Meeting Packet — Insurance & Banking Subcommittee, Florida House Commerce Committee (March 27, 2025)
Summary
Meeting packet of the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee for Thursday, March 27, 2025, 9:00 AM to 12:00 PM. The agenda lists CS/HB 265, HB 315 and CS/HB 1173, plus proposed committee substitutes for HB 643 (Residual Market Insurers) and HB 1047 (Insurance). The bill analysis for CS/HB 265 (Postjudgment Execution Proceedings Relating to Terrorism) states that the bill clarifies current law on the ability of a victim of international terrorism to collect on a judgment. The packet closes with text of PCS for HB 1047, whose Section 8 provides that the act takes effect upon becoming a law.
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Insurance & Banking Subcommittee
Thursday, March 27, 2025
9:00 AM - 12:00 PM
Morris Hall (17 HOB)
Meeting Packet
Daniel Perez Bradford Yeager
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Daniel Perez Bradford Yeager
Speaker Chair
Meeting Agenda
Thursday, March 27, 2025
9:00 am – 12:00 pm
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• CS/HB 265 Postjudgment Execution Proceedings Relating to Terrorism by Civil Justice &
Claims Subcommittee, Porras
• HB 315 Transportation Network Company and Driver Insurance Requirements by Fabricio
• CS/HB 1173 Florida Trust Code by Civil Justice & Claims Subcommittee, Duggan
Consideration of the following proposed committee substitute(s):
• PCS for HB 643 -- Residual Market Insurers
• PCS for HB 1047 – Insurance
V. Closing Remarks
VI. Adjournment
214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
(850) 717-4870
CS/HB 265
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 265 COMPANION BILL: SB 1430 (Collins)
TITLE: Postjudgment Execution Proceedings Relating to LINKED BILLS: None
Terrorism RELATED BILLS: None
SPONSOR(S): Porras
Committee References
Civil Justice & Claims Insurance & Banking Judiciary
15 Y, 0 N, As CS
SUMMARY
Effect of the Bill:
CS/HB 265 clarifies current law relating to the ability of a victim of international terrorism to collect on a judgment
from a terrorist party or an agency or instrumentality thereof. The bill authorizes creditor process issued under ch.
56 (final process) or ch. 77 (garnishment) to be served upon any person or entity over whom the court has
jurisdiction and clarifies that a Florida court enforcing a terrorism victim’s anti-terrorism judgment can garnish
intangible assets wherever they are located, without territorial limitation. Further, the bill specifies that such
“intangible assets” include bank accounts, financial assets, or other intangible property, thus clarifying inconsistent
and ambiguous interpretations of case law. Under the bill, such intangible assets are subject to execution,
garnishment, and turnover by the United States securities custodian or intermediary.
The provisions of the bill apply to any postjudgment execution proceeding served, or filed before, on, or after the
effective date of the bill. The bill will be effective upon becoming law.
Fiscal or Economic Impact:
The bill may have a significant positive fiscal impact on private citizens seeking to obtain judgments against an
international terrorist party or affiliate thereof.
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ANALYSIS
EFFECT OF THE BILL:
CS/HB 265 amends s. 772.13, F.S., relating to civil remedies for terrorism to create a pathway by which a victim of
terrorism can collect on a judgment ordered in his or her favor by a court from a terrorist party or associate of a
terrorist party. The bill makes it easier for a victim to collect on a judgment in a postjudgment execution
proceeding entered against a terrorist party under Florida law as well as 18 U.S.C. s. 2333 or a substantially similar
federal law. Further, the bill permits enforcement in any postjudgment execution proceedings against any agency
or instrumentality of the terrorist party not named in the judgment pursuant to section 201(a) of the Terrorism
Risk Insurance Act.1 (Section 1).
Once a judgment is entered against a terrorist party, the ability to collect on a judgment is complicated by the
nature of the international transactions and the complex processes such criminal organizations use to hide,
launder, and transfer assets. The bill reconciles a disparity between precedent2 established in APR Energy, LLC. v.
1 28 U.S.C. s. 1610.
2 See APR Energy, LLC. v. Pakistan Power Res., LLC., 653 F. Supp. 2d 1227 (M.D. Fla. Feb. 20, 2009) in which the court classified a
bank account as a tangible asset, thus requiring the court to have personal jurisdiction over the Garnishee as well as
jurisdiction over the property to be garnished-the actual bank account. See also, Skulas v. Loiselle, No. 09-60096-CIV, 2010 WL
1790439 (S.D. Fla. April 9, 2010) in which the court adopted the reasoning from APR Energy and held that Florida’s
STORAGE NAME: h0265a.IBS
DATE: 3/25/2025
1
Pakistan Power Res., LLC.,3 the Florida garnishment statutes, and the holding in Stansell v. Revolutionary Armed
Forces of Colombia (FARC),4 to clarify that a court does not need to have in rem jurisdiction over the actual bank
account being sought for the satisfaction of a judgment. The bill provides that creditor process issued under ch. 56
(final process) or ch. 77 (garnishment) may be served upon any person or entity over whom the court has personal
jurisdiction. As such, victims under the bill would be able to serve the U.S. intermediary rather than having to serve
the foreign bank where the account was opened, as is required under current law. (Section 1).
Under the bill, writs of garnishment issued under s. 77.01, F.S., and proceedings supplementary under s. 56.29, F.S.,
apply to intangible assets wherever they are located, including bank accounts, financial assets, or other intangible
property. As such, a Florida court enforcing a terrorism victim’s anti-terrorism judgment can garnish intangible
assets wherever they are located, so long as the garnishee is subject to personal jurisdiction in the state of Florida.
Further, the situs of any intangible assets held or maintained by or in the possession, custody, or control of a
person or entity so served shall be deemed to be in Florida for the purposes of a final process or garnishment
proceeding. Under the bill, service of a writ or notice to appear provides the court with in rem jurisdiction over any
intangible assets regardless of the physical location, if any, of the assets. (Section 1).
The bill permits a creditor to reach a terrorist debtor’s interest within a financial asset or security entitlement by
legal process through the securities intermediary or financial institution with whom the debtor’s account is
maintained. If the securities intermediary is a foreign entity, legal process under chapters 56 or 77 may be served
upon the United States securities custodian or intermediary that has reported holding or maintaining the blocked
financial assets or security entitlement to the Office of Foreign Assets Control of the United States Department of
the Treasury. Such financial assets or security entitlements are subject to execution, garnishment, and turnover by
the U.S. securities custodian or intermediary. (Section 1).
When an electronic funds transfer (“EFT”) is not completed within 5 banking days and is cancelled because a U.S.
intermediary financial institution has blocked the transaction in compliance with a United States sanctions
program, and a terrorist party or any agency or instrumentality thereof was either the originator or the intended
beneficiary, the blocked funds are deemed owned by the terrorist party or its agency or instrumentality and, thus,
are subject to execution and garnishment. (Section 1).
The bill allows a specific group of people who have been awarded a judgment through the court system for torts
committed by a terrorist party to collect the judgment owed to them, even if the funds are blocked or otherwise
“untouchable” due to a financial institution’s compliance with federal sanctions on such organizations or
individuals. As such, plaintiffs like those in the Stansell v. Lopez Bello case would be able to collect on the judgment
owed to them by the Revolutionary Armed Forces of Colombia (“FARC”) through the federal Anti-Terrorism Act.
The bill, though narrowly tailored, would not only benefit or apply to those plaintiffs in the Stansell case; but would
open up a pathway for other Floridians who have received judgments in their favor against a terrorist party or
certain foreign nations to collect the funds owed to them. (Section 1).
The provisions of the bill apply to any postjudgment execution proceeding, including creditor process under
chapters 56 or 77, served, or filed before, on, or after the bill becomes law. (Section 1).
The bill is effective upon becoming law and applies to any postjudgment execution proceeding served or filed
before, on, or after such date. (Section 2).
FISCAL OR ECONOMIC IMPACT:
garnishment statutes (s. 77.01, F.S., et seq.) did not have extraterritorial effect and the court lacked in rem jurisdiction over the
account.
3 Id.
4 Stansell v. Revolutionary Armed Forces of Colombia (FARC), 149 F. Supp. 3d, 1337, 1341 (M.D. Fla. 2015)(providing that
nothing in the language or structure of the Florida garnishment statutes demonstrates that they were intended to apply to
bank accounts located outside of the state of Florida).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
PRIVATE SECTOR:
The bill may have a significant positive fiscal impact on the ability of those private citizens who have been awarded
judgments against an international terrorist party or affiliate to collect on such judgments. These victims have
faced significant hurdles in attempting to collect on the judgments awarded to them based on the complex nature
of foreign financial transaction by criminal actors.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Procedural Obstacles Related to Recovering Assets from a Criminal Organization
Generally, complex criminal organizations and terrorist parties are savvy as it relates to moving assets and money
internationally. Because of this, they often use various foreign banks in their stream of transactions to create an
impenetrable financial web of which U.S. control and interference is especially difficult. Terrorists and money
launderers often open securities accounts with foreign banks to purchase large sums of stocks and bonds issued in
the U.S., then use foreign intermediaries in the chain of custody within a U.S. bank. Then, such parties attempt to
hide behind the protections offered by the Uniform Commercial Code (“UCC”), which generally require a victim to
serve creditor process against the foreign bank where the account was actually opened, rather than the U.S.
intermediary that blocks the securities in the U.S. However, such foreign banks intentionally have no U.S. branches
and lack any type of presence in the U.S., making it difficult or impossible to serve them and litigate the issue.
The process becomes even more complicated when the originator and/or the beneficiary are blocked parties on
the Office of Foreign Assets Control (“OFAC”) Sanctions list (also referred to as the “SDN List”)5. It is common for a
terrorist party to use multiple intermediary banks and subsequently argue that, under the UCC, a wire transfer that
is blocked “midstream” by a U.S. bank is only owned by the entity immediately upstream, thus placing huge sums of
midstream wire transfers frozen out of a victim’s reach.
For example, narcotics Kingpin and U.S. fugitive Samark Lopez Bello opened an account at a Swiss bank. The Swiss
bank had no U.S. branches or U.S. employees. Lopez Bello used that account to acquire a nine-figure portfolio of
stocks and bonds issued in the United States. When victims attempted to collect the judgment via a turnover
motion against Citibank, Lopez Bello argued that Citibank was not the proper garnishee under U.C.C. s. 8-112,
which provides that “the interest of a debtor in a security entitlement may be reached by a creditor only by legal
process upon the securities intermediary with whom the debtor’s securities account is maintained.”6
Electronic Funds Transfer Process – Overview
An electronic funds transfer (“EFT”) is a transaction by which funds move from one institution to another or from
one account to another at the direction of an institution’s customer.7 The transaction is done through the
transmission of electronic instruction messages that cause the institutions to make the required bookkeeping
entries and make the funds available for transfer.8 The funds transfer process generally consists of a series of
electronic messages sent between financial institutions directing each to make the debit and credit accounting
entries necessary to complete the transaction.9
Chapter 670, F.S., of the Uniform Commercial Code (“UCC”) applies to funds transfers. “Funds transfers” refers to
the series of transactions, beginning with an originator’s payment order, that is made for the purpose of making
5 The Specifically Designated Nationals and Blocked Persons List (“SDN List”) is a sanctions list administered by OFAC. See
OFAC, Sanctions List, https://sanctionssearch.ofac.treas.gov/ (last visited March 6, 2025).
6 Stansell v. Revolutionary Armed Forces of Colombia (FARC), No. 19-cv-20896, 2020 WL 4692748 (S.D. Fla. 2020).
7 U.S. Dep’t. of the Treasury: Financial Crimes Enforcement Network (“FinCen”), Appendix D – Fundamentals of the Funds
Transfer Process, https://www.fincen.gov/sites/default/files/shared/Appendix_D.pdf (last visited March 5, 2025).
8 Id. at 1.
9 Id.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
payment to the beneficiary of the order.10 The term includes any payment order issued by the originator’s bank or
an intermediary bank intended to carry out the order.11 A funds transfer is completed by acceptance of the
beneficiary’s bank of a payment order for the benefit of the beneficiary.12
Financial Institutions
A “financial institution” includes any person doing business in one or more of the following capacities:
Bank (except bank credit card systems);
Broker or dealer in securities;
Money services business;
Telegraph company;
Casino;
Card club; or
A person subject to supervision by any state or federal bank supervisory authority;
A futures commission merchant;
An introducing broker in commodities; or
A mutual fund.13
For the purposes of ch. 670, F.S., the terms below have the following definitions:
“Originator” means the individual or business entity that initiated the funds transfer.14
“Originator’s Bank” means the receiving bank to which the payment order of the originator is issued if the
originator is not a bank, or the originator if the originator is a bank.15
“Beneficiary” means the ultimate party to be credited or paid as a result of a funds transfer. 16
“Beneficiary’s Bank” means the bank identified in a payment order in which an account of the beneficiary is
to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order
does not provide for payment to an account.17
“Intermediary Bank” means a receiving bank other than the originator’s bank or the beneficiary’s bank.
“Payment Order” means an instruction of a sender to a receiving bank, transmitted orally, electronically, or
in writing, to pay (or cause another bank to pay) a fixed or determinable amount of money if:
o The instruction does not state a condition to payment to the beneficiary other than time of
payment;
o The receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment
from, the sender; and
o The instruction is transmitted by the sender directly to the receiving bank or to an agent, funds-
transfer system, or communication system for transmittal to the receiving bank.18
“Receiving Bank” means the bank to which the sender’s instruction is addressed.19
“Sender” means the person giving the instruction to the receiving bank.20
10 S. 670.104(1), F.S.
11 Supra note 5.
12 Id.
13 FinCen, Financial Institutions Definition, https://www.fincen.gov/financial-institution-definition (last visited March 5, 2025).
See also 31 C.F.R. 1010.100(t).
14 S. 670.104(2), F.S.
15 S. 670.104(4), F.S.
16 S. 670.103(1)(a), F.S.
17 S. 670.103(1)(b), F.S.
18 S. 670.103(1)(c), F.S.
19 S. 670.103(1)(d), F.S.
20 S. 670.103(1)(e), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
An Example of a funds transfer is illustrated in the hypothetical transaction below:21
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(B) tonnAd,:1 by
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In the EFT process, other financial institutions (not the originator or beneficiary institutions) may be required to
effect the transaction. The financial industry uses a number of technical terms to describe such other financial
institutions including, “intermediary,” “instructing,” “sender’s correspondent,” and “receiver’s correspondent.”22
Garnishment
Garnishment means a court-ordered process for collecting on a judgment, which takes money directly from a
defendant’s wages or assets (in this case in the form of bank accounts), or other third party who owes the
defendant a debt.23 A garnishment order instructs a third party who owes money to a defendant, typically the
21 Bruce J. Summers, The Payment System: Design, Management, and Supervision (Dec. 15, 1994), International Monetary Fund
(Dec. 1994), https://www.elibrary.imf.org/display/book/9781557753861/ch05.xml (last visited March 6, 2025).
22 Supra note 1 at 56.
23 Cornell Law School, Legal Information Institute, Garnishment, https://www.law.cornell.edu/wex/garnishment (last visited
March 5, 2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
defendant’s employer or bank, to pay some or all of that money to the plaintiff instead of to the defendant.24 This
third party is referred to as a “garnishee.”25
In Florida, every person or entity who has been awarded a judgment against another party has a right to a writ of
garnishment. That is, the party seeking to collect on a judgment award may collect on that judgment from any debt
that may be owed to the person or party the judgment was issued against. 26 For example, if plaintiff “A” is awarded
a $1 million judgment against defendant “Z” and defendant “Z” is owed $5 million from company “C” (a third-party
who is not a party to the lawsuit filed by plaintiff “A”), plaintiff “A” has a right to garnish (access and take
possession of) the debt owed by company “C” to defendant “Z” to collect on the judgment she is owed if defendant
“Z” is unable or unwilling to pay the judgment out of the assets in his own possession.
Civil Tort Action
One of the goals of the civil justice system is to redress tortious conduct, or “torts.” A tort is a wrong for which the
law provides a remedy. Torts are generally divided into two categories, as follows:
An intentional tort, examples of which include an assault, battery, or false imprisonment.
Negligence, which is a tort that is unintentionally committed. To prevail in a negligence lawsuit, the party
seeking the remedy, the “plaintiff,” must demonstrate that the:
o Defendant had a legal duty of care requiring the defendant to conform to a certain standard of
conduct for the protection of others, including the plaintiff, against unreasonable risks;
o Defendant breached his or her duty of care by failing to conform to the required standard;
o Defendant’s breach caused the plaintiff to suffer an injury; and
o Plaintiff suffered actual damage or loss resulting from such injury.27
Jurisdiction in General
“Jurisdiction” refers to the power of a court to hear cases and enter orders.28 It also refers to the territory within
which a court may properly exercise its power.29 There are three general types of jurisdiction:
Personal jurisdiction.
Subject matter jurisdiction.
Territorial jurisdiction.
Personal Jurisdiction
Personal jurisdiction refers to the ability of a court to exercise power over a specific person. A Florida court has
personal jurisdiction over a person, who personally or through an agent, submits himself or herself to the
jurisdiction of the court. This can be done in a number of ways, including:
Operating, conducting, engaging in, or carrying on a business or business venture in the state or having a
physical office in the state.
Committing a tort within the state.
Owning, using, possessing, or holding a mortgage or other lien on any real property in the state.
Contracting to insure a person, property, or risk located within the state at the time of contracting.
With respect to most family law matters, maintaining a matrimonial domicile in the state at the
commencement of an action or, if the defendant resided in the state prior to the commencement of the
action, whether cohabitating during that time or not.
Causing injury to persons or property within the state arising out of an act or omission by the defendant
outside of the state, if, at or about the time of the injury, either:
24 Id.
25 Id.
26 S. 77.01, F.S.
27 6 Florida Practice Series s. 1.1; see Barnett v. Dept. of Fin. Serv., 303 So. 3d 508 (Fla. 2020).
28 Cornell Law School, Legal Information Institute, Jurisdiction, https://www.law.cornell.edu/wex/jurisdiction (last visited
March 10, 2025).
29 Id.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
o The defendant was engaged in solicitation or services activities within the state; or
o Products, materials, or things processed, serviced, or manufactured by the defendant anywhere
were used or consumed within the state in the ordinary course of commerce, trade, or use.
Breaching a contract in the state by failing to perform acts required by the contract to be performed in the
state.
With respect to a proceeding for paternity, engaging in the act of sexual intercourse within this state with
respect to which a child may have been conceived.
Entering into a contract that complies with s. 685.102, F.S.30
Personal jurisdiction is further broken down into three categories: in personam jurisdiction, in rem jurisdiction,
and quasi in rem jurisdiction.
In Personam Jurisdiction
In personam means “against the person,” and refers to a court’s power to adjudicate matters directed against a
party. A court may exercise in personam jurisdiction over a person who resides in, maintains connections with, or
is served notice of legal proceedings in that court’s area of territorial jurisdiction.31
In Rem Jurisdiction
In rem is a latin term meaning “against a thing,” referring to a court’s power to adjudicate matters directed against
property.32 In rem jurisdiction is one of the two forms of personal jurisdiction (the other being personal or “in
personam” jurisdiction).33 A court can exercise in rem jurisdiction over any real or personal property located
within its jurisdiction. There are two types of in rem jurisdiction a court may exercise:
“Pure in rem” refers to actions that are binding against the world, rather than just the parties to the specific
action; and
“Quasi in rem” refers to actions which are only binding against individual parties to the action.34
Subject Matter Jurisdiction
Subject matter jurisdiction refers to a court’s authority over the subject matter of the proceeding. Subject matter
jurisdiction is the court’s authority to decide the issue in controversy such as a contracts issue, or a civil rights
issue.35 State courts have general jurisdiction, meaning that a state can hear any controversy except for those
prohibited by that state’s laws and those subjects specifically allocated to federal courts of exclusive jurisdiction
such as admiralty or bankruptcy issues.36
Territorial Jurisdiction
Territorial jurisdiction refers to a court’s power to bind the parties to the action.37 State court territorial
jurisdiction is determined by the Due Process Clause of the U.S. Constitution’s Fourteenth Amendment, and federal
court territorial jurisdiction is determined by the due process clause of the U.S. Constitution’s Fifth Amendment.
Florida Law
30 S. 48.193(1)(a), F.S.
31 Cornell Law School, Legal Information Institute, In Personam, https://www.law.cornell.edu/wex/in_personam (last visited
March 10, 2025).
32 Cornell Law School, Legal Information Institute, In Rem, https://www.law.cornell.edu/wex/in_rem (last visited March 5,
2025).
33 Id.
34 Id.
35 Cornell Law School, Legal Information Institute, Jurisdiction, https://www.law.cornell.edu/wex/jurisdiction (last visited
March 10, 2025).
36 Id.
37 Id.
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7
Creditor Process
Creditor process means a levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by
or on behalf of a creditor or other claimant with respect to an account.38 Put simply, creditor process is a legal
action that a creditor (person owed money from another) can take to collect the debt owed.
Florida Civil Judgment Collections Processes
After a plaintiff prevails in a civil action and obtains a judgment against the defendant, the plaintiff may initiate
post-judgment proceedings to obtain the defendant’s assets to satisfy the judgment. An “execution” is the lawful
seizure of property owned by the judgment debtor to be sold at public auction. The net proceeds of an execution on
property are paid to the judgment creditor to be applied against the debt. Execution applies to real property and
personal property. Execution and sale are conducted by the sheriff.39 Section 56.19, F.S., specifically provides for
recovery of judgments from a third party or its sureties, entities, or associated individuals. As such, once a trial
court has found in favor of a party (“judgment creditor”), the judgment creditor must then proceed in an execution
proceeding against the third party and his or her sureties to collect the awarded amount or awarded property.
Under ch. 77, F.S., a “garnishment” is the seizure of monies owed to the judgment debtor, which money is then paid
to the judgment creditor to be applied against the debt. Common targets of a garnishment are bank accounts and
wages. For actions in garnishment, either party has a right to, and may demand a jury trial.40 Under current law, in
a garnishment case against a fugitive or his or her sureties, the fugitive may demand a jury trial.
“Proceedings supplementary” is a collections tool created by s. 56.29, F.S. When any judgment creditor holds an
unsatisfied judgment or judgment lien, the judgment creditor may file a motion asking for proceedings
supplementary. In the proceeding, the court may issue a Notice to Appear to the judgment debtor or to any person
alleged to be holding property of the judgment debtor, or to any person who may have property that was
fraudulently transferred by the judgment debtor to that third party. After a hearing, the court may order the sheriff
to execute on property found to be owned by the judgment debtor, or found to have been fraudulently conveyed by
the judgment debtor, for sale for the benefit of the judgment creditor.41
While collection actions are primarily focused on assets of the judgment debtor, there may be occasions where
property titled or held in the name of another person or entity may be seized in payment of the judgment. This
occurs where the judgment debtor has fraudulently transferred the property to a third party in an attempt to
thwart collection of the judgment. Florida has adopted the Uniform Fraudulent Transfer Act to address these
situations.42
Civil Cause of Action for Terrorism
Section 775.30, F.S., defines “terrorism” as an activity that:
Involves a violent act or an act dangerous to human life which is a violation of the criminal laws of this
state or of the United States; or
Involves a violation of s. 815.06, F.S.;43 and is intended to:
o Intimidate, injure, or coerce a civilian population;
o Influence the policy of a government by intimidation or coercion; or
o Affect the conduct of government through destruction of property, assassination, murder,
kidnapping, or aircraft piracy.
A person who commits the offenses specified in s. 775.30(2), F.S., in furtherance of intimidating or coercing the
policy of a government, or in furtherance of affecting the conduct of a government by mass destruction,
38 S. 670.502, F.S.
39 The civil execution process is governed by ch. 56, F.S.
40 S. 77.08, F.S.
41 S. 56.29, F.S.
42 Ch. 726, F.S.
43 S. 815.06, F.S., provides that various computer-related offenses are a felony.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
8
assassination, or kidnapping, commits the crime of terrorism, a first-degree felony.44 A person who commits a
violation of s. 775.30(2), F.S., which results in death or serious bodily injury, commits a life felony.45
Section 772.13, F.S., creates a civil remedy for victims of acts of terrorism or facilitating or furthering terrorism. A
person who is injured by an act of terrorism, or by an act facilitating or furthering terrorism, has a cause of action
for threefold the actual damages sustained and, in any such action, is entitled to minimum damages in the amount
of $1,000 and reasonable attorney fees and court costs in the trial and appellate courts. A similar civil cause of
action for acts of terrorism is created in federal law at 18 U.S.C. s. 2333.
Fugitive Disentitlement Doctrine
Section 896.106, F.S., prohibits a person from using state court resources in furtherance of a claim in any civil
forfeiture or third-party proceeding in a related forfeiture action if that person purposely leaves the jurisdiction or
otherwise evades the jurisdiction in which a criminal case is pending.46 Thus, Florida’s fugitive disentitlement
section applies the same concept utilized under the federal doctrine to state courts. As such, a Florida court may
prohibit a fugitive from seeking to recover in a civil matter while “gaming the system” to evade criminal penalties.
Stansell v. Lopez Bello
In 2010, Keith Stansell, Marc Gonsalves, Thomas Howes, and the family of Thomas Janis obtained a $318 million
default judgment against the Revolutionary Armed Forces of Colombia (FARC) under the federal Anti-Terrorism
Act after having been taken hostage and tortured by the FARC for 5.5 years.47 Since the judgment was obtained in
2010, the prevailing plaintiffs have attempted to satisfy the judgment by seizing assets owned by the FARC and its
subsidiaries.
Samark Jose Lopez Bello (Lopez-Bello) is a Venezuelan national and designated narcotics kingpin currently on the
Homeland Security’s Most Wanted List for sanctions evasion.48 Lopez-Bello and his front companies were each
ruled to be an agency or instrumentality of the FARC and their assets were ordered to be turned over to the
prevailing plaintiffs, but Lopez-Bello’s agents and front companies continue to evade being forced to satisfy the
judgment by taking advantage of the Florida court system. Lopez-Bello and his attorneys continue to demand jury
trials in the post-judgment phase of the proceedings, but then they fail to appear. This has caused over a decade of
delay in the victims obtaining money on the judgment they were awarded.
Federal Law
Federal Anti-Terrorism Act
The Federal Anti-Terrorism Act creates a cause of action for a tort related to terrorism.49 Specifically, this federal
cause of action allows any United States citizen injured in his or her person, property, or business by reason of an
act of international terrorism, or his or her estate, survivors, or heirs, to sue in United States district court and
recover treble damages and the cost of the suit, including attorney fees.
Under the federal Terrorism Risk Insurance Act (TRIA),50 recovery by a U.S. national against a terrorist may include
any asset of that terrorist party, including assets of an agency or instrumentality of that party, seized or frozen by
the U.S. pursuant to federal law.51
44 A first-degree felony is punishable by up to 30 years’ imprisonment and a $10,000 fine.
45 A life felony is punishable by up to life imprisonment or a term of years not exceeding life and a $15,000 fine. Sections
775.082 and 775.083, F.S.
46 S. 896.106, F.S.
47 Thomas Janis was a decorated U.S. Army Delta Force pilot who successfully crash landed the plane the men were in after it
had been shot down by the FARC. Upon landing, Mr. Janis was executed planeside.
48 U.S. Immigration and Customs Enforcement, https://www.ice.gov/most-wanted/lopez-bello-samark-jose (last visited March
5, 2025).
49 18 U.S.C. s. 2333.
50 15 U.S.C. s. 6701 note; Pub. L. No. 107-297, 116 Stat. 2322.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
9
Federal Fugitive Disentitlement Doctrine
The federal Fugitive Disentitlement Doctrine52 permits a court to deny a party’s request to use and access the U.S.
court system when he or she purposefully evades the jurisdiction to avoid criminal prosecution.53 Essentially, the
rationale of the doctrine is that a person who purposely games the U.S. justice system to avoid criminal prosecution
should not be rewarded with the benefits that stem from access to the appellate process.54 As such, a court may
deny appellate review of a matter to a fugitive based on the doctrine.
U.S. Office of Foreign Assets Control (“OFAC”) – Department of Treasury
The Office of Foreign Assets Control (OFAC) of the United States Treasury administers and enforces economic and
trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and
regimes, terrorists, international narcotics traffickers, and other threats to the national security of the United
States.55 OFAC administers a number of different sanctions programs. The sanctions can be either comprehensive
or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security
goals.56
Blocked Assets
“Blocking” refers to freezing assets or other property. OFAC has the authority to block assets or property which
immediately imposes an across the board prohibition against transfers or dealings of any kind with regard to the
blocked property.57 Similarly, OFAC has the authority to block all property and interests in property of certain
persons, known as “blocked persons.”58 In the case of a blocked person, any property and interests in property of a
blocked person that are within the U.S. or within the possession and control of a U.S. person must be blocked
(frozen)-not seized- and may not be transferred, withdrawn, or otherwise dealt in.59 Title to the blocked property
remains with the blocked person, but the exercise of powers and privileges normally associated with ownership is
prohibited without authorization from OFAC.60
Additionally, parties must report blocked property to OFAC within 10 business days from the time the property is
blocked.61 Blocked persons include those individuals who appear on OFAC’s List of Specially Designated Nationals
and Blocked Persons List (“SDN List”).62
51 See s. 805(b) of the Foreign Narcotics Kingpin Designation Act. 21 U.S.C. 1904(b).
52 28 U.S.C. s. 2466.
53 Chloe S. Booth, Doctrine on the Run: The Deepening Circuit Split Concerning Application of the Fugitive Disentitlement
Doctrine to Foreign Nationals, 59 B.C. L. Rev. 1153 (Mar. 2018).
54 Id. at 1155, (citing to Paige Taylor, The Good, the Bad, the Ugly: A Survey of Selected Fifth Circuit Immigration Cases, 41 Tex.
Tech. L. Rev. 989, 1005 (2009)).
55 U.S. Dep’t. of Treasury, Office of Foreign Assets Control, https://ofac.treasury.gov/ (last visited March 5, 2025).
56 Office of Foreign Assets Control, Sanctions Programs and Country Information, https://ofac.treasury.gov/sanctions-
programs-and-country-information (last visited March 5, 2025).
57 OFAC, Basic Information on OFAC and Sanctions,
https://ofac.treasury.gov/faqs/9#:~:text=OFAC%20authorities%20may%20require%20U.S.,a%20U.S.%20person%20must
%20be (last visited March 5, 2025).
58 Id.
59 Id.
60 Id.
61 Id.
62 Id. The OFAC SDN list can be searched online and is available at https://sanctionssearch.ofac.treas.gov/ (last visited March
6, 2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
10
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2023 SB 1442 Grant Collins The bill became law on June
20, 2023.
OTHER RESOURCES:
FinCen Fundamentals of the Funds Transfer Process
U.S. Supreme Court, Stansell, et al v. Samark Jose Lopez Bello, et al.
United States Office of Foreign Assets Control
U.S. Department of the Treasury: Terrorism Risk Insurance Program
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Civil Justice & Claims 15 Y, 0 N, As CS 3/13/2025 Jones Mathews
Subcommittee
THE CHANGES ADOPTED BY THE Clarified that the provisions of the bill apply to any postjudgment
COMMITTEE: execution proceedings to enforce a judgment entered against a
terrorist party as well as any agency or instrumentality of the terrorist
party who is not named in the judgment pursuant to federal law.
Clarified that creditor process may be served upon any person or entity
over which the court has personal jurisdiction.
Clarified writs of garnishment and proceedings supplementary issued
under s. 77.01, F.S. and s. 56.29, F.S., respectively, apply to intangible
assets regardless of where they may be considered to be physically
located. Further, the changes adopted clarified that service of a writ or
notice to appear under the bill provides the court with in rem
jurisdiction over any intangible assets, regardless of the location of
such assets.
Clarified that the interest of a debtor in a financial asset or security
entitlement may be reached by a creditor or legal process and if that
creditor s a foreign entity, legal process under the bill may be served
upon the U.S. securities custodian or intermediary that has reported
holding, maintaining, processing, or controlling the blocked assets.
Further, such financial assets are subject to execution, garnishment,
and turnover.
Provided applicability.
Amended the effective date providing that the bill shall be effective
upon becoming law
Insurance & Banking Hamon Schenk
Subcommittee
Judiciary Committee
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11
THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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12
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
CS/HB 265 2025
1 A bill to be entitled
2 An act relating to postjudgment execution proceedings
3 relating to terrorism; amending s. 772.13, F.S.;
4 providing additional requirements for postjudgment
5 execution proceedings to enforce judgments entered
6 against terrorist parties under specified provisions;
7 providing retroactive application of specified
8 provisions; providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Subsection (6) of section 772.13, Florida
13 Statutes, is amended to read:
14 772.13 Civil remedy for terrorism or facilitating or
15 furthering terrorism.—
16 (6)(a) In any postjudgment execution proceedings to
17 enforce a judgment entered against a terrorist party under this
18 section or under 18 U.S.C. s. 2333 or a substantially similar
19 law of the United States or of any state or territory of the
20 United States, including postjudgment execution proceedings
21 against any agency or instrumentality of the terrorist party not
22 named in the judgment pursuant to s. 201(a) of the Terrorism
23 Risk Insurance Act, 28 U.S.C. s. 1610:
24 1. There is no right to a jury trial under s. 56.18 or s.
25 77.08; and
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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
CS/HB 265 2025
26 2. A defendant or a person may not use the resources of
27 the courts of this state in furtherance of a defense or an
28 objection to postjudgment collection proceedings if the
29 defendant or person purposely leaves the jurisdiction of this
30 state or the United States, declines to enter or reenter this
31 state or the United States to submit to its jurisdiction, or
32 otherwise evades the jurisdiction of the court in which a
33 criminal case is pending against the defendant or person. This
34 subparagraph applies to any entity that is owned or controlled
35 by a person to whom this paragraph applies;
36 3. Creditor process issued under chapter 56 or chapter 77
37 may be served upon any person or entity over whom the court has
38 personal jurisdiction. Writs of garnishment issued under s.
39 77.01 and proceedings supplementary under s. 56.29 apply to
40 intangible assets wherever located, without territorial
41 limitation, including bank accounts as defined in s.
42 674.104(1)(a), financial assets as defined in s. 678.1021(1), or
43 other intangible property as defined in s. 717.101. The situs of
44 any intangible assets held or maintained by or in the
45 possession, custody, or control of a person or entity so served
46 shall be deemed to be in this state for the purposes of a
47 proceeding under chapter 56 or chapter 77. Service of a writ or
48 notice to appear under this section shall provide the court with
49 in rem jurisdiction over any intangible assets regardless of the
50 location of the assets;
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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
CS/HB 265 2025
51 4. Notwithstanding s. 678.1121, the interest of a debtor
52 in a financial asset or security entitlement may be reached by a
53 creditor by legal process upon the securities intermediary with
54 whom the debtor's securities account is maintained, or, if that
55 is a foreign entity, legal process under chapter 56 or chapter
56 77 may be served upon the United States securities custodian or
57 intermediary that has reported holding, maintaining, possessing,
58 or controlling the blocked financial assets or security
59 entitlements to the Office of Foreign Assets Control of the
60 United States Department of the Treasury, and such financial
61 assets or security entitlements shall be subject to execution,
62 garnishment, and turnover by the United States securities
63 custodian or intermediary; and
64 5. Notwithstanding s. 670.502(4), when an electronic funds
65 transfer is not completed within 5 banking days and is canceled
66 pursuant to s. 670.211(4) because a United States intermediary
67 financial institution has blocked the transaction in compliance
68 with a United States sanctions program, and a terrorist party or
69 any agency or instrumentality thereof was either the originator
70 or the intended beneficiary, then the blocked funds shall be
71 deemed owned by the terrorist party or its agency or
72 instrumentality and shall be subject to execution and
73 garnishment.
74 (b) Paragraph (a) applies to any postjudgment execution
75 proceedings, including creditor process under chapter 56 or
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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
CS/HB 265 2025
76 chapter 77 served, judgment collectible under state law and to
77 any civil action pending, or filed before, on, or after the
78 effective date of this act June 20, 2023.
79 Section 2. This act shall take effect upon becoming a law.
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hb265-01-c1
HB 315
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 315 COMPANION BILL: None
TITLE: Transportation Network Company and Driver LINKED BILLS: None
Insurance Requirements RELATED BILLS: SB 1206 (DiCeglie)
SPONSOR(S): Fabricio
Committee References
Insurance & Banking Commerce
SUMMARY
Effect of the Bill:
The bill changes the insurance requirement that applies when a transportation network driver (i.e., Uber, Lyft,
Sidecar, etc.) is engaged in a prearranged ride, but the rider is not in the vehicle, from $1 million, per accident for
death, bodily injury, and property damage, to $50,000 for bodily injury or death to one person, $100,000 for bodily
injury or death, per incident, and $25,000 for property damage. This is the same insurance obligation that applies
when the TNC driver is logged on to the application but is waiting to be connected to a rider for a prearranged ride.
The insurance requirement for when a TNC driver is engaged in a prearranged ride and the rider is in the vehicle is
unchanged at $1 million, per accident for death, bodily injury, and property damage.
Fiscal or Economic Impact:
TNC networks may pay reduced insurance premiums, which may possibly be passed onto consumers.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Current law requires at least $1 million insurance coverage for death, bodily injury, and property damage for TNC
drivers engaged in any prearranged ride, regardless of whether a rider is occupying the vehicle. The bill reduces
this requirement if the TNC driver is engaged in a prearranged ride with no rider occupying the vehicle, i.e., they
have connected on the application for a ride and the TNC driver is en route to the rider’s location.
When a TNC driver is logged into the application, but not connected to a rider at all, the minimum coverage
requirement is $50,000 for death and bodily injury per person, $100,000 for death and bodily injury per incident,
and $25,000 for property damage in addition to the standard personal injury protection and
uninsured/underinsured coverages required for Florida drivers.12
For when the TNC driver is engaged with a rider for a prearranged ride, but the rider is not present in the vehicle,
the bill changes the applicable coverage requirement from the current $1 million $50,000 for death and bodily
injury per person, $100,000 for death and bodily injury per incident, and $25,000 for property damage.
The ultimate outcome of the bill is that the lower minimum coverage requirements currently applicable to TNC
drivers logged onto the digital network but not engaged in a prearranged ride will now also apply to TNC drivers
1 For purposes of comparison, s. 324.032, F.S., requires for-hire passenger transportation vehicles to carry limits of
$125,000/$250,000 for bodily injury and $50,000 for property damage. Taxicabs, limousines, and other for-hire
transportation vehicles are subject to s. 324.032, F.S.
2 For the personal injury protection and uninsured/underinsured coverage requirements, see infra notes 4-5.
STORAGE NAME: h0315.IBS
DATE: 3/4/2025
1
engaged in a prearranged ride with no rider. The minimum coverage required for TNC drivers engaged in a
prearranged ride with a rider present remains unchanged.
The effective date of the bill is July 1, 2025.
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
TNC networks may pay reduced insurance premiums, which may possibly be passed onto consumers.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Transportation Network Companies (TNCs)
Transportation network companies (TNCs) are businesses that use a digital network to connect riders who provide
prearranged rides. Examples of TNCs include Uber, Lyft, and Sidecar. Chapter 627.748, F.S., governs the operation
of TNCs, including their insurance coverage requirements.
The law defines a “TNC vehicle” as a vehicle that is used by a TNC driver to offer or provide a prearranged ride and
owned, leased, or otherwise authorized to be used by the TNC driver. A vehicle that is let or rented to another for
consideration may be used as a TNC vehicle. The bill specifies that a taxicab, jitney, limousine, or for-hire vehicle is
not a TNC vehicle.
Statute also defines the term “prearranged ride” as the provision of transportation by a TNC driver to a rider,
beginning when a TNC driver accepts a ride requested by a rider through a digital network3 controlled by a TNC,
continuing while the TNC driver transports the requesting rider, and ending when the last requesting rider departs
from the TNC vehicle. The term does not include a taxicab, for-hire vehicle, or street hail4 service and does not
include ridesharing,5 carpool,6 or any other type of service in which the driver receives a fee that does not exceed
the driver's cost to provide the ride.
TNC Coverage Requirements
Current law prescribes different insurance requirements for two scenarios: when a driver is logged on but not
engaged in a ride, and when a driver is engaged in a prearranged ride. The required coverage is significantly higher
for TNC drivers engaged in a prearranged ride.
The following coverage requirements apply while a TNC driver is logged on to the digital network but not engaged
in a prearranged ride under Section 627.748(7)(b), F.S.:
3 “Digital network” is defined as any online-enabled technology application service, website, or system offered or used by a
TNC which enables the prearrangement of riders with TNC drivers. F.S., Section 627.748(1)(a).
4 “Street hail” is defined as an immediate arrangement on a street with a driver by a person using any method other than a
digital network to seek immediate transportation.
5 Section 341.031(9)(a), F.S., defines “ridesharing” as an arrangement between persons with a common destination, or
destinations, within the same proximity, to share the use of a motor vehicle on a recurring basis for round-trip transportation
to and from their place of employment or other common destination. For purposes of ridesharing, employment shall be
deemed to commence when an employee arrives at the employer's place of employment to report for work and shall be
deemed to terminate when the employee leaves the employer's place of employment, excluding areas not under the control of
the employer. However, an employee shall be deemed to be within the course of employment when the employee is engaged in
the performance of duties assigned or directed by the employer, or acting in the furtherance of the business of the employer,
irrespective of location.
6 Section 450.28(3), F.S., defines “carpool” as an arrangement made by the workers using one worker's own vehicle for
transportation to and from work and for which the driver or owner of the vehicle is not paid by any third person other than
the members of the carpool.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Primary automobile liability coverage of at least $50,000 for death and bodily injury per person, $100,000
for death and bodily injury per incident, and $25,000 for property damage.7
Personal injury protection benefits that meet the minimum coverage amounts required under sections
627.730-627.7405, F.S.8
Uninsured and underinsured vehicle coverage as required by section 627.727, F.S.9
Current law applies the following coverage requirements while a TNC driver is engaged in a prearranged ride
under Section 627.748(7)(c), both when connected to a rider but the rider is not yet in the vehicle and when the
rider is present:
A primary automobile liability coverage of at least $1 million for death, bodily injury, and property
damage.10
Personal injury protection meeting the minimum coverage amounts required for a limousine under
627.730-627.7405, F.S.11
Uninsured and underinsured vehicle coverage as required by section 627.727, F.S.12
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Lloyd Schenk
Subcommittee
Commerce Committee
7 Section 627.748(7)(b), F.S.
8 Sections 627.730-627.7405, F.S., are the “Florida Motor Vehicle No-Fault Law.” The law requires Florida motor vehicle
owners to maintain Personal Injury Protection (PIP) insurance coverage.
9 Section 627.727, F.S., provides uninsured and underinsured vehicle coverage requirements for all motor vehicle liability
policies issued in Florida..
10 Section 627.748(7)(c), F.S.
11 Supra note 8.
12 Supra note 9.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
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
HB 315 2025
1 A bill to be entitled
2 An act relating to transportation network company and
3 driver insurance requirements; amending s. 627.748,
4 F.S.; revising automobile insurance requirements for
5 transportation network companies and drivers;
6 providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraphs (b) and (c) of subsection (7) of
11 section 627.748, Florida Statutes, are amended to read:
12 627.748 Transportation network companies.—
13 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER
14 INSURANCE REQUIREMENTS.—
15 (b) The following automobile insurance requirements apply
16 while a participating TNC driver is logged on to the digital
17 network but is not engaged in a prearranged ride or while a
18 participating TNC driver is engaged in a prearranged ride but a
19 rider does not occupy the TNC vehicle:
20 1. Automobile insurance that provides:
21 a. A primary automobile liability coverage of at least
22 $50,000 for death and bodily injury per person, $100,000 for
23 death and bodily injury per incident, and $25,000 for property
24 damage;
25 b. Personal injury protection benefits that meet the
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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
HB 315 2025
26 minimum coverage amounts required under ss. 627.730-627.7405;
27 and
28 c. Uninsured and underinsured vehicle coverage as required
29 by s. 627.727.
30 2. The coverage requirements of this paragraph may be
31 satisfied by any of the following:
32 a. Automobile insurance maintained by the TNC driver or
33 the TNC vehicle owner;
34 b. Automobile insurance maintained by the TNC; or
35 c. A combination of sub-subparagraphs a. and b.
36 (c) The following automobile insurance requirements apply
37 while a TNC driver is engaged in a prearranged ride and a rider
38 occupies the TNC vehicle:
39 1. Automobile insurance that provides:
40 a. A primary automobile liability coverage of at least $1
41 million for death, bodily injury, and property damage;
42 b. Personal injury protection benefits that meet the
43 minimum coverage amounts required of a limousine under ss.
44 627.730-627.7405; and
45 c. Uninsured and underinsured vehicle coverage as required
46 by s. 627.727.
47 2. The coverage requirements of this paragraph may be
48 satisfied by any of the following:
49 a. Automobile insurance maintained by the TNC driver or
50 the TNC vehicle owner;
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HB 315 2025
51 b. Automobile insurance maintained by the TNC; or
52 c. A combination of sub-subparagraphs a. and b.
53 Section 2. This act shall take effect July 1, 2025.
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hb315-00
Insurance & Banking Subcommittee
HB 315
Transportation Network Company and Driver Insurance Requirements
AMENDMENT SUMMARY
March 27, 2025
Amendment 1 by Fabricio (line 10):
• Clarifies provisions of the bill that establish insurance requirements applicable
while a participating transportation network company (TNC) driver has accepted
a prearranged ride but a rider does not occupy the TNC vehicle.
• Provides that a TNC must maintain certain required coverage unless the TNC
driver maintains a policy that does not exclude such coverage.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 315 (2025)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Fabricio offered the following:
4
5 Amendment
6 Remove lines 10-52 and insert:
7 Section 1. Paragraphs (c) through (i) of subsection (7) of
8 section 627.748, Florida Statutes, are redesignated as
9 paragraphs (d) through (j), respectively, paragraph (a) and
10 present paragraphs (c), (d), and (h) of that subsection are
11 amended, and a new paragraph (c) is added to that subsection, to
12 read:
13 627.748 Transportation network companies.—
14 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER
15 INSURANCE REQUIREMENTS.—
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Page 1 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 315 (2025)
Amendment No. 1
16 (a) Beginning July 1, 2025 2017, a TNC driver or a TNC on
17 behalf of the TNC driver shall maintain primary automobile
18 insurance that:
19 1. Recognizes that the TNC driver is a TNC driver or
20 otherwise uses a vehicle to transport riders for compensation;
21 and
22 2. Covers the TNC driver while the TNC driver is logged on
23 to the digital network of the TNC or while the TNC driver is
24 engaged in a prearranged ride.
25 (c) The following automobile insurance requirements apply
26 while a participating TNC driver has accepted a prearranged ride
27 but a rider does not occupy the TNC vehicle:
28 1. Automobile insurance that provides:
29 a. A primary automobile liability coverage of at least
30 $50,000 for death and bodily injury per person, $100,000 for
31 death and bodily injury per incident, and $25,000 for property
32 damage;
33 b. Personal injury protection benefits that meet the
34 minimum coverage amounts required under ss. 627.730-627.7405;
35 and
36 c. Uninsured and underinsured vehicle coverage as required
37 under s. 627.727.
38 2. The coverage requirements of this paragraph may be
39 satisfied by any of the following:
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Page 2 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 315 (2025)
Amendment No. 1
40 a. Automobile insurance maintained by the TNC driver or
41 the TNC vehicle owner;
42 b. Automobile insurance maintained by the TNC; or
43 c. A combination of sub-subparagraphs a. and b.
44 (d)(c) The following automobile insurance requirements
45 apply while a TNC driver is engaged in a prearranged ride and
46 the rider occupies the TNC vehicle:
47 1. Automobile insurance that provides:
48 a. A primary automobile liability coverage of at least $1
49 million for death, bodily injury, and property damage;
50 b. Personal injury protection benefits that meet the
51 minimum coverage amounts required of a limousine under ss.
52 627.730-627.7405; and
53 c. Uninsured and underinsured vehicle coverage as required
54 under by s. 627.727.
55 2. The coverage requirements of this paragraph may be
56 satisfied by any of the following:
57 a. Automobile insurance maintained by the TNC driver or
58 the TNC vehicle owner;
59 b. Automobile insurance maintained by the TNC; or
60 c. A combination of sub-subparagraphs a. and b.
61 (e)(d) The TNC shall maintain the required coverage under
62 paragraphs (b), (c), and (d) unless the driver maintains a
63 policy that does not exclude, pursuant to subsection (8), the
64 required coverage under paragraph (b), paragraph (c), or
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Page 3 of 4
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 315 (2025)
Amendment No. 1
65 paragraph (d). If the TNC driver's insurance maintained by the
66 TNC driver were to lapse under paragraph (b), or paragraph (c),
67 or paragraph (d) has lapsed or does not provide the required
68 coverage, the insurance maintained by the TNC must provide the
69 coverage required under this subsection, beginning with the
70 first dollar of a claim, and have the duty to defend such claim.
71 (i)(h) A TNC driver shall carry proof of coverage
72 satisfying paragraphs (b), and (c), and (d) with him or her at
73 all times during his or her use of a TNC vehicle in connection
74 with a digital network. In the event of an accident, a TNC
75 driver shall provide this insurance coverage information to any
76 party directly involved in the accident or the party's
77 designated representative, automobile insurers, and
78 investigating police officers. Proof of financial responsibility
79 may be presented through an electronic device, such as a digital
80 phone application, under s. 316.646. Upon request, a TNC driver
81 shall also disclose to any party directly involved in the
82 accident or the party's designated representative, automobile
83 insurers, and investigating police officers whether he or she
84 was logged on to a digital network or was engaged in a
85 prearranged ride at the time of the accident.
745969 - h0315-line10.docx
Published On: 3/26/2025 2:12:49 PM
Page 4 of 4
CS/HB 1173
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1173 COMPANION BILL: CS/SB 806 (Yarborough)
TITLE: Florida Trust Code LINKED BILLS: None
SPONSOR(S): Duggan RELATED BILLS: None
Committee References
Civil Justice & Claims Insurance & Banking Judiciary
14 Y, 2 N, As CS
SUMMARY
Effect of the Bill:
CS/HB 1173 limits the common law’s “special interest exception” for charitable trust enforcement by giving the
Florida Attorney General the exclusive authority to assert, in any judicial proceeding within Florida or elsewhere,
the rights of a qualified beneficiary of a charitable trust having its principal place of administration in Florida. The
bill also expressly prohibits the Attorney General or other public officer of another state from asserting the rights
made exclusive to the Florida Attorney General by the bill, and makes conforming changes.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill amends provisions of the Florida Trust Code to limit the common law’s “special interest exception” for
charitable trust enforcement in order to prevent the Attorney General or other public officers of states other than
Florida from suing to enforce the rights of the qualified beneficiaries of a charitable trust with its principal place of
administration in Florida. To accomplish this, the bill:
Amends s. 736.0110, F.S., to provide that, where the Florida Attorney General asserts the rights of a
qualified beneficiary under that section, the Florida Attorney General has the exclusive authority to
represent the general public, unnamed charitable beneficiaries, and any person having a special interest in
a charitable trust in any judicial proceeding, within Florida or elsewhere, with respect to all matters
relating to the charitable trust. This standing extends to all matters relating to the trust’s administration,
including contract and trust law claims relating to charitable distributions and the exercise of trustee
powers, and the bill expressly prohibits the Attorney General or other public officer of another state from
asserting the rights made exclusive to the Florida Attorney General under this section. (Section 1)
Amends s. 736.0405, F.S., to provide that, though current law gives the settlor of a charitable trust, “among
others,” standing to enforce the trust, this section may not be construed to afford standing to the Attorney
General or public officer of another state with respect to any charitable trust having its principal place of
administration in Florida. (Section 3)
The bill also:
Makes a conforming change to s. 736.0106, F.S. (Section 2)
Reenacts s. 738.303, F.S., to incorporate the amendment made to s. 736.0110, F.S. (Section 4)
Provides an effective date of upon becoming a law. (Section 5)
STORAGE NAME: h1173b.IBS
DATE: 3/25/2025
1
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Florida Attorney General
Article IV, section 4 of the Florida Constitution designates the Florida Attorney General as the chief legal officer of
this state. Elected to serve a four-year term, the Florida Attorney General’s powers and duties, codified in Art. IV,
section 4 of the Florida Constitution and in ch. 16, F.S., include asserting the rights of Florida’s citizens and those
impacted by business and commercial activities occurring in this state in legal proceedings as directed by law.
Florida Trust Code
Generally speaking, a trust is a relationship in which one party (the “settlor”)1 gives another party (the “trustee”)2
the right to hold title to the settlor’s assets for a third party’s benefit (the “beneficiary”).3 A trust may be created
and take effect during a settlor’s lifetime (“a living trust”) or may be created by a will or other disposition and take
effect when the settlor dies (“testamentary trust”).4 A trust may also be revocable (so that the terms may be
changed at any time before the settlor’s death) or irrevocable (so that the terms cannot be modified after the
trust’s creation absent a court order upon the consent of the beneficiaries or where the trust’s purposes have
become frustrated or illegal).5
Trust Governance
A trust is generally governed by the law of the jurisdiction designated in the trust’s terms, provided there is a
sufficient nexus to the designated jurisdiction at the time of the trust’s creation or during the trust’s
administration; a sufficient nexus may include, but is not limited to, the location of real property held by the trust
or the residence or location of an office of the settlor, a trustee, or any beneficiary.6 However, where there is no
controlling designation in the trust’s terms, a trust is governed by the law of the jurisdiction where the settlor
resides at the time of the trust’s creation.7
Florida trusts are generally governed by the Florida Trust Code, codified in ch. 736, F.S. However, additional
provisions of Florida law may apply if the trust has special attributes, and, importantly, the terms of the trust
govern over Trust Code provisions unless the Trust Code provides otherwise.8 Further, s. 736.0106, F.S., provides
that “[t]he common law of trusts and principles of equity supplement [the Trust Code], except to the extent
modified by [the Trust Code] or another law of this state.”
Trust Creation
Under Florida law, a trust is created only if certain conditions are met. Specifically, to create a trust:
The settlor must have capacity to create a trust;9
The settlor must indicate an intent to create a trust;
1 “Settlor” means a person, including a testator, who creates or contributes property to a trust. S. 736.0103(18), F.S.
2 A settlor can designate a trustee, and successor trustees, in the trust document itself; however, where there is no designated trustee, or if
the designated trustee is unable or unwilling to accept the trusteeship, the qualified beneficiaries may select a trustee by unanimous
agreement, or else a court may appoint a trustee. S. 736.0704, F.S.
3 A “beneficiary” may have a present or future beneficial interest in a trust, which interest may be vested or contingent. S. 736.0103(4), F.S.
4 See “inter vivos trust” and “testamentary trust,” Black's Law Dictionary (11th ed. 2019); s. 736.0401, F.S.
5 Greg Depersio, Investopedia (Apr. 30, 2023), Revocable Trust v. Irrevocable Trust: What’s the Difference,
https://www.investopedia.com/ask/answers/071615/what-difference-between-revocable-trust-and-living-trust.asp (last visited Mar. 20,
2025).
6 S. 736.0107, F.S.
7 Id.
8 Ss. 736.0102 and 736.0105, F.S.
9 The capacity required to create, amend, revoke, or add property to a trust, or to direct the actions of the trustee, is generally the same as
that required to make a will. In other words, the settlor must be at least 18 years of age and of sound mind, meaning that he or she
understands the nature and extent of the property placed in trust, the identities of the beneficiaries, and the effect of the disposition. Ss.
732.501 and 736.0601, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
The trust must have a definite beneficiary,10 or else be a charitable trust, a trust for the care of an animal,11
or a trust for a non-charitable purpose;12
The trustee must have duties to perform;13 and
The same person cannot be the sole trustee and sole beneficiary.14
Further, a trust may be created only to the extent that its purposes are lawful, not contrary to public policy, and
possible to achieve.15
Principal Place of Administration
Generally speaking, a trust’s “principal place of administration” is the usual place where the day-to-day activities of
the trust occur and, typically, where the trusts’ records are kept; this place may be designated in the trust’s terms
or, where no such designation is made, determined by operation of law. However, s. 736.0108, F.S., provides that a
designation of a trust’s principal place of administration is valid only if there is a sufficient connection with the
designated jurisdiction; under this section, such a connection exists if:
A trustee’s principal place of business is located in or a trustee is a resident of the designated jurisdiction;
or
All or part of the administration occurs in the designated jurisdiction.16
Further, s. 736.0108, F.S., specifies that, where there is no valid designation of a trust’s principal place of
administration, the principal place of administration is the trustee’s usual place of business where the records
pertaining to the trust are kept or, if the trustee has no place of business, the trustee’s place of residence. Other
rules apply where there is no designation but there are co-trustees, or where the trustee is a bank, association, or
trust company organized under Florida law or a bank or savings association organized under United States law
with its main office in Florida.17
Rights of Qualified Beneficiaries
Under Florida law, a “qualified beneficiary” is a living beneficiary who, on the date the beneficiary’s qualification is
determined:
Is a distributee or permissible distributee of trust income or principal;
Would be a distributee or permissible distributee of trust income or principal if the interest of the
distributees described above terminated on that date without causing the trust’s termination; or
Would be a distributee or permissible distributee of trust income or principal if the trust terminated in
accordance with its terms on that date.18
10 A beneficiary is “definite” if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities. S.
736.0402(2), F.S.
11 A trust may be created for the care of an animal alive during the settlor’s lifetime. Such a trust terminates on the animal’s death or, if the
trust was created to provide for the care of more than one qualifying animal, on the death of the last surviving animal. S. 736.0408, F.S.
12 A trust may be created for a non-charitable purpose without a definite or definitely ascertainable beneficiary. Such a trust may not be
enforced for more than 1,000 years. S. 736.0409, F.S.
13 Trustees must generally comply with the duties set out in the trust instrument. The Florida Trust Code also confers a number of duties on
trustees, intended to ensure that trustees put the beneficiaries’ interests before their own interests and act fairly and in good faith to
preserve and protect the trust’s assets for the beneficiaries’ benefit. S. 736.0801, F.S.
14 S. 736.0402(1), F.S.
15 S. 736.0404, F.S.
16 This does not preclude other means for establishing a sufficient connection.
17 S. 736.0108, F.S.
18 For example, imagine a scenario in which a settlor establishes a trust, the terms of which provide that: 1) upon the settlor’s death, the
residue of the trust will be held by a trustee who will distribute the income to Person A during her lifetime; and 2) upon Person A’s death,
the trustee will distribute the remainder to Person B. When the settlor later dies, Person A is a qualified beneficiary because she will receive
the income during her lifetime, and Person B is a qualified beneficiary because she will receive the remainder upon Person A’s death.
Contrast this with a scenario in which the settlor establishes a trust, the terms of which provide that: 1) upon the settlor’s death, the residue
of the trust will be distributed outright to Person A; and 2) if Person A predeceases the settlor, the residue of the trust is to be distributed
outright to Person B. If, after establishing the trust, the settlor dies and Person A is still living, Person A is a qualified beneficiary because she
is entitled to the residue of the trust; however, Person B would not be a qualified beneficiary as the trust would terminate without Person B
receiving any distributions. On the other hand, in that scenario, if Person A had died before the settlor did, Person B would be a qualified
beneficiary. S. 736.0103, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Whether a beneficiary is “qualified” or not has legal significance, as a qualified beneficiary generally has more
rights and obligations with respect to the trust than others who may have an interest therein; this is because the
interests of a “qualified beneficiary” are typically more immediate and defined, while the interests of a beneficiary
that is not a “qualified beneficiary” are more contingent or undefined. Importantly, the rights of a qualified
beneficiary generally include the right to be kept reasonably informed of the trust and its administration, to receive
distributions in accordance with the trust’s terms, and to assert their own rights in court.19
Judicial Proceedings
Generally speaking, the courts intervene in trust administration only to the extent that an interested person
invokes the court’s jurisdiction.20 Where the courts do intervene, judicial proceedings involving a trust may relate
to the validity, administration, or distribution of a trust, and may include proceedings to:
Determine a trust’s validity;
Appoint or remove a trustee;
Ascertain beneficiaries;
Determine any question arising in the administration or distribution of any trust, including questions
pertaining to the construction of the trust instrument;
Determine the existence or non-existence of any immunity, power, privilege, duty, or right;
Obtain a declaration of rights; or
Determine any other matters involving trustees and beneficiaries.21
Charitable Trusts
A “charitable trust” is a trust created for charitable purposes, which purposes may include poverty relief; the
advancement of the arts, science, education, or religion; or the promotion of health, governmental, or municipal
objectives.22 The settlor of a charitable trust may designate in the trust instrument a particular charitable purpose
or beneficiary, but, where the trust instrument includes no such designation, the court may select one or more
charitable purposes or beneficiaries.23
Under s. 736.0405, F.S., the settlor of a charitable trust, “among others,” has standing24 to enforce the trust in court,
and, as discussed above, Florida law also gives a named qualified beneficiary of a charitable trust standing to assert
its own rights in court.25 Further, s. 736.0110, F.S., gives the Florida Attorney General the authority to assert, in any
judicial proceeding, the rights of a qualified beneficiary with respect to a charitable trust having its principal place
of administration in Florida. This is a particularly useful tool when the trust instrument does not name a specific
charitable organization as a beneficiary, but instead specifies a more general charitable purpose from which any
number of charitable organizations or persons may benefit; in such instances, courts have found that the public at
large lacks standing to sue as, “if it were otherwise there would be no end to potential litigation against a given
defendant…brought by individuals or residents, all possessed of the same general interest, since none of them
would be bound by res judicata26 as a result of prior suits.”27
However, the common law28 also provides a “special interest exception” to charitable trust enforcement;
specifically, courts have found that a party alleging a “special interest” – that is, an interest beyond that general
interest possessed by the public at large – has standing to sue to enforce a charitable trust.29 Because of this
19 S. 736.0813, F.S.
20 S. 736.0201, F.S.
21 Id.
22 S. 736.0405, F.S.
23 Id.
24 “Standing” refers to the capacity of a person to bring a lawsuit in court. Legal Information Institute, Standing,
https://www.law.cornell.edu/wex/standing (last visited Mar. 20, 2025).
25 S. 736.0110, F.S.
26 “Res judicata” refers to the legal principal that a cause of action may not be relitigated once it has been judged on the merits. Legal
Information Institute, Res Judicata, https://www.law.cornell.edu/wex/res_judicata (last visited Mar. 20, 2025).
27 U.S. Steele Corp. v. Save Sand Key, Inc., 303 So. 2d 9 (Fla. 1974).
28 The “common law” is law derived from judicial decisions instead of from statutes. Legal Information Institute, Common Law,
https://www.law.cornell.edu/wex/common_law (last visited Mar. 20, 2025).
29 State of Del. ex rel. Gebelein v. Florida First Nat. Bank of Jacksonville, 381 So. 2d 1075 (Fla. 1st DCA 1979).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
exception, Florida courts have allowed the Attorney General of a state other than Florida to sue to enforce a
charitable trust with its principal place of administration in Florida where the court found that the trust
instrument provided a benefit for the people of that other state; this, the courts found, created a “special interest”
in the trust’s enforcement which gave that state’s Attorney General standing to sue on behalf of its interested
citizens.30
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Civil Justice & Claims 14 Y, 2 N, As CS 3/20/2025 Jones Mawn
Subcommittee
THE CHANGES ADOPTED BY THE Limited the Florida Attorney General’s exclusive authority under the bill.
COMMITTEE:
Insurance & Banking Hamon Herrera
Subcommittee
Judiciary Committee
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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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30 See, e.g., id.; see also, e.g., Jennings v. Durden, 2024 WL 2788198 (Fla. 5th DCA 2024).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
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
CS/HB 1173 2025
1 A bill to be entitled
2 An act relating to the Florida Trust Code; amending s.
3 736.0110, F.S.; specifying circumstances in which the
4 Attorney General has exclusive authority to represent
5 certain interests relating to a charitable trust
6 having its principal place of administration in this
7 state; prohibiting certain public officers of another
8 state from asserting such rights; amending s.
9 736.0106, F.S.; conforming provisions to changes made
10 by the act; amending s. 736.0405, F.S.; providing
11 construction; reenacting s. 738.303(2)(b) and (d),
12 F.S., relating to authority of a fiduciary, to
13 incorporate the amendment made to s. 736.0110, F.S.,
14 in references thereto; providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Subsection (3) of section 736.0110, Florida
19 Statutes, is amended to read:
20 736.0110 Others treated as qualified beneficiaries.—
21 (3)(a) The Attorney General may assert the rights of a
22 qualified beneficiary with respect to a charitable trust having
23 its principal place of administration in this state. The
24 Attorney General has standing to assert such rights in any
25 judicial proceedings.
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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
CS/HB 1173 2025
26 (b) Where the Attorney General asserts the rights of a
27 qualified beneficiary as provided in paragraph (a), the Attorney
28 General has the exclusive authority to represent the general
29 public, unnamed charitable beneficiaries, and any person having
30 a special interest in a charitable trust, in any judicial
31 proceedings within this state or elsewhere, with respect to all
32 matters relating to the administration of the charitable trust,
33 including and without limitation, contract and trust law claims
34 relating to charitable distributions and the exercise of trustee
35 powers. The Attorney General of another state or any other
36 public officer of another state does not have standing to assert
37 such rights or interests.
38 Section 2. Section 736.0106, Florida Statutes, is amended
39 to read:
40 736.0106 Common law of trusts; principles of equity.—The
41 common law of trusts and principles of equity supplement this
42 code, except to the extent modified by this code or another law
43 of this state, including, but not limited to, s. 736.0110(3).
44 Section 3. Subsection (3) of section 736.0405, Florida
45 Statutes, is amended to read:
46 736.0405 Charitable purposes; enforcement.—
47 (3) The settlor of a charitable trust, among others, has
48 standing to enforce the trust. This subsection may not be
49 construed to afford standing to the Attorney General of any
50 other state, or another public officer of another state, with
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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
CS/HB 1173 2025
51 respect to any charitable trust having its principal place of
52 administration in this state.
53 Section 4. For the purpose of incorporating the amendment
54 made by this act to section 736.0110, Florida Statutes, in
55 references thereto, paragraphs (b) and (d) of subsection (2) of
56 section 738.303, Florida Statutes, are reenacted to read:
57 738.303 Authority of fiduciary.—
58 (2) A fiduciary may take an action under subsection (1) if
59 all of the following apply:
60 (b) The fiduciary sends a notice in a record to the
61 qualified beneficiaries determined under ss. 736.0103 and
62 736.0110 in the manner required by s. 738.304, describing and
63 proposing to take the action.
64 (d) At least one member of each class of the qualified
65 beneficiaries determined under ss. 736.0103 and 736.0110, other
66 than the Attorney General, receiving the notice under paragraph
67 (b) is:
68 1. If an individual, legally competent;
69 2. If not an individual, in existence; or
70 3. Represented in the manner provided in s. 738.304(2).
71 Section 5. This act shall take effect upon becoming a law.
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hb1173-01-c1
PCS for HB 643
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: PCS for HB 643 COMPANION BILL: CS/SB 1184 (DiCeglie)
TITLE: Residual Market Insurers LINKED BILLS: None
SPONSOR(S): Insurance & Banking Subcommittee RELATED BILLS: None
Committee References
Orig. Comm.: Insurance & Banking
SUMMARY
Effect of the Bill:
The bill amends provisions relating to surplus lines and Citizens Property Insurance Corporation dispute resolution
procedures. Specifically, the bill:
Removes the definition of “diligent effort” relating to surplus lines;
Revises surplus lines eligibility by eliminating the requirement that agents seek coverage from authorized
insurers before placing coverage in the surplus lines market, replacing it with a standard that allows export
if the coverage is not generally available from authorized insurers; clarifies that the full amount of
insurance may be exported without layering; and retains the required disclosure to insureds; and
Authorizes Citizens Property Insurance Corporation to offer policyholders the option, at issuance or
renewal, to resolve claim disputes through arbitration before the Division of Administrative Hearings, with
specific notice and selection requirements.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Surplus Lines
The bill removes the definition of “diligent effort,” which previously required agents to seek and be rejected by
three authorized insurers before being admitted to the surplus lines market. (Section 1)
The bill revises eligibility standards for surplus lines insurance placements by removing the requirement that a
producing agent conduct and document a diligent effort to procure coverage from authorized insurers. Instead, the
bill provides that coverage may be exported to the surplus lines market if it is of a kind or class not generally
available from authorized insurers transacting insurance in this state. The bill also clarifies that the full amount of
insurance may be exported, even if partial coverage might otherwise be available from authorized insurers,
thereby eliminating the expectation that the risk be layered before surplus lines placement is permitted. (Section
2)
Citizens Arbitration Procedures
The bill authorizes Citizens Property Insurance Corporation (Citizens) to offer policyholders the option to resolve
claim disputes through arbitration proceedings before the Division of Administrative Hearings (DOAH). While
current law allows Citizens to use DOAH, the bill clarifies that this option can be offered directly to insureds in
policy forms.
STORAGE NAME: PCS0643.IBS
DATE: 3/25/2025
1
At issuance or renewal, Citizens may use forms that let insureds elect DOAH arbitration for disputes involving
coverage, scope, or value of a claim. The insured must be given written notice of this option and indicate their
choice by marking “ACCEPT” or “DECLINE” on a boldfaced 12-point disclosure immediately before the insured’s
signing. The selection applies for the entire policy term. (Section 3)
The bill provides an effective date of July 1, 2025. (Section 4)
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Regulation of Insurance in Florida
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers and other risk bearing
entities in Florida.1 As part of their regulatory oversight, the OIR may suspend or revoke an insurer’s certificate of
authority under certain conditions.2 The OIR is responsible for examining the affairs, transactions, accounts,
records, and assets of each insurer that holds a certificate of authority to transact insurance business in Florida.3 As
part of the examination process, all persons being examined must make available to the OIR the accounts, records,
documents, files, information, assets, and matters in their possession or control that relate to the subject of the
examination.4 The OIR is also authorized to conduct market conduct examinations to determine compliance with
applicable provisions of the Insurance Code.5
Insurance companies that transact insurance in Florida or that have offices located in the state are required to
obtain a certificate of authority (COA) issued by the OIR pursuant to s. 624.401, F.S. These companies, referred to
as authorized or admitted insurers,6 are broadly regulated by the OIR under the Insurance Code as to reserves,
surplus as to policyholders, solvency, rates and forms, market conduct, permissible investments, and affiliate
relationships.7 Authorized insurers are also required to participate in a variety of government mandated insurance
programs and pay assessments levied by state guaranty funds in the event of insurer insolvencies.8
Surplus Lines Insurance
Surplus lines insurance is the market of last resort for difficult to place commercial and personal lines risks in
Florida.9 Typically, surplus lines insurers write policies for unusual, high-risk situations that include hazardous
materials transporters, commercial trucking enterprises, day care centers, older homes located in coastal areas,
professional athletes, hospitals, expensive boats and cars, and medical malpractice. Surplus lines insurance is
coverage provided by a company that is not licensed in Florida but is allowed to transact insurance in the state as
an “eligible” insurer10 under the surplus lines law (ss. 626.913-626.937, F.S.). Under this law, insurance may only
be purchased from a surplus lines carrier if the necessary amount of coverage cannot be procured after a diligent
effort to buy the coverage from authorized insurers.11
1 S. 20.121(3)(a), F.S. The Financial Services Commission, composed of the Governor, the Attorney General, the Chief Financial Officer, and
the Commissioner of Agriculture, serves as agency head of the Office of Insurance Regulation for purposes of rulemaking. Further, the
Financial Services Commission appoints the commissioner of the Office of Insurance Regulation.
2 S. 624.418, F.S.
3 S. 624.316(1)(a), F.S.
4 S. 624.318(2), F.S.
5 S. 624.3161, F.S.
6 An “authorized” or “admitted” insurer is one duly authorized by a COA to transact insurance in this state.
7 The Insurance Code consists of chs. 624-632, 634, 635, 636, 641, 642, 648, and 651, F.S.
8 For example, Florida licensed direct writers of property and casualty insurance must be members of the Florida Insurance Guaranty
Association, which handles the claims of insolvent insurers under part II of ch. 631, F.S., and insurers offering workers’ compensation
coverage in Florida must be members of the Florida Workers’ Compensation Insurance Guaranty Association, which provides payment of
covered claims for insurers that are declared insolvent under part V of ch. 631, F.S.
9 Surplus lines insurance is insurance coverage provided by an insurer that is not licensed in Florida but is allowed to do business in the
state because the particular coverage offered is not available from Florida-licensed or authorized carriers. Surplus lines insurers are
governed under the Surplus Lines Law (ss. 626.913-626.937, F.S.).
10 An “eligible surplus lines insurer” as defined in s. 626.914(2), F.S., is an “unauthorized insurer” which has been made eligible by the Office
of Insurance Regulation to issue insurance coverage under the surplus lines law.
11 See s. 626.914(4), F.S. A “diligent effort” is defined as seeking coverage from and being rejected by at least three authorized insurers that
write the type of coverage being sought. The rejections must be documented.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Rates charged by a surplus lines carrier must not be lower than the rate applicable and in use by the majority of the
authorized insurers writing similar coverages on similar risks in Florida.12 Likewise, a surplus lines policy contract
form must not be more favorable to the insured as to the coverage or rate offered by the majority of authorized
carriers.13 Except as specifically stated as applicable, surplus lines insurers are not subject to regulation under
ch. 627, F.S., of the Florida Insurance Code, which includes, in part, provisions related to ratings standard,
contracts, and attorney fees for authorized insurers.14
The Florida Surplus Lines Service Office (FSLSO) is governed by a nine-person board of governors consisting of
eight members appointed by the DFS with the insurance consumer advocate being the ninth member.15 The FSLSO
is required to perform its functions under a plan of operation16 that is subject to the approval of the OIR.17 The
FSLSO is required to conduct the following activities:
Receive, record and review all surplus lines insurance policies;
Maintain records of the policies reported to the FSLSO and perform reports as required by the Financial
Services Commission;
Prepare and deliver to each surplus lines agent quarterly reports of each agent's business;
Collect and remit to the DFS the surplus lines tax as provided for in s. 626.932, F.S.;
Reconcile the policies provided by non-admitted insurers with the policies reported to the service office by
agents;
Collect monthly from each surplus lines agent a service fee of up to .03 percent; and
Other activities as specified by statute.18
Diligent Effort
“To export” a policy means that an insurance agent,19 with the consent of the insurance applicant, places a policy
with an unauthorized insurer under the Surplus Lines Law through a surplus lines agent.20 Unless an exception
applies, in order to place business with a surplus lines insurer, the agent must make a “diligent effort” to place the
policy with a Florida-authorized insurer, which is shown by having three written rejections of coverage from
authorized insurers currently writing the type of insurance being sought.21 However, if the cost to replace a
residential dwelling is $700,000 or more, then diligent effort is seeking and being denied coverage from at least
one authorized insurer in the admitted market currently writing that type of coverage.22
Export requirements further specify that:
The premium rate for policies written by a surplus lines insurer cannot be less than the premium rate used
by a majority of authorized insurers for the same coverage on similar risks;
The policy exported cannot provide coverage or rates that are more favorable than those that are used by
the majority of authorized insurers actually writing similar coverages on similar risks;
The deductibles must be the same as those used by one or more authorized insurers, unless the coverage is
for fire or windstorm; and
The policyholder must be advised in writing that coverage may be available and less expensive in the
admitted market and persons insured by surplus lines carriers are not protected under the Florida
Insurance Guaranty Act with respect to any right of recovery for the obligation of an insolvent unlicensed
insurer.23
12 S. 626.916(1)(b), F.S.
13 S. 626.916(1)(c), F.S.
14 s. 626.913(4), F.S.
15 s. 626.921(4), F.S.
16 s. 626.921(3), F.S.
17 s. 626.921(5), F.S.
18 s. 626.921(3), F.S.
19 Typically, the applicant’s usual insurance agent works with the surplus lines agent to arrange the placement, rather than the applicant
working directly with the surplus lines agent.
20 s. 626.914(3), F.S.
21 s. 626.914(4) and 626.916(1)(a), F.S.
22 s. 626.914(4), F.S.
23 s. 626.916(1), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Only four states do not require that an agent make a diligent effort before exporting a policy to a surplus lines
insurer.24 Nineteen states require the agent obtain at least three declinations from authorized insurers before
exporting a policy to a surplus lines insurer.25
Citizens Property Insurance Corporation
Citizens Property Insurance Corporation (Citizens) is a state-created, not-for-profit, tax-exempt governmental
entity whose public purpose is to provide property insurance coverage to those unable to find affordable coverage
in the voluntary admitted market.26 Citizens is not a private insurance company.27 Citizens was statutorily created
in 2002 when the Florida Legislature combined the state’s two insurers of last resort, the Florida Residential
Property and Casualty Joint Underwriting Association (RPCJUA) and the Florida Windstorm Underwriting
Association (FWUA).28
Citizens operates in accordance with the provisions in s. 627.351(6), F.S., and is governed by a nine-member Board
of Governors (board) that administers its Plan of Operations. The Plan of Operations is reviewed and approved by
the Financial Services Commission.29 The Governor, President of the Senate, Speaker of the House of
Representatives, and Chief Financial Officer each appoint two members to the board.30 The Governor appoints an
additional member who serves solely to advocate on behalf of the consumer.31 Citizens is subject to regulation by
the Office of Insurance Regulation (OIR).
Citizens may only appoint as its licensed agents those agents who also hold an appointment by at least three
insurers who are authorized to write and are actually writing or renewing personal lines residential property
coverage, commercial residential property coverage, or commercial nonresidential property coverage within the
state.32
The Division of Administrative Hearings (DOAH)
DOAH is a state agency that employs full-time Administrative Law Judges to conduct hearings in most cases in
which the substantial interests of a person are determined by an agency and which involve a disputed issue of
material fact.33 When a state agency proposes to take some action that is adverse to a person, the affected person is
normally entitled to request an administrative hearing to determine the matter.34 Requests for hearings are
initially made to the appropriate state agency.35 If the case does not involve disputed facts, the agency itself will
conduct a proceeding and subsequently render a decision.36 If the request for hearing indicates that the affected
person disputes facts upon which the proposed action is based, the agency ordinarily refers the case to DOAH for a
hearing.37
DOAH provides a hearing conducted by an independent and neutral Administrative Law Judge who thereafter
enters a Recommendation or Final Order, which is provided to the state agency and the parties in the case. In the
case of a Recommended Order, the agency reviews the Recommended Order and issues a Final Order which usually
adopts the Judge's factual findings, but, under certain circumstances, the agency may reject or modify certain legal
conclusions of the Judge or the recommended penalty, if any. If the Final Order is adverse to the non-agency party,
an appeal may be taken within a limited time to a District Court of Appeal.38
24 These states are Louisiana, Mississippi, Virgina, and Wisconsin. See Wholesale & Specialty Insurance Association Diligent Effort
Compliance Chart, https://www.wsia.org/docs/Diligent%20effort%20chart%202-3-17.pdf (last visited March 13, 2025).
25 Id. Ohio requires five declinations and New Mexico requires four declinations. Idaho and South Carolina require only one declination.
26 The term “admitted market” means insurance companies licensed to transact insurance in Florida.
27 s. 627.351(6)(a)1., F.S.
28 S. 2, ch. 2002-240, Laws of Fla.
29 S. 627.351(6)(a)2., F.S.
30 s. 627.351(6)(c)4.a., F.S.
31 s. 627.351(6)(c)4., F.S.
32 s. 627.351(6)(c)13., F.S.
33 Ch. 120, F.S.
34 s.120.68(1), F.S.
35 See Uniform Rule 28-106.201(2).
36 s.120.57(2), F.S.
37 s.120.57(1), F.S.
38 s.120.68(2)(a), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
Integration of DOAH in Citizens' Dispute Resolution Process
Traditionally, disputes between Citizens and its policyholders that couldn't be resolved through informal
negotiations or traditional alternative dispute resolution methods often resulted in civil suits filed in circuit court.
In July 2022, Citizens' Board of Governors approved a policy endorsement allowing either the insurer or the
insured to direct claims disputes to DOAH. This endorsement was subsequently approved by the OIR in August
2022 and became effective for new and renewing policies on February 1, 2023. 39p
HB 799 (2023) codified Citizens’ authority to include DOAH arbitration in its policy forms and to contract with
DOAH to conduct claim-related dispute proceedings. Under current law, such proceedings are not governed by ch.
120, F.S., but are instead subject to ss. 57.105 and 768.79, F.S., allowing for attorney fee awards and settlement
procedures similar to those in circuit court.40
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2023 799 Griffitts and Barnaby Martin The bill was approved by the
Governor on May 31, 2023.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Orig. Comm.: Insurance & Banking Hamon Herrera
Subcommittee
39 See Insurance Journal, Citizens Insurance to Begin Using DOAH for Dispute Resolution, July 14, 2022,
https://www.insurancejournal.com/news/southeast/2022/07/14/675721.htm; Insurance Journal, Citizens Insurance Adds DOAH
Arbitration Option to Policies, Feb. 6, 2023. https://www.insurancejournal.com/news/southeast/2023/02/06/706063.htm.
40 Ch. 2023-172, § 5, Laws of Fla.; see also § 57.105, 768.79, Fla. Stat. (2023).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
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 643 2025
1 A bill to be entitled
2 An act relating to residual market insurers; amending
3 s. 624.155, F.S.; sufficient evidence to demonstrate
4 an insurance claim for purposes of a bad faith action;
5 clarifying the requirement of sufficient evidence;
6 amending s. 626.914, F.S.; removing the definition of
7 the term "diligent effort"; amending s. 626.916, F.S.;
8 removing the diligent effort and other requirements
9 for insurance coverage to be eligible for export;
10 providing presumption of being informed and of knowing
11 of certain insurance coverage under specified
12 circumstances; amending s. 627.351, F.S.; dispute
13 resolution procedures under Citizens Property
14 Insurance Corporation; providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Subsection (4) of section 626.914, Florida
19 Statutes, is amended to read:
20 626.914 Definitions.—As used in this Surplus Lines Law,
21 the term:
22 (4) "Diligent effort" means seeking coverage from and
23 having been rejected by at least three authorized insurers
24 currently writing this type of coverage and documenting these
25 rejections. However, if the residential structure has a dwelling
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26 replacement cost of $700,000 or more, the term means seeking
27 coverage from and having been rejected by at least one
28 authorized insurer currently writing this type of coverage and
29 documenting this rejection.
30 Section 2. Section 626.916, Florida Statutes, is amended
31 to read:
32 626.916 Eligibility for export.—
33 (1) No insurance coverage shall be eligible for export
34 unless it meets all of the following conditions:
35 (a) The coverage must be of a kind or class not generally
36 available from authorized insurers transacting insurance in this
37 state. The full amount of insurance required must not be
38 procurable, after a diligent effort has been made by the
39 producing agent to do so, from among the insurers authorized to
40 transact and actually writing that kind and class of insurance
41 in this state, and the amount of insurance exported shall be
42 only the excess over the amount so procurable from authorized
43 insurers. Surplus lines agents must obtain a statement verify
44 that a diligent effort has been made by requiring a properly
45 documented statement of diligent effort from the retail or
46 producing agent that the coverage is not available from
47 authorized insurers. However, to be in compliance with the
48 diligent effort requirement, the surplus lines agent's reliance
49 must be reasonable under the particular circumstances
50 surrounding the export of that particular risk. Reasonableness
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51 shall be assessed by taking into account factors which include,
52 but are not limited to, a regularly conducted program of
53 verification of the information provided by the retail or
54 producing agent. Declinations must be documented on a risk-by-
55 risk basis. If it is not possible to obtain the full amount of
56 insurance required by layering the risk, it is permissible to
57 export the full amount.
58 (b) The premium rate at which the coverage is exported
59 shall not be lower than that rate applicable, if any, in actual
60 and current use by a majority of the authorized insurers for the
61 same coverage on a similar risk.
62 (c) The policy or contract form under which the insurance
63 is exported shall not be more favorable to the insured as to the
64 coverage or rate than under similar contracts on file and in
65 actual current use in this state by the majority of authorized
66 insurers actually writing similar coverages on similar risks;
67 except that a coverage may be exported under a unique form of
68 policy designed for use with respect to a particular subject of
69 insurance if a copy of such form is filed with the office by the
70 surplus lines agent desiring to use the same and is subject to
71 the disapproval of the office within 10 days of filing such form
72 exclusive of Saturdays, Sundays, and legal holidays if it finds
73 that the use of such special form is not reasonably necessary
74 for the principal purposes of the coverage or that its use would
75 be contrary to the purposes of this Surplus Lines Law with
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76 respect to the reasonable protection of authorized insurers from
77 unwarranted competition by unauthorized insurers.
78 (d) Except as to extended coverage in connection with fire
79 insurance policies and except as to windstorm insurance, the
80 policy or contract under which the insurance is exported shall
81 not provide for deductible amounts, in determining the existence
82 or extent of the insurer's liability, other than those available
83 under similar policies or contracts in actual and current use by
84 one or more authorized insurers.
85 (e) The insured has signed or otherwise provided
86 documented acknowledgment of a disclosure in substantially the
87 following form: "You are agreeing to place coverage in the
88 surplus lines market. Coverage may be available in the admitted
89 market. Persons insured by surplus lines carriers are not
90 protected under the Florida Insurance Guaranty Act with respect
91 to any right of recovery for the obligation of an insolvent
92 unlicensed insurer." If the acknowledgment of the disclosure is
93 signed by the insured, the insured is presumed to have been
94 informed and to know that other coverage may be available.
95 Section 3. Paragraph (ll) of subsection (6) of section
96 627.351, Florida Statutes, is amended to read:
97 627.351 Insurance risk apportionment plans.—
98 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
99 (ll)1. In addition to any other method of alternative
100 dispute resolution authorized by state law, the corporation may
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101 adopt policy forms that provide an option for the insured to
102 select, at the time of entering into the policy or upon renewal,
103 to have disputes regarding the corporation’s claim
104 determinations for the resolution of disputes regarding its
105 claim determinations, including disputes regarding coverage for,
106 or the scope and value of, a claim, resolved in a proceeding
107 before the Division of Administrative Hearings. Each insured
108 must be notified in writing, at the time of entering into a
109 policy with the corporation and upon each renewal, that they
110 must decide whether to resolve disputes through arbitration
111 before the Division of Administrative Hearings. Such
112 notification must be included, in boldfaced 12-point type
113 immediately preceding the insured’s signature, in the following
114 statement:
115
116 “AN INSURED MUST CHOOSE AT THE TIME OF ENTERING INTO THIS
117 POLICY OR UPON RENEWAL WHETHER TO RESOLVE DISPUTES THROUGH
118 ARBITRATION BEFORE THE DIVISION OF ADMINISTRATIVE HEARINGS.
119 THE INSURED MUST INDICATE THIS SELECTION BY MARKING
120 ‘ACCEPT’ OR ‘DECLINE’ BELOW. THIS DECISION CANNOT BE
121 CHANGED DURING THE TERM OF THE POLICY.”
122
123 Any such policies are not subject to s. 627.70154. All
124 proceedings in the Division of Administrative Hearings pursuant
125 to such policies are subject to ss. 57.105 and 768.79 as if
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126 filed in the courts of this state and are not considered chapter
127 120 administrative proceedings. Rule 1.442, Florida Rules of
128 Civil Procedure, applies to any offer served pursuant to s.
129 768.79, except that, notwithstanding any provision in Rule
130 1.442, Florida Rules of Civil Procedure, to the contrary, an
131 offer shall not be served earlier than 10 days after filing the
132 request for hearing with the Division of Administrative Hearings
133 and shall not be served later than 10 days before the date set
134 for the final hearing. The administrative law judge in such
135 proceedings shall award attorney fees and other relief pursuant
136 to ss. 57.105 and 768.79. The corporation may not seek, and the
137 office may not approve, a maximum hourly rate for attorney fees.
138 2. The corporation may contract with the division to
139 conduct proceedings to resolve disputes regarding its claim
140 determinations as may be provided for in the applicable policies
141 of insurance. This subparagraph expires July 1, 2025.
142 Section 4. This act shall take effect July 1, 2025.
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PCS for HB 1047
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: PCS for HB 1047 COMPANION BILL: SB 230 (Truenow)
TITLE: Insurance LINKED BILLS: None
SPONSOR(S): Insurance & Banking Subcommittee RELATED BILLS: None
Committee References
Orig. Comm.: Insurance & Banking
SUMMARY
Effect of the Bill:
The bill:
Defines “sufficient evidence” for precluding bad faith actions against liability insurers.
Reduces the coursework requirement for general lines agent licensure from 200 to 60 hours.
Limits claims-handling manual requirements to residential property insurers with active policies.
Prohibits public adjusters from adversarial conduct and requires appointment type only in initial text
messages.
Allows policy cancellation or nonrenewal before repairs if the insured no longer has an insurable interest.
Makes a grammatical correction to the required flood insurance disclosure.
Requires written proof-of-loss statements and adjusts communication and disclosure requirements for
property insurers.
Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
Bad Faith
The bill amends s. 624.155, F.S., to define “sufficient evidence” for the purpose of precluding bad faith actions
against liability insurers. “Sufficient evidence” must include written or photographic evidence of personal or
property injury, such as accident reports, photos, medical or repair bills, or receipts. If an insurer believes the
evidence is insufficient, it must object in writing within 10 business days or waive the objection. The claimant then
has 10 business days to clarify or provide more evidence. This change clarifies what constitutes "sufficient
evidence" necessary to trigger the start of the time period within which the insurer must tender payment to avoid
bad faith. (Section 1).
General Lines Agents
The bill decreases the coursework requirement for general lines agent licensure from 200 hours to 60 hours.
(Section 2).
Public Adjusters
The bill requires public adjusters communicating by text message to include their appointment type only in the
initial message. The bill also prohibits public adjusters from engaging in adversarial conduct with insurer
personnel during claims handling, including surreptitious recordings without consent. (Section 3).
Claims Handling Manuals
STORAGE NAME: PCS1047.IBS
DATE: 3/25/2025
1
The bill limits the requirement to maintain a claims-handling manual to only those authorized residential property
insurers with active residential policies. (Section 4).
Notice of Cancellation, Nonrenewal, or Renewal Premiums
The bill allows insurers to cancel or non-renew a policy before repairs are completed if the named insured no
longer has an insurable interest1 in the property. (Section 5).
Required Flood Insurance Disclosure on Homeowner’s Policy Declarations Page
The bill makes a grammatical change to the required flood insurance disclosure on the homeowners’ policy
declaration page. (Section 6).
Property Insurance Claims Handling Requirements and Disclosures
The bill require that proof-of-loss statements submitted to property insurers be in writing. Additionally, the bill
requires adjusters to include their name and license number only in the initial text message, not in all follow-up
texts.
The bill revises the required statements that insurers must include when:
Providing a preliminary or partial estimate of damage, to state that the evaluation is not final and may
change; and
Making a partial payment on a claim, to indicate that the claim is still being reviewed and additional
payments may follow. (Section 7).
The bill becomes effective upon becoming law. (Section 8).
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Regulation of Insurance in Florida
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers and other risk bearing
entities in Florida.2 As part of their regulatory oversight, the OIR may suspend or revoke an insurer’s certificate of
authority under certain conditions.3 The OIR is responsible for examining the affairs, transactions, accounts,
records, and assets of each insurer that holds a certificate of authority to transact insurance business in Florida.4 As
part of the examination process, all persons being examined must make available to the OIR the accounts, records,
documents, files, information, assets, and matters in their possession or control that relate to the subject of the
examination.5 The OIR is also authorized to conduct market conduct examinations to determine compliance with
applicable provisions of the Insurance Code.6
Insurance companies that transact insurance in Florida or that have offices located in the state are required to
obtain a certificate of authority (COA) issued by the OIR pursuant to s. 624.401, F.S. These companies, referred to
as authorized or admitted insurers,7 are broadly regulated by the OIR under the Insurance Code as to reserves,
surplus as to policyholders, solvency, rates and forms, market conduct, permissible investments, and affiliate
1 An insurable interest exists when the insured has a legal or financial stake in the property, such that its loss would result in a
direct economic loss. If the named insured no longer owns the property or otherwise lacks a financial stake in it, the insurer
may no longer be obligated to maintain coverage.
2 s. 20.121(3)(a), F.S. The Financial Services Commission, composed of the Governor, the Attorney General, the Chief Financial Officer, and
the Commissioner of Agriculture, serves as agency head of the Office of Insurance Regulation for purposes of rulemaking. Further, the
Financial Services Commission appoints the commissioner of the Office of Insurance Regulation.
3 s. 624.418, F.S.
4 s. 624.316(1)(a), F.S.
5 s. 624.318(2), F.S.
6 s. 624.3161, F.S.
7 An “authorized” or “admitted” insurer is one duly authorized by a COA to transact insurance in this state.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
relationships.8 Authorized insurers are also required to participate in a variety of government mandated insurance
programs and pay assessments levied by state guaranty funds in the event of insurer insolvencies.9
Bad Faith in Insurance
Insurance is a contract between an insurance company (“insurer”) and the insurance policy’s beneficiary (“the
insured”), in which, for specified consideration called a “premium,” the insurer agrees to pay the insured or third-
party claimants for covered losses.10 An insurer generally owes two significant contractual duties to its insured in
exchange for premium payments: the duty to indemnify and the duty to defend.11
The “duty to indemnify” refers to the insurer’s obligation to issue payment to the insured on a valid claim.12
For example, an insured may purchase a policy requiring the insurer to replace the insured’s vehicle in the
event of a car accident. If a covered accident then occurs, causing the insured’s vehicle to be destroyed, the
duty to indemnify requires the insurer to replace the insured’s vehicle.
The “duty to defend” refers to the insurer’s duty to defend the insured in court against a third party with
respect to a covered claim.13 For example, an insured may purchase a liability policy in the event the
insured causes a car accident and injuries a third party. If a covered accident then occurs, causing injury to
a third-party claimant who sues the insured, the duty to defend requires the insurer to defend the insured
against the claimant’s lawsuit.
Insurer’s Common Law and Statutory Duties
Florida courts, in applying the common law, recognize that an insurer owes its insured a duty of good faith in
negotiating settlements with third-party claimants.14 There is also a statutory duty of good faith codified in s.
624.155, F.S. Under that provision, a statutory bad faith claim may arise where the insurer:
Does not attempt in good faith to settle claims when, under all the circumstances, it could and should have
done so;
Makes claim payments without a statement identifying the applicable coverage; or
Fails to promptly settle a claim under one portion of the policy to influence settlement under another
portion.
Florida courts have interpreted an insurer’s obligation to “act fairly” towards its insured, holding that when the
insured’s liability is clear and an excess judgment15 is likely due to the resulting damage, the insurer has an
affirmative duty to initiate settlement negotiations with third-party claimants.16 If settlement fails, the insurer has
the burden of showing that there was no realistic possibility of settling the claim within the policy limits.17
However, failure to settle a claim, without more, does not necessarily mean that an insurer has acted in bad faith,
as liability may be unclear or the damages may be minimal. Further, courts have generally indicated that merely
negligently failing to settle a claim does not rise to the level of bad faith, though a jury may consider negligence in
the larger context of whether bad faith occurred.18
First-Party vs. Third-Party Bad Faith Claims
There are two general types of bad faith claims: “first-party” claims and “third-party” claims.
8 The Insurance Code consists of chs. 624-632, 634, 635, 636, 641, 642, 648, and 651, F.S.
9 For example, Florida licensed direct writers of property and casualty insurance must be members of the Florida Insurance Guaranty
Association, which handles the claims of insolvent insurers under part II of ch. 631, F.S., and insurers offering workers’ compensation
coverage in Florida must be members of the Florida Workers’ Compensation Insurance Guaranty Association, which provides payment of
covered claims for insurers that are declared insolvent under part V of ch. 631, F.S.
10 16 Williston on Contracts s. 49:103 (4th ed.).
11 Id.
12 Id.
13 Id.
14 Mut. Indemnity Co. v. Shaw, 184 So. 852 (Fla. 1938).
15 An “excess judgment” is a judgment in an amount over and above the insurance policy’s coverage limits, which amount is paid out of the
insured’s own pocket.
16 Powell v. Prudential Prop. and Cas. Ins. Co., 584 So. 2d 12, 14 (Fla. 3d DCA 1991).
17 Id. at 14.
18 See DeLaune v. Liberty Mut. Ins. Co., 314 So. 2d 601, 603 (Fla. 4th DCA 1975).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
A “first-party” bad faith claim is a claim filed by the insured against his or her own insurer; these claims
typically involve allegations that the insurer improperly denied the insured coverage under the policy,
underpaid a covered claim, or delayed payment without adequate justification.19
A “third-party” bad faith claim arises when the insured is exposed to liability to a third party; such a claim,
which may be brought by either the insured or the third party, typically arises when:
o An insurer fails to settle in good faith a third party’s claim against the insured within the policy
limits;
o There is serious injury to the third-party claimant; and
o The policy limits are minimal, thus exposing the insured to an excess judgment.20
Legislative Reforms – HB 837 (2023)
In 2023, HB 837 amended s. 624.155, F.S., to clarify that mere negligence is not sufficient to constitute bad faith
and established that the insured, third-party claimant, and any representative of either have a duty to act in good
faith when furnishing claim information, making demands, setting deadlines, or attempting to settle.21 The judge or
jury (trier of fact) may consider a failure to act in good faith by any of these parties and may reasonably reduce
damages awarded against the insurer accordingly.22
Additionally, HB 837 established a safe harbor from bad faith liability in liability insurance claims. An insurer is not
liable for bad faith under either statute or common law if it tenders the lesser of the policy limits or the amount
demanded by the claimant within 90 days after receiving actual notice of the claim along with sufficient evidence
to support the amount. If the insurer does not tender within the 90-day period, the following applies:
The existence of the safe harbor period and the fact that no bad faith action would have accrued had
payment been tendered are inadmissible in a subsequent bad faith action; and
The applicable statute of limitations is extended by 90 days.23
HB 837 further provided that if multiple third-party claimants present competing claims arising out of a single
occurrence that may exceed the insured’s policy limits, the insurer is not liable beyond those limits if, within 90
days, it either:
Files a lawsuit (interpleader action) under the Florida Rules of Civil Procedure; or
Agrees to binding arbitration and makes the full policy limits available for distribution before a mutually
selected arbitrator, at the insurer’s expense.24
Bad Faith Claim Pre-Suit Notice Requirement
To bring a statutory bad faith claim under s. 624.155, F.S., whether first-party or third-party, a plaintiff must first
give the insurer 60 days’ written notice of the claim by filing a civil remedy notice with Department of Financial
Services (DFS).25 The insurer then has 60 days from receiving notice from DFS to either pay the damages or correct
the circumstances giving rise to the bad faith claim, and the statutory cause of action does not accrue until the 60-
day “cure” period has run without the insurer taking such steps.26 Where the insurer timely pays the damages or
otherwise corrects the circumstances giving rise to the bad faith claim, no statutory bad faith lawsuit may be
brought.27
If a plaintiff brings a third-party common law bad faith claim, by contrast, there is no statutory pre-suit notice
requirement; thus, the insurer cannot avoid a third-party bad faith lawsuit by paying the damages or curing the
circumstances giving rise to the claim within the statutory cure period. However, after HB 837 (2023), the claimant
now has the right to offer the insurer an opportunity to cure.
19 The Florida Senate, Interim Report 2012-132: Insurance Bad Faith (Nov. 2011),
https://www.flsenate.gov/publishedcontent/session/2012/interimreports/2012-132ju.pdf (last visited March. 24, 2025).
20 Id.
21 ch. 2023-15, Laws of Fla.
22 Id.
23 Id.
24 ch. 2023-15, Laws of Fla.
25 s. 624.155(3)(a), F.S.
26 s. 624.155(3)(c), F.S.; Talat Enterprises, Inc. v. Aetna Cas. & Sur. Co., 753 So. 2d 1278, 1284 (Fla. 2000).
27 s. 624.155(3)(c), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
Filing a Bad Faith Claim
Generally, a bad faith cause of action does not accrue until the underlying contractual claim is resolved. 28 In a first-
party context, this means the insured must prevail on their coverage claim before bringing a bad faith suit. In a
third-party context, the action usually accrues only after an excess judgment is entered against the insured. 29
Indefiniteness About What Constitutes Bad Faith
Florida law does not precisely define “bad faith,” and the determination is generally a question of fact for the jury,
based on the totality of the circumstances.30 Courts have noted that insurer liability must be based on more than a
failure to settle or negligence—there must be conduct showing a lack of fair dealing or failure to give due regard to
the insured’s interests.31
Division of Insurance Agent and Agency Services
The DFS Division of Insurance Agent and Agency Services is responsible for the licensing and regulation of
insurance agents, adjusters, insurance agencies, as well as related personnel and business entities.32
No person may be, act as, or advertise, or hold himself/herself out to be an insurance agent, insurance adjuster, or
customer representative unless he or she is currently licensed by DFS and appointed by an appropriate appointing
entity or person.33 There are several types of insurance representatives. These include:
General lines agents,
Life insurance agents,
Health insurance agents,
Title insurance agents,
Personal lines agents, and
Unaffiliated insurance agents.34
General Lines Agent
A general lines agent35 is one who sells the following lines of insurance: property;36 casualty,37 including
commercial liability insurance underwritten by a risk retention group, a commercial self-insurance fund,38 or a
workers’ compensation self-insurance fund;39 surety;40 health;41 and, marine.42 The general lines agent may only
transact health insurance for an insurer that the general lines agent also represents for property and casualty
insurance. If the general lines agent wishes to represent health insurers that are not also property and casualty
insurers, they must be licensed as a health insurance agent.43 Motor vehicle insurance is a type of casualty
insurance.44
Public Adjusters
28 Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289, 1291 (Fla. 1991).
29 Id.
30 Berges v. Infinity Ins. Co., 896 So. 2d 665 (Fla. 2004).
31 See DeLaune v. Liberty Mut. Ins. Co., 314 So. 2d 601, 603 (Fla. 4th DCA 1975) (holding that negligence alone does not amount to bad faith);
Macola v. Gov’t Emps. Ins. Co., 953 So. 2d 451, 458 (Fla. 2007) (explaining that payment of policy limits after a civil remedy notice does not bar
a common law bad faith claim); Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289, 1291 (Fla. 1991) (bad faith action does not accrue
until coverage and damages are determined); Berges v. Infinity Ins. Co., 896 So. 2d 665, 680 (Fla. 2004) (bad faith is assessed under the totality
of the circumstances and requires fair and honest treatment of the insured’s interests).
32 Ch. 626, parts I, II, III, IV, V, VI, VIII, IX, and XIII, F.S.
33 S. 626.112, F.S.
34 S. 626.015, F.S.
35 S. 626.015(5), F.S.
36 S. 624.604, F.S.
37 S. 624.605, F.S.
38 As defined in s. 624.462, F.S.
39 Pursuant to s. 624.4621, F.S.
40 S. 626.606, F.S.
41 Ss. 624.603 and 627.6482, F.S.
42 S. 624.607, F.S.
43 S. 626.829, F.S.
44 S. 624.605, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
Florida law defines a public adjuster as someone who, for something of value, directly or indirectly, prepares,
completes, or files an insurance claim for an insured or third-party claimant, or who, for something of value, acts
on behalf of, or aids, an insured or third-party claimant in settling a claim for loss or damage covered by an
insurance contract, or who advertises for employment as an adjuster of such claims.45 In general, a claimant
executes a contract for the public adjuster to provide claims adjusting services.46
Public adjusters’ contracts relating to property and casualty claims must contain the full name, permanent
business address, phone number, email address, and license number of the public adjuster; and the full name of the
public adjusting firm for whom the public adjuster works.47
In Florida, public adjusters are regulated by the DFS under part VI of ch. 626, F.S.48 To obtain a license, an applicant
must meet specific eligibility, education, and examination requirements. Licensed public adjusters must comply
with continuing education requirements and are subject to disciplinary action by the DFS for violations of the
Florida Insurance Code.49
Code of Ethics and Communication Restrictions
Section 626.878, F.S., requires public adjusters to adhere to ethical standards established by the DFS.50 The Code of
Ethics for Public Adjusters is codified in Rule 69B-220.201, F.A.C., and sets forth rules of professional conduct,
including limitations on how and when a public adjuster may communicate with a policyholder.
Key provisions of the rule include:
A public adjuster may not initiate contact with a policyholder during a period of loss-producing events (e.g.,
a hurricane) until 48 hours after the occurrence of the event, unless the policyholder initiates the contact.
Public adjusters must clearly identify themselves and their role when soliciting business and may not
mislead or deceive a policyholder regarding their services.
All contracts must be in writing and include specific disclosures regarding the public adjuster’s
compensation, the services to be provided, and the policyholder’s right to cancel the contract.
Public adjusters may not materially misrepresent the terms and conditions of an insurance policy or the
outcomes of claims.
Ethical conduct also includes a duty of honesty, fairness, and full disclosure when dealing with
policyholders, insurers, and regulatory authorities.51
Violations of these standards may result in administrative action, including suspension or revocation of the
adjuster’s license, fines, or other penalties.52
Claims-Handling Manuals for Residential Property Insurers
The Florida Insurance Code imposes various requirements on insurers to ensure the fair, prompt, and efficient
handling of property insurance claims. Section 627.4108, F.S., establishes detailed standards for the creation, use,
and regulatory review of claims-handling manuals by authorized residential property insurers operating in
Florida.
This section requires each authorized residential property insurer to create and maintain written claims-handling
manuals that guide internal procedures for processing insurance claims in accordance with Florida law and
customary industry standards.53 These manuals must address the full lifecycle of a claim, including the receipt and
acknowledgment of a claim, communication with policyholders, investigation and estimation of damages, reserving
practices, payment or denial of claims, and claim closure.54
45 s. 626.854, F.S., Public adjusters are regulated under ch. 626, part VI, F.S.
46 See id.
47 s. 626.8796(2), F.S.
48 s. 626.878, F.S.,
49 s. 626.869, F.S. and s. 626.8698, F.S.
50 s. 626.878, F.S.,
51 Fla. Dep’t of Fin. Servs., Public Adjuster Code of Ethics & Contract Checklist, https://www.myfloridacfo.com/docs-sf/consumer-services-
libraries/consumerservices-documents/understanding-coverage/pacodeofethicscontractchecklist.pdf (last visited Mar. 23, 2025).
52 s. 626.8698, F.S.
53 s. 627.4108, F.S.
54 Id.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
To promote accountability and transparency, the OIR can request and review a copy of an insurer’s claims-
handling manual at any time.55 Insurers must provide a true and correct copy of the manual along with an
attestation certifying the timeframe for which the manual was in effect.56
In addition, insurers must submit an annual certification and attestation that their current manuals comply with
applicable legal requirements and reflect at least usual and customary industry practices. The attestation must also
affirm that the insurer has sufficient resources to follow its own claims-handling procedures, including during
disasters or catastrophic events.57
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2023 837 Gregory and Fabricio Martin The bill was approved by the
Governor on May 31, 2023.
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Orig. Comm.: Insurance & Banking Hamon Herrera
Subcommittee
55 s. 627.4108(2), F.S.
56 Id.
57 s. 627.4108(3)(a), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
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 1047 2025
1 A bill to be entitled
2 An act relating to insurance; amending s. 624.155,
3 F.S.; defining sufficient evidence; clarifying the
4 requirement of sufficient evidence; amending s.
5 626.732, F.S.; revising the requirements for licensing
6 or qualifying general lines agents; amending s.
7 626.878, F.S.; specifying when adjusters must include
8 their appointment types if communicating by text
9 message; prohibiting public adjusters from engaging in
10 certain adversarial conduct; amending s. 627.4108,
11 F.S.; limiting the requirements for the claims-
12 handling manual to authorized residential property
13 insurers with active residential policies; amending s.
14 627.4133, F.S.; revising the circumstances under which
15 an insurer or agent may cancel or nonrenew certain
16 residential property insurance policies; amending s.
17 627.7011, F.S.; revising the required statement by
18 insurers issuing a homeowner's insurance policy that
19 does not provide flood insurance coverage; amending s.
20 627.70131, F.S.; requiring that proof-of-loss
21 statements that are received by property insurers be
22 written; specifying when adjusters must include their
23 name and license number if communicating by text
24 message; revising the required statement by property
25 insurers providing a preliminary or partial estimate
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26 of damage regarding a claim; revising the required
27 statement by property insurers providing payment on a
28 claim which is not the full and final payment for the
29 claim; providing an effective date.
30
31 Be It Enacted by the Legislature of the State of Florida:
32
33 Section 1. Subsection (4) of section 624.155, Florida
34 Statutes, is amended to read:
35 624.155 Civil remedy.—
36 (4)(a)1. An action for bad faith involving a liability
37 insurance claim, including any such action brought under the
38 common law, shall not lie if the insurer tenders the lesser of
39 the policy limits or the amount demanded by the claimant within
40 90 days after receiving actual notice of a claim which is
41 accompanied by sufficient evidence to support the amount of the
42 claim.
43 2. For purposes of this paragraph, "sufficient evidence"
44 means written or photographic evidence submitted to the insurer
45 that indicates the claimant has suffered personal injury or
46 property injury. Evidence that may satisfy this requirement
47 includes, but is not limited to:
48 a. Accident reports.
49 b. Photographs of an accident scene, physical injuries, or
50 property damage.
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51 c. Medical bills.
52 d. Repair bills.
53 e. Other receipts or copies of payments rendered.
54 3. If an insurer does not believe the submitted evidence
55 is sufficient under sub-paragraph 2., the insurer must provide a
56 written notice of objection within 10 business days of receipt
57 of the submitted evidence; otherwise, any objection to the
58 sufficiency of the evidence for purposes of this paragraph is
59 waived. The submitting party has an additional 10 business days
60 after receipt of any objection to provide clarification or
61 submit further evidence.
62 Section 2. Subsection (1) of section 626.732, Florida
63 Statutes, is amended to read:
64 626.732 Requirement as to knowledge, experience, or
65 instruction.—
66 (1) Except as provided in subsection (4), an applicant for
67 a license as a general lines agent, except for a chartered
68 property and casualty underwriter (CPCU), may not be qualified
69 or licensed unless, within the 4 years immediately preceding the
70 date the application for license is filed with the department,
71 the applicant has satisfied, at a minimum, one of the following
72 requirements:
73 (a) Taught or successfully completed 60 200 hours of
74 coursework in property, casualty, surety, health, and marine
75 insurance approved by the department, 3 hours of which must be
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76 on the subject matter of ethics.;
77 (b) Completed at least 1 year in responsible insurance
78 duties as a substantially full-time bona fide employee in all
79 lines of property and casualty insurance as set forth in the
80 definition of a general lines agent under s. 626.015, but
81 without the education requirement described in paragraph (a).;
82 or
83 (c) Completed at least 1 year of responsible insurance
84 duties as a licensed and appointed customer representative,
85 service representative, or personal lines agent and 40 hours of
86 coursework approved by the department covering the areas of
87 property, casualty, surety, health, and marine insurance.
88 Section 3. Subsection (2) of section 626.878, Florida
89 Statutes, is amended, and subsection (4) is added to that
90 section, to read:
91 626.878 Rules; code of ethics.—
92 (2) A person licensed as an adjuster must identify himself
93 or herself in any advertisement, solicitation, or written
94 document based on the adjuster appointment type held. However,
95 if the adjuster is communicating with a policyholder by text
96 message, the adjuster's appointment type held is required only
97 in the initial text message and is not required in subsequent
98 text messages.
99 (4) A public adjuster may not engage in any adversarial
100 conduct with insurance company claims personnel during the
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101 course of adjusting claims, including, but not limited to,
102 electronically recording insurance company claims personnel and
103 consultants without their consent.
104 Section 4. Subsection (1) of section 627.4108, Florida
105 Statutes, is amended to read:
106 627.4108 Claims-handling manuals; submission;
107 attestation.—
108 (1) Each authorized residential property insurer with
109 active residential policies conducting business in this state
110 must create and use a claims-handling manual that provides
111 guidelines and procedures and that complies with the
112 requirements of this code and, at a minimum, comports to usual
113 and customary industry claims-handling practices. Such manual
114 must include all of the following guidelines and procedures for:
115 (a) Initially receiving and acknowledging initial receipt
116 of the claim and reviewing and evaluating the claim.;
117 (b) Communicating with policyholders, beginning with the
118 receipt of the claim and continuing until closure of the claim.;
119 (c) Setting the claim reserve.;
120 (d) Investigating the claim, including conducting
121 inspections of the property that is the subject of the claim.;
122 (e) Making preliminary estimates and estimates of the
123 covered damages to the insured property and communicating such
124 estimates to the policyholder.;
125 (f) Paying, partially paying, or denying The payment,
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126 partial payment, or denial of the claim and communicating such
127 claim decision to the policyholder.;
128 (g) Closing claims.; and
129 (h) Any aspect of the claims-handling process which the
130 office determines should be included in the claims-handling
131 manual in order to:
132 1. Comply with the laws of this state or rules or orders
133 of the office or department;
134 2. Ensure that the claims-handling manual, at a minimum,
135 comports with usual and customary industry claims-handling
136 guidelines; or
137 3. Protect policyholders of the insurer or the general
138 public.
139 Section 5. Paragraph (e) of subsection (2) of section
140 627.4133, Florida Statutes, is amended to read:
141 627.4133 Notice of cancellation, nonrenewal, or renewal
142 premium.—
143 (2) With respect to any personal lines or commercial
144 residential property insurance policy, including, but not
145 limited to, any homeowner, mobile home owner, farmowner,
146 condominium association, condominium unit owner, apartment
147 building, or other policy covering a residential structure or
148 its contents:
149 (e)1. An authorized insurer may not cancel or nonrenew a
150 personal residential or commercial residential property
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151 insurance policy covering a dwelling or residential property
152 located in this state:
153 a. For a period of 90 days after the dwelling or
154 residential property has been repaired, if such property has
155 been damaged as a result of a hurricane or wind loss that is the
156 subject of the declaration of emergency pursuant to s. 252.36
157 and the filing of an order by the Commissioner of Insurance
158 Regulation.
159 b. Until the earlier of when the dwelling or residential
160 property has been repaired or 1 year after the insurer issues
161 the final claim payment, if such property was damaged by any
162 covered peril and sub-subparagraph a. does not apply.
163 2. However, an insurer or agent may cancel or nonrenew
164 such a policy before prior to the repair of the dwelling or
165 residential property:
166 a. Upon 10 days' notice for nonpayment of premium; or
167 b. Upon 45 days' notice:
168 (I) For a material misstatement or fraud related to the
169 claim;
170 (II) If the insurer determines that the insured has
171 unreasonably caused a delay in the repair of the dwelling; or
172 (III) If the insurer has paid policy limits; or
173 (IV) If the named insured does not have an insurable
174 interest in the insured property.
175 3. If the insurer elects to nonrenew a policy covering a
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176 property that has been damaged, the insurer must shall provide
177 at least 90 days' notice to the insured that the insurer intends
178 to nonrenew the policy 90 days after the dwelling or residential
179 property has been repaired. Nothing in this paragraph prevents
180 shall prevent the insurer from canceling or nonrenewing the
181 policy 90 days after the repairs are complete for the same
182 reasons the insurer would otherwise have canceled or nonrenewed
183 the policy but for the limitations of subparagraph 1. The
184 Financial Services Commission may adopt rules, and the
185 Commissioner of Insurance Regulation may issue orders, necessary
186 to implement this paragraph.
187 4. This paragraph shall also applies apply to personal
188 residential and commercial residential policies covering
189 property that was damaged as the result of Hurricane Ian or
190 Hurricane Nicole.
191 5. For purposes of this paragraph:
192 a. A structure is deemed to be repaired when substantially
193 completed and restored to the extent that it is insurable by
194 another authorized insurer writing policies in this state.
195 b. The term "insurer" means an authorized insurer.
196 Section 6. Paragraph (b) of subsection (4) of section
197 627.7011, Florida Statutes, is amended to read:
198 627.7011 Homeowners' policies; offer of replacement cost
199 coverage and law and ordinance coverage.—
200 (4)
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201 (b) An insurer that issues a homeowner's insurance policy
202 that does not provide flood insurance coverage must include on
203 the policy declarations page at initial issuance and every
204 renewal, in bold type no smaller than 18 points, the following
205 statement:
206 "FLOOD INSURANCE: YOU SHOULD CONSIDER THE PURCHASE OF FLOOD
207 INSURANCE. YOUR HOMEOWNER'S INSURANCE POLICY DOES NOT INCLUDE
208 COVERAGE FOR DAMAGE RESULTING FROM FLOOD EVEN IF HURRICANE WINDS
209 AND RAIN CAUSED THE FLOOD TO OCCUR. WITHOUT SEPARATE FLOOD
210 INSURANCE COVERAGE, YOUR UNCOVERED LOSSES CAUSED BY FLOOD ARE
211 NOT COVERED. PLEASE DISCUSS THE NEED TO PURCHASE SEPARATE FLOOD
212 INSURANCE COVERAGE WITH YOUR INSURANCE AGENT."
213 Section 7. Paragraphs (a), (b), and (c) of subsection (3),
214 paragraph (b) of subsection (4), and subsection (6) of section
215 627.70131, Florida Statutes, are amended to read:
216 627.70131 Insurer's duty to acknowledge communications
217 regarding claims; investigation.—
218 (3)(a) Unless otherwise provided by the policy of
219 insurance or by law, within 7 days after an insurer receives the
220 written proof-of-loss statements, the insurer shall begin such
221 investigation as is reasonably necessary unless the failure to
222 begin such investigation is caused by factors beyond the control
223 of the insurer.
224 (b) If such investigation involves a physical inspection
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225 of the property, the licensed adjuster assigned by the insurer
226 must provide the policyholder with a printed or electronic
227 document containing his or her name and state adjuster license
228 number. An insurer must conduct any such physical inspection
229 within 30 days after its receipt of the written proof-of-loss
230 statements.
231 (c) Any subsequent communication with the policyholder
232 regarding the claim must also include the name and license
233 number of the adjuster communicating about the claim. However,
234 when the adjuster communicates with a policyholder by text
235 message, the adjuster's name and license number are required
236 only in the initial text message and are not required in
237 subsequent text messages. Communication of the adjuster's name
238 and license number may be included with other information
239 provided to the policyholder.
240 (4) An insurer shall maintain:
241 (b) Claim records, including dates, of:
242 1. Any claim-related communication made between the
243 insurer and the policyholder or the policyholder's
244 representative;
245 2. The insurer's receipt of the policyholder's written
246 proof-of-loss statement;
247 3. Any claim-related request for information made by the
248 insurer to the policyholder or the policyholder's
249 representative;
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250 4. Any claim-related inspections of the property made by
251 the insurer, including physical inspections and inspections made
252 by electronic means;
253 5. Any detailed estimate of the amount of the loss
254 generated by the insurer's adjuster;
255 6. The beginning and end of any tolling period provided
256 for in subsection (8); and
257 7. The insurer's payment or denial of the claim.
258 (6)(a) When providing a preliminary or partial estimate of
259 damage regarding a claim, an insurer shall include with the
260 estimate the following statement printed in at least 12-point
261 bold, uppercase type: "THIS ESTIMATE REPRESENTS OUR CURRENT
262 EVALUATION OF THE COVERED DAMAGES TO YOUR INSURED PROPERTY AND
263 MAY BE REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU
264 HAVE QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING
265 YOUR CLAIM, WE ENCOURAGE YOU TO CONTACT US."
266 (b) When providing a payment on a claim which is not the
267 full and final payment for the claim, an insurer shall include
268 with the payment the following statement printed in at least 12-
269 point bold, uppercase type: "WE HAVE ISSUED A PARTIAL SETTLEMENT
270 FOR ARE CONTINUING TO EVALUATE YOUR CLAIM INVOLVING YOUR INSURED
271 PROPERTY AND MAY ISSUE ADDITIONAL PAYMENTS. IF YOU HAVE
272 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
273 CLAIM, WE ENCOURAGE YOU TO CONTACT US."
274 Section 8. This act shall take effect upon becoming a law.
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