Florida Senate - 2016                                     SB 596
       
       
        
       By Senator Hukill
       
       
       
       
       
       8-00473C-16                                            2016596__
    1                        A bill to be entitled                      
    2         An act relating to assignment or transfer of property
    3         insurance rights; creating s. 627.70133, F.S.;
    4         providing requirements under a property insurance
    5         policy for the post-loss assignment or transfer of
    6         rights, benefits, or policy provisions not related to
    7         liability coverage; providing requirements for an
    8         agreement to assign or transfer such rights, benefits,
    9         or policy provisions; providing prohibitions and
   10         conditions that void such an agreement; providing
   11         applicability; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Section 627.70133, Florida Statutes, is created
   16  to read:
   17         627.70133Assignment of benefits or transfer of rights.—As
   18  to property insurance policies, this section governs the post
   19  loss assignment or transfer of rights, benefits, or policy
   20  provisions unrelated to liability coverage to a person or entity
   21  other than the named insured. This section does not affect the
   22  post-loss assignment or transfer of rights, benefits, or other
   23  policy provisions related to liability coverage in the property
   24  insurance policy.
   25         (1) An agreement entered into under this section to assign
   26  or transfer rights, benefits, or policy provisions is not valid
   27  unless:
   28         (a)It authorizes a person or entity to be named as a payee
   29  or copayee for the benefit of payment as provided in the policy
   30  for services rendered and materials provided to mitigate or
   31  repair covered damage only;
   32         (b)It is limited to $2,500 per occurrence for work
   33  performed to mitigate or repair covered damage;
   34         (c)It is provided to the insured’s property insurer within
   35  3 business days after execution;
   36         (d)It contains an estimate for proposed services and
   37  materials to be provided;
   38         (e) With the exception of reimbursement for work already
   39  performed to mitigate or repair covered damage, it allows the
   40  insured to cancel the agreement, in writing, without penalty or
   41  obligation within 3 business days after the date the agreement
   42  is executed or within 3 business days after the insurer has been
   43  provided with the agreement, whichever is later. However, if the
   44  agreement is executed to perform work resulting from an event
   45  for which the Governor has declared a state of emergency and is
   46  within 1 year after such declaration, the insured has 5 business
   47  days after the date the agreement is executed to cancel the
   48  agreement without penalty; and
   49         (f)It contains the following notice in 14-point type:
   50  WARNING: YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE
   51  UNDER YOUR INSURANCE POLICY TO A THIRD PARTY. PLEASE READ AND
   52  UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT
   53  TO CANCEL THIS AGREEMENT WITHOUT PENALTY WITHIN 3 BUSINESS DAYS
   54  AFTER THE DATE THIS AGREEMENT IS EXECUTED OR WITHIN 3 BUSINESS
   55  DAYS AFTER YOUR PROPERTY INSURANCE COMPANY HAS RECEIVED A COPY
   56  OF THIS AGREEMENT, WHICHEVER IS LATER. IF WORK IS BEING
   57  PERFORMED AS A RESULT OF DAMAGES CAUSED BY AN EVENT FOR WHICH
   58  THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY AND IS WITHIN 1
   59  YEAR AFTER SUCH DECLARATION, YOU HAVE 5 DAYS AFTER THE DATE OF
   60  EXECUTION TO CANCEL. THIS AGREEMENT DOES NOT CHANGE YOUR DUTIES
   61  UNDER YOUR PROPERTY INSURANCE POLICY, SUCH AS PROMPTLY NOTIFYING
   62  YOUR INSURANCE COMPANY OF A LOSS AND MITIGATING YOUR PROPERTY
   63  FROM FURTHER DAMAGE.
   64         (2) An agreement is void if:
   65         (a) It imposes an agreement cancellation fee, a check
   66  processing fee, or a mortgage processing fee or adds an amount
   67  for overhead and profit to the amount for mitigation and repair
   68  of covered property;
   69         (b) A final invoice issued under the agreement exceeds the
   70  estimated cost for work performed and the increase in cost was
   71  not authorized by the insurer;
   72         (c) It purports to assign or transfer the right to enforce
   73  payment for post-loss benefits in the policy;
   74         (d) It prevents or inhibits an insurer from communicating
   75  with the insured at any time; or
   76         (e) It purports to transfer or create any authority to
   77  adjust, negotiate, or settle any portion of a claim to a person
   78  or entity who is not authorized to adjust, negotiate, or settle
   79  a claim on behalf of the insured or claimant under part VI of
   80  chapter 626.
   81         (3) This section does not apply to a power of attorney
   82  granted to a management company, family member, guardian, or
   83  similarly situated person which complies with chapter 709 and
   84  which may include, as part of the authority granted, the
   85  authority to act in place of a principal as it relates to a
   86  property insurance claim.
   87         Section 2. This act applies to post-loss assignments or
   88  transfers of rights, benefits, or policy provisions not related
   89  to liability coverage which are executed after the effective
   90  date of this act.
   91         Section 3. This act shall take effect upon becoming a law.