HB 173

1	A bill to be entitled
2	An act relating to construction contracts; creating s.
3	627.442, F.S.; authorizing certain parties to a
4	construction contract to accept or reject certain
5	insurance policies or certificates under certain
6	circumstances; providing construction for acceptance of
7	such insurance policies or certificates under certain
8	circumstances; providing for unenforceability of certain
9	contract provisions under certain circumstances;
10	prohibiting certain parties to a construction contract
11	from rejecting or withholding payment for certain work
12	performed or materials provided under a construction
13	contract under certain circumstances; providing an
14	effective date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  Section 627.442, Florida Statutes, is created
19	to read:
20	627.442  Construction contract insurance provisions;
21	acceptance, rejection, application.--
22	(1)  If a written construction contract requires a
23	subcontractor, sub-subcontractor, or materialman to provide a
24	policy or certificate of insurance to the general contractor or
25	the subcontractor for work performed or material provided,
26	extending specific coverage rights to an additional insured, the
27	general contractor or subcontractor may accept or reject the
28	policy or certificate as being nonconforming at any time prior
29	to the date the subcontractor or sub-subcontractor commences
30	work or the materialman delivers material.
31	(2)  If, within 3 days after receiving the policy or
32	certificate, the general contractor or subcontractor does not
33	reject the policy or certificate in writing, stating the
34	specific reasons for rejection, the general contractor or
35	subcontractor shall be deemed to have accepted the policy or
36	certificate for work performed or materials supplied until such
37	time as the policy or certificate is specifically rejected in
38	writing.
39	(3)(a)  If the general contractor or subcontractor rejects
40	the policy or certificate as nonconforming, the provision of the
41	contract requiring such insurance is unenforceable.
42	(b)  The general contractor or subcontractor may not use
43	the lack of conforming insurance as a reason to reject work
44	already completed by a subcontractor or sub-subcontractor or
45	material already supplied by the materialman or to withhold
46	payment to the subcontractor or sub-subcontractor for work
47	already completed or to the materialman for material already
48	supplied.
49	Section 2.  This act shall take effect July 1, 2006.

CODING: Words stricken are deletions; words underlined are additions.