CS for SB 2-D                                    First Engrossed
       
       
       
       
       
       
       
       
       20222De1
       
    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         providing for deferral of coverage under the program;
   20         prohibiting premiums from being charged for
   21         participation in the program; providing that the
   22         program does not affect the claims-paying capacity of
   23         the Florida Hurricane Catastrophe Fund; requiring the
   24         program to pay reimbursements directly to the
   25         applicable state guaranty fund in the event of
   26         insolvency; specifying requirements for the Florida
   27         Hurricane Catastrophe Fund if an insurer or the
   28         Citizens Property Insurance Corporation accept
   29         assignments of unsound insurers; providing that
   30         certain violations are violations of the insurance
   31         code; authorizing the board to enforce certain
   32         requirements; authorizing the board to adopt
   33         nonemergency rules and emergency rules; providing
   34         legislative findings; specifying conditions and
   35         limitations for any emergency rules adopted; providing
   36         legislative intent; requiring the board to submit a
   37         written notice within a certain timeframe to the
   38         Executive Office of the Governor relating to the
   39         program funds, under certain circumstances; providing
   40         a requirement for the notice and subsequent requests;
   41         requiring the Executive Office of the Governor to
   42         instruct the Chief Financial Officer to draw a warrant
   43         for a transfer to the board for the program under
   44         certain circumstances and to provide notification to
   45         specified persons within a certain timeframe;
   46         prohibiting cumulative transfers from exceeding a
   47         specified amount; providing reporting requirements;
   48         providing for expiration and transfer of unencumbered
   49         funds; requiring certain property insurers to reduce
   50         rates to reflect certain cost savings through rate
   51         filings by a specified date; prohibiting such insurers
   52         from making other rate changes; requiring the Office
   53         of Insurance Regulation to expedite the review of
   54         certain filings; amending s. 215.5586, F.S.; revising
   55         homeowner eligibility criteria for mitigation grants;
   56         specifying matching requirements for grants; revising
   57         reporting requirements; providing an appropriation;
   58         requiring the Department of Financial Services to
   59         submit budget amendments; specifying requirements for
   60         budget amendments; providing for reversion and
   61         appropriation of any unexpended balance; authorizing
   62         the Department of Financial Services to adopt
   63         emergency rules; providing legislative findings;
   64         providing that such rules remain in effect until
   65         replaced by rules adopted using nonemergency
   66         rulemaking procedures; providing for expiration;
   67         amending s. 489.147, F.S.; revising the definition of
   68         the term “prohibited advertisement”; creating s.
   69         624.1551, F.S.; requiring claimants to establish that
   70         property insurers have breached the insurance contract
   71         to prevail in certain claims for damages; amending s.
   72         624.307, F.S.; requiring the office to publish certain
   73         information on its website; amending s. 624.313, F.S.;
   74         revising the information the office must include in a
   75         certain annual report; amending s. 624.315, F.S.;
   76         revising the information the office must include in
   77         certain reports; amending s. 624.424, F.S.; requiring
   78         the Office of Insurance Regulation to aggregate on a
   79         statewide basis and make publicly available certain
   80         data submitted by insurers and insurer groups;
   81         specifying requirements for publishing such data;
   82         providing that such information is not a trade secret
   83         and is not subject to a certain public records
   84         exemption; amending s. 626.9373, F.S.; revising
   85         conditions for the award of reasonable attorney fees
   86         to apply to all suits brought under residential or
   87         commercial property insurance policies, rather than
   88         those not brought by assignees; limiting the transfer,
   89         assignment, or acquisition of rights to attorney fees
   90         in certain property insurance suits; amending s.
   91         627.428, F.S.; revising conditions for the award of
   92         reasonable attorney fees to apply to all suits brought
   93         under residential or commercial property insurance
   94         policies, rather than those not brought by assignees;
   95         limiting the transfer, assignment, or acquisition of
   96         rights to attorney fees in certain property insurance
   97         suits; amending s. 627.701, F.S.; revising a
   98         prohibition against the issuance of insurance policies
   99         containing certain deductible provisions; revising the
  100         conditions a personal lines residential property
  101         insurance policy covering certain risks must meet
  102         under certain circumstances; requiring personal lines
  103         residential property insurance policies containing
  104         separate roof deductibles to include specified
  105         information; authorizing property insurers to include
  106         separate roof deductibles if certain requirements are
  107         met; providing requirements for policyholders in
  108         rejecting such deductibles under certain
  109         circumstances; requiring the office to expedite the
  110         review of filing of certain forms; authorizing the
  111         commission to adopt certain model forms or guidelines;
  112         requiring the office to review certain filings within
  113         a specified timeframe; providing that roof deductible
  114         portions of the filing are not subject to a specified
  115         extension for review; amending s. 627.7011, F.S.;
  116         authorizing property insurers to limit certain roof
  117         claim payments under certain circumstances; defining
  118         the term “authorized inspector”; prohibiting insurers
  119         from refusing to issue or renew homeowners’ policies
  120         insuring certain structures; requiring insurers to
  121         allow homeowners to have roof inspections performed
  122         before requiring roof replacement; specifying the
  123         manner of calculating the age of certain roofs;
  124         providing applicability; amending s. 627.70131, F.S.;
  125         requiring insurers to conduct physical inspections for
  126         certain claims within a specified timeframe; requiring
  127         property insurers to notify and provide certain
  128         detailed estimates to policyholders; providing
  129         construction; requiring property insurers to provide
  130         reasonable explanations related to claims under
  131         certain circumstances; amending s. 627.70152, F.S.;
  132         making a technical change; authorizing property
  133         insurers to be awarded attorney fees in certain suit
  134         dismissals; providing that a strong presumption is
  135         created that a lodestar fee is sufficient and
  136         reasonable; providing that such presumption may be
  137         rebutted only under certain circumstances; amending s.
  138         627.7142, F.S.; conforming a cross-reference; amending
  139         s. 627.7152, F.S.; revising the definition of the term
  140         “assignment agreement”; deleting the definitions of
  141         the terms “disputed amount” and “judgment obtained”;
  142         revising a requirement for assignment agreements;
  143         revising the requirement for assignees to indemnify
  144         and hold harmless assignors; specifying a timeframe
  145         during which and the addresses to which a notice of
  146         intent must be served; deleting certain limitations on
  147         the recovery and award of attorney fees in suits
  148         related to assignment agreements; creating s.
  149         627.7154, F.S.; creating a property insurer stability
  150         unit within the office for a specified purpose;
  151         specifying the duties of the unit; requiring the unit
  152         to provide a specified report biannually; specifying
  153         requirements for such report; specifying events that
  154         trigger referrals to the unit; requiring the unit’s
  155         supervisors to review such referrals for a certain
  156         determination; requiring unit expenses be paid from a
  157         specified fund; requiring costs of examinations to be
  158         paid by examined persons in a specified circumstance;
  159         amending s. 631.031, F.S.; requiring certain
  160         notifications by the office to the department of
  161         grounds for delinquency proceedings to include an
  162         affidavit; specifying contents of such affidavit;
  163         amending s. 631.398, F.S.; specifying duties of the
  164         department for insurer insolvency proceedings;
  165         providing for construction of the act in pari materia
  166         with laws enacted during the 2022 Regular Session of
  167         the Legislature; providing effective dates.
  168          
  169  Be It Enacted by the Legislature of the State of Florida:
  170  
  171         Section 1. Section 215.5551, Florida Statutes, is created
  172  to read:
  173         215.5551 Reinsurance to Assist Policyholders program.—
  174         (1)CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS
  175  PROGRAM.—There is created the Reinsurance to Assist
  176  Policyholders program to be administered by the State Board of
  177  Administration.
  178         (2) DEFINITIONS.—As used in this section, the term:
  179         (a)“Board” means the State Board of Administration.
  180         (b)“Contract year” means the period beginning on June 1 of
  181  a specified calendar year and ending on May 31 of the following
  182  calendar year.
  183         (c)“Covered event” means any one storm declared to be a
  184  hurricane by the National Hurricane Center, which storm causes
  185  insured losses in this state.
  186         (d)“Covered policy” has the same meaning as in s.
  187  215.555(2)(c).
  188         (e)“FHCF” means the Florida Hurricane Catastrophe Fund
  189  created under s. 215.555.
  190         (f)“Losses” has the same meaning as in s. 215.555(2)(d).
  191         (g)“RAP” means the Reinsurance to Assist Policyholders
  192  program created by this section.
  193         (h)“RAP insurer” means an insurer that is a participating
  194  insurer in the FHCF on June 1, 2022, which must obtain coverage
  195  under the RAP program and qualifies under subsection (5).
  196  However, any joint underwriting association, risk apportionment
  197  plan, or other entity created under s. 627.351 is not considered
  198  a RAP insurer and is prohibited from obtaining coverage under
  199  the RAP program.
  200         (i)“RAP limit” means, for the 2022-2023 contract year, the
  201  RAP insurer’s maximum payout, which is its share of the $2
  202  billion RAP layer aggregate limit. For the 2023-2024 contract
  203  year, for RAP insurers that are subject to participation
  204  deferral under subsection (6) and participate during the 2023
  205  2024 contract year, the RAP limit means the RAP insurer’s
  206  maximum payout, which is its share of the total amount of the
  207  RAP program layer aggregate limit deferred from 2022-2023.
  208         (j)“RAP qualification ratio” means:
  209         1.For the 2022-2023 contract year, the ratio of FHCF
  210  mandatory premium adjusted to 90 percent for RAP insurers
  211  divided by the FHCF mandatory premium adjusted to 90 percent for
  212  all insurers. The preliminary RAP qualification ratio shall be
  213  based on the 2021-2022 contract year’s company premiums, as of
  214  December 31, 2021, adjusted to 90 percent based on the 2022-2023
  215  contract year coverage selections. The RAP qualification ratio
  216  shall be based on the reported 2022-2023 contract year company
  217  premiums, as of December 31, 2022, adjusted to 90 percent.
  218         2.For the 2023-2024 contract year, the ratio of FHCF
  219  mandatory premium adjusted to 90 percent for the qualified RAP
  220  insurers that have deferred RAP coverage to 2023-2024 divided by
  221  the FHCF mandatory premium adjusted to 90 percent for all
  222  insurers. The preliminary RAP qualification ratio shall be based
  223  on the 2022-2023 contract year’s company premiums as of December
  224  31, 2022, adjusted to 90 percent based on the 2023-2024 contract
  225  year coverage selections. The RAP qualification ratio shall be
  226  based on the reported 2023-2024 contract year company premiums
  227  as of December 31, 2023, adjusted to 90 percent.
  228         (k)“RAP reimbursement contract” means the reimbursement
  229  contract reflecting the obligations of the RAP program to
  230  insurers.
  231         (l) “RAP retention” means the amount of losses below which
  232  a RAP insurer is not entitled to reimbursement under the RAP
  233  program.
  234         (m)“Unsound insurer” means a RAP insurer determined by the
  235  Office of Insurance Regulation to be in unsound condition as
  236  defined in s. 624.80(2) or a RAP insurer placed in receivership
  237  under chapter 631.
  238         (3) COVERAGE.—
  239         (a)As a condition of doing business in this state, each
  240  RAP insurer shall obtain coverage under the RAP program.
  241         (b)The board shall provide a reimbursement layer of $2
  242  billion below the FHCF retention prior to the third event
  243  dropdown of the FHCF retention set forth in s. 215.555(2)(e).
  244  Subject to the mandatory notice provisions in subsection (5),
  245  the board shall enter into a RAP reimbursement contract with
  246  each eligible RAP insurer writing covered policies in this state
  247  to provide to the insurer the reimbursement described in this
  248  section.
  249         (4) RAP REIMBURSEMENT CONTRACTS.—
  250         (a)1. The board shall issue a RAP reimbursement contract to
  251  each eligible RAP insurer which is effective:
  252         a.June 1, 2022, for RAP insurers that participate in the
  253  RAP program during the 2022-2023 contract year; or
  254         b.June 1, 2023, for RAP insurers that are subject to
  255  participation deferral under subsection (6) and participate in
  256  the RAP program during the 2023-2024 contract year.
  257         2.The reimbursement contract shall be executed no later
  258  than:
  259         a.July 15, 2022, for RAP insurers that participate in the
  260  RAP program during the 2022-2023 contract year; or
  261         b.March 1, 2023, for RAP insurers that are subject to
  262  participation deferral under subsection (6) and participate in
  263  the RAP program during the 2023-2024 contract year.
  264         3.If a RAP insurer fails to execute the RAP reimbursement
  265  contract by the dates required in this paragraph, the RAP
  266  insurance contract is deemed to have been executed by the RAP
  267  insurer.
  268         (b) For the two covered events with the largest losses, the
  269  RAP reimbursement contract must contain a promise by the board
  270  to reimburse the RAP insurer for 90 percent of its losses from
  271  each covered event in excess of the insurer’s RAP retention,
  272  plus 10 percent of the reimbursed losses to cover loss
  273  adjustment expenses. The sum of the losses and 10 percent loss
  274  adjustment expense allocation from the RAP layer may not exceed
  275  the RAP limit. Recoveries on losses in the FHCF mandatory layer
  276  shall inure to the benefit of the RAP contract layer.
  277         (c) The RAP reimbursement contract must provide that
  278  reimbursement amounts are not reduced by reinsurance paid or
  279  payable to the insurer from other sources excluding the FHCF.
  280         (d)The board shall calculate and report to each RAP
  281  insurer the RAP payout multiples as the ratio of the RAP
  282  industry limit of $2 billion for the 2022-2023 contract year, or
  283  the deferred limit for the 2022-2023 contract year, to the
  284  mandatory FHCF retention multiplied by the mandatory FHCF
  285  retention multiples divided by the RAP qualification ratio. The
  286  RAP payout multiple for an insurer is multiplied by the RAP
  287  insurer’s FHCF premium to calculate its RAP maximum payout. RAP
  288  payout multiples are calculated for 45 percent, 75 percent, and
  289  90 percent FHCF mandatory coverage selections.
  290         (e) A RAP insurer’s RAP retention is calculated as follows:
  291         1. The board shall calculate and report to each RAP insurer
  292  the RAP retention multiples for each FHCF coverage selection as
  293  the FHCF retention multiple minus the RAP payout multiple. The
  294  RAP retention multiple for an insurer is multiplied by the RAP
  295  insurer’s FHCF premium to calculate its RAP retention. RAP
  296  retention multiples are calculated for 45 percent, 75 percent,
  297  and 90 percent FHCF mandatory coverage selections.
  298         2. The RAP industry retention for the 2022-2023 contract
  299  year is the FHCF’s industry retention minus $2 billion, prior to
  300  allocation to qualifying RAP insurers. The RAP industry
  301  retention for the 2023-2024 contract year is the FHCF’s industry
  302  retention for the 2023-2024 contract year minus the total
  303  deferred RAP limit, prior to allocation to qualifying RAP
  304  insurers.
  305         3. A RAP insurer determines its actual RAP retention by
  306  multiplying its actual mandatory reimbursement FHCF premium by
  307  the RAP retention multiple.
  308         (f)To ensure that insurers have properly reported the
  309  losses for which RAP reimbursements have been made, the board
  310  may inspect, examine, and verify the records of each RAP
  311  insurer’s covered policies at such times as the board deems
  312  appropriate for the specific purpose of validating the accuracy
  313  of losses required to be reported under the terms and conditions
  314  of the RAP reimbursement contract.
  315         (5) INSURER QUALIFICATION.—
  316         (a)An insurer is not eligible to participate in the RAP
  317  program if the board receives a notice from the Commissioner of
  318  Insurance Regulation which certifies that the insurer is in an
  319  unsound financial condition no later than:
  320         1.June 15, 2022, for RAP insurers that participate during
  321  the 2022-2023 contract year; or
  322         2.February 1, 2023, for RAP insurers subject to
  323  participation deferral under subsection (6) and participate
  324  during the 2023-2024 contract year.
  325         (b)The office must make this determination based on the
  326  following factors:
  327         1.The insurer’s compliance with the requirements to
  328  qualify for and hold a certificate of authority under s.
  329  624.404;
  330         2.The insurer’s compliance with the applicable surplus
  331  requirements of s. 624.408;
  332         3.The insurer’s compliance with the applicable risk-based
  333  capital requirements under s. 624.4085;
  334         4.The insurer’s compliance with the applicable premium to
  335  surplus requirements under s. 624.4095; and
  336         5.An analysis of quarterly and annual statements,
  337  including an actuarial opinion summary, and other information
  338  submitted to the office pursuant to s. 624.424.
  339         (c)If the board receives timely notice pursuant to
  340  paragraph (a) regarding an insurer, such insurer is disqualified
  341  from participating in the RAP program.
  342         (6) PARTICIPATION DEFERRAL.—
  343         (a)A RAP insurer that has any private reinsurance that
  344  duplicates RAP coverage that such insurer would receive for the
  345  2022-2023 contract year shall notify the board in writing of
  346  such duplicative coverage no later than June 30, 2022.
  347  Participation in the RAP program for such RAP insurers shall be
  348  deferred until the 2023-2024 contract year.
  349         (b)A new participating insurer that begins writing covered
  350  policies in this state after June 1, 2022, is deemed to defer
  351  its RAP coverage to the 2023-2024 contract year.
  352         (7) RAP PREMIUMS.—Premiums may not be charged for
  353  participation in the RAP program.
  354         (8) CLAIMS-PAYING CAPACITY.—The RAP program shall not
  355  affect the claims-paying capacity of the FHCF as provided in s.
  356  215.555(4)(c)1.
  357         (9)INSOLVENCY OF RAP INSURER.—
  358         (a)The RAP reimbursement contract shall provide that in
  359  the event of an insolvency of a RAP insurer, the RAP program
  360  shall pay reimbursements directly to the applicable state
  361  guaranty fund for the benefit of policyholders in this state of
  362  the RAP insurer.
  363         (b)If an authorized insurer or the Citizens Property
  364  Insurance Corporation accepts an assignment of an unsound RAP
  365  insurer’s RAP contract, the FHCF shall apply the unsound RAP
  366  insurer’s RAP contract to such policies and treat the authorized
  367  insurer or the Citizens Property Insurance Corporation as if it
  368  were the unsound RAP insurer for the remaining term of the RAP
  369  contract, with all rights and duties of the unsound RAP insurer
  370  beginning on the date it provides coverage for such policies.
  371         (10)VIOLATIONS.—Any violation of this section or of rules
  372  adopted under this section constitutes a violation of the
  373  insurance code.
  374         (11)LEGAL PROCEEDINGS.—The board is authorized to take any
  375  action necessary to enforce the rules, provisions, and
  376  requirements of the RAP reimbursement contract, required by and
  377  adopted pursuant to this section.
  378         (12) RULEMAKING.—The board may adopt rules to implement
  379  this section. In addition, the board may adopt emergency rules,
  380  pursuant to s. 120.54, at any time, as are necessary to
  381  implement this section for the 2022-2023 fiscal year. The
  382  Legislature finds that such emergency rulemaking power is
  383  necessary in order to address a critical need in the state’s
  384  problematic property insurance market. The Legislature further
  385  finds that the uniquely short timeframe needed to effectively
  386  implement this section for the 2022-2023 fiscal year requires
  387  that the board adopt rules as quickly as practicable. Therefore,
  388  in adopting such emergency rules, the board need not make the
  389  findings required by s. 120.54(4)(a). Emergency rules adopted
  390  under this section are exempt from s. 120.54(4)(c) and shall
  391  remain in effect until replaced by rules adopted under the
  392  nonemergency rulemaking procedures of chapter 120, which must
  393  occur no later than July 1, 2023.
  394         (13) APPROPRIATION.—
  395         (a)Within 60 days after a covered event, the board shall
  396  submit written notice to the Executive Office of the Governor if
  397  the board determines that funds from the RAP program coverage
  398  established by this section will be necessary to reimburse RAP
  399  insurers for losses associated with the covered event. The
  400  initial notice, and any subsequent requests, must specify the
  401  amount necessary to provide RAP reimbursements. Upon receiving
  402  such notice, the Executive Office of the Governor shall instruct
  403  the Chief Financial Officer to draw a warrant from the General
  404  Revenue Fund for a transfer to the board for the RAP program in
  405  the amount requested. The Executive Office of the Governor shall
  406  provide written notification to the chair and vice chair of the
  407  Legislative Budget Commission at least 3 days before the
  408  effective date of the warrant. Cumulative transfers authorized
  409  under this paragraph may not exceed $2 billion.
  410         (b)If General Revenue Funds are transferred to the board
  411  for the RAP program under paragraph (a), the board shall submit
  412  written notice to the Executive Office of the Governor that
  413  funds will be necessary for the administration of the RAP
  414  program and post-event examinations for covered events that
  415  require RAP coverage. The initial notice, and any subsequent
  416  requests, must specify the amount necessary for administration
  417  of the RAP program and post-event examinations. Upon receiving
  418  such notice, the Executive Office of the Governor shall instruct
  419  the Chief Financial Officer to draw a warrant from the General
  420  Revenue Fund for a transfer to the board for the RAP program in
  421  the amount requested. The Executive Office of the Governor shall
  422  provide written notification to the chair and vice chair of the
  423  Legislative Budget Commission at least 3 days before the
  424  effective date of the warrant. Cumulative transfers authorized
  425  under this paragraph may not exceed $5 million.
  426         (c)No later than January 31, 2023, and quarterly
  427  thereafter, the board shall submit a report to the Executive
  428  Office of the Governor, the President of the Senate, and the
  429  Speaker of the House of Representatives detailing any
  430  reimbursements of the RAP program, all loss development
  431  projections, the amount of RAP reimbursement coverage deferred
  432  until the 2023-2024 contract year, and detailed information
  433  about administrative and post-event examination expenditures.
  434         (14)EXPIRATION DATE.—If no General Revenue Funds have been
  435  transferred to the board for the RAP program under subsection
  436  (13) by June 30, 2025, this section expires on July 1, 2025. If
  437  General Revenue Funds have been transferred to the board for the
  438  RAP program under subsection (13) by June 30, 2025, this section
  439  expires on July 1, 2029, and all unencumbered RAP program funds
  440  shall be transferred by the board back to the General Revenue
  441  Fund unallocated.
  442         Section 2. (1)No later than June 30, 2022, each insurer
  443  that participates during the 2022-2023 contract year in the
  444  Reinsurance to Assist Policyholders program under s. 215.5551,
  445  Florida Statutes, shall reduce its rates to reflect the cost
  446  savings realized by participating in the program through a rate
  447  filing with the Office of Insurance Regulation or by amending a
  448  pending rate filing. The insurer shall make no other changes to
  449  its rates in the filing.
  450         (2)No later than May 1, 2023, each insurer that defers
  451  participation in the Reinsurance to Assist Policyholders program
  452  until the 2023-2024 year under s. 215.5551, Florida Statutes,
  453  shall reduce its rates to reflect the cost savings realized by
  454  participating in the program through a rate filing with the
  455  Office of Insurance Regulation or by amending a pending rate
  456  filing. The insurer shall make no other changes to its rates in
  457  the filing.
  458         (3)The Office of Insurance Regulation shall expedite the
  459  review of the filings made under this section.
  460         Section 3. Effective July 1, 2022, paragraphs (a) and (b)
  461  of subsection (2) and subsection (10) of section 215.5586,
  462  Florida Statutes, are amended to read:
  463         215.5586 My Safe Florida Home Program.—There is established
  464  within the Department of Financial Services the My Safe Florida
  465  Home Program. The department shall provide fiscal
  466  accountability, contract management, and strategic leadership
  467  for the program, consistent with this section. This section does
  468  not create an entitlement for property owners or obligate the
  469  state in any way to fund the inspection or retrofitting of
  470  residential property in this state. Implementation of this
  471  program is subject to annual legislative appropriations. It is
  472  the intent of the Legislature that the My Safe Florida Home
  473  Program provide trained and certified inspectors to perform
  474  inspections for owners of site-built, single-family, residential
  475  properties and grants to eligible applicants as funding allows.
  476  The program shall develop and implement a comprehensive and
  477  coordinated approach for hurricane damage mitigation that may
  478  include the following:
  479         (2) MITIGATION GRANTS.—Financial grants shall be used to
  480  encourage single-family, site-built, owner-occupied, residential
  481  property owners to retrofit their properties to make them less
  482  vulnerable to hurricane damage.
  483         (a) For a homeowner to be eligible for a grant, the
  484  following criteria must be met:
  485         1. The homeowner must have been granted a homestead
  486  exemption on the home under chapter 196.
  487         2. The home must be a dwelling with an insured value of
  488  $500,000 $300,000 or less. Homeowners who are low-income
  489  persons, as defined in s. 420.0004(11), are exempt from this
  490  requirement.
  491         3. The home must have undergone an acceptable hurricane
  492  mitigation inspection after July 1, 2008 May 1, 2007.
  493         4. The home must be located in the “wind-borne debris
  494  region” as that term is defined in the Florida Building Code s.
  495  1609.2, International Building Code (2006), or as subsequently
  496  amended.
  497         5. The building permit application for initial construction
  498  of the home must have been made before January 1, 2008 March 1,
  499  2002.
  500         6.The homeowner must agree to make his or her home
  501  available for inspection once a mitigation project is completed.
  502  
  503  An application for a grant must contain a signed or
  504  electronically verified statement made under penalty of perjury
  505  that the applicant has submitted only a single application and
  506  must have attached documents demonstrating the applicant meets
  507  the requirements of this paragraph.
  508         (b) All grants must be matched on the basis of $1 provided
  509  by the applicant for $2 provided by the state a dollar-for
  510  dollar basis up to a maximum state contribution total of $10,000
  511  toward for the actual cost of the mitigation project with the
  512  state’s contribution not to exceed $5,000.
  513         (10) REPORTS.—The department shall make an annual report on
  514  the activities of the program that shall account for the use of
  515  state funds and indicate the number of inspections requested,
  516  the number of inspections performed, the number of grant
  517  applications received, and the number and value of grants
  518  approved, and the average annual amount of insurance premium
  519  discounts and total annual amount of insurance premium discounts
  520  homeowners received from insurers as a result of mitigation
  521  funded through the program. The report shall be delivered to the
  522  President of the Senate and the Speaker of the House of
  523  Representatives by February 1 of each year.
  524         Section 4. (1)For the 2022-2023 fiscal year, the sum of
  525  $150 million in nonrecurring funds is appropriated from the
  526  General Revenue Fund to the Department of Financial Services for
  527  the My Safe Florida Home Program. The funds shall be placed in
  528  reserve. The department shall submit budget amendments
  529  requesting release of the funds held in reserve pursuant to
  530  chapter 216, Florida Statutes. The budget amendments shall
  531  include a detailed spending plan.
  532         (2)The funds shall be allocated as follows:
  533         (a)Twenty-five million dollars for hurricane mitigation
  534  inspections.
  535         (b)One hundred fifteen million dollars for mitigation
  536  grants.
  537         (c)Four million dollars for education and consumer
  538  awareness.
  539         (d)One million dollars for public outreach for contractors
  540  and real estate brokers and sales associates.
  541         (e)Five million dollars for administrative costs.
  542         (3)Any unexpended balance of funds from this appropriation
  543  remaining on June 30, 2023, shall revert and is appropriated to
  544  the Department of Financial Services for the 2023-2024 fiscal
  545  year for the same purpose.
  546         (4) The department may adopt emergency rules pursuant to s.
  547  120.54, Florida Statutes, at any time, as are necessary to
  548  implement this section and s. 215.5586, Florida Statutes, as
  549  amended by this act. The Legislature finds that such emergency
  550  rulemaking authority is necessary to address a critical need in
  551  the state’s problematic property insurance market. The
  552  Legislature further finds that the uniquely short timeframe
  553  needed to effectively implement this section for the 2022-2023
  554  fiscal year requires that the department adopt rules as quickly
  555  as practicable. Therefore, in adopting such emergency rules, the
  556  department need not make the findings required by s.
  557  120.54(4)(a), Florida Statutes. Emergency rules adopted under
  558  this section are exempt from s. 120.54(4)(c), Florida Statutes,
  559  and shall remain in effect until replaced by rules adopted under
  560  the nonemergency rulemaking procedures of chapter 120, Florida
  561  Statutes, which must occur no later than July 1, 2023.
  562         (5)This section shall expire on October 1, 2024.
  563         Section 5. Paragraph (a) of subsection (1) of section
  564  489.147, Florida Statutes, is amended to read:
  565         489.147 Prohibited property insurance practices.—
  566         (1) As used in this section, the term:
  567         (a) “Prohibited advertisement” means any written or
  568  electronic communication by a contractor which that encourages,
  569  instructs, or induces a consumer to contact a contractor or
  570  public adjuster for the purpose of making an insurance claim for
  571  roof damage, if such communication does not state in a font size
  572  of at least 12 points and at least half as large as the largest
  573  font size used in the communication that:
  574         1.The consumer is responsible for payment of any insurance
  575  deductible;
  576         2.It is insurance fraud punishable as a felony of the
  577  third degree for a contractor to knowingly or willfully, and
  578  with intent to injure, defraud, or deceive, pay, waive, or
  579  rebate all or part of an insurance deductible applicable to
  580  payment to the contractor for repairs to a property covered by a
  581  property insurance policy; and
  582         3.It is insurance fraud punishable as a felony of the
  583  third degree to intentionally file an insurance claim containing
  584  any false, incomplete, or misleading information.
  585  
  586  The term includes, but is not limited to, door hangers, business
  587  cards, magnets, flyers, pamphlets, and e-mails.
  588         Section 6. Section 624.1551, Florida Statutes, is created
  589  to read:
  590         624.1551 Civil remedy actions against property insurers.
  591  Notwithstanding any provision of s. 624.155, a claimant must
  592  establish that the property insurer breached the insurance
  593  contract to prevail in a claim for extracontractual damages
  594  under s. 624.155(1)(b).
  595         Section 7. Subsection (4) of section 624.307, Florida
  596  Statutes, is amended to read:
  597         624.307 General powers; duties.—
  598         (4) The department and office may each collect, propose,
  599  publish, and disseminate information relating to the subject
  600  matter of any duties imposed upon it by law.
  601         (a) Aggregate information may include information asserted
  602  as trade secret information unless the trade secret information
  603  can be individually extrapolated, in which case the trade secret
  604  information remains protected as provided under s. 624.4213.
  605         (b)The office shall publish all orders, data required by
  606  s. 627.915(2), reports required by s. 627.7154(3), and all
  607  reports that are not confidential and exempt on its website in a
  608  timely fashion.
  609         Section 8. Paragraph (j) of subsection (1) of section
  610  624.313, Florida Statutes, is amended to read:
  611         624.313 Publications.—
  612         (1) As early as reasonably possible, the office shall
  613  annually have printed and made available a statistical report
  614  which must include all of the following information on either a
  615  calendar year or fiscal year basis:
  616         (j) An analysis of such lines or kinds of insurance for
  617  which the office determines that an availability problem exists
  618  in this state, and an analysis of the availability of
  619  reinsurance to domestic insurers selling homeowners’ and
  620  condominium unit owners’ insurance in this state.
  621         Section 9. Paragraph (c) of subsection (1) and paragraph
  622  (n) of subsection (2) of section 624.315, Florida Statutes, are
  623  amended to read:
  624         624.315 Department; annual report.—
  625         (1) As early as reasonably possible, the office, with such
  626  assistance from the department as requested, shall annually
  627  prepare a report to the Speaker and Minority Leader of the House
  628  of Representatives, the President and Minority Leader of the
  629  Senate, the chairs of the legislative committees with
  630  jurisdiction over matters of insurance, and the Governor
  631  showing, with respect to the preceding calendar year:
  632         (c) Names of insurers against which delinquency or similar
  633  proceedings were instituted., For property insurers for which
  634  the delinquency or similar proceedings were instituted, the
  635  annual report must also include the date that each insurer was
  636  deemed impaired of capital or surplus, as the terms impairment
  637  of capital and impairment of surplus are defined in s. 631.011,
  638  or insolvent, as the term insolvency is defined in s. 631.011;
  639  and a concise statement of the circumstances that led to each
  640  insurer’s delinquency; a summary of the actions taken by the
  641  insurer and the office to avoid delinquency; and the results or
  642  status of each such proceeding.
  643         (2) The office shall maintain the following information and
  644  make such information available upon request:
  645         (n) Trends; emerging trends as exemplified by the
  646  percentage change in frequency and severity of both paid and
  647  incurred claims, and pure premium (Florida and countrywide).
  648  Reports relating to the health of the homeowners’ and
  649  condominium unit owners’ insurance market must include the
  650  percentage of policies written by voluntary carriers, the
  651  percentage of policies written by the Citizens Property
  652  Insurance Corporation, and any trends related to the relative
  653  shares of the voluntary and residual markets.
  654         Section 10. Subsection (10) of section 624.424, Florida
  655  Statutes, is amended to read:
  656         624.424 Annual statement and other information.—
  657         (10)(a) Each insurer or insurer group doing business in
  658  this state shall file on a quarterly basis in conjunction with
  659  financial reports required by paragraph (1)(a) a supplemental
  660  report on an individual and group basis on a form prescribed by
  661  the commission with information on personal lines and commercial
  662  lines residential property insurance policies in this state. The
  663  supplemental report shall include separate information for
  664  personal lines property policies and for commercial lines
  665  property policies and totals for each item specified, including
  666  premiums written for each of the property lines of business as
  667  described in ss. 215.555(2)(c) and 627.351(6)(a). The report
  668  shall include the following information for each county on a
  669  monthly basis:
  670         1.(a) Total number of policies in force at the end of each
  671  month.
  672         2.(b) Total number of policies canceled.
  673         3.(c) Total number of policies nonrenewed.
  674         4.(d) Number of policies canceled due to hurricane risk.
  675         5.(e) Number of policies nonrenewed due to hurricane risk.
  676         6.(f) Number of new policies written.
  677         7.(g) Total dollar value of structure exposure under
  678  policies that include wind coverage.
  679         8.(h) Number of policies that exclude wind coverage.
  680         (b)The office shall aggregate on a statewide basis the
  681  data submitted by each insurer or insurer group under paragraph
  682  (a) and make such data publicly available by publishing such
  683  data on the office’s website within 1 month after each quarterly
  684  and annual filing. Such information, when aggregated on a
  685  statewide basis as to an individual insurer or insurer group, is
  686  not a trade secret as defined in s. 688.002(4) or s. 812.081 and
  687  is not subject to the public records exemption for trade secrets
  688  provided in s. 119.0715.
  689         Section 11. Section 626.9373, Florida Statutes, is amended
  690  to read:
  691         626.9373 Attorney fees.—
  692         (1) Upon the rendition of a judgment or decree by any court
  693  of this state against a surplus lines insurer in favor of any
  694  named or omnibus insured or the named beneficiary under a policy
  695  or contract executed by the insurer on or after the effective
  696  date of this act, the trial court or, if the insured or
  697  beneficiary prevails on appeal, the appellate court, shall
  698  adjudge or decree against the insurer in favor of the insured or
  699  beneficiary a reasonable sum as fees or compensation for the
  700  insured’s or beneficiary’s attorney prosecuting the lawsuit for
  701  which recovery is awarded. In a suit arising under a residential
  702  or commercial property insurance policy not brought by an
  703  assignee, the amount of reasonable attorney fees shall be
  704  awarded only as provided in s. 57.105 or s. 627.70152, as
  705  applicable.
  706         (2) If awarded, attorney fees or compensation shall be
  707  included in the judgment or decree rendered in the case.
  708         (3) In a suit arising under a residential or commercial
  709  property insurance policy, the right to attorney fees under this
  710  section may not be transferred to, assigned to, or acquired in
  711  any other manner by anyone other than a named or omnibus insured
  712  or a named beneficiary.
  713         Section 12. Section 627.428, Florida Statutes, is amended
  714  to read:
  715         627.428 Attorney fees.—
  716         (1) Upon the rendition of a judgment or decree by any of
  717  the courts of this state against an insurer and in favor of any
  718  named or omnibus insured or the named beneficiary under a policy
  719  or contract executed by the insurer, the trial court or, in the
  720  event of an appeal in which the insured or beneficiary prevails,
  721  the appellate court shall adjudge or decree against the insurer
  722  and in favor of the insured or beneficiary a reasonable sum as
  723  fees or compensation for the insured’s or beneficiary’s attorney
  724  prosecuting the suit in which the recovery is had. In a suit
  725  arising under a residential or commercial property insurance
  726  policy not brought by an assignee, the amount of reasonable
  727  attorney fees shall be awarded only as provided in s. 57.105 or
  728  s. 627.70152, as applicable.
  729         (2) As to suits based on claims arising under life
  730  insurance policies or annuity contracts, no such attorney fees
  731  shall be allowed if such suit was commenced prior to expiration
  732  of 60 days after proof of the claim was duly filed with the
  733  insurer.
  734         (3) When so awarded, compensation or fees of the attorney
  735  shall be included in the judgment or decree rendered in the
  736  case.
  737         (4) In a suit arising under a residential or commercial
  738  property insurance policy, the right to attorney fees under this
  739  section may not be transferred to, assigned to, or acquired in
  740  any other manner by anyone other than a named or omnibus insured
  741  or a named beneficiary.
  742         Section 13. Paragraph (d) of subsection (4) of section
  743  627.701, Florida Statutes, is amended, paragraph (c) of
  744  subsection (2), paragraph (e) of subsection (4), and subsection
  745  (10) are added to that section, and subsection (7) of that
  746  section is republished, to read:
  747         627.701 Liability of insureds; coinsurance; deductibles.—
  748         (2) Unless the office determines that the deductible
  749  provision is clear and unambiguous, a property insurer may not
  750  issue an insurance policy or contract covering real property in
  751  this state which contains a deductible provision that:
  752         (c)Applies solely to a roof loss as provided in subsection
  753  (10).
  754         (4)
  755         (d)1. A personal lines residential property insurance
  756  policy covering a risk valued at less than $500,000 may not have
  757  a hurricane deductible in excess of 10 percent of the policy
  758  dwelling limits, unless the following conditions are met:
  759         a. The policyholder must personally write or type and
  760  provide to the insurer the following statement in his or her own
  761  handwriting and sign his or her name, which must also be signed
  762  by every other named insured on the policy, and dated: “I do not
  763  want the insurance on my home to pay for the first (specify
  764  dollar value) of damage from hurricanes. I will pay those costs.
  765  My insurance will not.”
  766         b. If the structure insured by the policy is subject to a
  767  mortgage or lien, the policyholder must provide the insurer with
  768  a written statement from the mortgageholder or lienholder
  769  indicating that the mortgageholder or lienholder approves the
  770  policyholder electing to have the specified deductible.
  771         2. A deductible subject to the requirements of this
  772  paragraph applies for the term of the policy and for each
  773  renewal thereafter. Changes to the deductible percentage may be
  774  implemented only as of the date of renewal.
  775         3. An insurer shall keep the original copy of the signed
  776  statement required by this paragraph, electronically or
  777  otherwise, and provide a copy to the policyholder providing the
  778  signed statement. A signed statement meeting the requirements of
  779  this paragraph creates a presumption that there was an informed,
  780  knowing election of coverage.
  781         4. The commission shall adopt rules providing appropriate
  782  alternative methods for providing the statements required by
  783  this section for policyholders who have a handicapping or
  784  disabling condition that prevents them from providing a
  785  handwritten statement.
  786         (e)1.A personal lines residential property insurance
  787  policy that contains a separate roof deductible must include, on
  788  the page immediately behind the declarations page, with no other
  789  policy language on the page, in boldfaced type no smaller than
  790  18 point, the following statement: “YOU ARE ELECTING TO PURCHASE
  791  COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR
  792  ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT-OF
  793  POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE
  794  AGENT.”
  795         2.For any personal lines residential property insurance
  796  policy containing a separate roof deductible, the insurer shall
  797  compute and prominently display on the declarations page of the
  798  policy or on the premium renewal notice the actual dollar value
  799  of the roof deductible of the policy at issuance and renewal.
  800         (7) Prior to issuing a personal lines residential property
  801  insurance policy on or after April 1, 1997, or prior to the
  802  first renewal of a residential property insurance policy on or
  803  after April 1, 1997, the insurer must offer a deductible equal
  804  to $500 applicable to losses from perils other than hurricane.
  805  The insurer must provide the policyholder with notice of the
  806  availability of the deductible specified in this subsection in a
  807  form approved by the office at least once every 3 years. The
  808  failure to provide such notice constitutes a violation of this
  809  code but does not affect the coverage provided under the policy.
  810  An insurer may require a higher deductible only as part of a
  811  deductible program lawfully in effect on June 1, 1996, or as
  812  part of a similar deductible program.
  813         (10)(a)Notwithstanding any other provision of law, an
  814  insurer issuing a personal lines residential property insurance
  815  policy may include in such policy a separate roof deductible
  816  that meets all of the following requirements:
  817         1.The insurer has complied with the offer requirements
  818  under subsection (7) regarding a deductible applicable to losses
  819  from perils other than a hurricane.
  820         2.The roof deductible may not exceed the lesser of 2
  821  percent of the coverage A limit of the policy or 50 percent of
  822  the cost to replace the roof.
  823         3.The premium that a policyholder is charged for the
  824  policy includes an actuarially sound credit or premium discount
  825  for the roof deductible.
  826         4.The roof deductible applies only to a claim adjusted on
  827  a replacement cost basis.
  828         5.The roof deductible does not apply to any of the
  829  following events:
  830         a.A total loss to a primary structure in accordance with
  831  the valued policy law under s. 627.702 which is caused by a
  832  covered peril.
  833         b.A roof loss resulting from a hurricane as defined in s.
  834  627.4025(2)(c).
  835         c.A roof loss resulting from a tree fall or other hazard
  836  that damages the roof and punctures the roof deck.
  837         d.A roof loss requiring the repair of less than 50 percent
  838  of the roof.
  839  
  840  If a roof deductible is applied, no other deductible under the
  841  policy may be applied to the loss.
  842         (b) At the time of initial issuance of a personal lines
  843  residential property insurance policy, an insurer may offer the
  844  policyholder a separate roof deductible with the ability to opt
  845  out and reject the separate roof deductible. To reject a
  846  separate roof deductible, the policyholder shall sign a form
  847  approved by the office.
  848         (c) At the time of renewal, an insurer may add a separate
  849  roof deductible to a personal lines residential property
  850  insurance policy if the insurer provides a notice of change in
  851  policy terms pursuant to s. 627.43141. The insurer must also
  852  offer the policyholder the ability to opt-out and reject the
  853  separate roof deductible. To reject a separate roof deductible,
  854  the policyholder shall sign a form approved by the office.
  855         (d)The office shall expedite the review of any filing of
  856  insurance forms that only contain a separate roof deductible
  857  pursuant to this subsection. The commission may adopt model
  858  forms or guidelines that provide options for roof deductible
  859  language which may be used for filing by insurers. If an insurer
  860  makes a filing pursuant to a model form or guideline issued by
  861  the office, the office must review the filing within the initial
  862  30-day review period authorized by s. 627.410(2), and the roof
  863  deductible portion of the filing is not subject to the 15-day
  864  extension for review under that subsection.
  865         Section 14. Present subsection (5) of section 627.7011,
  866  Florida Statutes, is redesignated as subsection (6), a new
  867  subsection (5) is added to that section, and paragraph (a) of
  868  subsection (3) of that section is amended, to read:
  869         627.7011 Homeowners’ policies; offer of replacement cost
  870  coverage and law and ordinance coverage.—
  871         (3) In the event of a loss for which a dwelling or personal
  872  property is insured on the basis of replacement costs:
  873         (a) For a dwelling, the insurer must initially pay at least
  874  the actual cash value of the insured loss, less any applicable
  875  deductible. The insurer shall pay any remaining amounts
  876  necessary to perform such repairs as work is performed and
  877  expenses are incurred. However, if a roof deductible under s.
  878  627.701(10) is applied to the insured loss, the insurer may
  879  limit the claim payment as to the roof to the actual cash value
  880  of the loss to the roof until the insurer receives reasonable
  881  proof of payment by the policyholder of the roof deductible.
  882  Reasonable proof of payment includes a canceled check, money
  883  order receipt, credit card statement, or copy of an executed
  884  installment plan contract or other financing arrangement that
  885  requires full payment of the deductible over time. If a total
  886  loss of a dwelling occurs, the insurer must shall pay the
  887  replacement cost coverage without reservation or holdback of any
  888  depreciation in value, pursuant to s. 627.702.
  889         (5)(a)As used in this subsection, the term “authorized
  890  inspector” means an inspector who is approved by the insurer and
  891  who is:
  892         1.A home inspector licensed under s. 468.8314;
  893         2.A building code inspector certified under s. 468.607;
  894         3.A general, building, or residential contractor licensed
  895  under s. 489.111;
  896         4.A professional engineer licensed under s. 471.015;
  897         5.A professional architect licensed under s. 481.213; or
  898         6.Any other individual or entity recognized by the insurer
  899  as possessing the necessary qualifications to properly complete
  900  a general inspection of a residential structure insured with a
  901  homeowner’s insurance policy.
  902         (b)An insurer may not refuse to issue or refuse to renew a
  903  homeowner’s policy insuring a residential structure with a roof
  904  that is less than 15 years old solely because of the age of the
  905  roof.
  906         (c)For a roof that is at least 15 years old, an insurer
  907  must allow a homeowner to have a roof inspection performed by an
  908  authorized inspector at the homeowner’s expense before requiring
  909  the replacement of the roof of a residential structure as a
  910  condition of issuing or renewing a homeowner’s insurance policy.
  911  The insurer may not refuse to issue or refuse to renew a
  912  homeowner’s insurance policy solely because of roof age if an
  913  inspection of the roof of the residential structure performed by
  914  an authorized inspector indicates that the roof has 5 years or
  915  more of useful life remaining.
  916         (d) For purposes of this subsection, a roof’s age shall be
  917  calculated using the last date on which 100 percent of the
  918  roof’s surface area was built or replaced in accordance with the
  919  building code in effect at that time or the initial date of a
  920  partial roof replacement when subsequent partial roof builds or
  921  replacements were completed that resulted in 100 percent of the
  922  roof’s surface area being built or replaced.
  923         (e)This subsection applies to homeowners’ insurance
  924  policies issued or renewed on or after July 1, 2022.
  925         Section 15. Effective January 1, 2023, subsection (3) and
  926  paragraph (a) of subsection (7) of section 627.70131, Florida
  927  Statutes, are amended to read:
  928         627.70131 Insurer’s duty to acknowledge communications
  929  regarding claims; investigation.—
  930         (3)(a) Unless otherwise provided by the policy of insurance
  931  or by law, within 14 days after an insurer receives proof of
  932  loss statements, the insurer shall begin such investigation as
  933  is reasonably necessary unless the failure to begin such
  934  investigation is caused by factors beyond the control of the
  935  insurer which reasonably prevent the commencement of such
  936  investigation.
  937         (b) If such investigation involves a physical inspection of
  938  the property, the licensed adjuster assigned by the insurer must
  939  provide the policyholder with a printed or electronic document
  940  containing his or her name and state adjuster license number.
  941  For claims other than those subject to a hurricane deductible,
  942  an insurer must conduct any such physical inspection within 45
  943  days after its receipt of the proof of loss statements.
  944         (c) Any subsequent communication with the policyholder
  945  regarding the claim must also include the name and license
  946  number of the adjuster communicating about the claim.
  947  Communication of the adjuster’s name and license number may be
  948  included with other information provided to the policyholder.
  949         (d)Within 7 days after the insurer’s assignment of an
  950  adjuster to the claim, the insurer must notify the policyholder
  951  that he or she may request a copy of any detailed estimate of
  952  the amount of the loss generated by an insurer’s adjuster. After
  953  receiving such a request from the policyholder, the insurer must
  954  send any such detailed estimate to the policyholder within the
  955  later of 7 days after the insurer received the request or 7 days
  956  after the detailed estimate of the amount of the loss is
  957  completed. This paragraph does not require that an insurer
  958  create a detailed estimate of the amount of the loss if such
  959  estimate is not reasonably necessary as part of the claim
  960  investigation.
  961         (7)(a) Within 90 days after an insurer receives notice of
  962  an initial, reopened, or supplemental property insurance claim
  963  from a policyholder, the insurer shall pay or deny such claim or
  964  a portion of the claim unless the failure to pay is caused by
  965  factors beyond the control of the insurer which reasonably
  966  prevent such payment. The insurer shall provide a reasonable
  967  explanation in writing to the policyholder of the basis in the
  968  insurance policy, in relation to the facts or applicable law,
  969  for the payment, denial, or partial denial of a claim. If the
  970  insurer’s claim payment is less than specified in any insurer’s
  971  detailed estimate of the amount of the loss, the insurer must
  972  provide a reasonable explanation in writing of the difference to
  973  the policyholder. Any payment of an initial or supplemental
  974  claim or portion of such claim made 90 days after the insurer
  975  receives notice of the claim, or made more than 15 days after
  976  there are no longer factors beyond the control of the insurer
  977  which reasonably prevented such payment, whichever is later,
  978  bears interest at the rate set forth in s. 55.03. Interest
  979  begins to accrue from the date the insurer receives notice of
  980  the claim. The provisions of this subsection may not be waived,
  981  voided, or nullified by the terms of the insurance policy. If
  982  there is a right to prejudgment interest, the insured must shall
  983  select whether to receive prejudgment interest or interest under
  984  this subsection. Interest is payable when the claim or portion
  985  of the claim is paid. Failure to comply with this subsection
  986  constitutes a violation of this code. However, failure to comply
  987  with this subsection does not form the sole basis for a private
  988  cause of action.
  989         Section 16. Paragraph (d) of subsection (2) and subsection
  990  (8) of section 627.70152, Florida Statutes, are amended to read:
  991         627.70152 Suits arising under a property insurance policy.—
  992         (2) DEFINITIONS.—As used in this section, the term:
  993         (d) “Presuit settlement demand” means the demand made by
  994  the claimant in the written notice of intent to initiate
  995  litigation as required by paragraph (3)(a) (3)(e). The demand
  996  must include the amount of reasonable and necessary attorney
  997  fees and costs incurred by the claimant, to be calculated by
  998  multiplying the number of hours actually worked on the claim by
  999  the claimant’s attorney as of the date of the notice by a
 1000  reasonable hourly rate.
 1001         (8) ATTORNEY FEES.—
 1002         (a) In a suit arising under a residential or commercial
 1003  property insurance policy not brought by an assignee, the amount
 1004  of reasonable attorney fees and costs under s. 626.9373(1) or s.
 1005  627.428(1) shall be calculated and awarded as follows:
 1006         1. If the difference between the amount obtained by the
 1007  claimant and the presuit settlement offer, excluding reasonable
 1008  attorney fees and costs, is less than 20 percent of the disputed
 1009  amount, each party pays its own attorney fees and costs and a
 1010  claimant may not be awarded attorney fees under s. 626.9373(1)
 1011  or s. 627.428(1).
 1012         2. If the difference between the amount obtained by the
 1013  claimant and the presuit settlement offer, excluding reasonable
 1014  attorney fees and costs, is at least 20 percent but less than 50
 1015  percent of the disputed amount, the insurer pays the claimant’s
 1016  attorney fees and costs under s. 626.9373(1) or s. 627.428(1)
 1017  equal to the percentage of the disputed amount obtained times
 1018  the total attorney fees and costs.
 1019         3. If the difference between the amount obtained by the
 1020  claimant and the presuit settlement offer, excluding reasonable
 1021  attorney fees and costs, is at least 50 percent of the disputed
 1022  amount, the insurer pays the claimant’s full attorney fees and
 1023  costs under s. 626.9373(1) or s. 627.428(1).
 1024         (b) In a suit arising under a residential or commercial
 1025  property insurance policy not brought by an assignee, if a court
 1026  dismisses a claimant’s suit pursuant to subsection (5), the
 1027  court may not award to the claimant any incurred attorney fees
 1028  for services rendered before the dismissal of the suit. When a
 1029  claimant’s suit is dismissed pursuant to subsection (5), the
 1030  court may award to the insurer reasonable attorney fees and
 1031  costs associated with securing the dismissal.
 1032         (c)In awarding attorney fees under this subsection, a
 1033  strong presumption is created that a lodestar fee is sufficient
 1034  and reasonable. Such presumption may be rebutted only in a rare
 1035  and exceptional circumstance with evidence that competent
 1036  counsel could not be retained in a reasonable manner.
 1037         Section 17. Section 627.7142, Florida Statutes, is amended
 1038  to read:
 1039         627.7142 Homeowner Claims Bill of Rights.—An insurer
 1040  issuing a personal lines residential property insurance policy
 1041  in this state must provide a Homeowner Claims Bill of Rights to
 1042  a policyholder within 14 days after receiving an initial
 1043  communication with respect to a claim. The purpose of the bill
 1044  of rights is to summarize, in simple, nontechnical terms,
 1045  existing Florida law regarding the rights of a personal lines
 1046  residential property insurance policyholder who files a claim of
 1047  loss. The Homeowner Claims Bill of Rights is specific to the
 1048  claims process and does not represent all of a policyholder’s
 1049  rights under Florida law regarding the insurance policy. The
 1050  Homeowner Claims Bill of Rights does not create a civil cause of
 1051  action by any individual policyholder or class of policyholders
 1052  against an insurer or insurers. The failure of an insurer to
 1053  properly deliver the Homeowner Claims Bill of Rights is subject
 1054  to administrative enforcement by the office but is not
 1055  admissible as evidence in a civil action against an insurer. The
 1056  Homeowner Claims Bill of Rights does not enlarge, modify, or
 1057  contravene statutory requirements, including, but not limited
 1058  to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
 1059  and does not prohibit an insurer from exercising its right to
 1060  repair damaged property in compliance with the terms of an
 1061  applicable policy or ss. 627.7011(6)(e) 627.7011(5)(e) and
 1062  627.702(7). The Homeowner Claims Bill of Rights must state:
 1063  
 1064                          HOMEOWNER CLAIMS                         
 1065                           BILL OF RIGHTS                          
 1066         This Bill of Rights is specific to the claims process
 1067         and does not represent all of your rights under
 1068         Florida law regarding your policy. There are also
 1069         exceptions to the stated timelines when conditions are
 1070         beyond your insurance company’s control. This document
 1071         does not create a civil cause of action by an
 1072         individual policyholder, or a class of policyholders,
 1073         against an insurer or insurers and does not prohibit
 1074         an insurer from exercising its right to repair damaged
 1075         property in compliance with the terms of an applicable
 1076         policy.
 1077  
 1078         YOU HAVE THE RIGHT TO:
 1079         1. Receive from your insurance company an
 1080         acknowledgment of your reported claim within 14 days
 1081         after the time you communicated the claim.
 1082         2. Upon written request, receive from your
 1083         insurance company within 30 days after you have
 1084         submitted a complete proof-of-loss statement to your
 1085         insurance company, confirmation that your claim is
 1086         covered in full, partially covered, or denied, or
 1087         receive a written statement that your claim is being
 1088         investigated.
 1089         3. Within 90 days, subject to any dual interest
 1090         noted in the policy, receive full settlement payment
 1091         for your claim or payment of the undisputed portion of
 1092         your claim, or your insurance company’s denial of your
 1093         claim.
 1094         4. Receive payment of interest, as provided in s.
 1095         627.70131, Florida Statutes, from your insurance
 1096         company, which begins accruing from the date your
 1097         claim is filed if your insurance company does not pay
 1098         full settlement of your initial, reopened, or
 1099         supplemental claim or the undisputed portion of your
 1100         claim or does not deny your claim within 90 days after
 1101         your claim is filed. The interest, if applicable, must
 1102         be paid when your claim or the undisputed portion of
 1103         your claim is paid.
 1104         5. Free mediation of your disputed claim by the
 1105         Florida Department of Financial Services, Division of
 1106         Consumer Services, under most circumstances and
 1107         subject to certain restrictions.
 1108         6. Neutral evaluation of your disputed claim, if
 1109         your claim is for damage caused by a sinkhole and is
 1110         covered by your policy.
 1111         7. Contact the Florida Department of Financial
 1112         Services, Division of Consumer Services’ toll-free
 1113         helpline for assistance with any insurance claim or
 1114         questions pertaining to the handling of your claim.
 1115         You can reach the Helpline by phone at ...(toll-free
 1116         phone number)..., or you can seek assistance online at
 1117         the Florida Department of Financial Services, Division
 1118         of Consumer Services’ website at ...(website
 1119         address)....
 1120  
 1121         YOU ARE ADVISED TO:
 1122         1. File all claims directly with your insurance
 1123         company.
 1124         2. Contact your insurance company before entering
 1125         into any contract for repairs to confirm any managed
 1126         repair policy provisions or optional preferred
 1127         vendors.
 1128         3. Make and document emergency repairs that are
 1129         necessary to prevent further damage. Keep the damaged
 1130         property, if feasible, keep all receipts, and take
 1131         photographs or video of damage before and after any
 1132         repairs to provide to your insurer.
 1133         4. Carefully read any contract that requires you
 1134         to pay out-of-pocket expenses or a fee that is based
 1135         on a percentage of the insurance proceeds that you
 1136         will receive for repairing or replacing your property.
 1137         5. Confirm that the contractor you choose is
 1138         licensed to do business in Florida. You can verify a
 1139         contractor’s license and check to see if there are any
 1140         complaints against him or her by calling the Florida
 1141         Department of Business and Professional Regulation.
 1142         You should also ask the contractor for references from
 1143         previous work.
 1144         6. Require all contractors to provide proof of
 1145         insurance before beginning repairs.
 1146         7. Take precautions if the damage requires you to
 1147         leave your home, including securing your property and
 1148         turning off your gas, water, and electricity, and
 1149         contacting your insurance company and provide a phone
 1150         number where you can be reached.
 1151         Section 18. Subsection (1), paragraph (a) of subsection
 1152  (2), subsection (8), paragraph (a) of subsection (9), and
 1153  subsection (10) of section 627.7152, Florida Statutes, are
 1154  amended to read:
 1155         627.7152 Assignment agreements.—
 1156         (1) As used in this section, the term:
 1157         (a) “Assignee” means a person who is assigned post-loss
 1158  benefits through an assignment agreement.
 1159         (b) “Assignment agreement” means any instrument by which
 1160  post-loss benefits under a residential property insurance policy
 1161  or commercial property insurance policy, as that term is defined
 1162  in s. 627.0625(1), are assigned or transferred, or acquired in
 1163  any manner, in whole or in part, to or from a person providing
 1164  services, including, but not limited to, inspecting, protecting,
 1165  repairing, restoring, or replacing the to protect, repair,
 1166  restore, or replace property or mitigating to mitigate against
 1167  further damage to the property. The term does not include fees
 1168  collected by a public adjuster as defined in s. 626.854(1).
 1169         (c) “Assignor” means a person who assigns post-loss
 1170  benefits under a residential property insurance policy or
 1171  commercial property insurance policy to another person through
 1172  an assignment agreement.
 1173         (d) “Disputed amount” means the difference between the
 1174  assignee’s presuit settlement demand and the insurer’s presuit
 1175  settlement offer.
 1176         (e) “Judgment obtained” means damages recovered, if any,
 1177  but does not include any amount awarded for attorney fees,
 1178  costs, or interest.
 1179         (f) “Presuit settlement demand” means the demand made by
 1180  the assignee in the written notice of intent to initiate
 1181  litigation as required by paragraph (9)(a).
 1182         (e)(g) “Presuit settlement offer” means the offer made by
 1183  the insurer in its written response to the notice of intent to
 1184  initiate litigation as required by paragraph (9)(b).
 1185         (2)(a) An assignment agreement must:
 1186         1. Be in writing and executed by and between the assignor
 1187  and the assignee.
 1188         2. Contain a provision that allows the assignor to rescind
 1189  the assignment agreement without a penalty or fee by submitting
 1190  a written notice of rescission signed by the assignor to the
 1191  assignee within 14 days after the execution of the agreement, at
 1192  least 30 days after the date work on the property is scheduled
 1193  to commence if the assignee has not substantially performed, or
 1194  at least 30 days after the execution of the agreement if the
 1195  agreement does not contain a commencement date and the assignee
 1196  has not begun substantial work on the property.
 1197         3. Contain a provision requiring the assignee to provide a
 1198  copy of the executed assignment agreement to the insurer within
 1199  3 business days after the date on which the assignment agreement
 1200  is executed or the date on which work begins, whichever is
 1201  earlier. Delivery of the copy of the assignment agreement to the
 1202  insurer may be made:
 1203         a. By personal service, overnight delivery, or electronic
 1204  transmission, with evidence of delivery in the form of a receipt
 1205  or other paper or electronic acknowledgment by the insurer; or
 1206         b. To the location designated for receipt of such
 1207  agreements as specified in the policy.
 1208         4. Contain a written, itemized, per-unit cost estimate of
 1209  the services to be performed by the assignee.
 1210         5. Relate only to work to be performed by the assignee for
 1211  services to protect, repair, restore, or replace a dwelling or
 1212  structure or to mitigate against further damage to such
 1213  property.
 1214         6. Contain the following notice in 18-point uppercase and
 1215  boldfaced type:
 1216  
 1217         YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE
 1218         UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH
 1219         MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE
 1220         READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT.
 1221         YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT
 1222         PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT
 1223         IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON
 1224         THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE
 1225         HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS
 1226         AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT
 1227         DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE
 1228         HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY.
 1229         HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY
 1230         CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS
 1231         RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR
 1232         OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR
 1233         PROPERTY INSURANCE POLICY.
 1234  
 1235         7. Contain a provision requiring the assignee to indemnify
 1236  and hold harmless the assignor from all liabilities, damages,
 1237  losses, and costs, including, but not limited to, attorney fees,
 1238  should the policy subject to the assignment agreement prohibit,
 1239  in whole or in part, the assignment of benefits.
 1240         (8) The assignee shall indemnify and hold harmless the
 1241  assignor from all liabilities, damages, losses, and costs,
 1242  including, but not limited to, attorney fees, should the policy
 1243  subject to the assignment agreement prohibit, in whole or in
 1244  part, the assignment of benefits.
 1245         (9)(a) An assignee must provide the named insured, insurer,
 1246  and the assignor, if not the named insured, with a written
 1247  notice of intent to initiate litigation before filing suit under
 1248  the policy. Such notice must be served at least 10 business days
 1249  before filing suit, but not before the insurer has made a
 1250  determination of coverage under s. 627.70131. The notice must be
 1251  served by certified mail, return receipt requested, to the name
 1252  and mailing address designated by the insurer in the policy
 1253  forms or by electronic delivery to the e-mail address designated
 1254  by the insurer in the policy forms at least 10 business days
 1255  before filing suit, but may not be served before the insurer has
 1256  made a determination of coverage under s. 627.70131. The notice
 1257  must specify the damages in dispute, the amount claimed, and a
 1258  presuit settlement demand. Concurrent with the notice, and as a
 1259  precondition to filing suit, the assignee must provide the named
 1260  insured, insurer, and the assignor, if not the named insured, a
 1261  detailed written invoice or estimate of services, including
 1262  itemized information on equipment, materials, and supplies; the
 1263  number of labor hours; and, in the case of work performed, proof
 1264  that the work has been performed in accordance with accepted
 1265  industry standards.
 1266         (10) Notwithstanding any other provision of law, in a suit
 1267  related to an assignment agreement for post-loss claims arising
 1268  under a residential or commercial property insurance policy,
 1269  attorney fees and costs may be recovered by an assignee only
 1270  under s. 57.105 and this subsection.
 1271         (a) If the difference between the judgment obtained by the
 1272  assignee and the presuit settlement offer is:
 1273         1. Less than 25 percent of the disputed amount, the insurer
 1274  is entitled to an award of reasonable attorney fees.
 1275         2. At least 25 percent but less than 50 percent of the
 1276  disputed amount, no party is entitled to an award of attorney
 1277  fees.
 1278         3. At least 50 percent of the disputed amount, the assignee
 1279  is entitled to an award of reasonable attorney fees.
 1280         (b) If the insurer fails to inspect the property or provide
 1281  written or oral authorization for repairs within 7 calendar days
 1282  after the first notice of loss, the insurer waives its right to
 1283  an award of attorney fees under this subsection. If the failure
 1284  to inspect the property or provide written or oral authorization
 1285  for repairs is the result of an event for which the Governor had
 1286  declared a state of emergency under s. 252.36, factors beyond
 1287  the control of the insurer which reasonably prevented an
 1288  inspection or written or oral authorization for repairs, or the
 1289  named insured’s failure or inability to allow an inspection of
 1290  the property after a request by the insurer, the insurer does
 1291  not waive its right to an award of attorney fees under this
 1292  subsection.
 1293         (c) If an assignee commences an action in any court of this
 1294  state based upon or including the same claim against the same
 1295  adverse party that such assignee has previously voluntarily
 1296  dismissed in a court of this state, the court may order the
 1297  assignee to pay the attorney fees and costs of the adverse party
 1298  resulting from the action previously voluntarily dismissed. The
 1299  court shall stay the proceedings in the subsequent action until
 1300  the assignee has complied with the order.
 1301         Section 19. Section 627.7154, Florida Statutes, is created
 1302  to read:
 1303         627.7154 Property Insurer Stability Unit; duties and
 1304  required reports.—
 1305         (1)A property insurer stability unit is created within the
 1306  office to aid in the detection and prevention of insurer
 1307  insolvencies in the homeowners’ and condominium unit owners’
 1308  insurance market. The following responsibilities are limited
 1309  only to matters related to homeowners’ and condominium unit
 1310  owners’ insurance.
 1311         (2)The insurer stability unit shall provide enhanced
 1312  monitoring whenever the office identifies significant concerns
 1313  about an insurer’s solvency, rates, proposed contracts,
 1314  underwriting rules, market practices, claims handling, consumer
 1315  complaints, litigation practices and outcomes, and any other
 1316  issue related to compliance with the insurance code.
 1317         (3)The insurer stability unit shall, at a minimum:
 1318         (a)Conduct a target market exam when there is reason to
 1319  believe that an insurer’s claims practices, rate requirements,
 1320  investment activities, or financial statements suggest that the
 1321  insurer may be in an unsound financial condition.
 1322         (b)Closely monitor all risk-based capital reports, own
 1323  risk solvency assessments, reinsurance agreements, and financial
 1324  statements filed by insurers selling homeowners’ and condominium
 1325  unit owners’ insurance policies in this state.
 1326         (c)Have primary responsibility to conduct annual
 1327  catastrophe stress tests of all domestic insurers and insurers
 1328  that are commercially domiciled in this state.
 1329         1.The insurer stability unit shall cooperate with the
 1330  Florida Commission on Hurricane Loss Projection Methodology to
 1331  select the hurricane scenarios that are used in the annual
 1332  catastrophe stress test.
 1333         2.Catastrophe stress testing must determine:
 1334         a.Whether an individual insurer can survive a one in 130
 1335  year probable maximum loss (PML), and a second event 50-year
 1336  return PML following a first event that exceeds a 100-year
 1337  return PML; and
 1338         b.The impact of the selected hurricane scenarios on the
 1339  Citizens Property Insurance Corporation, the Florida Hurricane
 1340  Catastrophe Fund, the Florida Insurance Guaranty Association,
 1341  and taxpayers.
 1342         (d)Update wind mitigation credits required by s. 627.711
 1343  and associated rules.
 1344         (e)Review the causes of insolvency and business practices
 1345  of insurers that have been referred to the department’s Division
 1346  of Rehabilitation and Liquidation and make recommendations to
 1347  prevent similar failures in the future.
 1348         (f)On January 1 and July 1 of each year, provide a report
 1349  on the status of the homeowners’ and condominium unit owners’
 1350  insurance market to the Governor, the President of the Senate,
 1351  the Speaker of the House of Representatives, the Minority Leader
 1352  of the Senate, the Minority Leader of the House of
 1353  Representatives, and the chairs of the legislative committees
 1354  with jurisdiction over matters of insurance showing:
 1355         1.Litigation practices and outcomes of insurance
 1356  companies.
 1357         2.Percentage of homeowners and condominium unit owners who
 1358  obtain insurance in the voluntary market.
 1359         3.Percentage of homeowners and condominium unit owners who
 1360  obtain insurance from the Citizens Property Insurance
 1361  Corporation.
 1362         4.Profitability of the homeowners’ and condominium unit
 1363  owners’ lines of insurance in this state, including a comparison
 1364  with similar lines of insurance in other hurricane-prone states
 1365  and with the national average.
 1366         5.Average premiums charged for homeowners’ and condominium
 1367  unit owners’ insurance in each of the 67 counties in this state.
 1368         6.Results of the latest annual catastrophe stress tests of
 1369  all domestic insurers and insurers that are commercially
 1370  domiciled in this state.
 1371         7.The availability of reinsurance in the personal lines
 1372  insurance market.
 1373         8.The number of property and casualty insurance carriers
 1374  referred to the insurer stability unit for enhanced monitoring,
 1375  including the reason for the referral.
 1376         9.The number of referrals to the insurer stability unit
 1377  which were deemed appropriate for enhanced monitoring, including
 1378  the reason for the monitoring.
 1379         10.The name of any insurer against which delinquency
 1380  proceedings were instituted, including the grounds for
 1381  rehabilitation pursuant to s. 631.051 and the date that each
 1382  insurer was deemed impaired of capital or surplus, as the terms
 1383  impairment of capital and impairment of surplus are defined in
 1384  s. 631.011, or insolvent, as the term insolvency is defined in
 1385  s. 631.011; a concise statement of the circumstances that led to
 1386  the insurer’s delinquency; and a summary of the actions taken by
 1387  the insurer and the office to avoid delinquency.
 1388         11.Recommendations for improvements to the regulation of
 1389  the homeowners and condominium unit owners’ insurance market
 1390  and an indication of whether such improvements require any
 1391  change to existing laws or rules.
 1392         12.Identification of any trends that may warrant attention
 1393  in the future.
 1394         (4)Any of the following events must trigger a referral to
 1395  the insurer stability unit:
 1396         (a)Consumer complaints related to homeowners’ insurance or
 1397  condominium unit owners’ insurance under s. 624.307(10), if the
 1398  complaints, in the aggregate, suggest a trend within the
 1399  marketplace and are not an isolated incident.
 1400         (b)There is reason to believe that an insurer who is
 1401  authorized to sell homeowners’ or condominium unit owners’
 1402  insurance in this state has engaged in an unfair trade practice
 1403  under part IX of chapter 626.
 1404         (c)A market conduct examination determines that an insurer
 1405  has exhibited a pattern or practice of willful violations of an
 1406  unfair insurance trade practice related to claims-handling which
 1407  caused harm to policyholders, as prohibited by s.
 1408  626.9541(1)(i).
 1409         (d)An insurer authorized to sell homeowners’ or
 1410  condominium unit owners’ insurance in this state requests a rate
 1411  increase that exceeds 15 percent, in accordance with s.
 1412  627.0629(6).
 1413         (e)An insurer authorized to sell homeowners’ or
 1414  condominium unit owners’ insurance in this state violates the
 1415  ratio of actual or projected annual written premiums required by
 1416  s. 624.4095(4)(a).
 1417         (f)An insurer authorized to sell homeowners’ or
 1418  condominium unit owners’ insurance in this state files a notice
 1419  pursuant to s. 624.4305 advising the office that it intends to
 1420  nonrenew more than 10,000 residential property insurance
 1421  policies in this state within a 12-month period.
 1422         (g)A quarterly or annual financial statement required by
 1423  ss. 624.424 and 627.915 demonstrates that an insurer authorized
 1424  to sell homeowners’ or condominium unit owners’ insurance in
 1425  this state is in an unsound condition, as defined in s.
 1426  624.80(2); has exceeded its powers in a manner as described in
 1427  s. 624.80(3); is impaired, as defined in s. 631.011(12) or (13);
 1428  or is insolvent, as defined in s. 631.011.
 1429         (h)An insurer authorized to sell homeowners’ or
 1430  condominium unit owners’ insurance in this state files a
 1431  quarterly or annual financial statement required by ss. 624.424
 1432  and 627.915 which is misleading or contains material errors.
 1433         (i)An insurer authorized to sell homeowners’ or
 1434  condominium unit owners’ insurance in this state fails to timely
 1435  file a quarterly or annual financial statement required by ss.
 1436  624.424 and 627.915.
 1437         (j)An insurer authorized to sell homeowners’ or
 1438  condominium unit owners’ insurance in this state files a risk
 1439  based capital report that triggers a company action level event,
 1440  regulatory action level event, authorized control level event,
 1441  or mandatory control level event, as those terms are defined in
 1442  s. 624.4085.
 1443         (k)An insurer selling homeowners’ or condominium unit
 1444  owners’ insurance in this state that is subject to the own-risk
 1445  solvency assessment requirement of s. 628.8015, and fails to
 1446  timely file the own-risk solvency assessment.
 1447         (l)A reinsurance agreement creates a substantial risk of
 1448  insolvency for an insurer authorized to sell homeowners’ or
 1449  condominium unit owners’ insurance in this state, pursuant to s.
 1450  624.610(13).
 1451         (m)An insurer authorized to sell homeowners’ or
 1452  condominium unit owners’ insurance in this state is party to a
 1453  reinsurance agreement that does not create a meaningful transfer
 1454  of risk of loss to the reinsurer, pursuant to s. 624.610(14).
 1455         (n)Citizens Property Insurance Corporation is required to
 1456  absorb policies from an insurer that participated in the
 1457  corporation’s depopulation program authorized by s. 627.3511
 1458  within 3 years after the insurer takes policies out of the
 1459  corporation.
 1460  
 1461  The insurer stability unit’s supervisors shall review all
 1462  referrals triggered by the statutory provisions to determine
 1463  whether enhanced scrutiny of the insurer is appropriate.
 1464         (5)Expenses of the insurer stability unit shall be paid
 1465  from moneys allocated to the Insurance Regulatory Trust Fund.
 1466  However, if the unit recommends that a market conduct exam or
 1467  targeted market exam be conducted, the reasonable cost of the
 1468  examination shall be paid by the person examined, in accordance
 1469  with s. 624.3161.
 1470         Section 20. Subsection (1) of section 631.031, Florida
 1471  Statutes, is amended to read:
 1472         631.031 Initiation and commencement of delinquency
 1473  proceeding.—
 1474         (1) Upon a determination by the office that one or more
 1475  grounds for the initiation of delinquency proceedings exist
 1476  pursuant to this chapter and that delinquency proceedings must
 1477  be initiated, the Director of the Office of Insurance Regulation
 1478  shall notify the department of such determination and shall
 1479  provide the department with all necessary documentation and
 1480  evidence. If the director must notify the department of a
 1481  determination regarding a property insurer, the notification
 1482  must include an affidavit that identifies the grounds for
 1483  rehabilitation pursuant to s. 631.051; the date that each
 1484  insurer was deemed impaired of capital or surplus, as the terms
 1485  impairment of capital and impairment of surplus are defined in
 1486  s. 631.011, or insolvent, as the term insolvency is defined in
 1487  s. 631.011; a concise statement of the circumstances that led to
 1488  the insurer’s delinquency; and a summary of the actions taken by
 1489  the insurer and the office to avoid delinquency. The department
 1490  shall then initiate such delinquency proceedings.
 1491         Section 21. Subsection (3) of section 631.398, Florida
 1492  Statutes, is amended to read:
 1493         631.398 Prevention of insolvencies.—To aid in the detection
 1494  and prevention of insurer insolvencies or impairments:
 1495         (3)(a) The department shall, no later than the conclusion
 1496  of any domestic insurer insolvency proceeding, prepare a summary
 1497  report containing such information as is in its possession
 1498  relating to the history and causes of such insolvency, including
 1499  a statement of the business practices of such insurer which led
 1500  to such insolvency.
 1501         (b)For an insolvency involving a domestic property
 1502  insurer, the department shall:
 1503         1.Begin an analysis of the history and causes of the
 1504  insolvency once the department is appointed by the court as
 1505  receiver.
 1506         2.Submit an initial report analyzing the history and
 1507  causes of the insolvency to the Governor, the President of the
 1508  Senate, the Speaker of the House of Representatives, and the
 1509  office. The initial report must be submitted no later than 4
 1510  months after the department is appointed as receiver. The
 1511  initial report shall be updated at least annually until the
 1512  submission of the final report. The report may not be used as
 1513  evidence in any proceeding brought by the department or others
 1514  to recover assets on behalf of the receivership estate as part
 1515  of its duties under s. 631.141(8). The submission of a report
 1516  under this subparagraph shall not be considered a waiver of any
 1517  evidentiary privilege the department may assert under state or
 1518  federal law.
 1519         3.Provide a special report to the Governor, the President
 1520  of the Senate, the Speaker of the House of Representatives, and
 1521  the office, within 10 days upon identifying any condition or
 1522  practice that may lead to insolvency in the property insurance
 1523  marketplace.
 1524         4.Submit a final report analyzing the history and causes
 1525  of the insolvency and the review of the Office of Insurance
 1526  Regulation’s regulatory oversight of the insurer to the
 1527  Governor, the President of the Senate, the Speaker of the House
 1528  of Representatives, and the office within 30 days of the
 1529  conclusion of the insolvency proceeding.
 1530         5.Review the Office of Insurance Regulation’s regulatory
 1531  oversight of the insurer.
 1532         Section 22. If any law amended by this act was also amended
 1533  by a law enacted during the 2022 Regular Session of the
 1534  Legislature, such laws shall be construed as if enacted during
 1535  the same session of the Legislature, and full effect shall be
 1536  given to each if possible.
 1537         Section 23. Except as otherwise expressly provided in this
 1538  act, this act shall take effect upon becoming a law.