Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1168
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Judiciary (Steube) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 52 - 157
    4  and insert:
    5         Section 1. Subsection (1) of section 627.409, Florida
    6  Statutes, is amended to read:
    7         627.409 Representations in applications; warranties.—
    8         (1) Any statement or description made by or on behalf of an
    9  insured or annuitant in an application for an insurance policy
   10  or annuity contract, or in negotiations for a policy or
   11  contract, is a representation and not a warranty. Except as
   12  provided in subsection (3), a misrepresentation, omission,
   13  concealment of fact, or incorrect statement may prevent recovery
   14  under the contract or policy only if the misrepresentation,
   15  omission, concealment of fact, or incorrect statement directly
   16  relates to the cause of the claim being made and any of the
   17  following apply:
   18         (a) The misrepresentation, omission, concealment, or
   19  statement is fraudulent or is material to the acceptance of the
   20  risk or to the hazard assumed by the insurer.
   21         (b) If the true facts relative to the loss claimed had been
   22  known to the insurer pursuant to a policy requirement or other
   23  requirement, the insurer in good faith would not have:
   24         1. Issued the policy or contract;, would not have
   25         2. Issued the policy or contract it at a the same premium
   26  rate at least 20 percent higher than the rate actually charged;,
   27  would not have
   28         3. Issued a policy or contract in as large an amount;, or
   29         4.would not have Provided coverage with respect to the
   30  hazard resulting in the loss.
   31         Section 2. Section 627.422, Florida Statutes, is amended to
   32  read:
   33         627.422 Assignment of policies or post-loss benefits.—A
   34  policy may be assignable, or not assignable, as provided by its
   35  terms.
   36         (1) LIFE OR HEALTH INSURANCE POLICIES.—Subject to its terms
   37  relating to assignability, any life or health insurance policy
   38  under the terms of which the beneficiary may be changed upon the
   39  sole request of the policyowner may be assigned either by pledge
   40  or transfer of title, by an assignment executed by the
   41  policyowner alone and delivered to the insurer, whether or not
   42  the pledgee or assignee is the insurer. Any such assignment
   43  shall entitle the insurer to deal with the assignee as the owner
   44  or pledgee of the policy in accordance with the terms of the
   45  assignment, until the insurer has received at its home office
   46  written notice of termination of the assignment or pledge or
   47  written notice by or on behalf of some other person claiming
   48  some interest in the policy in conflict with the assignment.
   50  POLICIES.-A personal lines residential property insurance policy
   51  or a commercial residential property insurance policy may not
   52  restrict the assignment of post-loss benefits.
   53         Section 3. Paragraph (a) of subsection (3) of section
   54  627.7011, Florida Statutes, is amended to read:
   55         627.7011 Homeowners’ policies; offer of replacement cost
   56  coverage and law and ordinance coverage.—
   57         (3) In the event of a loss for which a dwelling or personal
   58  property is insured on the basis of replacement costs:
   59         (a) For a dwelling:,
   60         1. The insurer must initially pay at least the actual cash
   61  value of the insured loss, less any applicable deductible. The
   62  insurer shall pay any remaining amounts necessary to perform
   63  such repairs as work is performed and expenses are incurred. If
   64  a total loss of a dwelling occurs, the insurer shall pay the
   65  replacement cost coverage without reservation or holdback of any
   66  depreciation in value, pursuant to s. 627.702.
   67         2. The insurer may not require that a particular vendor
   68  make repairs to such dwelling.
   69         3. The insurer may not, unless expressly requested by the
   70  insured, recommend or suggest a particular vendor for repairs to
   71  be made to such dwelling.
   72         Section 4. Paragraph (a) of subsection (2) of section
   73  627.706, Florida Statutes, is amended to read
   74         627.706 Sinkhole insurance; catastrophic ground cover
   75  collapse; definitions.—
   76         (2) As used in ss. 627.706-627.7074, and as used in
   77  connection with any policy providing coverage for a catastrophic
   78  ground cover collapse or for sinkhole losses, the term:
   79         (a) “Catastrophic ground cover collapse” means geological
   80  activity that results in any of all the following:
   81         1. The imminent abrupt collapse of the ground cover.;
   82         2. A depression in the ground cover clearly visible to the
   83  naked eye and;
   84         3. Structural damage to the covered building, including the
   85  foundation.; and
   86         3.4. The insured structure being condemned and ordered to
   87  be vacated by the governmental agency authorized by law to issue
   88  such an order for that structure, or being declared dangerous,
   89  as defined in the Florida Building Code, by written notice of
   90  the real and imminent threat to public safety which is from a
   91  licensed professional engineer to the governmental agency having
   92  code enforcement authority for the structure.
   94  Contents coverage applies if there is a loss resulting from a
   95  catastrophic ground cover collapse. Damage consisting merely of
   96  the settling or cracking of a foundation, structure, or building
   97  does not constitute a loss resulting from a catastrophic ground
   98  cover collapse, unless the building has been ordered to be
   99  vacated, or is declared dangerous by a licensed professional
  100  engineer or the governmental agency having code enforcement
  101  authority for the structure.
  102         Section 5. Section 627.7152, Florida Statutes, is created
  103  to read:
  104         627.7152 Assignment of residential homeowner’s property
  105  insurance post-loss benefits; prelitigation invoice; offer of
  106  settlement; annual reporting.—
  107         (1)An agreement to assign post-loss benefits of a
  108  residential homeowner’s property insurance policy is not valid
  109  unless the agreement:
  110         (a)Is in writing;
  111         (b)Is limited to claims for work performed or work to be
  112  performed by the assignee;
  113         (c)Contains an accurate and up-to-date statement of the
  114  scope of work to be performed;
  115         (d)Allows the insured to rescind the assignment within 7
  116  days after the execution of the assignment without a penalty or
  117  fee;
  118         (e) Prohibits any check or mortgage processing fee or
  119  administrative fee;
  120         (f)Provides that the insured or the insurer may be
  121  responsible for payment for any work performed before the
  122  rescission of the assignment; and
  123         (g)Contains a provision, in 14-point boldfaced type, which
  124  allows the insured to rescind the agreement within 7 days after
  125  execution of the assignment, and with a notice that if the
  126  assignment is rescinded, the homeowner is responsible to pay for
  127  the work done up to the date of the rescission and that the
  128  homeowner is not otherwise responsible to pay for the work
  129  covered by the assignment.
  130         (2)(a) The assignee shall provide a copy of the assignment
  131  agreement to the insurer within 5 days after execution of the
  132  agreement if the insurer has a facsimile number and
  134  ================= T I T L E  A M E N D M E N T ================
  135  And the title is amended as follows:
  136         Delete lines 2 - 17
  137  and insert:
  138         An act relating to insurance; amending s. 627.409,
  139         F.S.; adding and revising conditions under which
  140         certain misrepresentations, omissions, concealments of
  141         fact, or incorrect statements may prevent recovery
  142         under an insurance policy or annuity contract;
  143         amending s. 627.422, F.S.; providing that personal
  144         lines residential and commercial residential property
  145         insurance policies may not restrict the assignment of
  146         post-loss benefits; amending s. 627.7011, F.S.;
  147         prohibiting specified acts by insurers relating to
  148         certain losses under homeowners’ insurance policies;
  149         amending s. 627.706, F.S.; revising the definition of
  150         the term “catastrophic ground cover collapse” for
  151         purposes of certain provisions relating to sinkhole
  152         coverage in property insurance contracts; creating s.
  153         627.7152, F.S.; providing that