Florida Senate - 2021                              CS for SB 742
       
       
        
       By the Committee on Banking and Insurance; and Senator Perry
       
       
       
       
       
       597-02692-21                                           2021742c1
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 215.555,
    3         F.S.; redefining the term “covered policy” under the
    4         Florida Hurricane Catastrophe Fund in relation to
    5         certain collateral protection insurance policies;
    6         amending s. 624.423, F.S.; specifying when service of
    7         process is valid and binding upon insurers; creating
    8         s. 624.46227, F.S.; authorizing any association,
    9         trust, or pool created for the purpose of forming or
   10         managing a risk management mechanism or providing
   11         self-insurance for a public entity to establish a
   12         quorum and conduct public business through
   13         communication media technology; amending s. 626.7351,
   14         F.S.; revising a qualification for licensure as a
   15         customer representative; amending s. 626.856, F.S.;
   16         revising the definition of the term “company employee
   17         adjuster”; amending s. 626.9202, F.S.; revising the
   18         definition of the term “loss run statement”;
   19         specifying the entities that must receive requests for
   20         loss run statements; specifying that insurers must
   21         provide loss run statements under certain
   22         circumstances; revising the required claims history in
   23         loss run statements; providing applicability; limiting
   24         loss run statement requests with respect to group
   25         health insurance policies to group policyholders;
   26         amending s. 627.062, F.S.; revising the factors for
   27         determining whether an insurance rate filing is
   28         excessive, inadequate, or unfairly discriminatory;
   29         amending s. 627.0629, F.S.; authorizing, rather than
   30         requiring, rate filings for certain residential
   31         property insurance to include certain rate factors;
   32         authorizing insurers to file certain insurance rating
   33         plans based on certain windstorm mitigation
   34         construction standards; authorizing insurers to
   35         require policyholders to provide evidence of
   36         compliance with mitigation standards under certain
   37         conditions; amending s. 627.072, F.S.; providing a
   38         ratemaking factor for workers’ compensation and
   39         employer’s liability insurance; amending s. 627.351,
   40         F.S.; revising conditions for determining the
   41         ineligibility of condominiums for wind-only coverage;
   42         amending s. 627.421, F.S.; authorizing insurers to
   43         electronically transmit policy documents and claims
   44         documents under certain circumstances; amending s.
   45         627.444, F.S.; revising the definition of the term
   46         “loss run statement”; specifying the entities that
   47         must receive requests for loss run statements;
   48         specifying that insurers must provide loss run
   49         statements under certain circumstances; revising the
   50         required claims history in loss run statements;
   51         providing applicability; limiting loss run statement
   52         requests with respect to group health insurance
   53         policies to group policyholders; repealing s.
   54         627.6647, F.S., relating to the release of information
   55         required for bid to group health insurance
   56         policyholders; amending s. 627.7011, F.S.; revising
   57         conditions for inclusion of costs for law and
   58         ordinance coverage in loss adjustments under certain
   59         homeowners’ policies; amending s. 627.715, F.S.;
   60         providing an exemption from a diligent effort
   61         requirement for agents exporting contracts or
   62         endorsements providing flood coverage; amending s.
   63         627.7152, F.S.; revising the definition of the term
   64         “assignment agreement”; specifying the addresses to
   65         which a notice of intent must be served; amending s.
   66         627.7276, F.S.; revising notice requirements for motor
   67         vehicle policies that do not provide coverage for
   68         bodily injury and property damage liability; amending
   69         ss. 634.171, 634.317, and 634.419, F.S.; authorizing
   70         licensed personal lines or general lines agents to
   71         solicit, negotiate, advertise, or sell motor vehicle
   72         service agreements, home warranty contracts, and
   73         service warranties, respectively, without a sales
   74         representative license; reenacting s. 627.7153(1) and
   75         (2)(d), F.S., relating to policies restricting
   76         assignment of post-loss benefits under a property
   77         insurance policy, to incorporate the amendment made by
   78         the act to s. 627.7152, F.S., in references thereto;
   79         providing effective dates.
   80          
   81  Be It Enacted by the Legislature of the State of Florida:
   82  
   83         Section 1. Effective June 1, 2021, paragraph (c) of
   84  subsection (2) of section 215.555, Florida Statutes, is amended
   85  to read:
   86         215.555 Florida Hurricane Catastrophe Fund.—
   87         (2) DEFINITIONS.—As used in this section:
   88         (c) “Covered policy” means any insurance policy covering
   89  residential property in this state, including, but not limited
   90  to, any homeowner, mobile home owner, farm owner, condominium
   91  association, condominium unit owner, tenant, or apartment
   92  building policy, or any other policy covering a residential
   93  structure or its contents issued by any authorized insurer,
   94  including a commercial self-insurance fund holding a certificate
   95  of authority issued by the Office of Insurance Regulation under
   96  s. 624.462, the Citizens Property Insurance Corporation, and any
   97  joint underwriting association or similar entity created under
   98  law. The term “covered policy” includes any collateral
   99  protection insurance policy covering personal residences which
  100  protects both the borrower’s and the lender’s financial
  101  interests, in an amount at least equal to the coverage amount
  102  for the dwelling in place under the lapsed homeowner’s policy,
  103  the coverage amount that the homeowner has been notified of, or
  104  the coverage amount the homeowner requests from the collateral
  105  protection insurer, if such collateral protection insurance
  106  policy can be accurately reported as required in subsection (5).
  107  Additionally, covered policies include policies covering the
  108  peril of wind removed from the Florida Residential Property and
  109  Casualty Joint Underwriting Association or from the Citizens
  110  Property Insurance Corporation, created under s. 627.351(6), or
  111  from the Florida Windstorm Underwriting Association, created
  112  under s. 627.351(2), by an authorized insurer under the terms
  113  and conditions of an executed assumption agreement between the
  114  authorized insurer and such association or Citizens Property
  115  Insurance Corporation. Each assumption agreement between the
  116  association and such authorized insurer or Citizens Property
  117  Insurance Corporation must be approved by the Office of
  118  Insurance Regulation before the effective date of the
  119  assumption, and the Office of Insurance Regulation must provide
  120  written notification to the board within 15 working days after
  121  such approval. “Covered policy” does not include any policy that
  122  excludes wind coverage or hurricane coverage or any reinsurance
  123  agreement and does not include any policy otherwise meeting this
  124  definition which is issued by a surplus lines insurer or a
  125  reinsurer. All commercial residential excess policies and all
  126  deductible buy-back policies that, based on sound actuarial
  127  principles, require individual ratemaking shall be excluded by
  128  rule if the actuarial soundness of the fund is not jeopardized.
  129  For this purpose, the term “excess policy” means a policy that
  130  provides insurance protection for large commercial property
  131  risks and that provides a layer of coverage above a primary
  132  layer insured by another insurer.
  133         Section 2. Effective upon this act becoming a law,
  134  subsection (3) of section 624.423, Florida Statutes, is amended
  135  to read:
  136         624.423 Serving process.—
  137         (3) Service of process is valid and binding upon the
  138  insurer on the date process served upon the Chief Financial
  139  Officer is delivered to the insurer and sent or the insurer has
  140  been notified such information has been made available on a
  141  secured network in accordance with this section and s.
  142  624.307(9) shall for all purposes constitute valid and binding
  143  service thereof upon the insurer.
  144         Section 3. Section 624.46227, Florida Statutes, is created
  145  to read:
  146         624.46227 Meeting requirements.—Any association, trust, or
  147  pool authorized by state law and created for the purpose of
  148  forming a risk management mechanism or providing self-insurance
  149  for public entities in this state may establish a quorum and
  150  conduct public business through communication media technology.
  151         Section 4. Subsection (3) of section 626.7351, Florida
  152  Statutes, is amended to read:
  153         626.7351 Qualifications for customer representative’s
  154  license.—The department shall not grant or issue a license as
  155  customer representative to any individual found by it to be
  156  untrustworthy or incompetent, or who does not meet each of the
  157  following qualifications:
  158         (3) Within 4 years preceding the date that the application
  159  for license was filed with the department, the applicant has
  160  earned the designation of Accredited Advisor in Insurance (AAI),
  161  Associate in General Insurance (AINS), or Accredited Customer
  162  Service Representative (ACSR) from the Insurance Institute of
  163  America; the designation of Certified Insurance Counselor (CIC)
  164  from the Society of Certified Insurance Service Counselors; the
  165  designation of Certified Professional Service Representative
  166  (CPSR) from the National Foundation for CPSR; the designation of
  167  Certified Insurance Service Representative (CISR) from the
  168  Society of Certified Insurance Service Representatives; the
  169  designation of Certified Insurance Representative (CIR) from
  170  All-Lines Training; the designation of Insurance Customer
  171  Service Representative (ICSR) from Statewide Insurance
  172  Associates LLC; the designation of Professional Customer Service
  173  Representative (PCSR) from the Professional Career Institute;
  174  the designation of Registered Customer Service Representative
  175  (RCSR) from a regionally accredited postsecondary institution in
  176  the state whose curriculum is approved by the department and
  177  includes comprehensive analysis of basic property and casualty
  178  lines of insurance and testing which demonstrates mastery of the
  179  subject; or a degree from an accredited institution of higher
  180  learning approved by the department when the degree includes a
  181  minimum of 9 credit hours of insurance instruction, including
  182  specific instruction in the areas of property, casualty, and
  183  inland marine insurance. The department shall adopt rules
  184  establishing standards for the approval of curriculum.
  185         Section 5. Section 626.856, Florida Statutes, is amended to
  186  read:
  187         626.856 “Company employee adjuster” defined.—A “company
  188  employee adjuster” means a person licensed as an all-lines
  189  adjuster who is appointed and employed on an insurer’s staff of
  190  adjusters, by an affiliate, or by a wholly owned subsidiary of
  191  the insurer, and who undertakes on behalf of such insurer or
  192  other insurers under common control or ownership to ascertain
  193  and determine the amount of any claim, loss, or damage payable
  194  under a contract of insurance, or undertakes to effect
  195  settlement of such claim, loss, or damage.
  196         Section 6. Effective upon this act becoming a law,
  197  subsections (1), (2), and (4) of section 626.9202, Florida
  198  Statutes, are amended, and subsections (7) and (8) are added to
  199  that section, to read:
  200         626.9202 Loss run statements for all lines of insurance.—
  201         (1) As used in this section, the term:
  202         (a) “Loss run statement” means a report that contains the
  203  policy number, the period of coverage, the number of claims, the
  204  paid losses on all claims, and the date of each loss. The term
  205  does not include supporting claim file documentation, including,
  206  but not limited to, copies of claim files, investigation
  207  reports, evaluation statements, insureds’ statements, and
  208  documents protected by a common law or statutory privilege. As
  209  applied to group health insurance, the term means a report that
  210  also contains premiums paid, number of insureds on a monthly
  211  basis, and dependent status.
  212         (b) “Provide” means to electronically send a document or to
  213  allow access through an electronic portal to view or generate a
  214  document.
  215         (2) Notwithstanding any other law, an insurer shall provide
  216  to an insured within 15 calendar days after an individual or
  217  entity designated by the insurer receives receipt of the
  218  insured’s written request, either:
  219         (a) A loss run statement; or
  220         (b) For personal lines of insurance, information on how to
  221  obtain a loss run statement at no charge through a consumer
  222  reporting agency. However, this section does not prohibit an
  223  insured from requesting a loss run statement after receiving
  224  information from a consumer reporting agency, in which case the
  225  insurer must then provide such loss run statement within 15
  226  calendar days after the individual or entity designated by the
  227  insurer receives the insured’s subsequent written request.
  228         (4) A loss run statement provided pursuant to this section
  229  must contain a claims history with the insurer for the preceding
  230  3 5 years or, if the claims history is less than 3 5 years, a
  231  complete claims history with the insurer.
  232         (7) This section does not apply to a life insurer as
  233  defined in s. 624.602.
  234         (8) For group health insurance, only the group policyholder
  235  may request and be provided a loss run statement pursuant to
  236  this section.
  237         Section 7. Paragraph (b) of subsection (2) of section
  238  627.062, Florida Statutes, is amended to read:
  239         627.062 Rate standards.—
  240         (2) As to all such classes of insurance:
  241         (b) Upon receiving a rate filing, the office shall review
  242  the filing to determine if a rate is excessive, inadequate, or
  243  unfairly discriminatory. In making that determination, the
  244  office shall, in accordance with generally accepted and
  245  reasonable actuarial techniques, consider the following factors:
  246         1. Past and prospective loss experience within and without
  247  this state.
  248         2. Past and prospective expenses.
  249         3. The degree of competition among insurers for the risk
  250  insured.
  251         4. Investment income reasonably expected by the insurer,
  252  consistent with the insurer’s investment practices, from
  253  investable premiums anticipated in the filing, plus any other
  254  expected income from currently invested assets representing the
  255  amount expected on unearned premium reserves and loss reserves.
  256  The commission may adopt rules using reasonable techniques of
  257  actuarial science and economics to specify the manner in which
  258  insurers calculate investment income attributable to classes of
  259  insurance written in this state and the manner in which
  260  investment income is used to calculate insurance rates. Such
  261  manner must contemplate allowances for an underwriting profit
  262  factor and full consideration of investment income that produces
  263  a reasonable rate of return; however, investment income from
  264  invested surplus may not be considered.
  265         5. The reasonableness of the judgment reflected in the
  266  filing.
  267         6. Dividends, savings, or unabsorbed premium deposits
  268  allowed or returned to policyholders, members, or subscribers in
  269  this state.
  270         7. The adequacy of loss reserves.
  271         8. The cost of reinsurance. The office may not disapprove a
  272  rate as excessive solely due to the insurer having obtained
  273  catastrophic reinsurance to cover the insurer’s estimated 250
  274  year probable maximum loss or any lower level of loss.
  275         9. Trend factors, including trends in actual losses per
  276  insured unit for the insurer making the filing.
  277         10. Conflagration and catastrophe hazards, if applicable.
  278         11. Projected hurricane losses, if applicable, which must
  279  be estimated using a model or method found to be acceptable or
  280  reliable by the Florida Commission on Hurricane Loss Projection
  281  Methodology, and as further provided in s. 627.0628. A
  282  residential property insurance rate filing may use a weighted or
  283  straight average of two or more such models or methods.
  284         12. Projected flood losses for personal residential
  285  property insurance, if applicable, which may be estimated using
  286  a model or method, or a straight average of model results or
  287  output ranges, independently found to be acceptable or reliable
  288  by the Florida Commission on Hurricane Loss Projection
  289  Methodology and as further provided in s. 627.0628.
  290         13. A reasonable margin for underwriting profit and
  291  contingencies.
  292         14. The cost of medical services, if applicable.
  293         15. Other relevant factors that affect the frequency or
  294  severity of claims or expenses.
  295  
  296  The provisions of this subsection do not apply to workers’
  297  compensation, employer’s liability insurance, and motor vehicle
  298  insurance.
  299         Section 8. Paragraph (b) of subsection (2) of section
  300  627.0629, Florida Statutes, is amended, and subsection (9) is
  301  added to that section, to read:
  302         627.0629 Residential property insurance; rate filings.—
  303         (2)
  304         (b) A rate filing for residential property insurance made
  305  more than 150 days after approval by the office of a building
  306  code rating factor plan submitted by a statewide rating
  307  organization may shall include positive and negative rate
  308  factors that reflect the manner in which building code
  309  enforcement in a particular jurisdiction addresses risk of wind
  310  damage. The rate filing must shall include variations from
  311  standard rate factors on an individual basis based on inspection
  312  of a particular structure by a licensed home inspector. If an
  313  inspection is requested by the insured, the insurer may require
  314  the insured to pay the reasonable cost of the inspection. This
  315  paragraph applies to structures constructed or renovated after
  316  the implementation of this paragraph.
  317         (9) An insurer may file with the office a personal lines
  318  residential property insurance rating plan that provides
  319  justified premium discounts, credits, or other rate
  320  differentials based on windstorm mitigation construction
  321  standards developed by an independent, not-for-profit,
  322  scientific research organization, if such standards meet the
  323  requirements of this section. The insurer may require a
  324  policyholder who elects to construct or retrofit the structure,
  325  in whole or in part, for windstorm mitigation purposes to
  326  present to the insurer evidence of compliance with the
  327  mitigation standards before receiving any premium discount,
  328  credit, or rate reduction allowed under the rating plan.
  329         Section 9. Subsection (1) of section 627.072, Florida
  330  Statutes, is amended to read:
  331         627.072 Making and use of rates.—
  332         (1) As to workers’ compensation and employer’s liability
  333  insurance, the following factors shall be used in the
  334  determination and fixing of rates:
  335         (a) The past loss experience and prospective loss
  336  experience within and outside this state;
  337         (b) The impact resulting from the past loss experience and
  338  prospective loss experience for insurers whose data are missing
  339  from statewide experience due to insolvency. Prior reported data
  340  for such insurers and all other relevant information may be used
  341  to assess the impact on rates;
  342         (c)(b) The conflagration and catastrophe hazards;
  343         (d)(c) A reasonable margin for underwriting profit and
  344  contingencies;
  345         (e)(d) Dividends, savings, or unabsorbed premium deposits
  346  allowed or returned by insurers to their policyholders, members,
  347  or subscribers;
  348         (f)(e) Investment income on unearned premium reserves and
  349  loss reserves;
  350         (g)(f) Past expenses and prospective expenses, both those
  351  countrywide and those specifically applicable to this state; and
  352         (h)(g) All other relevant factors, including judgment
  353  factors, within and outside this state.
  354         Section 10. Paragraph (a) of subsection (6) of section
  355  627.351, Florida Statutes, is amended to read:
  356         627.351 Insurance risk apportionment plans.—
  357         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
  358         (a) The public purpose of this subsection is to ensure that
  359  there is an orderly market for property insurance for residents
  360  and businesses of this state.
  361         1. The Legislature finds that private insurers are
  362  unwilling or unable to provide affordable property insurance
  363  coverage in this state to the extent sought and needed. The
  364  absence of affordable property insurance threatens the public
  365  health, safety, and welfare and likewise threatens the economic
  366  health of the state. The state therefore has a compelling public
  367  interest and a public purpose to assist in assuring that
  368  property in the state is insured and that it is insured at
  369  affordable rates so as to facilitate the remediation,
  370  reconstruction, and replacement of damaged or destroyed property
  371  in order to reduce or avoid the negative effects otherwise
  372  resulting to the public health, safety, and welfare, to the
  373  economy of the state, and to the revenues of the state and local
  374  governments which are needed to provide for the public welfare.
  375  It is necessary, therefore, to provide affordable property
  376  insurance to applicants who are in good faith entitled to
  377  procure insurance through the voluntary market but are unable to
  378  do so. The Legislature intends, therefore, that affordable
  379  property insurance be provided and that it continue to be
  380  provided, as long as necessary, through Citizens Property
  381  Insurance Corporation, a government entity that is an integral
  382  part of the state, and that is not a private insurance company.
  383  To that end, the corporation shall strive to increase the
  384  availability of affordable property insurance in this state,
  385  while achieving efficiencies and economies, and while providing
  386  service to policyholders, applicants, and agents which is no
  387  less than the quality generally provided in the voluntary
  388  market, for the achievement of the foregoing public purposes.
  389  Because it is essential for this government entity to have the
  390  maximum financial resources to pay claims following a
  391  catastrophic hurricane, it is the intent of the Legislature that
  392  the corporation continue to be an integral part of the state and
  393  that the income of the corporation be exempt from federal income
  394  taxation and that interest on the debt obligations issued by the
  395  corporation be exempt from federal income taxation.
  396         2. The Residential Property and Casualty Joint Underwriting
  397  Association originally created by this statute shall be known as
  398  the Citizens Property Insurance Corporation. The corporation
  399  shall provide insurance for residential and commercial property,
  400  for applicants who are entitled, but, in good faith, are unable
  401  to procure insurance through the voluntary market. The
  402  corporation shall operate pursuant to a plan of operation
  403  approved by order of the Financial Services Commission. The plan
  404  is subject to continuous review by the commission. The
  405  commission may, by order, withdraw approval of all or part of a
  406  plan if the commission determines that conditions have changed
  407  since approval was granted and that the purposes of the plan
  408  require changes in the plan. For the purposes of this
  409  subsection, residential coverage includes both personal lines
  410  residential coverage, which consists of the type of coverage
  411  provided by homeowner, mobile home owner, dwelling, tenant,
  412  condominium unit owner, and similar policies; and commercial
  413  lines residential coverage, which consists of the type of
  414  coverage provided by condominium association, apartment
  415  building, and similar policies.
  416         3. With respect to coverage for personal lines residential
  417  structures:
  418         a. Effective January 1, 2014, a structure that has a
  419  dwelling replacement cost of $1 million or more, or a single
  420  condominium unit that has a combined dwelling and contents
  421  replacement cost of $1 million or more, is not eligible for
  422  coverage by the corporation. Such dwellings insured by the
  423  corporation on December 31, 2013, may continue to be covered by
  424  the corporation until the end of the policy term. The office
  425  shall approve the method used by the corporation for valuing the
  426  dwelling replacement cost for the purposes of this subparagraph.
  427  If a policyholder is insured by the corporation before being
  428  determined to be ineligible pursuant to this subparagraph and
  429  such policyholder files a lawsuit challenging the determination,
  430  the policyholder may remain insured by the corporation until the
  431  conclusion of the litigation.
  432         b. Effective January 1, 2015, a structure that has a
  433  dwelling replacement cost of $900,000 or more, or a single
  434  condominium unit that has a combined dwelling and contents
  435  replacement cost of $900,000 or more, is not eligible for
  436  coverage by the corporation. Such dwellings insured by the
  437  corporation on December 31, 2014, may continue to be covered by
  438  the corporation only until the end of the policy term.
  439         c. Effective January 1, 2016, a structure that has a
  440  dwelling replacement cost of $800,000 or more, or a single
  441  condominium unit that has a combined dwelling and contents
  442  replacement cost of $800,000 or more, is not eligible for
  443  coverage by the corporation. Such dwellings insured by the
  444  corporation on December 31, 2015, may continue to be covered by
  445  the corporation until the end of the policy term.
  446         d. Effective January 1, 2017, a structure that has a
  447  dwelling replacement cost of $700,000 or more, or a single
  448  condominium unit that has a combined dwelling and contents
  449  replacement cost of $700,000 or more, is not eligible for
  450  coverage by the corporation. Such dwellings insured by the
  451  corporation on December 31, 2016, may continue to be covered by
  452  the corporation until the end of the policy term.
  453  
  454  The requirements of sub-subparagraphs b.-d. do not apply in
  455  counties where the office determines there is not a reasonable
  456  degree of competition. In such counties a personal lines
  457  residential structure that has a dwelling replacement cost of
  458  less than $1 million, or a single condominium unit that has a
  459  combined dwelling and contents replacement cost of less than $1
  460  million, is eligible for coverage by the corporation.
  461         4. It is the intent of the Legislature that policyholders,
  462  applicants, and agents of the corporation receive service and
  463  treatment of the highest possible level but never less than that
  464  generally provided in the voluntary market. It is also intended
  465  that the corporation be held to service standards no less than
  466  those applied to insurers in the voluntary market by the office
  467  with respect to responsiveness, timeliness, customer courtesy,
  468  and overall dealings with policyholders, applicants, or agents
  469  of the corporation.
  470         5.a. Effective January 1, 2009, a personal lines
  471  residential structure that is located in the “wind-borne debris
  472  region,” as defined in s. 1609.2, International Building Code
  473  (2006), and that has an insured value on the structure of
  474  $750,000 or more is not eligible for coverage by the corporation
  475  unless the structure has opening protections as required under
  476  the Florida Building Code for a newly constructed residential
  477  structure in that area. A residential structure is deemed to
  478  comply with this sub-subparagraph if it has shutters or opening
  479  protections on all openings and if such opening protections
  480  complied with the Florida Building Code at the time they were
  481  installed.
  482         b. Any major structure, as defined in s. 161.54(6)(a), that
  483  is newly constructed, or rebuilt, repaired, restored, or
  484  remodeled to increase the total square footage of finished area
  485  by more than 25 percent, pursuant to a permit applied for after
  486  July 1, 2015, is not eligible for coverage by the corporation if
  487  the structure is seaward of the coastal construction control
  488  line established pursuant to s. 161.053 or is within the Coastal
  489  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  490  3510.
  491         6. With respect to wind-only coverage for commercial lines
  492  residential condominiums, effective July 1, 2014, a condominium
  493  may shall be deemed ineligible for coverage when if 50 percent
  494  or more of the units are rented more than eight times in a
  495  calendar year for a rental agreement period of less than 30
  496  days.
  497         Section 11. Subsection (6) is added to section 627.421,
  498  Florida Statutes, to read:
  499         627.421 Delivery of policy.—
  500         (6) If a policy is sold in a wholly electronic manner, the
  501  insurer may electronically transmit all policy documents and
  502  claims communications to the insured or policyholder so long as
  503  the insurer provides a disclosure to the insured or policyholder
  504  at the time of sale.
  505         Section 12. Effective upon this act becoming a law,
  506  subsections (1), (2), and (4) of section 627.444, Florida
  507  Statutes, are amended, and subsections (7) and (8) are added to
  508  that section, to read:
  509         627.444 Loss run statements for all lines of insurance.—
  510         (1) As used in this section, the term:
  511         (a) “Loss run statement” means a report that contains the
  512  policy number, the period of coverage, the number of claims, the
  513  paid losses on all claims, and the date of each loss. The term
  514  does not include supporting claim file documentation, including,
  515  but not limited to, copies of claim files, investigation
  516  reports, evaluation statements, insureds’ statements, and
  517  documents protected by a common law or statutory privilege. As
  518  applied to group health insurance, the term means a report that
  519  also contains premiums paid, number of insureds on a monthly
  520  basis, and dependent status.
  521         (b) “Provide” means to electronically send a document or to
  522  allow access through an electronic portal to view or generate a
  523  document.
  524         (2) Notwithstanding any other law, an insurer shall provide
  525  to an insured within 15 calendar days after an individual or
  526  entity designated by the insurer receives receipt of the
  527  insured’s written request, either:
  528         (a) A loss run statement; or
  529         (b) For personal lines of insurance, information on how to
  530  obtain a loss run statement at no charge through a consumer
  531  reporting agency. However, this section does not prohibit an
  532  insured from requesting a loss run statement after receiving
  533  information from a consumer reporting agency, in which case the
  534  insurer must then provide such loss run statement within 15
  535  calendar days after the individual or entity designated by the
  536  insurer receives the insured’s subsequent written request.
  537         (4) A loss run statement provided pursuant to this section
  538  must contain a claims history with the insurer for the preceding
  539  3 5 years or, if the claims history is less than 3 5 years, a
  540  complete claims history with the insurer.
  541         (7) This section does not apply to a life insurer as
  542  defined in s. 624.602.
  543         (8) For group health insurance, only the group policyholder
  544  may request and be provided a loss run statement pursuant to
  545  this section.
  546         Section 13. Section 627.6647, Florida Statutes, is
  547  repealed.
  548         Section 14. Paragraph (b) of subsection (1) of section
  549  627.7011, Florida Statutes, is amended to read:
  550         627.7011 Homeowners’ policies; offer of replacement cost
  551  coverage and law and ordinance coverage.—
  552         (1) Prior to issuing a homeowner’s insurance policy, the
  553  insurer must offer each of the following:
  554         (b) A policy or endorsement providing that, subject to
  555  other policy provisions, any loss that is repaired or replaced
  556  at any location will be adjusted on the basis of replacement
  557  costs to the dwelling not exceeding policy limits, rather than
  558  actual cash value, and also including costs necessary to meet
  559  applicable laws and ordinances enacted on or before the time of
  560  loss which regulate regulating the construction, use, or repair
  561  of any property or require requiring the tearing down of any
  562  property, including the costs of removing debris. However,
  563  additional costs necessary to meet applicable laws and
  564  ordinances may be limited to 25 percent or 50 percent of the
  565  dwelling limit, as selected by the policyholder, and such
  566  coverage applies only to repairs of the damaged portion of the
  567  structure unless the total damage to the structure exceeds 50
  568  percent of the replacement cost of the structure.
  569  
  570  An insurer is not required to make the offers required by this
  571  subsection with respect to the issuance or renewal of a
  572  homeowner’s policy that contains the provisions specified in
  573  paragraph (b) for law and ordinance coverage limited to 25
  574  percent of the dwelling limit, except that the insurer must
  575  offer the law and ordinance coverage limited to 50 percent of
  576  the dwelling limit. This subsection does not prohibit the offer
  577  of a guaranteed replacement cost policy.
  578         Section 15. Effective upon this act becoming a law, present
  579  subsections (4) through (10) of section 627.715, Florida
  580  Statutes, are redesignated as subsections (5) through (11),
  581  respectively, and a new subsection (4) is added to that section,
  582  to read:
  583         627.715 Flood insurance.—An authorized insurer may issue an
  584  insurance policy, contract, or endorsement providing personal
  585  lines residential coverage for the peril of flood or excess
  586  coverage for the peril of flood on any structure or the contents
  587  of personal property contained therein, subject to this section.
  588  This section does not apply to commercial lines residential or
  589  commercial lines nonresidential coverage for the peril of flood.
  590  An insurer may issue flood insurance policies, contracts,
  591  endorsements, or excess coverage on a standard, preferred,
  592  customized, flexible, or supplemental basis.
  593         (4) An agent may export a contract or an endorsement
  594  providing flood coverage to an eligible surplus lines insurer
  595  without making a diligent effort to seek such coverage from
  596  three or more authorized insurers under s. 626.916(1)(a).
  597         Section 16. Effective upon this act becoming a law,
  598  paragraph (b) of subsection (1) and paragraph (a) of subsection
  599  (9) of section 627.7152, Florida Statutes, are amended to read:
  600         627.7152 Assignment agreements.—
  601         (1) As used in this section, the term:
  602         (b) “Assignment agreement” means any instrument by which
  603  post-loss benefits under a residential property insurance policy
  604  or commercial property insurance policy, as that term is defined
  605  in s. 627.0625(1), are assigned or transferred, or acquired in
  606  any manner, in whole or in part, to or from a person providing
  607  services, including, but not limited to, scopes of service, to
  608  inspect, protect, repair, restore, or replace property or to
  609  mitigate against further damage to the property. The term does
  610  not include fees collected by a public adjuster as defined in
  611  626.854.
  612         (9)(a) An assignee must provide the named insured, insurer,
  613  and the assignor, if not the named insured, with a written
  614  notice of intent to initiate litigation before filing suit under
  615  the policy. Such notice must be served by certified mail, return
  616  receipt requested, to the name and mailing address designated by
  617  the insurer in the policy forms, or by electronic delivery at
  618  the e-mail address designated by the insurer in the policy forms
  619  at least 10 business days before filing suit, but may not be
  620  served before the insurer has made a determination of coverage
  621  under s. 627.70131. The notice must specify the damages in
  622  dispute, the amount claimed, and a presuit settlement demand.
  623  Concurrent with the notice, and as a precondition to filing
  624  suit, the assignee must provide the named insured, insurer, and
  625  the assignor, if not the named insured, a detailed written
  626  invoice or estimate of services, including itemized information
  627  on equipment, materials, and supplies; the number of labor
  628  hours; and, in the case of work performed, proof that the work
  629  has been performed in accordance with accepted industry
  630  standards.
  631         Section 17. Section 627.7276, Florida Statutes, is amended
  632  to read:
  633         627.7276 Notice of limited coverage.—
  634         (1) An automobile policy that does not contain coverage for
  635  bodily injury and property damage must include a notice be
  636  clearly stamped or printed to the effect that such coverage is
  637  not included in the policy in the following manner:
  638  
  639         “THIS POLICY DOES NOT PROVIDE BODILY INJURY AND
  640         PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER
  641         COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT
  642         MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL
  643         RESPONSIBILITY LAW.”
  644  
  645         (2) This notice legend must accompany appear on the policy
  646  declaration page and on the filing back of the policy and be
  647  printed in a contrasting color from that used on the policy and
  648  in type and larger than the largest type used in the text at
  649  least as large as the type and text used on the declarations
  650  page thereof, as an overprint or by a rubber stamp impression.
  651         Section 18. Section 634.171, Florida Statutes, is amended
  652  to read:
  653         634.171 Salesperson to be licensed and appointed;
  654  exemptions.—Salespersons for motor vehicle service agreement
  655  companies and insurers shall be licensed, appointed, renewed,
  656  continued, reinstated, or terminated as prescribed in chapter
  657  626 for insurance representatives in general. However, they
  658  shall be exempt from all other provisions of chapter 626
  659  including fingerprinting, photo identification, education, and
  660  examination provisions. License, appointment, and other fees
  661  shall be those prescribed in s. 624.501. A licensed and
  662  appointed salesperson shall be directly responsible and
  663  accountable for all acts of her or his employees and other
  664  representatives. Each service agreement company or insurer
  665  shall, on forms prescribed by the department, within 30 days
  666  after termination of the appointment, notify the department of
  667  such termination. An No employee or salesperson of a motor
  668  vehicle service agreement company or insurer may not directly or
  669  indirectly solicit or negotiate insurance contracts, or hold
  670  herself or himself out in any manner to be an insurance agent,
  671  unless so qualified, licensed, and appointed therefor under the
  672  Florida Insurance Code. A licensed personal lines or general
  673  lines agent is not required to be licensed as a salesperson
  674  under this section to solicit, negotiate, advertise, or sell
  675  motor vehicle service agreements. A motor vehicle service
  676  agreement company is not required to be licensed as a
  677  salesperson to solicit, sell, issue, or otherwise transact the
  678  motor vehicle service agreements issued by the motor vehicle
  679  service agreement company.
  680         Section 19. Section 634.317, Florida Statutes, is amended
  681  to read:
  682         634.317 License and appointment required; exemptions.—A No
  683  person may not solicit, negotiate, or effectuate home warranty
  684  contracts for remuneration in this state unless such person is
  685  licensed and appointed as a sales representative. A licensed and
  686  appointed sales representative shall be directly responsible and
  687  accountable for all acts of the licensee’s employees. A licensed
  688  personal lines or general lines agent is not required to be
  689  licensed as a sales representative under this section to
  690  solicit, negotiate, advertise, or sell home warranty contracts.
  691         Section 20. Section 634.419, Florida Statutes, is amended
  692  to read:
  693         634.419 License and appointment required; exemptions.—A No
  694  person or entity may not shall solicit, negotiate, advertise, or
  695  effectuate service warranty contracts in this state unless such
  696  person or entity is licensed and appointed as a sales
  697  representative. Sales representatives shall be responsible for
  698  the actions of persons under their supervision. However, a
  699  service warranty association licensed as such under this part is
  700  shall not be required to be licensed and appointed as a sales
  701  representative to solicit, negotiate, advertise, or effectuate
  702  its products. A licensed personal lines or general lines agent
  703  is not required to be licensed as a sales representative under
  704  this section to solicit, negotiate, advertise, or sell service
  705  warranties.
  706         Section 21. Effective upon this act becoming a law, for the
  707  purpose of incorporating the amendment made by this act to
  708  section 627.7152, Florida Statutes, in references thereto,
  709  subsection (1) and paragraph (d) of subsection (2) of section
  710  627.7153, Florida Statutes, are reenacted to read:
  711         627.7153 Policies restricting assignment of post-loss
  712  benefits under a property insurance policy.—
  713         (1) As used in this section, the term “assignment
  714  agreement” has the same meaning as provided in s. 627.7152.
  715         (2) An insurer may make available a policy that restricts
  716  in whole or in part an insured’s right to execute an assignment
  717  agreement only if all of the following conditions are met:
  718         (d) Each restricted policy include on its face the
  719  following notice in 18-point uppercase and boldfaced type:
  720  
  721         THIS POLICY DOES NOT ALLOW THE UNRESTRICTED ASSIGNMENT
  722         OF POST-LOSS INSURANCE BENEFITS. BY SELECTING THIS
  723         POLICY, YOU WAIVE YOUR RIGHT TO FREELY ASSIGN OR
  724         TRANSFER THE POST-LOSS PROPERTY INSURANCE BENEFITS
  725         AVAILABLE UNDER THIS POLICY TO A THIRD PARTY OR TO
  726         OTHERWISE FREELY ENTER INTO AN ASSIGNMENT AGREEMENT AS
  727         THE TERM IS DEFINED IN SECTION 627.7152 OF THE FLORIDA
  728         STATUTES.
  729         Section 22. Except as otherwise expressly provided in this
  730  act and except for this section, which shall take effect upon
  731  this act becoming a law, this act shall take effect July 1,
  732  2021.