Florida Senate - 2023 COMMITTEE AMENDMENT
Bill No. SB 418
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LEGISLATIVE ACTION
Senate . House
Comm: RCS .
02/22/2023 .
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The Committee on Banking and Insurance (Perry) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 41 - 54
4 and insert:
5 Section 2. Subsection (1) of section 627.421, Florida
6 Statutes, is amended to read:
7 627.421 Delivery of policy.—
8 (1) Subject to the insurer’s requirement as to payment of
9 premium, every policy shall be mailed, delivered, or
10 electronically transmitted to the insured or to the person
11 entitled thereto not later than 60 days after the effectuation
12 of coverage. Notwithstanding any other provision of law, an
13 insurer may allow a policyholder of personal lines insurance to
14 affirmatively elect delivery of the policy documents, including,
15 but not limited to, policies, endorsements, notices, or
16 documents, by electronic means in lieu of delivery by mail.
17 Electronic transmission of a policy, related notices, and other
18 documents for individual and group health insurance policies or
19 certificates of coverage pursuant to parts VI and VII of this
20 chapter, respectively; health maintenance contracts or
21 certificates of coverage pursuant to part I of chapter 641;
22 prepaid limited health service contracts pursuant to part I of
23 chapter 636; and for commercial risks, including, but not
24 limited to, workers’ compensation and employers’ liability,
25 commercial automobile liability, commercial automobile physical
26 damage, commercial lines residential property, commercial
27 nonresidential property, farmowners insurance, and the types of
28 commercial lines risks set forth in s. 627.062(3)(d),
29 constitutes delivery to the insured or to the person entitled to
30 delivery, unless the insured or the person entitled to delivery
31 communicates to the insurer in writing or electronically that he
32 or she does not agree to delivery by electronic means.
33 Electronic transmission shall include a notice to the insured or
34 to the person entitled to delivery of a policy of his or her
35 right to receive the policy via United States mail rather than
36 via electronic transmission. A paper copy of the policy shall be
37 provided to the insured or to the person entitled to delivery at
38 his or her request.
39 Section 3. Paragraphs (e) and (f) are added to subsection
40 (3) of section 627.701, Florida Statutes, and paragraph (a) of
41 that subsection is republished, to read:
42 627.701 Liability of insureds; coinsurance; deductibles.—
43 (3)(a) Except as otherwise provided in this subsection,
44 prior to issuing a personal lines residential property insurance
45 policy, the insurer must offer alternative deductible amounts
46 applicable to hurricane losses equal to $500, 2 percent, 5
47 percent, and 10 percent of the policy dwelling limits, unless
48 the specific percentage deductible is less than $500. The
49 written notice of the offer shall specify the hurricane
50 deductible to be applied in the event that the applicant or
51 policyholder fails to affirmatively choose a hurricane
52 deductible. The insurer must provide such policyholder with
53 notice of the availability of the deductible amounts specified
54 in this subsection in a form approved by the office in
55 conjunction with each renewal of the policy. The failure to
56 provide such notice constitutes a violation of this code but
57 does not affect the coverage provided under the policy.
58 (e) Notwithstanding paragraph (a), an insurer may offer a
59 deductible no greater than:
60 1. Ten percent for a policy covering a risk with dwelling
61 limits of at least $1 million, but less than $3 million.
62 2. Fifteen percent for a policy covering a risk with
63 dwelling limits greater than $3 million.
64 (f) Notwithstanding s. 627.062(2)(k)3., between July 1,
65 2023, and July 1, 2024, an insurer may make an additional filing
66 to implement changes under paragraph (e).
67 Section 4. Paragraph (a) of subsection (2) and subsection
68 (3) of section 627.712, Florida Statutes, are amended to read:
69 627.712 Residential windstorm coverage required;
70 availability of exclusions for windstorm or contents.—
71 (2) A property insurer must make available, at the option
72 of the policyholder, an exclusion of windstorm coverage.
73 (a) The coverage may be excluded only if:
74 1. When the policyholder is a natural person, the
75 policyholder personally writes or types and provides to the
76 insurer the following statement in his or her own handwriting
77 and signs his or her name, which must also be signed by every
78 other named insured on the policy, and dated: “I do not want the
79 insurance on my (home/mobile home/condominium unit) to pay for
80 damage from windstorms. I will pay those costs. My insurance
81 will not.”
82 2. When the policyholder is other than a natural person,
83 the policyholder provides to the insurer on the policyholder’s
84 letterhead the following statement that must be signed by the
85 policyholder’s authorized representative and dated: “...(Name of
86 entity)... does not want the insurance on its ...(type of
87 structure)... to pay for damage from windstorms. ...(Name of
88 entity)... will be responsible for these costs. ...(Name of
89 entity’s)... insurance will not.”
90 (3) An insurer issuing a residential property insurance
91 policy, except for a condominium unit owner policy or a tenant
92 policy, must make available, at the option of the policyholder,
93 an exclusion of coverage for the contents. The coverage may be
94 excluded only if the policyholder personally writes or types and
95 provides to the insurer the following statement in his or her
96 own handwriting and signs his or her signature, which must also
97 be signed by every other named insured on the policy, and dated:
98 “I do not want the insurance on my (home/mobile home) to pay for
99 the costs to repair or replace any contents that are damaged. I
100 will pay those costs. My insurance will not.”
101 Section 5. Paragraph (b) of subsection (2) of section
102 627.0628, Florida Statutes, is amended to read:
103 627.0628 Florida Commission on Hurricane Loss Projection
104 Methodology; public records exemption; public meetings
105 exemption.—
106 (2) COMMISSION CREATED.—
107 (b) The commission shall consist of the following 12
108 members:
109 1. The insurance consumer advocate.
110 2. The senior employee of the State Board of Administration
111 responsible for operations of the Florida Hurricane Catastrophe
112 Fund.
113 3. The Executive Director of the Citizens Property
114 Insurance Corporation or the executive director’s designee. The
115 executive director’s designee must be a full-time employee of
116 the corporation.
117
118 ================= T I T L E A M E N D M E N T ================
119 And the title is amended as follows:
120 Delete lines 5 - 9
121 and insert:
122 amending s. 627.421, F.S.; revising the types of
123 documents and kinds of insurance for which electronic
124 transmission constitutes delivery to the insured or
125 person entitled to delivery; deleting a requirement to
126 include a certain notice to an insured electing to
127 receive policy documents electronically; deleting a
128 requirement to provide a paper copy of the policy upon
129 request by such person; amending s. 627.701, F.S.;
130 specifying limitations on personal lines residential
131 property insurance deductibles on policies covering
132 risks with specified dwelling limits; authorizing
133 insurers to make an additional filing within a certain
134 timeframe to implement changes; amending s. 627.712,
135 F.S.; providing that a policyholder’s written
136 exclusion from residential windstorm coverage may be
137 typed rather than handwritten; amending s. 627.0628,
138 F.S.; revising membership requirements for specified
139 members of the Florida Commission on Hurricane Loss
140 Projection Methodology; amending s. 627.0629, F.S.;