Florida Senate - 2022                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 468
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
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       Senator Perry moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 214 - 565
    4  and insert:
    5         Section 7. Paragraph (b) of subsection (2) of section
    6  627.0628, Florida Statutes, is amended to read:
    7         627.0628 Florida Commission on Hurricane Loss Projection
    8  Methodology; public records exemption; public meetings
    9  exemption.—
   10         (2) COMMISSION CREATED.—
   11         (b) The commission shall consist of the following 12
   12  members:
   13         1. The insurance consumer advocate.
   14         2. The senior employee of the State Board of Administration
   15  responsible for operations of the Florida Hurricane Catastrophe
   16  Fund.
   17         3. The Executive Director of the Citizens Property
   18  Insurance Corporation.
   19         4. The Director of the Division of Emergency Management, or
   20  the director’s designee, provided such designee is a full-time
   21  employee of the division.
   22         5. The actuary member of the Florida Hurricane Catastrophe
   23  Fund Advisory Council.
   24         6. An employee of the office who is an actuary responsible
   25  for property insurance rate filings and who is appointed by the
   26  director of the office.
   27         7. Five members appointed by the Chief Financial Officer,
   28  as follows:
   29         a. An actuary who is employed full time by a property and
   30  casualty insurer that was responsible for at least 1 percent of
   31  the aggregate statewide direct written premium for homeowner
   32  insurance in the calendar year preceding the member’s
   33  appointment to the commission.
   34         b. An expert in insurance finance who is a full-time member
   35  of the faculty of the State University System and who has a
   36  background in actuarial science.
   37         c. An expert in statistics who is a full-time member of the
   38  faculty of the State University System and who has a background
   39  in insurance.
   40         d. An expert in computer system design who is a full-time
   41  member of the faculty of the State University System.
   42         e. An expert in meteorology who is a full-time member of
   43  the faculty of the State University System and who specializes
   44  in hurricanes.
   45         8. A licensed professional structural engineer who is a
   46  full-time faculty member in the State University System and who
   47  has expertise in wind mitigation techniques. This appointment
   48  shall be made by the Governor.
   49         Section 8. Subsection (9) is added to section 627.0629,
   50  Florida Statutes, to read:
   51         627.0629 Residential property insurance; rate filings.—
   52         (9) An insurer may file with the office a personal lines
   53  residential property insurance rating plan that provides
   54  justified premium discounts, credits, or other rate
   55  differentials based on windstorm mitigation construction
   56  standards developed by an independent, not-for-profit scientific
   57  research organization, if such standards meet the requirements
   58  of this section.
   59         Section 9. Section 627.0665, Florida Statutes, is amended
   60  to read:
   61         627.0665 Automatic bank withdrawal agreements; notification
   62  required.—Any insurer licensed to issue insurance in this the
   63  state who has an automatic bank withdrawal agreement with an
   64  insured party for the payment of insurance premiums for any type
   65  of insurance shall give the named insured at least 10 15 days
   66  advance written notice of any increase in policy premiums that
   67  results in the next automatic bank withdrawal being increased by
   68  more than $10. Such notice must be provided before prior to any
   69  automatic bank withdrawal containing the of an increased premium
   70  amount.
   71         Section 10. Paragraph (a) of subsection (6) of section
   72  627.351, Florida Statutes, is amended to read:
   73         627.351 Insurance risk apportionment plans.—
   74         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   75         (a) The public purpose of this subsection is to ensure that
   76  there is an orderly market for property insurance for residents
   77  and businesses of this state.
   78         1. The Legislature finds that private insurers are
   79  unwilling or unable to provide affordable property insurance
   80  coverage in this state to the extent sought and needed. The
   81  absence of affordable property insurance threatens the public
   82  health, safety, and welfare and likewise threatens the economic
   83  health of the state. The state therefore has a compelling public
   84  interest and a public purpose to assist in assuring that
   85  property in this the state is insured and that it is insured at
   86  affordable rates so as to facilitate the remediation,
   87  reconstruction, and replacement of damaged or destroyed property
   88  in order to reduce or avoid the negative effects otherwise
   89  resulting to the public health, safety, and welfare, to the
   90  economy of the state, and to the revenues of the state and local
   91  governments which are needed to provide for the public welfare.
   92  It is necessary, therefore, to provide affordable property
   93  insurance to applicants who are in good faith entitled to
   94  procure insurance through the voluntary market but are unable to
   95  do so. The Legislature intends, therefore, that affordable
   96  property insurance be provided and that it continue to be
   97  provided, as long as necessary, through Citizens Property
   98  Insurance Corporation, a government entity that is an integral
   99  part of the state, and that is not a private insurance company.
  100  To that end, the corporation shall strive to increase the
  101  availability of affordable property insurance in this state,
  102  while achieving efficiencies and economies, and while providing
  103  service to policyholders, applicants, and agents which is no
  104  less than the quality generally provided in the voluntary
  105  market, for the achievement of the foregoing public purposes.
  106  Because it is essential for this government entity to have the
  107  maximum financial resources to pay claims following a
  108  catastrophic hurricane, it is the intent of the Legislature that
  109  the corporation continue to be an integral part of the state and
  110  that the income of the corporation be exempt from federal income
  111  taxation and that interest on the debt obligations issued by the
  112  corporation be exempt from federal income taxation.
  113         2. The Residential Property and Casualty Joint Underwriting
  114  Association originally created by this statute shall be known as
  115  the Citizens Property Insurance Corporation. The corporation
  116  shall provide insurance for residential and commercial property,
  117  for applicants who are entitled, but, in good faith, are unable
  118  to procure insurance through the voluntary market. The
  119  corporation shall operate pursuant to a plan of operation
  120  approved by order of the Financial Services Commission. The plan
  121  is subject to continuous review by the commission. The
  122  commission may, by order, withdraw approval of all or part of a
  123  plan if the commission determines that conditions have changed
  124  since approval was granted and that the purposes of the plan
  125  require changes in the plan. For the purposes of this
  126  subsection, residential coverage includes both personal lines
  127  residential coverage, which consists of the type of coverage
  128  provided by homeowner, mobile home owner, dwelling, tenant,
  129  condominium unit owner, and similar policies; and commercial
  130  lines residential coverage, which consists of the type of
  131  coverage provided by condominium association, apartment
  132  building, and similar policies.
  133         3. With respect to coverage for personal lines residential
  134  structures:
  135         a. Effective January 1, 2014, a structure that has a
  136  dwelling replacement cost of $1 million or more, or a single
  137  condominium unit that has a combined dwelling and contents
  138  replacement cost of $1 million or more, is not eligible for
  139  coverage by the corporation. Such dwellings insured by the
  140  corporation on December 31, 2013, may continue to be covered by
  141  the corporation until the end of the policy term. The office
  142  shall approve the method used by the corporation for valuing the
  143  dwelling replacement cost for the purposes of this subparagraph.
  144  If a policyholder is insured by the corporation before being
  145  determined to be ineligible pursuant to this subparagraph and
  146  such policyholder files a lawsuit challenging the determination,
  147  the policyholder may remain insured by the corporation until the
  148  conclusion of the litigation.
  149         b. Effective January 1, 2015, a structure that has a
  150  dwelling replacement cost of $900,000 or more, or a single
  151  condominium unit that has a combined dwelling and contents
  152  replacement cost of $900,000 or more, is not eligible for
  153  coverage by the corporation. Such dwellings insured by the
  154  corporation on December 31, 2014, may continue to be covered by
  155  the corporation only until the end of the policy term.
  156         c. Effective January 1, 2016, a structure that has a
  157  dwelling replacement cost of $800,000 or more, or a single
  158  condominium unit that has a combined dwelling and contents
  159  replacement cost of $800,000 or more, is not eligible for
  160  coverage by the corporation. Such dwellings insured by the
  161  corporation on December 31, 2015, may continue to be covered by
  162  the corporation until the end of the policy term.
  163         d. Effective January 1, 2017, a structure that has a
  164  dwelling replacement cost of $700,000 or more, or a single
  165  condominium unit that has a combined dwelling and contents
  166  replacement cost of $700,000 or more, is not eligible for
  167  coverage by the corporation. Such dwellings insured by the
  168  corporation on December 31, 2016, may continue to be covered by
  169  the corporation until the end of the policy term.
  170  
  171  The requirements of sub-subparagraphs b.-d. do not apply in
  172  counties where the office determines there is not a reasonable
  173  degree of competition. In such counties a personal lines
  174  residential structure that has a dwelling replacement cost of
  175  less than $1 million, or a single condominium unit that has a
  176  combined dwelling and contents replacement cost of less than $1
  177  million, is eligible for coverage by the corporation.
  178         4. It is the intent of the Legislature that policyholders,
  179  applicants, and agents of the corporation receive service and
  180  treatment of the highest possible level but never less than that
  181  generally provided in the voluntary market. It is also intended
  182  that the corporation be held to service standards no less than
  183  those applied to insurers in the voluntary market by the office
  184  with respect to responsiveness, timeliness, customer courtesy,
  185  and overall dealings with policyholders, applicants, or agents
  186  of the corporation.
  187         5.a. Effective January 1, 2009, a personal lines
  188  residential structure that is located in the “wind-borne debris
  189  region,” as defined in s. 1609.2, International Building Code
  190  (2006), and that has an insured value on the structure of
  191  $750,000 or more is not eligible for coverage by the corporation
  192  unless the structure has opening protections as required under
  193  the Florida Building Code for a newly constructed residential
  194  structure in that area. A residential structure is deemed to
  195  comply with this sub-subparagraph if it has shutters or opening
  196  protections on all openings and if such opening protections
  197  complied with the Florida Building Code at the time they were
  198  installed.
  199         b. Any major structure, as defined in s. 161.54(6)(a), that
  200  is newly constructed, or rebuilt, repaired, restored, or
  201  remodeled to increase the total square footage of finished area
  202  by more than 25 percent, pursuant to a permit applied for after
  203  July 1, 2015, is not eligible for coverage by the corporation if
  204  the structure is seaward of the coastal construction control
  205  line established pursuant to s. 161.053 or is within the Coastal
  206  Barrier Resources System as designated by 16 U.S.C. ss. 3501
  207  3510.
  208         6. With respect to wind-only coverage for commercial lines
  209  residential condominiums, effective July 1, 2014, a condominium
  210  may shall be deemed ineligible for coverage when if 50 percent
  211  or more of the units are rented more than eight times in a
  212  calendar year for a rental agreement period of less than 30
  213  days.
  214         Section 11. Subsection (1) of section 627.421, Florida
  215  Statutes, is amended to read:
  216         627.421 Delivery of policy.—
  217         (1) Subject to the insurer’s requirement as to payment of
  218  premium, every policy shall be mailed, delivered, or
  219  electronically transmitted to the insured or to the person
  220  entitled thereto not later than 60 days after the effectuation
  221  of coverage. Notwithstanding any other provision of law, an
  222  insurer may allow a policyholder of personal lines insurance to
  223  affirmatively elect delivery of the policy documents, including,
  224  but not limited to, policies, endorsements, notices, or
  225  documents, by electronic means in lieu of delivery by mail.
  226  Electronic transmission of a policy for commercial risks,
  227  including, but not limited to, workers’ compensation and
  228  employers’ liability, commercial automobile liability,
  229  commercial automobile physical damage, commercial lines
  230  residential property, commercial nonresidential property,
  231  farmowners insurance, and the types of commercial lines risks
  232  set forth in s. 627.062(3)(d), constitutes delivery to the
  233  insured or to the person entitled to delivery, unless the
  234  insured or the person entitled to delivery communicates to the
  235  insurer in writing or electronically that he or she does not
  236  agree to delivery by electronic means. Electronic transmission
  237  shall include a notice to the insured or to the person entitled
  238  to delivery of a policy of his or her right to receive the
  239  policy via United States mail rather than via electronic
  240  transmission. A paper copy of the policy shall be provided to
  241  the insured or to the person entitled to delivery at his or her
  242  request.
  243         Section 12. Paragraph (d) of subsection (4) of section
  244  627.701, Florida Statutes, is amended to read:
  245         627.701 Liability of insureds; coinsurance; deductibles.—
  246         (4)
  247         (d)1. A personal lines residential property insurance
  248  policy covering a risk valued at less than $500,000 may not have
  249  a hurricane deductible in excess of 10 percent of the policy
  250  dwelling limits, unless the following conditions are met:
  251         a. The policyholder must personally write or type and
  252  provide to the insurer the following statement in his or her own
  253  handwriting and sign his or her name, which must also be signed
  254  by every other named insured on the policy, and dated: “I do not
  255  want the insurance on my home to pay for the first (specify
  256  dollar value) of damage from hurricanes. I will pay those costs.
  257  My insurance will not.”
  258         b. If the structure insured by the policy is subject to a
  259  mortgage or lien, the policyholder must provide the insurer with
  260  a written statement from the mortgageholder or lienholder
  261  indicating that the mortgageholder or lienholder approves the
  262  policyholder electing to have the specified deductible.
  263         2. A deductible subject to the requirements of this
  264  paragraph applies for the term of the policy and for each
  265  renewal thereafter. Changes to the deductible percentage may be
  266  implemented only as of the date of renewal.
  267         3. An insurer shall keep the original copy of the signed
  268  statement required by this paragraph, electronically or
  269  otherwise, and provide a copy to the policyholder providing the
  270  signed statement. A signed statement meeting the requirements of
  271  this paragraph creates a presumption that there was an informed,
  272  knowing election of coverage.
  273         4. The commission shall adopt rules providing appropriate
  274  alternative methods for providing the statements required by
  275  this section for policyholders who have a handicapping or
  276  disabling condition that prevents them from providing a
  277  handwritten statement.
  278         Section 13. Paragraph (a) of subsection (2) and subsection
  279  (3) of section 627.712, Florida Statutes, are amended to read:
  280         627.712 Residential windstorm coverage required;
  281  availability of exclusions for windstorm or contents.—
  282         (2) A property insurer must make available, at the option
  283  of the policyholder, an exclusion of windstorm coverage.
  284         (a) The coverage may be excluded only if:
  285         1. When the policyholder is a natural person, the
  286  policyholder personally writes or types and provides to the
  287  insurer the following statement in his or her own handwriting
  288  and signs his or her name, which must also be signed by every
  289  other named insured on the policy, and dated: “I do not want the
  290  insurance on my (home/mobile home/condominium unit) to pay for
  291  damage from windstorms. I will pay those costs. My insurance
  292  will not.”
  293         2. When the policyholder is other than a natural person,
  294  the policyholder provides to the insurer on the policyholder’s
  295  letterhead the following statement that must be signed by the
  296  policyholder’s authorized representative and dated: “...(Name of
  297  entity)... does not want the insurance on its ...(type of
  298  structure)... to pay for damage from windstorms. ...(Name of
  299  entity)... will be responsible for these costs. ...(Name of
  300  entity’s)... insurance will not.”
  301         (3) An insurer issuing a residential property insurance
  302  policy, except for a condominium unit owner policy or a tenant
  303  policy, must make available, at the option of the policyholder,
  304  an exclusion of coverage for the contents. The coverage may be
  305  excluded only if the policyholder personally writes or types and
  306  provides to the insurer the following statement in his or her
  307  own handwriting and signs his or her signature, which must also
  308  be signed by every other named insured on the policy, and dated:
  309  “I do not want the insurance on my (home/mobile home) to pay for
  310  the costs to repair or replace any contents that are damaged. I
  311  will pay those costs. My insurance will not.”
  312         Section 14. Effective upon this act becoming a law,
  313  paragraph (b) of subsection (1) and paragraph (a) of subsection
  314  (9) of section 627.7152, Florida Statutes, are amended to read:
  315         627.7152 Assignment agreements.—
  316         (1) As used in this section, the term:
  317         (b) “Assignment agreement” means any instrument by which
  318  post-loss benefits under a residential property insurance policy
  319  or commercial property insurance policy, as that term is defined
  320  in s. 627.0625(1), are assigned or transferred, or acquired in
  321  any manner, in whole or in part, to or from a person providing
  322  services, including, but not limited to, services to inspect,
  323  protect, repair, restore, or replace property or to mitigate
  324  against further damage to the property. The term does not
  325  include any instrument by which a licensed public adjuster as
  326  defined in s. 626.854(1) receives any compensation, payment,
  327  commission, fee, or other thing of value for providing services
  328  under such licensure.
  329         (9)(a) An assignee must provide the named insured, insurer,
  330  and the assignor, if not the named insured, with a written
  331  notice of intent to initiate litigation before filing suit under
  332  the policy. Such notice must be served at least 10 business days
  333  before filing suit, but not before the insurer has made a
  334  determination of coverage under s. 627.70131, by certified mail,
  335  return receipt requested, to the name and mailing address
  336  designated by the insurer in the policy forms or by electronic
  337  delivery to the e-mail address designated by the insurer in the
  338  policy forms at least 10 business days before filing suit, but
  339  may not be served before the insurer has made a determination of
  340  coverage under s. 627.70131. The notice must specify the damages
  341  in dispute, the amount claimed, and a presuit settlement demand.
  342  Concurrent with the notice, and as a precondition to filing
  343  suit, the assignee must provide the named insured, insurer, and
  344  the assignor, if not the named insured, a detailed written
  345  invoice or estimate of services, including itemized information
  346  on equipment, materials, and supplies; the number of labor
  347  hours; and, in the case of work performed, proof that the work
  348  has been performed in accordance with accepted industry
  349  standards.
  350         Section 15. Section 627.7276, Florida Statutes, is amended
  351  to read:
  352         627.7276 Notice of limited coverage.—
  353         (1) An automobile policy that does not contain coverage for
  354  bodily injury and property damage must include a notice be
  355  clearly stamped or printed to the effect that such coverage is
  356  not included in the policy in the following manner:
  357  
  358         “THIS POLICY DOES NOT PROVIDE BODILY INJURY AND
  359         PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER
  360         COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT
  361         MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL
  362         RESPONSIBILITY LAW.”
  363  
  364         (2) This notice legend must accompany appear on the policy
  365  declarations declaration page and on the filing back of the
  366  policy and be printed in a contrasting color from that used on
  367  the policy and in type size larger than the largest type used in
  368  the text at least as large as the type size used on the
  369  declarations page thereof, as an overprint or by a rubber stamp
  370  impression.
  371  
  372  ================= T I T L E  A M E N D M E N T ================
  373  And the title is amended as follows:
  374         Delete lines 21 - 50
  375  and insert:
  376         rate filings; amending s. 627.0628, F.S.; revising the
  377         membership of the Florida Commission on Hurricane Loss
  378         Projection Methodology; amending s. 627.0629, F.S.;
  379         authorizing insurers to file certain insurance rating
  380         plans based on certain windstorm mitigation
  381         construction standards, if certain requirements are
  382         met; amending s. 627.0665, F.S.; revising the
  383         timeframe for notification of premium increases by
  384         insurers who have automatic bank withdrawal agreements
  385         with insureds; revising notification requirements for
  386         such insurers to include notices when withdrawal
  387         amounts increase above a specified threshold; amending
  388         s. 627.351, F.S.; revising conditions for determining
  389         the ineligibility of condominiums for wind-only
  390         coverage; amending s. 627.421, F.S.; deleting a
  391         requirement for electronic transmissions of certain
  392         documents to include specified notices; deleting a
  393         requirement that paper copies of policies be provided
  394         upon request; amending ss. 627.701 and 627.712, F.S.;
  395         revising policyholder acknowledgment statement
  396         requirements for property insurance policies having
  397         certain hurricane deductibles or windstorm or contents
  398         coverage exclusions, respectively; amending s.
  399         627.7152, F.S.; revising the definition of the term
  400         “assignment agreement”; specifying the addresses to
  401         which a notice of intent must be served; amending s.
  402         627.7276, F.S.; revising notice requirements for motor
  403         vehicle policies that do not provide coverage for
  404         bodily injury and property damage liability; amending
  405         ss. 634.317 and 634.419, F.S.; authorizing licensed
  406         personal lines or general lines agents to solicit,
  407         negotiate, advertise, or sell home warranty contracts
  408         and