Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 122
       
       
       
       
       
       
                                Ì6724467Î672446                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  03/04/2019           .                                
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       The Committee on Banking and Insurance (Thurston) recommended
       the following:
       
    1         Senate Substitute for Amendment (487740) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Section 627.7152, Florida Statutes, is created
    7  to read:
    8         627.7152 Assignment of residential homeowner’s property
    9  insurance post-loss benefits.—
   10         (1) An agreement to assign post-loss benefits of a
   11  residential homeowner’s property insurance policy is not valid
   12  unless the agreement:
   13         (a) Is in writing;
   14         (b) Is limited to claims for work performed or work to be
   15  performed by the assignee to protect or repair property from
   16  damage, including, but not limited to, work to stabilize,
   17  protect, repair, or improve such property;
   18         (c) Allows the insured to rescind the assignment within 3
   19  days after the execution of the assignment without a penalty or
   20  fee;
   21         (d) Contains the following notice in 14-point bold type to
   22  the consumer:
   23  
   24         “WARNING: IF YOU HAVE RESIDENTIAL HOMEOWNERS PROPERTY
   25         INSURANCE, YOU MAY BE AGREEING TO GIVE UP CERTAIN
   26         RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY TO A THIRD
   27         PARTY. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE
   28         SIGNING IT. WITH THE EXCEPTION OF PAYMENT FOR WORK
   29         ALREADY PERFORMED BY A SERVICE PROVIDER TO PREVENT
   30         ADDITIONAL DAMAGE FROM OCCURRING TO THE PROPERTY
   31         RESULTING FROM EMERGENCY OR URGENT CIRCUMSTANCES, YOU
   32         HAVE THE RIGHT TO RESCIND THIS AGREEMENT WITHOUT
   33         PENALTY WITHIN 3 BUSINESS DAYS AFTER THE DATE THIS
   34         AGREEMENT IS EXECUTED. IF THE ASSIGNMENT IS RESCINDED,
   35         YOU ARE RESPONSIBLE TO PAY FOR THE WORK DONE UP TO THE
   36         DATE OF THE RESCISSION AND YOU ARE NOT OTHERWISE
   37         RESPONSIBLE TO PAY FOR THE WORK COVERED BY THE
   38         ASSIGNMENT. IF WORK IS BEING PERFORMED AS A RESULT OF
   39         DAMAGES CAUSED BY AN EVENT FOR WHICH THE GOVERNOR HAS
   40         DECLARED A STATE OF EMERGENCY AND IS WITHIN 1 YEAR
   41         AFTER SUCH DECLARATION, THE 3 BUSINESS DAY PERIOD TO
   42         RESCIND THIS AGREEMENT IS EXTENDED TO 5 BUSINESS DAYS.
   43         THIS AGREEMENT DOES NOT CHANGE YOUR DUTIES UNDER YOUR
   44         PROPERTY INSURANCE POLICY, SUCH AS PROMPTLY NOTIFYING
   45         YOUR INSURANCE COMPANY OF A LOSS AND MITIGATING YOUR
   46         PROPERTY FROM FURTHER DAMAGE.
   47  
   48         (2) The assignee shall provide a copy of the assignment
   49  agreement to the insurer within 5 days after execution of the
   50  agreement, or within 48 hours after beginning nonemergency work,
   51  whichever is earlier, if the insurer has a facsimile number and
   52  email address on its website designated for the delivery of such
   53  documents. This assignment agreement must be accompanied by a
   54  written estimate of the work to be done, with unit prices
   55  indicated where appropriate, and the basis for calculating lump
   56  sum fees if unit prices are inappropriate. The estimate must be
   57  timely updated if conditions require a change in scope. The
   58  failure to comply with this requirement constitutes a defense to
   59  any payment obligation under the policy or the assignment, if
   60  the insurer can establish prejudice resulting from the failure.
   61         (3)Before emergency work commences, the remediator,
   62  contractor, or other service provider must inform the homeowner
   63  in writing of the obvious conditions that require priority
   64  repairs and mitigation, including, but not limited to, flooding
   65  or standing water, exposed electrical wiring, a hole or breach
   66  in the roof or an exterior wall, or significant foundation
   67  cracks.
   68         (4)The insurer may inspect the property at any time. If
   69  the insurer fails to attempt in good faith to do so within 5
   70  days after receiving a copy of the assignment agreement
   71  described in subsection (2) and to promptly deliver to the
   72  assignee written notice of any perceived deficiency in the
   73  assignee’s notice or the work being performed, the failure may
   74  be raised to estop the insurer from asserting that work done was
   75  not reasonably necessary or that the notice was insufficient to
   76  comply with this section.
   77         (5) Notwithstanding any other law, the acceptance by a
   78  person of any assignment agreement constitutes a waiver by the
   79  assignee or transferee, and any subcontractor of the assignee or
   80  transferee, of any and all claims against all named insureds for
   81  payment arising from the specified loss, except that all named
   82  insureds remain responsible for the payment of any deductible
   83  amount provided for by the terms of the insurance policy and for
   84  the cost of any betterment ordered by all named insureds. This
   85  waiver remains in effect notwithstanding any subsequent
   86  determination that the assignment agreement is invalid or
   87  notwithstanding the rescission of the assignment agreement by
   88  all named insureds, except that the assignee is entitled to
   89  payment for the reasonable cost of any contracted work performed
   90  before the assignor rescinded the assignment agreement.
   91         Section 2. This act shall take effect July 1, 2019.
   92  
   93  ================= T I T L E  A M E N D M E N T ================
   94  And the title is amended as follows:
   95         Delete everything before the enacting clause
   96  and insert:
   97                        A bill to be entitled                      
   98         An act relating to assignment of residential
   99         homeowners property insurance post-loss benefits;
  100         creating s. 627.7152, F.S.; providing that an
  101         agreement to assign post-loss benefits of a
  102         residential homeowner’s property insurance policy is
  103         not valid unless specified conditions are met;
  104         requiring the assignee to provide a copy of the
  105         assignment agreement and a specified written estimate
  106         to the insurer within a specified timeframe; requiring
  107         the estimate to be timely updated if conditions
  108         require a change in scope; providing construction
  109         relating to failure to comply with such requirement;
  110         requiring service providers to inform homeowners of
  111         certain conditions before commencing emergency work;
  112         authorizing insurers to inspect the property at any
  113         time; providing construction if an insurer fails to
  114         attempt in good faith to inspect the property within a
  115         certain timeframe; providing that a person’s
  116         acceptance of an assignment agreement constitutes a
  117         waiver by the assignee or transferee, or any
  118         subcontractor of the assignee or transferee, of
  119         certain claims against named insureds, except under
  120         specified circumstances; providing construction
  121         relating to such waiver; providing an effective date.