Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. SB 1168 Ì422902zÎ422902 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Broxson) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Section 627.7152, Florida Statutes, is created 6 to read: 7 627.7152 Assignment of property insurance post-loss 8 benefits.— 9 (1) As used in this section, the term “assignment 10 agreement” means any instrument by which post-loss property 11 insurance benefits for services to protect, repair, restore, or 12 replace property, or to mitigate against further damage to 13 property, are assigned, transferred, or conveyed, regardless of 14 how named or styled. 15 (2) Notwithstanding any other law, as to suits based on 16 claims arising under property insurance policies, attorney fees 17 may not be awarded under s. 626.9373 or s. 627.428 in favor of 18 any person or entity seeking relief against an insurer pursuant 19 to an assignment agreement, but may be awarded only under s. 20 57.105 or s. 768.79 in favor of any person or entity seeking 21 relief against the insurer pursuant to an assignment agreement. 22 (3) An assignment agreement is not valid unless it meets 23 all of the following requirements: 24 (a) The assignment agreement is in writing and is executed 25 by all named insureds; 26 (b) The assignment agreement contains a provision that 27 permits all named insureds to rescind the assignment agreement 28 without any penalty or rescission or cancellation fee within 7 29 business days after the date the assignment agreement is 30 executed by all named insureds; 31 (c) The assignment agreement contains a provision requiring 32 the assignee or transferee to provide a copy of the executed 33 assignment agreement to the insurer no later than 3 business 34 days after the assignment agreement is executed by any named 35 insured; and 36 (d) The assignment agreement contains a written, itemized, 37 per-unit cost estimate of the work to be performed by the 38 assignee or transferee. 39 (4) The following provisions may not be included in an 40 assignment agreement and are deemed to be invalid and 41 unenforceable against the property insurer or named insureds: 42 (a) A penalty or fee for rescission of the assignment 43 agreement pursuant to subsection (3); 44 (b) A check or mortgage processing fee; 45 (c) A penalty or fee for cancellation of the assignment 46 agreement pursuant to subsection (3); or 47 (d) An administrative fee. 48 (5) As to claims arising under an assignment agreement, the 49 failure to comply with any provision of this subsection creates 50 a presumption that the insurer is prejudiced by such failure to 51 comply and shifts the burden in any proceeding or suit to the 52 party seeking benefits, rights, or proceeds from the insurer to 53 demonstrate that the insurer was not prejudiced. The assignee or 54 transferee must do all of the following: 55 (a) Maintain records of all services provided under the 56 assignment agreement; 57 (b) Cooperate with the insurer in the investigation of a 58 claim; 59 (c) Provide the insurer with any and all records and 60 documents requested related to services provided and permit the 61 insurer to make copies; 62 (d) Deliver a copy of the executed assignment agreement to 63 the insurer no later than 3 business days after the assignment 64 agreement is executed by all named insureds; and 65 (e) Concurrently with any request for payment of benefits 66 under the insurance policy, provide the insurer with a written, 67 itemized, per-unit cost statement of services actually performed 68 pursuant to the assignment agreement. 69 (6) As to claims arising under an assignment agreement, an 70 assignee must, as a condition precedent to filing a suit under 71 the policy: 72 (a) If required by the insurer, submit to examinations 73 under oath and recorded statements conducted by the insurer or 74 the insurer’s representative which are limited to matters 75 related to the services provided, the costs of services, and the 76 assignment or transfer; and 77 (b) Participate in an appraisal or other alternative 78 dispute resolution method in accordance with the terms of the 79 policy. 80 (7) An activity in compliance with subsections (5) and (6) 81 does not constitute practice as a public adjuster pursuant to 82 part VI of chapter 626. 83 (8) Notwithstanding any other law, the acceptance by a 84 person of any assignment agreement constitutes a waiver by the 85 assignee or transferee, and any subcontractor of the assignee or 86 transferee, of any and all claims against all named insureds for 87 payment arising from the specified loss, except that all named 88 insureds remain responsible for the payment of any deductible 89 amount provided for by the terms of the insurance policy and for 90 the cost of any betterment ordered by all named insureds. This 91 waiver remains in effect notwithstanding any subsequent 92 determination that the assignment agreement is invalid or the 93 rescission of the assignment agreement by all named insureds. 94 (9) This section does not permit an assignment agreement to 95 modify or eliminate any term, condition, or defense relating to 96 any managed repair arrangement provided for in the insurance 97 policy to which the assignment agreement relates. 98 (10) This section does not apply to: 99 (a) An assignment, transfer, or conveyance granted to a 100 subsequent purchaser of property who acquires an insurable 101 interest in the property following a loss; 102 (b) A power of attorney granted to a management company, 103 family member, guardian, or similarly situated person which 104 complies with chapter 709 and which may include, as part of the 105 authority granted, the authority to act on behalf of a principal 106 as it relates to a property insurance claim; or 107 (c) Liability coverage under a property insurance policy. 108 (11) This section applies to assignment agreements that are 109 executed after July 1, 2018. 110 Section 2. To ensure that insurers are incorporating 111 adjusted loss trends into rates after July 1, 2018, a property 112 insurer that is subject to s. 627.0645, Florida Statutes, in the 113 year after July 1, 2018, may not certify a rate pursuant to s. 114 627.0645(3)(b), Florida Statutes, but must make a full filing 115 pursuant to s. 627.0645(3)(a), Florida Statutes, to meet the 116 annual filing requirement under that section. 117 Section 3. This act shall take effect July 1, 2018. 118 119 ================= T I T L E A M E N D M E N T ================ 120 And the title is amended as follows: 121 Delete everything before the enacting clause 122 and insert: 123 A bill to be entitled 124 An act relating to the assignment of property 125 insurance benefits; creating s. 627.7152, F.S.; 126 defining the term “assignment agreement”; prohibiting 127 certain awards of attorney fees to certain persons or 128 entities in suits brought against insurers based on 129 claims arising under property insurance policies; 130 providing that attorney fees may be awarded to such 131 persons or entities only under specified provisions; 132 providing that an assignment agreement is not valid 133 unless specified requirements are met; prohibiting 134 certain provisions in an assignment agreement; 135 specifying requirements for an assignee or transferee; 136 requiring an assignee to meet certain requirements as 137 a condition precedent to filing suit under a policy; 138 providing construction; providing applicability; 139 providing that certain property insurers, within a 140 specified timeframe, must make full annual base rate 141 filings with the Office of Insurance Regulation rather 142 than certifying rates; providing an effective date.