Florida Senate - 2017                          SENATOR AMENDMENT
       Bill No. CS/HB 359, 1st Eng.
       
       
       
       
       
       
                                Ì229518?Î229518                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/3R          .                                
             05/05/2017 01:18 PM       .                                
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       Senator Farmer moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (2) of section 177.041, Florida
    6  Statutes, is amended to read:
    7         177.041 Boundary survey and title certification required.
    8  Every plat or replat of a subdivision submitted to the approving
    9  agency of the local governing body must be accompanied by:
   10         (2) A title opinion of an attorney at law licensed in
   11  Florida or a property information report certification by an
   12  abstractor or a title company showing that record title to the
   13  land as described and shown on the plat is in the name of the
   14  person, persons, corporation, or entity executing the
   15  dedication. The title opinion or property information report
   16  must certification shall also show all mortgages not satisfied
   17  or released of record nor otherwise terminated by law.
   18         Section 2. Subsection (16) of section 177.091, Florida
   19  Statutes, is amended to read:
   20         177.091 Plats made for recording.—Every plat of a
   21  subdivision offered for recording shall conform to the
   22  following:
   23         (16) Location and width of proposed easements and existing
   24  easements identified in the title opinion or property
   25  information report certification required by s. 177.041(2) must
   26  shall be shown on the plat or in the notes or legend, and their
   27  intended use shall be clearly stated. Where easements are not
   28  coincident with property lines, they must be labeled with
   29  bearings and distances and tied to the principal lot, tract, or
   30  right-of-way.
   31         Section 3. Paragraph (a) of subsection (5) of section
   32  197.502, Florida Statutes, is amended to read:
   33         197.502 Application for obtaining tax deed by holder of tax
   34  sale certificate; fees.—
   35         (5)(a) The tax collector may contract with a title company
   36  or an abstract company to provide the minimum information
   37  required in subsection (4), consistent with rules adopted by the
   38  department. If additional information is required, the tax
   39  collector must make a written request to the title or abstract
   40  company stating the additional requirements. The tax collector
   41  may select any title or abstract company, regardless of its
   42  location, as long as the fee is reasonable, the minimum
   43  information is submitted, and the title or abstract company is
   44  authorized to do business in this state. The tax collector may
   45  advertise and accept bids for the title or abstract company if
   46  he or she considers it appropriate to do so.
   47         1. The property information ownership and encumbrance
   48  report must include the letterhead of the person, firm, or
   49  company that makes the search, and the signature of the
   50  individual who makes the search or of an officer of the firm.
   51  The tax collector is not liable for payment to the firm unless
   52  these requirements are met. The report may be submitted to the
   53  tax collector in an electronic format.
   54         2. The tax collector may not accept or pay for any title
   55  search or abstract if financial responsibility is not assumed
   56  for the search. However, reasonable restrictions as to the
   57  liability or responsibility of the title or abstract company are
   58  acceptable. Notwithstanding s. 627.7843(3), the tax collector
   59  may contract for higher maximum liability limits.
   60         3. In order to establish uniform prices for property
   61  information ownership and encumbrance reports within the county,
   62  the tax collector must ensure that the contract for property
   63  information ownership and encumbrance reports include all
   64  requests for title searches or abstracts for a given period of
   65  time.
   66         Section 4. Paragraph (b) of subsection (6) of section
   67  215.555, Florida Statutes, is amended to read:
   68         215.555 Florida Hurricane Catastrophe Fund.—
   69         (6) REVENUE BONDS.—
   70         (b) Emergency assessments.—
   71         1. If the board determines that the amount of revenue
   72  produced under subsection (5) is insufficient to fund the
   73  obligations, costs, and expenses of the fund and the
   74  corporation, including repayment of revenue bonds and that
   75  portion of the debt service coverage not met by reimbursement
   76  premiums, the board shall direct the Office of Insurance
   77  Regulation to levy, by order, an emergency assessment on direct
   78  premiums for all property and casualty lines of business in this
   79  state, including property and casualty business of surplus lines
   80  insurers regulated under part VIII of chapter 626, but not
   81  including any workers’ compensation premiums or medical
   82  malpractice premiums. As used in this subsection, the term
   83  “property and casualty business” includes all lines of business
   84  identified on Form 2, Exhibit of Premiums and Losses, in the
   85  annual statement required of authorized insurers by s. 624.424
   86  and any rule adopted under this section, except for those lines
   87  identified as accident and health insurance and except for
   88  policies written under the National Flood Insurance Program. The
   89  assessment shall be specified as a percentage of direct written
   90  premium and is subject to annual adjustments by the board in
   91  order to meet debt obligations. The same percentage applies to
   92  all policies in lines of business subject to the assessment
   93  issued or renewed during the 12-month period beginning on the
   94  effective date of the assessment.
   95         2. A premium is not subject to an annual assessment under
   96  this paragraph in excess of 6 percent of premium with respect to
   97  obligations arising out of losses attributable to any one
   98  contract year, and a premium is not subject to an aggregate
   99  annual assessment under this paragraph in excess of 10 percent
  100  of premium. An annual assessment under this paragraph continues
  101  as long as the revenue bonds issued with respect to which the
  102  assessment was imposed are outstanding, including any bonds the
  103  proceeds of which were used to refund the revenue bonds, unless
  104  adequate provision has been made for the payment of the bonds
  105  under the documents authorizing issuance of the bonds.
  106         3. Emergency assessments shall be collected from
  107  policyholders. Emergency assessments shall be remitted by
  108  insurers as a percentage of direct written premium for the
  109  preceding calendar quarter as specified in the order from the
  110  Office of Insurance Regulation. The office shall verify the
  111  accurate and timely collection and remittance of emergency
  112  assessments and shall report the information to the board in a
  113  form and at a time specified by the board. Each insurer
  114  collecting assessments shall provide the information with
  115  respect to premiums and collections as may be required by the
  116  office to enable the office to monitor and verify compliance
  117  with this paragraph.
  118         4. With respect to assessments of surplus lines premiums,
  119  each surplus lines agent shall collect the assessment at the
  120  same time as the agent collects the surplus lines tax required
  121  by s. 626.932, and the surplus lines agent shall remit the
  122  assessment to the Florida Surplus Lines Service Office created
  123  by s. 626.921 at the same time as the agent remits the surplus
  124  lines tax to the Florida Surplus Lines Service Office. The
  125  emergency assessment on each insured procuring coverage and
  126  filing under s. 626.938 shall be remitted by the insured to the
  127  Florida Surplus Lines Service Office at the time the insured
  128  pays the surplus lines tax to the Florida Surplus Lines Service
  129  Office. The Florida Surplus Lines Service Office shall remit the
  130  collected assessments to the fund or corporation as provided in
  131  the order levied by the Office of Insurance Regulation. The
  132  Florida Surplus Lines Service Office shall verify the proper
  133  application of such emergency assessments and shall assist the
  134  board in ensuring the accurate and timely collection and
  135  remittance of assessments as required by the board. The Florida
  136  Surplus Lines Service Office shall annually calculate the
  137  aggregate written premium on property and casualty business,
  138  other than workers’ compensation and medical malpractice,
  139  procured through surplus lines agents and insureds procuring
  140  coverage and filing under s. 626.938 and shall report the
  141  information to the board in a form and at a time specified by
  142  the board.
  143         5. Any assessment authority not used for a particular
  144  contract year may be used for a subsequent contract year. If,
  145  for a subsequent contract year, the board determines that the
  146  amount of revenue produced under subsection (5) is insufficient
  147  to fund the obligations, costs, and expenses of the fund and the
  148  corporation, including repayment of revenue bonds and that
  149  portion of the debt service coverage not met by reimbursement
  150  premiums, the board shall direct the Office of Insurance
  151  Regulation to levy an emergency assessment up to an amount not
  152  exceeding the amount of unused assessment authority from a
  153  previous contract year or years, plus an additional 4 percent
  154  provided that the assessments in the aggregate do not exceed the
  155  limits specified in subparagraph 2.
  156         6. The assessments otherwise payable to the corporation
  157  under this paragraph shall be paid to the fund unless the Office
  158  of Insurance Regulation and the Florida Surplus Lines Service
  159  Office received a notice from the corporation and the fund,
  160  which shall be conclusive and upon which they may rely without
  161  further inquiry, that the corporation has issued bonds and the
  162  fund has no agreements in effect with local governments under
  163  paragraph (c). On or after the date of the notice and until the
  164  date the corporation has no bonds outstanding, the fund shall
  165  have no right, title, or interest in or to the assessments,
  166  except as provided in the fund’s agreement with the corporation.
  167         7. Emergency assessments are not premium and are not
  168  subject to the premium tax, to the surplus lines tax, to any
  169  fees, or to any commissions. An insurer is liable for all
  170  assessments that it collects and must treat the failure of an
  171  insured to pay an assessment as a failure to pay the premium. An
  172  insurer is not liable for uncollectible assessments.
  173         8. If an insurer is required to return an unearned premium,
  174  it shall also return any collected assessment attributable to
  175  the unearned premium. A credit adjustment to the collected
  176  assessment may be made by the insurer with regard to future
  177  remittances that are payable to the fund or corporation, but the
  178  insurer is not entitled to a refund.
  179         9. If a surplus lines insured or an insured who has
  180  procured coverage and filed under s. 626.938 is entitled to the
  181  return of an unearned premium, the Florida Surplus Lines Service
  182  Office shall provide a credit or refund to the agent or such
  183  insured for the collected assessment attributable to the
  184  unearned premium before remitting the emergency assessment
  185  collected to the fund or corporation.
  186         10. The exemption of medical malpractice insurance premiums
  187  from emergency assessments under this paragraph is repealed May
  188  31, 2019, and medical malpractice insurance premiums shall be
  189  subject to emergency assessments attributable to loss events
  190  occurring in the contract years commencing on June 1, 2019.
  191         Section 5. Subsection (1) of section 624.407, Florida
  192  Statutes, is amended to read:
  193         624.407 Surplus required; new insurers.—
  194         (1) To receive authority to transact any one kind or
  195  combinations of kinds of insurance, as defined in part V of this
  196  chapter, an insurer applying for its original certificate of
  197  authority in this state shall possess surplus as to
  198  policyholders at least the greater of:
  199         (a) For a property and casualty insurer, $5 million, or
  200  $2.5 million for any other insurer;
  201         (b) For life insurers, 4 percent of the insurer’s total
  202  liabilities;
  203         (c) For life and health insurers, 4 percent of the
  204  insurer’s total liabilities, plus 6 percent of the insurer’s
  205  liabilities relative to health insurance;
  206         (d) For all insurers other than life insurers and life and
  207  health insurers, 10 percent of the insurer’s total liabilities;
  208         (e) Notwithstanding paragraph (a) or paragraph (d), for a
  209  domestic insurer that transacts residential property insurance
  210  and is:
  211         1. Not a wholly owned subsidiary of an insurer domiciled in
  212  any other state, $15 million.
  213         2. A wholly owned subsidiary of an insurer domiciled in any
  214  other state, $50 million; or
  215         (f) Notwithstanding paragraphs (a), (d), and (e), for a
  216  domestic insurer that only transacts limited sinkhole coverage
  217  insurance for personal lines residential property pursuant to s.
  218  627.7151, $7.5 million; or
  219         (g) Notwithstanding paragraphs (a), (b), and (e), for an
  220  insurer that only transacts residential property insurance in
  221  the form of renter’s insurance, tenant’s coverage, cooperative
  222  unit owner insurance, or any combination thereof, $10 million.
  223         Section 6. Paragraph (c) of subsection (8) of section
  224  624.424, Florida Statutes, is amended to read:
  225         624.424 Annual statement and other information.—
  226         (8)
  227         (c) The board of directors of an insurer shall hire the
  228  certified public accountant that prepares the audit required by
  229  this subsection and the board shall establish an audit committee
  230  of three or more directors of the insurer or an affiliated
  231  company. The audit committee shall be responsible for discussing
  232  audit findings and interacting with the certified public
  233  accountant with regard to her or his findings. The audit
  234  committee shall be comprised solely of members who are free from
  235  any relationship that, in the opinion of its board of directors,
  236  would interfere with the exercise of independent judgment as a
  237  committee member. The audit committee shall report to the board
  238  any findings of adverse financial conditions or significant
  239  deficiencies in internal controls that have been noted by the
  240  accountant. The insurer may request the office to waive this
  241  requirement of the audit committee membership based upon unusual
  242  hardship to the insurer.
  243         Section 7. Subsection (15) of section 625.012, Florida
  244  Statutes, is amended to read:
  245         625.012 “Assets” defined.—In any determination of the
  246  financial condition of an insurer, there shall be allowed as
  247  “assets” only such assets as are owned by the insurer and which
  248  consist of:
  249         (15)(a) Assessments levied pursuant to s. 631.57(3)(a) and
  250  (e) or s. 631.914 which that are paid before policy surcharges
  251  are collected and result in a receivable for policy surcharges
  252  to be collected in the future. This amount, to the extent it is
  253  likely that it will be realized, meets the definition of an
  254  admissible asset as specified in the National Association of
  255  Insurance Commissioners’ Statement of Statutory Accounting
  256  Principles No. 4. The asset shall be established and recorded
  257  separately from the liability regardless of whether it is based
  258  on a retrospective or prospective premium-based assessment. If
  259  an insurer is unable to fully recoup the amount of the
  260  assessment because of a reduction in writings or withdrawal from
  261  the market, the amount recorded as an asset shall be reduced to
  262  the amount reasonably expected to be recouped.
  263         (b) Assessments levied as monthly installments pursuant to
  264  s. 631.57(3)(e)3. or s. 631.914 which that are paid after policy
  265  surcharges are collected so that the recognition of assets is
  266  based on actual premium written offset by the obligation to the
  267  Florida Insurance Guaranty Association or the Florida Workers’
  268  Compensation Insurance Guaranty Association, Incorporated.
  269         Section 8. Paragraph (e) of subsection (7) of section
  270  627.062, Florida Statutes, is amended, and subsection (11) is
  271  added to that section, to read:
  272         627.062 Rate standards.—
  273         (7) The provisions of this subsection apply only to rates
  274  for medical malpractice insurance and control to the extent of
  275  any conflict with other provisions of this section.
  276         (e) For medical malpractice rates subject to paragraph
  277  (2)(a), the medical malpractice insurer shall make an annual
  278  base a rate filing in accordance with s. 627.0645 under this
  279  section, sworn to by at least two executive officers of the
  280  insurer, at least once each calendar year.
  281         (11) Attorney fees and costs paid by a property insurer
  282  pursuant to s. 627.428 may not be included in the property
  283  insurer’s rate base and may not be used to justify a rate
  284  increase or rate change.
  285         Section 9. Subsection (1) of section 627.0645, Florida
  286  Statutes, is amended to read:
  287         627.0645 Annual filings.—
  288         (1) Each rating organization filing rates for, and each
  289  insurer writing, any line of property or casualty insurance to
  290  which this part applies, except:
  291         (a) Workers’ compensation and employer’s liability
  292  insurance;
  293         (b) Insurance as defined in ss. 624.604 and 624.605,
  294  limited to coverage of commercial risks other than commercial
  295  residential multiperil and medical malpractice insurance that is
  296  subject to s. 627.062(2)(a) and (f); or
  297         (c) Travel insurance, if issued as a master group policy
  298  with a situs in another state where each certificateholder pays
  299  less than $30 in premium for each covered trip and where the
  300  insurer has written less than $1 million in annual written
  301  premiums in the travel insurance product in this state during
  302  the most recent calendar year,
  303  
  304  shall make an annual base rate filing for each such line with
  305  the office no later than 12 months after its previous base rate
  306  filing, demonstrating that its rates are not inadequate.
  307         Section 10. Section 627.4035, Florida Statutes, is amended
  308  to read:
  309         627.4035 Cash Payment of premiums; claims.—
  310         (1)(a) The premiums for insurance contracts issued in this
  311  state or covering risk located in this state must shall be paid
  312  in cash consisting of coins, currency, checks, electronic
  313  checks, drafts, or money orders or by using a debit card, credit
  314  card, automatic electronic funds transfer, or payroll deduction
  315  plan. By July 1, 2007, Insurers issuing personal lines
  316  residential and commercial property policies shall provide a
  317  premium payment plan option to their policyholders which allows
  318  for a minimum of quarterly and semiannual payment of premiums.
  319  Insurers may, but are not required to, offer monthly payment
  320  plans. Insurers issuing such policies must submit their premium
  321  payment plan option to the office for approval before use.
  322         (b) If, due to insufficient funds, a payment of premium
  323  under this subsection by debit card, credit card, electronic
  324  funds transfer, or electronic check is returned, is declined, or
  325  cannot be processed, the insurer may impose an insufficient
  326  funds fee of up to $15 per occurrence pursuant to the policy
  327  terms. However, the insurer may not charge the policyholder an
  328  insufficient funds fee if the failure in payment resulted from
  329  fraud or misuse on the policyholder’s account from which the
  330  payment was made and such fraud or misuse was not attributed to
  331  the policyholder.
  332         (2) Subsection (1) is not applicable to:
  333         (a) Reinsurance agreements;
  334         (b) Pension plans;
  335         (c) Premium loans, whether or not subject to an automatic
  336  provision;
  337         (d) Dividends, whether to purchase additional paid-up
  338  insurance or to shorten the dividend payment period;
  339         (e) Salary deduction plans;
  340         (f) Preauthorized check plans;
  341         (g) Waivers of premiums on disability;
  342         (h) Nonforfeiture provisions affording benefits under
  343  supplementary contracts; or
  344         (i) Such other methods of paying for life insurance as may
  345  be permitted by the commission pursuant to rule or regulation.
  346         (3) All payments of claims made in this state under any
  347  contract of insurance shall be paid:
  348         (a) In cash consisting of coins, currency, checks, drafts,
  349  or money orders and, if by check or draft, shall be in such form
  350  as will comply with the standards for cash items adopted by the
  351  Federal Reserve System to facilitate the sorting, routing, and
  352  mechanized processing of such items; or
  353         (b) If authorized in writing by the recipient or the
  354  recipient’s representative, by debit card or any other form of
  355  electronic transfer. Any fees or costs to be charged against the
  356  recipient must be disclosed in writing to the recipient or the
  357  recipient’s representative at the time of written authorization.
  358  However, the written authorization requirement may be waived by
  359  the recipient or the recipient’s representative if the insurer
  360  verifies the identity of the insured or the insured’s recipient
  361  and does not charge a fee for the transaction. If the funds are
  362  misdirected, the insurer remains liable for the payment of the
  363  claim.
  364         Section 11. Subsection (5) is added to section 627.421,
  365  Florida Statutes, to read:
  366         627.421 Delivery of policy.—
  367         (5)An electronically delivered document satisfies any
  368  font, size, color, spacing, or other formatting requirement for
  369  printed documents if the format in the electronically delivered
  370  document has reasonably similar proportions or emphasis of the
  371  characters relative to the rest of the electronic document or is
  372  otherwise displayed in a reasonably conspicuous manner.
  373         Section 12. Subsection (9) of section 627.7295, Florida
  374  Statutes, is amended to read:
  375         627.7295 Motor vehicle insurance contracts.—
  376         (9)(a) In addition to the methods provided in s.
  377  627.4035(1), premium for motor vehicle insurance contracts
  378  issued in this state or covering risk located in this state may
  379  be paid in cash in the form of a draft or drafts.
  380         (b) If, due to insufficient funds, payment of premium under
  381  this subsection by debit card, credit card, electronic funds
  382  transfer, or electronic check is returned, is declined, or
  383  cannot be processed, the insurer may impose an insufficient
  384  funds fee of up to $15 per occurrence pursuant to the policy
  385  terms.
  386         Section 13. Section 627.7843, Florida Statutes, is amended
  387  to read:
  388         627.7843 Property information reports Ownership and
  389  encumbrance reports.—
  390         (1) As used in this section, the term “property information
  391  report” means any report that contains the limitations of this
  392  section and discloses documents or information appearing in the
  393  Official Records as described in s. 28.222, in the records of a
  394  county tax collector pertaining to ad valorem real property
  395  taxes and special assessments imposed by a governmental
  396  authority against real property, in the Secretary of State
  397  filing office, or in another governmental filing office
  398  pertaining to real or personal property. A property information
  399  report may be issued by any person, including a Florida-licensed
  400  title insurer, title agent, or title agency “ownership and
  401  encumbrance report” means a report that discloses certain
  402  defined documents imparting constructive notice and appearing in
  403  the official records relating to specified real property.
  404         (2) A property information An ownership and encumbrance
  405  report may not directly or indirectly set forth or imply any
  406  opinion, warranty, guarantee, insurance, or other similar
  407  assurance and does not constitute title insurance as defined in
  408  s. 624.608 as to the status of title to real property.
  409         (3) The contractual liability of the issuer of a property
  410  information report is limited to the person or persons expressly
  411  identified by name in the property information report as the
  412  recipient or recipients of the property information report and
  413  may not exceed the amount paid for the property information
  414  report. Only contractual remedies are available for an error or
  415  omission that arises from a property information report. A
  416  property information report must contain the following language:
  417  
  418  “This report is not title insurance. Pursuant to s. 627.7843,
  419  Florida Statutes, the maximum liability of the issuer of this
  420  property information report for errors or omissions in this
  421  property information report is limited to the amount paid for
  422  this property information report, and is further limited to the
  423  person(s) expressly identified by name in the property
  424  information report as the recipient(s) of the property
  425  information report.” Any ownership and encumbrance report or
  426  similar report that is relied on or intended to be relied on by
  427  a consumer must be on forms approved by the office, and must
  428  provide for a maximum liability for incorrect information of not
  429  more than $1,000.
  430         (4) This section is not applicable to an opinion of title
  431  issued by an attorney.
  432         Section 14. Section 627.422, Florida Statutes, is amended
  433  to read:
  434         627.422 Assignment of policies or post-loss benefits.—A
  435  policy may be assignable, or not assignable, as provided by its
  436  terms.
  437         (1) LIFE OR HEALTH INSURANCE POLICIES.—Subject to its terms
  438  relating to assignability, any life or health insurance policy
  439  under the terms of which the beneficiary may be changed upon the
  440  sole request of the policyowner may be assigned either by pledge
  441  or transfer of title, by an assignment executed by the
  442  policyowner alone and delivered to the insurer, whether or not
  443  the pledgee or assignee is the insurer. Any such assignment
  444  shall entitle the insurer to deal with the assignee as the owner
  445  or pledgee of the policy in accordance with the terms of the
  446  assignment, until the insurer has received at its home office
  447  written notice of termination of the assignment or pledge or
  448  written notice by or on behalf of some other person claiming
  449  some interest in the policy in conflict with the assignment.
  450         (2) POST-LOSS BENEFITS UNDER CERTAIN PROPERTY INSURANCE
  451  POLICIES.—A personal lines residential property insurance
  452  policy, a commercial residential property insurance policy, or a
  453  commercial property insurance policy may not prohibit or limit
  454  the post-loss assignment of benefits. This subsection does not
  455  affect the assignment of benefits in other insurance policies.
  456         (a) An agreement to assign post-loss benefits under this
  457  subsection is not valid unless the agreement:
  458         1. Is in writing between the policyholder and assignee and
  459  is delivered to the insurer as provided in paragraph (c);
  460         2.Is limited to claims for work performed or to be
  461  performed by the assignee for damages claimed to be covered;
  462         3.Allows the policyholder to unilaterally cancel the
  463  assignment of post-loss benefits without penalty or obligation
  464  within 7 days after the execution of the assignment by an
  465  insured; provided, however, that the policyholder or insurer may
  466  be responsible for payment for work already performed during
  467  such period;
  468         4. Contains an accurate and up-to-date statement of the
  469  scope of work to be performed;
  470         5. Includes proof that the assignee possesses a valid
  471  certification from an entity that requires water damage
  472  remediation to be performed according to a standard approved by
  473  the American National Standards Institute; and
  474         6. Contains the following notice in at least 14-point,
  475  capitalized type:
  476  
  477  YOU ARE AUTHORIZING THE ASSIGNEE OF YOUR POLICY TO COMMUNICATE
  478  WITH YOUR INSURANCE COMPANY ON YOUR BEHALF. THIS ASSIGNMENT
  479  GIVES YOUR ASSIGNEE THE PRIMARY AUTHORITY TO NEGOTIATE WITH YOUR
  480  INSURANCE COMPANY ON YOUR BEHALF. PLEASE READ AND UNDERSTAND
  481  THIS DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT TO CANCEL
  482  THIS AGREEMENT WITHOUT PENALTY OR OBLIGATION WITHIN 7 DAYS AFTER
  483  THE DATE THIS AGREEMENT IS EXECUTED. SHOULD YOU CANCEL THIS
  484  AGREEMENT, YOU OR YOUR INSURER MAY BE RESPONSIBLE FOR ANY WORK
  485  THAT HAS ALREADY BEEN PERFORMED. THIS AGREEMENT DOES NOT CHANGE
  486  YOUR OBLIGATION TO PERFORM THE DUTIES UNDER YOUR PROPERTY
  487  INSURANCE POLICY.
  488         (b) An assignee of post-loss benefits under this
  489  subsection:
  490         1. Must provide the policyholder with accurate and up-to
  491  date revised statements of the scope of work to be performed as
  492  supplemental or additional repairs are required, and must
  493  provide to the policyholder and insurer a final invoice and bill
  494  for service rendered within 7 business days after the date on
  495  which the work was completed;
  496         2. Must guarantee to the policyholder that the work
  497  performed conforms to current and accepted industry standards;
  498         3. May not charge the policyholder more than the applicable
  499  deductible contained in the policy unless the policyholder opts
  500  for additional work or betterment of materials at the
  501  policyholder’s own expense;
  502         4. May not pay referral fees totaling more than $250 in
  503  connection with the assignment; and
  504         5.May not charge the policyholder directly, except for
  505  additional work not covered under the policy which includes:
  506         a.Work performed that is rightfully denied as not covered;
  507  and
  508         b.Betterments or additional work not part of the loss.
  509         (c) An insurer shall provide on its website and in the
  510  policy its contact information for receiving the agreement that
  511  meets the requirements of paragraph (a). The contact information
  512  must include at least a dedicated facsimile number. After
  513  executing the assignment agreement, the assignee must deliver
  514  the agreement to the insurer within the later of:
  515         1. If a state of emergency was declared under s. 252.36 for
  516  a hurricane or other natural disaster and the property covered
  517  under the policy was damaged as a result of the hurricane or
  518  natural disaster, 7 days after the state of emergency is
  519  terminated; or
  520         2. Seven business days after execution of the agreement.
  521         (d) Notwithstanding s. 627.70131, upon receiving the
  522  agreement in paragraph (a), the insurer must make any initial
  523  inspections of the covered property within the later of:
  524         1. If a state of emergency was declared under s. 252.36 for
  525  a hurricane or other natural disaster and the property covered
  526  under the policy was damaged as a result of the hurricane or
  527  natural disaster, 7 days after the state of emergency is
  528  terminated; or
  529         2. Seven business days after receiving the agreement.
  530         (e) No later than 7 days before an insured or assignee
  531  initiates litigation against an insurer relating to a denied or
  532  limited claim, the insured or assignee must provide the insurer
  533  with notice of intent to initiate such litigation. The notice of
  534  intent must include a copy of the final invoice required under
  535  subparagraph (b)1 for the work that has been performed or an
  536  estimate of the work to be performed. This paragraph does not
  537  increase the time periods prescribed in s. 627.70131.
  538         (f) Notwithstanding any other law, in a dispute relating to
  539  the assignment of benefits for a personal lines residential
  540  property insurance policy, commercial residential property
  541  insurance policy, or commercial property insurance policy in
  542  which an assignee but not the named insured is a party, for any
  543  proposal for settlement made to a plaintiff, such proposal shall
  544  be served no earlier than 10 days after the date of commencement
  545  of the action.
  546         (g) This section does not apply to:
  547         1. An assignment, transfer, or conveyance granted to a
  548  subsequent purchaser of the property with an insurable interest
  549  in the property following a loss;
  550         2. A power of attorney under chapter 709 which grants to a
  551  management company, family member, guardian, or similarly
  552  situated person of an insured the authority to act on behalf of
  553  an insured as it relates to a property insurance claim; or
  554         3. Liability coverage under a property insurance policy.
  555         (3) ANNUAL REPORT.—The office shall require each insurer to
  556  report by March 31, 2019, and each year thereafter, data on each
  557  claim paid in the prior calendar year pursuant to an assignment
  558  agreement. Such data must include, but are not limited to:
  559         (a)The number of days between the first notice of loss and
  560  the initial inspection.
  561         (b) Loss severity.
  562         (c)Allocated loss adjustment expense.
  563         (d)For litigated claims:
  564         1.Any amount paid before litigation, the amount in
  565  dispute, the amount of any proposal for settlement, and the
  566  settlement or judgment amount;
  567         2.The amount of fees paid to the claimant’s attorney; and
  568         3.The amount and structure, whether fixed, hourly, or
  569  contingent, of fees paid to the insurer’s attorney.
  570  
  571  All information the insurer reports under this paragraph must
  572  first be reported to the opposing counsel on the litigated claim
  573  for verification or certification. The opposing counsel on the
  574  litigated claim shall report to the office its agreement or
  575  disagreement with the accuracy of the figures reported.
  576         (e) For nonlitigated claims, the difference between the
  577  insurer’s initial offer and the amount paid on the claim.
  578         (f)The time from the first notice of loss until the claim
  579  was closed.
  580         (g)For claims involving water damage, whether the adjuster
  581  possessed certification from an entity that requires water
  582  damage remediation to be performed according to a standard
  583  approved by the American National Standards Institute.
  584         Section 15. The amendments made by this act to s. 627.422,
  585  Florida Statutes, apply to assignment agreements entered into on
  586  or after January 1, 2018.
  587         Section 16. Paragraph (a) of subsection (3) of section
  588  627.7011, Florida Statutes, is amended to read:
  589         627.7011 Homeowners’ policies; offer of replacement cost
  590  coverage and law and ordinance coverage.—
  591         (3) In the event of a loss for which a dwelling or personal
  592  property is insured on the basis of replacement costs:
  593         (a) For a dwelling:,
  594         1. The insurer must initially pay at least the actual cash
  595  value of the insured loss, less any applicable deductible. The
  596  insurer shall pay any remaining amounts necessary to perform
  597  such repairs as work is performed and expenses are incurred. If
  598  a total loss of a dwelling occurs, the insurer shall pay the
  599  replacement cost coverage without reservation or holdback of any
  600  depreciation in value, pursuant to s. 627.702.
  601         2. The insurer may not require that a particular vendor
  602  make repairs to such dwelling.
  603         3. The insurer may not, unless expressly requested by the
  604  insured, recommend or suggest a particular vendor for repairs to
  605  be made to such dwelling.
  606         Section 17. This act shall take effect upon becoming a law.
  607  
  608  ================= T I T L E  A M E N D M E N T ================
  609  And the title is amended as follows:
  610         Delete everything before the enacting clause
  611  and insert:
  612                        A bill to be entitled                      
  613         An act relating to insurance; amending s. 177.041,
  614         F.S.; providing that a specified property information
  615         report, rather than a specified certification by an
  616         abstractor or a title company, may be submitted as
  617         part of certain information required in relation to
  618         the plat or replat of a subdivision; amending ss.
  619         177.091 and 197.502, F.S.; conforming provisions to
  620         changes made by the act; amending s. 215.555, F.S.;
  621         deleting a future repeal of an exemption of medical
  622         malpractice insurance premiums from certain emergency
  623         assessments by the State Board of Administration
  624         relating to the Florida Hurricane Catastrophe Fund;
  625         amending s. 624.407, F.S.; specifying the minimum
  626         surplus as to policyholders for insurers that only
  627         transact in specified forms of residential property
  628         insurance; amending s. 624.424, F.S.; revising a
  629         requirement for audit committees established by the
  630         boards of directors of insurers, relating to
  631         relationships that would interfere with the exercise
  632         of independent judgment of committee members; amending
  633         s. 625.012, F.S.; revising the allowable assets of
  634         insurers relating to specified levied assessments;
  635         amending s. 627.062, F.S.; revising requirements for
  636         certain rate filings by medical malpractice insurers;
  637         providing that certain attorney fees and costs paid by
  638         property insurers may not be included such insurers’
  639         rate base and may not be used to justify a rate
  640         increase or rate change; amending s. 627.0645, F.S.;
  641         adding certain medical malpractice insurance to
  642         casualty insurance excluded from an annual base rate
  643         filing requirement for rating organizations; amending
  644         s. 627.4035, F.S.; revising the methods of paying
  645         premiums for insurance contracts; authorizing an
  646         insurer to impose a specified insufficient funds fee
  647         if certain premium payment methods are returned, are
  648         declined, or cannot be processed; providing an
  649         exception; amending s. 627.421, F.S.; providing that
  650         an electronically delivered document in an insurance
  651         policy meets formatting requirements for printed
  652         documents under certain conditions; amending s.
  653         627.7295, F.S.; conforming provisions to changes made
  654         by the act; amending s. 627.7843, F.S.; replacing
  655         provisions relating to ownership and encumbrance
  656         reports with provisions relating to property
  657         information reports; defining the term “property
  658         information report”; prohibiting property information
  659         reports from setting forth or implying certain
  660         assurances; providing construction; specifying a
  661         limitation on the contractual liability of issuers of
  662         property information reports; requiring a specified
  663         disclosure in property information reports; providing
  664         applicability; amending s. 627.422, F.S.; prohibiting
  665         certain property insurance policies from prohibiting
  666         or limiting the post-loss assignment of benefits;
  667         providing that an assignment agreement is not valid
  668         unless it meets specified requirements; providing
  669         requirements and limitations for assignees of post
  670         loss benefits; requiring insurers to provide specified
  671         contact information on their websites and in policies;
  672         requiring assignees to deliver an executed assignment
  673         agreement to insurers within a specified timeframe;
  674         requiring insurers, upon receiving such agreements, to
  675         make any initial inspections of covered property
  676         within specified timeframes; requiring insureds or
  677         assignees to provide a certain prelitigation notice
  678         and invoice to insurers within a specified timeframe;
  679         providing construction; requiring certain settlement
  680         proposals to a plaintiff to be served no earlier than
  681         a specified time; providing applicability; requiring
  682         the Office of Insurance Regulation to require each
  683         insurer to report at specified timeframes certain data
  684         relating to claims paid pursuant to assignment
  685         agreements; requiring insurers to report certain
  686         information to opposing counsel, and requiring the
  687         opposing counsel to verify or certify the information;
  688         providing applicability of the amendments made by the
  689         act; amending s. 627.7011, F.S.; prohibiting specified
  690         acts of insurers relating to homeowners’ insurance
  691         policies under certain circumstances; providing an
  692         effective date.