Florida Senate - 2021 CS for SB 1598
By the Committee on Banking and Insurance; and Senator Gruters
597-02952-21 20211598c1
1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 501.0051, F.S.; prohibiting consumer reporting
4 agencies from charging to reissue or provide a new
5 unique personal identifier to a consumer for the
6 removal of a security freeze; amending s. 624.307,
7 F.S.; revising a requirement for persons licensed or
8 authorized by the Department of Financial Services or
9 the Office of Insurance Regulation to respond to the
10 department’s Division of Consumer Services regarding
11 consumer complaints; amending s. 624.501, F.S.;
12 deleting a fee for adjusting firm licenses; amending
13 s. 626.015, F.S.; defining the term “claims
14 adjusting”; amending s. 626.112, F.S.; deleting an
15 obsolete provision; prohibiting unlicensed activity by
16 an adjusting firm; providing an exemption; providing
17 an exemption from licensure for branch firms that meet
18 certain criteria; providing an administrative penalty
19 for failing to apply for certain licensure; providing
20 a criminal penalty for aiding or abetting unlicensed
21 activity; amending s. 626.602, F.S.; authorizing the
22 department to disapprove the use of insurance agency
23 names containing the words “Medicare” or “Medicaid”;
24 providing an exception for certain insurance agencies
25 for a certain period; providing for expiration of
26 certain licenses on a certain date; amending s.
27 626.621, F.S.; adding grounds on which the department
28 may take certain actions against a license,
29 appointment, or application of certain insurance
30 representatives; amending s. 626.7315, F.S.;
31 conforming a cross-reference; amending ss. 626.782 and
32 626.783, F.S.; revising the definitions of the terms
33 “industrial class insurer” and “ordinary-combination
34 class insurer,” respectively, to conform to changes
35 made by the act; amending s. 626.7845, F.S.;
36 conforming a cross-reference; repealing s. 626.796,
37 F.S., relating to the representation of multiple
38 insurers in the same industrial debit territory;
39 amending s. 626.8305, F.S.; conforming a cross
40 reference; amending s. 626.854, F.S.; revising the
41 timeframes in which an insured or a claimant may
42 cancel a public adjuster’s contract to adjust a claim
43 without penalty or obligation; requiring that public
44 adjuster’s contracts include a specified disclosure;
45 specifying requirements for written estimates of loss
46 provided by public adjusters to claimants or insureds;
47 prohibiting certain contractors from soliciting
48 insureds to file insurance claims under certain
49 circumstances; revising services a person is
50 prohibited from performing unless the person meets
51 specified requirements; authorizing the department to
52 take administrative actions and impose fines against
53 persons performing specified activities without
54 licensure; amending s. 626.916, F.S.; revising
55 disclosure requirements for certain classes of
56 insurance before being eligible for export under the
57 Surplus Lines Law; amending s. 626.9541, F.S.; adding
58 certain acts or practices to the definition of
59 sliding; amending s. 626.9741, F.S.; requiring an
60 insurer to include certain additional information when
61 providing an applicant or insured with certain credit
62 report or score information; amending s. 626.9953,
63 F.S.; correcting a cross-reference; amending ss.
64 626.9957 and 627.062, F.S.; conforming cross
65 references; amending s. 627.502, F.S.; prohibiting
66 life insurers from writing new policies of industrial
67 life insurance beginning on a certain date; making
68 technical changes; amending s. 627.70131, F.S.;
69 providing that a communication made to or by an
70 insurer’s representative, rather than to or by an
71 insurer’s agent, constitutes communication to or by
72 the insurer; revising the timeframe for insurers to
73 begin certain investigations; requiring an insurer
74 assigned licensed adjuster to provide the policyholder
75 with certain information in certain investigations;
76 requiring insurers to maintain certain records and
77 provide certain lists upon request; requiring insurers
78 to include specified notices when providing
79 preliminary or partial damage estimates or claim
80 payments; providing applicability; conforming
81 provisions to changes made by the act; creating s.
82 627.7031, F.S.; prohibiting foreign venue clauses in
83 property insurance policies; providing applicability;
84 amending s. 627.7142, F.S.; revising information
85 contained in the Homeowner Claims Bill of Rights;
86 conforming provisions to changes made by the act;
87 amending s. 631.57, F.S.; deleting a deductible on the
88 obligation of the Florida Insurance Guaranty
89 Association, Incorporated, as to certain covered
90 claims; amending s. 631.904, F.S.; revising the
91 definition of the term “covered claim”; deleting a
92 requirement that a policy be in force on the date of
93 the final order of liquidation; providing effective
94 dates.
95
96 Be It Enacted by the Legislature of the State of Florida:
97
98 Section 1. Paragraph (b) of subsection (9) of section
99 501.0051, Florida Statutes, is amended to read:
100 501.0051 Protected consumer report security freeze.—
101 (9)
102 (b) A consumer reporting agency may not charge a fee to a
103 reasonable fee, not to exceed $10, if the representative fails
104 to retain the original unique personal identifier provided by
105 the consumer reporting agency and the agency must reissue the
106 unique personal identifier or to provide a new unique personal
107 identifier to the consumer representative.
108 Section 2. Paragraph (b) of subsection (10) of section
109 624.307, Florida Statutes, is amended to read:
110 624.307 General powers; duties.—
111 (10)
112 (b) Any person licensed or issued a certificate of
113 authority by the department or the office shall respond, in
114 writing, to the division within 20 days after receipt of a
115 written request for documents and information from the division
116 concerning a consumer complaint. The response must address the
117 issues and allegations raised in the complaint and include any
118 requested documents concerning the consumer complaint not
119 subject to attorney-client or work-product privilege. The
120 division may impose an administrative penalty for failure to
121 comply with this paragraph of up to $2,500 per violation upon
122 any entity licensed by the department or the office and $250 for
123 the first violation, $500 for the second violation, and up to
124 $1,000 for the third or subsequent violation upon any individual
125 licensed by the department or the office.
126 Section 3. Subsection (20) of section 624.501, Florida
127 Statutes, is amended to read:
128 624.501 Filing, license, appointment, and miscellaneous
129 fees.—The department, commission, or office, as appropriate,
130 shall collect in advance, and persons so served shall pay to it
131 in advance, fees, licenses, and miscellaneous charges as
132 follows:
133 (20) Adjusting firm, original or renewal 3-year
134 license...................................................$60.00
135 Section 4. Present subsections (6) through (21) of section
136 626.015, Florida Statutes, are redesignated as subsections (7)
137 through (22), respectively, and a new subsection (6) is added to
138 that section, to read:
139 626.015 Definitions.—As used in this part:
140 (6) “Claims adjusting” means directly or indirectly
141 attempting or undertaking to ascertain and determine the amount
142 of a claim, loss, or damage payable under an insurance contract
143 or undertaking to negotiate or effect settlement of a claim,
144 loss, or damage under an insurance contract, if such action
145 results in payment to or receipt of money, commission, or any
146 other thing of value by the party or parties rendering such
147 service or persons affiliated with such party or parties. Claims
148 adjusting also includes soliciting claims adjusting services as
149 described in this chapter or soliciting an insured or
150 policyholder to file an insurance claim. Claims adjusting does
151 not include:
152 (a) Paid services as a spokesperson used as part of a
153 written or an electronic advertisement;
154 (b) Paid services as a photographer or videographer used to
155 capture images of damage;
156 (c) Paid services to inventory personal property or
157 business personal property; or
158 (d) Discussion or explanation of a bid for construction or
159 repair services with a property owner or the insurer of such
160 property by a contractor licensed pursuant to part I of chapter
161 489 or a subcontractor for a licensed contractor.
162 Section 5. Present subsection (9) of section 626.112,
163 Florida Statutes, is redesignated as subsection (10) and
164 amended, a new subsection (9) is added to that section, and
165 paragraph (d) of subsection (7) of that section is amended, to
166 read:
167 626.112 License and appointment required; agents, customer
168 representatives, adjusters, insurance agencies, service
169 representatives, managing general agents, insurance adjusting
170 firms.—
171 (7)
172 (d) Effective October 1, 2015, the department must
173 automatically convert the registration of an approved registered
174 insurance agency to an insurance agency license.
175 (9)(a) An individual, firm, partnership, corporation,
176 association, or other entity may not act in its own name or
177 under a trade name, directly or indirectly, as an adjusting firm
178 unless it complies with s. 626.8696 with respect to possessing
179 an adjusting firm license for each place of business at which it
180 engages in an activity that may be performed only by a licensed
181 insurance adjuster. However, an adjusting firm that is owned and
182 operated by a single licensed adjuster conducting business in
183 his or her individual name and not employing or otherwise using
184 the services of or appointing other licensees is exempt from the
185 adjusting firm licensing requirements of this subsection.
186 (b) A branch place of business that is established by a
187 licensed adjusting firm is considered a branch firm and is not
188 required to be licensed if:
189 1. It transacts business under the same name and federal
190 tax identification number as the licensed adjusting firm;
191 2. It has designated with the department a primary adjuster
192 operating the location as required by s. 626.8695; and
193 3. The address and telephone number of the branch location
194 have been submitted to the department for inclusion in the
195 licensing record of the licensed adjusting firm within 30 days
196 after insurance transactions begin at the branch location.
197 (c) If an adjusting firm is required to be licensed but
198 fails to apply for licensure in accordance with this section,
199 the department must impose an administrative penalty of up to
200 $10,000 on the firm.
201 (10)(9) Any person who knowingly transacts insurance or
202 otherwise engages in insurance activities in this state without
203 a license in violation of this section or who knowingly aids or
204 abets an unlicensed person in transacting insurance or otherwise
205 engaging in insurance activities in this state without a license
206 commits a felony of the third degree, punishable as provided in
207 s. 775.082, s. 775.083, or s. 775.084.
208 Section 6. Subsection (4) is added to section 626.602,
209 Florida Statutes, to read:
210 626.602 Insurance agency names; disapproval.—The department
211 may disapprove the use of any true or fictitious name, other
212 than the bona fide natural name of an individual, by any
213 insurance agency on any of the following grounds:
214 (4) The name contains the word “Medicare” or “Medicaid.” An
215 insurance agency whose name contains the word “Medicare” or
216 “Medicaid” but which is licensed as of July 1, 2021, may
217 continue to use that name until June 30, 2023, provided that the
218 agency’s license remains valid. If the agency’s license expires
219 or is suspended or revoked, the agency may not be relicensed
220 using that name. Licenses for agencies with names containing
221 either of these words automatically expire on July 1, 2023,
222 unless these words are removed from the name.
223 Section 7. Subsections (16) and (17) are added to section
224 626.621, Florida Statutes, to read:
225 626.621 Grounds for discretionary refusal, suspension, or
226 revocation of agent’s, adjuster’s, customer representative’s,
227 service representative’s, or managing general agent’s license or
228 appointment.—The department may, in its discretion, deny an
229 application for, suspend, revoke, or refuse to renew or continue
230 the license or appointment of any applicant, agent, adjuster,
231 customer representative, service representative, or managing
232 general agent, and it may suspend or revoke the eligibility to
233 hold a license or appointment of any such person, if it finds
234 that as to the applicant, licensee, or appointee any one or more
235 of the following applicable grounds exist under circumstances
236 for which such denial, suspension, revocation, or refusal is not
237 mandatory under s. 626.611:
238 (16) Taking an action that allows the personal financial or
239 medical information of a consumer or customer to be made
240 available or accessible to the general public, regardless of the
241 format in which the record is stored.
242 (17) Initiating in-person or telephone solicitation after 9
243 p.m. or before 8 a.m. local time of the prospective customer
244 unless requested by the prospective customer.
245 Section 8. Section 626.7315, Florida Statutes, is amended
246 to read:
247 626.7315 Prohibition against the unlicensed transaction of
248 general lines insurance.—With respect to any line of authority
249 as defined in s. 626.015(8) s. 626.015(7), no individual shall,
250 unless licensed as a general lines agent:
251 (1) Solicit insurance or procure applications therefor;
252 (2) In this state, receive or issue a receipt for any money
253 on account of or for any insurer, or receive or issue a receipt
254 for money from other persons to be transmitted to any insurer
255 for a policy, contract, or certificate of insurance or any
256 renewal thereof, even though the policy, certificate, or
257 contract is not signed by him or her as agent or representative
258 of the insurer, except as provided in s. 626.0428(1);
259 (3) Directly or indirectly represent himself or herself to
260 be an agent of any insurer or as an agent, to collect or forward
261 any insurance premium, or to solicit, negotiate, effect,
262 procure, receive, deliver, or forward, directly or indirectly,
263 any insurance contract or renewal thereof or any endorsement
264 relating to an insurance contract, or attempt to effect the
265 same, of property or insurable business activities or interests,
266 located in this state;
267 (4) In this state, engage or hold himself or herself out as
268 engaging in the business of analyzing or abstracting insurance
269 policies or of counseling or advising or giving opinions, other
270 than as a licensed attorney at law, relative to insurance or
271 insurance contracts, for fee, commission, or other compensation,
272 other than as a salaried bona fide full-time employee so
273 counseling and advising his or her employer relative to the
274 insurance interests of the employer and of the subsidiaries or
275 business affiliates of the employer;
276 (5) In any way, directly or indirectly, make or cause to be
277 made, or attempt to make or cause to be made, any contract of
278 insurance for or on account of any insurer;
279 (6) Solicit, negotiate, or in any way, directly or
280 indirectly, effect insurance contracts, if a member of a
281 partnership or association, or a stockholder, officer, or agent
282 of a corporation which holds an agency appointment from any
283 insurer; or
284 (7) Receive or transmit applications for suretyship, or
285 receive for delivery bonds founded on applications forwarded
286 from this state, or otherwise procure suretyship to be effected
287 by a surety insurer upon the bonds of persons in this state or
288 upon bonds given to persons in this state.
289 Section 9. Section 626.782, Florida Statutes, is amended to
290 read:
291 626.782 “Industrial class insurer” defined.—An “industrial
292 class insurer” is an insurer collecting premiums on policies of
293 writing industrial life insurance, as defined in s. 627.502,
294 written before July 1, 2021, and as to such insurance, operates
295 under a system of collecting a debit by its agent.
296 Section 10. Section 626.783, Florida Statutes, is amended
297 to read:
298 626.783 “Ordinary-combination class insurer” defined.—An
299 “ordinary-combination class insurer” is an insurer writing both
300 ordinary class insurance and collecting premiums on existing
301 industrial life class insurance as defined by s. 627.502.
302 Section 11. Subsection (2) of section 626.7845, Florida
303 Statutes, is amended to read:
304 626.7845 Prohibition against unlicensed transaction of life
305 insurance.—
306 (2) Except as provided in s. 626.112(6), with respect to
307 any line of authority specified in s. 626.015(13) s.
308 626.015(12), an individual may not, unless licensed as a life
309 agent:
310 (a) Solicit insurance or annuities or procure applications;
311 (b) In this state, engage or hold himself or herself out as
312 engaging in the business of analyzing or abstracting insurance
313 policies or of counseling or advising or giving opinions to
314 persons relative to insurance or insurance contracts, unless the
315 individual is:
316 1. A consulting actuary advising insurers;
317 2. An employee of a labor union, association, employer, or
318 other business entity, or the subsidiaries and affiliates of
319 each, who counsels and advises such entity or entities relative
320 to their interests and those of their members or employees under
321 insurance benefit plans; or
322 3. A trustee advising a settlor, a beneficiary, or a person
323 regarding his or her interests in a trust, relative to insurance
324 benefit plans; or
325 (c) In this state, from this state, or with a resident of
326 this state, offer or attempt to negotiate on behalf of another
327 person a viatical settlement contract as defined in s. 626.9911.
328 Section 12. Section 626.796, Florida Statutes, is repealed.
329 Section 13. Section 626.8305, Florida Statutes, is amended
330 to read:
331 626.8305 Prohibition against the unlicensed transaction of
332 health insurance.—Except as provided in s. 626.112(6), with
333 respect to any line of authority specified in s. 626.015(9) s.
334 626.015(8), an individual may not, unless licensed as a health
335 agent:
336 (1) Solicit insurance or procure applications; or
337 (2) In this state, engage or hold himself or herself out as
338 engaging in the business of analyzing or abstracting insurance
339 policies or of counseling or advising or giving opinions to
340 persons relative to insurance contracts, unless the individual
341 is:
342 (a) A consulting actuary advising insurers;
343 (b) An employee of a labor union, association, employer, or
344 other business entity, or the subsidiaries and affiliates of
345 each, who counsels and advises such entity or entities relative
346 to their interests and those of their members or employees under
347 insurance benefit plans; or
348 (c) A trustee advising a settlor, a beneficiary, or a
349 person regarding his or her interests in a trust, relative to
350 insurance benefit plans.
351 Section 14. Subsections (6), (11), (15), and (19) of
352 section 626.854, Florida Statutes, are amended, and subsection
353 (20) is added to that section, to read:
354 626.854 “Public adjuster” defined; prohibitions.—The
355 Legislature finds that it is necessary for the protection of the
356 public to regulate public insurance adjusters and to prevent the
357 unauthorized practice of law.
358 (6) An insured or claimant may cancel a public adjuster’s
359 contract to adjust a claim without penalty or obligation within
360 10 calendar 3 business days after the date on which the contract
361 is executed or within 3 business days after the date on which
362 the insured or claimant has notified the insurer of the claim,
363 whichever is later. The public adjuster’s contract must contain
364 the following language in minimum 18-point bold type: “You, the
365 insured, may cancel this contract for any reason without penalty
366 or obligation to you within 10 days after the date of this
367 contract by providing notice to ...(name of public adjuster)...,
368 submitted in writing and sent by certified mail, return receipt
369 requested, or other form of mailing that provides proof thereof,
370 at the address specified in the contract disclose to the insured
371 or claimant his or her right to cancel the contract and advise
372 the insured or claimant that notice of cancellation must be
373 submitted in writing and sent by certified mail, return receipt
374 requested, or other form of mailing that provides proof thereof,
375 to the public adjuster at the address specified in the contract;
376 provided, during any state of emergency as declared by the
377 Governor and for 1 year after the date of loss, the insured or
378 claimant has 5 business days after the date on which the
379 contract is executed to cancel a public adjuster’s contract.
380 (11) Each public adjuster must provide to the claimant or
381 insured a written estimate of the loss to assist in the
382 submission of a proof of loss or any other claim for payment of
383 insurance proceeds within 60 days after the date of the
384 contract. The written estimate must include an itemized, per
385 unit estimate of the repairs, including itemized information on
386 equipment, materials, labor, and supplies, in accordance with
387 accepted industry standards. The public adjuster shall retain
388 such written estimate for at least 5 years and shall make the
389 estimate available to the claimant or insured, the insurer, and
390 the department upon request.
391 (15) A licensed contractor under part I of chapter 489, or
392 a subcontractor, may not adjust a claim on behalf of an insured,
393 or solicit an insured to file a claim, unless licensed and
394 compliant as a public adjuster under this chapter. However, the
395 contractor may discuss or explain a bid for construction or
396 repair of covered property with the residential property owner
397 who has suffered loss or damage covered by a property insurance
398 policy, or the insurer of such property, if the contractor is
399 doing so for the usual and customary fees applicable to the work
400 to be performed as stated in the contract between the contractor
401 and the insured.
402 (19) Except as otherwise provided in this chapter, no
403 person, except an attorney at law or a public adjuster, may for
404 money, commission, or any other thing of value, directly or
405 indirectly:
406 (a) Prepare, complete, or file an insurance claim for an
407 insured or a third-party claimant;
408 (b) Act on behalf of or aid an insured or a third-party
409 claimant in negotiating for or effecting the settlement of a
410 claim for loss or damage covered by an insurance contract;
411 (c) Advertise for employment as a public adjuster; or
412 (d) Solicit, advertise, advise, assist, investigate, or
413 adjust a claim on behalf of a public adjuster, an insured, or a
414 third-party claimant.
415 (20) The department may take administrative actions and
416 impose fines against any persons performing claims adjusting as
417 defined in s. 626.015(6) or any other services as described in
418 this section without the licensure required under this section
419 and s. 626.112.
420 Section 15. Effective January 1, 2022, subsection (3) of
421 section 626.916, Florida Statutes, is amended, and paragraph (f)
422 is added to subsection (1) of that section, to read:
423 626.916 Eligibility for export.—
424 (1) No insurance coverage shall be eligible for export
425 unless it meets all of the following conditions:
426 (f) The insured has signed or otherwise provided documented
427 acknowledgment of a disclosure in substantially the following
428 form: “You are agreeing to place coverage in the surplus lines
429 market. Coverage may be available in the admitted market.
430 Persons insured by surplus lines carriers are not protected
431 under the Florida Insurance Guaranty Act with respect to any
432 right of recovery for the obligation of an insolvent unlicensed
433 insurer.”
434 (3)(a) Subsection (1) does not apply to wet marine and
435 transportation or aviation risks that which are subject to s.
436 626.917.
437 (b) Paragraphs (1)(a)-(d) do not apply to classes of
438 insurance which are subject to s. 627.062(3)(d)1. These classes
439 may be exportable under the following conditions:
440 1. The insurance must be placed only by or through a
441 surplus lines agent licensed in this state;
442 2. The insurer must be made eligible under s. 626.918; and
443 3. The insured has complied with paragraph (1)(f) must sign
444 a disclosure that substantially provides the following: “You are
445 agreeing to place coverage in the surplus lines market. Superior
446 coverage may be available in the admitted market and at a lesser
447 cost. Persons insured by surplus lines carriers are not
448 protected under the Florida Insurance Guaranty Act with respect
449 to any right of recovery for the obligation of an insolvent
450 unlicensed insurer.” If the disclosure notice is signed by the
451 insured, the insured is presumed to have been informed and to
452 know that other coverage may be available, and, with respect to
453 the diligent-effort requirement under subsection (1), there is
454 no liability on the part of, and no cause of action arises
455 against, the retail agent presenting the form.
456 Section 16. Paragraph (z) of subsection (1) of section
457 626.9541, Florida Statutes, is amended to read:
458 626.9541 Unfair methods of competition and unfair or
459 deceptive acts or practices defined.—
460 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
461 ACTS.—The following are defined as unfair methods of competition
462 and unfair or deceptive acts or practices:
463 (z) Sliding.—Sliding is the act or practice of any of the
464 following:
465 1. Representing to the applicant that a specific ancillary
466 coverage or product is required by law in conjunction with the
467 purchase of insurance when such coverage or product is not
468 required.;
469 2. Representing to the applicant that a specific ancillary
470 coverage or product is included in the policy applied for
471 without an additional charge when such charge is required.; or
472 3. Charging an applicant for a specific ancillary coverage
473 or product, in addition to the cost of the insurance coverage
474 applied for, without the informed consent of the applicant.
475 4. Initiating, effectuating, binding, or otherwise issuing
476 a policy of insurance without the prior informed consent of the
477 owner of the property to be insured.
478 5. Mailing, transmitting, or otherwise submitting by any
479 means an invoice for premium payment to a mortgagee or escrow
480 agent, for the purpose of effectuating an insurance policy,
481 without the prior informed consent of the owner of the property
482 to be insured. However, this subparagraph does not apply in
483 cases in which the mortgagee or escrow agent is renewing
484 insurance or issuing collateral protection insurance, as defined
485 in s. 624.6085, pursuant to the mortgage or other pertinent loan
486 documents or communications regarding the property.
487 Section 17. Effective January 1, 2022, subsection (3) of
488 section 626.9741, Florida Statutes, is amended to read:
489 626.9741 Use of credit reports and credit scores by
490 insurers.—
491 (3) An insurer must inform an applicant or insured, in the
492 same medium as the application is taken, that a credit report or
493 score is being requested for underwriting or rating purposes.
494 The notification to the consumer must include the following
495 language: “The Department of Financial Services offers free
496 financial literacy programs to assist you with insurance-related
497 questions, including how credit works and how credit scores are
498 calculated. To learn more, visit www.MyFloridaCFO.com.” An
499 insurer that makes an adverse decision based, in whole or in
500 part, upon a credit report must provide at no charge, a copy of
501 the credit report to the applicant or insured or provide the
502 applicant or insured with the name, address, and telephone
503 number of the consumer reporting agency from which the insured
504 or applicant may obtain the credit report. The insurer must
505 provide notification to the consumer explaining the reasons for
506 the adverse decision. The reasons must be provided in
507 sufficiently clear and specific language so that a person can
508 identify the basis for the insurer’s adverse decision. Such
509 notification shall include a description of the four primary
510 reasons, or such fewer number as existed, which were the primary
511 influences of the adverse decision. The use of generalized terms
512 such as “poor credit history,” “poor credit rating,” or “poor
513 insurance score” does not meet the explanation requirements of
514 this subsection. A credit score may not be used in underwriting
515 or rating insurance unless the scoring process produces
516 information in sufficient detail to permit compliance with the
517 requirements of this subsection. It shall not be deemed an
518 adverse decision if, due to the insured’s credit report or
519 credit score, the insured continues to receive a less favorable
520 rate or placement in a less favorable tier or company at the
521 time of renewal except for renewals or reunderwriting required
522 by this section.
523 Section 18. Subsection (5) of section 626.9953, Florida
524 Statutes, is amended to read:
525 626.9953 Qualifications for registration; application
526 required.—
527 (5) An applicant must submit a set of his or her
528 fingerprints to the department and pay the processing fee
529 established under s. 624.501(23) s. 624.501(24). The department
530 shall submit the applicant’s fingerprints to the Department of
531 Law Enforcement for processing state criminal history records
532 checks and local criminal records checks through local law
533 enforcement agencies and for forwarding to the Federal Bureau of
534 Investigation for national criminal history records checks. The
535 fingerprints shall be taken by a law enforcement agency, a
536 designated examination center, or another department-approved
537 entity. The department may not approve an application for
538 registration as a navigator if fingerprints have not been
539 submitted.
540 Section 19. Subsection (1) of section 626.9957, Florida
541 Statutes, is amended to read:
542 626.9957 Conduct prohibited; denial, revocation, or
543 suspension of registration.—
544 (1) As provided in s. 626.112, only a person licensed as an
545 insurance agent or customer representative may engage in the
546 solicitation of insurance. A person who engages in the
547 solicitation of insurance as described in s. 626.112(1) without
548 such license is subject to the penalties provided under s.
549 626.112(10) s. 626.112(9).
550 Section 20. Subsection (10) of section 627.062, Florida
551 Statutes, is amended to read:
552 627.062 Rate standards.—
553 (10) Any interest paid pursuant to s. 627.70131(7) s.
554 627.70131(5) may not be included in the insurer’s rate base and
555 may not be used to justify a rate or rate change.
556 Section 21. Section 627.502, Florida Statutes, is amended
557 to read:
558 627.502 “Industrial life insurance” defined; reporting;
559 prohibition on new policies after a certain date.—
560 (1) For the purposes of this code, “industrial life
561 insurance” is that form of life insurance written under policies
562 under which premiums are payable monthly or more often, bearing
563 the words “industrial policy” or “weekly premium policy” or
564 words of similar import imprinted upon the policies as part of
565 the descriptive matter, and issued by an insurer that which, as
566 to such industrial life insurance, is operating under a system
567 of collecting a debit by its agent.
568 (2) Every life insurer servicing existing transacting
569 industrial life insurance shall report to the office all annual
570 statement data regarding the exhibit of life insurance,
571 including relevant information for industrial life insurance.
572 (3) Beginning July 1, 2021, a life insurer may not write a
573 new policy of industrial life insurance.
574 Section 22. Effective January 1, 2022, section 627.70131,
575 Florida Statutes, is amended to read:
576 627.70131 Insurer’s duty to acknowledge communications
577 regarding claims; investigation.—
578 (1)(a) Upon an insurer’s receiving a communication with
579 respect to a claim, the insurer shall, within 14 calendar days,
580 review and acknowledge receipt of such communication unless
581 payment is made within that period of time or unless the failure
582 to acknowledge is caused by factors beyond the control of the
583 insurer which reasonably prevent such acknowledgment. If the
584 acknowledgment is not in writing, a notification indicating
585 acknowledgment shall be made in the insurer’s claim file and
586 dated. A communication made to or by a representative an agent
587 of an insurer with respect to a claim shall constitute
588 communication to or by the insurer.
589 (b) As used in this subsection, the term “representative”
590 “agent” means any person to whom an insurer has granted
591 authority or responsibility to receive or make such
592 communications with respect to claims on behalf of the insurer.
593 (c) This subsection does shall not apply to claimants
594 represented by counsel beyond those communications necessary to
595 provide forms and instructions.
596 (2) Such acknowledgment must shall be responsive to the
597 communication. If the communication constitutes a notification
598 of a claim, unless the acknowledgment reasonably advises the
599 claimant that the claim appears not to be covered by the
600 insurer, the acknowledgment must shall provide necessary claim
601 forms, and instructions, including an appropriate telephone
602 number.
603 (3)(a) Unless otherwise provided by the policy of insurance
604 or by law, within 14 10 working days after an insurer receives
605 proof of loss statements, the insurer shall begin such
606 investigation as is reasonably necessary unless the failure to
607 begin such investigation is caused by factors beyond the control
608 of the insurer which reasonably prevent the commencement of such
609 investigation.
610 (b) If such investigation involves a physical inspection of
611 the property, the licensed adjuster assigned by the insurer must
612 provide the policyholder with a printed or electronic document
613 containing his or her name and state adjuster license number.
614 (c) Any subsequent communication with the policyholder
615 regarding the claim must also include the name and license
616 number of the adjuster communicating about the claim.
617 Communication of the adjuster’s name and license number may be
618 included with other information provided to the policyholder.
619 (4) An insurer shall maintain a record or log of each
620 adjuster who communicates with the policyholder as provided in
621 paragraphs (3)(b) and (c) and provide a list of such adjusters
622 to the insured, office, or department upon request.
623 (5) For purposes of this section, the term “insurer” means
624 any residential property insurer.
625 (6)(a) When providing a preliminary or partial estimate of
626 damage regarding a claim, an insurer shall include with the
627 estimate the following statement printed in at least 12-point
628 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
629 EVALUATION OF THE COVERED DAMAGES TO YOUR INSURED PROPERTY AND
630 MAY BE REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU
631 HAVE QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING
632 YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT US.
633 (b) When providing a payment on a claim which is not the
634 full and final payment for the claim, an insurer shall include
635 with the payment the following statement printed in at least 12
636 point bold, uppercase type: WE ARE CONTINUING TO EVALUATE YOUR
637 CLAIM INVOLVING YOUR INSURED PROPERTY AND MAY ISSUE ADDITIONAL
638 PAYMENTS. IF YOU HAVE QUESTIONS, CONCERNS, OR ADDITIONAL
639 INFORMATION REGARDING YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT
640 US.
641 (7)(a)(5)(a) Within 90 days after an insurer receives
642 notice of an initial, reopened, or supplemental property
643 insurance claim from a policyholder, the insurer shall pay or
644 deny such claim or a portion of the claim unless the failure to
645 pay is caused by factors beyond the control of the insurer which
646 reasonably prevent such payment. Any payment of an initial or
647 supplemental claim or portion of such claim made 90 days after
648 the insurer receives notice of the claim, or made more than 15
649 days after there are no longer factors beyond the control of the
650 insurer which reasonably prevented such payment, whichever is
651 later, bears interest at the rate set forth in s. 55.03.
652 Interest begins to accrue from the date the insurer receives
653 notice of the claim. The provisions of this subsection may not
654 be waived, voided, or nullified by the terms of the insurance
655 policy. If there is a right to prejudgment interest, the insured
656 shall select whether to receive prejudgment interest or interest
657 under this subsection. Interest is payable when the claim or
658 portion of the claim is paid. Failure to comply with this
659 subsection constitutes a violation of this code. However,
660 failure to comply with this subsection does not form the sole
661 basis for a private cause of action.
662 (b) Notwithstanding subsection (5) (4), for purposes of
663 this subsection, the term “claim” means any of the following:
664 1. A claim under an insurance policy providing residential
665 coverage as defined in s. 627.4025(1);
666 2. A claim for structural or contents coverage under a
667 commercial property insurance policy if the insured structure is
668 10,000 square feet or less; or
669 3. A claim for contents coverage under a commercial tenant
670 policy if the insured premises is 10,000 square feet or less.
671 (c) This subsection does shall not apply to claims under an
672 insurance policy covering nonresidential commercial structures
673 or contents in more than one state.
674 (8) This section also applies to surplus lines insurers and
675 surplus lines insurance authorized under ss. 626.913-626.937
676 providing residential coverage.
677 Section 23. Section 627.7031, Florida Statutes, is created
678 to read:
679 627.7031 Foreign venue clauses prohibited.—After July 1,
680 2021, a personal residential property insurance policy sold in
681 this state, insuring only real property located in this state,
682 may not require an insured to pursue dispute resolution through
683 litigation, arbitration, or mediation outside this state. This
684 section also applies to surplus lines insurers and surplus lines
685 insurance authorized under ss. 626.913-626.937.
686 Section 24. Effective January 1, 2022, section 627.7142,
687 Florida Statutes, is amended to read:
688 627.7142 Homeowner Claims Bill of Rights.—An insurer
689 issuing a personal lines residential property insurance policy
690 in this state must provide a Homeowner Claims Bill of Rights to
691 a policyholder within 14 days after receiving an initial
692 communication with respect to a claim, unless the claim follows
693 an event that is the subject of a declaration of a state of
694 emergency by the Governor. The purpose of the bill of rights is
695 to summarize, in simple, nontechnical terms, existing Florida
696 law regarding the rights of a personal lines residential
697 property insurance policyholder who files a claim of loss. The
698 Homeowner Claims Bill of Rights is specific to the claims
699 process and does not represent all of a policyholder’s rights
700 under Florida law regarding the insurance policy. The Homeowner
701 Claims Bill of Rights does not create a civil cause of action by
702 any individual policyholder or class of policyholders against an
703 insurer or insurers. The failure of an insurer to properly
704 deliver the Homeowner Claims Bill of Rights is subject to
705 administrative enforcement by the office but is not admissible
706 as evidence in a civil action against an insurer. The Homeowner
707 Claims Bill of Rights does not enlarge, modify, or contravene
708 statutory requirements, including, but not limited to, ss.
709 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does
710 not prohibit an insurer from exercising its right to repair
711 damaged property in compliance with the terms of an applicable
712 policy or ss. 627.7011(5)(e) and 627.702(7). The Homeowner
713 Claims Bill of Rights must state:
714
715 HOMEOWNER CLAIMS
716 BILL OF RIGHTS
717 This Bill of Rights is specific to the claims process
718 and does not represent all of your rights under
719 Florida law regarding your policy. There are also
720 exceptions to the stated timelines when conditions are
721 beyond your insurance company’s control. This document
722 does not create a civil cause of action by an
723 individual policyholder, or a class of policyholders,
724 against an insurer or insurers and does not prohibit
725 an insurer from exercising its right to repair damaged
726 property in compliance with the terms of an applicable
727 policy.
728
729 YOU HAVE THE RIGHT TO:
730 1. Receive from your insurance company an
731 acknowledgment of your reported claim within 14 days
732 after the time you communicated the claim.
733 2. Upon written request, receive from your
734 insurance company within 30 days after you have
735 submitted a complete proof-of-loss statement to your
736 insurance company, confirmation that your claim is
737 covered in full, partially covered, or denied, or
738 receive a written statement that your claim is being
739 investigated.
740 3. Within 90 days, subject to any dual interest
741 noted in the policy, receive full settlement payment
742 for your claim or payment of the undisputed portion of
743 your claim, or your insurance company’s denial of your
744 claim.
745 4. Receive payment of interest, as provided in s.
746 627.70131, Florida Statutes, from your insurance
747 company, which begins accruing from the date your
748 claim is filed if your insurance company does not pay
749 full settlement of your initial, reopened, or
750 supplemental claim or the undisputed portion of your
751 claim or does not deny your claim within 90 days after
752 your claim is filed. The interest, if applicable, must
753 be paid when your claim or undisputed portion of your
754 claim is paid.
755 5. Free mediation of your disputed claim by the
756 Florida Department of Financial Services, Division of
757 Consumer Services, under most circumstances and
758 subject to certain restrictions.
759 6.5. Neutral evaluation of your disputed claim,
760 if your claim is for damage caused by a sinkhole and
761 is covered by your policy.
762 7.6. Contact the Florida Department of Financial
763 Services, Division of Consumer Services’ toll-free
764 helpline for assistance with any insurance claim or
765 questions pertaining to the handling of your claim.
766 You can reach the Helpline by phone at...(toll-free
767 phone number)..., or you can seek assistance online at
768 the Florida Department of Financial Services, Division
769 of Consumer Services’ website at...(website
770 address)....
771
772 YOU ARE ADVISED TO:
773 1. Contact your insurance company before entering
774 into any contract for repairs to confirm any managed
775 repair policy provisions or optional preferred
776 vendors.
777 2. Make and document emergency repairs that are
778 necessary to prevent further damage. Keep the damaged
779 property, if feasible, keep all receipts, and take
780 photographs or video of damage before and after any
781 repairs to provide to your insurer.
782 3. Carefully read any contract that requires you
783 to pay out-of-pocket expenses or a fee that is based
784 on a percentage of the insurance proceeds that you
785 will receive for repairing or replacing your property.
786 4. Confirm that the contractor you choose is
787 licensed to do business in Florida. You can verify a
788 contractor’s license and check to see if there are any
789 complaints against him or her by calling the Florida
790 Department of Business and Professional Regulation.
791 You should also ask the contractor for references from
792 previous work.
793 5. Require all contractors to provide proof of
794 insurance before beginning repairs.
795 6. Take precautions if the damage requires you to
796 leave your home, including securing your property and
797 turning off your gas, water, and electricity, and
798 contacting your insurance company and provide a phone
799 number where you can be reached.
800 Section 25. Paragraph (a) of subsection (1) and subsection
801 (6) of section 631.57, Florida Statutes, are amended to read:
802 631.57 Powers and duties of the association.—
803 (1) The association shall:
804 (a)1. Be obligated to the extent of the covered claims
805 existing:
806 a. Prior to adjudication of insolvency and arising within
807 30 days after the determination of insolvency;
808 b. Before the policy expiration date if less than 30 days
809 after the determination; or
810 c. Before the insured replaces the policy or causes its
811 cancellation, if she or he does so within 30 days of the
812 determination.
813 2. The obligation under subparagraph 1. includes only the
814 amount of each covered claim which is in excess of $100 and is
815 less than $300,000, except that policies providing coverage for
816 homeowner’s insurance must shall provide for an additional
817 $200,000 for the portion of a covered claim which relates only
818 to the damage to the structure and contents.
819 3.a. Notwithstanding subparagraph 2., the obligation under
820 subparagraph 1. for policies covering condominium associations
821 or homeowners’ associations, which associations have a
822 responsibility to provide insurance coverage on residential
823 units within the association, includes shall include that amount
824 of each covered property insurance claim which is less than
825 $200,000 multiplied by the number of condominium units or other
826 residential units; however, as to homeowners’ associations, this
827 sub-subparagraph applies only to claims for damage or loss to
828 residential units and structures attached to residential units.
829 b. Notwithstanding sub-subparagraph a., the association has
830 no obligation to pay covered claims that are to be paid from the
831 proceeds of bonds issued under s. 631.695. However, the
832 association shall assign and pledge the first available moneys
833 from all or part of the assessments to be made under paragraph
834 (3)(a) to or on behalf of the issuer of such bonds for the
835 benefit of the holders of such bonds. The association shall
836 administer any such covered claims and present valid covered
837 claims for payment in accordance with the provisions of the
838 assistance program in connection with which such bonds have been
839 issued.
840 4. In no event shall The association may not be obligated
841 to a policyholder or claimant in an amount in excess of the
842 obligation of the insolvent insurer under the policy from which
843 the claim arises.
844 (6) The association may extend the time limits specified in
845 paragraph (1)(a) by up to an additional 60 days or waive the
846 applicability of the $100 deductible specified in paragraph
847 (1)(a) if the board determines it is that either or both such
848 actions are necessary to facilitate the bulk assumption of
849 obligations.
850 Section 26. Subsection (2) of section 631.904, Florida
851 Statutes, is amended to read:
852 631.904 Definitions.—As used in this part, the term:
853 (2) “Covered claim” means an unpaid claim, including a
854 claim for return of unearned premiums, which arises out of, is
855 within the coverage of, and is not in excess of the applicable
856 limits of, an insurance policy to which this part applies, which
857 policy was issued by an insurer and which claim is made on
858 behalf of a claimant or insured who was a resident of this state
859 at the time of the injury. The term “covered claim” includes
860 unpaid claims under any employer liability coverage of a
861 workers’ compensation policy limited to the lesser of $300,000
862 or the limits of the policy. The term “covered claim” does not
863 include any amount sought as a return of premium under any
864 retrospective rating plan; any amount due any reinsurer,
865 insurer, insurance pool, or underwriting association, as
866 subrogation recoveries or otherwise; or any claim that would
867 otherwise be a covered claim that has been rejected or denied by
868 any other state guaranty fund based upon that state’s statutory
869 exclusions, including, but not limited to, those based on
870 coverage, policy type, or an insured’s net worth, except this
871 exclusion from the definition of covered claim does not apply to
872 employers who, prior to April 30, 2004, entered into an
873 agreement with the corporation preserving the employer’s right
874 to seek coverage of claims rejected by another state’s guaranty
875 fund; or any return of premium resulting from a policy that was
876 not in force on the date of the final order of liquidation.
877 Member insurers have no right of subrogation against the insured
878 of any insolvent insurer. This provision applies retroactively
879 to cover claims of an insolvent self-insurance fund resulting
880 from accidents or losses incurred prior to January 1, 1994,
881 regardless of the date the petition in circuit court was filed
882 alleging insolvency and the date the court entered an order
883 appointing a receiver.
884 Section 27. Except as otherwise expressly provided in this
885 act, this act shall take effect upon becoming a law.