Florida Senate - 2016 COMMITTEE AMENDMENT Bill No. CS for SB 596 Ì646050uÎ646050 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Judiciary (Simmons) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 501.172, Florida Statutes, is created to 6 read: 7 501.172 Agreements with service providers entered into 8 under urgent or emergency circumstances; assignment of benefits 9 relating to property insurance; limitations.— 10 (1) For purposes of this section, the term: 11 (a) “Consumer” means a person who has an interest in or who 12 has a right to manage real property, including improvements upon 13 such real property, regardless of whether for personal or 14 business purposes, including an owner, a tenant, a licensee, or 15 a property manager. 16 (b) “Service provider” means a person who enters into an 17 agreement with a consumer for the stabilization, repair, 18 improvement, or remediation of real property. 19 (2) If a consumer, including a consumer who is a 20 policyowner of a property insurance policy, acts under urgent or 21 emergency circumstances to protect property from damage and 22 enters into an agreement with a service provider to stabilize, 23 protect, repair, or improve such property, the service provider 24 may only contract for or receive from the consumer at such time 25 the right to payment for the amount of work necessary to 26 stabilize, protect, and prevent additional damage from occurring 27 to the property. Such right to payment may include a post-loss 28 assignment of benefits under a property insurance policy or a 29 grant of a lien upon the property as permitted under chapter 30 713. A consumer’s agreement to provide greater rights to a 31 service provider under such urgent or emergency circumstances, 32 including alleged rights to do further repairs, remediation, or 33 improvements or an assignment of rights, benefits, causes of 34 action, or other contractual rights in violation of this 35 subsection, is void. 36 (3) In all circumstances, an agreement entered into by a 37 consumer and a service provider after a loss or damage has 38 occurred to the consumer’s property which contains a post-loss 39 assignment of benefits to the service provider or some third 40 person is not valid: 41 (a) Unless the consumer or service provider provides a copy 42 of the agreement to the consumer’s property insurer within 3 43 business days after execution by both the service provider and 44 consumer; 45 (b) Unless, with the exception of payment for work already 46 performed by a service provider to prevent additional damage 47 from occurring to the property as provided in subsection (2), 48 the agreement allows the consumer to rescind the agreement in 49 writing and without penalty or obligation within 3 business days 50 after the date the agreement is executed or within 3 business 51 days after the insurer has been provided with the agreement, 52 whichever is later. However, if the agreement is executed to 53 perform work resulting from an event for which the Governor has 54 declared a state of emergency and is within 1 year after such 55 declaration, the consumer has 5 business days after the date the 56 agreement is executed to rescind the agreement; 57 (c) To the extent that the agreement imposes any fee for 58 rescinding the agreement, a check processing fee, or a mortgage 59 processing fee; 60 (d) To the extent that the agreement prevents or inhibits 61 an insurer from communicating with the consumer at any time; 62 (e) To the extent that the agreement purports to transfer 63 or create any authority to adjust, negotiate, or settle any 64 portion of a claim to a person or an entity who is not 65 authorized to adjust, negotiate, or settle a claim on behalf of 66 the insured or claimant under part VI of chapter 626; or 67 (f) Unless the agreement contains the following notice in 68 14-point type to the consumer: 69 70 WARNING: IF YOU HAVE PROPERTY INSURANCE, YOU MAY BE 71 AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR 72 INSURANCE POLICY TO A THIRD PARTY. PLEASE READ AND 73 UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. WITH THE 74 EXCEPTION OF PAYMENT FOR WORK ALREADY PERFORMED BY A 75 SERVICE PROVIDER TO PREVENT ADDITIONAL DAMAGE FROM 76 OCCURRING TO THE PROPERTY RESULTING FROM EMERGENCY OR 77 URGENT CIRCUMSTANCES, YOU HAVE THE RIGHT TO RESCIND 78 THIS AGREEMENT WITHOUT PENALTY WITHIN 3 BUSINESS DAYS 79 AFTER THE DATE THIS AGREEMENT IS EXECUTED OR WITHIN 3 80 BUSINESS DAYS AFTER YOUR PROPERTY INSURANCE COMPANY 81 HAS RECEIVED A COPY OF THIS AGREEMENT, WHICHEVER IS 82 LATER. IF WORK IS BEING PERFORMED AS A RESULT OF 83 DAMAGES CAUSED BY AN EVENT FOR WHICH THE GOVERNOR HAS 84 DECLARED A STATE OF EMERGENCY AND IS WITHIN 1 YEAR 85 AFTER SUCH DECLARATION, THE 3 BUSINESS DAY PERIOD TO 86 RESCIND THIS AGREEMENT IS EXTENDED TO 5 BUSINESS DAYS. 87 THIS AGREEMENT DOES NOT CHANGE YOUR DUTIES UNDER YOUR 88 PROPERTY INSURANCE POLICY, SUCH AS PROMPTLY NOTIFYING 89 YOUR INSURANCE COMPANY OF A LOSS AND MITIGATING YOUR 90 PROPERTY FROM FURTHER DAMAGE. 91 92 (4) This section does not apply to a power of attorney 93 granted to a management company, family member, guardian, or 94 similarly situated person which complies with chapter 709 and 95 which may include, as part of the authority granted, the 96 authority to act in place of a principal as it relates to a 97 property insurance claim. 98 (5) A policyholder who assigns the right to receive the 99 benefit of payment under the policy is not liable to the 100 assignee for services and materials for which the insurer is 101 liable, and the assignee may not collect or attempt to collect 102 money from, maintain any action at law against, or claim a lien 103 on the real property of a policyholder or report a policyholder 104 to a credit agency for payment for which the insurer is liable 105 under the policy. However, this subsection does not prohibit the 106 assignee from collecting or attempting to collect money from, 107 maintaining an action at law against, or claiming a lien on the 108 real property of a policyholder or reporting a policyholder to a 109 credit agency for payment of the amount of the insurance 110 deductible or any amount attributable to services and materials 111 ordered by the policyholder which are not covered under the 112 insurance policy. 113 Section 2. Section 627.422, Florida Statutes, is amended to 114 read: 115 627.422 Assignment of policies; restrictions on post-loss 116 assignments of policy benefits.— 117 (1) A policy may be assignable, or not assignable, as 118 provided by the policy
itsterms. Subject to its terms relating 119 to assignability, any life or health insurance policy under the 120 terms of which the beneficiary may be changed upon the sole 121 request of the policyowner may be assigned either by pledge or 122 transfer of title, by an assignment executed by the policyowner 123 alone and delivered to the insurer, regardless of whether or not124 the pledgee or assignee is the insurer. Any such assignment 125 entitles shall entitlethe insurer to deal with the assignee as 126 the owner or pledgee of the policy in accordance with the terms 127 of the assignment, until the insurer has received at its home 128 office written notice of termination of the assignment or pledge 129 or written notice by or on behalf of some other person claiming 130 some interest in the policy in conflict with the assignment. 131 (2) A property insurer may include policy provisions in 132 property insurance policies which limit the post-loss 133 assignability of its policy rights only in accordance with s. 134 501.172. The commission may adopt rules to administer and 135 enforce this subsection. 136 Section 3. This act shall take effect July 1, 2016. 137 138 ================= T I T L E A M E N D M E N T ================ 139 And the title is amended as follows: 140 Delete everything before the enacting clause 141 and insert: 142 A bill to be entitled 143 An act relating to consumer protection; creating s. 144 501.172, F.S.; defining terms; specifying limitations 145 to the assignment of specified rights by a consumer to 146 a service provider for certain services provided under 147 urgent or emergency circumstances to stabilize, 148 protect, repair, or improve real property; providing 149 that an agreement that provides certain greater rights 150 to a service provider under such circumstances is 151 void; providing that a specified agreement assigning 152 certain rights is not valid unless specified 153 conditions are met; providing applicability; providing 154 that a policyholder who assigns a certain right is not 155 liable to the assignee for specified services and 156 materials; prohibiting an assignee from taking certain 157 actions for payments for which the insurer is liable; 158 providing applicability; amending s. 627.422, F.S.; 159 providing that a property insurer may include 160 provisions in property insurance policies limiting 161 post-loss assignability of policy rights only in 162 accordance with a specified provision; authorizing the 163 Financial Services Commission to adopt rules; 164 providing an effective date.