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. 7 8 Be It Enacted by the Legislature of the State of Florida: 9 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
shallgive 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 orreasons 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 shallgive 26 the named insured written notice of cancellation or termination 27 other than nonrenewal at least 45 days before prior tothe 28 effective date of the cancellation or termination, including in 29 the written notice the reason orreasons for the cancellation or 30 termination, except that: 31 (a) If Whencancellation is for nonpayment of premium, at 32 least 10 days’ written notice of cancellation accompanied by the 33 reason for cancellation must therefor shallbe 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 suchcancellation 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 shallbe given, except if wherethere 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-day65 written notice as required under this section, the coverage 66 provided to the named insured remains shall remainin 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 remainthe same during anysuch extension period. 71 Section 2. This act shall take effect July 1, 2012.