Florida Senate - 2016 CS for SB 596 By the Committee on Banking and Insurance; and Senator Hukill 597-02873-16 2016596c1 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: 17 627.70133 Assignment 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 provided to the insured’s property insurer within 33 3 business days after execution; 34 (c) It contains an estimate for proposed services and 35 materials to be provided; 36 (d) With the exception of reimbursement for work already 37 performed to mitigate or repair covered damage, it allows the 38 insured to cancel the agreement, in writing, without penalty or 39 obligation within 3 business days after the date the agreement 40 is executed or within 3 business days after the insurer has been 41 provided with the agreement, whichever is later. However, if the 42 agreement is executed to perform work resulting from an event 43 for which the Governor has declared a state of emergency and is 44 within 1 year after such declaration, the insured has 5 business 45 days after the date the agreement is executed to cancel the 46 agreement without penalty; and 47 (e) It contains the following notice in 14-point type: 48 WARNING: YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE 49 UNDER YOUR INSURANCE POLICY TO A THIRD PARTY. PLEASE READ AND 50 UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT 51 TO CANCEL THIS AGREEMENT WITHOUT PENALTY WITHIN 3 BUSINESS DAYS 52 AFTER THE DATE THIS AGREEMENT IS EXECUTED OR WITHIN 3 BUSINESS 53 DAYS AFTER YOUR PROPERTY INSURANCE COMPANY HAS RECEIVED A COPY 54 OF THIS AGREEMENT, WHICHEVER IS LATER. IF WORK IS BEING 55 PERFORMED AS A RESULT OF DAMAGES CAUSED BY AN EVENT FOR WHICH 56 THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY AND IS WITHIN 1 57 YEAR AFTER SUCH DECLARATION, YOU HAVE 5 DAYS AFTER THE DATE OF 58 EXECUTION TO CANCEL. THIS AGREEMENT DOES NOT CHANGE YOUR DUTIES 59 UNDER YOUR PROPERTY INSURANCE POLICY, SUCH AS PROMPTLY NOTIFYING 60 YOUR INSURANCE COMPANY OF A LOSS AND MITIGATING YOUR PROPERTY 61 FROM FURTHER DAMAGE. 62 (2) An agreement is void if: 63 (a) It imposes an agreement cancellation fee, a check 64 processing fee, or a mortgage processing fee or adds an amount 65 for overhead and profit to the amount for mitigation and repair 66 of covered property; 67 (b) A final invoice issued under the agreement exceeds the 68 estimated cost for work performed and the increase in cost was 69 not authorized by the insurer; 70 (c) It purports to assign or transfer the right to enforce 71 payment for post-loss benefits in the policy; 72 (d) It prevents or inhibits an insurer from communicating 73 with the insured at any time; or 74 (e) It purports to transfer or create any authority to 75 adjust, negotiate, or settle any portion of a claim to a person 76 or entity who is not authorized to adjust, negotiate, or settle 77 a claim on behalf of the insured or claimant under part VI of 78 chapter 626. 79 (3) This section does not apply to a power of attorney 80 granted to a management company, family member, guardian, or 81 similarly situated person which complies with chapter 709 and 82 which may include, as part of the authority granted, the 83 authority to act in place of a principal as it relates to a 84 property insurance claim. 85 Section 2. This act applies to post-loss assignments or 86 transfers of rights, benefits, or policy provisions not related 87 to liability coverage which are executed after the effective 88 date of this act. 89 Section 3. This act shall take effect upon becoming a law.