Statutes,
  435  shall reduce its rates to reflect the cost savings realized by
  436  participating in the program through a rate filing with the
  437  Office of Insurance Regulation or by amending a pending rate
  438  filing. The insurer shall make no other changes to its rates in
  439  the filing.
  440         (3)The Office of Insurance Regulation shall expedite the
  441  review of the filings made under this section.
  442         Section 3. Effective July 1, 2022, paragraph (d) of
  443  subsection (1), paragraphs (a) and (b) of subsection (2), and
  444  subsection (10) of section 215.5586, Florida Statutes, are
  445  amended to read:
  446         215.5586 My Safe Florida Home Program.—There is established
  447  within the Department of Financial Services the My Safe Florida
  448  Home Program. The department shall provide fiscal
  449  accountability, contract management, and strategic leadership
  450  for the program, consistent with this section. This section does
  451  not create an entitlement for property owners or obligate the
  452  state in any way to fund the inspection or retrofitting of
  453  residential property in this state. Implementation of this
  454  program is subject to annual legislative appropriations. It is
  455  the intent of the Legislature that the My Safe Florida Home
  456  Program provide trained and certified inspectors to perform
  457  inspections for owners of site-built, single-family, residential
  458  properties and grants to eligible applicants as funding allows.
  459  The program shall develop and implement a comprehensive and
  460  coordinated approach for hurricane damage mitigation that may
  461  include the following:
  462         (1) HURRICANE MITIGATION INSPECTIONS.—
  463         (d) An application for an inspection must contain:
  464         1.A provision requiring the applicant to make his or her
  465  home available for inspection once a mitigation project is
  466  completed; and
  467         2. A signed or electronically verified statement made under
  468  penalty of perjury that the applicant has submitted only a
  469  single application for that home.
  470         (2) MITIGATION GRANTS.—Financial grants shall be used to
  471  encourage single-family, site-built, owner-occupied, residential
  472  property owners to retrofit their properties to make them less
  473  vulnerable to hurricane damage.
  474         (a) For a homeowner to be eligible for a grant, the
  475  following criteria must be met:
  476         1. The homeowner must have been granted a homestead
  477  exemption on the home under chapter 196.
  478         2. The home must be a dwelling with an insured value of
  479  $500,000 $300,000 or less. Homeowners who are low-income
  480  persons, as defined in s. 420.0004(11), are exempt from this
  481  requirement.
  482         3. The home must have undergone an acceptable hurricane
  483  mitigation inspection after July 1, 2008 May 1, 2007.
  484         4. The home must be located in the “wind-borne debris
  485  region” as that term is defined in the Florida Building Code s.
  486  1609.2, International Building Code (2006), or as subsequently
  487  amended.
  488         5. The building permit application for initial construction
  489  of the home must have been made before January 1, 2008 March 1,
  490  2002.
  491  
  492  An application for a grant must contain a signed or
  493  electronically verified statement made under penalty of perjury
  494  that the applicant has submitted only a single application and
  495  must have attached documents demonstrating the applicant meets
  496  the requirements of this paragraph.
  497         (b) All grants must be matched on the basis of $1 provided
  498  by the applicant for $2 provided by the state a dollar-for
  499  dollar basis up to a maximum state contribution total of $10,000
  500  toward for the actual cost of the mitigation project with the
  501  state’s contribution not to exceed $5,000.
  502         (10) REPORTS.—The department shall make an annual report on
  503  the activities of the program that shall account for the use of
  504  state funds and indicate the number of inspections requested,
  505  the number of inspections performed, the number of grant
  506  applications received, and the number and value of grants
  507  approved, and the average annual amount of insurance premium
  508  discounts and total annual amount of insurance premium discounts
  509  homeowners received from insurers as a result of mitigation
  510  funded through the program. The report shall be delivered to the
  511  President of the Senate and the Speaker of the House of
  512  Representatives by February 1 of each year.
  513         Section 4. (1)For the 2022-2023 fiscal year, the sum of
  514  $150 million in nonrecurring funds is appropriated from the
  515  General Revenue Fund to the Department of Financial Services for
  516  the My Safe Florida Home Program. The funds shall be placed in
  517  reserve. The department shall submit budget amendments
  518  requesting release of the funds held in reserve pursuant to
  519  chapter 216, Florida Statutes. The budget amendments shall
  520  include a detailed spending plan.
  521         (2)The funds shall be allocated as follows:
  522         (a)Twenty-five million dollars for hurricane mitigation
  523  inspections.
  524         (b)One hundred fifteen million dollars for mitigation
  525  grants.
  526         (c)Four million dollars for education and consumer
  527  awareness.
  528         (d)One million dollars for public outreach for contractors
  529  and real estate brokers and sales associates.
  530         (e)Five million dollars for administrative costs.
  531         (3)Any unexpended balance of funds from this appropriation
  532  remaining on June 30, 2023, shall revert and is appropriated to
  533  the Department of Financial Services for the 2023-2024 fiscal
  534  year for the same purpose.
  535         (4)This section shall expire October 1, 2024.
  536         Section 5. Paragraph (a) of subsection (1) of section
  537  489.147, Florida Statutes, is amended to read:
  538         489.147 Prohibited property insurance practices.—
  539         (1) As used in this section, the term:
  540         (a) “Prohibited advertisement” means any written or
  541  electronic communication by a contractor which that encourages,
  542  instructs, or induces a consumer to contact a contractor or
  543  public adjuster for the purpose of making an insurance claim for
  544  roof damage, if such communication does not state in a font size
  545  of at least 12 points and at least half as large as the largest
  546  font size used in the communication that:
  547         1.The consumer is responsible for payment of any insurance
  548  deductible;
  549         2.It is insurance fraud punishable as a felony of the
  550  third degree for a contractor to knowingly or willfully, and
  551  with intent to injure, defraud, or deceive, pay, waive, or
  552  rebate all or part of an insurance deductible applicable to
  553  payment to the contractor for repairs to a property covered by a
  554  property insurance policy; and
  555         3.It is insurance fraud punishable as a felony of the
  556  third degree to intentionally file an insurance claim containing
  557  any false, incomplete, or misleading information.
  558  
  559  The term includes, but is not limited to, door hangers, business
  560  cards, magnets, flyers, pamphlets, and e-mails.
  561         Section 6. Section 624.1551, Florida Statutes, is created
  562  to read:
  563         624.1551 Civil remedy actions against property insurers.
  564  Notwithstanding any provision of s. 624.155, a claimant must
  565  establish that the property insurer breached the insurance
  566  contract to prevail in a claim for extracontractual damages
  567  under s. 624.155(1)(b).
  568         Section 7. Subsection (4) of section 624.307, Florida
  569  Statutes, is amended to read:
  570         624.307 General powers; duties.—
  571         (4) The department and office may each collect, propose,
  572  publish, and disseminate information relating to the subject
  573  matter of any duties imposed upon it by law.
  574         (a) Aggregate information may include information asserted
  575  as trade secret information unless the trade secret information
  576  can be individually extrapolated, in which case the trade secret
  577  information remains protected as provided under s. 624.4213.
  578         (b)The office shall publish all orders, data required by
  579  ss. 624.313, 624.315, and 627.915, reports required by s.
  580  627.7154(3), and all reports that are not confidential and
  581  exempt on its website in a timely fashion.
  582         Section 8. Subsection (1) of section 624.313, Florida
  583  Statutes, is amended to read:
  584         624.313 Publications.—
  585         (1) As early as reasonably possible and no later than July
  586  1 of each year, the office shall annually have printed and made
  587  available a statistical report which must include all of the
  588  following information on either a calendar year or fiscal year
  589  basis:
  590         (a) A summary of all information reported to the office
  591  under s. 627.915(1).
  592         (b) The total amount of premiums written and earned by line
  593  of insurance.
  594         (c) The total amount of losses paid and losses incurred by
  595  line of insurance.
  596         (d) The ratio of premiums written to losses paid by line of
  597  insurance.
  598         (e) The ratio of premiums earned to losses incurred by line
  599  of insurance.
  600         (f) The market share of the 10 largest insurers or insurer
  601  groups by line of insurance and of each insurer or insurer group
  602  that has a market share of at least 1 percent of a line of
  603  insurance in this state.
  604         (g) The profitability of each major line of insurance.
  605         (h) An analysis of the impact of the insurance industry on
  606  the economy of the state.
  607         (i) A complaint ratio by line of insurance for the insurers
  608  referred to in paragraph (f), based upon information provided to
  609  the office by the department. The office shall determine the
  610  most appropriate ratio or ratios for quantifying complaints.
  611         (j) An analysis of such lines or kinds of insurance for
  612  which the office determines that an availability problem exists
  613  in this state, and an analysis of the availability of
  614  reinsurance to domestic insurers selling homeowners’ and
  615  condominium unit owners’ insurance in this state.
  616         (k) A summary of the findings of market examinations
  617  performed by the office under s. 624.3161 during the preceding
  618  year.
  619         (l) Such other information as the office deems relevant.
  620         Section 9. Paragraph (c) of subsection (1) and paragraph
  621  (n) of subsection (2) of section 624.315, Florida Statutes, is
  622  amended to read:
  623         624.315 Department; annual report.—
  624         (1) As early as reasonably possible, the office, with such
  625  assistance from the department as requested, shall annually
  626  prepare a report to the Speaker and Minority Leader of the House
  627  of Representatives, the President and Minority Leader of the
  628  Senate, the chairs of the legislative committees with
  629  jurisdiction over matters of insurance, and the Governor
  630  showing, with respect to the preceding calendar year:
  631         (c) Names of insurers against which delinquency or similar
  632  proceedings were instituted, including the date that each
  633  insurer was deemed impaired of capital or surplus, as the terms
  634  impairment of capital and impairment of surplus are defined in
  635  s. 631.011, or insolvent, as the term insolvency is defined in
  636  s. 631.011; and a concise statement of the circumstances that
  637  led to each insurer’s delinquency; a summary of the actions
  638  taken by the insurer and the office to avoid delinquency; and
  639  the results or status of each such proceeding.
  640         (2) The office shall maintain the following information and
  641  make such information available upon request:
  642         (n) Trends; emerging trends as exemplified by the
  643  percentage change in frequency and severity of both paid and
  644  incurred claims, and pure premium (Florida and countrywide).
  645  Reports relating to the health of the homeowners’ and
  646  condominium unit owners’ insurance market must include the
  647  percentage of policies written by voluntary carriers, the
  648  percentage of policies written by the Citizens Property
  649  Insurance Corporation, and any trends related to the relative
  650  shares of the voluntary and residual markets.
  651         Section 10. Subsection (10) of section 624.424, Florida
  652  Statutes, is amended to read:
  653         624.424 Annual statement and other information.—
  654         (10)(a) Each insurer or insurer group doing business in
  655  this state shall file on a quarterly basis in conjunction with
  656  financial reports required by paragraph (1)(a) a supplemental
  657  report on an individual and group basis on a form prescribed by
  658  the commission with information on personal lines and commercial
  659  lines residential property insurance policies in this state. The
  660  supplemental report shall include separate information for
  661  personal lines property policies and for commercial lines
  662  property policies and totals for each item specified, including
  663  premiums written for each of the property lines of business as
  664  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
  665  shall include the following information for each county on a
  666  monthly basis:
  667         1.(a) Total number of policies in force at the end of each
  668  month.
  669         2.(b) Total number of policies canceled.
  670         3.(c) Total number of policies nonrenewed.
  671         4.(d) Number of policies canceled due to hurricane risk.
  672         5.(e) Number of policies nonrenewed due to hurricane risk.
  673         6.(f) Number of new policies written.
  674         7.(g) Total dollar value of structure exposure under
  675  policies that include wind coverage.
  676         8.(h) Number of policies that exclude wind coverage.
  677         (b)The office shall aggregate on a statewide basis the
  678  data submitted by each insurer or insurer group under paragraph
  679  (a) and make such data publicly available by publishing such
  680  data on the office’s website within 1 month after each quarterly
  681  and annual filing. Such information, when aggregated on a
  682  statewide basis as to an individual insurer or insurer group, is
  683  not a trade secret as defined in s. 688.002(4) or s. 812.081 and
  684  is not subject to the public records exemption for trade secrets
  685  provided in s. 119.0715.
  686         Section 11. Section 626.9373, Florida Statutes, is amended
  687  to read:
  688         626.9373 Attorney fees.—
  689         (1) Upon the rendition of a judgment or decree by any court
  690  of this state against a surplus lines insurer in favor of any
  691  named or omnibus insured or the named beneficiary under a policy
  692  or contract executed by the insurer on or after the effective
  693  date of this act, the trial court or, if the insured or
  694  beneficiary prevails on appeal, the appellate court, shall
  695  adjudge or decree against the insurer in favor of the insured or
  696  beneficiary a reasonable sum as fees or compensation for the
  697  insured’s or beneficiary’s attorney prosecuting the lawsuit for
  698  which recovery is awarded. In a suit arising under a residential
  699  or commercial property insurance policy not brought by an
  700  assignee, the amount of reasonable attorney fees shall be
  701  awarded only as provided in s. 57.105 or s. 627.70152, as
  702  applicable.
  703         (2) If awarded, attorney fees or compensation shall be
  704  included in the judgment or decree rendered in the case.
  705         (3) In a suit arising under a residential or commercial
  706  property insurance policy, the right to attorney fees under this
  707  section may not be transferred to, assigned to, or acquired in
  708  any other manner by anyone other than a named or omnibus insured
  709  or a named beneficiary.
  710         Section 12. Section 627.428, Florida Statutes, is amended
  711  to read:
  712         627.428 Attorney fees.—
  713         (1) Upon the rendition of a judgment or decree by any of
  714  the courts of this state against an insurer and in favor of any
  715  named or omnibus insured or the named beneficiary under a policy
  716  or contract executed by the insurer, the trial court or, in the
  717  event of an appeal in which the insured or beneficiary prevails,
  718  the appellate court shall adjudge or decree against the insurer
  719  and in favor of the insured or beneficiary a reasonable sum as
  720  fees or compensation for the insured’s or beneficiary’s attorney
  721  prosecuting the suit in which the recovery is had. In a suit
  722  arising under a residential or commercial property insurance
  723  policy not brought by an assignee, the amount of reasonable
  724  attorney fees shall be awarded only as provided in s. 57.105 or
  725  s. 627.70152, as applicable.
  726         (2) As to suits based on claims arising under life
  727  insurance policies or annuity contracts, no such attorney fees
  728  shall be allowed if such suit was commenced prior to expiration
  729  of 60 days after proof of the claim was duly filed with the
  730  insurer.
  731         (3) When so awarded, compensation or fees of the attorney
  732  shall be included in the judgment or decree rendered in the
  733  case.
  734         (4) In a suit arising under a residential or commercial
  735  property insurance policy, the right to attorney fees under this
  736  section may not be transferred to, assigned to, or acquired in
  737  any other manner by anyone other than a named or omnibus insured
  738  or a named beneficiary.
  739         Section 13. Paragraph (d) of subsection (4) of section
  740  627.701, Florida Statutes, is amended, paragraph (c) of
  741  subsection (2), paragraph (e) of subsection (4), and subsection
  742  (10) are added to that section, and subsection (7) of that
  743  section is republished, to read:
  744         627.701 Liability of insureds; coinsurance; deductibles.—
  745         (2) Unless the office determines that the deductible
  746  provision is clear and unambiguous, a property insurer may not
  747  issue an insurance policy or contract covering real property in
  748  this state which contains a deductible provision that:
  749         (c)Applies solely to a roof loss as provided in subsection
  750  (10).
  751         (4)
  752         (d)1. A personal lines residential property insurance
  753  policy covering a risk valued at less than $500,000 may not have
  754  a hurricane deductible in excess of 10 percent of the policy
  755  dwelling limits, unless the following conditions are met:
  756         a. The policyholder must personally write or type and
  757  provide to the insurer the following statement in his or her own
  758  handwriting and sign his or her name, which must also be signed
  759  by every other named insured on the policy, and dated: “I do not
  760  want the insurance on my home to pay for the first (specify
  761  dollar value) of damage from hurricanes. I will pay those costs.
  762  My insurance will not.”
  763         b. If the structure insured by the policy is subject to a
  764  mortgage or lien, the policyholder must provide the insurer with
  765  a written statement from the mortgageholder or lienholder
  766  indicating that the mortgageholder or lienholder approves the
  767  policyholder electing to have the specified deductible.
  768         2. A deductible subject to the requirements of this
  769  paragraph applies for the term of the policy and for each
  770  renewal thereafter. Changes to the deductible percentage may be
  771  implemented only as of the date of renewal.
  772         3. An insurer shall keep the original copy of the signed
  773  statement required by this paragraph, electronically or
  774  otherwise, and provide a copy to the policyholder providing the
  775  signed statement. A signed statement meeting the requirements of
  776  this paragraph creates a presumption that there was an informed,
  777  knowing election of coverage.
  778         4. The commission shall adopt rules providing appropriate
  779  alternative methods for providing the statements required by
  780  this section for policyholders who have a handicapping or
  781  disabling condition that prevents them from providing a
  782  handwritten statement.
  783         (e)1.A personal lines residential property insurance
  784  policy that contains a separate roof deductible must include, on
  785  the page immediately behind the declarations page, with no other
  786  policy language on the page, in boldfaced type no smaller than
  787  18 point, the following statement: “YOU ARE ELECTING TO PURCHASE
  788  COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR
  789  ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT-OF
  790  POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE
  791  AGENT.”
  792         2.For any personal lines residential property insurance
  793  policy containing a separate roof deductible, the insurer shall
  794  compute and prominently display on the declarations page of the
  795  policy or on the premium renewal notice the actual dollar value
  796  of the roof deductible of the policy at issuance and renewal.
  797         (7) Prior to issuing a personal lines residential property
  798  insurance policy on or after April 1, 1997, or prior to the
  799  first renewal of a residential property insurance policy on or
  800  after April 1, 1997, the insurer must offer a deductible equal
  801  to $500 applicable to losses from perils other than hurricane.
  802  The insurer must provide the policyholder with notice of the
  803  availability of the deductible specified in this subsection in a
  804  form approved by the office at least once every 3 years. The
  805  failure to provide such notice constitutes a violation of this
  806  code but does not affect the coverage provided under the policy.
  807  An insurer may require a higher deductible only as part of a
  808  deductible program lawfully in effect on June 1, 1996, or as
  809  part of a similar deductible program.
  810         (10)(a)Notwithstanding any other provision of law, an
  811  insurer issuing a personal lines residential property insurance
  812  policy may include in such policy a separate roof deductible
  813  that meets all of the following requirements:
  814         1.The insurer has complied with the offer requirements
  815  under subsection (7) regarding a deductible applicable to losses
  816  from perils other than a hurricane.
  817         2.The roof deductible may not exceed the lesser of 2
  818  percent of the coverage A limit of the policy or 50 percent of
  819  the cost to replace the roof.
  820         3.The premium that a policyholder is charged for the
  821  policy includes an actuarially sound credit or premium discount
  822  for the roof deductible.
  823         4.The roof deductible applies only to a claim adjusted on
  824  a replacement cost basis.
  825         5.The roof deductible does not apply to any of the
  826  following events:
  827         a.A total loss to a primary structure in accordance with
  828  the valued policy law under s. 627.702 which is caused by a
  829  covered peril.
  830         b.A roof loss resulting from a hurricane as defined in s.
  831  627.4025(2)(c).
  832         c.A roof loss resulting from a tree fall or other hazard
  833  that damages the roof and punctures the roof deck.
  834         d.A roof loss requiring the repair of less than 50 percent
  835  of the roof.
  836  
  837  If a roof deductible is applied, no other deductible under the
  838  policy may be applied to the loss.
  839         (b) At the time of initial issuance of a personal lines
  840  residential property insurance policy, an insurer may offer the
  841  policyholder a separate roof deductible with the ability to opt
  842  out and reject the separate roof deductible. To reject a
  843  separate roof deductible, the policyholder shall sign a form
  844  approved by the office.
  845         (c) At the time of renewal, an insurer may add a separate
  846  roof deductible to a personal lines residential property
  847  insurance policy if the insurer provides a notice of change in
  848  policy terms pursuant to s. 627.43141. The insurer must also
  849  offer the policyholder the ability to opt-out and reject the
  850  separate roof deductible. To reject a separate roof deductible,
  851  the policyholder shall sign a form approved by the office.
  852         (d)The office shall expedite the review of any filing of
  853  insurance forms that only contain a separate roof deductible
  854  pursuant to this subsection. The commission may adopt model
  855  forms or guidelines that provide options for roof deductible
  856  language which may be used for filing by insurers. If an insurer
  857  makes a filing pursuant to a model form or guideline issued by
  858  the office, the office must review the filing within the initial
  859  30-day review period authorized by s. 627.410(2), and the roof
  860  deductible portion of the filing is not subject to the 15-day
  861  extension for review under that subsection.
  862         Section 14. Present subsection (5) of section 627.7011,
  863  Florida Statutes is redesignated as subsection (6), a new
  864  subsection (5) is added to that subsection, and paragraph (a) of
  865  subsection (3) of that section is amended, to read:
  866         627.7011 Homeowners’ policies; offer of replacement cost
  867  coverage and law and ordinance coverage.—
  868         (3) In the event of a loss for which a dwelling or personal
  869  property is insured on the basis of replacement costs:
  870         (a) For a dwelling, the insurer must initially pay at least
  871  the actual cash value of the insured loss, less any applicable
  872  deductible. The insurer shall pay any remaining amounts
  873  necessary to perform such repairs as work is performed and
  874  expenses are incurred. However, if a roof deductible under s.
  875  627.701(10) is applied to the insured loss, the insurer may
  876  limit the claim payment as to the roof to the actual cash value
  877  of the loss to the roof until the insurer receives reasonable
  878  proof of payment by the policyholder of the roof deductible.
  879  Reasonable proof of payment includes a canceled check, money
  880  order receipt, credit card statement, or copy of an executed
  881  installment plan contract or other financing arrangement that
  882  requires full payment of the deductible over time. If a total
  883  loss of a dwelling occurs, the insurer must shall pay the
  884  replacement cost coverage without reservation or holdback of any
  885  depreciation in value, pursuant to s. 627.702.
  886         (5)(a)As used in this subsection, the term “authorized
  887  inspector” means an inspector who is approved by the insurer and
  888  who is:
  889         1.A home inspector licensed under s. 468.8314;
  890         2.A building code inspector certified under s. 468.607;
  891         3.A general, building, or residential contractor licensed
  892  under s. 489.111;
  893         4.A professional engineer licensed under s. 471.015;
  894         5.A professional architect licensed under s. 481.213; or
  895         6.Any other individual or entity recognized by the insurer
  896  as possessing the necessary qualifications to properly complete
  897  a general inspection of a residential structure insured with a
  898  homeowner’s insurance policy.
  899         (b)An insurer may not refuse to issue or refuse to renew a
  900  homeowner’s policy insuring a residential structure with a roof
  901  that is less than 15 years old solely because of the age of the
  902  roof.
  903         (c)For a roof that is at least 15 years old, an insurer
  904  must allow a homeowner to have a roof inspection performed by an
  905  authorized inspector at the homeowner’s expense before requiring
  906  the replacement of the roof of a residential structure as a
  907  condition of issuing or renewing a homeowner’s insurance policy.
  908  The insurer may not refuse to issue or refuse to renew a
  909  homeowner’s insurance policy solely because of roof age if an
  910  inspection of the roof of the residential structure performed by
  911  an authorized inspector indicates that the roof has 5 years or
  912  more of useful life remaining.
  913         (d)This subsection applies to homeowners’ insurance
  914  policies issued or renewed on or after July 1, 2022.
  915         Section 15. Effective January 1, 2023, subsection (3) and
  916  paragraph (a) of subsection (7) of section 627.70131, Florida
  917  Statutes, are amended to read:
  918         627.70131 Insurer’s duty to acknowledge communications
  919  regarding claims; investigation.—
  920         (3)(a) Unless otherwise provided by the policy of insurance
  921  or by law, within 14 days after an insurer receives proof of
  922  loss statements, the insurer shall begin such investigation as
  923  is reasonably necessary unless the failure to begin such
  924  investigation is caused by factors beyond the control of the
  925  insurer which reasonably prevent the commencement of such
  926  investigation.
  927         (b) If such investigation involves a physical inspection of
  928  the property, the licensed adjuster assigned by the insurer must
  929  provide the policyholder with a printed or electronic document
  930  containing his or her name and state adjuster license number.
  931  For claims other than those subject to a hurricane deductible,
  932  an insurer must conduct any such physical inspection within 45
  933  days after its receipt of the proof of loss statements.
  934         (c) Any subsequent communication with the policyholder
  935  regarding the claim must also include the name and license
  936  number of the adjuster communicating about the claim.
  937  Communication of the adjuster’s name and license number may be
  938  included with other information provided to the policyholder.
  939         (d)Within 7 days after the insurer’s assignment of an
  940  adjuster to the claim, the insurer must notify the policyholder
  941  that he or she may request a copy of any detailed estimate of
  942  the amount of the loss generated by an insurer’s adjuster. After
  943  receiving such a request from the policyholder, the insurer must
  944  send any such detailed estimate to the policyholder within the
  945  later of 7 days after the insurer received the request or 7 days
  946  after the detailed estimate of the amount of the loss is
  947  completed. This paragraph does not require that an insurer
  948  create a detailed estimate of the amount of the loss if such
  949  estimate is not reasonably necessary as part of the claim
  950  investigation.
  951         (7)(a) Within 90 days after an insurer receives notice of
  952  an initial, reopened, or supplemental property insurance claim
  953  from a policyholder, the insurer shall pay or deny such claim or
  954  a portion of the claim unless the failure to pay is caused by
  955  factors beyond the control of the insurer which reasonably
  956  prevent such payment. The insurer shall provide a reasonable
  957  explanation in writing to the policyholder of the basis in the
  958  insurance policy, in relation to the facts or applicable law,
  959  for the payment, denial, or partial denial of a claim. If the
  960  insurer’s claim payment is less than specified in any insurer’s
  961  detailed estimate of the amount of the loss, the insurer must
  962  provide a reasonable explanation in writing of the difference to
  963  the policyholder. Any payment of an initial or supplemental
  964  claim or portion of such claim made 90 days after the insurer
  965  receives notice of the claim, or made more than 15 days after
  966  there are no longer factors beyond the control of the insurer
  967  which reasonably prevented such payment, whichever is later,
  968  bears interest at the rate set forth in s. 55.03. Interest
  969  begins to accrue from the date the insurer receives notice of
  970  the claim. The provisions of this subsection may not be waived,
  971  voided, or nullified by the terms of the insurance policy. If
  972  there is a right to prejudgment interest, the insured must shall
  973  select whether to receive prejudgment interest or interest under
  974  this subsection. Interest is payable when the claim or portion
  975  of the claim is paid. Failure to comply with this subsection
  976  constitutes a violation of this code. However, failure to comply
  977  with this subsection does not form the sole basis for a private
  978  cause of action.
  979         Section 16. Paragraph (d) of subsection (2) and subsection
  980  (8) of section 627.70152, Florida Statutes, are amended to read:
  981         627.70152 Suits arising under a property insurance policy.—
  982         (2) DEFINITIONS.—As used in this section, the term:
  983         (d) “Presuit settlement demand” means the demand made by
  984  the claimant in the written notice of intent to initiate
  985  litigation as required by paragraph (3)(a) (3)(e). The demand
  986  must include the amount of reasonable and necessary attorney
  987  fees and costs incurred by the claimant, to be calculated by
  988  multiplying the number of hours actually worked on the claim by
  989  the claimant’s attorney as of the date of the notice by a
  990  reasonable hourly rate.
  991         (8) ATTORNEY FEES.—
  992         (a) In a suit arising under a residential or commercial
  993  property insurance policy not brought by an assignee, the amount
  994  of reasonable attorney fees and costs under s. 626.9373(1) or s.
  995  627.428(1) shall be calculated and awarded as follows:
  996         1. If the difference between the amount obtained by the
  997  claimant and the presuit settlement offer, excluding reasonable
  998  attorney fees and costs, is less than 20 percent of the disputed
  999  amount, each party pays its own attorney fees and costs and a
 1000  claimant may not be awarded attorney fees under s. 626.9373(1)
 1001  or s. 627.428(1).
 1002         2. If the difference between the amount obtained by the
 1003  claimant and the presuit settlement offer, excluding reasonable
 1004  attorney fees and costs, is at least 20 percent but less than 50
 1005  percent of the disputed amount, the insurer pays the claimant’s
 1006  attorney fees and costs under s. 626.9373(1) or s. 627.428(1)
 1007  equal to the percentage of the disputed amount obtained times
 1008  the total attorney fees and costs.
 1009         3. If the difference between the amount obtained by the
 1010  claimant and the presuit settlement offer, excluding reasonable
 1011  attorney fees and costs, is at least 50 percent of the disputed
 1012  amount, the insurer pays the claimant’s full attorney fees and
 1013  costs under s. 626.9373(1) or s. 627.428(1).
 1014         (b) In a suit arising under a residential or commercial
 1015  property insurance policy not brought by an assignee, if a court
 1016  dismisses a claimant’s suit pursuant to subsection (5), the
 1017  court may not award to the claimant any incurred attorney fees
 1018  for services rendered before the dismissal of the suit. When a
 1019  claimant’s suit is dismissed pursuant to subsection (5), the
 1020  court may award to the insurer reasonable attorney fees and
 1021  costs associated with securing the dismissal.
 1022         (c)In awarding attorney fees under this subsection, a
 1023  strong presumption is created that a lodestar fee is sufficient
 1024  and reasonable. Such presumption may be rebutted only in a rare
 1025  and exceptional circumstance with evidence that competent
 1026  counsel could not be retained in a reasonable manner.
 1027         Section 17. Section 627.7142, Florida Statutes, is amended
 1028  to read:
 1029         627.7142 Homeowner Claims Bill of Rights.—An insurer
 1030  issuing a personal lines residential property insurance policy
 1031  in this state must provide a Homeowner Claims Bill of Rights to
 1032  a policyholder within 14 days after receiving an initial
 1033  communication with respect to a claim. The purpose of the bill
 1034  of rights is to summarize, in simple, nontechnical terms,
 1035  existing Florida law regarding the rights of a personal lines
 1036  residential property insurance policyholder who files a claim of
 1037  loss. The Homeowner Claims Bill of Rights is specific to the
 1038  claims process and does not represent all of a policyholder’s
 1039  rights under Florida law regarding the insurance policy. The
 1040  Homeowner Claims Bill of Rights does not create a civil cause of
 1041  action by any individual policyholder or class of policyholders
 1042  against an insurer or insurers. The failure of an insurer to
 1043  properly deliver the Homeowner Claims Bill of Rights is subject
 1044  to administrative enforcement by the office but is not
 1045  admissible as evidence in a civil action against an insurer. The
 1046  Homeowner Claims Bill of Rights does not enlarge, modify, or
 1047  contravene statutory requirements, including, but not limited
 1048  to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
 1049  and does not prohibit an insurer from exercising its right to
 1050  repair damaged property in compliance with the terms of an
 1051  applicable policy or ss. 627.7011(6)(e) 627.7011(5)(e) and
 1052  627.702(7). The Homeowner Claims Bill of Rights must state:
 1053  
 1054                          HOMEOWNER CLAIMS                         
 1055                           BILL OF RIGHTS                          
 1056         This Bill of Rights is specific to the claims process
 1057         and does not represent all of your rights under
 1058         Florida law regarding your policy. There are also
 1059         exceptions to the stated timelines when conditions are
 1060         beyond your insurance company’s control. This document
 1061         does not create a civil cause of action by an
 1062         individual policyholder, or a class of policyholders,
 1063         against an insurer or insurers and does not prohibit
 1064         an insurer from exercising its right to repair damaged
 1065         property in compliance with the terms of an applicable
 1066         policy.
 1067  
 1068         YOU HAVE THE RIGHT TO:
 1069         1. Receive from your insurance company an
 1070         acknowledgment of your reported claim within 14 days
 1071         after the time you communicated the claim.
 1072         2. Upon written request, receive from your
 1073         insurance company within 30 days after you have
 1074         submitted a complete proof-of-loss statement to your
 1075         insurance company, confirmation that your claim is
 1076         covered in full, partially covered, or denied, or
 1077         receive a written statement that your claim is being
 1078         investigated.
 1079         3. Within 90 days, subject to any dual interest
 1080         noted in the policy, receive full settlement payment
 1081         for your claim or payment of the undisputed portion of
 1082         your claim, or your insurance company’s denial of your
 1083         claim.
 1084         4. Receive payment of interest, as provided in s.
 1085         627.70131, Florida Statutes, from your insurance
 1086         company, which begins accruing from the date your
 1087         claim is filed if your insurance company does not pay
 1088         full settlement of your initial, reopened, or
 1089         supplemental claim or the undisputed portion of your
 1090         claim or does not deny your claim within 90 days after
 1091         your claim is filed. The interest, if applicable, must
 1092         be paid when your claim or the undisputed portion of
 1093         your claim is paid.
 1094         5. Free mediation of your disputed claim by the
 1095         Florida Department of Financial Services, Division of
 1096         Consumer Services, under most circumstances and
 1097         subject to certain restrictions.
 1098         6. Neutral evaluation of your disputed claim, if
 1099         your claim is for damage caused by a sinkhole and is
 1100         covered by your policy.
 1101         7. Contact the Florida Department of Financial
 1102         Services, Division of Consumer Services’ toll-free
 1103         helpline for assistance with any insurance claim or
 1104         questions pertaining to the handling of your claim.
 1105         You can reach the Helpline by phone at ...(toll-free
 1106         phone number)..., or you can seek assistance online at
 1107         the Florida Department of Financial Services, Division
 1108         of Consumer Services’ website at ...(website
 1109         address)....
 1110  
 1111         YOU ARE ADVISED TO:
 1112         1. File all claims directly with your insurance
 1113         company.
 1114         2. Contact your insurance company before entering
 1115         into any contract for repairs to confirm any managed
 1116         repair policy provisions or optional preferred
 1117         vendors.
 1118         3. Make and document emergency repairs that are
 1119         necessary to prevent further damage. Keep the damaged
 1120         property, if feasible, keep all receipts, and take
 1121         photographs or video of damage before and after any
 1122         repairs to provide to your insurer.
 1123         4. Carefully read any contract that requires you
 1124         to pay out-of-pocket expenses or a fee that is based
 1125         on a percentage of the insurance proceeds that you
 1126         will receive for repairing or replacing your property.
 1127         5. Confirm that the contractor you choose is
 1128         licensed to do business in Florida. You can verify a
 1129         contractor’s license and check to see if there are any
 1130         complaints against him or her by calling the Florida
 1131         Department of Business and Professional Regulation.
 1132         You should also ask the contractor for references from
 1133         previous work.
 1134         6. Require all contractors to provide proof of
 1135         insurance before beginning repairs.
 1136         7. Take precautions if the damage requires you to
 1137         leave your home, including securing your property and
 1138         turning off your gas, water, and electricity, and
 1139         contacting your insurance company and provide a phone
 1140         number where you can be reached.
 1141         Section 18. Subsection (1), paragraph (a) of subsection
 1142  (2), subsection (8), paragraph (a) of subsection (9), and
 1143  subsection (10) of section 627.7152, Florida Statutes, are
 1144  amended to read:
 1145         627.7152 Assignment agreements.—
 1146         (1) As used in this section, the term:
 1147         (a) “Assignee” means a person who is assigned post-loss
 1148  benefits through an assignment agreement.
 1149         (b) “Assignment agreement” means any instrument by which
 1150  post-loss benefits under a residential property insurance policy
 1151  or commercial property insurance policy, as that term is defined
 1152  in s. 627.0625(1), are assigned or transferred, or acquired in
 1153  any manner, in whole or in part, to or from a person providing
 1154  services, including, but not limited to, inspecting, protecting,
 1155  repairing, restoring, or replacing the to protect, repair,
 1156  restore, or replace property or mitigating to mitigate against
 1157  further damage to the property. The term does not include fees
 1158  collected by a public adjuster as defined in s. 626.854(1).
 1159         (c) “Assignor” means a person who assigns post-loss
 1160  benefits under a residential property insurance policy or
 1161  commercial property insurance policy to another person through
 1162  an assignment agreement.
 1163         (d) “Disputed amount” means the difference between the
 1164  assignee’s presuit settlement demand and the insurer’s presuit
 1165  settlement offer.
 1166         (e) “Judgment obtained” means damages recovered, if any,
 1167  but does not include any amount awarded for attorney fees,
 1168  costs, or interest.
 1169         (f) “Presuit settlement demand” means the demand made by
 1170  the assignee in the written notice of intent to initiate
 1171  litigation as required by paragraph (9)(a).
 1172         (e)(g) “Presuit settlement offer” means the offer made by
 1173  the insurer in its written response to the notice of intent to
 1174  initiate litigation as required by paragraph (9)(b).
 1175         (2)(a) An assignment agreement must:
 1176         1. Be in writing and executed by and between the assignor
 1177  and the assignee.
 1178         2. Contain a provision that allows the assignor to rescind
 1179  the assignment agreement without a penalty or fee by submitting
 1180  a written notice of rescission signed by the assignor to the
 1181  assignee within 14 days after the execution of the agreement, at
 1182  least 30 days after the date work on the property is scheduled
 1183  to commence if the assignee has not substantially performed, or
 1184  at least 30 days after the execution of the agreement if the
 1185  agreement does not contain a commencement date and the assignee
 1186  has not begun substantial work on the property.
 1187         3. Contain a provision requiring the assignee to provide a
 1188  copy of the executed assignment agreement to the insurer within
 1189  3 business days after the date on which the assignment agreement
 1190  is executed or the date on which work begins, whichever is
 1191  earlier. Delivery of the copy of the assignment agreement to the
 1192  insurer may be made:
 1193         a. By personal service, overnight delivery, or electronic
 1194  transmission, with evidence of delivery in the form of a receipt
 1195  or other paper or electronic acknowledgment by the insurer; or
 1196         b. To the location designated for receipt of such
 1197  agreements as specified in the policy.
 1198         4. Contain a written, itemized, per-unit cost estimate of
 1199  the services to be performed by the assignee.
 1200         5. Relate only to work to be performed by the assignee for
 1201  services to protect, repair, restore, or replace a dwelling or
 1202  structure or to mitigate against further damage to such
 1203  property.
 1204         6. Contain the following notice in 18-point uppercase and
 1205  boldfaced type:
 1206  
 1207         YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE
 1208         UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH
 1209         MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE
 1210         READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT.
 1211         YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT
 1212         PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT
 1213         IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON
 1214         THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE
 1215         HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS
 1216         AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT
 1217         DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE
 1218         HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY.
 1219         HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY
 1220         CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS
 1221         RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR
 1222         OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR
 1223         PROPERTY INSURANCE POLICY.
 1224  
 1225         7. Contain a provision requiring the assignee to indemnify
 1226  and hold harmless the assignor from all liabilities, damages,
 1227  losses, and costs, including, but not limited to, attorney fees,
 1228  should the policy subject to the assignment agreement prohibit,
 1229  in whole or in part, the assignment of benefits.
 1230         (8) The assignee shall indemnify and hold harmless the
 1231  assignor from all liabilities, damages, losses, and costs,
 1232  including, but not limited to, attorney fees, should the policy
 1233  subject to the assignment agreement prohibit, in whole or in
 1234  part, the assignment of benefits.
 1235         (9)(a) An assignee must provide the named insured, insurer,
 1236  and the assignor, if not the named insured, with a written
 1237  notice of intent to initiate litigation before filing suit under
 1238  the policy. Such notice must be served at least 10 business days
 1239  before filing suit, but not before the insurer has made a
 1240  determination of coverage under s. 627.70131. The notice must be
 1241  served by certified mail, return receipt requested, to the name
 1242  and mailing address designated by the insurer in the policy
 1243  forms or by electronic delivery to the e-mail address designated
 1244  by the insurer in the policy forms at least 10 business days
 1245  before filing suit, but may not be served before the insurer has
 1246  made a determination of coverage under s. 627.70131. The notice
 1247  must specify the damages in dispute, the amount claimed, and a
 1248  presuit settlement demand. Concurrent with the notice, and as a
 1249  precondition to filing suit, the assignee must provide the named
 1250  insured, insurer, and the assignor, if not the named insured, a
 1251  detailed written invoice or estimate of services, including
 1252  itemized information on equipment, materials, and supplies; the
 1253  number of labor hours; and, in the case of work performed, proof
 1254  that the work has been performed in accordance with accepted
 1255  industry standards.
 1256         (10) Notwithstanding any other provision of law, in a suit
 1257  related to an assignment agreement for post-loss claims arising
 1258  under a residential or commercial property insurance policy,
 1259  attorney fees and costs may be recovered by an assignee only
 1260  under s. 57.105 and this subsection.
 1261         (a) If the difference between the judgment obtained by the
 1262  assignee and the presuit settlement offer is:
 1263         1. Less than 25 percent of the disputed amount, the insurer
 1264  is entitled to an award of reasonable attorney fees.
 1265         2. At least 25 percent but less than 50 percent of the
 1266  disputed amount, no party is entitled to an award of attorney
 1267  fees.
 1268         3. At least 50 percent of the disputed amount, the assignee
 1269  is entitled to an award of reasonable attorney fees.
 1270         (b) If the insurer fails to inspect the property or provide
 1271  written or oral authorization for repairs within 7 calendar days
 1272  after the first notice of loss, the insurer waives its right to
 1273  an award of attorney fees under this subsection. If the failure
 1274  to inspect the property or provide written or oral authorization
 1275  for repairs is the result of an event for which the Governor had
 1276  declared a state of emergency under s. 252.36, factors beyond
 1277  the control of the insurer which reasonably prevented an
 1278  inspection or written or oral authorization for repairs, or the
 1279  named insured’s failure or inability to allow an inspection of
 1280  the property after a request by the insurer, the insurer does
 1281  not waive its right to an award of attorney fees under this
 1282  subsection.
 1283         (c) If an assignee commences an action in any court of this
 1284  state based upon or including the same claim against the same
 1285  adverse party that such assignee has previously voluntarily
 1286  dismissed in a court of this state, the court may order the
 1287  assignee to pay the attorney fees and costs of the adverse party
 1288  resulting from the action previously voluntarily dismissed. The
 1289  court shall stay the proceedings in the subsequent action until
 1290  the assignee has complied with the order.
 1291         Section 19. Section 627.7154, Florida Statutes, is created
 1292  to read:
 1293         627.7154 Property Insurance Stability Unit; duties and
 1294  required reports.—
 1295         (1)An insurer stability unit is created within the office
 1296  to aid in the detection and prevention of insurer insolvencies
 1297  in the homeowners’ and condominium unit owners’ insurance
 1298  market.
 1299         (2)The insurer stability unit shall provide enhanced
 1300  monitoring whenever the office identifies significant concerns
 1301  about an insurer’s solvency, rates, proposed contracts,
 1302  underwriting rules, market practices, claims handling, consumer
 1303  complaints, litigation practices and outcomes, and any other
 1304  issue related to compliance with the insurance code.
 1305         (3)The insurer stability unit shall, at a minimum:
 1306         (a)Conduct a target market exam when there is reason to
 1307  believe that an insurer’s claims practices, rate requirements,
 1308  investment activities, or financial statements suggest that the
 1309  insurer may be in an unsound financial condition.
 1310         (b)Closely monitor all risk-based capital reports, own
 1311  risk solvency assessments, reinsurance agreements, and financial
 1312  statements filed by insurers selling homeowners’ and condominium
 1313  unit owners’ insurance policies in this state.
 1314         (c)Have primary responsibility to conduct annual
 1315  catastrophe stress tests of all domestic insurers and insurers
 1316  that are commercially domiciled in this state.
 1317         1.The insurer stability unit shall cooperate with the
 1318  Florida Commission on Hurricane Loss Projection Methodology to
 1319  select the hurricane scenarios that are used in the annual
 1320  catastrophe stress test.
 1321         2.Catastrophe stress testing must determine:
 1322         a.Whether an individual insurer can survive a one in 130
 1323  year probable maximum loss (PML), and a second event 50-year
 1324  return PML following a first event that exceeds a 100-year
 1325  return PML; and
 1326         b.The impact of the selected hurricane scenarios on the
 1327  Citizens Property Insurance Corporation, the Florida Hurricane
 1328  Catastrophe Fund, the Florida Insurance Guaranty Association,
 1329  and taxpayers.
 1330         (d)Update wind mitigation credits required by s. 627.711
 1331  and associated rules.
 1332         (e)Review the causes of insolvency and business practices
 1333  of insurers that have been referred to the department’s Division
 1334  of Rehabilitation and Liquidation and make recommendations to
 1335  prevent similar failures in the future.
 1336         (f)On January 1 and July 1 of each year, provide a report
 1337  on the status of the homeowners’ and condominium unit owners’
 1338  insurance market to the Governor, the President of the Senate,
 1339  the Speaker of the House of Representatives, the Minority Leader
 1340  of the Senate, the Minority Leader of the House of
 1341  Representatives, and the chairs of the legislative committees
 1342  with jurisdiction over matters of insurance showing:
 1343         1.Litigation practices and outcomes of insurance
 1344  companies.
 1345         2.Percentage of homeowners and condominium unit owners who
 1346  obtain insurance in the voluntary market.
 1347         3.Percentage of homeowners and condominium unit owners who
 1348  obtain insurance from the Citizens Property Insurance
 1349  Corporation.
 1350         4.Profitability of the homeowners’ and condominium unit
 1351  owners’ lines of insurance in this state, including a comparison
 1352  with similar lines of insurance in other hurricane-prone states
 1353  and with the national average.
 1354         5.Average premiums charged for homeowners’ and condominium
 1355  unit owners’ insurance in each of the 67 counties in this state.
 1356         6.Results of the latest annual catastrophe stress tests of
 1357  all domestic insurers and insurers that are commercially
 1358  domiciled in this state.
 1359         7.The availability of reinsurance in the personal lines
 1360  insurance market.
 1361         8.The number of property and casualty insurance carriers
 1362  referred to the insurer stability unit for enhanced monitoring,
 1363  including the reason for the referral.
 1364         9.The number of referrals to the insurer stability unit
 1365  which were deemed appropriate for enhanced monitoring, including
 1366  the reason for the monitoring.
 1367         10.The name of any insurer against which delinquency
 1368  proceedings were instituted, including the grounds for
 1369  rehabilitation pursuant to s. 631.051 and the date that each
 1370  insurer was deemed impaired of capital or surplus, as the terms
 1371  impairment of capital and impairment of surplus are defined in
 1372  s. 631.011, or insolvent, as the term insolvency is defined in
 1373  s. 631.011; a concise statement of the circumstances that led to
 1374  the insurer’s delinquency; and a summary of the actions taken by
 1375  the insurer and the office to avoid delinquency.
 1376         11.Recommendations for improvements to the regulation of
 1377  homeowners and condominium unit owners’ insurance market and an
 1378  indication of whether such improvements require any change to
 1379  existing laws or rules.
 1380         12.Identification of any trends that may warrant attention
 1381  in the future.
 1382         (4)Any of the following events must trigger a referral to
 1383  the insurer stability unit:
 1384         (a)Consumer complaints related to homeowners’ insurance or
 1385  condominium unit owners’ insurance under s. 624.307(10), if the
 1386  complaints, in the aggregate, suggest a trend within the
 1387  marketplace and are not an isolated incident.
 1388         (b)There is reason to believe that an insurer who is
 1389  authorized to sell homeowners’ or condominium unit owners’
 1390  insurance in this state has engaged in an unfair trade practice
 1391  under part IX of chapter 626.
 1392         (c)A market conduct examination determines that an insurer
 1393  has exhibited a pattern or practice of willful violations of an
 1394  unfair insurance trade practice related to claims-handling which
 1395  caused harm to policyholders, as prohibited by s.
 1396  626.9541(1)(i).
 1397         (d)An insurer authorized to sell homeowners’ or
 1398  condominium unit owners’ insurance in this state requests a rate
 1399  increase that exceeds 15 percent, in accordance with s.
 1400  627.0629(6).
 1401         (e)An insurer authorized to sell homeowners’ or
 1402  condominium unit owners’ insurance in this state violates the
 1403  ratio of actual or projected annual written premiums required by
 1404  s. 624.4095(4)(a).
 1405         (f)An insurer authorized to sell homeowners’ or
 1406  condominium unit owners’ insurance in this state files a notice
 1407  pursuant to s. 624.4305 advising the office that it intends to
 1408  nonrenew more than 10,000 residential property insurance
 1409  policies in this state within a 12-month period.
 1410         (g)A quarterly or annual financial statement required by
 1411  ss. 624.424 and 627.915 demonstrates that an insurer authorized
 1412  to sell homeowners’ or condominium unit owners’ insurance in
 1413  this state is in an unsound condition, as defined in s.
 1414  624.80(2); has exceeded its powers in a manner as described in
 1415  s. 624.80(3); is impaired, as defined in s. 631.011(12) or (13);
 1416  or is insolvent, as defined in s. 631.011.
 1417         (h)An insurer authorized to sell homeowners’ or
 1418  condominium unit owners’ insurance in this state files a
 1419  quarterly or annual financial statement required by ss. 624.424
 1420  and 627.915 which is misleading or contains material errors.
 1421         (i)An insurer authorized to sell homeowners’ or
 1422  condominium unit owners’ insurance in this state fails to timely
 1423  file a quarterly or annual financial statement required by ss.
 1424  624.424 and 627.915.
 1425         (j)An insurer authorized to sell homeowners’ or
 1426  condominium unit owners’ insurance in this state files a risk
 1427  based capital report that triggers a company action level event,
 1428  regulatory action level event, authorized control level event,
 1429  or mandatory control level event, as those terms are defined in
 1430  s. 624.4085.
 1431         (k)An insurer selling homeowners’ or condominium unit
 1432  owners’ insurance in this state that is subject to the own-risk
 1433  solvency assessment requirement of s. 628.8015, and fails to
 1434  timely file the own-risk solvency assessment.
 1435         (l)A reinsurance agreement creates a substantial risk of
 1436  insolvency for an insurer authorized to sell homeowners’ or
 1437  condominium unit owners’ insurance in this state, pursuant to s.
 1438  624.610(13).
 1439         (m)An insurer authorized to sell homeowners’ or
 1440  condominium unit owners’ insurance in this state is party to a
 1441  reinsurance agreement that does not create a meaningful transfer
 1442  of risk of loss to the reinsurer, pursuant to s. 624.610(14).
 1443         (n)Citizens Property Insurance Corporation is required to
 1444  absorb policies from an insurer that participated in the
 1445  corporation’s depopulation program authorized by s. 627.3511
 1446  within 3 years after the insurer takes policies out of the
 1447  corporation.
 1448  
 1449  The insurer stability unit’s supervisors shall review all
 1450  referrals triggered by the statutory provisions to determine
 1451  whether enhanced scrutiny of the insurer is appropriate.
 1452         (5)Expenses of the insurer stability unit shall be paid
 1453  from moneys allocated to the Insurance Regulatory Trust Fund.
 1454  However, if the unit recommends that a market conduct exam or
 1455  targeted market exam be conducted, the reasonable cost of the
 1456  examination shall be paid by the person examined, in accordance
 1457  with s. 624.3161.
 1458         Section 20. Subsection (1) of section 631.031, Florida
 1459  Statutes, is amended to read:
 1460         631.031 Initiation and commencement of delinquency
 1461  proceeding.—
 1462         (1) Upon a determination by the office that one or more
 1463  grounds for the initiation of delinquency proceedings exist
 1464  pursuant to this chapter and that delinquency proceedings must
 1465  be initiated, the Director of the Office of Insurance Regulation
 1466  shall notify the department of such determination and shall
 1467  provide the department with all necessary documentation and
 1468  evidence. Notification by the office must include an affidavit
 1469  that identifies the grounds for rehabilitation pursuant to s.
 1470  631.051; the date that each insurer was deemed impaired of
 1471  capital or surplus, as the terms impairment of capital and
 1472  impairment of surplus are defined in s. 631.011, or insolvent,
 1473  as the term insolvency is defined in s. 631.011; a concise
 1474  statement of the circumstances that led to the insurer’s
 1475  delinquency; and a summary of the actions taken by the insurer
 1476  and the office to avoid delinquency. The department shall then
 1477  initiate such delinquency proceedings.
 1478         Section 21. Subsection (3) of section 631.398, Florida
 1479  Statutes, is amended to read:
 1480         631.398 Prevention of insolvencies.—To aid in the detection
 1481  and prevention of insurer insolvencies or impairments:
 1482         (3)(a) The department shall, no later than the conclusion
 1483  of any domestic insurer insolvency proceeding, prepare a summary
 1484  report containing such information as is in its possession
 1485  relating to the history and causes of such insolvency, including
 1486  a statement of the business practices of such insurer which led
 1487  to such insolvency.
 1488         (b)For an insolvency involving a domestic property
 1489  insurer, the department shall:
 1490         1.Begin an analysis of the history and causes of the
 1491  insolvency no later than the initiation of delinquency
 1492  proceedings pursuant to s. 631.031.
 1493         2.Submit an initial report analyzing the history and
 1494  causes of the insolvency to the Governor, the President of the
 1495  Senate, the Speaker of the House of Representatives, and the
 1496  office. The initial report must be submitted no later than 2
 1497  months after the initiation of the delinquency proceeding. The
 1498  initial report shall be updated at least annually until the
 1499  submission of the final report.
 1500         3.Provide a special report to the Governor, the President
 1501  of the Senate, the Speaker of the House of Representatives, and
 1502  the office, within 10 days upon identifying any condition or
 1503  practice that may lead to insolvency in the property insurance
 1504  marketplace.
 1505         4.Submit a final report analyzing the history and causes
 1506  of the insolvency and the review of the Office of Insurance
 1507  Regulation’s regulatory oversight of the insurer to the
 1508  Governor, the President of the Senate, the Speaker of the House
 1509  of Representatives, and the office within 30 days of the
 1510  conclusion of the insolvency proceeding.
 1511         5.Review the Office of Insurance Regulation’s regulatory
 1512  oversight of the insurer.
 1513         Section 22. If any law amended by this act was also amended
 1514  by a law enacted during the 2022 Regular Session of the
 1515  Legislature, such laws shall be construed as if enacted during
 1516  the same session of the Legislature, and full effect shall be
 1517  given to each if possible.
 1518         Section 23. Except as otherwise expressly provided in this
 1519  act, this act shall take effect upon becoming a law.