Florida Senate - 2024 COMMITTEE AMENDMENT
Bill No. SB 1104
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LEGISLATIVE ACTION
Senate . House
Comm: RCS .
02/05/2024 .
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The Committee on Judiciary (Bradley) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Paragraph (c) is added to subsection (2) of
6 section 626.9201, Florida Statutes, to read:
7 626.9201 Notice of cancellation or nonrenewal.—
8 (2) An insurer issuing a policy providing coverage for
9 property, casualty, surety, or marine insurance must give the
10 named insured written notice of cancellation or termination
11 other than nonrenewal at least 45 days before the effective date
12 of the cancellation or termination, including in the written
13 notice the reasons for the cancellation or termination, except
14 that:
15 (c) An insurer may not cancel or nonrenew a personal
16 residential or commercial residential property insurance policy
17 covering a dwelling or residential property located in this
18 state:
19 1. For a period of 90 days after the dwelling or
20 residential property has been repaired, if such property has
21 been damaged as a result of a hurricane or wind loss that is the
22 subject of the declaration of emergency pursuant to s. 252.36
23 and the filing of an order by the Commissioner of Insurance
24 Regulation. Damage under this subsection includes flood damage
25 caused by a hurricane if flood is a covered peril under the
26 personal residential or commercial residential property
27 insurance policy. If flood is not a covered peril under the
28 commercial property insurance policy and the property has been
29 damaged as a result of flood caused by a hurricane, an insurer
30 may not cancel or nonrenew the personal residential or
31 commercial residential property insurance policy until the
32 earlier of when the property has been repaired or 18 months
33 after the date of loss.
34 2. However, an insurer or agent may cancel or nonrenew such
35 a policy before the repair of the dwelling or residential
36 property:
37 a. Upon 10 days’ notice for nonpayment of premium; or
38 b. Upon 45 days’ notice:
39 (I) For a material misstatement or fraud related to the
40 claim;
41 (II) If the insurer determines that the insured has
42 unreasonably caused a delay in the repair of the dwelling; or
43 (III) If the insurer has paid the policy limits for a loss
44 to the insured dwelling under a personal residential property
45 insurance policy, or policy limits for a loss to each insured
46 structure that was damaged under a commercial residential
47 property insurance policy.
48 3. If the insurer elects to nonrenew a policy covering a
49 property that has been damaged, the insurer must provide at
50 least 90 days’ notice to the insured that the insurer intends to
51 nonrenew the policy 90 days after the dwelling or residential
52 property has been repaired. This subsection does not prevent the
53 insurer from canceling or nonrenewing the policy 90 days after
54 the repairs are complete for the same reasons the insurer would
55 otherwise have canceled or nonrenewed the policy but for the
56 limitations of this subsection. The commission may adopt rules,
57 and the Commissioner of Insurance Regulation may issue orders,
58 necessary to implement this subsection.
59 4. For purposes of this subsection:
60 a. A structure is deemed to be repaired when the following
61 persons have inspected and certified or attested to the
62 completion of the repairs:
63 (I) A home inspector licensed under s. 468.8314;
64 (II) A building code inspector certified under s. 468.607;
65 (III) A general, building, or residential contractor
66 licensed under s. 489.111;
67 (IV) A professional engineer licensed under s. 471.015; or
68 (V) A professional architect licensed under s. 481.213.
69 b. If a policy is extended or renewed to comply with this
70 subsection or with any other provision of the Commissioner of
71 Insurance Regulation’s order, the policy must contain similar
72 policy terms as the policy being extended or renewed. However,
73 this subsection does not impact current law with regard to the
74 rates insurers may charge for policies extended or renewed under
75 this subsection.
76 c. Flood damage that is not communicated to the insurer and
77 the agent of the insurer before the expiration of the policy is
78 presumed nonexistent and may not be construed to alter any terms
79 of a policy, create a separate cause of action, or create any
80 additional duty on the part of the insurer or an agent of an
81 insurer to the insured.
82 5. This subsection does not affect the provisions of s.
83 95.11 or s. 627.70132.
84 6. This paragraph is not intended to revise or modify any
85 provision of an emergency order issued by the office before July
86 1, 2024.
87 Section 2. Paragraph (e) of subsection (2) of section
88 627.4133, Florida Statutes, is amended to read:
89 627.4133 Notice of cancellation, nonrenewal, or renewal
90 premium.—
91 (2) With respect to any personal lines or commercial
92 residential property insurance policy, including, but not
93 limited to, any homeowner, mobile home owner, farmowner,
94 condominium association, condominium unit owner, apartment
95 building, or other policy covering a residential structure or
96 its contents:
97 (e)1. An authorized insurer may not cancel or nonrenew a
98 personal residential or commercial residential property
99 insurance policy covering a dwelling or residential property
100 located in this state:
101 a. For a period of 90 days after the dwelling or
102 residential property has been repaired, if such property has
103 been damaged as a result of a hurricane or wind loss that is the
104 subject of the declaration of emergency pursuant to s. 252.36
105 and the filing of an order by the Commissioner of Insurance
106 Regulation. Damage under this sub-subparagraph includes flood
107 damage caused by a hurricane if flood is a covered peril under
108 the personal residential or commercial residential property
109 insurance policy. If flood is not a covered peril under the
110 personal residential or commercial residential property
111 insurance policy and the property has been damaged as a result
112 of flood caused by a hurricane, an insurer may not cancel or
113 nonrenew the personal residential or commercial residential
114 property insurance policy until the earlier of when the property
115 has been repaired or 18 months after the date of loss.
116 b. Until the earlier of when the dwelling or residential
117 property has been repaired or 1 year after the insurer issues
118 the final claim payment, if such property was damaged by any
119 covered peril and sub-subparagraph a. does not apply.
120 2. However, an insurer or agent may cancel or nonrenew such
121 a policy before prior to the repair of the dwelling or
122 residential property:
123 a. Upon 10 days’ notice for nonpayment of premium; or
124 b. Upon 45 days’ notice:
125 (I) For a material misstatement or fraud related to the
126 claim;
127 (II) If the insurer determines that the insured has
128 unreasonably caused a delay in the repair of the dwelling; or
129 (III) If the insurer has paid policy limits for a loss to
130 the insured dwelling under a personal residential policy, or
131 policy limits for a loss to each insured structure that was
132 damaged under a commercial residential policy.
133 3. If the insurer elects to nonrenew a policy covering a
134 property that has been damaged, the insurer must shall provide
135 at least 90 days’ notice to the insured that the insurer intends
136 to nonrenew the policy 90 days after the dwelling or residential
137 property has been repaired. Nothing in This paragraph does not
138 shall prevent the insurer from canceling or nonrenewing the
139 policy 90 days after the repairs are complete for the same
140 reasons the insurer would otherwise have canceled or nonrenewed
141 the policy but for the limitations of subparagraph 1. The
142 Financial Services Commission may adopt rules, and the
143 Commissioner of Insurance Regulation may issue orders, necessary
144 to implement this paragraph.
145 4. This paragraph is not intended to revise or modify any
146 provision of an emergency order issued by the office before July
147 1, 2024 This paragraph shall also apply to personal residential
148 and commercial residential policies covering property that was
149 damaged as the result of Hurricane Ian or Hurricane Nicole.
150 5. For purposes of this paragraph:
151 a. A structure is deemed to be repaired when the following
152 persons have inspected and certified or attested to the
153 completion of the repairs:
154 (I) A home inspector licensed under s. 468.8314;
155 (II) A building code inspector certified under s. 468.607;
156 (III) A general, building, or residential contractor
157 licensed under s. 489.111;
158 (IV) A professional engineer licensed under s. 471.015; or
159 (V) A professional architect licensed under s. 481.213
160 substantially completed and restored to the extent that it is
161 insurable by another authorized insurer writing policies in this
162 state.
163 b. The term “insurer” means an authorized insurer.
164 c. If a policy is extended or renewed to comply with this
165 paragraph or with any other provision of the Commissioner of
166 Insurance Regulation’s order, the policy must contain similar
167 policy terms as the policy being extended or renewed. However,
168 this paragraph does not impact current law with regard to the
169 rates insurers may charge for policies extended or renewed under
170 this paragraph.
171 d. Flood damage that is not communicated to the insurer and
172 the agent of the insurer before the expiration of the policy is
173 presumed nonexistent and may not be construed to alter any terms
174 of a policy, create a separate cause of action, or create any
175 additional duty on the part of the insurer or an agent of an
176 insurer to the insured.
177 6. This paragraph does not affect the provisions of s.
178 95.11 or. s. 627.70132.
179 Section 3. This act shall take effect July 1, 2024.
180
181 ================= T I T L E A M E N D M E N T ================
182 And the title is amended as follows:
183 Delete everything before the enacting clause
184 and insert:
185 A bill to be entitled
186 An act relating to policy cancellations and
187 nonrenewals by property insurers; amending s.
188 626.9201, F.S.; prohibiting insurers from canceling
189 and nonrenewing, within certain timeframes, policies
190 covering personal residential or commercial
191 residential properties damaged by hurricanes or wind
192 losses; providing exceptions; providing construction;
193 authorizing the Financial Services Commission to adopt
194 rules and the Commissioner of Insurance Regulation to
195 issue orders; requiring that certain policies contain
196 similar terms under certain circumstances; amending s.
197 627.4133, F.S.; prohibiting insurers from canceling
198 and nonrenewing, within certain timeframes, policies
199 covering personal residential or commercial
200 residential properties damaged by hurricanes or wind
201 losses; providing that such prohibition applies to
202 flood damages caused by hurricanes under certain
203 circumstances; revising exceptions; providing
204 construction; requiring that certain policies contain
205 similar terms under certain circumstances; providing
206 an effective date.