| 1 | Representative Legg offered the following: |
| 2 |
|
| 3 | Amendment (with title amendment) |
| 4 | Remove lines 184 through 334 and insert: |
| 5 | (2) Any insurer that has paid a claim for a sinkhole loss |
| 6 | shall file a copy of the report and certification, prepared |
| 7 | pursuant to subsection (1) and including the legal description |
| 8 | of the real property and the name of the property owner, with |
| 9 | the county clerk of court property appraiser, who shall record |
| 10 | the report and certification with the parcel number. The insurer |
| 11 | shall bear the cost of filing and recording the report and |
| 12 | certification. There shall be no cause of action or liability |
| 13 | against an insurer for compliance with this section. The |
| 14 | recording of the report and certification shall not constitute a |
| 15 | lien, encumbrance, or restriction on the title to the real |
| 16 | property nor constitute a defect in the title to the real |
| 17 | property, create any cause of action or liability against any |
| 18 | grantor of the real property for breach of any warranty of good |
| 19 | title or warranty against encumbrances, or create any cause of |
| 20 | action or liability against any title insurer that insures the |
| 21 | title to the real property. The seller of real property upon |
| 22 | which a sinkhole claim has been made by the seller and paid by |
| 23 | the insurer shall disclose to the buyer of such property that a |
| 24 | claim has been paid and whether or not the full amount of the |
| 25 | proceeds were used to repair the sinkhole damage. |
| 26 | Section 5. Effective October 1, 2006, section 627.7074, |
| 27 | Florida Statutes, is created to read: |
| 28 | 627.7074 Alternative procedure for resolution of disputed |
| 29 | sinkhole insurance claims.-- |
| 30 | (1) As used in this section, the term: |
| 31 | (a) "Neutral evaluation" means the alternative dispute |
| 32 | resolution provided for in this section. |
| 33 | (b) "Neutral evaluator" means a professional engineer or a |
| 34 | professional geologist who has completed a course of study in |
| 35 | alternative dispute resolution designed or approved by the |
| 36 | department for use in the neutral evaluation process, who is |
| 37 | determined to be fair and impartial. |
| 38 | (2)(a) The department shall certify and maintain a list of |
| 39 | persons who are neutral evaluators. |
| 40 | (b) The department shall prepare a consumer information |
| 41 | pamphlet for distribution by insurers to policyholders which |
| 42 | clearly describes the neutral evaluation process and includes |
| 43 | information and forms necessary for the policyholder to request |
| 44 | a neutral evaluation. |
| 45 | (3) Following the receipt of the report provided under s. |
| 46 | 627.7073 or the denial of a claim for a sinkhole loss, the |
| 47 | insurer shall notify the policyholder of his or her right to |
| 48 | participate in the neutral evaluation program under this |
| 49 | section. Neutral evaluation supersedes the alternative dispute |
| 50 | resolution process under s. 627.7015. The insurer shall provide |
| 51 | to the policyholder the consumer information pamphlet prepared |
| 52 | by the department pursuant to paragraph (2)(b). |
| 53 | (4) Neutral evaluation is optional and nonbinding. Either |
| 54 | the policyholder or the insurer may decline to participate. A |
| 55 | request for neutral evaluation may be filed with the department |
| 56 | by the policyholder or the insurer on a form approved by the |
| 57 | department. The request for neutral evaluation must state the |
| 58 | reason for the request and must include an explanation of all |
| 59 | the issues in dispute at the time of the request. Filing a |
| 60 | request for neutral evaluation tolls the applicable time |
| 61 | requirements for filing suit for a period of 60 days following |
| 62 | the conclusion of the neutral evaluation process or the time |
| 63 | prescribed in s. 95.11, whichever is later. |
| 64 | (5) Neutral evaluation shall be conducted as an informal |
| 65 | process in which formal rules of evidence and procedure need not |
| 66 | be observed. A party to neutral evaluation is not required to |
| 67 | attend neutral evaluation if a representative of the party |
| 68 | attends and has the authority to make a binding decision on |
| 69 | behalf of the party. All parties shall participate in the |
| 70 | evaluation in good faith. |
| 71 | (6) The insurer shall pay the costs associated with the |
| 72 | neutral evaluation. |
| 73 | (7) Upon receipt of a request for neutral evaluation, the |
| 74 | department shall refer the request to a neutral evaluator. The |
| 75 | neutral evaluator shall notify the policyholder and the insurer |
| 76 | of the date, time, and place of the neutral evaluation |
| 77 | conference. The conference may be held by telephone, if feasible |
| 78 | and desirable. The neutral evaluation conference shall be held |
| 79 | within 45 days after receipt of the request by the department. |
| 80 | (8) The department shall adopt rules of procedure for the |
| 81 | neutral evaluation process. |
| 82 | (9) For policyholders not represented by an attorney, a |
| 83 | consumer affairs specialist of the department or an employee |
| 84 | designated as the primary contact for consumers on issues |
| 85 | relating to sinkholes under s. 20.121 shall be available for |
| 86 | consultation to the extent that he or she may lawfully do so. |
| 87 | (10) Evidence of an offer to settle a claim during the |
| 88 | neutral evaluation process, as well as any relevant conduct or |
| 89 | statements made in negotiations concerning the offer to settle a |
| 90 | claim, is inadmissible to prove liability or absence of |
| 91 | liability for the claim or its value, except as provided in |
| 92 | subsection (13). |
| 93 | (11) Any court proceeding related to the subject matter of |
| 94 | the neutral evaluation shall be stayed pending completion of the |
| 95 | neutral evaluation. |
| 96 | (12) For matters that are not resolved by the parties at |
| 97 | the conclusion of the neutral evaluation, the neutral evaluator |
| 98 | shall prepare a report stating that in his or her opinion the |
| 99 | sinkhole loss has been verified or eliminated and, if verified, |
| 100 | the need for and estimated costs of stabilizing the land and any |
| 101 | covered structures or buildings and other appropriate |
| 102 | remediation or structural repairs. The evaluator's report shall |
| 103 | be sent to all parties in attendance at the neutral evaluation |
| 104 | and to the department. |
| 105 | (13) The recommendation of the neutral evaluator is not |
| 106 | binding on any party, and the parties retain access to courts. |
| 107 | The neutral evaluator's written recommendation is admissible in |
| 108 | any subsequent action or proceeding relating to the claim or to |
| 109 | the cause of action giving rise to the claim only for purposes |
| 110 | of determining the award of attorney's fees. |
| 111 | (14) If the neutral evaluator first verifies the existence |
| 112 | of a sinkhole and, second, recommends the need for and estimates |
| 113 | costs of stabilizing the land and any covered structures or |
| 114 | buildings and other appropriate remediation or structural |
| 115 | repairs, which costs exceed the amount that the insurer has |
| 116 | offered to pay the policyholder, the insurer is liable to the |
| 117 | policyholder for up to $2,500 in attorney's fees for the |
| 118 | attorney's participation in the neutral evaluation process. For |
| 119 | purposes of this subsection, the term "offer to pay" means a |
| 120 | written offer signed by the insurer or its legal representative |
| 121 | and delivered to the policyholder within 10 days after the |
| 122 | insurer receives notice that a request for neutral evaluation |
| 123 | has been made under this section. |
| 124 | (15) If the policyholder declines to participate in |
| 125 | neutral evaluation requested by the insurer or declines to |
| 126 | resolve the matter in accordance with the recommendation of the |
| 127 | neutral evaluator pursuant to this section, the insurer is not |
| 128 | liable for attorney's fees under s. 627.428 or other provisions |
| 129 | of the insurance code or for extra-contractual damages related |
| 130 | to a claim for a sinkhole loss. |
| 131 | Section 6. Subsection (2) of section 877.02, Florida |
| 132 | Statutes, is amended to read: |
| 133 | 877.02 Solicitation of legal services or retainers |
| 134 | therefor; penalty.-- |
| 135 | (2) It shall be unlawful for any person in the employ of |
| 136 | or in any capacity attached to any hospital, sanitarium, police |
| 137 | department, wrecker service or garage, prison or court, or for a |
| 138 | person authorized to furnish bail bonds, investigators, |
| 139 | photographers, insurance or public adjusters, or for a general |
| 140 | or other contractor as defined in s. 489.105 or other business |
| 141 | providing sinkhole remediation services, to communicate directly |
| 142 | or indirectly with any attorney or person acting on said |
| 143 | attorney's behalf for the purpose of aiding, assisting or |
| 144 | abetting such attorney in the solicitation of legal business or |
| 145 | the procurement through solicitation of a retainer, written or |
| 146 | oral, or any agreement authorizing the attorney to perform or |
| 147 | render legal services. |
| 148 | Section 7. (1) By February 1, 2007, the Office of |
| 149 | Insurance Regulation shall calculate a presumed factor to |
| 150 | reflect the impact of the changes made in this act to rates |
| 151 | filed by residential property insurers providing sinkhole loss |
| 152 | coverage. The office shall issue a notice informing all insurers |
| 153 | writing residential property insurance coverage of the presumed |
| 154 | factor. |
| 155 | (2) In determining the presumed factor, the office shall |
| 156 | use generally accepted actuarial techniques and standards in |
| 157 | determining the expected impact on losses, expenses, and |
| 158 | investment income of the insurer. |
| 159 | (3) The office may contract with an appropriate vendor to |
| 160 | determine the presumed factor. |
| 161 | (4) Each residential property insurer shall, at its next |
| 162 | rate filing after May 1, 2007, reflect a rate change that takes |
| 163 | into account the presumed factor determined under subsection |
| 164 | (1). |
| 165 |
|
| 166 | ======= T I T L E A M E N D M E N T ======= |
| 167 | Remove line 16 and insert: |
| 168 | than the property appraiser; specifying prohibitions |
| 169 | relating to the recording of certain reports and |
| 170 | certifications for sinkhole loss claims; creating s. |
| 171 | 627.7074, F.S.; |