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

       The Committee on Judiciary (Thurston) recommended the following:
    1         Senate Substitute for Amendment (566142) (with title
    2  amendment)
    4         Delete lines 52 - 157
    5  and insert:
    6         Section 1. Section 627.409, Florida Statutes, is amended to
    7  read:
    8         627.409 Representations in applications; warranties.—
    9         (1) Any statement or description made by or on behalf of an
   10  insured or annuitant in an application for an insurance policy
   11  or annuity contract, or in negotiations for a policy or
   12  contract, is a representation and not a warranty. Except as
   13  provided in subsection (3), a misrepresentation, omission,
   14  concealment of fact, or incorrect statement may prevent recovery
   15  under the contract or policy only if the misrepresentation,
   16  omission, concealment of fact, or incorrect statement directly
   17  relates to the cause of the claim being made and any of the
   18  following apply:
   19         (a) The misrepresentation, omission, concealment, or
   20  statement is fraudulent or is material to the acceptance of the
   21  risk or to the hazard assumed by the insurer.
   22         (b) If the true facts relative to the loss claimed had been
   23  known to the insurer pursuant to a policy requirement or other
   24  requirement, the insurer in good faith would not have:
   25         1. Issued the policy or contract;, would not have
   26         2. Issued the policy or contract it at a the same premium
   27  rate at least 20 percent higher than the rate actually charged;,
   28  would not have
   29         3. Issued a policy or contract in as large an amount;, or
   30         4.would not have Provided coverage with respect to the
   31  hazard resulting in the loss.
   32         (2) A breach or violation by the insured of a warranty,
   33  condition, or provision of a wet marine or transportation
   34  insurance policy, contract of insurance, endorsement, or
   35  application does not void the policy or contract, or constitute
   36  a defense to a loss thereon, unless such breach or violation
   37  increased the hazard by any means within the control of the
   38  insured.
   39         (3) For residential property insurance, if a policy or
   40  contract has been in effect for more than 90 days, a claim filed
   41  by the insured cannot be denied based on credit information
   42  available in public records.
   43         (4) This section may not be construed to allow fraudulent
   44  insurance claims as described in s. 817.234.
   45         Section 2. Section 627.422, Florida Statutes, is amended to
   46  read:
   47         627.422 Assignment of policies or post-loss benefits.—A
   48  policy may be assignable, or not assignable, as provided by its
   49  terms.
   50         (1) LIFE OR HEALTH INSURANCE POLICIES.—Subject to its terms
   51  relating to assignability, any life or health insurance policy
   52  under the terms of which the beneficiary may be changed upon the
   53  sole request of the policyowner may be assigned either by pledge
   54  or transfer of title, by an assignment executed by the
   55  policyowner alone and delivered to the insurer, whether or not
   56  the pledgee or assignee is the insurer. Any such assignment
   57  shall entitle the insurer to deal with the assignee as the owner
   58  or pledgee of the policy in accordance with the terms of the
   59  assignment, until the insurer has received at its home office
   60  written notice of termination of the assignment or pledge or
   61  written notice by or on behalf of some other person claiming
   62  some interest in the policy in conflict with the assignment.
   64  POLICIES.-A personal lines residential property insurance policy
   65  or a commercial residential property insurance policy may not
   66  restrict the assignment of post-loss benefits.
   67         Section 3. Paragraph (a) of subsection (3) of section
   68  627.7011, Florida Statutes, is amended to read:
   69         627.7011 Homeowners’ policies; offer of replacement cost
   70  coverage and law and ordinance coverage.—
   71         (3) In the event of a loss for which a dwelling or personal
   72  property is insured on the basis of replacement costs:
   73         (a) For a dwelling:,
   74         1. The insurer must initially pay at least the actual cash
   75  value of the insured loss, less any applicable deductible. The
   76  insurer shall pay any remaining amounts necessary to perform
   77  such repairs as work is performed and expenses are incurred. If
   78  a total loss of a dwelling occurs, the insurer shall pay the
   79  replacement cost coverage without reservation or holdback of any
   80  depreciation in value, pursuant to s. 627.702.
   81         2. The insurer may not require that a particular vendor
   82  make repairs to such dwelling.
   83         3. The insurer may not, unless expressly requested by the
   84  insured, recommend or suggest a particular vendor for repairs to
   85  be made to such dwelling.
   86         Section 4. Section 627.7152, Florida Statutes, is created
   87  to read:
   88         627.7152 Assignment of residential homeowner’s property
   89  insurance post-loss benefits; prelitigation invoice; offer of
   90  settlement; annual reporting.—
   91         (1)An agreement to assign post-loss benefits of a
   92  residential homeowner’s property insurance policy is not valid
   93  unless the agreement:
   94         (a)Is in writing;
   95         (b)Is limited to claims for work performed or work to be
   96  performed by the assignee;
   97         (c)Contains an accurate and up-to-date statement of the
   98  scope of work to be performed;
   99         (d)Allows the insured to rescind the assignment within 7
  100  days after the execution of the assignment without a penalty or
  101  fee;
  102         (e) Prohibits any check or mortgage processing fee or
  103  administrative fee;
  104         (f)Provides that the insured or the insurer may be
  105  responsible for payment for any work performed before the
  106  rescission of the assignment; and
  107         (g)Contains a provision, in 14-point boldfaced type, which
  108  allows the insured to rescind the agreement within 7 days after
  109  execution of the assignment, and with a notice that if the
  110  assignment is rescinded, the homeowner is responsible to pay for
  111  the work done up to the date of the rescission and that the
  112  homeowner is not otherwise responsible to pay for the work
  113  covered by the assignment.
  114         (2)(a) The assignee shall provide a copy of the assignment
  115  agreement to the insurer within 5 days after execution of the
  116  agreement if the insurer has a facsimile number and
  118  ================= T I T L E  A M E N D M E N T ================
  119  And the title is amended as follows:
  120         Delete lines 2 - 11
  121  and insert:
  122         An act relating to insurance; amending s. 627.409,
  123         F.S.; adding and revising conditions under which
  124         certain misrepresentations, omissions, concealments of
  125         fact, or incorrect statements may prevent recovery
  126         under an insurance policy or annuity contract;
  127         providing construction; amending s. 627.422, F.S.;
  128         providing that