Florida Senate - 2015                              CS for SB 202
       By the Committee on Banking and Insurance; and Senator Bradley
       597-01468-15                                           2015202c1
    1                        A bill to be entitled                      
    2         An act relating to insurer notifications; amending s.
    3         627.421, F.S.; authorizing a policyholder of personal
    4         lines insurance to elect delivery of policy documents
    5         by electronic means; amending s. 627.43141, F.S.;
    6         defining the term “optional coverage”; revising the
    7         requirements applicable to insurers when providing a
    8         notice of change in policy terms for a renewal policy
    9         to include the requirement that the notice be an
   10         advance notice and to allow such notice to be sent
   11         separately from the notice of renewal premium within a
   12         specified timeframe; requiring the insurer to provide
   13         a sample copy of the notice of change in policy terms
   14         to the insurance agent at a specified time;
   15         prohibiting the use of such notice to add optional
   16         coverage that increases the policy’s premium unless
   17         the policyholder approves the optional coverage;
   18         reenacting ss. 624.488(4) and 628.6016(4), F.S., to
   19         incorporate the amendments made to s. 627.421, F.S.,
   20         in references thereto; reenacting s. 627.4102(3),
   21         F.S., to incorporate the amendments made to s.
   22         627.43141, F.S., in a reference thereto; providing an
   23         effective date.
   25  Be It Enacted by the Legislature of the State of Florida:
   27         Section 1. Subsection (1) of section 627.421, Florida
   28  Statutes, is amended to read:
   29         627.421 Delivery of policy.—
   30         (1) Subject to the insurer’s requirement as to payment of
   31  premium, every policy shall be mailed, delivered, or
   32  electronically transmitted to the insured or to the person
   33  entitled thereto within not later than 60 days after the
   34  effectuation of coverage. Notwithstanding any other provision of
   35  law, an insurer may allow a policyholder of personal lines
   36  insurance to affirmatively elect delivery of the policy
   37  documents, including, but not limited to, policies,
   38  endorsements, notices, or documents, by electronic means in lieu
   39  of delivery by mail. Electronic transmission of a policy for
   40  commercial risks, including, but not limited to, workers’
   41  compensation and employers’ liability, commercial automobile
   42  liability, commercial automobile physical damage, commercial
   43  lines residential property, commercial nonresidential property,
   44  farmowners insurance, and the types of commercial lines risks
   45  specified set forth in s. 627.062(3)(d), constitutes shall
   46  constitute delivery to the insured or to the person entitled to
   47  delivery, unless the insured or the person entitled to delivery
   48  communicates to the insurer in writing or electronically that he
   49  or she does not agree to delivery by electronic means.
   50  Electronic transmission must shall include a notice to the
   51  insured or to the person entitled to delivery of a policy of his
   52  or her right to receive the policy via United States mail rather
   53  than via electronic transmission. A paper copy of the policy
   54  shall be provided to the insured or to the person entitled to
   55  delivery at his or her request.
   56         Section 2. Present paragraphs (b) and (c) of subsection (1)
   57  of section 627.43141, Florida Statutes, are redesignated as
   58  paragraphs (c) and (d), respectively, a new paragraph (b) is
   59  added to that subsection, subsection (2) of that section is
   60  amended, present subsections (3) through (6) of that section are
   61  redesignated as subsections (4) through (7), respectively, and a
   62  new subsection (3) is added to that section, to read:
   63         627.43141 Notice of change in policy terms.—
   64         (1) As used in this section, the term:
   65         (b) “Optional coverage” means the addition of new insurance
   66  coverage that has not previously been requested or approved by
   67  the policyholder but that does not include any change to the
   68  base policy or a deductible or an insurance limit.
   69         (2) A renewal policy may contain a change in policy terms.
   70  If a renewal policy does contain such change occurs, the insurer
   71  shall must give the named insured advance written notice of the
   72  change, which may must be enclosed along with the written notice
   73  of renewal premium required under by ss. 627.4133 and 627.728 or
   74  sent separately within the timeframe required under the Florida
   75  Insurance Code for the provision of a notice of nonrenewal to
   76  the named insured for that line of insurance. The insurer must
   77  also provide a sample copy of the notice to the named insured’s
   78  insurance agent before or at the same time that notice is
   79  provided to the named insured. Such notice shall be entitled
   80  “Notice of Change in Policy Terms.”
   81         (3) A renewal policy that includes the addition of optional
   82  coverage that increases the premium to a policyholder may not
   83  use the “Notice of Change in Policy Terms” under this section to
   84  add the optional coverage to the policy unless the policyholder
   85  affirmatively indicates to the insurer or agent that the
   86  policyholder approves the addition of the optional coverage.
   87         Section 3. Subsection (4) of s. 624.488 and subsection (4)
   88  of s. 628.6016, Florida Statutes, are reenacted for the purpose
   89  of incorporating the amendments made by this act to s. 627.421,
   90  Florida Statutes, in references thereto.
   91         Section 4. Subsection (3) of s. 627.4102, Florida Statutes,
   92  is reenacted for the purpose of incorporating the amendments
   93  made by this act to s. 627.43141, Florida Statutes, in a
   94  reference thereto.
   95         Section 5. This act shall take effect July 1, 2015.