Florida Senate - 2015                        COMMITTEE AMENDMENT
       Bill No. SB 202
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/03/2015           .                                

       The Committee on Banking and Insurance (Smith) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete lines 46 - 60
    4  and insert:
    5         Section 2. Present paragraphs (b) and (c) of subsection (1)
    6  of section 627.43141, Florida Statutes, are redesignated as
    7  paragraphs (c) and (d), respectively, a new paragraph (b) is
    8  added to that subsection, subsection (2) of that section is
    9  amended, present subsections (3) through (6) of that section are
   10  redesignated as subsections (4) through (7), respectively, and a
   11  new subsection (3) is added to that section, to read:
   12         627.43141 Notice of change in policy terms.—
   13         (1) As used in this section, the term:
   14         (b) “Optional coverage” means the addition of new insurance
   15  coverage that has not previously been requested or approved by
   16  the policyholder but that does not include any change to the
   17  base policy or a deductible or an insurance limit.
   18         (2) A renewal policy may contain a change in policy terms.
   19  If a renewal policy does contain such change occurs, the insurer
   20  shall must give the named insured advance written notice of the
   21  change, which may must be enclosed along with the written notice
   22  of renewal premium required under by ss. 627.4133 and 627.728 or
   23  sent separately within the timeframe required under the Florida
   24  Insurance Code for the provision of a notice of nonrenewal to
   25  the named insured for that line of insurance. The insurer must
   26  also provide a sample copy of the notice to the named insured’s
   27  insurance agent before or at the same time that notice is
   28  provided to the named insured. Such notice shall be entitled
   29  “Notice of Change in Policy Terms.”
   30         (3) A renewal policy that includes the addition of optional
   31  coverage that increases the premium to a policyholder may not
   32  use the “Notice of Change in Policy Terms” under this section to
   33  add the optional coverage to the policy unless the policyholder
   34  affirmatively indicates to the insurer or agent that the
   35  policyholder approves the addition of the optional coverage.
   36         Section 3. Subsection (4) of s. 624.488 and subsection (4)
   37  of s. 628.6016, Florida Statutes, are reenacted for the purpose
   38  of incorporating the amendments made by this act to s. 627.421,
   39  Florida Statutes, in references thereto.
   40         Section 4. Subsection (3) of s. 627.4102, Florida Statutes,
   41  is reenacted for the purpose of incorporating the amendments
   42  made by this act to s. 627.43141, Florida Statutes, in a
   43  reference thereto.
   45  ================= T I T L E  A M E N D M E N T ================
   46  And the title is amended as follows:
   47         Delete lines 2 - 13
   48  and insert:
   49         An act relating to insurer notifications; amending s.
   50         627.421, F.S.; authorizing a policyholder of personal
   51         lines insurance to elect delivery of policy documents
   52         by electronic means; amending s. 627.43141, F.S.;
   53         defining the term “optional coverage”; revising the
   54         requirements applicable to insurers when providing a
   55         notice of change in policy terms for a renewal policy
   56         to include the requirement that the notice be an
   57         advance notice and to allow such notice to be sent
   58         separately from the notice of renewal premium within a
   59         specified timeframe; requiring the insurer to provide
   60         a sample copy of the notice of change in policy terms
   61         to the insurance agent at a specified time;
   62         prohibiting the use of such notice to add optional
   63         coverage that increases the policy’s premium unless
   64         the policyholder approves the optional coverage;
   65         reenacting ss. 624.488(4) and 628.6016(4), F.S., to
   66         incorporate the amendments made to s. 627.421, F.S.,
   67         in references thereto; reenacting s. 627.4102(3),
   68         F.S., to incorporate the amendments made to s.
   69         627.43141, F.S., in a reference thereto; providing an
   70         effective date.