PCS for HB 359 (2020): An act relating to insurance
Summary
PCS for HB 359 (2020), a bill to be entitled an act relating to insurance, from the Insurance Banking Subcommittee. The title lists amendments to s. 319.30, F.S., on electronic signatures submitted through insurance companies, to s. 624.155, F.S., on delivery of violation notices to insurers and tolling of the statute of limitations for civil remedy actions, and to s. 627.70132, F.S., on notice of property insurance claims. It also lists s. 627.714, F.S., specifying the maximum amount of loss assessment coverage for certain unit owners. Section 11 states that the act takes effect upon becoming a law.
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“PCS for HB 359 (2020): An act relating to insurance.”
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for HB 359 2020
1 A bill to be entitled
2 An act relating to insurance; amending s. 319.30,
3 F.S.; revising the requirements for certain electronic
4 signatures submitted through insurance companies;
5 amending s. 624.155, F.S.; providing requirements for
6 the delivery of certain violation notices to insurers;
7 revising the circumstances under which an action may
8 not lie; revising the timeframe during which the
9 statute of limitations for certain actions for civil
10 remedy is tolled; amending ss. 624.307 and 624.315,
11 F.S.; authorizing the releases of specified
12 information obtained by the Department of Financial
13 Services and the office; providing an exception;
14 amending s. 627.062, F.S.; requiring an extension of
15 the office's review period of insurance rate standards
16 under certain circumstances; deleting obsolete
17 language; prohibiting the office from disapproving a
18 rate for homeowners’ insurance under certain
19 circumstances; amending ss. 627.0651 and 627.410,
20 F.S.; requiring an extension of the office's review
21 period of insurance rate standards under certain
22 circumstances; amending s. 627.70132, F.S.; revising
23 the types of claims, supplemental claims, or reopened
24 claims under a property insurance policy that are
25 barred unless notice is given to the insurer within a
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26 specified timeframe; revising the timeframe of such
27 claims; revising the definition of the terms
28 "supplemental claim" and "reopened claim"; amending s.
29 627.7015, F.S.; revising the timeframe for insurers'
30 notification of certain mediation program; conforming
31 provisions to changes made by the act; amending s.
32 627.714, F.S.; specifying the maximum amount of loss
33 assessment coverage for certain unit owners; providing
34 an effective date.
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. Paragraph (d) of subsection (3) of section
39 319.30, Florida Statutes, is amended to read:
40 319.30 Definitions; dismantling, destruction, change of
41 identity of motor vehicle or mobile home; salvage.—
42 (3)
43 (d) An electronic signature that is consistent with
44 chapter 668 satisfies any signature required under this
45 subsection, except that an electronic signature on an odometer
46 disclosure submitted through an insurance company must be
47 executed using an electronic signature, as defined in s.
48 668.003(4), that uses a system providing an Identity Assurance
49 Level, Authenticator Assurance Level, and Federation Assurance
50 Level, as described in the National Institute of Standards and
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51 Technology Special Publication 800-63-3, as of December 1, 2017,
52 that are equivalent to or greater than:
53 1. Level 2, for each level, for a certificate of
54 destruction or.
55 2. Level 2 3, for each level, for a salvage certificate of
56 title.
57 Section 2. Subsection (3) of section 624.155, Florida
58 Statutes, is amended to read:
59 624.155 Civil remedy.—
60 (3)(a) As a condition precedent to bringing an action
61 under this section, the department and the authorized insurer
62 must have been given 60 days' written notice of the violation.
63 Notice to the authorized insurer must be delivered to the name
64 and address designated by the insurer under s. 624.422(2).
65 (b) The notice shall be on a form provided by the
66 department and shall state with specificity the following
67 information, and such other information as the department may
68 require:
69 1. The statutory provision, including the specific
70 language of the statute, which the authorized insurer allegedly
71 violated.
72 2. The facts and circumstances giving rise to the
73 violation.
74 3. The name of any individual involved in the violation.
75 4. Reference to specific policy language that is relevant
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76 to the violation, if any. If the person bringing the civil
77 action is a third party claimant, she or he shall not be
78 required to reference the specific policy language if the
79 authorized insurer has not provided a copy of the policy to the
80 third party claimant pursuant to written request.
81 5. A statement that the notice is given in order to
82 perfect the right to pursue the civil remedy authorized by this
83 section.
84 (c) No action shall lie if, within 60 days after the
85 authorized insurer receives the filing notice pursuant to
86 paragraph (a), the damages are paid or the circumstances giving
87 rise to the violation are corrected.
88 (d) The authorized insurer that is the recipient of a
89 notice filed pursuant to this section shall report to the
90 department on the disposition of the alleged violation.
91 (e) The applicable statute of limitations for an action
92 under this section shall be tolled for a period of:
93 1. Sixty days after the date on which appraisal is invoked
94 by any party in a residential property insurance claim; and
95 2. Sixty-five 65 days after the date on which by the
96 mailing of the notice required under by this subsection or the
97 mailing of a subsequent notice required under by this subsection
98 is mailed.
99 (f) A notice required under this subsection may not be
100 filed within 60 days after appraisal is invoked by any party in
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101 a residential property insurance claim.
102 Section 3. Subsection (4) of section 624.307, Florida
103 Statutes, is amended to read:
104 624.307 General powers; duties.—
105 (4) The department and office may each collect, propose,
106 publish, and disseminate information relating to the subject
107 matter of any duties imposed upon it by law. Aggregate
108 information published or disseminated by the department or
109 office pursuant to the powers under this subsection may include
110 information covered by a notice of trade secret under subsection
111 624.4213(1), unless the information can be individually
112 extrapolated, in which case the information may not be published
113 or disseminated by the department or the office.
114 Section 4. Subsection (4) is added to section 624.315,
115 Florida Statutes, to read:
116 624.315 Department; annual report.—
117 (4) The office may include information covered by a notice
118 of trade secret under subsection 624.4213(1) in the report under
119 subsection (1) or make the information available under
120 subsection (2), unless the information can be individually
121 extrapolated, in which case the information may not be published
122 or disseminated by the department or the office.
123 Section 5. Paragraphs (a) and (j) of subsection (2) of
124 section 627.062, Florida Statutes, are amended to read:
125 627.062 Rate standards.—
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126 (2) As to all such classes of insurance:
127 (a) Insurers or rating organizations shall establish and
128 use rates, rating schedules, or rating manuals that allow the
129 insurer a reasonable rate of return on the classes of insurance
130 written in this state. A copy of rates, rating schedules, rating
131 manuals, premium credits or discount schedules, and surcharge
132 schedules, and changes thereto, must be filed with the office
133 under one of the following procedures:
134 1. If the filing is made at least 90 days before the
135 proposed effective date and is not implemented during the
136 office's review of the filing and any proceeding and judicial
137 review, such filing is considered a "file and use" filing. In
138 such case, the office shall finalize its review by issuance of a
139 notice of intent to approve or a notice of intent to disapprove
140 within 90 days after receipt of the filing. The notice of intent
141 to approve and the notice of intent to disapprove constitute
142 agency action for purposes of the Administrative Procedure Act.
143 Requests for supporting information, requests for mathematical
144 or mechanical corrections, or notification to the insurer by the
145 office of its preliminary findings does not toll the 90-day
146 period during any such proceedings and subsequent judicial
147 review. The rate shall be deemed approved if the office does not
148 issue a notice of intent to approve or a notice of intent to
149 disapprove within 90 days after receipt of the filing.
150 2. If the filing is not made in accordance with
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151 subparagraph 1., such filing must be made as soon as
152 practicable, but within 30 days after the effective date, and is
153 considered a "use and file" filing. An insurer making a "use and
154 file" filing is potentially subject to an order by the office to
155 return to policyholders those portions of rates found to be
156 excessive, as provided in paragraph (h).
157 3. If the last day of the 90-day timeframe for the
158 issuance of a notice of intent under subparagraph 1. ends on a
159 weekend or a holiday specified in s. 110.117, the closure of the
160 office's review period shall be extended until the conclusion of
161 the next business day.
162 3. For all property insurance filings made or submitted
163 after January 25, 2007, but before May 1, 2012, an insurer
164 seeking a rate that is greater than the rate most recently
165 approved by the office shall make a "file and use" filing. For
166 purposes of this subparagraph, motor vehicle collision and
167 comprehensive coverages are not considered property coverages.
168 (j) With respect to residential property insurance rate
169 filings:,
170 1. The rate filing must account for mitigation measures
171 undertaken by policyholders to reduce hurricane losses.
172 2. The office may not disapprove a rate for homeowners’
173 insurance solely because the rate filing uses a modeling
174 indication that is the weighted or straight average of two or
175 more models currently found to be accurate or reliable pursuant
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176 to s. 627.0628.
177
178 The provisions of this subsection do not apply to workers'
179 compensation, employer's liability insurance, and motor vehicle
180 insurance.
181 Section 6. Paragraph (a) of subsection (1) of section
182 627.0651, Florida Statutes, is amended to read:
183 627.0651 Making and use of rates for motor vehicle
184 insurance.—
185 (1) Insurers shall establish and use rates, rating
186 schedules, or rating manuals to allow the insurer a reasonable
187 rate of return on motor vehicle insurance written in this state.
188 A copy of rates, rating schedules, and rating manuals, and
189 changes therein, shall be filed with the office under one of the
190 following procedures:
191 (a)1. If the filing is made at least 60 days before the
192 proposed effective date and the filing is not implemented during
193 the office's review of the filing and any proceeding and
194 judicial review, such filing shall be considered a "file and
195 use" filing. In such case, the office shall initiate proceedings
196 to disapprove the rate and so notify the insurer or shall
197 finalize its review within 60 days after receipt of the filing.
198 Notification to the insurer by the office of its preliminary
199 findings shall toll the 60-day period during any such
200 proceedings and subsequent judicial review. The rate shall be
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201 deemed approved if the office does not issue notice to the
202 insurer of its preliminary findings within 60 days after the
203 filing.
204 2. If the last day of the 60-day timeframe for the
205 office's notification or review finalization under subparagraph
206 1. ends on a weekend or a holiday specified in s. 110.117, the
207 closure of the office's review period shall be extended until
208 the conclusion of the next business day.
209 Section 7. Subsection (2) of section 627.410, Florida
210 Statutes, is amended to read:
211 627.410 Filing, approval of forms.—
212 (2)(a) Every such filing must be made at least 30 days in
213 advance of any such use or delivery. At the expiration of the 30
214 days, the form filed will be deemed approved unless prior
215 thereto it has been affirmatively approved or disapproved by
216 order of the office. The approval of such form by the office
217 constitutes a waiver of any unexpired portion of such waiting
218 period. The office may extend the period within which it may
219 affirmatively approve or disapprove such form by up to 15 days
220 by giving notice of such extension before expiration of the
221 initial 30-day period. At the expiration of such extended
222 period, and in the absence of prior affirmative approval or
223 disapproval, such form shall be deemed approved.
224 (b) If the last day of the initial 30-day period, or the
225 last day of the 15-day extension authorized by the office, under
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226 paragraph (a) ends on a weekend or a holiday specified in s.
227 110.117, the closure of the review period shall be extended
228 until the conclusion of the next business day.
229 Section 8. Section 627.70132, Florida Statutes, is amended
230 to read:
231 627.70132 Notice of property insurance windstorm or
232 hurricane claim.—Except for a sinkhole loss as defined in
233 627.706(2), a claim, supplemental claim, or reopened claim under
234 an insurance policy that provides property insurance, as defined
235 in s. 624.604, for loss or damage caused by the peril of
236 windstorm or hurricane is barred unless notice of the claim,
237 supplemental claim, or reopened claim is was given to the
238 insurer in accordance with the terms of the policy within 3
239 years after the date of loss the hurricane first made landfall
240 or the windstorm caused the covered damage. For purposes of this
241 section, the term "supplemental claim" or "reopened claim" means
242 any additional claim for recovery from the insurer for losses
243 from the same hurricane or windstorm which the insurer has
244 previously adjusted pursuant to the initial claim. This section
245 does not affect any applicable limitation on civil actions
246 provided in s. 95.11 for claims, supplemental claims, or
247 reopened claims timely filed under this section.
248 Section 9. Subsection (2) and paragraph (e) of subsection
249 (9) of section 627.7015, Florida Statutes, are amended to read:
250 627.7015 Alternative procedure for resolution of disputed
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251 property insurance claims.—
252 (2) At the time of issuance and renewal of a policy or at
253 the time a first-party claim within the scope of this section is
254 filed by the policyholder, The insurer shall notify the
255 policyholder of its right to participate in the mediation
256 program under this section and shall choose any of the following
257 times to provide the notification:
258 (a) Upon the issuance and renewal of a policy; or
259 (b) At the time the policyholder:
260 1. Disputes a claim; or
261 2. Files a first-party claim within the scope of this
262 section.
263
264 The department shall prepare a consumer information pamphlet for
265 distribution to persons participating in mediation.
266 (9) For purposes of this section, the term "claim" refers
267 to any dispute between an insurer and a policyholder relating to
268 a material issue of fact other than a dispute:
269 (e) With respect to a property windstorm or hurricane loss
270 that does not comply with s. 627.70132.
271 Section 10. Subsection (2) of section 627.714, Florida
272 Statutes, is amended to read:
273 627.714 Residential condominium unit owner coverage; loss
274 assessment coverage required.—
275 (2) The maximum amount of any unit owner's loss assessment
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276 coverage that can be assessed for any loss shall be an amount
277 equal to that unit owner's loss assessment coverage limit in
278 effect 1 day before the date of the occurrence that gave rise to
279 the loss. Such coverage applies to any loss assessment
280 regardless of the date of the assessment by the association. Any
281 changes to the limits of a unit owner's coverage for loss
282 assessments made on or after the day before the date of the
283 occurrence do are not apply applicable to such loss.
284 Section 11. This act shall take effect upon becoming a
285 law.
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