Florida Senate - 2024 SB 1104
By Senator Bradley
6-01583C-24 20241104__
1 A bill to be entitled
2 An act relating to policy cancellations and
3 nonrenewals by property insurers; amending s.
4 627.4133, F.S.; prohibiting insurers from canceling
5 and nonrenewing within certain timeframes policies
6 covering commercial properties damaged by hurricanes
7 and wind losses; providing exceptions; providing
8 construction; authorizing the Financial Services
9 Commission to adopt rules and the Commissioner of
10 Insurance Regulation to issue orders; providing a
11 definition; requiring commercial property policies to
12 contain specified terms under certain circumstances;
13 prohibiting eligible surplus lines insurers from
14 canceling and nonrenewing within certain timeframes
15 policies covering dwellings and residential properties
16 damaged by hurricanes and wind losses; providing that
17 such prohibition applies to flood damages caused by
18 hurricanes; providing exceptions; revising the
19 definition of the term “insurer” to include eligible
20 surplus lines insurers; requiring personal lines and
21 commercial residential property policies to contain
22 specified terms under certain circumstances; providing
23 an effective date.
24
25 Be It Enacted by the Legislature of the State of Florida:
26
27 Section 1. Paragraph (e) of subsection (2) of section
28 627.4133, Florida Statutes, is amended, and paragraph (e) is
29 added to subsection (1) of that section, to read:
30 627.4133 Notice of cancellation, nonrenewal, or renewal
31 premium.—
32 (1) Except as provided in subsection (2):
33 (e)1. An insurer may not cancel or nonrenew a property
34 insurance policy covering a commercial property located in this
35 state:
36 a. For a period of 90 days after the commercial property
37 has been repaired, if such property has been damaged as a result
38 of a hurricane or wind loss that is the subject of the
39 declaration of emergency pursuant to s. 252.36 and the filing of
40 an order by the Commissioner of Insurance Regulation. Damage
41 under this sub-subparagraph includes flood damage caused by a
42 hurricane if flood is a covered peril under the commercial
43 property policy or under a separate flood insurance policy. If
44 flood is not a covered peril under the commercial property
45 policy or under a separate flood insurance policy and the
46 property has been damaged as a result of flood caused by a
47 hurricane, an insurer may not cancel or nonrenew the commercial
48 property policy until the earlier of when the property has been
49 repaired or 1 year after the date of loss.
50 b. Until the earlier of when the commercial property has
51 been repaired or 1 year after the insurer issues the final claim
52 payment, if such property was damaged by any covered peril and
53 sub-subparagraph a. does not apply.
54 2. However, an insurer or agent may cancel or nonrenew such
55 a policy prior to the repair of the commercial property:
56 a. Upon 10 days’ notice for nonpayment of premium; or
57 b. Upon 45 days’ notice:
58 (I) For a material misstatement or fraud related to the
59 claim;
60 (II) If the insurer determines that the insured has
61 unreasonably caused a delay in the repair of the dwelling; or
62 (III) If the insurer has paid the policy limits for a loss
63 to each insured structure that was damaged.
64 3. If the insurer elects to nonrenew a policy covering a
65 commercial property that has been damaged, the insurer shall
66 provide at least 90 days’ notice to the insured that the insurer
67 intends to nonrenew the policy 90 days after the commercial
68 property has been repaired. This paragraph does not prevent the
69 insurer from canceling or nonrenewing the policy 90 days after
70 the repairs are complete for the same reasons the insurer would
71 otherwise have canceled or nonrenewed the policy but for the
72 limitations of subparagraph 1. The Financial Services Commission
73 may adopt rules, and the Commissioner of Insurance Regulation
74 may issue orders, necessary to implement this paragraph.
75 4. For purposes of this paragraph:
76 a. A structure that is currently insured by an authorized
77 insurer is deemed to be repaired when substantially completed
78 and restored to the extent that it is insurable by another
79 authorized insurer writing policies in this state. A structure
80 that is currently insured by a surplus lines insurer is deemed
81 to be repaired when substantially completed and restored to the
82 extent that it is insurable by another authorized insurer or
83 eligible surplus lines insurer writing policies in this state.
84 b. The term “insurer” means an authorized insurer or an
85 eligible surplus lines insurer.
86 c. If a policy is extended or renewed to comply with this
87 paragraph or with any other provision of the Commissioner of
88 Insurance Regulation’s order, it must contain the same policy
89 terms as the policy being extended or renewed.
90 (2) With respect to any personal lines or commercial
91 residential property insurance policy, including, but not
92 limited to, any homeowner, mobile home owner, farmowner,
93 condominium association, condominium unit owner, apartment
94 building, or other policy covering a residential structure or
95 its contents:
96 (e)1. An authorized insurer may not cancel or nonrenew a
97 personal residential or commercial residential property
98 insurance policy covering a dwelling or residential property
99 located in this state:
100 a. For a period of 90 days after the dwelling or
101 residential property has been repaired, if such property has
102 been damaged as a result of a hurricane or wind loss that is the
103 subject of the declaration of emergency pursuant to s. 252.36
104 and the filing of an order by the Commissioner of Insurance
105 Regulation. Damage under this sub-subparagraph includes flood
106 damage caused by a hurricane if flood is a covered peril under
107 the personal residential or commercial residential property
108 insurance policy or under a separate flood insurance policy. If
109 flood is not a covered peril under the personal residential or
110 commercial residential property policy or under a separate flood
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 policy until the earlier of when the property has been
115 repaired or 1 year 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 prior to the repair of the dwelling or residential
122 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 shall provide at
135 least 90 days’ notice to the insured that the insurer intends to
136 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 shall also apply to personal residential
146 and commercial residential policies covering property that was
147 damaged as the result of Hurricane Ian or Hurricane Nicole.
148 5. For purposes of this paragraph:
149 a. A structure that is currently insured by an authorized
150 insurer is deemed to be repaired when substantially completed
151 and restored to the extent that it is insurable by another
152 authorized insurer writing policies in this state. A structure
153 that is currently insured by a surplus lines insurer is deemed
154 to be repaired when substantially completed and restored to the
155 extent that it is insurable by another authorized insurer or
156 eligible surplus lines insurer writing policies in this state.
157 b. The term “insurer” means an authorized insurer or an
158 eligible surplus lines insurer.
159 c. If a policy is extended or renewed to comply with this
160 paragraph or with any other provision of the Commissioner of
161 Insurance Regulation’s order, it must contain the same policy
162 terms as the policy being extended or renewed.
163 Section 2. This act shall take effect July 1, 2024.