Florida Senate - 2024 CS for CS for SB 1104
By the Committees on Rules; and Judiciary; and Senator Bradley
595-03793-24 20241104c2
1 A bill to be entitled
2 An act relating to policy cancellations and
3 nonrenewals by property insurers; amending s.
4 626.9201, F.S.; prohibiting insurers from canceling
5 and nonrenewing, within certain timeframes, policies
6 covering personal residential or commercial
7 residential properties damaged by hurricanes or wind
8 losses; providing exceptions; providing construction;
9 authorizing the Financial Services Commission to adopt
10 rules and the Commissioner of Insurance Regulation to
11 issue certain orders; authorizing the Commissioner of
12 Insurance Regulation to waive certain provisions;
13 providing construction; requiring that certain
14 policies contain similar terms under certain
15 circumstances; amending s. 627.4133, F.S.; prohibiting
16 insurers from canceling and nonrenewing, within
17 certain timeframes, policies covering personal
18 residential or commercial residential properties
19 damaged by hurricanes or wind losses; providing that
20 such prohibition applies to flood damages caused by
21 hurricanes under certain circumstances; providing that
22 an insurer may not cancel personal residential or
23 commercial residential property insurance policies
24 until certain repairs are made or a specified policy
25 renewal expires; providing that certain claims for
26 loss or damage will not be covered under an extended
27 or renewed policy; providing applicability; revising
28 exceptions; authorizing the Commissioner of Insurance
29 to waive certain provisions; providing construction;
30 deleting applicability; revising construction;
31 requiring that certain policies contain similar terms
32 under certain circumstances; providing an effective
33 date.
34
35 Be It Enacted by the Legislature of the State of Florida:
36
37 Section 1. Paragraph (c) is added to subsection (2) of
38 section 626.9201, Florida Statutes, to read:
39 626.9201 Notice of cancellation or nonrenewal.—
40 (2) An insurer issuing a policy providing coverage for
41 property, casualty, surety, or marine insurance must give the
42 named insured written notice of cancellation or termination
43 other than nonrenewal at least 45 days before the effective date
44 of the cancellation or termination, including in the written
45 notice the reasons for the cancellation or termination, except
46 that:
47 (c) An insurer may not cancel or nonrenew a personal
48 residential or commercial residential property insurance policy
49 covering a dwelling or residential property located in this
50 state:
51 1. For a period of 90 days after the dwelling or
52 residential property has been repaired, if such property has
53 been damaged as a result of a hurricane or wind loss that is the
54 subject of the declaration of emergency pursuant to s. 252.36
55 and the filing of an order by the Commissioner of Insurance
56 Regulation. Damage under this subsection includes flood damage
57 caused by a hurricane if flood is a covered peril under the
58 personal residential or commercial residential property
59 insurance policy. If flood is not a covered peril under the
60 personal residential or commercial residential property
61 insurance policy, and the property has been damaged as a result
62 of flood caused by a hurricane, an insurer may not cancel or
63 nonrenew the personal residential or commercial residential
64 property insurance policy until the earlier of when the property
65 has been repaired or the expiration of one subsequent renewal of
66 the policy that was in force at the time of the loss. If an
67 insurer is required to extend or renew a policy pursuant to this
68 subparagraph, any claim for loss or damage arising from
69 unrepaired damage as a result of flood caused by a hurricane
70 will not be covered under the extended or renewed policy. Such
71 loss or damage will be excluded from the extended or renewed
72 policy regardless of any other cause or event that contributes
73 concurrently or in any sequence to the loss. When flood is not a
74 covered peril under the personal residential or commercial
75 residential property insurance policy, the requirements under
76 this subparagraph to extend or renew the policy do not apply if
77 the insurer has no actual knowledge of the flood damage or if
78 the flood damage, along with the physical evidence of the
79 damage, is not communicated to the insurer before the expiration
80 of the policy.
81 2. However, an insurer or agent may cancel or nonrenew such
82 a policy before the repair of the dwelling or residential
83 property:
84 a. Upon 10 days’ notice:
85 (I) For nonpayment of premium; or
86 (II) If the named insured no longer has an insurable
87 interest in the property; or
88 b. Upon 45 days’ notice:
89 (I) For a material misstatement or fraud related to the
90 claim;
91 (II) If the insurer determines that the insured has
92 unreasonably caused a delay in the repair of the dwelling;
93 (III) If, after the expiration of the declaration of
94 emergency pursuant to s. 252.36 and the order by the
95 Commissioner of Insurance Regulation, the insurer has made a
96 reasonable written inquiry to the insured as to the status of
97 the repairs, and the insured has failed to respond within 30
98 calendar days to provide information that is responsive to the
99 inquiry, including the reasons for any delay in completing
100 repairs, to the address or e-mail account designated by the
101 insurer or its agent; or
102 (IV) If the insurer has paid the policy limits for a loss
103 to the insured dwelling under a personal residential property
104 insurance policy, or policy limits for a loss to each insured
105 structure that was damaged under a commercial residential
106 property insurance policy.
107 3. If the insurer elects to nonrenew a policy covering a
108 property that has been damaged, the insurer must provide at
109 least 90 days’ notice to the insured that the insurer intends to
110 nonrenew the policy 90 days after the dwelling or residential
111 property has been repaired. This subsection does not prevent the
112 insurer from canceling or nonrenewing the policy 90 days after
113 the repairs are complete for the same reasons the insurer would
114 otherwise have canceled or nonrenewed the policy but for the
115 limitations of this subsection. The commission may adopt rules,
116 and the Commissioner of Insurance Regulation may issue orders,
117 necessary to implement this subsection. The Commissioner of
118 Insurance Regulation may also waive any of the provisions of
119 this paragraph upon approval of a petition filed by an insurer
120 requiring relief due to solvency concerns or other factors that
121 could harm policyholders if the provisions of this paragraph
122 were enforced upon the insurer.
123 4. For purposes of this paragraph:
124 a. A structure is deemed to be repaired:
125 (I) When substantially completed and restored to the extent
126 that it is insurable by Citizens Property Insurance Corporation
127 or by another authorized insurer or eligible surplus lines
128 insurer writing policies in this state; or
129 (II) When one of the following persons has inspected and
130 certified or attested to the completion of the repairs:
131 (A) A home inspector licensed under s. 468.8314;
132 (B) A building code inspector certified under s. 468.607;
133 (C) A general, building, or residential contractor licensed
134 under s. 489.111;
135 (D) A professional engineer licensed under s. 471.015; or
136 (E) A professional architect licensed under s. 481.213.
137 b. If a policy is extended or renewed to comply with this
138 paragraph or with any other provision of the Commissioner of
139 Insurance Regulation’s order, the policy must contain similar
140 policy terms as the policy being extended or renewed. However,
141 this paragraph does not impact current law with regard to the
142 rates insurers may charge for policies extended or renewed under
143 this paragraph.
144 5. This subsection does not affect the provisions of s.
145 95.11 or s. 627.70132.
146 6. This paragraph is not intended to revise or modify any
147 provision of an emergency order issued by the office before July
148 1, 2024.
149 Section 2. Paragraph (e) of subsection (2) of section
150 627.4133, Florida Statutes, is amended to read:
151 627.4133 Notice of cancellation, nonrenewal, or renewal
152 premium.—
153 (2) With respect to any personal lines or commercial
154 residential property insurance policy, including, but not
155 limited to, any homeowner, mobile home owner, farmowner,
156 condominium association, condominium unit owner, apartment
157 building, or other policy covering a residential structure or
158 its contents:
159 (e)1. An authorized insurer may not cancel or nonrenew a
160 personal residential or commercial residential property
161 insurance policy covering a dwelling or residential property
162 located in this state:
163 a. For a period of 90 days after the dwelling or
164 residential property has been repaired, if such property has
165 been damaged as a result of a hurricane or wind loss that is the
166 subject of the declaration of emergency pursuant to s. 252.36
167 and the filing of an order by the Commissioner of Insurance
168 Regulation. Damage under this sub-subparagraph includes flood
169 damage caused by a hurricane if flood is a covered peril under
170 the personal residential or commercial residential property
171 insurance policy. If flood is not a covered peril under the
172 personal residential or commercial residential property
173 insurance policy, and the property has been damaged as a result
174 of flood caused by a hurricane, an insurer may not cancel or
175 nonrenew the personal residential or commercial residential
176 property insurance policy until the earlier of when the property
177 has been repaired or the expiration of one subsequent renewal of
178 the policy that was in force at the time of loss. If an insurer
179 is required to extend or renew a policy pursuant to this sub
180 subparagraph, any claim for loss or damage arising from
181 unrepaired damage as a result of flood caused by a hurricane
182 will not be covered under the extended or renewed policy. Such
183 loss or damage will be excluded from the extended or renewed
184 policy regardless of any other cause or event that contributes
185 concurrently or in any sequence to the loss. When flood is not a
186 covered peril under the personal residential or commercial
187 residential property insurance policy, the requirements under
188 this sub-subparagraph to extend or renew the policy do not apply
189 if the insurer has no actual knowledge of the flood damage or if
190 the flood damage, along with the physical evidence of the
191 damage, is not communicated to the insurer before the expiration
192 of the policy.
193 b. Until the earlier of when the dwelling or residential
194 property has been repaired or 1 year after the insurer issues
195 the final claim payment, if such property was damaged by any
196 covered peril and sub-subparagraph a. does not apply.
197 c. The restrictions on cancellation and nonrenewal in sub
198 subparagraph b. are not applicable to loss or damage to the
199 insured property that is valued at less than the applicable
200 deductible for a personal residential property insurance policy
201 or less than the applicable deductible for a commercial
202 residential insurance policy.
203 2. However, an insurer or agent may cancel or nonrenew such
204 a policy before prior to the repair of the dwelling or
205 residential property:
206 a. Upon 10 days’ notice:
207 (I) For nonpayment of premium; or
208 (II) If the named insured no longer has an insurable
209 interest in the property; or
210 b. Upon 45 days’ notice:
211 (I) For a material misstatement or fraud related to the
212 claim;
213 (II) If the insurer determines that the insured has
214 unreasonably caused a delay in the repair of the dwelling; or
215 (III) If, after the expiration of the declaration of
216 emergency pursuant to s. 252.36 and the order by the
217 Commissioner of Insurance Regulation, the insurer has made a
218 reasonable written inquiry to the insured as to the status of
219 the repairs and the insured has failed to respond within 30
220 calendar days to provide information that is responsive to the
221 inquiry, including the reasons for any delay in completing
222 repairs, to the address or e-mail account designated by the
223 insurer or its agent; or
224 (IV) If the insurer has paid policy limits for a loss to
225 the insured dwelling under a personal residential policy, or
226 policy limits for a loss to each insured structure that was
227 damaged under a commercial residential policy.
228 3. If the insurer elects to nonrenew a policy covering a
229 property that has been damaged, the insurer must shall provide
230 at least 90 days’ notice to the insured that the insurer intends
231 to nonrenew the policy 90 days after the dwelling or residential
232 property has been repaired. Nothing in This paragraph does not
233 shall prevent the insurer from canceling or nonrenewing the
234 policy 90 days after the repairs are complete for the same
235 reasons the insurer would otherwise have canceled or nonrenewed
236 the policy but for the limitations of subparagraph 1. The
237 Financial Services Commission may adopt rules, and the
238 Commissioner of Insurance Regulation may issue orders, necessary
239 to implement this paragraph. The Commissioner of Insurance
240 Regulation may also waive any of the provisions of this
241 paragraph upon approval of a petition filed by an insurer
242 requesting relief due to solvency concerns or other factors that
243 could harm policyholders if the provisions of this paragraph
244 were enforced upon the insurer.
245 4. This paragraph is not intended to revise or modify any
246 provision of an emergency order issued by the office before July
247 1, 2024 This paragraph shall also apply to personal residential
248 and commercial residential policies covering property that was
249 damaged as the result of Hurricane Ian or Hurricane Nicole.
250 5. For purposes of this paragraph:
251 a. A structure is deemed to be repaired:
252 (I) When substantially completed and restored to the extent
253 that it is insurable by Citizens Property Insurance Corporation
254 or by another authorized insurer writing policies in this state;
255 or
256 (II) When one of the following persons have inspected and
257 certified or attested to the completion of the repairs:
258 (A) A home inspector licensed under s. 468.8314;
259 (B) A building code inspector certified under s. 468.607;
260 (C) A general, building, or residential contractor licensed
261 under s. 489.111;
262 (D) A professional engineer licensed under s. 471.015; or
263 (E) A professional architect licensed under s. 481.213.
264 b. The term “insurer” means an authorized insurer.
265 c. If a policy is extended or renewed to comply with this
266 paragraph or with any other provision of the Commissioner of
267 Insurance Regulation’s order, the policy must contain similar
268 policy terms as the policy being extended or renewed unless the
269 insurer has updated approved forms that will apply to all
270 insureds with the same endorsement. However, this paragraph does
271 not impact current law with regard to the rates insurers may
272 charge for policies extended or renewed under this paragraph.
273 6. This paragraph does not affect the provisions of s.
274 95.11 or. s. 627.70132.
275 Section 3. This act shall take effect July 1, 2024.