CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 1 of 63
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
A bill to be entitled 1
An act relating to property insurance; creating s. 2
215.5551, F.S.; creating the Reinsurance to Assist 3
Policyholders program to be administered by the State 4
Board of Administration; defining terms; requiring 5
certain property insurers to obtain coverage under the 6
program; requiring the board to provide reimbursement 7
to property insurers under the program; requiring the 8
board and property insurers to enter into contr acts to 9
provide certain insurance reimbursement; providing 10
requirements for the contracts; providing 11
construction; providing calculations for specified 12
amounts of losses to determine reimbursement under the 13
program; authorizing the board to inspect, examin e, 14
and verify insurer records; providing insurer 15
eligibility qualifications for the program; providing 16
for disqualification; requiring certain insurers to 17
notify the board under a specified circumstance; r 18
participation in the program; providing that the 19
program does not affect the claims -paying capacity of 20
the Florida Hurricane Catastrophe Fund; requiring the 21
program to pay reimbursements directly to the 22
applicable state guaranty fund in the event of 23
insolvency; specifying requirements for the Florida 24
Hurricane Catastrophe Fund if an insurer or the 25
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 2 of 63
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
Citizens Property Insurance Corporation accepts 26
assignments of unsound insurers; providing that 27
certain violations are violations of the insurance 28
code; authorizing the board to enforce certain 29
requirements; authorizing the board to adopt 30
nonemergency rules and emergency rules; providing 31
legislative findings; specifying conditions and 32
limitations for any emergency rules adopted; requiring 33
the board to submit a written notice within a certain 34
timeframe to the Execu tive Office of the Governor 35
relating to the program funds, under certain 36
circumstances; providing a requirement for the notice 37
and subsequent requests; requiring the Executive 38
Office of the Governor to instruct the Chief Financial 39
Officer to draw a warrant for a transfer to the board 40
for the program under certain circumstances and to 41
provide notification to specified persons within a 42
certain timeframe; prohibiting cumulative transfers 43
from exceeding a specified amount; providing reporting 44
requirements; providing for expiration and transfer of 45
unencumbered funds; requiring certain property 46
insurers to reduce rates to reflect certain cost 47
savings through rate filings by a specified date; 48
prohibiting such insurers from making other rate 49
changes; requiring the O ffice of Insurance Regulation 50
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 3 of 63
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
to expedite the review of certain filings; amending s. 51
215.5586, F.S.; revising homeowner eligibility 52
criteria for mitigation grants; specifying matching 53
requirements for grants; revising reporting 54
requirements; providing an a ppropriation; requiring 55
the Department of Financial Services to submit budget 56
amendments; specifying requirements for budget 57
amendments; providing for reversion and appropriation 58
of any unexpended balance; authorizing the department 59
to adopt emergency rule s; providing legislative 60
findings; providing for expiration; amending s. 61
489.147, F.S.; revising the definition of the term 62
"prohibited advertisement"; creating s. 624.1551, 63
F.S.; requiring claimants to establish that property 64
insurers have breached the in surance contract to 65
prevail in certain claims for damages; amending s. 66
624.307, F.S.; requiring the office to publish certain 67
information on its website; amending s. 624.313, F.S.; 68
revising the information the office must include in a 69
specified report; ame nding s. 624.315, F.S.; revising 70
the information the office must include in certain 71
reports; amending s. 624.424, F.S.; requiring the 72
office to aggregate on a statewide basis and make 73
publicly available certain data submitted by insurers 74
and insurer groups; specifying requirements for 75
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 4 of 63
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
publishing such data; providing that such information 76
is not a trade secret and is not subject to a certain 77
public records exemption; amending s. 626.9373, F.S.; 78
revising conditions for the award of reasonable 79
attorney fees to apply to all suits brought under 80
residential or commercial property insurance policies, 81
rather than those not brought by assignees; limiting 82
the transfer, assignment, or acquisition of rights to 83
attorney fees in certain property insurance suits; 84
amending s. 627.428, F.S.; revising conditions for the 85
award of reasonable attorney fees to apply to all 86
suits brought under residential or commercial property 87
insurance policies, rather than those not brought by 88
assignees; limiting the transfer, assignment, or 89
acquisition of rights to attorney fees in certain 90
property insurance suits; amending s. 627.701, F.S.; 91
revising a prohibition against the issuance of 92
insurance policies containing certain deductible 93
provisions; revising the conditions a personal lines 94
residential property insurance policy covering certain 95
risks must meet under certain circumstances; requiring 96
personal lines residential property insurance policies 97
containing separate roof deductibles to include 98
specified information; authorizing property insure rs 99
to include separate roof deductibles if certain 100
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 5 of 63
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
requirements are met; providing requirements for 101
policyholders in rejecting such deductibles under 102
certain circumstances; requiring the office to 103
expedite the review of filing of certain forms; 104
authorizing the commission to adopt certain model 105
forms or guidelines; requiring the office to review 106
certain filings within a specified timeframe; 107
providing that roof deductible portions of the filing 108
are not subject to a specified extension for review; 109
amending s. 627.7011, F.S.; authorizing property 110
insurers to limit certain roof claim payments under 111
certain circumstances; defining the term "authorized 112
inspector"; prohibiting insurers from refusing to 113
issue or renew homeowners' policies insuring certain 114
structures; requiring insurers to allow homeowners to 115
have roof inspections performed before requiring roof 116
replacement; providing for the calculation of the age 117
of certain roofs; providing applicability; amending s. 118
627.70131, F.S.; requiring property insurers to 119
conduct physical inspections for certain claims within 120
a specified timeframe; requiring property insurers to 121
notify and provide certain detailed estimates to 122
policyholders; providing construction; requiring 123
property insurers to provide reasonable explanation s 124
related to claims under certain circumstances; 125
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 6 of 63
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
amending s. 627.70152, F.S.; making a technical 126
change; authorizing property insurers to be awarded 127
attorney fees and costs in certain suit dismissals; 128
providing that a strong presumption is created that a 129
lodestar fee is sufficient and reasonable; providing 130
that such presumption may be rebutted only under 131
certain circumstances; amending s. 627.7142, F.S.; 132
conforming a cross-reference; amending s. 627.7152, 133
F.S.; revising the definition of the term "assignmen t 134
agreement"; deleting the definitions of the terms 135
"disputed amount" and "judgment obtained"; revising a 136
requirement for assignment agreements; revising the 137
requirement for assignees to indemnify and hold 138
harmless assignors; specifying the addresses to wh ich 139
a notice of intent must be served; deleting certain 140
limitations on the recovery and award of attorney fees 141
in suits related to assignment agreements; creating s. 142
627.7154, F.S.; creating a property insurer stability 143
unit within the office for a specifi ed purpose; 144
specifying the duties of the unit; requiring the unit 145
to provide a specified report biannually; specifying 146
requirements for such report; specifying events that 147
trigger referrals to the unit; requiring the unit's 148
supervisors to review such refer rals for a certain 149
determination; requiring unit expenses to be paid from 150
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 7 of 63
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
a specified fund; requiring costs of examinations to 151
be paid by examined persons in a specified 152
circumstance; amending s. 631.031, F.S.; requiring 153
certain notifications by the office to the department 154
of grounds for delinquency proceedings to include an 155
affidavit; specifying contents of such affidavit; 156
amending s. 631.398, F.S.; specifying duties of the 157
department for insurer insolvency proceedings; 158
providing for construction of the a ct in pari materia 159
with laws enacted during the 2022 Regular Session of 160
the Legislature; providing effective dates. 161
162
Be It Enacted by the Legislature of the State of Florida: 163
164
Section 1. Section 215.5551, Florida Statutes, is created 165
to read: 166
215.5551 Reinsurance to Assist Policyholders program. — 167
(1) CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS 168
PROGRAM.—There is created the Reinsurance to Assist 169
Policyholders program to be administered by the State Board of 170
Administration. 171
(2) DEFINITIONS.—As used in this section, the term: 172
(a) "Board" means the State Board of Administration. 173
(b) "Contract year" means the period beginning on June 1 174
of a specified calendar year and ending on May 31 of the 175
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 8 of 63
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
following calendar year. 176
(c) "Covered event" means any one storm declared to be a 177
hurricane by the National Hurricane Center, which storm causes 178
insured losses in this state. 179
(d) "Covered policy" has the same meaning as in s. 180
215.555(2)(c). 181
(e) "FHCF" means the Florida Hurricane Catastrophe Fund 182
created under s. 215.555. 183
(f) "Losses" has the same meaning as in s. 215.555(2)(d). 184
(g) "RAP" means the Reinsurance to Assist Policyholders 185
program created by this section. 186
(h) "RAP insurer" means an insurer that is a participating 187
insurer in the FHCF on June 1, 2022, which must obtain coverage 188
under the RAP program and qualifies under subsection (5). 189
However, any joint underwriting association, risk apportionment 190
plan, or other entity created under s. 627.351 is not considered 191
a RAP insurer and is p rohibited from obtaining coverage under 192
the RAP program. 193
(i) "RAP limit" means, for the 2022 -2023 contract year, 194
the RAP insurer's maximum payout, which is its share of the $2 195
billion RAP layer aggregate limit. For the 2023 -2024 contract 196
year, for RAP insurers that are subject to participation 197
deferral under subsection (6) and participate during the 2023 -198
2024 contract year, the RAP limit means the RAP insurer's 199
maximum payout, which is its share of the total amount of the 200
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 9 of 63
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
RAP program layer aggregate limit deferred from 2022 -2023. 201
(j) "RAP qualification ratio" means: 202
1. For the 2022-2023 contract year, the ratio of FHCF 203
mandatory premium adjusted to 90 percent for RAP insurers 204
divided by the FHCF mandatory premium adjusted to 90 percent for 205
all insurers. The preliminary RAP qualification ratio shall be 206
based on the 2021-2022 contract year's company premiums as of 207
December 31, 2021, adjusted to 90 percent based on the 2022 -2023 208
contract year coverage selections. The RAP qualification ratio 209
shall be based on the reported 2022 -2023 contract year company 210
premiums as of December 31, 2022, adjusted to 90 percent. 211
2. For the 2023-2024 contract year, the ratio of FHCF 212
mandatory premium adjusted to 90 percent for the qualified RAP 213
insurers that have deferred RAP coverage to 2023 -2024 divided by 214
the FHCF mandatory premi um adjusted to 90 percent for all 215
insurers. The preliminary RAP qualification ratio shall be based 216
on the 2022-2023 contract year's company premiums as of December 217
31, 2022, adjusted to 90 percent based on the 2023 -2024 contract 218
year coverage selections. T he RAP qualification ratio shall be 219
based on the reported 2023 -2024 contract year company premiums 220
as of December 31, 2023, adjusted to 90 percent. 221
(k) "RAP reimbursement contract" means the reimbursement 222
contract reflecting the obligations of the RAP pr ogram to 223
insurers. 224
(l) "RAP retention" means the amount of losses below which 225
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 10 of 63
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
a RAP insurer is not entitled to reimbursement under the RAP 226
program. 227
(m) "Unsound insurer" means a RAP insurer determined by 228
the Office of Insurance Regulation to be in unso und condition as 229
defined in s. 624.80(2) or a RAP insurer placed in receivership 230
under chapter 631. 231
(3) COVERAGE.— 232
(a) As a condition of doing business in this state, each 233
RAP insurer shall obtain coverage under the RAP program. 234
(b) The board shall p rovide a reimbursement layer of $2 235
billion below the FHCF retention prior to the third event 236
dropdown of the FHCF retention set forth in s. 215.555(2)(e). 237
Subject to the mandatory notice provisions in subsection (5), 238
the board shall enter into a RAP reimbu rsement contract with 239
each eligible RAP insurer writing covered policies in this state 240
to provide to the insurer the reimbursement described in this 241
section. 242
(4) RAP REIMBURSEMENT CONTRACTS. — 243
(a)1. The board shall issue a RAP reimbursement contract 244
to each eligible RAP insurer which is effective: 245
a. June 1, 2022, for RAP insurers that participate in the 246
RAP program during the 2022 -2023 contract year; or 247
b. June 1, 2023, for RAP insurers that are subject to 248
participation deferral under subsection (6) and participate in 249
the RAP program during the 2023 -2024 contract year. 250
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 11 of 63
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
2. The RAP reimbursement contract shall be executed no 251
later than: 252
a. July 15, 2022, for RAP insurers that participate in the 253
RAP program during the 2022 -2023 contract year; or 254
b. March 1, 2023, for RAP insurers that are subject to 255
participation deferral under subsection (6) and participate in 256
the RAP program during the 2023 -2024 contract year. 257
3. If a RAP insurer fails to execute the RAP reimbursement 258
contract by the dates requ ired in this paragraph, the RAP 259
insurance contract is deemed to have been executed by the RAP 260
insurer. 261
(b) For the two covered events with the largest losses, 262
the RAP reimbursement contract must contain a promise by the 263
board to reimburse the RAP insurer for 90 percent of its losses 264
from each covered event in excess of the insurer's RAP 265
retention, plus 10 percent of the reimbursed losses to cover 266
loss adjustment expenses. The sum of the losses and 10 percent 267
loss adjustment expense allocation from the RAP layer may not 268
exceed the RAP limit. Recoveries on losses in the FHCF mandatory 269
layer shall inure to the benefit of the RAP contract layer. 270
(c) The RAP reimbursement contract must provide that 271
reimbursement amounts are not reduced by reinsurance paid or 272
payable to the insurer from other sources excluding the FHCF. 273
(d) The board shall calculate and report to each RAP 274
insurer the RAP payout multiples as the ratio of the RAP 275
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 12 of 63
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
industry limit of $2 billion for the 2022 -2023 contract year, or 276
the deferred limit for the 2022-2023 contract year, to the 277
mandatory FHCF retention multiplied by the mandatory FHCF 278
retention multiples divided by the RAP qualification ratio. The 279
RAP payout multiple for an insurer is multiplied by the RAP 280
insurer's FHCF premium to calcul ate its RAP maximum payout. RAP 281
payout multiples are calculated for 45 percent, 75 percent, and 282
90 percent FHCF mandatory coverage selections. 283
(e) A RAP insurer's RAP retention is calculated as 284
follows: 285
1. The board shall calculate and report to each R AP 286
insurer the RAP retention multiples for each FHCF coverage 287
selection as the FHCF retention multiple minus the RAP payout 288
multiple. The RAP retention multiple for an insurer is 289
multiplied by the RAP insurer's FHCF premium to calculate its 290
RAP retention. RAP retention multiples are calculated for 45 291
percent, 75 percent, and 90 percent FHCF mandatory coverage 292
selections. 293
2. The RAP industry retention for the 2022 -2023 contract 294
year is the FHCF's industry retention minus $2 billion, prior to 295
allocation to qualifying RAP insurers. The RAP industry 296
retention for the 2023 -2024 contract year is the FHCF's industry 297
retention for the 2023 -2024 contract year minus the total 298
deferred RAP limit, prior to allocation to qualifying RAP 299
insurers. 300
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 13 of 63
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
3. A RAP insurer dete rmines its actual RAP retention by 301
multiplying its actual mandatory reimbursement FHCF premium by 302
the RAP retention multiple. 303
(f) To ensure that insurers have properly reported the 304
losses for which RAP reimbursements have been made, the board 305
may inspect, examine, and verify the records of each RAP 306
insurer's covered policies at such times as the board deems 307
appropriate for the specific purpose of validating the accuracy 308
of losses required to be reported under the terms and conditions 309
of the RAP reimbursem ent contract. 310
(5) INSURER QUALIFICATION. — 311
(a) An insurer is not eligible to participate in the RAP 312
program if the board receives a notice from the Commissioner of 313
Insurance Regulation which certifies that the insurer is in an 314
unsound financial conditio n no later than: 315
1. June 15, 2022, for RAP insurers that participate during 316
the 2022-2023 contract year; or 317
2. February 1, 2023, for RAP insurers subject to 318
participation deferral under subsection (6) and participate 319
during the 2023-2024 contract year. 320
(b) The office must make this determination based on the 321
following factors: 322
1. The insurer's compliance with the requirements to 323
qualify for and hold a certificate of authority under s. 324
624.404; 325
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 14 of 63
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
2. The insurer's compliance with the applicable surplu s 326
requirements of s. 624.408; 327
3. The insurer's compliance with the applicable risk -based 328
capital requirements under s. 624.4085; 329
4. The insurer's compliance with the applicable premium to 330
surplus requirements under s. 624.4095; and 331
5. An analysis of quarterly and annual statements, 332
including an actuarial opinion summary, and other information 333
submitted to the office pursuant to s. 624.424. 334
(c) If the board receives timely notice pursuant to 335
paragraph (a) regarding an insurer, such insurer is disqual ified 336
from participating in the RAP program. 337
(6) PARTICIPATION DEFERRAL. — 338
(a) A RAP insurer that has any private reinsurance that 339
duplicates RAP coverage such insurer would receive for the 2022 -340
2023 contract year shall notify the board in writing of su ch 341
duplicative coverage no later than June 30, 2022. Participation 342
in the RAP program for such RAP insurers shall be deferred until 343
the 2023-2024 contract year. 344
(b) A new participating insurer that begins writing 345
covered policies in this state after June 1, 2022, is deemed to 346
defer its RAP coverage to the 2023 -2024 contract year. 347
(7) RAP PREMIUMS.—Premiums may not be charged for 348
participation in the RAP program. 349
(8) CLAIMS-PAYING CAPACITY.—The RAP program shall not 350
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 15 of 63
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
affect the claims-paying capacity of the FHCF as provided in s. 351
215.555(4)(c)1. 352
(9) INSOLVENCY OF RAP INSURER. — 353
(a) The RAP reimbursement contract shall provide that in 354
the event of an insolvency of a RAP insurer, the RAP program 355
shall pay reimbursements directly to the applicable state 356
guaranty fund for the benefit of policyholders in this state of 357
the RAP insurer. 358
(b) If an authorized insurer or the Citizens Property 359
Insurance Corporation accepts an assignment of an unsound RAP 360
insurer's RAP contract, the FHCF shall apply the unsound RAP 361
insurer's RAP contract to such policies and treat the authorized 362
insurer or the Citizens Property Insurance Corporation as if it 363
were the unsound RAP insurer for the remaining term of the RAP 364
contract, with all rights and duties of the unsound RAP insu rer 365
beginning on the date it provides coverage for such policies. 366
(10) VIOLATIONS.—Any violation of this section or of rules 367
adopted under this section constitutes a violation of the 368
insurance code. 369
(11) LEGAL PROCEEDINGS. —The board is authorized to ta ke 370
any action necessary to enforce the rules, provisions, and 371
requirements of the RAP reimbursement contract, required by and 372
adopted pursuant to this section. 373
(12) RULEMAKING.—The board may adopt rules to implement 374
this section. In addition, the board m ay adopt emergency rules, 375
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 16 of 63
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
pursuant to s. 120.54, at any time, as are necessary to 376
implement this section for the 2022 -2023 fiscal year. The 377
Legislature finds that such emergency rulemaking power is 378
necessary in order to address a critical need in the state 's 379
problematic property insurance market. The Legislature further 380
finds that the uniquely short timeframe needed to effectively 381
implement this section for the 2022 -2023 fiscal year requires 382
that the board adopt rules as quickly as practicable. Therefore, 383
in adopting such emergency rules, the board need not make the 384
findings required by s. 120.54(4)(a). Emergency rules adopted 385
under this section are exempt from s. 120.54(4)(c) and shall 386
remain in effect until replaced by rules adopted under the 387
nonemergency rulemaking procedures of chapter 120, which must 388
occur no later than July 1, 2023. 389
(13) APPROPRIATION. — 390
(a) Within 60 days after a covered event, the board shall 391
submit written notice to the Executive Office of the Governor if 392
the board determines that funds from the RAP program coverage 393
established by this section will be necessary to reimburse RAP 394
insurers for losses associated with the covered event. The 395
initial notice, and any subsequent requests, must specify the 396
amount necessary to provide RAP rei mbursements. Upon receiving 397
such notice, the Executive Office of the Governor shall instruct 398
the Chief Financial Officer to draw a warrant from the General 399
Revenue Fund for a transfer to the board for the RAP program in 400
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 17 of 63
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
the amount requested. The Executive Office of the Governor shall 401
provide written notification to the chair and vice chair of the 402
Legislative Budget Commission at least 3 days before the 403
effective date of the warrant. Cumulative transfers authorized 404
under this paragraph may not exceed $2 bill ion. 405
(b) If general revenue funds are transferred to the board 406
for the RAP program under paragraph (a), the board shall submit 407
written notice to the Executive Office of the Governor that 408
funds will be necessary for the administration of the RAP 409
program and post-event examinations for covered events that 410
require RAP coverage. The initial notice, and any subsequent 411
requests, must specify the amount necessary for administration 412
of the RAP program and post -event examinations. Upon receiving 413
such notice, the Executive Office of the Governor shall instruct 414
the Chief Financial Officer to draw a warrant from the General 415
Revenue Fund for a transfer to the board for the RAP program in 416
the amount requested. The Executive Office of the Governor shall 417
provide written notification to the chair and vice chair of the 418
Legislative Budget Commission at least 3 days before the 419
effective date of the warrant. Cumulative transfers authorized 420
under this paragraph may not exceed $5 million. 421
(c) No later than January 31, 2023, and quarterly 422
thereafter, the board shall submit a report to the Executive 423
Office of the Governor, the President of the Senate, and the 424
Speaker of the House of Representatives detailing any 425
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 18 of 63
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
reimbursements of the RAP program, all loss development 426
projections, the amount of RAP reimbursement coverage deferred 427
until the 2023-2024 contract year, and detailed information 428
about administrative and post -event examination expenditures. 429
(14) EXPIRATION DATE. —If no general revenue funds have 430
been transferred to the boa rd for the RAP program under 431
subsection (13) by June 30, 2025, this section expires on July 432
1, 2025. If general revenue funds have been transferred to the 433
board for the RAP program under subsection (13) by June 30, 434
2025, this section expires on July 1, 202 9, and all unencumbered 435
RAP program funds shall be transferred by the board back to the 436
General Revenue Fund unallocated. 437
Section 2. (1) No later than June 30, 2022, each insurer 438
that participates during the 2022 -2023 contract year in the 439
Reinsurance to Assist Policyholders program under s. 215.5551, 440
Florida Statutes, shall reduce its rates to reflect the cost 441
savings realized by participating in the program through a rate 442
filing with the Office of Insurance Regulation or by amending a 443
pending rate filing. The insurer shall make no other changes to 444
its rates in the filing. 445
(2) No later than May 1, 2023, each insurer that defers 446
participation in the Reinsurance to Assist Policyholders program 447
until the 2023-2024 year under s. 215.5551, Florida Statutes , 448
shall reduce its rates to reflect the cost savings realized by 449
participating in the program through a rate filing with the 450
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 19 of 63
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
Office of Insurance Regulation or by amending a pending rate 451
filing. The insurer shall make no other changes to its rates in 452
the filing. 453
(3) The Office of Insurance Regulation shall expedite the 454
review of the filings made under this section. 455
Section 3. Effective July 1, 2022, paragraphs (a) and (b) 456
of subsection (2) and subsection (10) of section 215.5586, 457
Florida Statutes, are amended to read: 458
215.5586 My Safe Florida Home Program. —There is 459
established within the Department of Financial Services the My 460
Safe Florida Home Program. The department shall provide fiscal 461
accountability, contract management, and strategic leadership 462
for the program, consistent with this section. This section does 463
not create an entitlement for property owners or obligate the 464
state in any way to fund the inspection or retrofitting of 465
residential property in this state. Implementation of this 466
program is subject to annual legislative appropriations. It is 467
the intent of the Legislature that the My Safe Florida Home 468
Program provide trained and certified inspectors to perform 469
inspections for owners of site -built, single-family, residential 470
properties and grant s to eligible applicants as funding allows. 471
The program shall develop and implement a comprehensive and 472
coordinated approach for hurricane damage mitigation that may 473
include the following: 474
(2) MITIGATION GRANTS. —Financial grants shall be used to 475
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 20 of 63
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
encourage single-family, site-built, owner-occupied, residential 476
property owners to retrofit their properties to make them less 477
vulnerable to hurricane damage. 478
(a) For a homeowner to be eligible for a grant, the 479
following criteria must be met: 480
1. The homeowner must have been granted a homestead 481
exemption on the home under chapter 196. 482
2. The home must be a dwelling with an insured value of 483
$500,000 $300,000 or less. Homeowners who are low -income 484
persons, as defined in s. 420.0004(11), are exempt from this 485
requirement. 486
3. The home must have undergone an acceptable hurricane 487
mitigation inspection after July 1, 2008 May 1, 2007. 488
4. The home must be located in the "wind -borne debris 489
region" as that term is defined in the Florida Building Code s. 490
1609.2, International Building Code (2006), or as subsequently 491
amended. 492
5. The building permit application for initial 493
construction of the home must have been made before January 1, 494
2008 March 1, 2002. 495
6. The homeowner must agree to make his or her home 496
available for inspection once a mitigation project is completed. 497
498
An application for a grant must contain a signed or 499
electronically verified statement made under penalty of perjury 500
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 21 of 63
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
that the applicant has submitted only a single application and 501
must have attached documents demonstrating the applicant meets 502
the requirements of this paragraph. 503
(b) All grants must be matched on the basis of $1 provided 504
by the applicant for $2 provided by the state a dollar-for-505
dollar basis up to a maximum state contribution total of $10,000 506
toward for the actual cost of the mitigation project with the 507
state's contribution not to exceed $5,000 . 508
(10) REPORTS.—The department shall make an annual report 509
on the activities of the program that shall account for the use 510
of state funds and indicate the number of inspections requested, 511
the number of inspections performed, the number of grant 512
applications received, and the number and value of grants 513
approved, and the average annual amount of insurance premium 514
discounts and total annual amount of insurance premium discounts 515
homeowners received from insurers as a result of mitigation 516
funded through the progr am. The report shall be delivered to the 517
President of the Senate and the Speaker of the House of 518
Representatives by February 1 of each year. 519
Section 4. (1) For the 2022-2023 fiscal year, the sum of 520
$150 million in nonrecurring funds is appropriated fr om the 521
General Revenue Fund to the Department of Financial Services for 522
the My Safe Florida Home Program. The funds shall be placed in 523
reserve. The department shall submit budget amendments 524
requesting release of the funds held in reserve pursuant to 525
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 22 of 63
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
chapter 216, Florida Statutes. The budget amendments shall 526
include a detailed spending plan. 527
(2) The funds shall be allocated as follows: 528
(a) Twenty-five million dollars for hurricane mitigation 529
inspections. 530
(b) One hundred fifteen million dollars for miti gation 531
grants. 532
(c) Four million dollars for education and consumer 533
awareness. 534
(d) One million dollars for public outreach for 535
contractors and real estate brokers and sales associates. 536
(e) Five million dollars for administrative costs. 537
(3) Any unexpended balance of funds from this 538
appropriation remaining on June 30, 2023, shall revert and is 539
appropriated to the Department of Financial Services for the 540
2023-2024 fiscal year for the same purpose. 541
(4) The department may adopt emergency rules pursuant to 542
s. 120.54, Florida Statutes, at any time, as are necessary to 543
implement this section and s. 215.5586, Florida Statutes, as 544
amended by this act. The Legislature finds that such emergency 545
rulemaking authority is necessary to address a critical need in 546
the state's problematic property insurance market. The 547
Legislature further finds that the uniquely short timeframe 548
needed to effectively implement this section for the 2022 -2023 549
fiscal year requires that the department adopt rules as quickly 550
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 23 of 63
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
as practicable. Therefore, in adopting such emergency rules, the 551
department need not make the findings required by s. 552
120.54(4)(a), Florida Statutes. Emergency rules adopted under 553
this section are exempt from s. 120.54(4)(c), Florida Statutes, 554
and shall remain in effect un til replaced by rules adopted under 555
the nonemergency rulemaking procedures of chapter 120, Florida 556
Statutes, which must occur no later than July 1, 2023. 557
(5) This section shall expire October 1, 2024. 558
Section 5. Paragraph (a) of subsection (1) of sec tion 559
489.147, Florida Statutes, is amended to read: 560
489.147 Prohibited property insurance practices. — 561
(1) As used in this section, the term: 562
(a) "Prohibited advertisement" means any written or 563
electronic communication by a contractor which that encourages, 564
instructs, or induces a consumer to contact a contractor or 565
public adjuster for the purpose of making an insurance claim for 566
roof damage, if such communication does not state in a font size 567
of at least 12 points and at least half as large as the lar gest 568
font size used in the communication that: 569
1. The consumer is responsible for payment of any 570
insurance deductible; 571
2. It is insurance fraud punishable as a felony of the 572
third degree for a contractor to knowingly or willfully, and 573
with intent to injure, defraud, or deceive, pay, waive, or 574
rebate all or part of an insurance deductible applicable to 575
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 24 of 63
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
payment to the contractor for repairs to a property covered by a 576
property insurance policy; and 577
3. It is insurance fraud punishable as a felony of the 578
third degree to intentionally file an insurance claim containing 579
any false, incomplete, or misleading information . 580
581
The term includes, but is not limited to, door hangers, business 582
cards, magnets, flyers, pamphlets, and e -mails. 583
Section 6. Section 624.1551, Florida Statutes, is created 584
to read: 585
624.1551 Civil remedy actions against property insurers. —586
Notwithstanding any provision of s. 624.155, a claimant must 587
establish that the property insurer breached the insurance 588
contract to prevail in a clai m for extracontractual damages 589
under s. 624.155(1)(b). 590
Section 7. Subsection (4) of section 624.307, Florida 591
Statutes, is amended to read: 592
624.307 General powers; duties. — 593
(4) The department and office may each collect, propose, 594
publish, and disseminate information relating to the subject 595
matter of any duties imposed upon it by law. 596
(a) Aggregate information may include information asserted 597
as trade secret information unless the trade secret information 598
can be individually extrapolated, in which c ase the trade secret 599
information remains protected as provided under s. 624.4213. 600
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 25 of 63
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
(b) The office shall publish all orders, data required by 601
s. 627.915(2), reports required by s. 627.7154(3), and all 602
reports that are not confidential and exempt on its web site in a 603
timely fashion. 604
Section 8. Subsection (1) of section 624.313, Florida 605
Statutes, is amended to read: 606
624.313 Publications. — 607
(1) As early as reasonably possible, the office shall 608
annually have printed and made available a statistical report 609
which must include all of the following information on either a 610
calendar year or fiscal year basis: 611
(a) A summary of all information reported to the office 612
under s. 627.915(1). 613
(b) The total amount of premiums written and earned by 614
line of insurance. 615
(c) The total amount of losses paid and losses incurred by 616
line of insurance. 617
(d) The ratio of premiums written to losses paid by line 618
of insurance. 619
(e) The ratio of premiums earned to losses incurred by 620
line of insurance. 621
(f) The market share of t he 10 largest insurers or insurer 622
groups by line of insurance and of each insurer or insurer group 623
that has a market share of at least 1 percent of a line of 624
insurance in this state. 625
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 26 of 63
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
(g) The profitability of each major line of insurance. 626
(h) An analysis of the impact of the insurance industry on 627
the economy of the state. 628
(i) A complaint ratio by line of insurance for the 629
insurers referred to in paragraph (f), based upon information 630
provided to the office by the department. The office shall 631
determine the most appropriate ratio or ratios for quantifying 632
complaints. 633
(j) An analysis of such lines or kinds of insurance for 634
which the office determines that an availability problem exists 635
in this state, and an analysis of the availability of 636
reinsurance to domestic insurers selling homeowners' and 637
condominium unit owners' insurance in this state . 638
(k) A summary of the findings of market examinations 639
performed by the office under s. 624.3161 during the preceding 640
year. 641
(l) Such other information as the offic e deems relevant. 642
Section 9. Paragraph (c) of subsection (1) and paragraph 643
(n) of subsection (2) of section 624.315, Florida Statutes, are 644
amended to read: 645
624.315 Department; annual report. — 646
(1) As early as reasonably possible, the office, with su ch 647
assistance from the department as requested, shall annually 648
prepare a report to the Speaker and Minority Leader of the House 649
of Representatives, the President and Minority Leader of the 650
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 27 of 63
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
Senate, the chairs of the legislative committees with 651
jurisdiction over matters of insurance, and the Governor 652
showing, with respect to the preceding calendar year: 653
(c) Names of insurers against which delinquency or similar 654
proceedings were instituted . For property insurers for which 655
delinquency or similar proceedings w ere instituted, the annual 656
report must also include the date that each insurer was deemed 657
impaired of capital or surplus, as the terms "impairment of 658
capital" and "impairment of surplus" are defined in s. 631.011, 659
or insolvent, as the term "insolvency" is defined in s. 660
631.011;,and a concise statement of the circumstances that led 661
to each insurer's delinquency; a summary of the actions taken by 662
the insurer and the office to avoid delinquency; and the results 663
or status of each such proceeding. 664
(2) The office shall maintain the following information 665
and make such information available upon request: 666
(n) Trends; emerging trends as exemplified by the 667
percentage change in frequency and severity of both paid and 668
incurred claims, and pure premium (Florida and countrywide). 669
Reports relating to the health of the homeowners' and 670
condominium unit owners' insu rance market must include the 671
percentage of policies written by voluntary carriers, the 672
percentage of policies written by the Citizens Property 673
Insurance Corporation, and any trends related to the relative 674
shares of the voluntary and residual markets. 675
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 28 of 63
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
Section 10. Subsection (10) of section 624.424, Florida 676
Statutes, is amended to read: 677
624.424 Annual statement and other information. — 678
(10)(a) Each insurer or insurer group doing business in 679
this state shall file on a quarterly basis in conjunction wit h 680
financial reports required by paragraph (1)(a) a supplemental 681
report on an individual and group basis on a form prescribed by 682
the commission with information on personal lines and commercial 683
lines residential property insurance policies in this state. Th e 684
supplemental report shall include separate information for 685
personal lines property policies and for commercial lines 686
property policies and totals for each item specified, including 687
premiums written for each of the property lines of business as 688
described in ss. 215.555(2)(c) and 627.351(6)(a). The report 689
shall include the following information for each county on a 690
monthly basis: 691
1.(a) Total number of policies in force at the end of each 692
month. 693
2.(b) Total number of policies canceled. 694
3.(c) Total number of policies nonrenewed. 695
4.(d) Number of policies canceled due to hurricane risk. 696
5.(e) Number of policies nonrenewed due to hurricane risk. 697
6.(f) Number of new policies written. 698
7.(g) Total dollar value of structure exposure under 699
policies that include wind coverage. 700
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 29 of 63
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
8.(h) Number of policies that exclude wind coverage. 701
(b) The office shall aggregate on a statewide basis the 702
data submitted by each insurer or insurer group under par agraph 703
(a) and make such data publicly available by publishing such 704
data on the office's website within 1 month after each quarterly 705
and annual filing. Such information, when aggregated on a 706
statewide basis as to an individual insurer or insurer group, is 707
not a trade secret as defined in s. 688.002(4) or s. 812.081 and 708
is not subject to the public records exemption for trade secrets 709
provided in s. 119.0715. 710
Section 11. Section 626.9373, Florida Statutes, is amended 711
to read: 712
626.9373 Attorney fees. — 713
(1) Upon the rendition of a judgment or decree by any 714
court of this state against a surplus lines insurer in favor of 715
any named or omnibus insured or the named beneficiary under a 716
policy or contract executed by the insurer on or after the 717
effective date of this act, the trial court or, if the insured 718
or beneficiary prevails on appeal, the appellate court, shall 719
adjudge or decree against the insurer in favor of the insured or 720
beneficiary a reasonable sum as fees or compensation for the 721
insured's or beneficia ry's attorney prosecuting the lawsuit for 722
which recovery is awarded. In a suit arising under a residential 723
or commercial property insurance policy not brought by an 724
assignee, the amount of reasonable attorney fees shall be 725
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 30 of 63
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
awarded only as provided in s. 57 .105 or s. 627.70152, as 726
applicable. 727
(2) If awarded, attorney fees or compensation shall be 728
included in the judgment or decree rendered in the case. 729
(3) In a suit arising under a residential or commercial 730
property insurance policy, the right to attorne y fees under this 731
section may not be transferred to, assigned to, or acquired in 732
any other manner by anyone other than a named or omnibus insured 733
or a named beneficiary. 734
Section 12. Section 627.428, Florida Statutes, is amended 735
to read: 736
627.428 Attorney fees.— 737
(1) Upon the rendition of a judgment or decree by any of 738
the courts of this state against an insurer and in favor of any 739
named or omnibus insured or the named beneficiary under a policy 740
or contract executed by the insurer, the trial court or, in the 741
event of an appeal in which the insured or beneficiary prevails, 742
the appellate court shall adjudge or decree against the insurer 743
and in favor of the insured or beneficiary a reasonable sum as 744
fees or compensation for the insured's or beneficiary's a ttorney 745
prosecuting the suit in which the recovery is had. In a suit 746
arising under a residential or commercial property insurance 747
policy not brought by an assignee , the amount of reasonable 748
attorney fees shall be awarded only as provided in s. 57.105 or 749
s. 627.70152, as applicable. 750
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 31 of 63
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
(2) As to suits based on claims arising under life 751
insurance policies or annuity contracts, no such attorney fees 752
shall be allowed if such suit was commenced prior to expiration 753
of 60 days after proof of the claim was duly file d with the 754
insurer. 755
(3) When so awarded, compensation or fees of the attorney 756
shall be included in the judgment or decree rendered in the 757
case. 758
(4) In a suit arising under a residential or commercial 759
property insurance policy, the right to attorney fee s under this 760
section may not be transferred to, assigned to, or acquired in 761
any other manner by anyone other than a named or omnibus insured 762
or a named beneficiary. 763
Section 13. Paragraph (d) of subsection (4) of section 764
627.701, Florida Statutes, is am ended, paragraph (c) of 765
subsection (2), paragraph (e) of subsection (4), and subsection 766
(10) are added to that section, and subsection (7) of that 767
section is republished, to read: 768
627.701 Liability of insureds; coinsurance; deductibles. — 769
(2) Unless the office determines that the deductible 770
provision is clear and unambiguous, a property insurer may not 771
issue an insurance policy or contract covering real property in 772
this state which contains a deductible provision that: 773
(c) Applies solely to a roof loss as provided in 774
subsection (10). 775
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 32 of 63
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
(4) 776
(d)1. A personal lines residential property insurance 777
policy covering a risk valued at less than $500,000 may not have 778
a hurricane deductible in excess of 10 percent of the policy 779
dwelling limits, unless the following conditions are met: 780
a. The policyholder must personally write or type and 781
provide to the insurer the following statement in his or her own 782
handwriting and sign his or her name, which must also be signed 783
by every other named insured on the polic y, and dated: "I do not 784
want the insurance on my home to pay for the first (specify 785
dollar value) of damage from hurricanes. I will pay those costs. 786
My insurance will not." 787
b. If the structure insured by the policy is subject to a 788
mortgage or lien, the p olicyholder must provide the insurer with 789
a written statement from the mortgageholder or lienholder 790
indicating that the mortgageholder or lienholder approves the 791
policyholder electing to have the specified deductible. 792
2. A deductible subject to the requi rements of this 793
paragraph applies for the term of the policy and for each 794
renewal thereafter. Changes to the deductible percentage may be 795
implemented only as of the date of renewal. 796
3. An insurer shall keep the original copy of the signed 797
statement required by this paragraph, electronically or 798
otherwise, and provide a copy to the policyholder providing the 799
signed statement. A signed statement meeting the requirements of 800
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 33 of 63
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
this paragraph creates a presumption that there was an informed, 801
knowing election of c overage. 802
4. The commission shall adopt rules providing appropriate 803
alternative methods for providing the statements required by 804
this section for policyholders who have a handicapping or 805
disabling condition that prevents them from providing a 806
handwritten statement. 807
(e)1. A personal lines residential property insurance 808
policy that contains a separate roof deductible must include, on 809
the page immediately behind the declarations page, with no other 810
policy language on the page, in boldfaced type no smaller t han 811
18 point, the following statement: "YOU ARE ELECTING TO PURCHASE 812
COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR 813
ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT -OF-814
POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE 815
AGENT." 816
2. For any personal lines residential property insurance 817
policy containing a separate roof deductible, the insurer shall 818
compute and prominently display on the declarations page of the 819
policy or on the premium renewal notice the actual dollar value 820
of the roof deductible of the policy at issuance and renewal. 821
(7) Prior to issuing a personal lines residential property 822
insurance policy on or after April 1, 1997, or prior to the 823
first renewal of a residential property insurance policy on or 824
after April 1, 1997, the insurer must offer a deductible equal 825
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 34 of 63
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
to $500 applicable to losses from perils other than hurricane. 826
The insurer must provide the policyholder with notice of the 827
availability of the deductible specified in this subsection in a 828
form approved by the office at least once every 3 years. The 829
failure to provide such notice constitutes a violation of this 830
code but does not affect the coverage provided under the policy. 831
An insurer may require a higher deductible only as part of a 832
deductible program law fully in effect on June 1, 1996, or as 833
part of a similar deductible program. 834
(10)(a) Notwithstanding any other provision of law, an 835
insurer issuing a personal lines residential property insurance 836
policy may include in such policy a separate roof deductib le 837
that meets all of the following requirements: 838
1. The insurer has complied with the offer requirements 839
under subsection (7) regarding a deductible applicable to losses 840
from perils other than a hurricane. 841
2. The roof deductible may not exceed the less er of 2 842
percent of the coverage A limit of the policy or 50 percent of 843
the cost to replace the roof. 844
3. The premium that a policyholder is charged for the 845
policy includes an actuarially sound credit or premium discount 846
for the roof deductible. 847
4. The roof deductible applies only to a claim adjusted on 848
a replacement cost basis. 849
5. The roof deductible does not apply to any of the 850
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 35 of 63
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
following events: 851
a. A total loss to a primary structure in accordance with 852
the valued policy law under s. 627.702 which is caused by a 853
covered peril. 854
b. A roof loss resulting from a hurricane as defined in s. 855
627.4025(2)(c). 856
c. A roof loss resulting from a tree fall or other hazard 857
that damages the roof and punctures the roof deck. 858
d. A roof loss requiring the repair of less than 50 859
percent of the roof. 860
861
If a roof deductible is applied, no other deductible under the 862
policy may be applied to the loss. 863
(b) At the time of initial issuance of a personal lines 864
residential property insurance policy, an insurer may offer the 865
policyholder a separate roof deductible with the ability to opt -866
out and reject the separate roof deductible. To reject a 867
separate roof deductible, the policyholder shall sign a form 868
approved by the office. 869
(c) At the time of renewal, an insurer may add a separate 870
roof deductible to a personal lines residential property 871
insurance policy if the insurer provides a notice of change in 872
policy terms pursuant to s. 627.43141. The insurer must also 873
offer the policyholder the ability to opt -out and reject the 874
separate roof deductible. To reject a separate roof deductible, 875
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 36 of 63
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
the policyholder shall sign a form approved by the office. 876
(d) The office shall expedite the review of any filing of 877
insurance forms that only contain a separate roof deductible 878
pursuant to this subsection. The commission may adopt model 879
forms or guidelines that provide options for roof deductible 880
language which may be used for filing by insurers. If an insurer 881
makes a filing pursuant to a model form or guideline issued by 882
the office, the office must review the filing within the initial 883
30-day review period authorized by s. 627.410(2), and the roof 884
deductible portion of the filing is not subject to the 15 -day 885
extension for review under that subsection. 886
Section 14. Present subsection (5) of sec tion 627.7011, 887
Florida Statutes is redesignated as subsection (6), a new 888
subsection (5) is added to that subsection, and paragraph (a) of 889
subsection (3) of that section is amended, to read: 890
627.7011 Homeowners' policies; offer of replacement cost 891
coverage and law and ordinance coverage. — 892
(3) In the event of a loss for which a dwelling or 893
personal property is insured on the basis of replacement costs: 894
(a) For a dwelling, the insurer must initially pay at 895
least the actual cash value of the insured loss, less any 896
applicable deductible. The insurer shall pay any remaining 897
amounts necessary to perform such repairs as work is performed 898
and expenses are incurred. However, if a roof deductible under 899
s. 627.701(10) is applied to the insured loss, the insurer ma y 900
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 37 of 63
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
limit the claim payment as to the roof to the actual cash value 901
of the loss to the roof until the insurer receives reasonable 902
proof of payment by the policyholder of the roof deductible. 903
Reasonable proof of payment includes a canceled check, money 904
order receipt, credit card statement, or copy of an executed 905
installment plan contract or other financing arrangement that 906
requires full payment of the deductible over time. If a total 907
loss of a dwelling occurs, the insurer must shall pay the 908
replacement cost coverage without reservation or holdback of any 909
depreciation in value, pursuant to s. 627.702. 910
(5)(a) As used in this subsection, the term "authorized 911
inspector" means an inspector who is approved by the insurer and 912
who is: 913
1. A home inspector licensed under s. 468.8314; 914
2. A building code inspector certified under s. 468.607; 915
3. A general, building, or residential contractor licensed 916
under s. 489.111; 917
4. A professional engineer licensed under s. 471.015; 918
5. A professional architect licensed unde r s. 481.213; or 919
6. Any other individual or entity recognized by the 920
insurer as possessing the necessary qualifications to properly 921
complete a general inspection of a residential structure insured 922
with a homeowner's insurance policy. 923
(b) An insurer may not refuse to issue or refuse to renew 924
a homeowner's policy insuring a residential structure with a 925
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 38 of 63
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
roof that is less than 15 years old solely because of the age of 926
the roof. 927
(c) For a roof that is at least 15 years old, an insurer 928
must allow a homeowne r to have a roof inspection performed by an 929
authorized inspector at the homeowner's expense before requiring 930
the replacement of the roof of a residential structure as a 931
condition of issuing or renewing a homeowner's insurance policy. 932
The insurer may not re fuse to issue or refuse to renew a 933
homeowner's insurance policy solely because of roof age if an 934
inspection of the roof of the residential structure performed by 935
an authorized inspector indicates that the roof has 5 years or 936
more of useful life remaining. 937
(d) For purposes of this subsection, a roof's age shall be 938
calculated using the last date for which 100 percent of the 939
roof's surface area was built or replaced in accordance with the 940
building code in effect at that time or the initial date of a 941
partial roof replacement when subsequent partial roof builds or 942
replacements were completed that resulted in 100 percent of the 943
roof's surface area being built or replaced. 944
(e) This subsection applies to homeowners' insurance 945
policies issued or renewed on or aft er July 1, 2022. 946
Section 15. Effective January 1, 2023, subsection (3) and 947
paragraph (a) of subsection (7) of section 627.70131, Florida 948
Statutes, are amended to read: 949
627.70131 Insurer's duty to acknowledge communications 950
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 39 of 63
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
regarding claims; investiga tion.— 951
(3)(a) Unless otherwise provided by the policy of 952
insurance or by law, within 14 days after an insurer receives 953
proof of loss statements, the insurer shall begin such 954
investigation as is reasonably necessary unless the failure to 955
begin such investigation is caused by factors beyond the control 956
of the insurer which reasonably prevent the commencement of such 957
investigation. 958
(b) If such investigation involves a physical inspection 959
of the property, the licensed adjuster assigned by the insurer 960
must provide the policyholder with a printed or electronic 961
document containing his or her name and state adjuster license 962
number. For claims other than those subject to a hurricane 963
deductible, an insurer must conduct any such physical inspection 964
within 45 days after its receipt of the proof of loss 965
statements. 966
(c) Any subsequent communication with the policyholder 967
regarding the claim must also include the name and license 968
number of the adjuster communicating about the claim. 969
Communication of the adjuster's name and license number may be 970
included with other information provided to the policyholder. 971
(d) Within 7 days after the insurer's assignment of an 972
adjuster to the claim, the insurer must notify the policyholder 973
that he or she may request a copy of any detai led estimate of 974
the amount of the loss generated by an insurer's adjuster. After 975
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 40 of 63
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
receiving such a request from the policyholder, the insurer must 976
send any such detailed estimate to the policyholder within the 977
later of 7 days after the insurer received the request or 7 days 978
after the detailed estimate of the amount of the loss is 979
completed. This paragraph does not require that an insurer 980
create a detailed estimate of the amount of the loss if such 981
estimate is not reasonably necessary as part of the claim 982
investigation. 983
(7)(a) Within 90 days after an insurer receives notice of 984
an initial, reopened, or supplemental property insurance claim 985
from a policyholder, the insurer shall pay or deny such claim or 986
a portion of the claim unless the failure to pay is caus ed by 987
factors beyond the control of the insurer which reasonably 988
prevent such payment. The insurer shall provide a reasonable 989
explanation in writing to the policyholder of the basis in the 990
insurance policy, in relation to the facts or applicable law, 991
for the payment, denial, or partial denial of a claim. If the 992
insurer's claim payment is less than specified in any insurer's 993
detailed estimate of the amount of the loss, the insurer must 994
provide a reasonable explanation in writing of the difference to 995
the policyholder. Any payment of an initial or supplemental 996
claim or portion of such claim made 90 days after the insurer 997
receives notice of the claim, or made more than 15 days after 998
there are no longer factors beyond the control of the insurer 999
which reasonably prevented such payment, whichever is later, 1000
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 41 of 63
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
bears interest at the rate set forth in s. 55.03. Interest 1001
begins to accrue from the date the insurer receives notice of 1002
the claim. The provisions of this subsection may not be waived, 1003
voided, or nullified by the terms of the insurance policy. If 1004
there is a right to prejudgment interest, the insured must shall 1005
select whether to receive prejudgment interest or interest under 1006
this subsection. Interest is payable when the claim or portion 1007
of the claim is paid. Failur e to comply with this subsection 1008
constitutes a violation of this code. However, failure to comply 1009
with this subsection does not form the sole basis for a private 1010
cause of action. 1011
Section 16. Paragraph (d) of subsection (2) and subsection 1012
(8) of section 627.70152, Florida Statutes, are amended to read: 1013
627.70152 Suits arising under a property insurance 1014
policy.— 1015
(2) DEFINITIONS.—As used in this section, the term: 1016
(d) "Presuit settlement demand" means the demand made by 1017
the claimant in the written no tice of intent to initiate 1018
litigation as required by paragraph (3)(a) (3)(e). The demand 1019
must include the amount of reasonable and necessary attorney 1020
fees and costs incurred by the claimant, to be calculated by 1021
multiplying the number of hours actually work ed on the claim by 1022
the claimant's attorney as of the date of the notice by a 1023
reasonable hourly rate. 1024
(8) ATTORNEY FEES.— 1025
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 42 of 63
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
(a) In a suit arising under a residential or commercial 1026
property insurance policy not brought by an assignee, the amount 1027
of reasonable attorney fees and costs under s. 626.9373(1) or s. 1028
627.428(1) shall be calculated and awarded as follows: 1029
1. If the difference between the amount obtained by the 1030
claimant and the presuit settlement offer, excluding reasonable 1031
attorney fees and costs, is less than 20 percent of the disputed 1032
amount, each party pays its own attorney fees and costs and a 1033
claimant may not be awarded attorney fees under s. 626.9373(1) 1034
or s. 627.428(1). 1035
2. If the difference between the amount obtained by the 1036
claimant and the presuit settlement offer, excluding reasonable 1037
attorney fees and costs, is at least 20 percent but less than 50 1038
percent of the disputed amount, the insurer pays the claimant's 1039
attorney fees and costs under s. 626.9373(1) or s. 627.428(1) 1040
equal to the percentage of the disputed amount obtained times 1041
the total attorney fees and costs. 1042
3. If the difference between the amount obtained by the 1043
claimant and the presuit settlement offer, excluding reasonable 1044
attorney fees and costs, is at least 50 percent of t he disputed 1045
amount, the insurer pays the claimant's full attorney fees and 1046
costs under s. 626.9373(1) or s. 627.428(1). 1047
(b) In a suit arising under a residential or commercial 1048
property insurance policy not brought by an assignee, if a court 1049
dismisses a claimant's suit pursuant to subsection (5), the 1050
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 43 of 63
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
court may not award to the claimant any incurred attorney fees 1051
for services rendered before the dismissal of the suit. When a 1052
claimant's suit is dismissed pursuant to subsection (5), the 1053
court may award to the insurer reasonable attorney fees and 1054
costs associated with securing the dismissal. 1055
(c) In awarding attorney fees under this subsection, a 1056
strong presumption is created that a lodestar fee is sufficient 1057
and reasonable. Such presumption may be rebutted on ly in a rare 1058
and exceptional circumstance with evidence that competent 1059
counsel could not be retained in a reasonable manner. 1060
Section 17. Section 627.7142, Florida Statutes, is amended 1061
to read: 1062
627.7142 Homeowner Claims Bill of Rights. —An insurer 1063
issuing a personal lines residential property insurance policy 1064
in this state must provide a Homeowner Claims Bill of Rights to 1065
a policyholder within 14 days after receiving an initial 1066
communication with respect to a claim. The purpose of the bill 1067
of rights is to summarize, in simple, nontechnical terms, 1068
existing Florida law regarding the rights of a personal lines 1069
residential property insurance policyholder who files a claim of 1070
loss. The Homeowner Claims Bill of Rights is specific to the 1071
claims process and does not represent all of a policyholder's 1072
rights under Florida law regarding the insurance policy. The 1073
Homeowner Claims Bill of Rights does not create a civil cause of 1074
action by any individual policyho lder or class of policyholders 1075
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 44 of 63
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
against an insurer or insurers. The failure of an insurer to 1076
properly deliver the Homeowner Claims Bill of Rights is subject 1077
to administrative enforcement by the office but is not 1078
admissible as evidence in a civil action agai nst an insurer. The 1079
Homeowner Claims Bill of Rights does not enlarge, modify, or 1080
contravene statutory requirements, including, but not limited 1081
to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, 1082
and does not prohibit an insurer from exercising it s right to 1083
repair damaged property in compliance with the terms of an 1084
applicable policy or ss. 627.7011(6)(e) 627.7011(5)(e) and 1085
627.702(7). The Homeowner Claims Bill of Rights must state: 1086
1087
HOMEOWNER CLAIMS 1088
BILL OF RIGHTS 1089
This Bill of Rights is specific to the claims process 1090
and does not represent all of your rights under 1091
Florida law regarding your policy. There are also 1092
exceptions to the stated timelines when conditions are 1093
beyond your insurance company's control. This document 1094
does not create a civil caus e of action by an 1095
individual policyholder, or a class of policyholders, 1096
against an insurer or insurers and does not prohibit 1097
an insurer from exercising its right to repair damaged 1098
property in compliance with the terms of an applicable 1099
policy. 1100
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 45 of 63
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
1101
YOU HAVE THE RIGHT TO: 1102
1. Receive from your insurance company an 1103
acknowledgment of your reported claim within 14 days 1104
after the time you communicated the claim. 1105
2. Upon written request, receive from your insurance 1106
company within 30 days after you have submitted a 1107
complete proof-of-loss statement to your insurance 1108
company, confirmation that your claim is covered in 1109
full, partially covered, or denied, or receive a 1110
written statement that your claim is being 1111
investigated. 1112
3. Within 90 days, subject to any dual intere st noted 1113
in the policy, receive full settlement payment for 1114
your claim or payment of the undisputed portion of 1115
your claim, or your insurance company's denial of your 1116
claim. 1117
4. Receive payment of interest, as provided in s. 1118
627.70131, Florida Statutes, fr om your insurance 1119
company, which begins accruing from the date your 1120
claim is filed if your insurance company does not pay 1121
full settlement of your initial, reopened, or 1122
supplemental claim or the undisputed portion of your 1123
claim or does not deny your claim w ithin 90 days after 1124
your claim is filed. The interest, if applicable, must 1125
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 46 of 63
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
be paid when your claim or the undisputed portion of 1126
your claim is paid. 1127
5. Free mediation of your disputed claim by the 1128
Florida Department of Financial Services, Division of 1129
Consumer Services, under most circumstances and 1130
subject to certain restrictions. 1131
6. Neutral evaluation of your disputed claim, if your 1132
claim is for damage caused by a sinkhole and is 1133
covered by your policy. 1134
7. Contact the Florida Department of Financial 1135
Services, Division of Consumer Services' toll -free 1136
helpline for assistance with any insurance claim or 1137
questions pertaining to the handling of your claim. 1138
You can reach the Helpline by phone at ...(toll -free 1139
phone number)..., or you can seek assistance onlin e at 1140
the Florida Department of Financial Services, Division 1141
of Consumer Services' website at ...(website 1142
address).... 1143
1144
YOU ARE ADVISED TO: 1145
1. File all claims directly with your insurance 1146
company. 1147
2. Contact your insurance company before entering 1148
into any contract for repairs to confirm any managed 1149
repair policy provisions or optional preferred 1150
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 47 of 63
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
vendors. 1151
3. Make and document emergency repairs that are 1152
necessary to prevent further damage. Keep the damaged 1153
property, if feasible, keep all receipts, and tak e 1154
photographs or video of damage before and after any 1155
repairs to provide to your insurer. 1156
4. Carefully read any contract that requires you to 1157
pay out-of-pocket expenses or a fee that is based on a 1158
percentage of the insurance proceeds that you will 1159
receive for repairing or replacing your property. 1160
5. Confirm that the contractor you choose is licensed 1161
to do business in Florida. You can verify a 1162
contractor's license and check to see if there are any 1163
complaints against him or her by calling the Florida 1164
Department of Business and Professional Regulation. 1165
You should also ask the contractor for references from 1166
previous work. 1167
6. Require all contractors to provide proof of 1168
insurance before beginning repairs. 1169
7. Take precautions if the damage requires you to l eave 1170
your home, including securing your property and turning off your 1171
gas, water, and electricity, and contacting your insurance 1172
company and provide a phone number where you can be reached. 1173
Section 18. Subsection (1), paragraph (a) of subsection 1174
(2), subsection (8), paragraph (a) of subsection (9), and 1175
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 48 of 63
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
subsection (10) of section 627.7152, Florida Statutes, are 1176
amended to read: 1177
627.7152 Assignment agreements. — 1178
(1) As used in this section, the term: 1179
(a) "Assignee" means a person who is assigned post-loss 1180
benefits through an assignment agreement. 1181
(b) "Assignment agreement" means any instrument by which 1182
post-loss benefits under a residential property insurance policy 1183
or commercial property insurance policy, as that term is defined 1184
in s. 627.0625(1), are assigned or transferred, or acquired in 1185
any manner, in whole or in part, to or from a person providing 1186
services, including, but not limited to, inspecting, protecting, 1187
repairing, restoring, or replacing the to protect, repair, 1188
restore, or replace property or mitigating to mitigate against 1189
further damage to the property. The term does not include fees 1190
collected by a public adjuster as defined in s. 626.854(1). 1191
(c) "Assignor" means a person who assigns post -loss 1192
benefits under a residential property insurance policy or 1193
commercial property insurance policy to another person through 1194
an assignment agreement. 1195
(d) "Disputed amount" means the difference between the 1196
assignee's presuit settlement demand and the insurer's presuit 1197
settlement offer. 1198
(e) "Judgment obtained" means damages recovered, if any, 1199
but does not include any amount awarded for attorney fees, 1200
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 49 of 63
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
costs, or interest. 1201
(f) "Presuit settlement demand" means the demand made by 1202
the assignee in the written notice of intent to initiate 1203
litigation as required by paragraph (9)(a). 1204
(e)(g) "Presuit settlement offer" means the offer made by 1205
the insurer in its written response to the notice of intent to 1206
initiate litigation as required by paragraph (9)(b). 1207
(2)(a) An assignment agreement must: 1208
1. Be in writing and executed by and between the assignor 1209
and the assignee. 1210
2. Contain a provision that allows the assignor to rescind 1211
the assignment agreement without a penalty or fee by submitting 1212
a written notice of rescission signed by the assignor to the 1213
assignee within 14 days after the execution of the agreement, at 1214
least 30 days after the date work on the property is scheduled 1215
to commence if the assignee has not substantially performed, or 1216
at least 30 days after the execution of the agreement if the 1217
agreement does not contain a commencement date and the assignee 1218
has not begun substantial work on the property. 1219
3. Contain a provision requiring the assignee to provide a 1220
copy of the executed assignment agreement to the insurer within 1221
3 business days after the date on which the assignment agreement 1222
is executed or the date on which work begins, whichever is 1223
earlier. Delivery of the copy of the assignment agreement to the 1224
insurer may be made: 1225
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 50 of 63
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
a. By personal service, overnight delivery, or electronic 1226
transmission, with evidence of delivery in the form of a receipt 1227
or other paper or electronic acknowledgment by the insurer; or 1228
b. To the location designated for receipt of such 1229
agreements as specified in the policy. 1230
4. Contain a written, itemized, per -unit cost estimate of 1231
the services to be performed by the assignee. 1232
5. Relate only to work to be performed by the assignee for 1233
services to protect, repair, restore, or replace a dwelling or 1234
structure or to mitigate against further damage to such 1235
property. 1236
6. Contain the following notice in 18 -point uppercase and 1237
boldfaced type: 1238
1239
YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE 1240
UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH 1241
MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE 1242
READ AND UNDERSTAND THIS D OCUMENT BEFORE SIGNING IT. 1243
YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT 1244
PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT 1245
IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON 1246
THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE 1247
HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS 1248
AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT 1249
DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE 1250
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 51 of 63
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
HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY. 1251
HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY 1252
CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS 1253
RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR 1254
OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR 1255
PROPERTY INSURANCE POLICY. 1256
1257
7. Contain a provision requiring the assignee to indemnify 1258
and hold harmless the assignor from all liabilities, damages, 1259
losses, and costs, including, but not limited to, attorney fees , 1260
should the policy subject to the assignment agreement prohibit, 1261
in whole or in part, the assignment of benefits . 1262
(8) The assignee shall indemnify and hold harmles s the 1263
assignor from all liabilities, damages, losses, and costs, 1264
including, but not limited to, attorney fees , should the policy 1265
subject to the assignment agreement prohibit, in whole or in 1266
part, the assignment of benefits . 1267
(9)(a) An assignee must provid e the named insured, 1268
insurer, and the assignor, if not the named insured, with a 1269
written notice of intent to initiate litigation before filing 1270
suit under the policy. Such notice must be served at least 10 1271
business days before filing suit, but not before th e insurer has 1272
made a determination of coverage under s. 627.70131. The notice 1273
must be served by certified mail, return receipt requested, to 1274
the name and mailing address designated by the insurer in the 1275
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 52 of 63
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
policy forms or by electronic delivery to the e-mail address 1276
designated by the insurer in the policy forms at least 10 1277
business days before filing suit, but may not be served before 1278
the insurer has made a determination of coverage under s. 1279
627.70131. The notice must specify the damages in dispute, the 1280
amount claimed, and a presuit settlement demand. Concurrent with 1281
the notice, and as a precondition to filing suit, the assignee 1282
must provide the named insured, insurer, and the assignor, if 1283
not the named insured, a detailed written invoice or estimate of 1284
services, including itemized information on equipment, 1285
materials, and supplies; the number of labor hours; and, in the 1286
case of work performed, proof that the work has been performed 1287
in accordance with accepted industry standards. 1288
(10) Notwithstanding any other provision of law, in a suit 1289
related to an assignment agreement for post -loss claims arising 1290
under a residential or commercial property insurance policy, 1291
attorney fees and costs may be recovered by an assignee only 1292
under s. 57.105 and this subsection. 1293
(a) If the difference between the judgment obtained by the 1294
assignee and the presuit settlement offer is: 1295
1. Less than 25 percent of the disputed amount, the 1296
insurer is entitled to an award of reasonable attorney fees. 1297
2. At least 25 percent but less than 50 percent of the 1298
disputed amount, no party is entitled to an award of attorney 1299
fees. 1300
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 53 of 63
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
3. At least 50 percent of the disputed amount, the 1301
assignee is entitled to an award of reasonable attorney fees. 1302
(b) If the insurer fails to inspect the property or 1303
provide written or oral authorization for repairs within 7 1304
calendar days after the first notice of loss, the insurer waives 1305
its right to an award of attorney fees under this subsection. If 1306
the failure to inspect the property or provide written or oral 1307
authorization for repairs is the result of an event for which 1308
the Governor had declared a state of emergency under s. 252.36, 1309
factors beyond the control of the insurer which reasonably 1310
prevented an inspection or written or oral authorization for 1311
repairs, or the named insured's failure or inability to allow an 1312
inspection of the property after a request by the insurer, the 1313
insurer does not waive its right to an award of attorney fees 1314
under this subsection. 1315
(c) If an assignee commences an action in any court of 1316
this state based upon or including the same claim against the 1317
same adverse party that such assignee has previously voluntarily 1318
dismissed in a court of this state, the court may order the 1319
assignee to pay the attorney fees and costs of the adverse party 1320
resulting from the action previously voluntarily dismissed. The 1321
court shall stay the proceedings in the subsequent action until 1322
the assignee has complied with the order. 1323
Section 19. Section 627.7154, Florida Statutes, is created 1324
to read: 1325
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 54 of 63
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
627.7154 Property insurer stability unit; duties and 1326
required reports.— 1327
(1) A property insurer stability unit is created within 1328
the office to aid in the detection and prevention of insurer 1329
insolvencies in the homeowners' and condominium unit owners' 1330
insurance market. Th e following responsibilities are limited 1331
only to matters related to homeowners' and condominium unit 1332
owners' insurance. 1333
(2) The insurer stability unit shall provide enhanced 1334
monitoring whenever the office identifies significant concerns 1335
about an insurer's solvency, rates, proposed contracts, 1336
underwriting rules, market practices, claims handling, consumer 1337
complaints, litigation practices and outcomes, and any other 1338
issue related to compliance with the insurance code. 1339
(3) The insurer stability unit shall, at a minimum: 1340
(a) Conduct a target market exam when there is reason to 1341
believe that an insurer's claims practices, rate requirements, 1342
investment activities, or financial statements suggest that the 1343
insurer may be in an unsound financial condition. 1344
(b) Closely monitor all risk -based capital reports, own -1345
risk solvency assessments, reinsurance agreements, and financial 1346
statements filed by insurers selling homeowners' and condominium 1347
unit owners' insurance policies in this state. 1348
(c) Have primary respons ibility to conduct annual 1349
catastrophe stress tests of all domestic insurers and insurers 1350
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 55 of 63
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
that are commercially domiciled in this state. 1351
1. The insurer stability unit shall cooperate with the 1352
Florida Commission on Hurricane Loss Projection Methodology to 1353
select the hurricane scenarios that are used in the annual 1354
catastrophe stress test. 1355
2. Catastrophe stress testing must determine: 1356
a. Whether an individual insurer can survive a one in 130 -1357
year probable maximum loss (PML), and a second event 50 -year 1358
return PML following a first event that exceeds a 100 -year 1359
return PML; and 1360
b. The impact of the selected hurricane scenarios on the 1361
Citizens Property Insurance Corporation, the Florida Hurricane 1362
Catastrophe Fund, the Florida Insurance Guaranty Associatio n, 1363
and taxpayers. 1364
(d) Update wind mitigation credits required by s. 627.711 1365
and associated rules. 1366
(e) Review the causes of insolvency and business practices 1367
of insurers that have been referred to the department's Division 1368
of Rehabilitation and Liquidat ion and make recommendations to 1369
prevent similar failures in the future. 1370
(f) On January 1 and July 1 of each year, provide a report 1371
on the status of the homeowners' and condominium unit owners' 1372
insurance market to the Governor, the President of the Senate , 1373
the Speaker of the House of Representatives, the Minority Leader 1374
of the Senate, the Minority Leader of the House of 1375
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 56 of 63
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
Representatives, and the chairs of the legislative committees 1376
with jurisdiction over matters of insurance showing: 1377
1. Litigation practic es and outcomes of insurance 1378
companies. 1379
2. Percentage of homeowners and condominium unit owners 1380
who obtain insurance in the voluntary market. 1381
3. Percentage of homeowners and condominium unit owners 1382
who obtain insurance from the Citizens Property Insura nce 1383
Corporation. 1384
4. Profitability of the homeowners' and condominium unit 1385
owners' lines of insurance in this state, including a comparison 1386
with similar lines of insurance in other hurricane -prone states 1387
and with the national average. 1388
5. Average premiums charged for homeowners' and 1389
condominium unit owners' insurance in each of the 67 counties in 1390
this state. 1391
6. Results of the latest annual catastrophe stress tests 1392
of all domestic insurers and insurers that are commercially 1393
domiciled in this state. 1394
7. The availability of reinsurance in the personal lines 1395
insurance market. 1396
8. The number of property and casualty insurance carriers 1397
referred to the insurer stability unit for enhanced monitoring, 1398
including the reason for the referral. 1399
9. The number of re ferrals to the insurer stability unit 1400
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 57 of 63
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
which were deemed appropriate for enhanced monitoring, including 1401
the reason for the monitoring. 1402
10. The name of any insurer against which delinquency 1403
proceedings were instituted, including the grounds for 1404
rehabilitation pursuant to s. 631.051 and the date that each 1405
insurer was deemed impaired of capital or surplus, as the terms 1406
"impairment of capital" and "impairment of surplus" are defined 1407
in s. 631.011, or insolvent, as the term "insolvency" is defined 1408
in s. 631.011; a concise statement of the circumstances that led 1409
to the insurer's delinquency; and a summary of the actions taken 1410
by the insurer and the office to avoid delinquency. 1411
11. Recommendations for improvements to the regulation of 1412
homeowners' and condominium unit owners' insurance market and an 1413
indication of whether such improvements require any change to 1414
existing laws or rules. 1415
12. Identification of any trends that may warrant 1416
attention in the future. 1417
(4) Any of the following events must trigger a referral to 1418
the insurer stability unit: 1419
(a) Consumer complaints related to homeowners' insurance 1420
or condominium unit owners' insurance under s. 624.307(10), if 1421
the complaints, in the aggregate, suggest a trend within the 1422
marketplace and are not an isolat ed incident. 1423
(b) There is reason to believe that an insurer who is 1424
authorized to sell homeowners' or condominium unit owners' 1425
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 58 of 63
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
insurance in this state has engaged in an unfair trade practice 1426
under part IX of chapter 626. 1427
(c) A market conduct examination determines that an 1428
insurer has exhibited a pattern or practice of willful 1429
violations of an unfair insurance trade practice related to 1430
claims-handling which caused harm to policyholders, as 1431
prohibited by s. 626.9541(1)(i). 1432
(d) An insurer authorized to se ll homeowners' or 1433
condominium unit owners' insurance in this state requests a rate 1434
increase that exceeds 15 percent, in accordance with s. 1435
627.0629(6). 1436
(e) An insurer authorized to sell homeowners' or 1437
condominium unit owners' insurance in this state viol ates the 1438
ratio of actual or projected annual written premiums required by 1439
s. 624.4095(4)(a). 1440
(f) An insurer authorized to sell homeowners' or 1441
condominium unit owners' insurance in this state files a notice 1442
pursuant to s. 624.4305 advising the office that it intends to 1443
nonrenew more than 10,000 residential property insurance 1444
policies in this state within a 12 -month period. 1445
(g) A quarterly or annual financial statement required by 1446
ss. 624.424 and 627.915 demonstrates that an insurer authorized 1447
to sell homeowners' or condominium unit owners' insurance in 1448
this state is in an unsound condition, as defined in s. 1449
624.80(2); has exceeded its powers in a manner as described in 1450
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 59 of 63
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
s. 624.80(3); is impaired, as defined in s. 631.011(12) or (13); 1451
or is insolvent, as de fined in s. 631.011. 1452
(h) An insurer authorized to sell homeowners' or 1453
condominium unit owners' insurance in this state files a 1454
quarterly or annual financial statement required by ss. 624.424 1455
and 627.915 which is misleading or contains material errors. 1456
(i) An insurer authorized to sell homeowners' or 1457
condominium unit owners' insurance in this state fails to timely 1458
file a quarterly or annual financial statement required by ss. 1459
624.424 and 627.915. 1460
(j) An insurer authorized to sell homeowners' or 1461
condominium unit owners' insurance in this state files a risk -1462
based capital report that triggers a company action level event, 1463
regulatory action level event, authorized control level event, 1464
or mandatory control level event, as those terms are defined in 1465
s. 624.4085. 1466
(k) An insurer selling homeowners' or condominium unit 1467
owners' insurance in this state that is subject to the own -risk 1468
solvency assessment requirement of s. 628.8015, and fails to 1469
timely file the own-risk solvency assessment. 1470
(l) A reinsurance agre ement creates a substantial risk of 1471
insolvency for an insurer authorized to sell homeowners' or 1472
condominium unit owners' insurance in this state, pursuant to s. 1473
624.610(13). 1474
(m) An insurer authorized to sell homeowners' or 1475
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 60 of 63
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
condominium unit owners' insura nce in this state is party to a 1476
reinsurance agreement that does not create a meaningful transfer 1477
of risk of loss to the reinsurer, pursuant to s. 624.610(14). 1478
(n) Citizens Property Insurance Corporation is required to 1479
absorb policies from an insurer that participated in the 1480
corporation's depopulation program authorized by s. 627.3511 1481
within 3 years after the insurer takes policies out of the 1482
corporation. 1483
1484
The insurer stability unit's supervisors shall review all 1485
referrals triggered by the statutory provis ions to determine 1486
whether enhanced scrutiny of the insurer is appropriate. 1487
(5) Expenses of the insurer stability unit shall be paid 1488
from moneys allocated to the Insurance Regulatory Trust Fund. 1489
However, if the unit recommends that a market conduct exam o r 1490
targeted market exam be conducted, the reasonable cost of the 1491
examination shall be paid by the person examined, in accordance 1492
with s. 624.3161. 1493
Section 20. Subsection (1) of section 631.031, Florida 1494
Statutes, is amended to read: 1495
631.031 Initiation and commencement of delinquency 1496
proceeding.— 1497
(1) Upon a determination by the office that one or more 1498
grounds for the initiation of delinquency proceedings exist 1499
pursuant to this chapter and that delinquency proceedings must 1500
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 61 of 63
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
be initiated, the Director of the Office of Insurance Regulation 1501
shall notify the department of such determination and shall 1502
provide the department with all necessary documentation and 1503
evidence. If the director must notify the department of a 1504
determination regarding a property insurer, the notification 1505
must include an affidavit that identifies the grounds for 1506
rehabilitation pursuant to s. 631.051; the date that each 1507
insurer was deemed impaired of capital or surplus, as the terms 1508
"impairment of capital" and "impairment of surplus" are de fined 1509
in s. 631.011, or insolvent, as the term "insolvency" is defined 1510
in s. 631.011; a concise statement of the circumstances that led 1511
to the insurer's delinquency; and a summary of the actions taken 1512
by the insurer and the office to avoid delinquency. The 1513
department shall then initiate such delinquency proceedings. 1514
Section 21. Subsection (3) of section 631.398, Florida 1515
Statutes, is amended to read: 1516
631.398 Prevention of insolvencies. —To aid in the 1517
detection and prevention of insurer insolvencies or i mpairments: 1518
(3)(a) The department shall, no later than the conclusion 1519
of any domestic insurer insolvency proceeding, prepare a summary 1520
report containing such information as is in its possession 1521
relating to the history and causes of such insolvency, inclu ding 1522
a statement of the business practices of such insurer which led 1523
to such insolvency. 1524
(b) For an insolvency involving a domestic property 1525
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 62 of 63
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
insurer, the department shall: 1526
1. Begin an analysis of the history and causes of the 1527
insolvency once the depart ment is appointed by the court as 1528
receiver. 1529
2. Submit an initial report analyzing the history and 1530
causes of the insolvency to the Governor, the President of the 1531
Senate, the Speaker of the House of Representatives, and the 1532
office. The initial report must be submitted no later than 4 1533
months after the department is appointed as receiver. The 1534
initial report shall be updated at least annually until the 1535
submission of the final report. The report may not be used as 1536
evidence in any proceeding brought by the depar tment or others 1537
to recover assets on behalf of the receivership estate as part 1538
of its duties under s. 631.141(8). The submission of a report 1539
under this subparagraph shall not be considered a waiver of any 1540
evidentiary privilege the department may assert und er state or 1541
federal law. 1542
3. Provide a special report to the Governor, the President 1543
of the Senate, the Speaker of the House of Representatives, and 1544
the office within 10 days upon identifying any condition or 1545
practice that may lead to insolvency in the pr operty insurance 1546
marketplace. 1547
4. Submit a final report analyzing the history and causes 1548
of the insolvency and the review of the office's regulatory 1549
oversight of the insurer to the Governor, the President of the 1550
CS/HB 1D 2022D
CODING: Words stricken are deletions; words underlined are additions.
hb0001d-01-c1
Page 63 of 63
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
Senate, the Speaker of the House of Representatives, and the 1551
office within 30 days of the conclusion of the insolvency 1552
proceeding. 1553
5. Review the office's regulatory oversight of the 1554
insurer. 1555
Section 22. If any law amended by this act was also 1556
amended by a law enacted during the 2022 Re gular Session of the 1557
Legislature, such laws shall be construed as if enacted during 1558
the same session of the Legislature, and full effect shall be 1559
given to each if possible. 1560
Section 23. Except as otherwise expressly provided in this 1561
act, this act shall take effect upon becoming a law. 1562