Florida Senate - 2025 CS for SB 1184
By the Committee on Banking and Insurance; and Senator DiCeglie
597-02489-25 20251184c1
1 A bill to be entitled
2 An act relating to residual market insurers; amending
3 s. 626.913, F.S.; conforming a provision to changes
4 made by the act; amending s. 626.914, F.S.; removing
5 the definition of the term “diligent effort”; amending
6 s. 626.916, F.S.; revising the conditions for
7 insurance coverage to be eligible for export;
8 providing a presumption that an insured is presumed to
9 have been informed of the availability of other
10 coverage under certain circumstances; amending ss.
11 627.4085, 627.701, 627.70131, 627.70132, 627.70152,
12 and 627.952, F.S.; removing applicability and
13 nonapplicability to surplus lines insurance of
14 provisions relating to applications for insurance
15 policies and annuity contracts; liability of insureds,
16 coinsurance, and deductibles; insurers’ duty to
17 acknowledge communications regarding claims and
18 investigations; notice of property insurance claim;
19 suits arising under a property insurance policy; and
20 risk retention and purchasing group agents,
21 respectively; creating ss. 626.9261, 626.9262,
22 626.9263, and 626.9264, F.S.; transferring to surplus
23 lines insurance those provisions relating to liability
24 of insureds and deductibles; insurers’ duty to
25 acknowledge communications regarding residential
26 property insurance claims and investigations; notice
27 of property insurance claim; suits arising under a
28 property insurance policy; creating s. 626.9265, F.S.;
29 prohibiting policyholders from assigning post-loss
30 insurance benefits under property insurance policies;
31 creating s. 626.9266, F.S.; requiring settlements or
32 verdicts against insureds as a condition precedent to
33 the accrual or maintenance of causes of actions
34 against liability insurers by persons who are not
35 insureds; providing that insurers are parties for the
36 purpose of recovering taxable costs and attorney fees
37 under certain circumstances; authorizing insurers to
38 insert specified contractual provisions in liability
39 insurance policies; authorizing liability insurers to
40 be joined as party defendants under certain
41 circumstances; prohibiting insurers’ presence from
42 being disclosed under certain circumstances; amending
43 s. 626.931, F.S.; removing the requirement that
44 certain surplus lines agents file a specified
45 affidavit; amending s. 626.932, F.S.; conforming
46 cross-references; revising the timeline of the surplus
47 lines tax remittance by surplus lines agents to the
48 Florida Surplus Lines Service Office; amending s.
49 627.351, F.S.; revising the requirements for licensed
50 agents appointed by Citizens Property Insurance
51 Corporation to write and renew certain insurance
52 coverage; amending ss. 626.918, 626.9325, and
53 626.9541, F.S.; conforming cross-references; amending
54 ss. 626.935 and 627.715, F.S.; conforming provisions
55 to changes made by the act; providing an effective
56 date.
57
58 Be It Enacted by the Legislature of the State of Florida:
59
60 Section 1. Subsection (4) of section 626.913, Florida
61 Statutes, is amended to read:
62 626.913 Surplus Lines Law; short title; purposes.—
63 (4) Except as may be specifically stated to apply to
64 surplus lines insurers, the provisions of Chapter 627 does do
65 not apply to surplus lines insurance authorized under ss.
66 626.913-626.937, the Surplus Lines Law.
67 Section 2. Subsection (4) of section 626.914, Florida
68 Statutes, is amended to read:
69 626.914 Definitions.—As used in this Surplus Lines Law, the
70 term:
71 (4) “Diligent effort” means seeking coverage from and
72 having been rejected by at least three authorized insurers
73 currently writing this type of coverage and documenting these
74 rejections. However, if the residential structure has a dwelling
75 replacement cost of $700,000 or more, the term means seeking
76 coverage from and having been rejected by at least one
77 authorized insurer currently writing this type of coverage and
78 documenting this rejection.
79 Section 3. Paragraphs (a) and (e) of subsection (1) and
80 subsections (2) and (3) of section 626.916, Florida Statutes,
81 are amended to read:
82 626.916 Eligibility for export.—
83 (1) No insurance coverage shall be eligible for export
84 unless it meets all of the following conditions:
85 (a) The full amount of insurance required must not be
86 procurable, after a diligent effort has been made by the
87 producing agent to do so, from among the insurers authorized to
88 transact and actually writing that kind and class of insurance
89 in this state, and the amount of insurance exported shall be
90 only the excess over the amount so procurable from authorized
91 insurers. Surplus lines agents must verify that a diligent
92 effort has been made by requiring a properly documented
93 statement of diligent effort from the retail or producing agent.
94 However, to be in compliance with the diligent effort
95 requirement, the surplus lines agent’s reliance must be
96 reasonable under the particular circumstances surrounding the
97 export of that particular risk. Reasonableness shall be assessed
98 by taking into account factors which include, but are not
99 limited to, a regularly conducted program of verification of the
100 information provided by the retail or producing agent.
101 Declinations must be documented on a risk-by-risk basis. If it
102 is not possible to obtain the full amount of insurance required
103 by layering the risk, it is permissible to export the full
104 amount.
105 (d)(e) The insured has signed or otherwise provided
106 documented acknowledgment of a disclosure in substantially the
107 following form: “You are agreeing to place coverage in the
108 surplus lines market. Coverage may be available in the admitted
109 market. Persons insured by surplus lines carriers are not
110 protected under the Florida Insurance Guaranty Act with respect
111 to any right of recovery for the obligation of an insolvent
112 unlicensed insurer. Additionally, surplus lines insurers’ policy
113 rates and forms are not approved by any Florida regulatory
114 agency.” If the acknowledgment of the disclosure is signed by
115 the insured, the insured is presumed to have been informed and
116 to know that other coverage may be available.
117 (2) The commission may by rule declare eligible for export
118 generally, and notwithstanding the provisions of paragraphs (a),
119 (b), (c), and (d) of subsection (1), any class or classes of
120 insurance coverage or risk for which it finds, after a hearing,
121 that there is no reasonable or adequate market among authorized
122 insurers. Any such rules shall continue in effect during the
123 existence of the conditions upon which predicated, but subject
124 to termination by the commission.
125 (3)(a) Subsection (1) does not apply to wet marine and
126 transportation or aviation risks that are subject to s. 626.917.
127 (b) Subsection (1) does not apply to classes of insurance
128 which are related to indemnity of deductibles for property
129 insurance or are subject to s. 627.062(3)(d)1. These classes may
130 be exportable under the following conditions:
131 1. The insurance must be placed only by or through a
132 surplus lines agent licensed in this state;
133 2. The insurer must be made eligible under s. 626.918; and
134 3. The insured has complied with paragraph (1)(e). If the
135 disclosure is signed by the insured, the insured is presumed to
136 have been informed and to know that other coverage may be
137 available, and, with respect to the diligent-effort requirement
138 under subsection (1), there is no liability on the part of, and
139 no cause of action arises against, the retail agent presenting
140 the form.
141 Section 4. Section 627.4085, Florida Statutes, is amended
142 to read:
143 627.4085 Insurer name, agent name, and license
144 identification number required on application.—
145 (1) All applications for an insurance policy or annuity
146 contract shall prominently display the name of the insuring
147 entity on the first page of the application form at the time the
148 coverage is bound or premium is quoted. Such applications shall
149 also disclose the name and license identification number of the
150 agent as shown on the agent’s license issued by the department,
151 which information may be typed, printed, stamped, or handwritten
152 if legible.
153 (2) This section does not apply to surplus lines business
154 under the provisions of ss. 626.913-626.937.
155 Section 5. Paragraph (d) of subsection (6) of section
156 627.701, Florida Statutes, is amended to read:
157 627.701 Liability of insureds; coinsurance; deductibles.—
158 (6)
159 (d) The office shall draft and formally propose as a rule
160 the form for the certificate of security. The certificate of
161 security may be issued in any of the following circumstances:
162 1. A mortgage lender or other financial institution may
163 issue a certificate of security after granting the applicant a
164 line of credit, secured by equity in real property or other
165 reasonable security, which line of credit may be drawn on only
166 to pay for the deductible portion of insured construction or
167 reconstruction after a hurricane loss. In the sole discretion of
168 the mortgage lender or other financial institution, the line of
169 credit may be issued to an applicant on an unsecured basis.
170 2. A licensed insurance agent may issue a certificate of
171 security after obtaining for an applicant a line of credit,
172 secured by equity in real property or other reasonable security,
173 which line of credit may be drawn on only to pay for the
174 deductible portion of insured construction or reconstruction
175 after a hurricane loss. The Florida Hurricane Catastrophe Fund
176 shall negotiate agreements creating a financing consortium to
177 serve as an additional source of lines of credit to secure
178 deductibles. Any licensed insurance agent may act as the agent
179 of such consortium.
180 3. Any person qualified to act as a trustee for any purpose
181 may issue a certificate of security secured by a pledge of
182 assets, with the restriction that the assets may be drawn on
183 only to pay for the deductible portion of insured construction
184 or reconstruction after a hurricane loss.
185 4. Any insurer, including any admitted insurer or any
186 surplus lines insurer, may issue a certificate of security after
187 issuing the applicant a policy of supplemental insurance that
188 will pay for 100 percent of the deductible portion of insured
189 construction or reconstruction after a hurricane loss.
190 5. Any other method approved by the office upon finding
191 that such other method provides a similar level of security as
192 the methods specified in this paragraph and that such other
193 method has no negative impact on residential property insurance
194 catastrophic capacity. The legislative intent of this
195 subparagraph is to provide the flexibility needed to achieve the
196 public policy of expanding property insurance capacity while
197 improving the affordability of property insurance.
198 Section 6. Section 626.9261, Florida Statutes, is created
199 to read:
200 626.9261 Liability of insureds; deductibles.—A surplus
201 lines insurer may issue a certificate of security after issuing
202 the applicant a policy of supplemental insurance which will pay
203 for 100 percent of the deductible portion of insured
204 construction or reconstruction after a hurricane loss.
205 Section 7. Subsection (9) of section 627.70131, Florida
206 Statutes, is amended to read:
207 627.70131 Insurer’s duty to acknowledge communications
208 regarding claims; investigation.—
209 (9) This section also applies to surplus lines insurers and
210 surplus lines insurance authorized under ss. 626.913-626.937
211 providing residential coverage.
212 Section 8. Section 626.9262, Florida Statutes, is created
213 to read:
214 626.9262 Insurer’s duty to acknowledge communications
215 regarding residential property insurance claims; investigation.—
216 (1)(a) Upon an insurer’s receipt of a communication with
217 respect to a residential property insurance claim, the insurer
218 shall, within 7 calendar days, review and acknowledge receipt of
219 such communication unless payment is made within that period of
220 time or unless the failure to acknowledge is caused by factors
221 beyond the control of the insurer. If the acknowledgment is not
222 in writing, a notification indicating acknowledgment must be
223 made in the insurer’s claim file and dated. A communication made
224 to or by a representative of an insurer with respect to a claim
225 constitutes communication to or by the insurer.
226 (b) As used in this subsection, the term “representative”
227 means any person to whom an insurer has granted authority or
228 responsibility to receive or make such communications with
229 respect to claims on behalf of the insurer.
230 (c) This subsection does not apply to claimants represented
231 by counsel beyond those communications necessary to provide
232 forms and instructions.
233 (2) Such acknowledgment must be responsive to the
234 communication. If the communication constitutes a notification
235 of a residential property insurance claim, unless the
236 acknowledgment reasonably advises the claimant that the claim
237 appears not to be covered by the insurer, the acknowledgment
238 must provide necessary claim forms, and instructions, including
239 an appropriate telephone number.
240 (3)(a) Unless otherwise provided by the policy of insurance
241 or by law, within 7 days after an insurer receives proof-of-loss
242 statements, the insurer shall begin such investigation as is
243 reasonably necessary unless the failure to begin such
244 investigation is caused by factors beyond the control of the
245 insurer.
246 (b) If such investigation involves a physical inspection of
247 the property, the licensed adjuster assigned by the insurer must
248 provide the policyholder with a printed or electronic document
249 containing his or her name and state adjuster license number. An
250 insurer must conduct any such physical inspection within 30 days
251 after its receipt of the proof-of-loss statements.
252 (c) Any subsequent communication with the policyholder
253 regarding the residential property insurance claim must also
254 include the name and license number of the adjuster
255 communicating about the claim. Communication of the adjuster’s
256 name and license number may be included with other information
257 provided to the policyholder.
258 (d) An insurer may use electronic methods to investigate
259 the loss. Such electronic methods may include any method that
260 provides the insurer with clear, color pictures or video
261 documenting the loss, including, but not limited to, electronic
262 photographs or video recordings of the loss; video conferencing
263 between the adjuster and the policyholder which includes video
264 recording of the loss; and video recordings or photographs of
265 the loss using a drone, driverless vehicle, or other machine
266 that can move independently or through remote control. The
267 insurer also may allow the policyholder to use such methods to
268 assist in the investigation of the loss. An insurer may void the
269 insurance policy if the policyholder or any other person at the
270 direction of the policyholder, with intent to injure, defraud,
271 or deceive any insurer, commits insurance fraud by providing
272 false, incomplete, or misleading information concerning any fact
273 or thing material to a claim using electronic methods. The use
274 of electronic methods to investigate the loss does not prohibit
275 an insurer from assigning a licensed adjuster to physically
276 inspect the property.
277 (e) The insurer shall send the policyholder a copy of any
278 detailed estimate of the amount of the loss within 7 days after
279 the estimate is generated by an insurer’s adjuster. This
280 paragraph does not require that an insurer create a detailed
281 estimate of the amount of the loss if such estimate is not
282 reasonably necessary as part of the claim investigation.
283 (4) An insurer shall maintain:
284 (a) A record or log of each adjuster who communicates with
285 the policyholder as provided in paragraphs (3)(b) and (c) and
286 provide a list of such adjusters to the insured, office, or
287 department upon request.
288 (b) Claim records, including dates, of all of the
289 following:
290 1. Any claim-related communication made between the insurer
291 and the policyholder or the policyholder’s representative.
292 2. The insurer’s receipt of the policyholder’s proof-of
293 loss statement.
294 3. Any claim-related request for information made by the
295 insurer to the policyholder or the policyholder’s
296 representative.
297 4. Any claim-related inspections of the property made by
298 the insurer, including physical inspections and inspections made
299 by electronic means.
300 5. Any detailed estimate of the amount of the loss
301 generated by the insurer’s adjuster.
302 6. The beginning and end of any tolling period provided for
303 in subsection (8).
304 7. The insurer’s payment or denial of the claim.
305 (5) For purposes of this section, the term:
306 (a) “Factors beyond the control of the insurer” means:
307 1. Any of the following events which is the basis for the
308 office issuing an order finding that such event renders all or
309 specified residential property insurers reasonably unable to
310 meet the requirements of this section in specified locations and
311 ordering that such insurer or insurers may have additional time
312 as specified by the office to comply with the requirements of
313 this section: a state of emergency declared by the Governor
314 under s. 252.36, a breach of security that must be reported
315 under s. 501.171(3), or an information technology issue. The
316 office may not extend the period for payment or denial of a
317 claim for more than 30 additional days.
318 2. Actions by the policyholder or the policyholder’s
319 representative which constitute fraud, lack of cooperation, or
320 intentional misrepresentation regarding the claim for which
321 benefits are owed when such actions reasonably prevent the
322 insurer from complying with any requirement of this section.
323 (b) “Insurer” means an eligible surplus lines insurer that
324 issues residential property policies.
325 (6)(a) When providing a preliminary or partial estimate of
326 damage regarding a residential property insurance claim, an
327 insurer shall include with the estimate the following statement
328 printed in at least 12-point bold, uppercase type: THIS ESTIMATE
329 REPRESENTS OUR CURRENT EVALUATION OF THE COVERED DAMAGES TO YOUR
330 INSURED PROPERTY AND MAY BE REVISED AS WE CONTINUE TO EVALUATE
331 YOUR CLAIM. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL
332 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT
333 US.
334 (b) When providing a payment on a claim which is not the
335 full and final payment for the claim, an insurer shall include
336 with the payment the following statement printed in at least 12
337 point bold, uppercase type: WE ARE CONTINUING TO EVALUATE YOUR
338 CLAIM INVOLVING YOUR INSURED PROPERTY AND MAY ISSUE ADDITIONAL
339 PAYMENTS. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL
340 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT
341 US.
342 (7)(a) Within 60 days after an insurer receives notice of
343 an initial, reopened, or supplemental property insurance claim
344 from a policyholder, the insurer shall pay or deny such claim or
345 a portion of the claim unless the failure to pay is caused by
346 factors beyond the control of the insurer. The insurer shall
347 provide a reasonable explanation in writing to the policyholder
348 of the basis in the insurance policy, in relation to the facts
349 or applicable law, for the payment, denial, or partial denial of
350 a claim. If the insurer’s claim payment is less than specified
351 in any insurer’s detailed estimate of the amount of the loss,
352 the insurer must provide a reasonable explanation in writing of
353 the difference to the policyholder. Any payment of an initial or
354 supplemental claim or portion of such claim made 60 days after
355 the insurer receives notice of the claim, or made after the
356 expiration of any additional timeframe provided to pay or deny a
357 claim or a portion of a claim made pursuant to an order of the
358 office finding factors beyond the control of the insurer,
359 whichever is later, bears interest at the rate set forth in s.
360 55.03. Interest begins to accrue from the date the insurer
361 receives notice of the claim. The provisions of this subsection
362 may not be waived, voided, or nullified by the terms of the
363 insurance policy. If there is a right to prejudgment interest,
364 the insured must select whether to receive prejudgment interest
365 or interest under this subsection. Interest is payable when the
366 claim or portion of the claim is paid. Failure to comply with
367 this subsection constitutes a violation of this code. However,
368 failure to comply with this subsection does not form the sole
369 basis for a private cause of action.
370 (b) Notwithstanding the definitions in subsection (5), for
371 purposes of this subsection, the term “claim” means any of the
372 following:
373 1. A claim under an insurance policy providing residential
374 coverage as defined in s. 627.4025(1).
375 2. A claim for structural or contents coverage under a
376 commercial property insurance policy if the insured structure is
377 10,000 square feet or less.
378 3. A claim for contents coverage under a commercial tenant
379 policy if the insured premises is 10,000 square feet or less.
380 (c) This subsection does not apply to claims under an
381 insurance policy covering structures or contents in more than
382 one state.
383 (8) The requirements of this section are tolled:
384 (a) During the pendency of any mediation proceeding under
385 s. 627.7015 or any alternative dispute resolution proceeding
386 provided for in the insurance contract. The tolling period ends
387 upon the end of the mediation or alternative dispute resolution
388 proceeding.
389 (b) Upon the failure of a policyholder or a representative
390 of the policyholder to provide material claims information
391 requested by the insurer within 10 days after the request was
392 received. The tolling period ends upon the insurer’s receipt of
393 the requested information. Tolling under this paragraph applies
394 only to requests sent by the insurer to the policyholder or a
395 representative of the policyholder at least 15 days before the
396 insurer is required to pay or deny the claim or a portion of the
397 claim under subsection (7).
398 Section 9. Subsection (2) of section 627.70132, Florida
399 Statutes, is amended to read:
400 627.70132 Notice of property insurance claim.—
401 (2) A claim or reopened claim, but not a supplemental
402 claim, under an insurance policy that provides property
403 insurance, as defined in s. 624.604, including a property
404 insurance policy issued by an eligible surplus lines insurer,
405 for loss or damage caused by any peril is barred unless notice
406 of the claim was given to the insurer in accordance with the
407 terms of the policy within 1 year after the date of loss. A
408 supplemental claim is barred unless notice of the supplemental
409 claim was given to the insurer in accordance with the terms of
410 the policy within 18 months after the date of loss. The time
411 limitations of this subsection are tolled during any term of
412 deployment to a combat zone or combat support posting which
413 materially affects the ability of a named insured who is a
414 servicemember as defined in s. 250.01 to file a claim,
415 supplemental claim, or reopened claim.
416 Section 10. Section 626.9263, Florida Statutes, is created
417 to read:
418 626.9263 Notice of property insurance claim.—
419 (1) As used in this section, the term:
420 (a) “Reopened claim” means a claim that an insurer has
421 previously closed, but that has been reopened upon an insured’s
422 request for additional costs for loss or damage previously
423 disclosed to the insurer.
424 (b) “Supplemental claim” means a claim for additional loss
425 or damage from the same peril which the insurer has previously
426 adjusted or for which costs have been incurred while completing
427 repairs or replacement pursuant to an open claim for which
428 timely notice was previously provided to the insurer.
429 (2) A claim or reopened claim, but not a supplemental
430 claim, under an insurance policy that provides property
431 insurance, as defined in s. 624.604, for loss or damage caused
432 by any peril is barred unless notice of the claim was given to
433 the insurer in accordance with the terms of the policy within 1
434 year after the date of loss. A supplemental claim is barred
435 unless notice of the supplemental claim was given to the insurer
436 in accordance with the terms of the policy within 18 months
437 after the date of loss. The time limitations of this subsection
438 are tolled during any term of deployment to a combat zone or
439 combat support posting which materially affects the ability of a
440 named insured who is a servicemember as defined in s. 250.01 to
441 file a claim, supplemental claim, or reopened claim.
442 (3) For claims resulting from hurricanes, tornadoes,
443 windstorms, severe rain, or other weather-related events, the
444 date of loss is the date that the hurricane made landfall or the
445 tornado, windstorm, severe rain, or other weather-related event
446 is verified by the National Oceanic and Atmospheric
447 Administration.
448 (4)(a) A notice of claim for loss assessment coverage under
449 s. 627.714 may not occur later than 3 years after the date of
450 loss and must be provided to the insurer the later of:
451 1. Within 1 year after the date of loss; or
452 2. Within 90 days after the date on which the condominium
453 association or its governing board votes to levy an assessment
454 resulting from a covered loss.
455 (b) For purposes of this subsection, the term “date of
456 loss” means the date of the covered loss event that created the
457 need for an assessment.
458 (5) This section does not affect any applicable limitation
459 on civil actions provided in s. 95.11 for claims, supplemental
460 claims, or reopened claims timely filed under this section.
461 Section 11. Subsection (1) of section 627.70152, Florida
462 Statutes, is amended to read:
463 627.70152 Suits arising under a property insurance policy.—
464 (1) APPLICATION.—This section applies exclusively to all
465 suits arising under a residential or commercial property
466 insurance policy, including a residential or commercial property
467 insurance policy issued by an eligible surplus lines insurer.
468 Section 12. Section 626.9264, Florida Statutes, is created
469 to read:
470 626.9264 Suits arising under a property insurance policy.—
471 (1) APPLICATION.—This section applies exclusively to all
472 suits arising under a residential or commercial property
473 insurance policy.
474 (2) DEFINITIONS.—As used in this section, the term:
475 (a) “Claimant” means an insured who is filing suit under a
476 residential or commercial property insurance policy.
477 (b) “Disputed amount” means the difference between the
478 claimant’s presuit settlement demand, not including attorney
479 fees and costs listed in the demand, and the insurer’s presuit
480 settlement offer, not including attorney fees and costs, if part
481 of the offer.
482 (c) “Presuit settlement demand” means the demand made by
483 the claimant in the written notice of intent to initiate
484 litigation as required by paragraph (3)(a). The demand must
485 include the amount of reasonable and necessary attorney fees and
486 costs incurred by the claimant, to be calculated by multiplying
487 the number of hours actually worked on the claim by the
488 claimant’s attorney as of the date of the notice by a reasonable
489 hourly rate.
490 (d) “Presuit settlement offer” means the offer made by the
491 insurer in its written response to the notice required under
492 subsection (3).
493 (3) NOTICE.—
494 (a) As a condition precedent to filing a suit under a
495 property insurance policy, a claimant must provide the
496 department with written notice of intent to initiate litigation
497 on a form provided by the department. Such notice must be given
498 at least 10 business days before filing suit under the policy,
499 but may not be given before the insurer has made a determination
500 of coverage under s. 626.9263. Notice to the insurer must be
501 provided by the department to the e-mail address designated by
502 the insurer under s. 624.422. The notice must state with
503 specificity all of the following information:
504 1. That the notice is provided pursuant to this section.
505 2. The alleged acts or omissions of the insurer giving rise
506 to the suit, which may include a denial of coverage.
507 3. If provided by an attorney or other representative, that
508 a copy of the notice was provided to the claimant.
509 4. If the notice is provided following a denial of
510 coverage, an estimate of damages, if known.
511 5. If the notice is provided following acts or omissions by
512 the insurer other than denial of coverage, both of the
513 following:
514 a. The presuit settlement demand, which must itemize the
515 damages, attorney fees, and costs.
516 b. The disputed amount.
517
518 Documentation to support the information provided in this
519 paragraph may be provided along with the notice to the insurer.
520 (b) A claimant must serve a notice of intent to initiate
521 litigation within the time limits provided in s. 95.11. However,
522 the notice is not required if the suit is a counterclaim.
523 Service of a notice tolls the time limits provided in s. 95.11
524 for 10 business days if such time limits will expire before the
525 end of the 10-day notice period.
526 (4) INSURER DUTIES.—An insurer must have a procedure for
527 the prompt investigation, review, and evaluation of the dispute
528 stated in the notice and must investigate each claim contained
529 in the notice in accordance with the Florida Insurance Code. An
530 insurer must respond in writing within 10 business days after
531 receiving the notice specified in subsection (3). The insurer
532 must provide the response to the claimant by e-mail if the
533 insured has designated an e-mail address in the notice.
534 (a) If an insurer is responding to a notice served on the
535 insurer following a denial of coverage by the insurer, the
536 insurer must respond by:
537 1. Accepting coverage;
538 2. Continuing to deny coverage; or
539 3. Asserting the right to reinspect the damaged property.
540 If the insurer responds by asserting the right to reinspect the
541 damaged property, it has 14 business days after the response
542 asserting that right to reinspect the property to accept or
543 continue to deny coverage. The time limits provided in s. 95.11
544 are tolled during the reinspection period if such time limits
545 expire before the end of the reinspection period. If the insurer
546 continues to deny coverage, the claimant may file suit without
547 providing additional notice to the insurer.
548 (b) If an insurer is responding to a notice provided to the
549 insurer alleging an act or omission by the insurer other than a
550 denial of coverage, the insurer must respond by making a
551 settlement offer or requiring the claimant to participate in
552 appraisal or another method of alternative dispute resolution.
553 The time limits provided in s. 95.11 are tolled as long as
554 appraisal or other alternative dispute resolution is ongoing if
555 such time limits expire during the appraisal process or dispute
556 resolution process. If the appraisal or alternative dispute
557 resolution has not been concluded within 90 days after the
558 expiration of the 10-day notice of intent to initiate litigation
559 specified in subsection (3), the claimant or claimant’s attorney
560 may immediately file suit without providing the insurer
561 additional notice.
562 (5) DISMISSAL OF SUIT.—A court must dismiss without
563 prejudice any claimant’s suit relating to a claim for which a
564 notice of intent to initiate litigation was not given as
565 required by this section or if such suit is commenced before the
566 expiration of any time period provided under subsection (4), as
567 applicable.
568 (6) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice
569 provided pursuant to subsection (3) and, if applicable, the
570 documentation to support the information provided in the notice:
571 (a) Are not admissible as evidence in any proceeding.
572 (b) Do not relieve any obligation that an insured or
573 assignee has to give notice under any other provision of law.
574 (7) TOLLING.—If a claim is not resolved during the presuit
575 notice process and if the time limits provided in s. 95.11
576 expire in the 30 days following the conclusion of the presuit
577 notice process, such time limits are tolled for 30 days.
578 Section 13. Section 626.9265, Florida Statutes, is created
579 to read:
580 626.9265 Assignment agreements.—A policyholder may not
581 assign, in whole or in part, any post-loss insurance benefit
582 under any residential property insurance policy or under any
583 commercial property insurance policy, as defined in s.
584 627.0625(1)(a). An attempt to assign post-loss property
585 insurance benefits under such a policy is void, invalid, and
586 unenforceable.
587 Section 14. Section 626.9266, Florida Statutes, is created
588 to read:
589 626.9266 Nonjoinder of insurers.—
590 (1) It shall be a condition precedent to the accrual or
591 maintenance of a cause of action against a liability insurer by
592 a person who is not an insured under the terms of the liability
593 insurance contract that such person must first obtain a
594 settlement or verdict against a person who is an insured under
595 the terms of such policy for a cause of action which is covered
596 by such policy.
597 (2) Notwithstanding subsection (1), any insurer that pays
598 any taxable costs or attorney fees that would be recoverable by
599 the insured but for the fact that such costs or fees were paid
600 by the insurer is considered a party for the purpose of
601 recovering such fees or costs. A person who is not an insured
602 under the terms of a liability insurance policy may not have any
603 interest in such policy, either as a third-party beneficiary or
604 otherwise, before first obtaining a settlement or verdict
605 against a person who is an insured under the terms of such
606 policy for a cause of action which is covered by such policy.
607 (3) Insurers are affirmatively granted the substantive
608 right to insert in liability insurance policies contractual
609 provisions that preclude persons who are not designated as
610 insureds in such policies from joining a liability insurer as a
611 party defendant with its insured before the rendition of a
612 verdict. The contractual provisions authorized in this
613 subsection are fully enforceable.
614 (4) When a judgment is entered or a settlement is reached
615 during the pendency of litigation, a liability insurer may be
616 joined as a party defendant for the purposes of entering final
617 judgment or enforcing the settlement by the motion of any party,
618 unless the insurer denied coverage under s. 627.426(2) or
619 defended under a reservation of rights pursuant to s.
620 627.426(2). A copy of the motion to join the insurer must be
621 served on the insurer by certified mail. If a judgment is
622 reversed or remanded on appeal, the insurer’s presence may not
623 be disclosed to the jury in a subsequent trial.
624 Section 15. Subsection (1) of section 627.952, Florida
625 Statutes, is amended to read:
626 627.952 Risk retention and purchasing group agents.—
627 (1) Any person offering, soliciting, selling, purchasing,
628 administering, or otherwise servicing insurance contracts,
629 certificates, or agreements for any purchasing group or risk
630 retention group to any resident of this state, either directly
631 or indirectly, by the use of mail, advertising, or other means
632 of communication, shall obtain a license and appointment to act
633 as a resident general lines agent, if a resident of this state,
634 or a nonresident general lines agent if not a resident. Any such
635 person shall be subject to all requirements of the Florida
636 Insurance Code.
637 (a) All books, records, statements, and accounts required
638 to be established and maintained with respect to activities
639 described in this subsection shall be established and maintained
640 on a segregated basis, separate and apart from all other books,
641 records, statements, and accounts regarding the agent’s other
642 transactions.
643 (b) Any person required to be licensed and appointed under
644 this subsection, in order to place business through Florida
645 eligible surplus lines carriers, must, if a resident of this
646 state, be licensed and appointed as a surplus lines agent. If
647 not a resident of this state, such person must be licensed and
648 appointed as a surplus lines agent in her or his state of
649 residence and be licensed and appointed as a nonresident surplus
650 lines agent in this state.
651 Section 16. Section 626.931, Florida Statutes, is amended
652 to read:
653 626.931 Agent affidavit and Insurer reporting
654 requirements.—
655 (1) Each surplus lines agent that has transacted business
656 during a calendar quarter shall on or before the 45th day
657 following the calendar quarter file with the Florida Surplus
658 Lines Service Office an affidavit, on forms as prescribed and
659 furnished by the Florida Surplus Lines Service Office, stating
660 that all surplus lines insurance transacted by him or her during
661 such calendar quarter has been submitted to the Florida Surplus
662 Lines Service Office as required.
663 (2) The affidavit of the surplus lines agent shall include
664 efforts made to place coverages with authorized insurers and the
665 results thereof.
666 (1)(3) Each foreign insurer accepting premiums shall, on or
667 before the end of the month following each calendar quarter,
668 file with the Florida Surplus Lines Service Office a verified
669 report of all surplus lines insurance transacted by such insurer
670 for insurance risks located in this state during such calendar
671 quarter.
672 (2)(4) Each alien insurer accepting premiums shall, on or
673 before June 30 of each year, file with the Florida Surplus Lines
674 Service Office a verified report of all surplus lines insurance
675 transacted by such insurer for insurance risks located in this
676 state during the preceding calendar year.
677 (3)(5) The department may waive the filing requirements
678 described in subsections (1) (3) and (2) (4).
679 (4)(6) Each insurer’s report and supporting information
680 shall be in a computer-readable format as determined by the
681 Florida Surplus Lines Service Office or shall be submitted on
682 forms prescribed by the Florida Surplus Lines Service Office and
683 shall show for each applicable agent:
684 (a) A listing of all policies, certificates, cover notes,
685 or other forms of confirmation of insurance coverage or any
686 substitutions thereof or endorsements thereto and the
687 identifying number; and
688 (b) Any additional information required by the department
689 or Florida Surplus Lines Service Office.
690 Section 17. Paragraph (a) of subsection (2) and subsection
691 (6) of section 626.932, Florida Statutes, are amended to read:
692 626.932 Surplus lines tax.—
693 (2)(a) The surplus lines agent shall make payable to the
694 department the tax related to each calendar quarter’s business
695 as reported to the Florida Surplus Lines Service Office, and
696 remit the tax to the Florida Surplus Lines Service Office at the
697 same time as the fee required provided for the filing of the
698 quarterly affidavit, under s. 626.9325 s. 626.931. The Florida
699 Surplus Lines Service Office shall forward to the department the
700 taxes and any interest collected pursuant to paragraph (b),
701 within 10 days after of receipt.
702 (6) For the purposes of this section, the term “premium”
703 means the consideration for insurance by whatever name called
704 and includes any assessment, or any membership, policy, survey,
705 inspection, service, or similar fee or charge in consideration
706 for an insurance contract, which items are deemed to be a part
707 of the premium. The per-policy fee authorized by s. 626.916(2)
708 s. 626.916(4) is specifically included within the meaning of the
709 term “premium.” However, the service fee imposed pursuant to s.
710 626.9325 is excluded from the meaning of the term “premium.”
711 Section 18. Paragraph (c) of subsection (6) of section
712 627.351, Florida Statutes, is amended to read:
713 627.351 Insurance risk apportionment plans.—
714 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
715 (c) The corporation’s plan of operation:
716 1. Must provide for adoption of residential property and
717 casualty insurance policy forms and commercial residential and
718 nonresidential property insurance forms, which must be approved
719 by the office before use. The corporation shall adopt the
720 following policy forms:
721 a. Standard personal lines policy forms that are
722 comprehensive multiperil policies providing full coverage of a
723 residential property equivalent to the coverage provided in the
724 private insurance market under an HO-3, HO-4, or HO-6 policy.
725 b. Basic personal lines policy forms that are policies
726 similar to an HO-8 policy or a dwelling fire policy that provide
727 coverage meeting the requirements of the secondary mortgage
728 market, but which is more limited than the coverage under a
729 standard policy.
730 c. Commercial lines residential and nonresidential policy
731 forms that are generally similar to the basic perils of full
732 coverage obtainable for commercial residential structures and
733 commercial nonresidential structures in the admitted voluntary
734 market.
735 d. Personal lines and commercial lines residential property
736 insurance forms that cover the peril of wind only. The forms are
737 applicable only to residential properties located in areas
738 eligible for coverage by the Florida Windstorm Underwriting
739 Association, as those areas were defined on January 1, 2002.
740 e. Commercial lines nonresidential property insurance forms
741 that cover the peril of wind only. The forms are applicable only
742 to nonresidential properties located in areas eligible for
743 coverage by the Florida Windstorm Underwriting Association, as
744 those areas were defined on January 1, 2002.
745 f. The corporation may adopt variations of the policy forms
746 listed in sub-subparagraphs a.-e. which contain more restrictive
747 coverage.
748 g. The corporation shall offer a basic personal lines
749 policy similar to an HO-8 policy with dwelling repair based on
750 common construction materials and methods.
751 2. Must provide that the corporation adopt a program in
752 which the corporation and authorized insurers enter into quota
753 share primary insurance agreements for hurricane coverage, as
754 defined in s. 627.4025(2)(a), for eligible risks, and adopt
755 property insurance forms for eligible risks which cover the
756 peril of wind only.
757 a. As used in this subsection, the term:
758 (I) “Approved surplus lines insurer” means an eligible
759 surplus lines insurer that:
760 (A) Has a financial strength rating of “A-” or higher from
761 A.M. Best Company;
762 (B) Has a personal lines residential risk program that is
763 managed by a Florida resident surplus lines broker;
764 (C) Applies to the office to participate in the take-out
765 process to offer coverage to applicants for new coverage from
766 the corporation or current policyholders of the corporation
767 through a take-out plan approved by the office;
768 (D) Does not, as part of any take-out plan approved by the
769 office, offer coverage on any personal lines residential risk
770 that is a primary residence or has a homestead exemption under
771 chapter 196;
772 (E) Files rates for review as part of a take-out plan with
773 the office. The office shall review whether the premium is more
774 than 20 percent greater than the premium for comparable coverage
775 from the corporation; and
776 (F) Provides data to the office related to coverage and
777 rates in a format promulgated by the commission.
778 (II) “Eligible risks” means personal lines residential and
779 commercial lines residential risks that meet the underwriting
780 criteria of the corporation and are located in areas that were
781 eligible for coverage by the Florida Windstorm Underwriting
782 Association on January 1, 2002.
783 (III) “Primary residence” means the dwelling that is the
784 policyholder’s primary home or is a rental property that is the
785 primary home of the tenant, and which the policyholder or tenant
786 occupies for more than 9 months of each year.
787 (IV) “Quota share primary insurance” means an arrangement
788 in which the primary hurricane coverage of an eligible risk is
789 provided in specified percentages by the corporation and an
790 authorized insurer. The corporation and authorized insurer are
791 each solely responsible for a specified percentage of hurricane
792 coverage of an eligible risk as set forth in a quota share
793 primary insurance agreement between the corporation and an
794 authorized insurer and the insurance contract. The
795 responsibility of the corporation or authorized insurer to pay
796 its specified percentage of hurricane losses of an eligible
797 risk, as set forth in the agreement, may not be altered by the
798 inability of the other party to pay its specified percentage of
799 losses. Eligible risks that are provided hurricane coverage
800 through a quota share primary insurance arrangement must be
801 provided policy forms that set forth the obligations of the
802 corporation and authorized insurer under the arrangement,
803 clearly specify the percentages of quota share primary insurance
804 provided by the corporation and authorized insurer, and
805 conspicuously and clearly state that the authorized insurer and
806 the corporation may not be held responsible beyond their
807 specified percentage of coverage of hurricane losses.
808 b. The corporation may enter into quota share primary
809 insurance agreements with authorized insurers at corporation
810 coverage levels of 90 percent and 50 percent.
811 c. If the corporation determines that additional coverage
812 levels are necessary to maximize participation in quota share
813 primary insurance agreements by authorized insurers, the
814 corporation may establish additional coverage levels. However,
815 the corporation’s quota share primary insurance coverage level
816 may not exceed 90 percent.
817 d. Any quota share primary insurance agreement entered into
818 between an authorized insurer and the corporation must provide
819 for a uniform specified percentage of coverage of hurricane
820 losses, by county or territory as set forth by the corporation
821 board, for all eligible risks of the authorized insurer covered
822 under the agreement.
823 e. Any quota share primary insurance agreement entered into
824 between an authorized insurer and the corporation is subject to
825 review and approval by the office. However, such agreement shall
826 be authorized only as to insurance contracts entered into
827 between an authorized insurer and an insured who is already
828 insured by the corporation for wind coverage.
829 f. For all eligible risks covered under quota share primary
830 insurance agreements, the exposure and coverage levels for both
831 the corporation and authorized insurers shall be reported by the
832 corporation to the Florida Hurricane Catastrophe Fund. For all
833 policies of eligible risks covered under such agreements, the
834 corporation and the authorized insurer must maintain complete
835 and accurate records for the purpose of exposure and loss
836 reimbursement audits as required by fund rules. The corporation
837 and the authorized insurer shall each maintain duplicate copies
838 of policy declaration pages and supporting claims documents.
839 g. The corporation board shall establish in its plan of
840 operation standards for quota share agreements which ensure that
841 there is no discriminatory application among insurers as to the
842 terms of the agreements, pricing of the agreements, incentive
843 provisions if any, and consideration paid for servicing policies
844 or adjusting claims.
845 h. The quota share primary insurance agreement between the
846 corporation and an authorized insurer must set forth the
847 specific terms under which coverage is provided, including, but
848 not limited to, the sale and servicing of policies issued under
849 the agreement by the insurance agent of the authorized insurer
850 producing the business, the reporting of information concerning
851 eligible risks, the payment of premium to the corporation, and
852 arrangements for the adjustment and payment of hurricane claims
853 incurred on eligible risks by the claims adjuster and personnel
854 of the authorized insurer. Entering into a quota sharing
855 insurance agreement between the corporation and an authorized
856 insurer is voluntary and at the discretion of the authorized
857 insurer.
858 3. May provide that the corporation may employ or otherwise
859 contract with individuals or other entities to provide
860 administrative or professional services that may be appropriate
861 to effectuate the plan. The corporation may borrow funds by
862 issuing bonds or by incurring other indebtedness, and shall have
863 other powers reasonably necessary to effectuate the requirements
864 of this subsection, including, without limitation, the power to
865 issue bonds and incur other indebtedness in order to refinance
866 outstanding bonds or other indebtedness. The corporation may
867 seek judicial validation of its bonds or other indebtedness
868 under chapter 75. The corporation may issue bonds or incur other
869 indebtedness, or have bonds issued on its behalf by a unit of
870 local government pursuant to subparagraph (q)2. in the absence
871 of a hurricane or other weather-related event, upon a
872 determination by the corporation, subject to approval by the
873 office, that such action would enable it to efficiently meet the
874 financial obligations of the corporation and that such
875 financings are reasonably necessary to effectuate the
876 requirements of this subsection. The corporation may take all
877 actions needed to facilitate tax-free status for such bonds or
878 indebtedness, including formation of trusts or other affiliated
879 entities. The corporation may pledge assessments, projected
880 recoveries from the Florida Hurricane Catastrophe Fund, other
881 reinsurance recoverables, policyholder surcharges and other
882 surcharges, and other funds available to the corporation as
883 security for bonds or other indebtedness. In recognition of s.
884 10, Art. I of the State Constitution, prohibiting the impairment
885 of obligations of contracts, it is the intent of the Legislature
886 that no action be taken whose purpose is to impair any bond
887 indenture or financing agreement or any revenue source committed
888 by contract to such bond or other indebtedness.
889 4. Must require that the corporation operate subject to the
890 supervision and approval of a board of governors consisting of
891 nine individuals who are residents of this state and who are
892 from different geographical areas of the state, one of whom is
893 appointed by the Governor and serves solely to advocate on
894 behalf of the consumer. The appointment of a consumer
895 representative by the Governor is deemed to be within the scope
896 of the exemption provided in s. 112.313(7)(b) and is in addition
897 to the appointments authorized under sub-subparagraph a.
898 a. The Governor, the Chief Financial Officer, the President
899 of the Senate, and the Speaker of the House of Representatives
900 shall each appoint two members of the board. At least one of the
901 two members appointed by each appointing officer must have
902 demonstrated expertise in insurance and be deemed to be within
903 the scope of the exemption provided in s. 112.313(7)(b). The
904 Chief Financial Officer shall designate one of the appointees as
905 chair. All board members serve at the pleasure of the appointing
906 officer. All members of the board are subject to removal at will
907 by the officers who appointed them. All board members, including
908 the chair, must be appointed to serve for 3-year terms beginning
909 annually on a date designated by the plan. However, for the
910 first term beginning on or after July 1, 2009, each appointing
911 officer shall appoint one member of the board for a 2-year term
912 and one member for a 3-year term. A board vacancy shall be
913 filled for the unexpired term by the appointing officer. The
914 Chief Financial Officer shall appoint a technical advisory group
915 to provide information and advice to the board in connection
916 with the board’s duties under this subsection. The executive
917 director and senior managers of the corporation shall be engaged
918 by the board and serve at the pleasure of the board. Any
919 executive director appointed on or after July 1, 2006, is
920 subject to confirmation by the Senate. The executive director is
921 responsible for employing other staff as the corporation may
922 require, subject to review and concurrence by the board.
923 b. The board shall create a Market Accountability Advisory
924 Committee to assist the corporation in developing awareness of
925 its rates and its customer and agent service levels in
926 relationship to the voluntary market insurers writing similar
927 coverage.
928 (I) The members of the advisory committee consist of the
929 following 11 persons, one of whom must be elected chair by the
930 members of the committee: four representatives, one appointed by
931 the Florida Association of Insurance Agents, one by the Florida
932 Association of Insurance and Financial Advisors, one by the
933 Professional Insurance Agents of Florida, and one by the Latin
934 American Association of Insurance Agencies; three
935 representatives appointed by the insurers with the three highest
936 voluntary market share of residential property insurance
937 business in the state; one representative from the Office of
938 Insurance Regulation; one consumer appointed by the board who is
939 insured by the corporation at the time of appointment to the
940 committee; one representative appointed by the Florida
941 Association of Realtors; and one representative appointed by the
942 Florida Bankers Association. All members shall be appointed to
943 3-year terms and may serve for consecutive terms.
944 (II) The committee shall report to the corporation at each
945 board meeting on insurance market issues which may include rates
946 and rate competition with the voluntary market; service,
947 including policy issuance, claims processing, and general
948 responsiveness to policyholders, applicants, and agents; and
949 matters relating to depopulation.
950 5. Must provide a procedure for determining the eligibility
951 of a risk for coverage, as follows:
952 a. Subject to s. 627.3517, with respect to personal lines
953 residential risks that are primary residences, if the risk is
954 offered coverage from an authorized insurer at the insurer’s
955 approved rate under a standard policy including wind coverage
956 or, if consistent with the insurer’s underwriting rules as filed
957 with the office, a basic policy including wind coverage, for a
958 new application to the corporation for coverage, the risk is not
959 eligible for any policy issued by the corporation unless the
960 premium for coverage from the authorized insurer is more than 20
961 percent greater than the premium for comparable coverage from
962 the corporation. Whenever an offer of coverage for a personal
963 lines residential risk that is a primary residence is received
964 for a policyholder of the corporation at renewal from an
965 authorized insurer, if the offer is equal to or less than the
966 corporation’s renewal premium for comparable coverage, the risk
967 is not eligible for coverage with the corporation for policies
968 that renew before April 1, 2023; for policies that renew on or
969 after that date, the risk is not eligible for coverage with the
970 corporation unless the premium for coverage from the authorized
971 insurer is more than 20 percent greater than the corporation’s
972 renewal premium for comparable coverage. If the risk is not able
973 to obtain such offer, the risk is eligible for a standard policy
974 including wind coverage or a basic policy including wind
975 coverage issued by the corporation; however, if the risk could
976 not be insured under a standard policy including wind coverage
977 regardless of market conditions, the risk is eligible for a
978 basic policy including wind coverage unless rejected under
979 subparagraph 8. The corporation shall determine the type of
980 policy to be provided on the basis of objective standards
981 specified in the underwriting manual and based on generally
982 accepted underwriting practices. A policyholder removed from the
983 corporation through an assumption agreement does not remain
984 eligible for coverage from the corporation after the end of the
985 policy term. However, any policy removed from the corporation
986 through an assumption agreement remains on the corporation’s
987 policy forms through the end of the policy term. This sub
988 subparagraph applies only to risks that are primary residences.
989 (I) If the risk accepts an offer of coverage through the
990 market assistance plan or through a mechanism established by the
991 corporation other than a plan established by s. 627.3518, before
992 a policy is issued to the risk by the corporation or during the
993 first 30 days of coverage by the corporation, and the producing
994 agent who submitted the application to the plan or to the
995 corporation is not currently appointed by the insurer, the
996 insurer shall:
997 (A) Pay to the producing agent of record of the policy for
998 the first year, an amount that is the greater of the insurer’s
999 usual and customary commission for the type of policy written or
1000 a fee equal to the usual and customary commission of the
1001 corporation; or
1002 (B) Offer to allow the producing agent of record of the
1003 policy to continue servicing the policy for at least 1 year and
1004 offer to pay the agent the greater of the insurer’s or the
1005 corporation’s usual and customary commission for the type of
1006 policy written.
1007
1008 If the producing agent is unwilling or unable to accept
1009 appointment, the new insurer shall pay the agent in accordance
1010 with sub-sub-sub-subparagraph (A).
1011 (II) If the corporation enters into a contractual agreement
1012 for a take-out plan, the producing agent of record of the
1013 corporation policy is entitled to retain any unearned commission
1014 on the policy, and the insurer shall:
1015 (A) Pay to the producing agent of record, for the first
1016 year, an amount that is the greater of the insurer’s usual and
1017 customary commission for the type of policy written or a fee
1018 equal to the usual and customary commission of the corporation;
1019 or
1020 (B) Offer to allow the producing agent of record to
1021 continue servicing the policy for at least 1 year and offer to
1022 pay the agent the greater of the insurer’s or the corporation’s
1023 usual and customary commission for the type of policy written.
1024
1025 If the producing agent is unwilling or unable to accept
1026 appointment, the new insurer shall pay the agent in accordance
1027 with sub-sub-sub-subparagraph (A).
1028 b. Subject to s. 627.3517, with respect to personal lines
1029 residential risks that are not primary residences, if the risk
1030 is offered coverage from an authorized insurer at the insurer’s
1031 approved rate or from an approved surplus lines insurer at the
1032 rate approved by the office as part of such surplus lines
1033 insurer’s take-out plan for a new application to the corporation
1034 for coverage, the risk is not eligible for any policy issued by
1035 the corporation unless the premium for coverage from the
1036 authorized insurer or approved surplus lines insurer is more
1037 than 20 percent greater than the premium for comparable coverage
1038 from the corporation. Whenever an offer of coverage for a
1039 personal lines residential risk that is not a primary residence
1040 is received for a policyholder of the corporation at renewal
1041 from an authorized insurer at the insurer’s approved rate or an
1042 approved surplus lines insurer at the rate approved by the
1043 office as part of such insurer’s take-out plan, the risk is not
1044 eligible for coverage with the corporation unless the premium
1045 for coverage from the authorized insurer or approved surplus
1046 lines insurer is more than 20 percent greater than the
1047 corporation’s renewal premium for comparable coverage for
1048 policies that renew on or after July 1, 2024. If the risk is not
1049 able to obtain such offer, the risk is eligible for a standard
1050 policy including wind coverage or a basic policy including wind
1051 coverage issued by the corporation. If the risk could not be
1052 insured under a standard policy including wind coverage
1053 regardless of market conditions, the risk is eligible for a
1054 basic policy including wind coverage unless rejected under
1055 subparagraph 8. The corporation shall determine the type of
1056 policy to be provided on the basis of objective standards
1057 specified in the underwriting manual and based on generally
1058 accepted underwriting practices. A policyholder removed from the
1059 corporation through an assumption agreement does not remain
1060 eligible for coverage from the corporation after the end of the
1061 policy term. However, any policy removed from the corporation
1062 through an assumption agreement remains on the corporation’s
1063 policy forms through the end of the policy term.
1064 (I) If the risk accepts an offer of coverage through the
1065 market assistance plan or through a mechanism established by the
1066 corporation other than a plan established by s. 627.3518, before
1067 a policy is issued to the risk by the corporation or during the
1068 first 30 days of coverage by the corporation, and the producing
1069 agent who submitted the application to the plan or to the
1070 corporation is not currently appointed by the insurer, the
1071 insurer must:
1072 (A) Pay to the producing agent of record of the policy, for
1073 the first year, an amount that is the greater of the insurer’s
1074 usual and customary commission for the type of policy written or
1075 a fee equal to the usual and customary commission of the
1076 corporation; or
1077 (B) Offer to allow the producing agent of record of the
1078 policy to continue servicing the policy for at least 1 year and
1079 offer to pay the agent the greater of the insurer’s or the
1080 corporation’s usual and customary commission for the type of
1081 policy written.
1082
1083 If the producing agent is unwilling or unable to accept
1084 appointment, the new insurer must pay the agent in accordance
1085 with sub-sub-sub-subparagraph (A).
1086 (II) If the corporation enters into a contractual agreement
1087 for a take-out plan, the producing agent of record of the
1088 corporation policy is entitled to retain any unearned commission
1089 on the policy, and the insurer must:
1090 (A) Pay to the producing agent of record, for the first
1091 year, an amount that is the greater of the insurer’s usual and
1092 customary commission for the type of policy written or a fee
1093 equal to the usual and customary commission of the corporation;
1094 or
1095 (B) Offer to allow the producing agent of record to
1096 continue servicing the policy for at least 1 year and offer to
1097 pay the agent the greater of the insurer’s or the corporation’s
1098 usual and customary commission for the type of policy written.
1099
1100 If the producing agent is unwilling or unable to accept
1101 appointment, the new insurer shall pay the agent in accordance
1102 with sub-sub-sub-subparagraph (A).
1103 c. With respect to commercial lines residential risks, for
1104 a new application to the corporation for coverage, if the risk
1105 is offered coverage under a policy including wind coverage from
1106 an authorized insurer at its approved rate, the risk is not
1107 eligible for a policy issued by the corporation unless the
1108 premium for coverage from the authorized insurer is more than 20
1109 percent greater than the premium for comparable coverage from
1110 the corporation. Whenever an offer of coverage for a commercial
1111 lines residential risk is received for a policyholder of the
1112 corporation at renewal from an authorized insurer, the risk is
1113 not eligible for coverage with the corporation unless the
1114 premium for coverage from the authorized insurer is more than 20
1115 percent greater than the corporation’s renewal premium for
1116 comparable coverage. If the risk is not able to obtain any such
1117 offer, the risk is eligible for a policy including wind coverage
1118 issued by the corporation. A policyholder removed from the
1119 corporation through an assumption agreement remains eligible for
1120 coverage from the corporation until the end of the policy term.
1121 However, any policy removed from the corporation through an
1122 assumption agreement remains on the corporation’s policy forms
1123 through the end of the policy term.
1124 (I) If the risk accepts an offer of coverage through the
1125 market assistance plan or through a mechanism established by the
1126 corporation other than a plan established by s. 627.3518, before
1127 a policy is issued to the risk by the corporation or during the
1128 first 30 days of coverage by the corporation, and the producing
1129 agent who submitted the application to the plan or the
1130 corporation is not currently appointed by the insurer, the
1131 insurer shall:
1132 (A) Pay to the producing agent of record of the policy, for
1133 the first year, an amount that is the greater of the insurer’s
1134 usual and customary commission for the type of policy written or
1135 a fee equal to the usual and customary commission of the
1136 corporation; or
1137 (B) Offer to allow the producing agent of record of the
1138 policy to continue servicing the policy for at least 1 year and
1139 offer to pay the agent the greater of the insurer’s or the
1140 corporation’s usual and customary commission for the type of
1141 policy written.
1142
1143 If the producing agent is unwilling or unable to accept
1144 appointment, the new insurer shall pay the agent in accordance
1145 with sub-sub-sub-subparagraph (A).
1146 (II) If the corporation enters into a contractual agreement
1147 for a take-out plan, the producing agent of record of the
1148 corporation policy is entitled to retain any unearned commission
1149 on the policy, and the insurer shall:
1150 (A) Pay to the producing agent of record, for the first
1151 year, an amount that is the greater of the insurer’s usual and
1152 customary commission for the type of policy written or a fee
1153 equal to the usual and customary commission of the corporation;
1154 or
1155 (B) Offer to allow the producing agent of record to
1156 continue servicing the policy for at least 1 year and offer to
1157 pay the agent the greater of the insurer’s or the corporation’s
1158 usual and customary commission for the type of policy written.
1159
1160 If the producing agent is unwilling or unable to accept
1161 appointment, the new insurer shall pay the agent in accordance
1162 with sub-sub-sub-subparagraph (A).
1163 d. For purposes of determining comparable coverage under
1164 sub-subparagraphs a., b., and c., the comparison must be based
1165 on those forms and coverages that are reasonably comparable. The
1166 corporation may rely on a determination of comparable coverage
1167 and premium made by the producing agent who submits the
1168 application to the corporation, made in the agent’s capacity as
1169 the corporation’s agent. For purposes of comparing the premium
1170 for comparable coverage under sub-subparagraphs a., b., and c.,
1171 premium includes any surcharge or assessment that is actually
1172 applied to such policy. A comparison may be made solely of the
1173 premium with respect to the main building or structure only on
1174 the following basis: the same Coverage A or other building
1175 limits; the same percentage hurricane deductible that applies on
1176 an annual basis or that applies to each hurricane for commercial
1177 residential property; the same percentage of ordinance and law
1178 coverage, if the same limit is offered by both the corporation
1179 and the authorized insurer or the approved surplus lines
1180 insurer; the same mitigation credits, to the extent the same
1181 types of credits are offered both by the corporation and the
1182 authorized insurer or the approved surplus lines insurer; the
1183 same method for loss payment, such as replacement cost or actual
1184 cash value, if the same method is offered both by the
1185 corporation and the authorized insurer in accordance with
1186 underwriting rules; and any other form or coverage that is
1187 reasonably comparable as determined by the board. If an
1188 application is submitted to the corporation for wind-only
1189 coverage on a risk that is located in an area eligible for
1190 coverage by the Florida Windstorm Underwriting Association, as
1191 that area was defined on January 1, 2002, the premium for the
1192 corporation’s wind-only policy plus the premium for the ex-wind
1193 policy that is offered by an authorized insurer to the applicant
1194 must be compared to the premium for multiperil coverage offered
1195 by an authorized insurer, subject to the standards for
1196 comparison specified in this subparagraph. If the corporation or
1197 the applicant requests from the authorized insurer or the
1198 approved surplus lines insurer a breakdown of the premium of the
1199 offer by types of coverage so that a comparison may be made by
1200 the corporation or its agent and the authorized insurer or the
1201 approved surplus lines insurer refuses or is unable to provide
1202 such information, the corporation may treat the offer as not
1203 being an offer of coverage from an authorized insurer at the
1204 insurer’s approved rate.
1205 6. Must include rules for classifications of risks and
1206 rates.
1207 7. Must provide that if premium and investment income for
1208 the Citizens account, which are attributable to a particular
1209 calendar year, are in excess of projected losses and expenses
1210 for the Citizens account attributable to that year, such excess
1211 shall be held in surplus in the Citizens account. Such surplus
1212 must be available to defray deficits in the Citizens account as
1213 to future years and used for that purpose before assessing
1214 assessable insurers and assessable insureds as to any calendar
1215 year.
1216 8. Must provide objective criteria and procedures to be
1217 uniformly applied to all applicants in determining whether an
1218 individual risk is so hazardous as to be uninsurable. In making
1219 this determination and in establishing the criteria and
1220 procedures, the following must be considered:
1221 a. Whether the likelihood of a loss for the individual risk
1222 is substantially higher than for other risks of the same class;
1223 and
1224 b. Whether the uncertainty associated with the individual
1225 risk is such that an appropriate premium cannot be determined.
1226
1227 The acceptance or rejection of a risk by the corporation shall
1228 be construed as the private placement of insurance, and the
1229 provisions of chapter 120 do not apply.
1230 9. Must provide that the corporation make its best efforts
1231 to procure catastrophe reinsurance at reasonable rates, to cover
1232 its projected 100-year probable maximum loss as determined by
1233 the board of governors. If catastrophe reinsurance is not
1234 available at reasonable rates, the corporation need not purchase
1235 it, but the corporation shall include the costs of reinsurance
1236 to cover its projected 100-year probable maximum loss in its
1237 rate calculations even if it does not purchase catastrophe
1238 reinsurance.
1239 10. The policies issued by the corporation Must provide in
1240 the corporation policies that if the corporation or the market
1241 assistance plan obtains an offer from an authorized insurer to
1242 cover the risk at its approved rates, the risk is no longer
1243 eligible for renewal through the corporation, except as
1244 otherwise provided in this subsection.
1245 11. Corporation policies and applications Must include in
1246 the corporation policies and applications a notice that the
1247 corporation policy could, under this section, be replaced with a
1248 policy issued by an authorized insurer which does not provide
1249 coverage identical to the coverage provided by the corporation.
1250 The notice must also specify that acceptance of corporation
1251 coverage creates a conclusive presumption that the applicant or
1252 policyholder is aware of this potential.
1253 12. May establish, subject to approval by the office,
1254 different eligibility requirements and operational procedures
1255 for any line or type of coverage for any specified county or
1256 area if the board determines that such changes are justified due
1257 to the voluntary market being sufficiently stable and
1258 competitive in such area or for such line or type of coverage
1259 and that consumers who, in good faith, are unable to obtain
1260 insurance through the voluntary market through ordinary methods
1261 continue to have access to coverage from the corporation. If
1262 coverage is sought in connection with a real property transfer,
1263 the requirements and procedures may not provide an effective
1264 date of coverage later than the date of the closing of the
1265 transfer as established by the transferor, the transferee, and,
1266 if applicable, the lender.
1267 13. Must provide that the corporation appoint as its
1268 licensed agents only those agents who throughout such
1269 appointments also hold an appointment as defined in s. 626.015
1270 by at least three insurers who are authorized to write and are
1271 actually writing or renewing personal lines residential property
1272 coverage, commercial residential property coverage, or
1273 commercial nonresidential property coverage within the state.
1274 For purposes of agents writing or renewing commercial
1275 residential property coverage or commercial nonresidential
1276 property coverage, an agent may satisfy the requirement for any
1277 one or more of the three direct appointments by providing to the
1278 corporation a signed attestation confirming that he or she has
1279 access through a broker to an authorized insurer or eligible
1280 surplus lines insurer authorized to write and actually writing
1281 or renewing commercial residential property coverage or
1282 commercial nonresidential property coverage. However, such
1283 signed attestations do not satisfy the requirements necessary to
1284 write personal lines residential property coverage for the
1285 corporation.
1286 14. Must provide a premium payment plan option to its
1287 policyholders which, at a minimum, allows for quarterly and
1288 semiannual payment of premiums. A monthly payment plan may, but
1289 is not required to, be offered.
1290 15. Must limit coverage on mobile homes or manufactured
1291 homes built before 1994 to actual cash value of the dwelling
1292 rather than replacement costs of the dwelling.
1293 16. Must provide coverage for manufactured or mobile home
1294 dwellings. Such coverage must also include the following
1295 attached structures:
1296 a. Screened enclosures that are aluminum framed or screened
1297 enclosures that are not covered by the same or substantially the
1298 same materials as those of the primary dwelling;
1299 b. Carports that are aluminum or carports that are not
1300 covered by the same or substantially the same materials as those
1301 of the primary dwelling; and
1302 c. Patios that have a roof covering that is constructed of
1303 materials that are not the same or substantially the same
1304 materials as those of the primary dwelling.
1305
1306 The corporation shall make available a policy for mobile homes
1307 or manufactured homes for a minimum insured value of at least
1308 $3,000.
1309 17. May provide such limits of coverage as the board
1310 determines, consistent with the requirements of this subsection.
1311 18. May require commercial property to meet specified
1312 hurricane mitigation construction features as a condition of
1313 eligibility for coverage.
1314 19. Must provide that new or renewal policies issued by the
1315 corporation on or after January 1, 2012, which cover sinkhole
1316 loss do not include coverage for any loss to appurtenant
1317 structures, driveways, sidewalks, decks, or patios that are
1318 directly or indirectly caused by sinkhole activity. The
1319 corporation shall exclude such coverage using a notice of
1320 coverage change, which may be included with the policy renewal,
1321 and not by issuance of a notice of nonrenewal of the excluded
1322 coverage upon renewal of the current policy.
1323 20.a. Must require that the agent obtain from an applicant
1324 for coverage from the corporation an acknowledgment signed by
1325 the applicant, which includes, at a minimum, the following
1326 statement:
1327 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
1328 AND ASSESSMENT LIABILITY:
1329 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
1330 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS
1331 A DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER
1332 REASON, MY POLICY COULD BE SUBJECT TO SURCHARGES AND
1333 ASSESSMENTS, WHICH WILL BE DUE AND PAYABLE UPON RENEWAL,
1334 CANCELLATION, OR TERMINATION OF THE POLICY, AND THAT THE
1335 SURCHARGES AND ASSESSMENTS COULD BE AS HIGH AS 25 PERCENT
1336 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
1337 FLORIDA LEGISLATURE.
1338 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
1339 SURCHARGE, WHICH COULD BE AS HIGH AS 15 PERCENT OF MY
1340 PREMIUM, BY OBTAINING COVERAGE FROM A PRIVATE MARKET
1341 INSURER AND THAT TO BE ELIGIBLE FOR COVERAGE BY CITIZENS, I
1342 MUST FIRST TRY TO OBTAIN PRIVATE MARKET COVERAGE BEFORE
1343 APPLYING FOR OR RENEWING COVERAGE WITH CITIZENS. I
1344 UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES ARE
1345 REGULATED AND APPROVED BY THE STATE.
1346 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
1347 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
1348 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY
1349 THE FLORIDA LEGISLATURE.
1350 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
1351 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT
1352 OF THE STATE OF FLORIDA.
1353 b. The corporation shall maintain, in electronic format or
1354 otherwise, a copy of the applicant’s signed acknowledgment and
1355 provide a copy of the statement to the policyholder as part of
1356 the first renewal after the effective date of sub-subparagraph
1357 a.
1358 c. The signed acknowledgment form creates a conclusive
1359 presumption that the policyholder understood and accepted his or
1360 her potential surcharge and assessment liability as a
1361 policyholder of the corporation.
1362 21. Must provide that the income of the corporation may not
1363 inure to the benefit of any private person.
1364 Section 19. Subsection (5) of section 626.918, Florida
1365 Statutes, is amended to read:
1366 626.918 Eligible surplus lines insurers.—
1367 (5) When it appears that any particular insurance risk
1368 which is eligible for export, but on which insurance coverage,
1369 in whole or in part, is not procurable from the eligible surplus
1370 lines insurers, after a search of eligible surplus lines
1371 insurers, then the surplus lines agent may file a supplemental
1372 signed statement setting forth such facts and advising the
1373 office that such part of the risk as shall be unprocurable, as
1374 aforesaid, is being placed with named unauthorized insurers, in
1375 the amounts and percentages set forth in the statement. Such
1376 named unauthorized insurer shall, however, before accepting any
1377 risk in this state, deposit with the department cash or
1378 securities acceptable to the office and department of the market
1379 value of $50,000 for each individual risk, contract, or
1380 certificate, which deposit shall be held by the department for
1381 the benefit of Florida policyholders only; and the surplus lines
1382 agent shall procure from such unauthorized insurer and file with
1383 the office a certified copy of its statement of condition as of
1384 the close of the last calendar year. If such statement reveals,
1385 including both capital and surplus, net assets of at least that
1386 amount required for licensure of a domestic insurer, then the
1387 surplus lines agent may proceed to consummate such contract of
1388 insurance. Whenever any insurance risk, or any part thereof, is
1389 placed with an unauthorized insurer, as provided herein, the
1390 policy, binder, or cover note shall contain a statement signed
1391 by the insured and the agent with the following notation: “The
1392 insured is aware that certain insurers participating in this
1393 risk have not been approved to transact business in Florida nor
1394 have they been declared eligible as surplus lines insurers by
1395 the Office of Insurance Regulation of Florida. The placing of
1396 such insurance by a duly licensed surplus lines agent in Florida
1397 shall not be construed as approval of such insurer by the Office
1398 of Insurance Regulation of Florida. Consequently, the insured is
1399 aware that the insured has severely limited the assistance
1400 available under the insurance laws of Florida. The insured is
1401 further aware that he or she may be charged a reasonable per
1402 policy fee, as provided in s. 626.916(2) s. 626.916(4), Florida
1403 Statutes, for each policy certified for export.” All other
1404 provisions of this code shall apply to such placement the same
1405 as if such risks were placed with an eligible surplus lines
1406 insurer.
1407 Section 20. Subsection (6) of section 626.9325, Florida
1408 Statutes, is amended to read:
1409 626.9325 Service fee.—
1410 (6) For the purposes of this section, the term “premium”
1411 means the consideration for insurance by whatever name called
1412 and includes any assessment, or any membership, policy, survey,
1413 inspection, service, or similar fee or charge in consideration
1414 for an insurance contract, which items are deemed to be a part
1415 of the premium. The per-policy fee authorized by s. 626.916(2)
1416 s. 626.916(4) is specifically included within the meaning of the
1417 term “premium.”
1418 Section 21. Paragraph (o) of subsection (1) of section
1419 626.9541, Florida Statutes, is amended to read:
1420 626.9541 Unfair methods of competition and unfair or
1421 deceptive acts or practices defined.—
1422 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1423 ACTS.—The following are defined as unfair methods of competition
1424 and unfair or deceptive acts or practices:
1425 (o) Illegal dealings in premiums; excess or reduced charges
1426 for insurance.—
1427 1. Knowingly collecting any sum as a premium or charge for
1428 insurance, which is not then provided, or is not in due course
1429 to be provided, subject to acceptance of the risk by the
1430 insurer, by an insurance policy issued by an insurer as
1431 permitted by this code.
1432 2. Knowingly collecting as a premium or charge for
1433 insurance any sum in excess of or less than the premium or
1434 charge applicable to such insurance, in accordance with the
1435 applicable classifications and rates as filed with and approved
1436 by the office, and as specified in the policy; or, in cases when
1437 classifications, premiums, or rates are not required by this
1438 code to be so filed and approved, premiums and charges collected
1439 from a Florida resident in excess of or less than those
1440 specified in the policy and as fixed by the insurer.
1441 Notwithstanding any other provision of law, this provision shall
1442 not be deemed to prohibit the charging and collection, by
1443 surplus lines agents licensed under part VIII of this chapter,
1444 of the amount of applicable state and federal taxes, or fees as
1445 authorized by s. 626.916(2) s. 626.916(4), in addition to the
1446 premium required by the insurer or the charging and collection,
1447 by licensed agents, of the exact amount of any discount or other
1448 such fee charged by a credit card facility in connection with
1449 the use of a credit card, as authorized by subparagraph (q)3.,
1450 in addition to the premium required by the insurer. This
1451 subparagraph shall not be construed to prohibit collection of a
1452 premium for a universal life or a variable or indeterminate
1453 value insurance policy made in accordance with the terms of the
1454 contract.
1455 3.a. Imposing or requesting an additional premium for a
1456 policy of motor vehicle liability, personal injury protection,
1457 medical payment, or collision insurance or any combination
1458 thereof or refusing to renew the policy solely because the
1459 insured was involved in a motor vehicle accident unless the
1460 insurer’s file contains information from which the insurer in
1461 good faith determines that the insured was substantially at
1462 fault in the accident.
1463 b. An insurer which imposes and collects such a surcharge
1464 or which refuses to renew such policy shall, in conjunction with
1465 the notice of premium due or notice of nonrenewal, notify the
1466 named insured that he or she is entitled to reimbursement of
1467 such amount or renewal of the policy under the conditions listed
1468 below and will subsequently reimburse him or her or renew the
1469 policy, if the named insured demonstrates that the operator
1470 involved in the accident was:
1471 (I) Lawfully parked;
1472 (II) Reimbursed by, or on behalf of, a person responsible
1473 for the accident or has a judgment against such person;
1474 (III) Struck in the rear by another vehicle headed in the
1475 same direction and was not convicted of a moving traffic
1476 violation in connection with the accident;
1477 (IV) Hit by a “hit-and-run” driver, if the accident was
1478 reported to the proper authorities within 24 hours after
1479 discovering the accident;
1480 (V) Not convicted of a moving traffic violation in
1481 connection with the accident, but the operator of the other
1482 automobile involved in such accident was convicted of a moving
1483 traffic violation;
1484 (VI) Finally adjudicated not to be liable by a court of
1485 competent jurisdiction;
1486 (VII) In receipt of a traffic citation which was dismissed
1487 or nolle prossed; or
1488 (VIII) Not at fault as evidenced by a written statement
1489 from the insured establishing facts demonstrating lack of fault
1490 which are not rebutted by information in the insurer’s file from
1491 which the insurer in good faith determines that the insured was
1492 substantially at fault.
1493 c. In addition to the other provisions of this
1494 subparagraph, an insurer may not fail to renew a policy if the
1495 insured has had only one accident in which he or she was at
1496 fault within the current 3-year period. However, an insurer may
1497 nonrenew a policy for reasons other than accidents in accordance
1498 with s. 627.728. This subparagraph does not prohibit nonrenewal
1499 of a policy under which the insured has had three or more
1500 accidents, regardless of fault, during the most recent 3-year
1501 period.
1502 4. Imposing or requesting an additional premium for, or
1503 refusing to renew, a policy for motor vehicle insurance solely
1504 because the insured committed a noncriminal traffic infraction
1505 as described in s. 318.14 unless the infraction is:
1506 a. A second infraction committed within an 18-month period,
1507 or a third or subsequent infraction committed within a 36-month
1508 period.
1509 b. A violation of s. 316.183, when such violation is a
1510 result of exceeding the lawful speed limit by more than 15 miles
1511 per hour.
1512 5. Upon the request of the insured, the insurer and
1513 licensed agent shall supply to the insured the complete proof of
1514 fault or other criteria which justifies the additional charge or
1515 cancellation.
1516 6. No insurer shall impose or request an additional premium
1517 for motor vehicle insurance, cancel or refuse to issue a policy,
1518 or refuse to renew a policy because the insured or the applicant
1519 is a handicapped or physically disabled person, so long as such
1520 handicap or physical disability does not substantially impair
1521 such person’s mechanically assisted driving ability.
1522 7. No insurer may cancel or otherwise terminate any
1523 insurance contract or coverage, or require execution of a
1524 consent to rate endorsement, during the stated policy term for
1525 the purpose of offering to issue, or issuing, a similar or
1526 identical contract or coverage to the same insured with the same
1527 exposure at a higher premium rate or continuing an existing
1528 contract or coverage with the same exposure at an increased
1529 premium.
1530 8. No insurer may issue a nonrenewal notice on any
1531 insurance contract or coverage, or require execution of a
1532 consent to rate endorsement, for the purpose of offering to
1533 issue, or issuing, a similar or identical contract or coverage
1534 to the same insured at a higher premium rate or continuing an
1535 existing contract or coverage at an increased premium without
1536 meeting any applicable notice requirements.
1537 9. No insurer shall, with respect to premiums charged for
1538 motor vehicle insurance, unfairly discriminate solely on the
1539 basis of age, sex, marital status, or scholastic achievement.
1540 10. Imposing or requesting an additional premium for motor
1541 vehicle comprehensive or uninsured motorist coverage solely
1542 because the insured was involved in a motor vehicle accident or
1543 was convicted of a moving traffic violation.
1544 11. No insurer shall cancel or issue a nonrenewal notice on
1545 any insurance policy or contract without complying with any
1546 applicable cancellation or nonrenewal provision required under
1547 the Florida Insurance Code.
1548 12. No insurer shall impose or request an additional
1549 premium, cancel a policy, or issue a nonrenewal notice on any
1550 insurance policy or contract because of any traffic infraction
1551 when adjudication has been withheld and no points have been
1552 assessed pursuant to s. 318.14(9) and (10). However, this
1553 subparagraph does not apply to traffic infractions involving
1554 accidents in which the insurer has incurred a loss due to the
1555 fault of the insured.
1556 Section 22. Paragraph (d) of subsection (1) of section
1557 626.935, Florida Statutes, is amended to read:
1558 626.935 Suspension, revocation, or refusal of surplus lines
1559 agent’s license.—
1560 (1) The department shall deny an application for, suspend,
1561 revoke, or refuse to renew the appointment of a surplus lines
1562 agent and all other licenses and appointments held by the
1563 licensee under this code, on any of the following grounds:
1564 (d) Failure to make and file his or her affidavit or
1565 reports when due as required by s. 626.931.
1566 Section 23. Subsection (4) of section 627.715, Florida
1567 Statutes, is amended to read:
1568 627.715 Flood insurance.—An authorized insurer may issue an
1569 insurance policy, contract, or endorsement providing personal
1570 lines residential coverage for the peril of flood or excess
1571 coverage for the peril of flood on any structure or the contents
1572 of personal property contained therein, subject to this section.
1573 This section does not apply to commercial lines residential or
1574 commercial lines nonresidential coverage for the peril of flood.
1575 An insurer may issue flood insurance policies, contracts,
1576 endorsements, or excess coverage on a standard, preferred,
1577 customized, flexible, or supplemental basis.
1578 (4) An agent may export a contract or an endorsement
1579 providing flood coverage to an eligible surplus lines insurer
1580 without making a diligent effort to seek such coverage from
1581 three or more authorized insurers under s. 626.916 s.
1582 626.916(1)(a).
1583 Section 24. This act shall take effect July 1, 2025.