Florida Senate - 2012                                    SB 1248
       By Senator Hays
       20-00804-12                                           20121248__
    1                        A bill to be entitled                      
    2         An act relating to the nonrenewal of insurance;
    3         amending s. 626.9201, F.S.; providing specified
    4         exemptions from the requirement that an insurer
    5         provide notification of nonrenewal to an insured;
    6         providing an effective date.
    8  Be It Enacted by the Legislature of the State of Florida:
   10         Section 1. Section 626.9201, Florida Statutes, is amended
   11  to read:
   12         626.9201 Notice of cancellation or nonrenewal.—
   13         (1) An insurer issuing a policy providing coverage for
   14  property, casualty, surety, or marine insurance must shall give
   15  the named insured at least 45 days’ advance written notice of
   16  nonrenewal. If the policy is not to be renewed, the written
   17  notice shall state the reason or reasons as to why the policy is
   18  not to be renewed. This subsection does not apply:
   19         (a) If the insurer, through notification to the insured or
   20  the insured’s insurance agent, has manifested its willingness to
   21  renew; or
   22         (b) If a notice of cancellation for nonpayment of premium
   23  is provided under subsection (2).
   24         (2) An insurer issuing a policy providing coverage for
   25  property, casualty, surety, or marine insurance must shall give
   26  the named insured written notice of cancellation or termination
   27  other than nonrenewal at least 45 days before prior to the
   28  effective date of the cancellation or termination, including in
   29  the written notice the reason or reasons for the cancellation or
   30  termination, except that:
   31         (a) If When cancellation is for nonpayment of premium, at
   32  least 10 days’ written notice of cancellation accompanied by the
   33  reason for cancellation must therefor shall be given. As used in
   34  this paragraph, the term “nonpayment of premium” means the
   35  failure of the named insured to discharge when due any of his or
   36  her obligations in connection with the payment of premiums on a
   37  policy or an installment of such a premium, whether the premium
   38  or installment is payable directly to the insurer or its agent
   39  or indirectly under any plan for financing premiums or extension
   40  of credit or the failure of the named insured to maintain
   41  membership in an organization if such membership is a condition
   42  precedent to insurance coverage. The term also includes the
   43  failure of a financial institution to honor the check of an
   44  applicant for insurance which was delivered to a licensed agent
   45  for payment of a premium, even if the agent previously delivered
   46  or transferred the premium to the insurer. If a correctly
   47  dishonored check represents payment of the initial premium, the
   48  contract and all contractual obligations are void ab initio
   49  unless the nonpayment is cured within the earlier of 5 days
   50  after actual notice by certified mail is received by the
   51  applicant or 15 days after notice is sent to the applicant by
   52  certified mail or registered mail, and, if the contract is void,
   53  any premium received by the insurer from a third party shall be
   54  refunded to that party in full; and
   55         (b) If When such cancellation or termination occurs during
   56  the first 90 days during which the insurance is in force and if
   57  the insurance is canceled or terminated for reasons other than
   58  nonpayment, at least 20 days’ written notice of cancellation or
   59  termination accompanied by the reason for cancellation or
   60  termination must therefor shall be given, except if where there
   61  has been a material misstatement or misrepresentation or failure
   62  to comply with the underwriting requirements established by the
   63  insurer.
   64         (3) If an insurer fails to provide the 45-day or 20-day
   65  written notice as required under this section, the coverage
   66  provided to the named insured remains shall remain in effect
   67  until 45 days after the notice is given or until the effective
   68  date of replacement coverage obtained by the named insured,
   69  whichever occurs first. The premium for the coverage remains
   70  shall remain the same during any such extension period.
   71         Section 2. This act shall take effect July 1, 2012.