PCS for HB 305 (2021): An act relating to insurance
Summary
A proposed committee substitute, PCS for HB 305, of 2021, a bill to be entitled an act relating to insurance, running 39 pages. It would authorize the Office of Insurance Regulation to examine insurer affiliates, require property insurers to include closed-claim data in quarterly reports, and revise the plan of operation and rate provisions for Citizens Property Insurance Corporation. It amends section 627.70132 on notice deadlines for property insurance claims and creates section 627.70152, requiring written notice to an insurer before suit is filed under an insurance policy. A subsection on attorney fees addresses a court dismissal of a claimant's suit, and Section 11 states that the act takes effect July 1, 2021.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“PCS for HB 305 (2021): An act relating to insurance.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-3100-insurance-banking-subcommittee-proposed-committee-bills-pcbs-908231a77b/
, SHA-256 e89a19b9d5f9e470154e94c32524d6f04c2a4bfd5dc3ed01b108167b28f7ea3b.Full text
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 305 2021
1 A bill to be entitled
2 An act relating to insurance; amending s. 624.316,
3 F.S.; authorizing the Office of Insurance Regulation
4 to examine insurer affiliates; amending s. 624.318,
5 F.S.; requiring insurer affiliates to provide certain
6 items and information to the office during examination
7 or investigation; amending s. 624.424, F.S.; requiring
8 property insurers to include certain data regarding
9 closed claims in their quarterly reports to the
10 office; requiring insurers to provide information
11 regarding payments to affiliates upon request by the
12 office; requiring the office to consider certain costs
13 in determining whether payments made by an insurer to
14 an affiliate are fair and reasonable; amending s.
15 626.7451, F.S; requiring that managing general agents
16 enter into specified contracts with insurers even when
17 the managing general agents control, or are controlled
18 by, the insurers; amending s. 626.7452, F.S.;
19 providing that a managing general agent may be
20 examined as if it were the insurer even if the
21 managing general agent solely represents a single
22 domestic insurer; amending s. 627.351, F.S.; revising
23 a procedure that the plan of operation of Citizens
24 Property Insurance Corporation must provide; requiring
25 the corporation to include the costs of catastrophe
Page 1 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
26 reinsurance to its projected 100-year probable maximum
27 loss in its rate calculations even if the corporation
28 does not purchase such reinsurance; deleting obsolete
29 language relating to the corporation's rate filings;
30 requiring the corporation to annually implement a rate
31 increase that does not exceed a certain percent for
32 specified years; prohibiting the corporation from
33 seeking approval by the office for a rate reduction;
34 providing limits on salaries and salary raises of
35 current employees of the corporation and employees
36 hired by the corporation on or after a specified date;
37 amending s. 627.3518, F.S.; conforming a cross-
38 reference; amending s. 627.70132, F.S.; providing that
39 claims, supplemental claims, and reopened claims under
40 certain property insurance policies for loss or damage
41 caused by perils are barred unless notice is given
42 within a specified timeframe; revising the timeframe
43 for notice for loss or damage caused by windstorm or
44 hurricane; providing date of loss for weather-related
45 events; revising the definition of the term
46 "supplemental claim" or "reopened claim" to include
47 all perils; amending s. 627.7015, F.S.; conforming a
48 provision to changes made by the act; creating s.
49 627.70152, F.S.; providing applicability; providing
50 definitions; requiring that written notice be provided
Page 2 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
51 to an insurer before suit is filed under an insurance
52 policy; requiring that certain information be included
53 in the notice; requiring that notice be served within
54 specified time limits; requiring that an insurer
55 provide a response to the notice within specified
56 timeframe; providing for tolling of time if
57 appropriate; requiring an insurer to investigate,
58 review, and evaluate a dispute stated in the notice;
59 requiring an insurer to investigate each claim in the
60 notice in accordance with the Florida Insurance Code;
61 requiring a court to dismiss without prejudice a
62 claimant's suit under certain circumstances; providing
63 for evidentiary requirements regarding the notice;
64 prohibiting a court from awarding attorney fees to a
65 claimant under certain circumstances; providing an
66 effective date.
67
68 Be It Enacted by the Legislature of the State of Florida:
69
70 Section 1. Paragraph (a) of subsection (2) of section
71 624.316, Florida Statutes, is amended to read:
72 Section 624.316 Examination of insurers.—
73 (2)(a) Except as provided in paragraph (f), the office
74 may examine each insurer, including affiliates, as often as may
75 be warranted for the protection of the policyholders and in the
Page 3 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
76 public interest, and shall examine each domestic insurer not
77 less frequently than once every 5 years. The examination shall
78 cover the preceding 5 fiscal years of the insurer and shall be
79 commenced within 12 months after the end of the most recent
80 fiscal year being covered by the examination. The examination
81 may cover any period of the insurer's operations since the last
82 previous examination. The examination may include examination
83 of events subsequent to the end of the most recent fiscal year
84 and the events of any prior period that affect the present
85 financial condition of the insurer.
86 Section 2. Subsection (2) of section 624.318, Florida
87 Statutes, is amended to read:
88 624.318 Conduct of examination or investigation; access to
89 records; correction of accounts; appraisals.—
90 (2) Every person, including an affiliate, being examined
91 or investigated, and its officers, attorneys, employees, agents,
92 and representatives, shall make freely available to the
93 department or office or its examiners or investigators the
94 accounts, records, documents, files, information, assets, and
95 matters in their possession or control relating to the subject
96 of the examination or investigation. An agent who provides other
97 products or services or maintains customer information not
98 related to insurance must maintain records relating to insurance
99 products and transactions separately if necessary to give the
100 department or office access to such records. If records relating
Page 4 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
101 to the insurance transactions are maintained by an agent on
102 premises owned or operated by a third party, the agent and the
103 third party must provide access to the records by the department
104 or office.
105 Section 3. Subsection (11) of section 624.424, Florida
106 Statutes, is renumbered as subsection (12), and a new subsection
107 (11) and subsection (13) are added to that section, to read:
108 624.424 Annual statement and other information.—
109 (11) Each authorized insurer or insurer group issuing
110 personal lines or commercial lines residential property
111 insurance policies in this state shall file with the office on a
112 quarterly basis in conjunction with the statements required by
113 paragraph (1)(a) a supplemental report on an individual and
114 group basis for closed claims. The report must be on a form
115 prescribed by the commission and must include the following
116 information for each claim closed, excluding liability only
117 claims, within the reporting period in this state:
118 (a) Unique claim identification number.
119 (b) Type of policy.
120 (c) Zip code of the property where the claim occurred.
121 (d) County where the claim occurred.
122 (e) Date of loss.
123 (f) Peril or type of loss.
124 (g) Date reported to insurer.
125 (h) Initial date closed.
Page 5 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
126 (i) Date claim most recently reopened, if applicable.
127 (j) Most recent date closed.
128 (k) Public adjuster on the claim.
129 (l) Attorney for the claimant.
130 (m) Water mitigation firm used.
131 (n) Total indemnity paid by the insurer.
132 (o) Total loss adjustment expenses paid by the insurer.
133 (p) Amount paid for insured's attorney fees.
134 (q) Contingency fee multiplier requested to be applied to
135 the calculation of the insured's attorney fees payment, and, if
136 so, contingency risk multiplier requested.
137 (r) Contingency risk multiplier applied to the calculation
138 of the insured's attorney fees payment, and, if so, contingency
139 fee multiplier applied.
140 (s) Other information deemed necessary by the commission
141 to provide the office with the ability to track litigation and
142 claims trends occurring in the property market.
143 (13) Each insurer doing business in this state which pays
144 a fee, commission, or other financial consideration or payment
145 to any affiliate directly or indirectly is required upon request
146 to provide to the office any information the office deems
147 necessary. The fee, commission, or other financial consideration
148 or payment to any affiliate must be fair and reasonable. In
149 determining whether the fee, commission, or other financial
150 consideration or payment is fair and reasonable, the office
Page 6 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
151 shall consider, among other things, the actual cost of the
152 service being provided.
153 Section 4. Subsection (6) of section 626.7451, Florida
154 Statutes, is amended to read:
155 626.7451 Managing general agents; required contract
156 provisions.—No person acting in the capacity of a managing
157 general agent shall place business with an insurer unless there
158 is in force a written contract between the parties which sets
159 forth the responsibility for a particular function, specifies
160 the division of responsibilities, and contains the following
161 minimum provisions:
162 (6) The contract shall specify appropriate underwriting
163 guidelines, including:
164 (a) The maximum annual premium volume.
165 (b) The basis of the rates to be charged.
166 (c) The types of risks which may be written.
167 (d) Maximum limits of liability.
168 (e) Applicable exclusions.
169 (f) Territorial limitations.
170 (g) Policy cancellation provisions.
171 (h) The maximum policy period.
172
173 This subsection shall not apply when the managing general agent
174 is a controlled or controlling person.
175
Page 7 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
176 For the purposes of this section and ss. 626.7453 and 626.7454,
177 the term "controlling person" or "controlling" has the meaning
178 set forth in s. 625.012(5)(b)1., and the term "controlled
179 person" or "controlled" has the meaning set forth in s.
180 625.012(5)(b)2.
181 Section 5. Section 626.7452, Florida Statutes, is amended
182 to read:
183 Section 626.7452 Managing general agents; examination
184 authority.—The acts of the managing general agent are considered
185 to be the acts of the insurer on whose behalf it is acting. A
186 managing general agent may be examined as if it were the insurer
187 except in the case where the managing general agent solely
188 represents a single domestic insurer.
189 Section 6. Paragraphs (c) and (n) of subsection (6) of
190 section 627.351, Florida Statutes, are amended, and a new
191 paragraph (jj) is added to subsection (6) of that section, to
192 read:
193 627.351 Insurance risk apportionment plans.—
194 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
195 (c) The corporation's plan of operation:
196 1. Must provide for adoption of residential property and
197 casualty insurance policy forms and commercial residential and
198 nonresidential property insurance forms, which must be approved
199 by the office before use. The corporation shall adopt the
200 following policy forms:
Page 8 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
201 a. Standard personal lines policy forms that are
202 comprehensive multiperil policies providing full coverage of a
203 residential property equivalent to the coverage provided in the
204 private insurance market under an HO-3, HO-4, or HO-6 policy.
205 b. Basic personal lines policy forms that are policies
206 similar to an HO-8 policy or a dwelling fire policy that provide
207 coverage meeting the requirements of the secondary mortgage
208 market, but which is more limited than the coverage under a
209 standard policy.
210 c. Commercial lines residential and nonresidential policy
211 forms that are generally similar to the basic perils of full
212 coverage obtainable for commercial residential structures and
213 commercial nonresidential structures in the admitted voluntary
214 market.
215 d. Personal lines and commercial lines residential
216 property insurance forms that cover the peril of wind only. The
217 forms are applicable only to residential properties located in
218 areas eligible for coverage under the coastal account referred
219 to in sub-subparagraph (b)2.a.
220 e. Commercial lines nonresidential property insurance
221 forms that cover the peril of wind only. The forms are
222 applicable only to nonresidential properties located in areas
223 eligible for coverage under the coastal account referred to in
224 sub-subparagraph (b)2.a.
225 f. The corporation may adopt variations of the policy
Page 9 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
226 forms listed in sub-subparagraphs a.-e. which contain more
227 restrictive coverage.
228 g. Effective January 1, 2013, the corporation shall offer
229 a basic personal lines policy similar to an HO-8 policy with
230 dwelling repair based on common construction materials and
231 methods.
232 2. Must provide that the corporation adopt a program in
233 which the corporation and authorized insurers enter into quota
234 share primary insurance agreements for hurricane coverage, as
235 defined in s. 627.4025(2)(a), for eligible risks, and adopt
236 property insurance forms for eligible risks which cover the
237 peril of wind only.
238 a. As used in this subsection, the term:
239 (I) "Quota share primary insurance" means an arrangement
240 in which the primary hurricane coverage of an eligible risk is
241 provided in specified percentages by the corporation and an
242 authorized insurer. The corporation and authorized insurer are
243 each solely responsible for a specified percentage of hurricane
244 coverage of an eligible risk as set forth in a quota share
245 primary insurance agreement between the corporation and an
246 authorized insurer and the insurance contract. The
247 responsibility of the corporation or authorized insurer to pay
248 its specified percentage of hurricane losses of an eligible
249 risk, as set forth in the agreement, may not be altered by the
250 inability of the other party to pay its specified percentage of
Page 10 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
251 losses. Eligible risks that are provided hurricane coverage
252 through a quota share primary insurance arrangement must be
253 provided policy forms that set forth the obligations of the
254 corporation and authorized insurer under the arrangement,
255 clearly specify the percentages of quota share primary insurance
256 provided by the corporation and authorized insurer, and
257 conspicuously and clearly state that the authorized insurer and
258 the corporation may not be held responsible beyond their
259 specified percentage of coverage of hurricane losses.
260 (II) "Eligible risks" means personal lines residential and
261 commercial lines residential risks that meet the underwriting
262 criteria of the corporation and are located in areas that were
263 eligible for coverage by the Florida Windstorm Underwriting
264 Association on January 1, 2002.
265 b. The corporation may enter into quota share primary
266 insurance agreements with authorized insurers at corporation
267 coverage levels of 90 percent and 50 percent.
268 c. If the corporation determines that additional coverage
269 levels are necessary to maximize participation in quota share
270 primary insurance agreements by authorized insurers, the
271 corporation may establish additional coverage levels. However,
272 the corporation's quota share primary insurance coverage level
273 may not exceed 90 percent.
274 d. Any quota share primary insurance agreement entered
275 into between an authorized insurer and the corporation must
Page 11 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
276 provide for a uniform specified percentage of coverage of
277 hurricane losses, by county or territory as set forth by the
278 corporation board, for all eligible risks of the authorized
279 insurer covered under the agreement.
280 e. Any quota share primary insurance agreement entered
281 into between an authorized insurer and the corporation is
282 subject to review and approval by the office. However, such
283 agreement shall be authorized only as to insurance contracts
284 entered into between an authorized insurer and an insured who is
285 already insured by the corporation for wind coverage.
286 f. For all eligible risks covered under quota share
287 primary insurance agreements, the exposure and coverage levels
288 for both the corporation and authorized insurers shall be
289 reported by the corporation to the Florida Hurricane Catastrophe
290 Fund. For all policies of eligible risks covered under such
291 agreements, the corporation and the authorized insurer must
292 maintain complete and accurate records for the purpose of
293 exposure and loss reimbursement audits as required by fund
294 rules. The corporation and the authorized insurer shall each
295 maintain duplicate copies of policy declaration pages and
296 supporting claims documents.
297 g. The corporation board shall establish in its plan of
298 operation standards for quota share agreements which ensure that
299 there is no discriminatory application among insurers as to the
300 terms of the agreements, pricing of the agreements, incentive
Page 12 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
301 provisions if any, and consideration paid for servicing policies
302 or adjusting claims.
303 h. The quota share primary insurance agreement between the
304 corporation and an authorized insurer must set forth the
305 specific terms under which coverage is provided, including, but
306 not limited to, the sale and servicing of policies issued under
307 the agreement by the insurance agent of the authorized insurer
308 producing the business, the reporting of information concerning
309 eligible risks, the payment of premium to the corporation, and
310 arrangements for the adjustment and payment of hurricane claims
311 incurred on eligible risks by the claims adjuster and personnel
312 of the authorized insurer. Entering into a quota sharing
313 insurance agreement between the corporation and an authorized
314 insurer is voluntary and at the discretion of the authorized
315 insurer.
316 3. May provide that the corporation may employ or
317 otherwise contract with individuals or other entities to provide
318 administrative or professional services that may be appropriate
319 to effectuate the plan. The corporation may borrow funds by
320 issuing bonds or by incurring other indebtedness, and shall have
321 other powers reasonably necessary to effectuate the requirements
322 of this subsection, including, without limitation, the power to
323 issue bonds and incur other indebtedness in order to refinance
324 outstanding bonds or other indebtedness. The corporation may
325 seek judicial validation of its bonds or other indebtedness
Page 13 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
326 under chapter 75. The corporation may issue bonds or incur other
327 indebtedness, or have bonds issued on its behalf by a unit of
328 local government pursuant to subparagraph (q)2. in the absence
329 of a hurricane or other weather-related event, upon a
330 determination by the corporation, subject to approval by the
331 office, that such action would enable it to efficiently meet the
332 financial obligations of the corporation and that such
333 financings are reasonably necessary to effectuate the
334 requirements of this subsection. The corporation may take all
335 actions needed to facilitate tax-free status for such bonds or
336 indebtedness, including formation of trusts or other affiliated
337 entities. The corporation may pledge assessments, projected
338 recoveries from the Florida Hurricane Catastrophe Fund, other
339 reinsurance recoverables, policyholder surcharges and other
340 surcharges, and other funds available to the corporation as
341 security for bonds or other indebtedness. In recognition of s.
342 10, Art. I of the State Constitution, prohibiting the impairment
343 of obligations of contracts, it is the intent of the Legislature
344 that no action be taken whose purpose is to impair any bond
345 indenture or financing agreement or any revenue source committed
346 by contract to such bond or other indebtedness.
347 4. Must require that the corporation operate subject to
348 the supervision and approval of a board of governors consisting
349 of nine individuals who are residents of this state and who are
350 from different geographical areas of the state, one of whom is
Page 14 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
351 appointed by the Governor and serves solely to advocate on
352 behalf of the consumer. The appointment of a consumer
353 representative by the Governor is deemed to be within the scope
354 of the exemption provided in s. 112.313(7)(b) and is in addition
355 to the appointments authorized under sub-subparagraph a.
356 a. The Governor, the Chief Financial Officer, the
357 President of the Senate, and the Speaker of the House of
358 Representatives shall each appoint two members of the board. At
359 least one of the two members appointed by each appointing
360 officer must have demonstrated expertise in insurance and be
361 deemed to be within the scope of the exemption provided in s.
362 112.313(7)(b). The Chief Financial Officer shall designate one
363 of the appointees as chair. All board members serve at the
364 pleasure of the appointing officer. All members of the board are
365 subject to removal at will by the officers who appointed them.
366 All board members, including the chair, must be appointed to
367 serve for 3-year terms beginning annually on a date designated
368 by the plan. However, for the first term beginning on or after
369 July 1, 2009, each appointing officer shall appoint one member
370 of the board for a 2-year term and one member for a 3-year term.
371 A board vacancy shall be filled for the unexpired term by the
372 appointing officer. The Chief Financial Officer shall appoint a
373 technical advisory group to provide information and advice to
374 the board in connection with the board's duties under this
375 subsection. The executive director and senior managers of the
Page 15 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
376 corporation shall be engaged by the board and serve at the
377 pleasure of the board. Any executive director appointed on or
378 after July 1, 2006, is subject to confirmation by the Senate.
379 The executive director is responsible for employing other staff
380 as the corporation may require, subject to review and
381 concurrence by the board.
382 b. The board shall create a Market Accountability Advisory
383 Committee to assist the corporation in developing awareness of
384 its rates and its customer and agent service levels in
385 relationship to the voluntary market insurers writing similar
386 coverage.
387 (I) The members of the advisory committee consist of the
388 following 11 persons, one of whom must be elected chair by the
389 members of the committee: four representatives, one appointed by
390 the Florida Association of Insurance Agents, one by the Florida
391 Association of Insurance and Financial Advisors, one by the
392 Professional Insurance Agents of Florida, and one by the Latin
393 American Association of Insurance Agencies; three
394 representatives appointed by the insurers with the three highest
395 voluntary market share of residential property insurance
396 business in the state; one representative from the Office of
397 Insurance Regulation; one consumer appointed by the board who is
398 insured by the corporation at the time of appointment to the
399 committee; one representative appointed by the Florida
400 Association of Realtors; and one representative appointed by the
Page 16 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
401 Florida Bankers Association. All members shall be appointed to
402 3-year terms and may serve for consecutive terms.
403 (II) The committee shall report to the corporation at each
404 board meeting on insurance market issues which may include rates
405 and rate competition with the voluntary market; service,
406 including policy issuance, claims processing, and general
407 responsiveness to policyholders, applicants, and agents; and
408 matters relating to depopulation.
409 5. Must provide a procedure for determining the
410 eligibility of a risk for coverage, as follows:
411 a. Subject to s. 627.3517, with respect to personal lines
412 residential risks, if the risk is offered coverage from an
413 authorized insurer at the insurer's approved rate under a
414 standard policy including wind coverage or, if consistent with
415 the insurer's underwriting rules as filed with the office, a
416 basic policy including wind coverage, for a new application to
417 the corporation for coverage, the risk is not eligible for any
418 policy issued by the corporation unless the premium for coverage
419 from the authorized insurer is more than 20 15 percent greater
420 than the premium for comparable coverage from the corporation.
421 Whenever an offer of coverage for a personal lines residential
422 risk is received for a policyholder of the corporation at
423 renewal from an authorized insurer, if the offer is equal to or
424 less than the corporation's renewal premium for comparable
425 coverage, the risk is not eligible for coverage with the
Page 17 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
426 corporation. If the risk is not able to obtain such offer, the
427 risk is eligible for a standard policy including wind coverage
428 or a basic policy including wind coverage issued by the
429 corporation; however, if the risk could not be insured under a
430 standard policy including wind coverage regardless of market
431 conditions, the risk is eligible for a basic policy including
432 wind coverage unless rejected under subparagraph 8. However, a
433 policyholder removed from the corporation through an assumption
434 agreement remains eligible for coverage from the corporation
435 until the end of the assumption period. The corporation shall
436 determine the type of policy to be provided on the basis of
437 objective standards specified in the underwriting manual and
438 based on generally accepted underwriting practices.
439 (I) If the risk accepts an offer of coverage through the
440 market assistance plan or through a mechanism established by the
441 corporation other than a plan established by s. 627.3518, before
442 a policy is issued to the risk by the corporation or during the
443 first 30 days of coverage by the corporation, and the producing
444 agent who submitted the application to the plan or to the
445 corporation is not currently appointed by the insurer, the
446 insurer shall:
447 (A) Pay to the producing agent of record of the policy for
448 the first year, an amount that is the greater of the insurer's
449 usual and customary commission for the type of policy written or
450 a fee equal to the usual and customary commission of the
Page 18 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
451 corporation; or
452 (B) Offer to allow the producing agent of record of the
453 policy to continue servicing the policy for at least 1 year and
454 offer to pay the agent the greater of the insurer's or the
455 corporation's usual and customary commission for the type of
456 policy written.
457
458 If the producing agent is unwilling or unable to accept
459 appointment, the new insurer shall pay the agent in accordance
460 with sub-sub-sub-subparagraph (A).
461 (II) If the corporation enters into a contractual
462 agreement for a take-out plan, the producing agent of record of
463 the corporation policy is entitled to retain any unearned
464 commission on the policy, and the insurer shall:
465 (A) Pay to the producing agent of record, for the first
466 year, an amount that is the greater of the insurer's usual and
467 customary commission for the type of policy written or a fee
468 equal to the usual and customary commission of the corporation;
469 or
470 (B) Offer to allow the producing agent of record to
471 continue servicing the policy for at least 1 year and offer to
472 pay the agent the greater of the insurer's or the corporation's
473 usual and customary commission for the type of policy written.
474
475 If the producing agent is unwilling or unable to accept
Page 19 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
476 appointment, the new insurer shall pay the agent in accordance
477 with sub-sub-sub-subparagraph (A).
478 b. With respect to commercial lines residential risks, for
479 a new application to the corporation for coverage, if the risk
480 is offered coverage under a policy including wind coverage from
481 an authorized insurer at its approved rate, the risk is not
482 eligible for a policy issued by the corporation unless the
483 premium for coverage from the authorized insurer is more than 15
484 percent greater than the premium for comparable coverage from
485 the corporation. Whenever an offer of coverage for a commercial
486 lines residential risk is received for a policyholder of the
487 corporation at renewal from an authorized insurer, if the offer
488 is equal to or less than the corporation's renewal premium for
489 comparable coverage, the risk is not eligible for coverage with
490 the corporation. If the risk is not able to obtain any such
491 offer, the risk is eligible for a policy including wind coverage
492 issued by the corporation. However, a policyholder removed from
493 the corporation through an assumption agreement remains eligible
494 for coverage from the corporation until the end of the
495 assumption period.
496 (I) If the risk accepts an offer of coverage through the
497 market assistance plan or through a mechanism established by the
498 corporation other than a plan established by s. 627.3518, before
499 a policy is issued to the risk by the corporation or during the
500 first 30 days of coverage by the corporation, and the producing
Page 20 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
501 agent who submitted the application to the plan or the
502 corporation is not currently appointed by the insurer, the
503 insurer shall:
504 (A) Pay to the producing agent of record of the policy,
505 for the first year, an amount that is the greater of the
506 insurer's usual and customary commission for the type of policy
507 written or a fee equal to the usual and customary commission of
508 the corporation; or
509 (B) Offer to allow the producing agent of record of the
510 policy to continue servicing the policy for at least 1 year and
511 offer to pay the agent the greater of the insurer's or the
512 corporation's usual and customary commission for the type of
513 policy written.
514
515 If the producing agent is unwilling or unable to accept
516 appointment, the new insurer shall pay the agent in accordance
517 with sub-sub-sub-subparagraph (A).
518 (II) If the corporation enters into a contractual
519 agreement for a take-out plan, the producing agent of record of
520 the corporation policy is entitled to retain any unearned
521 commission on the policy, and the insurer shall:
522 (A) Pay to the producing agent of record, for the first
523 year, an amount that is the greater of the insurer's usual and
524 customary commission for the type of policy written or a fee
525 equal to the usual and customary commission of the corporation;
Page 21 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
526 or
527 (B) Offer to allow the producing agent of record to
528 continue servicing the policy for at least 1 year and offer to
529 pay the agent the greater of the insurer's or the corporation's
530 usual and customary commission for the type of policy written.
531
532 If the producing agent is unwilling or unable to accept
533 appointment, the new insurer shall pay the agent in accordance
534 with sub-sub-sub-subparagraph (A).
535 c. For purposes of determining comparable coverage under
536 sub-subparagraphs a. and b., the comparison must be based on
537 those forms and coverages that are reasonably comparable. The
538 corporation may rely on a determination of comparable coverage
539 and premium made by the producing agent who submits the
540 application to the corporation, made in the agent's capacity as
541 the corporation's agent. A comparison may be made solely of the
542 premium with respect to the main building or structure only on
543 the following basis: the same coverage A or other building
544 limits; the same percentage hurricane deductible that applies on
545 an annual basis or that applies to each hurricane for commercial
546 residential property; the same percentage of ordinance and law
547 coverage, if the same limit is offered by both the corporation
548 and the authorized insurer; the same mitigation credits, to the
549 extent the same types of credits are offered both by the
550 corporation and the authorized insurer; the same method for loss
Page 22 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
551 payment, such as replacement cost or actual cash value, if the
552 same method is offered both by the corporation and the
553 authorized insurer in accordance with underwriting rules; and
554 any other form or coverage that is reasonably comparable as
555 determined by the board. If an application is submitted to the
556 corporation for wind-only coverage in the coastal account, the
557 premium for the corporation's wind-only policy plus the premium
558 for the ex-wind policy that is offered by an authorized insurer
559 to the applicant must be compared to the premium for multiperil
560 coverage offered by an authorized insurer, subject to the
561 standards for comparison specified in this subparagraph. If the
562 corporation or the applicant requests from the authorized
563 insurer a breakdown of the premium of the offer by types of
564 coverage so that a comparison may be made by the corporation or
565 its agent and the authorized insurer refuses or is unable to
566 provide such information, the corporation may treat the offer as
567 not being an offer of coverage from an authorized insurer at the
568 insurer's approved rate.
569 6. Must include rules for classifications of risks and
570 rates.
571 7. Must provide that if premium and investment income for
572 an account attributable to a particular calendar year are in
573 excess of projected losses and expenses for the account
574 attributable to that year, such excess shall be held in surplus
575 in the account. Such surplus must be available to defray
Page 23 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
576 deficits in that account as to future years and used for that
577 purpose before assessing assessable insurers and assessable
578 insureds as to any calendar year.
579 8. Must provide objective criteria and procedures to be
580 uniformly applied to all applicants in determining whether an
581 individual risk is so hazardous as to be uninsurable. In making
582 this determination and in establishing the criteria and
583 procedures, the following must be considered:
584 a. Whether the likelihood of a loss for the individual
585 risk is substantially higher than for other risks of the same
586 class; and
587 b. Whether the uncertainty associated with the individual
588 risk is such that an appropriate premium cannot be determined.
589
590 The acceptance or rejection of a risk by the corporation shall
591 be construed as the private placement of insurance, and the
592 provisions of chapter 120 do not apply.
593 9. Must provide that the corporation make its best efforts
594 to procure catastrophe reinsurance at reasonable rates, to cover
595 its projected 100-year probable maximum loss as determined by
596 the board of governors. If catastrophe reinsurance is not
597 available at reasonable rates, the corporation need not purchase
598 it, but the corporation shall include the costs of reinsurance
599 to cover its projected 100-year probable maximum loss in its
600 rate calculations even if it does not purchase catastrophe
Page 24 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
601 reinsurance.
602 10. The policies issued by the corporation must provide
603 that if the corporation or the market assistance plan obtains an
604 offer from an authorized insurer to cover the risk at its
605 approved rates, the risk is no longer eligible for renewal
606 through the corporation, except as otherwise provided in this
607 subsection.
608 11. Corporation policies and applications must include a
609 notice that the corporation policy could, under this section, be
610 replaced with a policy issued by an authorized insurer which
611 does not provide coverage identical to the coverage provided by
612 the corporation. The notice must also specify that acceptance of
613 corporation coverage creates a conclusive presumption that the
614 applicant or policyholder is aware of this potential.
615 12. May establish, subject to approval by the office,
616 different eligibility requirements and operational procedures
617 for any line or type of coverage for any specified county or
618 area if the board determines that such changes are justified due
619 to the voluntary market being sufficiently stable and
620 competitive in such area or for such line or type of coverage
621 and that consumers who, in good faith, are unable to obtain
622 insurance through the voluntary market through ordinary methods
623 continue to have access to coverage from the corporation. If
624 coverage is sought in connection with a real property transfer,
625 the requirements and procedures may not provide an effective
Page 25 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
626 date of coverage later than the date of the closing of the
627 transfer as established by the transferor, the transferee, and,
628 if applicable, the lender.
629 13. Must provide that, with respect to the coastal
630 account, any assessable insurer with a surplus as to
631 policyholders of $25 million or less writing 25 percent or more
632 of its total countrywide property insurance premiums in this
633 state may petition the office, within the first 90 days of each
634 calendar year, to qualify as a limited apportionment company. A
635 regular assessment levied by the corporation on a limited
636 apportionment company for a deficit incurred by the corporation
637 for the coastal account may be paid to the corporation on a
638 monthly basis as the assessments are collected by the limited
639 apportionment company from its insureds, but a limited
640 apportionment company must begin collecting the regular
641 assessments not later than 90 days after the regular assessments
642 are levied by the corporation, and the regular assessments must
643 be paid in full within 15 months after being levied by the
644 corporation. A limited apportionment company shall collect from
645 its policyholders any emergency assessment imposed under sub-
646 subparagraph (b)3.d. The plan must provide that, if the office
647 determines that any regular assessment will result in an
648 impairment of the surplus of a limited apportionment company,
649 the office may direct that all or part of such assessment be
650 deferred as provided in subparagraph (q)4. However, an emergency
Page 26 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
651 assessment to be collected from policyholders under sub-
652 subparagraph (b)3.d. may not be limited or deferred.
653 14. Must provide that the corporation appoint as its
654 licensed agents only those agents who throughout such
655 appointments also hold an appointment as defined in s. 626.015
656 by an insurer who is authorized to write and is actually writing
657 or renewing personal lines residential property coverage,
658 commercial residential property coverage, or commercial
659 nonresidential property coverage within the state.
660 15. Must provide a premium payment plan option to its
661 policyholders which, at a minimum, allows for quarterly and
662 semiannual payment of premiums. A monthly payment plan may, but
663 is not required to, be offered.
664 16. Must limit coverage on mobile homes or manufactured
665 homes built before 1994 to actual cash value of the dwelling
666 rather than replacement costs of the dwelling.
667 17. Must provide coverage for manufactured or mobile home
668 dwellings. Such coverage must also include the following
669 attached structures:
670 a. Screened enclosures that are aluminum framed or
671 screened enclosures that are not covered by the same or
672 substantially the same materials as those of the primary
673 dwelling;
674 b. Carports that are aluminum or carports that are not
675 covered by the same or substantially the same materials as those
Page 27 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
676 of the primary dwelling; and
677 c. Patios that have a roof covering that is constructed of
678 materials that are not the same or substantially the same
679 materials as those of the primary dwelling.
680
681 The corporation shall make available a policy for mobile homes
682 or manufactured homes for a minimum insured value of at least
683 $3,000.
684 18. May provide such limits of coverage as the board
685 determines, consistent with the requirements of this subsection.
686 19. May require commercial property to meet specified
687 hurricane mitigation construction features as a condition of
688 eligibility for coverage.
689 20. Must provide that new or renewal policies issued by
690 the corporation on or after January 1, 2012, which cover
691 sinkhole loss do not include coverage for any loss to
692 appurtenant structures, driveways, sidewalks, decks, or patios
693 that are directly or indirectly caused by sinkhole activity. The
694 corporation shall exclude such coverage using a notice of
695 coverage change, which may be included with the policy renewal,
696 and not by issuance of a notice of nonrenewal of the excluded
697 coverage upon renewal of the current policy.
698 21. As of January 1, 2012, must require that the agent
699 obtain from an applicant for coverage from the corporation an
700 acknowledgment signed by the applicant, which includes, at a
Page 28 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
701 minimum, the following statement:
702
703 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE
704 AND ASSESSMENT LIABILITY:
705
706 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
707 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
708 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
709 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
710 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
711 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
712 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
713 LEGISLATURE.
714 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
715 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
716 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
717 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
718 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
719 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
720 ARE REGULATED AND APPROVED BY THE STATE.
721 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
722 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
723 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
724 FLORIDA LEGISLATURE.
725 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
Page 29 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
726 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
727 STATE OF FLORIDA.
728
729 a. The corporation shall maintain, in electronic format or
730 otherwise, a copy of the applicant's signed acknowledgment and
731 provide a copy of the statement to the policyholder as part of
732 the first renewal after the effective date of this subparagraph.
733 b. The signed acknowledgment form creates a conclusive
734 presumption that the policyholder understood and accepted his or
735 her potential surcharge and assessment liability as a
736 policyholder of the corporation.
737 (n)1. Rates for coverage provided by the corporation must
738 be actuarially sound and subject to s. 627.062, except as
739 otherwise provided in this paragraph. The corporation shall file
740 its recommended rates with the office at least annually. The
741 corporation shall provide any additional information regarding
742 the rates which the office requires. The office shall consider
743 the recommendations of the board and issue a final order
744 establishing the rates for the corporation within 45 days after
745 the recommended rates are filed. The corporation may not pursue
746 an administrative challenge or judicial review of the final
747 order of the office.
748 2. In addition to the rates otherwise determined pursuant
749 to this paragraph, the corporation shall impose and collect an
750 amount equal to the premium tax provided in s. 624.509 to
Page 30 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
751 augment the financial resources of the corporation.
752 3. After the public hurricane loss-projection model under
753 s. 627.06281 has been found to be accurate and reliable by the
754 Florida Commission on Hurricane Loss Projection Methodology, the
755 model shall be considered when establishing the windstorm
756 portion of the corporation's rates. The corporation may use the
757 public model results in combination with the results of private
758 models to calculate rates for the windstorm portion of the
759 corporation's rates. This subparagraph does not require or allow
760 the corporation to adopt rates lower than the rates otherwise
761 required or allowed by this paragraph.
762 4. The rate filings for the corporation which were
763 approved by the office and took effect January 1, 2007, are
764 rescinded, except for those rates that were lowered. As soon as
765 possible, the corporation shall begin using the lower rates that
766 were in effect on December 31, 2006, and provide refunds to
767 policyholders who paid higher rates as a result of that rate
768 filing. The rates in effect on December 31, 2006, remain in
769 effect for the 2007 and 2008 calendar years except for any rate
770 change that results in a lower rate. The next rate change that
771 may increase rates shall take effect pursuant to a new rate
772 filing recommended by the corporation and established by the
773 office, subject to this paragraph.
774 4.5. Beginning on July 15, 2009, and annually thereafter,
775 The corporation must make a recommended actuarially sound rate
Page 31 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
776 filing for each personal and commercial line of business it
777 writes, to be effective no earlier than January 1, 2010.
778 5.6. Beginning on or after January 1, 2010, and
779 Notwithstanding the board's recommended rates and the office's
780 final order regarding the corporation's filed rates under
781 subparagraph 1., the corporation shall annually implement a rate
782 increase which, except for sinkhole coverage, does not exceed
783 the following 10 percent for any single policy issued by the
784 corporation, excluding coverage changes and surcharges:
785 a. Eleven percent for 2022.
786 b. Twelve percent for 2023.
787 c. Thirteen percent for 2024.
788 d. Fourteen percent for 2025.
789 e. Fifteen percent for 2026 and all subsequent years.
790 6. At no time may the corporation file for approval by the
791 office for a rate reduction.
792 7. The corporation may also implement an increase to
793 reflect the effect on the corporation of the cash buildup factor
794 pursuant to s. 215.555(5)(b).
795 8. The corporation's implementation of rates as prescribed
796 in subparagraph 6. shall cease for any line of business written
797 by the corporation upon the corporation's implementation of
798 actuarially sound rates. Thereafter, the corporation shall
799 annually make a recommended actuarially sound rate filing for
800 each commercial and personal line of business the corporation
Page 32 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
801 writes.
802 (jj) An employee of the corporation may not receive an
803 annual salary, whether base pay or base pay combined with any
804 bonus or incentive payments, in excess of 150 percent of the
805 annual salary paid to the head of the office, subject to the
806 following:
807 1. Anyone employed by the corporation as of June 30, 2021,
808 whose salary exceeds the salary limits in this paragraph may
809 retain his or her current salary but may not receive a raise.
810 2. Anyone employed by the corporation as of June 30, 2021,
811 whose salary does not exceed the salary limits in this paragraph
812 may receive a raise such that his or her salary does not exceed
813 the salary limits in this paragraph.
814 3. Anyone hired by the corporation on or after July 1,
815 2021, is subject to the salary limits in this paragraph.
816 Section 7. Subsection (5) of section 627.3518, Florida
817 Statutes, is amended to read:
818 627.3518 Citizens Property Insurance Corporation
819 policyholder eligibility clearinghouse program.—The purpose of
820 this section is to provide a framework for the corporation to
821 implement a clearinghouse program by January 1, 2014.
822 (5) Notwithstanding s. 627.3517, any applicant for new
823 coverage from the corporation is not eligible for coverage from
824 the corporation if provided an offer of coverage from an
825 authorized insurer through the program at a premium that is at
Page 33 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
826 or below the eligibility threshold established in s.
827 627.351(6)(c)5.a. Whenever an offer of coverage for a personal
828 lines risk is received for a policyholder of the corporation at
829 renewal from an authorized insurer through the program, if the
830 offer is equal to or less than the corporation's renewal premium
831 for comparable coverage, the risk is not eligible for coverage
832 with the corporation. In the event an offer of coverage for a
833 new applicant is received from an authorized insurer through the
834 program, and the premium offered exceeds the eligibility
835 threshold contained in s. 627.351(6)(c)5.a., the applicant or
836 insured may elect to accept such coverage, or may elect to
837 accept or continue coverage with the corporation. In the event
838 an offer of coverage for a personal lines risk is received from
839 an authorized insurer at renewal through the program, and the
840 premium offered is more than the corporation's renewal premium
841 for comparable coverage, the insured may elect to accept such
842 coverage, or may elect to accept or continue coverage with the
843 corporation. Section 627.351(6)(c)5.a.(I) does not apply to an
844 offer of coverage from an authorized insurer obtained through
845 the program. An applicant for coverage from the corporation who
846 was declared ineligible for coverage at renewal by the
847 corporation in the previous 36 months due to an offer of
848 coverage pursuant to this subsection shall be considered a
849 renewal under this section if the corporation determines that
850 the authorized insurer making the offer of coverage pursuant to
Page 34 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
851 this subsection continues to insure the applicant and increased
852 the rate on the policy in excess of the increase allowed for the
853 corporation under s. 627.351(6)(n)5. s. 627.351(6)(n)6.
854 Section 8. Section 627.70132, Florida Statutes, is amended
855 to read:
856 627.70132 Notice of property insurance windstorm or
857 hurricane claim.—A claim, supplemental claim, or reopened claim
858 under an insurance policy that provides property insurance, as
859 defined in s. 624.604, including a property insurance policy
860 issued by an eligible surplus lines insurer, for loss or damage
861 caused by any the peril of windstorm or hurricane is barred
862 unless notice of the claim, supplemental claim, or reopened
863 claim was given to the insurer in accordance with the terms of
864 the policy within 2 3 years after the date of loss hurricane
865 first made landfall or the windstorm caused the covered damage.
866 For claims resulting from hurricanes, tornadoes, windstorms,
867 severe rain, or other weather-related events that are tracked by
868 weather services and media, the date of loss is the date that
869 the hurricane made landfall, or the tornado, windstorm, severe
870 rain, or other weather-related event is verified by the National
871 Oceanic and Atmospheric Administration or another disinterested
872 verifiable third party to have occurred, in the location of the
873 property that is the subject of the claim. For purposes of this
874 section, the term "supplemental claim" or "reopened claim" means
875 any additional claim for recovery from the insurer for losses
Page 35 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
876 from the same peril hurricane or windstorm which the insurer has
877 previously adjusted pursuant to the initial claim. This section
878 does not affect any applicable limitation on civil actions
879 provided in s. 95.11 for claims, supplemental claims, or
880 reopened claims timely filed under this section.
881 Section 9. Paragraph (e) of subsection (9) of section
882 627.7015, Florida Statutes, is amended to read:
883 627.7015 Alternative procedure for resolution of disputed
884 property insurance claims.—
885 (9) For purposes of this section, the term "claim" refers
886 to any dispute between an insurer and a policyholder relating to
887 a material issue of fact other than a dispute:
888 (e) With respect to a windstorm or hurricane loss that
889 does not comply with s. 627.70132.
890 Section 10. Section 627.70152, Florida Statutes, is
891 created to read:
892 627.70152 Suits arising under a property insurance
893 policy.—
894 (1) APPLICATION.—This section applies to all residential
895 or commercial property suits not brought by an assignee.
896 (2) DEFINITIONS.—As used in this section, the term:
897 (a) "Claimant" means an insured who is filing suit under a
898 residential or commercial property insurance policy.
899 (b) "Demand" means the specific amount alleged to be owed
900 by the insurer to the claimant under the residential or
Page 36 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
901 commercial property insurance policy.
902 (c) "Notice" means claimant presuit notice.
903 (3) NOTICE.—
904 (a) As a condition precedent to filing a suit under a
905 property insurance policy, a claimant or the claimant's attorney
906 must provide the insurer with a written notice of intent to
907 initiate litigation before filing suit under the policy. Such
908 notice must be served by certified mail, return receipt
909 requested, or electronic delivery at least 10 business days
910 before filing suit, but may not be served before the insurer has
911 made a determination of coverage under s. 627.70131. The notice
912 must specify all of the following:
913 1. That the notice is being provided pursuant to this
914 section.
915 2. The alleged acts or omissions of the insurer giving
916 rise to the suit.
917 3. The damages in dispute.
918 4. The demand.
919 5. The amount of reasonable and necessary attorney fees
920 and costs incurred by the claimant, to be calculated by
921 multiplying the number of hours actually worked on the claim as
922 of the date of the notice by the claimant's attorney by a
923 reasonable hourly rate.
924 6. If provided by an attorney or other representative,
925 that a copy of the notice was provided to the claimant.
Page 37 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
926
927 Documentation to support the information provided in this
928 paragraph may be provided along with the notice to the insurer.
929 (b) A notice of intent to initiate litigation must be
930 served within the time limits provided in s. 95.11. However, the
931 notice is not required if the suit is a counterclaim. Service of
932 a notice tolls the time limits provided in s. 95.11 for 10 days
933 if such time limits will expire before the end of the 10-day
934 notice period.
935 (c) An insurer must respond in writing to the notice
936 within 10 business days after receiving the notice specified in
937 paragraph (a) by making a settlement offer or requiring the
938 claimant to participate in appraisal or another method of
939 alternative dispute resolution under the policy. The time limits
940 provided in s. 95.11 are tolled as long as appraisal or other
941 alternative dispute resolution is ongoing. An insurer must have
942 a procedure for the prompt investigation, review, and evaluation
943 of the dispute stated in the notice and must investigate each
944 claim contained in the notice in accordance with the Florida
945 Insurance Code.
946 (d) A court must dismiss without prejudice any claimant's
947 suit relating to a claim for which a notice of intent to
948 initiate litigation is given as required by this subsection if
949 such suit is commenced before the expiration of the 10-day
950 notice period.
Page 38 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
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 305 2021
951 (4) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice
952 provided pursuant to subsection (3) and, if applicable, the
953 documentation to support the information provided pursuant to
954 paragraph (3)(a):
955 (a) Are admissible as evidence in a civil suit or an
956 alternative dispute resolution proceeding relating to the claim
957 for which the notice is given.
958 (b) Do not limit the evidence of attorney fees or costs,
959 damages, or loss which may be offered at trial.
960 (c) Do not relieve any obligation that an insured or
961 assignee has to give notice under any other provision of law.
962 (5) ATTORNEY FEES.—If a court dismisses a claimant's suit
963 pursuant to paragraph (3)(d), the court may not award to the
964 claimant any incurred attorney fees for services rendered before
965 the dismissal of the suit.
966 Section 11. This act shall take effect July 1, 2021.
Page 39 of 39
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 305
File and source
- File
- 2021_3100_insurance-banking-subcommittee_proposed-committee-bills-pcbs_fn-pcs-for-hb-305.pdf
- Size
- 213,314 bytes
- SHA-256
- e89a19b9d5f9e470154e94c32524d6f04c2a4bfd5dc3ed01b108167b28f7ea3b
- Our copy
- 2021_3100_insurance-banking-subcommittee_proposed-committee-bills-pcbs_fn-pcs-for-hb-305.pdf
- Original
- No public link identified.