Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 408
                                Barcode 912394                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/22/2011           .                                

       The Committee on Banking and Insurance (Richter) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete lines 2312 - 2389
    4  and insert:
    5         (b) The insurer shall give the named insured written notice
    6  of nonrenewal, cancellation, or termination at least 90 100 days
    7  before prior to the effective date of the nonrenewal,
    8  cancellation, or termination. However, the insurer shall give at
    9  least 100 days’ written notice, or written notice by June 1,
   10  whichever is earlier, for any nonrenewal, cancellation, or
   11  termination that would be effective between June 1 and November
   12  30. The notice must include the reason or reasons for the
   13  nonrenewal, cancellation, or termination, except that:
   14         1. The insurer shall give the named insured written notice
   15  of nonrenewal, cancellation, or termination at least 180 days
   16  prior to the effective date of the nonrenewal, cancellation, or
   17  termination for a named insured whose residential structure has
   18  been insured by that insurer or an affiliated insurer for at
   19  least a 5-year period immediately prior to the date of the
   20  written notice.
   21         1.2.If When cancellation is for nonpayment of premium, at
   22  least 10 days’ written notice of cancellation accompanied by the
   23  reason therefor must shall be given. As used in this
   24  subparagraph, the term “nonpayment of premium” means failure of
   25  the named insured to discharge when due any of her or his
   26  obligations in connection with the payment of premiums on a
   27  policy or any installment of such premium, whether the premium
   28  is payable directly to the insurer or its agent or indirectly
   29  under any premium finance plan or extension of credit, or
   30  failure to maintain membership in an organization if such
   31  membership is a condition precedent to insurance coverage. The
   32  term “Nonpayment of premium” also means the failure of a
   33  financial institution to honor an insurance applicant’s check
   34  after delivery to a licensed agent for payment of a premium,
   35  even if the agent has previously delivered or transferred the
   36  premium to the insurer. If a dishonored check represents the
   37  initial premium payment, the contract and all contractual
   38  obligations are shall be void ab initio unless the nonpayment is
   39  cured within the earlier of 5 days after actual notice by
   40  certified mail is received by the applicant or 15 days after
   41  notice is sent to the applicant by certified mail or registered
   42  mail, and if the contract is void, any premium received by the
   43  insurer from a third party must shall be refunded to that party
   44  in full.
   45         2.3.If When such cancellation or termination occurs during
   46  the first 90 days during which the insurance is in force and the
   47  insurance is canceled or terminated for reasons other than
   48  nonpayment of premium, at least 20 days’ written notice of
   49  cancellation or termination accompanied by the reason therefor
   50  must shall be given unless except where there has been a
   51  material misstatement or misrepresentation or failure to comply
   52  with the underwriting requirements established by the insurer.
   53         3.4. The requirement for providing written notice of
   54  nonrenewal by June 1 of any nonrenewal that would be effective
   55  between June 1 and November 30 does not apply to the following
   56  situations, but the insurer remains subject to the requirement
   57  to provide such notice at least 100 days before prior to the
   58  effective date of nonrenewal:
   59         a. A policy that is nonrenewed due to a revision in the
   60  coverage for sinkhole losses and catastrophic ground cover
   61  collapse pursuant to s. 627.706, as amended by s. 30, chapter
   62  2007-1, Laws of Florida.
   63         b. A policy that is nonrenewed by Citizens Property
   64  Insurance Corporation, pursuant to s. 627.351(6), for a policy
   65  that has been assumed by an authorized insurer offering
   66  replacement or renewal coverage to the policyholder is exempt
   67  from the notice requirements of paragraph (a) and this
   68  paragraph. In such cases, the corporation must give the named
   69  insured written notice of nonrenewal at least 45 days before the
   70  effective date of the nonrenewal.
   72  After the policy has been in effect for 90 days, the policy may
   73  shall not be canceled by the insurer unless except when there
   74  has been a material misstatement, a nonpayment of premium, a
   75  failure to comply with underwriting requirements established by
   76  the insurer within 90 days after of the date of effectuation of
   77  coverage, or a substantial change in the risk covered by the
   78  policy or if when the cancellation is for all insureds under
   79  such policies for a given class of insureds. This paragraph does
   80  not apply to individually rated risks having a policy term of
   81  less than 90 days.
   82         4.Notwithstanding any other provision of law, an insurer
   84  ================= T I T L E  A M E N D M E N T ================
   85         And the title is amended as follows:
   86         Delete line 114
   87  and insert:
   88         amending s. 627.4133, F.S.; revising the requirements
   89         for providing an insured with notice of nonrenewal,
   90         cancellation, or termination of personal lines or
   91         commercial residential property insurance; authorizing
   92         an insurer to