Florida Senate - 2024 CS for SB 1104
By the Committee on Judiciary; and Senator Bradley
590-02908-24 20241104c1
1 A bill to be entitled
2 An act relating to policy cancellations and
3 nonrenewals by property insurers; amending s.
4 626.9201, F.S.; prohibiting insurers from canceling
5 and nonrenewing, within certain timeframes, policies
6 covering personal residential or commercial
7 residential properties damaged by hurricanes or wind
8 losses; providing exceptions; providing construction;
9 authorizing the Financial Services Commission to adopt
10 rules and the Commissioner of Insurance Regulation to
11 issue orders; requiring that certain policies contain
12 similar terms under certain circumstances; amending s.
13 627.4133, F.S.; prohibiting insurers from canceling
14 and nonrenewing, within certain timeframes, policies
15 covering personal residential or commercial
16 residential properties damaged by hurricanes or wind
17 losses; providing that such prohibition applies to
18 flood damages caused by hurricanes under certain
19 circumstances; revising exceptions; providing
20 construction; requiring that certain policies contain
21 similar terms under certain circumstances; providing
22 an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Paragraph (c) is added to subsection (2) of
27 section 626.9201, Florida Statutes, to read:
28 626.9201 Notice of cancellation or nonrenewal.—
29 (2) An insurer issuing a policy providing coverage for
30 property, casualty, surety, or marine insurance must give the
31 named insured written notice of cancellation or termination
32 other than nonrenewal at least 45 days before the effective date
33 of the cancellation or termination, including in the written
34 notice the reasons for the cancellation or termination, except
35 that:
36 (c) An insurer may not cancel or nonrenew a personal
37 residential or commercial residential property insurance policy
38 covering a dwelling or residential property located in this
39 state:
40 1. For a period of 90 days after the dwelling or
41 residential property has been repaired, if such property has
42 been damaged as a result of a hurricane or wind loss that is the
43 subject of the declaration of emergency pursuant to s. 252.36
44 and the filing of an order by the Commissioner of Insurance
45 Regulation. Damage under this subsection includes flood damage
46 caused by a hurricane if flood is a covered peril under the
47 personal residential or commercial residential property
48 insurance policy. If flood is not a covered peril under the
49 commercial property insurance policy and the property has been
50 damaged as a result of flood caused by a hurricane, an insurer
51 may not cancel or nonrenew the personal residential or
52 commercial residential property insurance policy until the
53 earlier of when the property has been repaired or 18 months
54 after the date of loss.
55 2. However, an insurer or agent may cancel or nonrenew such
56 a policy before the repair of the dwelling or residential
57 property:
58 a. Upon 10 days’ notice for nonpayment of premium; or
59 b. Upon 45 days’ notice:
60 (I) For a material misstatement or fraud related to the
61 claim;
62 (II) If the insurer determines that the insured has
63 unreasonably caused a delay in the repair of the dwelling; or
64 (III) If the insurer has paid the policy limits for a loss
65 to the insured dwelling under a personal residential property
66 insurance policy, or policy limits for a loss to each insured
67 structure that was damaged under a commercial residential
68 property insurance policy.
69 3. If the insurer elects to nonrenew a policy covering a
70 property that has been damaged, the insurer must provide at
71 least 90 days’ notice to the insured that the insurer intends to
72 nonrenew the policy 90 days after the dwelling or residential
73 property has been repaired. This subsection does not prevent the
74 insurer from canceling or nonrenewing the policy 90 days after
75 the repairs are complete for the same reasons the insurer would
76 otherwise have canceled or nonrenewed the policy but for the
77 limitations of this subsection. The commission may adopt rules,
78 and the Commissioner of Insurance Regulation may issue orders,
79 necessary to implement this subsection.
80 4. For purposes of this subsection:
81 a. A structure is deemed to be repaired when the following
82 persons have inspected and certified or attested to the
83 completion of the repairs:
84 (I) A home inspector licensed under s. 468.8314;
85 (II) A building code inspector certified under s. 468.607;
86 (III) A general, building, or residential contractor
87 licensed under s. 489.111;
88 (IV) A professional engineer licensed under s. 471.015; or
89 (V) A professional architect licensed under s. 481.213.
90 b. If a policy is extended or renewed to comply with this
91 subsection or with any other provision of the Commissioner of
92 Insurance Regulation’s order, the policy must contain similar
93 policy terms as the policy being extended or renewed. However,
94 this subsection does not impact current law with regard to the
95 rates insurers may charge for policies extended or renewed under
96 this subsection.
97 c. Flood damage that is not communicated to the insurer and
98 the agent of the insurer before the expiration of the policy is
99 presumed nonexistent and may not be construed to alter any terms
100 of a policy, create a separate cause of action, or create any
101 additional duty on the part of the insurer or an agent of an
102 insurer to the insured.
103 5. This subsection does not affect the provisions of s.
104 95.11 or s. 627.70132.
105 6. This paragraph is not intended to revise or modify any
106 provision of an emergency order issued by the office before July
107 1, 2024.
108 Section 2. Paragraph (e) of subsection (2) of section
109 627.4133, Florida Statutes, is amended to read:
110 627.4133 Notice of cancellation, nonrenewal, or renewal
111 premium.—
112 (2) With respect to any personal lines or commercial
113 residential property insurance policy, including, but not
114 limited to, any homeowner, mobile home owner, farmowner,
115 condominium association, condominium unit owner, apartment
116 building, or other policy covering a residential structure or
117 its contents:
118 (e)1. An authorized insurer may not cancel or nonrenew a
119 personal residential or commercial residential property
120 insurance policy covering a dwelling or residential property
121 located in this state:
122 a. For a period of 90 days after the dwelling or
123 residential property has been repaired, if such property has
124 been damaged as a result of a hurricane or wind loss that is the
125 subject of the declaration of emergency pursuant to s. 252.36
126 and the filing of an order by the Commissioner of Insurance
127 Regulation. Damage under this sub-subparagraph includes flood
128 damage caused by a hurricane if flood is a covered peril under
129 the personal residential or commercial residential property
130 insurance policy. If flood is not a covered peril under the
131 personal residential or commercial residential property
132 insurance policy and the property has been damaged as a result
133 of flood caused by a hurricane, an insurer may not cancel or
134 nonrenew the personal residential or commercial residential
135 property insurance policy until the earlier of when the property
136 has been repaired or 18 months after the date of loss.
137 b. Until the earlier of when the dwelling or residential
138 property has been repaired or 1 year after the insurer issues
139 the final claim payment, if such property was damaged by any
140 covered peril and sub-subparagraph a. does not apply.
141 2. However, an insurer or agent may cancel or nonrenew such
142 a policy before prior to the repair of the dwelling or
143 residential property:
144 a. Upon 10 days’ notice for nonpayment of premium; or
145 b. Upon 45 days’ notice:
146 (I) For a material misstatement or fraud related to the
147 claim;
148 (II) If the insurer determines that the insured has
149 unreasonably caused a delay in the repair of the dwelling; or
150 (III) If the insurer has paid policy limits for a loss to
151 the insured dwelling under a personal residential policy, or
152 policy limits for a loss to each insured structure that was
153 damaged under a commercial residential policy.
154 3. If the insurer elects to nonrenew a policy covering a
155 property that has been damaged, the insurer must shall provide
156 at least 90 days’ notice to the insured that the insurer intends
157 to nonrenew the policy 90 days after the dwelling or residential
158 property has been repaired. Nothing in This paragraph does not
159 shall prevent the insurer from canceling or nonrenewing the
160 policy 90 days after the repairs are complete for the same
161 reasons the insurer would otherwise have canceled or nonrenewed
162 the policy but for the limitations of subparagraph 1. The
163 Financial Services Commission may adopt rules, and the
164 Commissioner of Insurance Regulation may issue orders, necessary
165 to implement this paragraph.
166 4. This paragraph is not intended to revise or modify any
167 provision of an emergency order issued by the office before July
168 1, 2024 This paragraph shall also apply to personal residential
169 and commercial residential policies covering property that was
170 damaged as the result of Hurricane Ian or Hurricane Nicole.
171 5. For purposes of this paragraph:
172 a. A structure is deemed to be repaired when the following
173 persons have inspected and certified or attested to the
174 completion of the repairs:
175 (I) A home inspector licensed under s. 468.8314;
176 (II) A building code inspector certified under s. 468.607;
177 (III) A general, building, or residential contractor
178 licensed under s. 489.111;
179 (IV) A professional engineer licensed under s. 471.015; or
180 (V) A professional architect licensed under s. 481.213
181 substantially completed and restored to the extent that it is
182 insurable by another authorized insurer writing policies in this
183 state.
184 b. The term “insurer” means an authorized insurer.
185 c. If a policy is extended or renewed to comply with this
186 paragraph or with any other provision of the Commissioner of
187 Insurance Regulation’s order, the policy must contain similar
188 policy terms as the policy being extended or renewed. However,
189 this paragraph does not impact current law with regard to the
190 rates insurers may charge for policies extended or renewed under
191 this paragraph.
192 d. Flood damage that is not communicated to the insurer and
193 the agent of the insurer before the expiration of the policy is
194 presumed nonexistent and may not be construed to alter any terms
195 of a policy, create a separate cause of action, or create any
196 additional duty on the part of the insurer or an agent of an
197 insurer to the insured.
198 6. This paragraph does not affect the provisions of s.
199 95.11 or. s. 627.70132.
200 Section 3. This act shall take effect July 1, 2024.