Florida 2022 4th Special Session

Florida House Bill H0011 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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2	2
3	3	HB 11D 2022D
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5	5
6	6
7	7	CODING: Words stricken are deletions; words underlined are additions.
8	8	hb0011d-00
9	9	Page 1 of 39
10	10	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
11	11
12	12
13	13
14	14	A bill to be entitled 1
15	15	An act relating to insurance; amending s. 215.555, 2
16	16	F.S.; revising the calculation of amount of losses 3
17	17	below which an insurer is not entitled to 4
18	18	reimbursement from the Florida Hurricane Catastrophe 5
19	19	Fund for certain contract years; requiring the formula 6
20	20	for determining actuarially indicated premiums to 7
21	21	include a cash build -up factor in contract years only 8
22	22	under certain circumstances; deleting obsolete 9
23	23	language; limiting the amount of the cash build -up 10
24	24	factor; revising the definition of the term "covered 11
25	25	policy" in relation to certain collateral protection 12
26	26	insurance policies; amending s. 440.381, F.S.; 13
27	27	revising the annual audit requirement for construction 14
28	28	classes to apply to policies having estimated annual 15
29	29	premiums over a specified threshold; creating s. 16
30	30	624.46227, F.S.; authorizing any association, trust, 17
31	31	or pool created for the purpose of forming a risk 18
32	32	management mechanism or providing self -insurance for a 19
33	33	public entity to use communications media technology 20
34	34	to establish a quorum and conduct business; amend ing 21
35	35	s. 626.221, F.S.; exempting certain applicants for 22
36	36	licensure as all-lines adjusters from a required 23
37	37	examination; amending s. 626.856, F.S.; revising the 24
38	38	definition of the term "company employee adjuster"; 25
39	39
40	40	HB 11D 2022D
41	41
42	42
43	43
44	44	CODING: Words stricken are deletions; words underlined are additions.
45	45	hb0011d-00
46	46	Page 2 of 39
47	47	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
48	48
49	49
50	50
51	51	reenacting and amending s. 627.062, F.S.; autho rizing 26
52	52	the use of a certain modeling indication for 27
53	53	residential property insurance rate filings; amending 28
54	54	s. 627.0629, F.S.; authorizing insurers to file 29
55	55	certain insurance rating plans based on certain 30
56	56	windstorm mitigation construction standards if certain 31
57	57	requirements are met; amending s. 627.0665, F.S.; 32
58	58	revising notification requirements for insurers that 33
59	59	have automatic bank withdrawal agreements with 34
60	60	insureds to include notices when withdrawal amounts 35
61	61	increase above a specified threshold; reenacting and 36
62	62	amending s. 627.351, F.S.; revising conditions for 37
63	63	determining the ineligibility of condominiums for 38
64	64	wind-only coverage; amending s. 627.421, F.S.; 39
65	65	deleting a requirement for electronic transmissions of 40
66	66	certain documents to include specified notices; 41
67	67	deleting a requirement that paper copies of policies 42
68	68	be provided upon request; amending ss. 627.701 and 43
69	69	627.712, F.S.; revising policyholder acknowledgment 44
70	70	statement requirements for property insurance policies 45
71	71	having certain hurricane deductibles or windstorm or 46
72	72	contents coverage exclusions, respectively; amending 47
73	73	s. 627.7152, F.S.; revising the definition of the term 48
74	74	"assignment agreement"; specifying the addresses to 49
75	75	which a notice of intent must be served; amending s. 50
76	76
77	77	HB 11D 2022D
78	78
79	79
80	80
81	81	CODING: Words stricken are deletions; words underlined are additions.
82	82	hb0011d-00
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84	84	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
85	85
86	86
87	87
88	88	627.7276, F.S.; revising notice requirem ents for motor 51
89	89	vehicle policies that do not provide coverage for 52
90	90	bodily injury and property damage liability; amending 53
91	91	ss. 634.171, 634.317, and 634.419, F.S.; authorizing 54
92	92	licensed personal lines or general lines agents to 55
93	93	solicit, negotiate, advertise, or sell motor vehicle 56
94	94	service agreements, home warranty contracts, and 57
95	95	service warranty contracts, respectively, without a 58
96	96	sales representative license; making technical 59
97	97	changes; reenacting ss. 624.424(10) and 627.351(6)(v), 60
98	98	F.S., relating to annual statemen ts and other 61
99	99	information and Citizens Property Insurance 62
100	100	Corporation, respectively, to incorporate the 63
101	101	amendment made to s. 215.555, F.S., in references 64
102	102	thereto; reenacting s. 626.8734(1)(b), F.S., relating 65
103	103	to nonresident all-lines adjuster license 66
104	104	qualifications, to incorporate the amendment made to 67
105	105	s. 626.221, F.S., in a reference thereto; reenacting 68
106	106	s. 626.865(1)(e), F.S., relating to public adjuster's 69
107	107	qualifications, to incorporate the amendment made to 70
108	108	s. 626.856, F.S., in a reference thereto; reenacti ng 71
109	109	s. 627.7153(1) and (2)(d), F.S., relating to policies 72
110	110	restricting assignment of post -loss benefits under a 73
111	111	property insurance policy, to incorporate the 74
112	112	amendment made to s. 627.7152, F.S., in references 75
113	113
114	114	HB 11D 2022D
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116	116
117	117
118	118	CODING: Words stricken are deletions; words underlined are additions.
119	119	hb0011d-00
120	120	Page 4 of 39
121	121	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
122	122
123	123
124	124
125	125	thereto; providing effective dates. 76
126	126	77
127	127	Be It Enacted by the Legislature of the State of Florida: 78
128	128	79
129	129	Section 1. Effective June 1, 2022, paragraph (e) of 80
130	130	subsection (2) of section 215.555, Florida Statutes, is amended 81
131	131	to read: 82
132	132	215.555 Florida Hurricane Catastrophe Fund. — 83
133	133	(2) DEFINITIONS.—As used in this section: 84
134	134	(e) "Retention" means the amount of losses below which an 85
135	135	insurer is not entitled to reimbursement from the fund. An 86
136	136	insurer's retention shall be calculated as follows: 87
137	137	1. The board shall calculate and report to each insurer 88
138	138	the retention multiples for that year. For the contract year 89
139	139	beginning June 1, 2022 2005, the retention multiple shall be 90
140	140	equal to $4.5 billion divided by the total estimated 91
141	141	reimbursement premium for the contract year; for subsequent 92
142	142	years, the retention multiple sha ll be equal to $4.5 billion, 93
143	143	adjusted based upon the reported exposure for the contract year 94
144	144	occurring 2 years before the particular contract year to reflect 95
145	145	the percentage growth in exposure to the fund for covered 96
146	146	policies since 2021 2004, divided by the total estimated 97
147	147	reimbursement premium for the contract year. Total reimbursement 98
148	148	premium for purposes of the calculation under this subparagraph 99
149	149	shall be estimated using the assumption that all insurers have 100
150	150
151	151	HB 11D 2022D
152	152
153	153
154	154
155	155	CODING: Words stricken are deletions; words underlined are additions.
156	156	hb0011d-00
157	157	Page 5 of 39
158	158	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
159	159
160	160
161	161
162	162	selected the 90-percent coverage level. 101
163	163	2. The retention multiple as determined under subparagraph 102
164	164	1. shall be adjusted to reflect the coverage level elected by 103
165	165	the insurer. For insurers electing the 90 -percent coverage 104
166	166	level, the adjusted retention multiple is 100 percent of the 105
167	167	amount determined un der subparagraph 1. For insurers electing 106
168	168	the 75-percent coverage level, the retention multiple is 120 107
169	169	percent of the amount determined under subparagraph 1. For 108
170	170	insurers electing the 45 -percent coverage level, the adjusted 109
171	171	retention multiple is 200 percen t of the amount determined under 110
172	172	subparagraph 1. 111
173	173	3. An insurer shall determine its provisional retention by 112
174	174	multiplying its provisional reimbursement premium by the 113
175	175	applicable adjusted retention multiple and shall determine its 114
176	176	actual retention by multip lying its actual reimbursement premium 115
177	177	by the applicable adjusted retention multiple. 116
178	178	4. For insurers who experience multiple covered events 117
179	179	causing loss during the contract year, beginning June 1, 2005, 118
180	180	each insurer's full retention shall be applied to each of the 119
181	181	covered events causing the two largest losses for that insurer. 120
182	182	For each other covered event resulting in losses, the insurer's 121
183	183	retention shall be reduced to one -third of the full retention. 122
184	184	The reimbursement contract shall provide for the reim bursement 123
185	185	of losses for each covered event based on the full retention 124
186	186	with adjustments made to reflect the reduced retentions on or 125
187	187
188	188	HB 11D 2022D
189	189
190	190
191	191
192	192	CODING: Words stricken are deletions; words underlined are additions.
193	193	hb0011d-00
194	194	Page 6 of 39
195	195	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
196	196
197	197
198	198
199	199	after January 1 of the contract year provided the insurer 126
200	200	reports its losses as specified in the reimbursement contract. 127
201	201	Section 2. Paragraph (b) of subsection (5) of section 128
202	202	215.555, Florida Statutes, is amended to read: 129
203	203	215.555 Florida Hurricane Catastrophe Fund. — 130
204	204	(5) REIMBURSEMENT PREMIUMS. — 131
205	205	(b) The State Board of Administration shall select an 132
206	206	independent consultant to develop a formula for determining the 133
207	207	actuarially indicated premium to be paid to the fund. The 134
208	208	formula shall specify, for each zip code or other limited 135
209	209	geographical area, the amount of premium to be paid by an 136
210	210	insurer for each $1,000 of insured va lue under covered policies 137
211	211	in that zip code or other area. In establishing premiums, the 138
212	212	board shall consider the coverage elected under paragraph (4)(b) 139
213	213	and any factors that tend to enhance the actuarial 140
214	214	sophistication of ratemaking for the fund, includin g 141
215	215	deductibles, type of construction, type of coverage provided, 142
216	216	relative concentration of risks, and other such factors deemed 143
217	217	by the board to be appropriate. The formula must provide for a 144
218	218	cash build-up factor only in a contract year in which the fund's 145
219	219	cash balance at the end of the previous calendar year is less 146
220	220	than $10 billion and for 2 subsequent contract years after the 147
221	221	year in which such a cash build -up factor is triggered . For the 148
222	222	2009-2010 contract year, the factor is 5 percent. For the 2010 -149
223	223	2011 contract year, the factor is 10 percent. For the 2011 -2012 150
224	224
225	225	HB 11D 2022D
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227	227
228	228
229	229	CODING: Words stricken are deletions; words underlined are additions.
230	230	hb0011d-00
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232	232	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
233	233
234	234
235	235
236	236	contract year, the factor is 15 percent. For the 2012 -2013 151
237	237	contract year, the factor is 20 percent. For the 2013 -2014 152
238	238	contract year and thereafter, The factor is and may not exceed 153
239	239	25 percent. The formula may provide for a procedure to determine 154
240	240	the premiums to be paid by new insurers that begin writing 155
241	241	covered policies after the beginning of a contract year, taking 156
242	242	into consideration when the insurer starts writing covered 157
243	243	policies, the potential e xposure of the insurer, the potential 158
244	244	exposure of the fund, the administrative costs to the insurer 159
245	245	and to the fund, and any other factors deemed appropriate by the 160
246	246	board. The formula must be approved by unanimous vote of the 161
247	247	board. The board may, at any t ime, revise the formula pursuant 162
248	248	to the procedure provided in this paragraph. 163
249	249	Section 3. Effective June 1, 2023, paragraph (c) of 164
250	250	subsection (2) of section 215.555, Florida Statutes, is amended 165
251	251	to read: 166
252	252	215.555 Florida Hurricane Catastrophe Fund. — 167
253	253	(2) DEFINITIONS.—As used in this section: 168
254	254	(c) "Covered policy" means any insurance policy covering 169
255	255	residential property in this state, including, but not limited 170
256	256	to, any homeowner, mobile home owner, farm owner, condominium 171
257	257	association, condominium unit owner, tenant, or apartment 172
258	258	building policy, or any other policy covering a residential 173
259	259	structure or its contents issued by any authorized insurer, 174
260	260	including a commercial self -insurance fund holding a certificate 175
261	261
262	262	HB 11D 2022D
263	263
264	264
265	265
266	266	CODING: Words stricken are deletions; words underlined are additions.
267	267	hb0011d-00
268	268	Page 8 of 39
269	269	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
270	270
271	271
272	272
273	273	of authority issued by the Office of Insur ance Regulation under 176
274	274	s. 624.462, the Citizens Property Insurance Corporation, and any 177
275	275	joint underwriting association or similar entity created under 178
276	276	law. The term "covered policy" includes any collateral 179
277	277	protection insurance policy covering personal resid ences which 180
278	278	protects both the borrower's and the lender's financial 181
279	279	interests, in an amount at least equal to the coverage amount 182
280	280	for the dwelling in place under the lapsed homeowner's policy, 183
281	281	the coverage amount that the homeowner has been notified of by 184
282	282	the collateral protection insurer, or the coverage amount that 185
283	283	the homeowner requests from the collateral protection insurer, 186
284	284	if such collateral protection insurance policy can be accurately 187
285	285	reported as required in subsection (5). Additionally, covered 188
286	286	policies include policies covering the peril of wind removed 189
287	287	from the Florida Residential Property and Casualty Joint 190
288	288	Underwriting Association or from the Citizens Property Insurance 191
289	289	Corporation, created under s. 627.351(6), or from the Florida 192
290	290	Windstorm Underwriting Association, created under s. 627.351(2), 193
291	291	by an authorized insurer under the terms and conditions of an 194
292	292	executed assumption agreement between the authorized insurer and 195
293	293	such association or Citizens Property Insurance Corporation. 196
294	294	Each assumption agreement between the association and such 197
295	295	authorized insurer or Citizens Property Insurance Corporation 198
296	296	must be approved by the Office of Insurance Regulation before 199
297	297	the effective date of the assumption, and the Office of 200
298	298
299	299	HB 11D 2022D
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301	301
302	302
303	303	CODING: Words stricken are deletions; words underlined are additions.
304	304	hb0011d-00
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306	306	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
307	307
308	308
309	309
310	310	Insurance Regulation must provide written notification to the 201
311	311	board within 15 working days after such approval. "Covered 202
312	312	policy" does not include any policy that excludes wind coverage 203
313	313	or hurricane coverage or any reinsurance agreement and does not 204
314	314	include any policy otherwise meeting this definition which is 205
315	315	issued by a surplus lines insurer or a reinsurer. All commercial 206
316	316	residential excess policies and all deductible buy -back policies 207
317	317	that, based on sound actuarial principles, require individual 208
318	318	ratemaking must shall be excluded by rule i f the actuarial 209
319	319	soundness of the fund is not jeopardized. For this purpose, the 210
320	320	term "excess policy" means a policy that provides insurance 211
321	321	protection for large commercial property risks and that provides 212
322	322	a layer of coverage above a primary layer insured b y another 213
323	323	insurer. 214
324	324	Section 4. Subsection (3) of section 440.381, Florida 215
325	325	Statutes, is amended to read: 216
326	326	440.381 Application for coverage; reporting payroll; 217
327	327	payroll audit procedures; penalties. — 218
328	328	(3) The Financial Services Commission, in consultation 219
329	329	with the department, shall establish by rule minimum 220
330	330	requirements for audits of payroll and classifications in order 221
331	331	to ensure that the appropriate premium is charged for workers' 222
332	332	compensation coverage. The rules must shall ensure that audits 223
333	333	performed by both carriers and employers are adequate to provide 224
334	334	that all sources of payments to employees, subcontractors, and 225
335	335
336	336	HB 11D 2022D
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338	338
339	339
340	340	CODING: Words stricken are deletions; words underlined are additions.
341	341	hb0011d-00
342	342	Page 10 of 39
343	343	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
344	344
345	345
346	346
347	347	independent contractors are have been reviewed and that the 226
348	348	accuracy of classification of employees is has been verified. 227
349	349	The rules must require shall provide that employers in all 228
350	350	classes other than the construction class be audited at least 229
351	351	not less frequently than biennially and may provide for more 230
352	352	frequent audits of employers in specified classifications based 231
353	353	on factors such as amount of premium, type of business, loss 232
354	354	ratios, or other relevant factors. In no event shall Employers 233
355	355	in the construction class , generating more than the amount of 234
356	356	premium required to be experience rated must, be audited at 235
357	357	least less than annually. The annual a udits required for 236
358	358	construction classes must shall consist of physical onsite 237
359	359	audits for policies only if the estimated annual premium is 238
360	360	$10,000 or more. Payroll verification audit rules must include, 239
361	361	but need not be limited to, the use of state and feder al reports 240
362	362	of employee income, payroll and other accounting records, 241
363	363	certificates of insurance maintained by subcontractors, and 242
364	364	duties of employees. At the completion of an audit, the employer 243
365	365	or officer of the corporation and the auditor must print and 244
366	366	sign their names on the audit document and attach proof of 245
367	367	identification to the audit document. 246
368	368	Section 5. Section 624.46227, Florida Statutes, is created 247
369	369	to read: 248
370	370	624.46227 Meeting requirements. —Any association, trust, or 249
371	371	pool authorized by state la w and created for the purpose of 250
372	372
373	373	HB 11D 2022D
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375	375
376	376
377	377	CODING: Words stricken are deletions; words underlined are additions.
378	378	hb0011d-00
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380	380	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
381	381
382	382
383	383
384	384	forming a risk management mechanism or providing self -insurance 251
385	385	for public entities in the state may use communications media 252
386	386	technology to establish a quorum and conduct business. 253
387	387	Section 6. Paragraph (j) of subsection (2) of section 254
388	388	626.221, Florida Statutes, is amended to read: 255
389	389	626.221 Examination requirement; exemptions. — 256
390	390	(2) However, an examination is not necessary for any of 257
391	391	the following: 258
392	392	(j) An applicant for license as an all -lines adjuster who 259
393	393	has the designation of Accredited Claims Adjuster (ACA) from a 260
394	394	regionally accredited postsecondary institution in this state, 261
395	395	Associate in Claims (AIC) from the Insurance Institute of 262
396	396	America, Professional Claims Adjuster (PCA) from the 263
397	397	Professional Career Institute, Professional Property Insurance 264
398	398	Adjuster (PPIA) from the HurriClaim Training Academy, Certified 265
399	399	Adjuster (CA) from ALL LINES Training, Certified Claims Adjuster 266
400	400	(CCA) from AE21 Incorporated, Claims Adjuster Certified 267
401	401	Professional (CACP) from WebCE, Inc., A ccredited Insurance 268
402	402	Claims Specialist (AICS) from Encore Claim Services, Certified 269
403	403	All Lines Adjuster (CALA) from Kaplan, or Universal Claims 270
404	404	Certification (UCC) from Claims and Litigation Management 271
405	405	Alliance (CLM) whose curriculum has been approved by the 272
406	406	department and which includes comprehensive analysis of basic 273
407	407	property and casualty lines of insurance and testing at least 274
408	408	equal to that of standard department testing for the all -lines 275
409	409
410	410	HB 11D 2022D
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412	412
413	413
414	414	CODING: Words stricken are deletions; words underlined are additions.
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417	417	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
418	418
419	419
420	420
421	421	adjuster license. The department shall adopt rules establishing 276
422	422	standards for the approval of curriculum. 277
423	423	Section 7. Section 626.856, Florida Statutes, is amended 278
424	424	to read: 279
425	425	626.856 "Company employee adjuster" defined. —A "company 280
426	426	employee adjuster" means a person licensed as an all -lines 281
427	427	adjuster who is appointed and employed on an insurer's staff of 282
428	428	adjusters, by an affiliate, or by a wholly owned subsidiary of 283
429	429	the insurer, and who undertakes on behalf of such insurer or 284
430	430	other insurers under common control or ownership to ascertain 285
431	431	and determine the amount of any clai m, loss, or damage payable 286
432	432	under a contract of insurance, or undertakes to effect 287
433	433	settlement of such claim, loss, or damage. 288
434	434	Section 8. Paragraph (j) of subsection (2) of section 289
435	435	627.062, Florida Statutes, is amended, and paragraph (k) of that 290
436	436	subsection is reenacted for the purpose of incorporating the 291
437	437	amendment made by this act to section 215.555, Florida Statutes, 292
438	438	to read: 293
439	439	627.062 Rate standards. — 294
440	440	(2) As to all such classes of insurance: 295
441	441	(j) With respect to residential property insurance rate 296
442	442	filings, the rate filing : 297
443	443	1. Must account for mitigation measures undertaken by 298
444	444	policyholders to reduce hurricane losses. 299
445	445	2. May use a modeling indication that is the weighted or 300
446	446
447	447	HB 11D 2022D
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449	449
450	450
451	451	CODING: Words stricken are deletions; words underlined are additions.
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454	454	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
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456	456
457	457
458	458	straight average of two or more hurricane loss projection models 301
459	459	found by the commission to be accurate or reliable under s. 302
460	460	627.0628. 303
461	461	(k)1. A residential property insurer may make a separate 304
462	462	filing limited solely to an adjustment of its rates for 305
463	463	reinsurance, the cost of financing products used as a 306
464	464	replacement for reinsuranc e, financing costs incurred in the 307
465	465	purchase of reinsurance, and the actual cost paid due to the 308
466	466	application of the cash build -up factor pursuant to s. 309
467	467	215.555(5)(b) if the insurer: 310
468	468	a. Elects to purchase financing products such as a 311
469	469	liquidity instrument o r line of credit, in which case the cost 312
470	470	included in filing for the liquidity instrument or line of 313
471	471	credit may not result in a premium increase exceeding 3 percent 314
472	472	for any individual policyholder. All costs contained in the 315
473	473	filing may not result in an over all premium increase of more 316
474	474	than 15 percent for any individual policyholder. 317
475	475	b. Includes in the filing a copy of all of its 318
476	476	reinsurance, liquidity instrument, or line of credit contracts; 319
477	477	proof of the billing or payment for the contracts; and the 320
478	478	calculation upon which the proposed rate change is based 321
479	479	demonstrating that the costs meet the criteria of this section. 322
480	480	2. An insurer that purchases reinsurance or financing 323
481	481	products from an affiliated company may make a separate filing 324
482	482	only if the costs for such reinsurance or financing products are 325
483	483
484	484	HB 11D 2022D
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486	486
487	487
488	488	CODING: Words stricken are deletions; words underlined are additions.
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491	491	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
492	492
493	493
494	494
495	495	charged at or below charges made for comparable coverage by 326
496	496	nonaffiliated reinsurers or financial entities making such 327
497	497	coverage or financing products available in this state. 328
498	498	3. An insurer may make only one fili ng per 12-month period 329
499	499	under this paragraph. 330
500	500	4. An insurer that elects to implement a rate change under 331
501	501	this paragraph must file its rate filing with the office at 332
502	502	least 45 days before the effective date of the rate change. 333
503	503	After an insurer submits a com plete filing that meets all of the 334
504	504	requirements of this paragraph, the office has 45 days after the 335
505	505	date of the filing to review the rate filing and determine if 336
506	506	the rate is excessive, inadequate, or unfairly discriminatory. 337
507	507	338
508	508	The provisions of this subsect ion do not apply to workers' 339
509	509	compensation, employer's liability insurance, and motor vehicle 340
510	510	insurance. 341
511	511	Section 9. Subsection (9) is added to section 627.0629, 342
512	512	Florida Statutes, to read: 343
513	513	627.0629 Residential property insurance; rate filings. — 344
514	514	(9) An insurer may file with the office a personal lines 345
515	515	residential property insurance rating plan that provides 346
516	516	justified premium discounts, credits, or other rate 347
517	517	differentials based on windstorm mitigation construction 348
518	518	standards developed by an indepe ndent, nonprofit scientific 349
519	519	research organization, if such standards meet the requirements 350
520	520
521	521	HB 11D 2022D
522	522
523	523
524	524
525	525	CODING: Words stricken are deletions; words underlined are additions.
526	526	hb0011d-00
527	527	Page 15 of 39
528	528	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
529	529
530	530
531	531
532	532	of this section. 351
533	533	Section 10. Section 627.0665, Florida Statutes, is amended 352
534	534	to read: 353
535	535	627.0665 Automatic bank withdrawal agreements; 354
536	536	notification required. —Any insurer licensed to issue insurance 355
537	537	in the state which who has an automatic bank withdrawal 356
538	538	agreement with an insured party for the payment of insurance 357
539	539	premiums for any type of insurance shall give the named insured 358
540	540	at least 15 days advance written notice of any increase in 359
541	541	policy premiums which results in the next automatic bank 360
542	542	withdrawal being increased by more than $10. Such notice must be 361
543	543	provided before prior to any automatic bank withdrawal of the an 362
544	544	increased premium amount. 363
545	545	Section 11. Paragra ph (a) of subsection (6) of section 364
546	546	627.351, Florida Statutes, is amended, and paragraph (n) of that 365
547	547	subsection is reenacted for the purpose of incorporating the 366
548	548	amendment made by this act to section 215.555, Florida Statutes, 367
549	549	to read: 368
550	550	627.351 Insurance risk apportionment plans. — 369
551	551	(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 370
552	552	(a) The public purpose of this subsection is to ensure 371
553	553	that there is an orderly market for property insurance for 372
554	554	residents and businesses of this state. 373
555	555	1. The Legislature find s that private insurers are 374
556	556	unwilling or unable to provide affordable property insurance 375
557	557
558	558	HB 11D 2022D
559	559
560	560
561	561
562	562	CODING: Words stricken are deletions; words underlined are additions.
563	563	hb0011d-00
564	564	Page 16 of 39
565	565	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
566	566
567	567
568	568
569	569	coverage in this state to the extent sought and needed. The 376
570	570	absence of affordable property insurance threatens the public 377
571	571	health, safety, and welfare and likewise thre atens the economic 378
572	572	health of the state. The state therefore has a compelling public 379
573	573	interest and a public purpose to assist in assuring that 380
574	574	property in the state is insured and that it is insured at 381
575	575	affordable rates so as to facilitate the remediation, 382
576	576	reconstruction, and replacement of damaged or destroyed property 383
577	577	in order to reduce or avoid the negative effects otherwise 384
578	578	resulting to the public health, safety, and welfare, to the 385
579	579	economy of the state, and to the revenues of the state and local 386
580	580	governments which are needed to provide for the public welfare. 387
581	581	It is necessary, therefore, to provide affordable property 388
582	582	insurance to applicants who are in good faith entitled to 389
583	583	procure insurance through the voluntary market but are unable to 390
584	584	do so. The Legislature intends, therefore, that affordable 391
585	585	property insurance be provided and that it continue to be 392
586	586	provided, as long as necessary, through Citizens Property 393
587	587	Insurance Corporation, a government entity that is an integral 394
588	588	part of the state, and that is not a private insurance company. 395
589	589	To that end, the corporation shall strive to increase the 396
590	590	availability of affordable property insurance in this state, 397
591	591	while achieving efficiencies and economies, and while providing 398
592	592	service to policyholders, applicants, and agen ts which is no 399
593	593	less than the quality generally provided in the voluntary 400
594	594
595	595	HB 11D 2022D
596	596
597	597
598	598
599	599	CODING: Words stricken are deletions; words underlined are additions.
600	600	hb0011d-00
601	601	Page 17 of 39
602	602	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
603	603
604	604
605	605
606	606	market, for the achievement of the foregoing public purposes. 401
607	607	Because it is essential for this government entity to have the 402
608	608	maximum financial resources to pay claims following a 403
609	609	catastrophic hurricane, it is the intent of the Legislature that 404
610	610	the corporation continue to be an integral part of the state and 405
611	611	that the income of the corporation be exempt from federal income 406
612	612	taxation and that interest on the debt obligations issued by the 407
613	613	corporation be exempt from federal income taxation. 408
614	614	2. The Residential Property and Casualty Joint 409
615	615	Underwriting Association originally created by this statute 410
616	616	shall be known as the Citizens Property Insurance Corporation. 411
617	617	The corporation shall provide in surance for residential and 412
618	618	commercial property, for applicants who are entitled, but, in 413
619	619	good faith, are unable to procure insurance through the 414
620	620	voluntary market. The corporation shall operate pursuant to a 415
621	621	plan of operation approved by order of the Finan cial Services 416
622	622	Commission. The plan is subject to continuous review by the 417
623	623	commission. The commission may, by order, withdraw approval of 418
624	624	all or part of a plan if the commission determines that 419
625	625	conditions have changed since approval was granted and that the 420
626	626	purposes of the plan require changes in the plan. For the 421
627	627	purposes of this subsection, residential coverage includes both 422
628	628	personal lines residential coverage, which consists of the type 423
629	629	of coverage provided by homeowner, mobile home owner, dwelling, 424
630	630	tenant, condominium unit owner, and similar policies; and 425
631	631
632	632	HB 11D 2022D
633	633
634	634
635	635
636	636	CODING: Words stricken are deletions; words underlined are additions.
637	637	hb0011d-00
638	638	Page 18 of 39
639	639	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
640	640
641	641
642	642
643	643	commercial lines residential coverage, which consists of the 426
644	644	type of coverage provided by condominium association, apartment 427
645	645	building, and similar policies. 428
646	646	3. With respect to coverage for personal lin es residential 429
647	647	structures: 430
648	648	a. Effective January 1, 2014, a structure that has a 431
649	649	dwelling replacement cost of $1 million or more, or a single 432
650	650	condominium unit that has a combined dwelling and contents 433
651	651	replacement cost of $1 million or more, is not eligibl e for 434
652	652	coverage by the corporation. Such dwellings insured by the 435
653	653	corporation on December 31, 2013, may continue to be covered by 436
654	654	the corporation until the end of the policy term. The office 437
655	655	shall approve the method used by the corporation for valuing the 438
656	656	dwelling replacement cost for the purposes of this subparagraph. 439
657	657	If a policyholder is insured by the corporation before being 440
658	658	determined to be ineligible pursuant to this subparagraph and 441
659	659	such policyholder files a lawsuit challenging the determination, 442
660	660	the policyholder may remain insured by the corporation until the 443
661	661	conclusion of the litigation. 444
662	662	b. Effective January 1, 2015, a structure that has a 445
663	663	dwelling replacement cost of $900,000 or more, or a single 446
664	664	condominium unit that has a combined dwelling and c ontents 447
665	665	replacement cost of $900,000 or more, is not eligible for 448
666	666	coverage by the corporation. Such dwellings insured by the 449
667	667	corporation on December 31, 2014, may continue to be covered by 450
668	668
669	669	HB 11D 2022D
670	670
671	671
672	672
673	673	CODING: Words stricken are deletions; words underlined are additions.
674	674	hb0011d-00
675	675	Page 19 of 39
676	676	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
677	677
678	678
679	679
680	680	the corporation only until the end of the policy term. 451
681	681	c. Effective January 1, 2016, a structure that has a 452
682	682	dwelling replacement cost of $800,000 or more, or a single 453
683	683	condominium unit that has a combined dwelling and contents 454
684	684	replacement cost of $800,000 or more, is not eligible for 455
685	685	coverage by the corporation. Such dwe llings insured by the 456
686	686	corporation on December 31, 2015, may continue to be covered by 457
687	687	the corporation until the end of the policy term. 458
688	688	d. Effective January 1, 2017, a structure that has a 459
689	689	dwelling replacement cost of $700,000 or more, or a single 460
690	690	condominium unit that has a combined dwelling and contents 461
691	691	replacement cost of $700,000 or more, is not eligible for 462
692	692	coverage by the corporation. Such dwellings insured by the 463
693	693	corporation on December 31, 2016, may continue to be covered by 464
694	694	the corporation until the end of the policy term. 465
695	695	466
696	696	The requirements of sub -subparagraphs b.-d. do not apply in 467
697	697	counties where the office determines there is not a reasonable 468
698	698	degree of competition. In such counties a personal lines 469
699	699	residential structure that has a dwelling repla cement cost of 470
700	700	less than $1 million, or a single condominium unit that has a 471
701	701	combined dwelling and contents replacement cost of less than $1 472
702	702	million, is eligible for coverage by the corporation. 473
703	703	4. It is the intent of the Legislature that policyholders, 474
704	704	applicants, and agents of the corporation receive service and 475
705	705
706	706	HB 11D 2022D
707	707
708	708
709	709
710	710	CODING: Words stricken are deletions; words underlined are additions.
711	711	hb0011d-00
712	712	Page 20 of 39
713	713	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
714	714
715	715
716	716
717	717	treatment of the highest possible level but never less than that 476
718	718	generally provided in the voluntary market. It is also intended 477
719	719	that the corporation be held to service standards no less than 478
720	720	those applied to insurers in the voluntary market by the office 479
721	721	with respect to responsiveness, timeliness, customer courtesy, 480
722	722	and overall dealings with policyholders, applicants, or agents 481
723	723	of the corporation. 482
724	724	5.a. Effective January 1, 2009, a personal lin es 483
725	725	residential structure that is located in the "wind -borne debris 484
726	726	region," as defined in s. 1609.2, International Building Code 485
727	727	(2006), and that has an insured value on the structure of 486
728	728	$750,000 or more is not eligible for coverage by the corporation 487
729	729	unless the structure has opening protections as required under 488
730	730	the Florida Building Code for a newly constructed residential 489
731	731	structure in that area. A residential structure is deemed to 490
732	732	comply with this sub -subparagraph if it has shutters or opening 491
733	733	protections on all openings and if such opening protections 492
734	734	complied with the Florida Building Code at the time they were 493
735	735	installed. 494
736	736	b. Any major structure, as defined in s. 161.54(6)(a), 495
737	737	that is newly constructed, or rebuilt, repaired, restored, or 496
738	738	remodeled to increase the total square footage of finished area 497
739	739	by more than 25 percent, pursuant to a permit applied for after 498
740	740	July 1, 2015, is not eligible for coverage by the corporation if 499
741	741	the structure is seaward of the coastal construction control 500
742	742
743	743	HB 11D 2022D
744	744
745	745
746	746
747	747	CODING: Words stricken are deletions; words underlined are additions.
748	748	hb0011d-00
749	749	Page 21 of 39
750	750	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
751	751
752	752
753	753
754	754	line established pursuant to s. 161.053 or is within the Coastal 501
755	755	Barrier Resources System as designated by 16 U.S.C. ss. 3501 -502
756	756	3510. 503
757	757	6. With respect to wind -only coverage for commercial lines 504
758	758	residential condominiums, effective July 1, 2014, a condominium 505
759	759	may shall be deemed ineligible for coverage when if 50 percent 506
760	760	or more of the units are rented more than eight times in a 507
761	761	calendar year for a rental agreement period of less than 30 508
762	762	days. 509
763	763	(n)1. Rates for coverage provided by the corporation must 510
764	764	be actuarially sound an d subject to s. 627.062, except as 511
765	765	otherwise provided in this paragraph. The corporation shall file 512
766	766	its recommended rates with the office at least annually. The 513
767	767	corporation shall provide any additional information regarding 514
768	768	the rates which the office requi res. The office shall consider 515
769	769	the recommendations of the board and issue a final order 516
770	770	establishing the rates for the corporation within 45 days after 517
771	771	the recommended rates are filed. The corporation may not pursue 518
772	772	an administrative challenge or judicial review of the final 519
773	773	order of the office. 520
774	774	2. In addition to the rates otherwise determined pursuant 521
775	775	to this paragraph, the corporation shall impose and collect an 522
776	776	amount equal to the premium tax provided in s. 624.509 to 523
777	777	augment the financial resources of the corporation. 524
778	778	3. After the public hurricane loss -projection model under 525
779	779
780	780	HB 11D 2022D
781	781
782	782
783	783
784	784	CODING: Words stricken are deletions; words underlined are additions.
785	785	hb0011d-00
786	786	Page 22 of 39
787	787	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
788	788
789	789
790	790
791	791	s. 627.06281 has been found to be accurate and reliable by the 526
792	792	Florida Commission on Hurricane Loss Projection Methodology, the 527
793	793	model shall be considered when establishing the wi ndstorm 528
794	794	portion of the corporation's rates. The corporation may use the 529
795	795	public model results in combination with the results of private 530
796	796	models to calculate rates for the windstorm portion of the 531
797	797	corporation's rates. This subparagraph does not require or al low 532
798	798	the corporation to adopt rates lower than the rates otherwise 533
799	799	required or allowed by this paragraph. 534
800	800	4. The corporation must make a recommended actuarially 535
801	801	sound rate filing for each personal and commercial line of 536
802	802	business it writes. 537
803	803	5. Notwithstanding the board's recommended rates and the 538
804	804	office's final order regarding the corporation's filed rates 539
805	805	under subparagraph 1., the corporation shall annually implement 540
806	806	a rate increase which, except for sinkhole coverage, does not 541
807	807	exceed the following for any single policy issued by the 542
808	808	corporation, excluding coverage changes and surcharges: 543
809	809	a. Eleven percent for 2022. 544
810	810	b. Twelve percent for 2023. 545
811	811	c. Thirteen percent for 2024. 546
812	812	d. Fourteen percent for 2025. 547
813	813	e. Fifteen percent for 2026 and all subsequent years. 548
814	814	6. The corporation may also implement an increase to 549
815	815	reflect the effect on the corporation of the cash buildup factor 550
816	816
817	817	HB 11D 2022D
818	818
819	819
820	820
821	821	CODING: Words stricken are deletions; words underlined are additions.
822	822	hb0011d-00
823	823	Page 23 of 39
824	824	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
825	825
826	826
827	827
828	828	pursuant to s. 215.555(5)(b). 551
829	829	7. The corporation's implementation of rates as prescribed 552
830	830	in subparagraph 5. shall ce ase for any line of business written 553
831	831	by the corporation upon the corporation's implementation of 554
832	832	actuarially sound rates. Thereafter, the corporation shall 555
833	833	annually make a recommended actuarially sound rate filing for 556
834	834	each commercial and personal line of b usiness the corporation 557
835	835	writes. 558
836	836	Section 12. Subsection (1) of section 627.421, Florida 559
837	837	Statutes, is amended to read: 560
838	838	627.421 Delivery of policy. — 561
839	839	(1) Subject to the insurer's requirement as to payment of 562
840	840	premium, every policy shall be mailed, deliv ered, or 563
841	841	electronically transmitted to the insured or to the person 564
842	842	entitled thereto not later than 60 days after the effectuation 565
843	843	of coverage. Notwithstanding any other provision of law, an 566
844	844	insurer may allow a policyholder of personal lines insurance to 567
845	845	affirmatively elect delivery of the policy documents, including, 568
846	846	but not limited to, policies, endorsements, notices, or 569
847	847	documents, by electronic means in lieu of delivery by mail. 570
848	848	Electronic transmission of a policy for commercial risks, 571
849	849	including, but not limited to, workers' compensation and 572
850	850	employers' liability, commercial automobile liability, 573
851	851	commercial automobile physical damage, commercial lines 574
852	852	residential property, commercial nonresidential property, 575
853	853
854	854	HB 11D 2022D
855	855
856	856
857	857
858	858	CODING: Words stricken are deletions; words underlined are additions.
859	859	hb0011d-00
860	860	Page 24 of 39
861	861	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
862	862
863	863
864	864
865	865	farmowners insurance, and the types of commercia l lines risks 576
866	866	set forth in s. 627.062(3)(d), constitutes delivery to the 577
867	867	insured or to the person entitled to delivery, unless the 578
868	868	insured or the person entitled to delivery communicates to the 579
869	869	insurer in writing or electronically that he or she does not 580
870	870	agree to delivery by electronic means. Electronic transmission 581
871	871	shall include a notice to the insured or to the person entitled 582
872	872	to delivery of a policy of his or her right to receive the 583
873	873	policy via United States mail rather than via electronic 584
874	874	transmission. A paper copy of the policy shall be provided to 585
875	875	the insured or to the person entitled to delivery at his or her 586
876	876	request. 587
877	877	Section 13. Paragraph (d) of subsection (4) of section 588
878	878	627.701, Florida Statutes, is amended to read: 589
879	879	627.701 Liability of insure ds; coinsurance; deductibles. — 590
880	880	(4) 591
881	881	(d)1. A personal lines residential property insurance 592
882	882	policy covering a risk valued at less than $500,000 may not have 593
883	883	a hurricane deductible in excess of 10 percent of the policy 594
884	884	dwelling limits, unless the following conditions are met: 595
885	885	a. The policyholder must personally write or type and 596
886	886	provide to the insurer the following statement in his or her own 597
887	887	handwriting and sign his or her name, which must also be signed 598
888	888	by every other named insured on the policy, and dat ed: "I do not 599
889	889	want the insurance on my home to pay for the first (specify 600
890	890
891	891	HB 11D 2022D
892	892
893	893
894	894
895	895	CODING: Words stricken are deletions; words underlined are additions.
896	896	hb0011d-00
897	897	Page 25 of 39
898	898	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
899	899
900	900
901	901
902	902	dollar value) of damage from hurricanes. I will pay those costs. 601
903	903	My insurance will not." 602
904	904	b. If the structure insured by the policy is subject to a 603
905	905	mortgage or lien, the policyholde r must provide the insurer with 604
906	906	a written statement from the mortgageholder or lienholder 605
907	907	indicating that the mortgageholder or lienholder approves the 606
908	908	policyholder electing to have the specified deductible. 607
909	909	2. A deductible subject to the requirements of this 608
910	910	paragraph applies for the term of the policy and for each 609
911	911	renewal thereafter. Changes to the deductible percentage may be 610
912	912	implemented only as of the date of renewal. 611
913	913	3. An insurer shall keep the original copy of the signed 612
914	914	statement required by thi s paragraph, electronically or 613
915	915	otherwise, and provide a copy to the policyholder providing the 614
916	916	signed statement. A signed statement meeting the requirements of 615
917	917	this paragraph creates a presumption that there was an informed, 616
918	918	knowing election of coverage. 617
919	919	4. The commission shall adopt rules providing appropriate 618
920	920	alternative methods for providing the statements required by 619
921	921	this section for policyholders who have a handicapping or 620
922	922	disabling condition that prevents them from providing a 621
923	923	handwritten statement. 622
924	924	Section 14. Paragraph (a) of subsection (2) and subsection 623
925	925	(3) of section 627.712, Florida Statutes, are amended to read: 624
926	926	627.712 Residential windstorm coverage required; 625
927	927
928	928	HB 11D 2022D
929	929
930	930
931	931
932	932	CODING: Words stricken are deletions; words underlined are additions.
933	933	hb0011d-00
934	934	Page 26 of 39
935	935	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
936	936
937	937
938	938
939	939	availability of exclusions for windstorm or contents. — 626
940	940	(2) A property insure r must make available, at the option 627
941	941	of the policyholder, an exclusion of windstorm coverage. 628
942	942	(a) The coverage may be excluded only if: 629
943	943	1. When the policyholder is a natural person, the 630
944	944	policyholder personally writes or types and provides to the 631
945	945	insurer the following statement in his or her own handwriting 632
946	946	and signs his or her name, which must also be signed by every 633
947	947	other named insured on the policy, and dated: "I do not want the 634
948	948	insurance on my (home/mobile home/condominium unit) to pay for 635
949	949	damage from windstorms. I will pay those costs. My insurance 636
950	950	will not." 637
951	951	2. When the policyholder is other than a natural person, 638
952	952	the policyholder provides to the insurer on the policyholder's 639
953	953	letterhead the following statement that must be signed by the 640
954	954	policyholder's authorized representative and dated: "...(Name of 641
955	955	entity)... does not want the insurance on its ...(type of 642
956	956	structure)... to pay for damage from windstorms. ...(Name of 643
957	957	entity)... will be responsible for these costs. ...(Name of 644
958	958	entity's)... insurance will not." 645
959	959	(3) An insurer issuing a residential property insurance 646
960	960	policy, except for a condominium unit owner policy or a tenant 647
961	961	policy, must make available, at the option of the policyholder, 648
962	962	an exclusion of coverage for the contents. The coverage may be 649
963	963	excluded only if the policyholder personally writes or types and 650
964	964
965	965	HB 11D 2022D
966	966
967	967
968	968
969	969	CODING: Words stricken are deletions; words underlined are additions.
970	970	hb0011d-00
971	971	Page 27 of 39
972	972	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
973	973
974	974
975	975
976	976	provides to the insurer the following statement in his or her 651
977	977	own handwriting and signs his or her signature, which must also 652
978	978	be signed by every other named insured on the policy, and dat ed: 653
979	979	"I do not want the insurance on my (home/mobile home) to pay for 654
980	980	the costs to repair or replace any contents that are damaged. I 655
981	981	will pay those costs. My insurance will not." 656
982	982	Section 15. Effective upon this act becoming a law, 657
983	983	paragraph (b) of subs ection (1) and paragraph (a) of subsection 658
984	984	(9) of section 627.7152, Florida Statutes, are amended to read: 659
985	985	627.7152 Assignment agreements. — 660
986	986	(1) As used in this section, the term: 661
987	987	(b) "Assignment agreement" means any instrument by which 662
988	988	post-loss benefits under a residential property insurance policy 663
989	989	or commercial property insurance policy, as that term is defined 664
990	990	in s. 627.0625(1), are assigned or transferred, or acquired in 665
991	991	any manner, in whole or in part, to or from a person providing 666
992	992	services, including, but not limited to, services to inspect, 667
993	993	protect, repair, restore, or replace property or to mitigate 668
994	994	against further damage to the property. The term does not 669
995	995	include any instrument by which a licensed public adjuster as 670
996	996	defined in s. 626.854(1) re ceives any compensation, payment, 671
997	997	commission, fee, or other thing of value for providing services 672
998	998	under such licensure. 673
999	999	(9)(a) An assignee must provide the named insured, 674
1000	1000	insurer, and the assignor, if not the named insured, with a 675
1001	1001
1002	1002	HB 11D 2022D
1003	1003
1004	1004
1005	1005
1006	1006	CODING: Words stricken are deletions; words underlined are additions.
1007	1007	hb0011d-00
1008	1008	Page 28 of 39
1009	1009	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
1010	1010
1011	1011
1012	1012
1013	1013	written notice of inten t to initiate litigation before filing 676
1014	1014	suit under the policy. Such notice must be served at least 10 677
1015	1015	business days before filing suit, but not before the insurer has 678
1016	1016	made a determination of coverage under s. 627.70131, by 679
1017	1017	certified mail, return receipt req uested, to the name and 680
1018	1018	mailing address designated by the insurer in the policy forms or 681
1019	1019	by electronic delivery to the e-mail address designated by the 682
1020	1020	insurer in the policy forms at least 10 business days before 683
1021	1021	filing suit, but may not be served before t he insurer has made a 684
1022	1022	determination of coverage under s. 627.70131 . The notice must 685
1023	1023	specify the damages in dispute, the amount claimed, and a 686
1024	1024	presuit settlement demand. Concurrent with the notice, and as a 687
1025	1025	precondition to filing suit, the assignee must pro vide the named 688
1026	1026	insured, insurer, and the assignor, if not the named insured, a 689
1027	1027	detailed written invoice or estimate of services, including 690
1028	1028	itemized information on equipment, materials, and supplies; the 691
1029	1029	number of labor hours; and, in the case of work perfo rmed, proof 692
1030	1030	that the work has been performed in accordance with accepted 693
1031	1031	industry standards. 694
1032	1032	Section 16. Section 627.7276, Florida Statutes, is amended 695
1033	1033	to read: 696
1034	1034	627.7276 Notice of limited coverage. — 697
1035	1035	(1) An automobile policy that does not contain coverage 698
1036	1036	for bodily injury and property damage must include a notice be 699
1037	1037	clearly stamped or printed to the effect that such coverage is 700
1038	1038
1039	1039	HB 11D 2022D
1040	1040
1041	1041
1042	1042
1043	1043	CODING: Words stricken are deletions; words underlined are additions.
1044	1044	hb0011d-00
1045	1045	Page 29 of 39
1046	1046	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
1047	1047
1048	1048
1049	1049
1050	1050	not included in the policy in the following manner: 701
1051	1051	702
1052	1052	"THIS POLICY DOES NO T PROVIDE BODILY INJURY AND 703
1053	1053	PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER 704
1054	1054	COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT 705
1055	1055	MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL 706
1056	1056	RESPONSIBILITY LAW." 707
1057	1057	708
1058	1058	(2) This notice legend must accompany appear on the policy 709
1059	1059	declarations declaration page and on the filing back of the 710
1060	1060	policy and be printed in a contrasting color from that used on 711
1061	1061	the policy and in type size at least as large as the type size 712
1062	1062	used on the declarations page larger than the largest type used 713
1063	1063	in the text thereof, as an overprint or by a rubber stamp 714
1064	1064	impression. 715
1065	1065	Section 17. Section 634.171, Florida Statutes, is amended 716
1066	1066	to read: 717
1067	1067	634.171 Salesperson to be licensed and appointed ; 718
1068	1068	exemptions.—Salespersons for motor vehicle service agreem ent 719
1069	1069	companies and insurers must shall be licensed, appointed, 720
1070	1070	renewed, continued, reinstated, or terminated as prescribed in 721
1071	1071	chapter 626 for insurance representatives in general. However, 722
1072	1072	they are shall be exempt from all other provisions of chapter 723
1073	1073	626, including provisions relating to fingerprinting, photo 724
1074	1074	identification, education, and examination provisions. 725
1075	1075
1076	1076	HB 11D 2022D
1077	1077
1078	1078
1079	1079
1080	1080	CODING: Words stricken are deletions; words underlined are additions.
1081	1081	hb0011d-00
1082	1082	Page 30 of 39
1083	1083	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
1084	1084
1085	1085
1086	1086
1087	1087	Applicable license, appointment, and other fees are as shall be 726
1088	1088	those prescribed in s. 624.501. A licensed and appointed 727
1089	1089	salesperson is shall be directly responsible and accountable for 728
1090	1090	all acts of her or his employees and other representatives. Each 729
1091	1091	service agreement company or insurer shall, on forms prescribed 730
1092	1092	by the department, within 30 days after termination of the 731
1093	1093	appointment, notify the depar tment of such termination. An No 732
1094	1094	employee or a salesperson of a motor vehicle service agreement 733
1095	1095	company or an insurer may not directly or indirectly solicit or 734
1096	1096	negotiate insurance contracts, or hold herself or himself out in 735
1097	1097	any manner to be an insurance a gent, unless so qualified, 736
1098	1098	licensed, and appointed therefor under the Florida Insurance 737
1099	1099	Code. A licensed personal lines or general lines agent is not 738
1100	1100	required to be licensed as a salesperson under this section to 739
1101	1101	solicit, negotiate, advertise, or sell moto r vehicle service 740
1102	1102	agreements. A motor vehicle service agreement company is not 741
1103	1103	required to be licensed as a salesperson to solicit, sell, 742
1104	1104	issue, or otherwise transact the motor vehicle service 743
1105	1105	agreements issued by the motor vehicle service agreement 744
1106	1106	company. 745
1107	1107	Section 18. Section 634.317, Florida Statutes, is amended 746
1108	1108	to read: 747
1109	1109	634.317 License and appointment required ; exemptions.—A No 748
1110	1110	person may not solicit, negotiate, or effectuate home warranty 749
1111	1111	contracts for remuneration in the this state unless such person 750
1112	1112
1113	1113	HB 11D 2022D
1114	1114
1115	1115
1116	1116
1117	1117	CODING: Words stricken are deletions; words underlined are additions.
1118	1118	hb0011d-00
1119	1119	Page 31 of 39
1120	1120	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
1121	1121
1122	1122
1123	1123
1124	1124	is licensed and appointed as a sales representative. A licensed 751
1125	1125	and appointed sales representative is shall be directly 752
1126	1126	responsible and accountable for all acts of the licensee's 753
1127	1127	employees. A licensed personal lines or general lines agent is 754
1128	1128	not required to be licensed as a sales representative under this 755
1129	1129	section to solicit, negotiate, advertise, or sell home warranty 756
1130	1130	contracts. 757
1131	1131	Section 19. Section 634.419, Florida Statutes, is amended 758
1132	1132	to read: 759
1133	1133	634.419 License and appointment required ; exemptions.—A No 760
1134	1134	person or an entity may not shall solicit, negotiate, advertise, 761
1135	1135	or effectuate service warranty contracts in the this state 762
1136	1136	unless such person or entity is licensed and appointed as a 763
1137	1137	sales representative. Sales representatives are shall be 764
1138	1138	responsible for the actions of persons under their supervision. 765
1139	1139	However, a service warranty association licensed as such under 766
1140	1140	this part is shall not be required to be licensed and appointed 767
1141	1141	as a sales representative to solicit, negotiate, advertise, or 768
1142	1142	effectuate its products. A licensed personal lines or general 769
1143	1143	lines agent is not required to be licensed as a sales 770
1144	1144	representative under this section to solicit, negotiate, 771
1145	1145	advertise, or sell service warranty contracts. 772
1146	1146	Section 20. Effective June 1, 202 3, for the purpose of 773
1147	1147	incorporating the amendment made by this act to section 215.555, 774
1148	1148	Florida Statutes, in a reference thereto, subsection (10) of 775
1149	1149
1150	1150	HB 11D 2022D
1151	1151
1152	1152
1153	1153
1154	1154	CODING: Words stricken are deletions; words underlined are additions.
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1157	1157	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
1158	1158
1159	1159
1160	1160
1161	1161	section 624.424, Florida Statutes, is reenacted to read: 776
1162	1162	624.424 Annual statement and other information. — 777
1163	1163	(10) Each insurer or insurer group doing business in this 778
1164	1164	state shall file on a quarterly basis in conjunction with 779
1165	1165	financial reports required by paragraph (1)(a) a supplemental 780
1166	1166	report on an individual and group basis on a form prescribed by 781
1167	1167	the commission with information on personal lines and commercial 782
1168	1168	lines residential property insurance policies in this state. The 783
1169	1169	supplemental report shall include separate information for 784
1170	1170	personal lines property policies and for commercial lines 785
1171	1171	property policies and totals for each item specified, including 786
1172	1172	premiums written for each of the property lines of business as 787
1173	1173	described in ss. 215.555(2)(c) and 627.351(6)(a). The report 788
1174	1174	shall include the following information for each county on a 789
1175	1175	monthly basis: 790
1176	1176	(a) Total number of policies in force at the end of each 791
1177	1177	month. 792
1178	1178	(b) Total number of policies canceled. 793
1179	1179	(c) Total number of policies nonrenewed. 794
1180	1180	(d) Number of policies canceled due to hurricane risk. 795
1181	1181	(e) Number of policies nonrenewed due to hurricane risk. 796
1182	1182	(f) Number of new policies written. 797
1183	1183	(g) Total dollar value of structure exposure under 798
1184	1184	policies that include wind coverage. 799
1185	1185	(h) Number of policies that exclude wind coverage. 800
1186	1186
1187	1187	HB 11D 2022D
1188	1188
1189	1189
1190	1190
1191	1191	CODING: Words stricken are deletions; words underlined are additions.
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1194	1194	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
1195	1195
1196	1196
1197	1197
1198	1198	Section 21. Effective June 1, 2023, for the purpose of 801
1199	1199	incorporating the amendment made by this act to section 215.555, 802
1200	1200	Florida Statutes, in a reference thereto, paragraph (v) of 803
1201	1201	subsection (6) of section 627.351, Florida Statutes, is 804
1202	1202	reenacted to read: 805
1203	1203	627.351 Insurance risk apportionment plans. — 806
1204	1204	(6) CITIZENS PROPERTY INSUR ANCE CORPORATION.— 807
1205	1205	(v)1. Effective July 1, 2002, policies of the Residential 808
1206	1206	Property and Casualty Joint Underwriting Association become 809
1207	1207	policies of the corporation. All obligations, rights, assets and 810
1208	1208	liabilities of the association, including bonds, not e and debt 811
1209	1209	obligations, and the financing documents pertaining to them 812
1210	1210	become those of the corporation as of July 1, 2002. The 813
1211	1211	corporation is not required to issue endorsements or 814
1212	1212	certificates of assumption to insureds during the remaining term 815
1213	1213	of in-force transferred policies. 816
1214	1214	2. Effective July 1, 2002, policies of the Florida 817
1215	1215	Windstorm Underwriting Association are transferred to the 818
1216	1216	corporation and become policies of the corporation. All 819
1217	1217	obligations, rights, assets, and liabilities of the association, 820
1218	1218	including bonds, note and debt obligations, and the financing 821
1219	1219	documents pertaining to them are transferred to and assumed by 822
1220	1220	the corporation on July 1, 2002. The corporation is not required 823
1221	1221	to issue endorsements or certificates of assumption to insureds 824
1222	1222	during the remaining term of in -force transferred policies. 825
1223	1223
1224	1224	HB 11D 2022D
1225	1225
1226	1226
1227	1227
1228	1228	CODING: Words stricken are deletions; words underlined are additions.
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1230	1230	Page 34 of 39
1231	1231	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
1232	1232
1233	1233
1234	1234
1235	1235	3. The Florida Windstorm Underwriting Association and the 826
1236	1236	Residential Property and Casualty Joint Underwriting Association 827
1237	1237	shall take all actions necessary to further evidence the 828
1238	1238	transfers and provide the documents and instruments of further 829
1239	1239	assurance as may reasonably be requested by the corporation for 830
1240	1240	that purpose. The corporation shall execute assumptions and 831
1241	1241	instruments as the trustees or other parties to the financing 832
1242	1242	documents of the Flor ida Windstorm Underwriting Association or 833
1243	1243	the Residential Property and Casualty Joint Underwriting 834
1244	1244	Association may reasonably request to further evidence the 835
1245	1245	transfers and assumptions, which transfers and assumptions, 836
1246	1246	however, are effective on the date pro vided under this paragraph 837
1247	1247	whether or not, and regardless of the date on which, the 838
1248	1248	assumptions or instruments are executed by the corporation. 839
1249	1249	Subject to the relevant financing documents pertaining to their 840
1250	1250	outstanding bonds, notes, indebtedness, or other financing 841
1251	1251	obligations, the moneys, investments, receivables, choses in 842
1252	1252	action, and other intangibles of the Florida Windstorm 843
1253	1253	Underwriting Association shall be credited to the coastal 844
1254	1254	account of the corporation, and those of the personal lines 845
1255	1255	residential coverage account and the commercial lines 846
1256	1256	residential coverage account of the Residential Property and 847
1257	1257	Casualty Joint Underwriting Association shall be credited to the 848
1258	1258	personal lines account and the commercial lines account, 849
1259	1259	respectively, of the corporati on. 850
1260	1260
1261	1261	HB 11D 2022D
1262	1262
1263	1263
1264	1264
1265	1265	CODING: Words stricken are deletions; words underlined are additions.
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1268	1268	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
1269	1269
1270	1270
1271	1271
1272	1272	4. Effective July 1, 2002, a new applicant for property 851
1273	1273	insurance coverage who would otherwise have been eligible for 852
1274	1274	coverage in the Florida Windstorm Underwriting Association is 853
1275	1275	eligible for coverage from the corporation as provided in this 854
1276	1276	subsection. 855
1277	1277	5. The transfer of all policies, obligations, rights, 856
1278	1278	assets, and liabilities from the Florida Windstorm Underwriting 857
1279	1279	Association to the corporation and the renaming of the 858
1280	1280	Residential Property and Casualty Joint Underwriting Association 859
1281	1281	as the corporation does not affect the coverage with respect to 860
1282	1282	covered policies as defined in s. 215.555(2)(c) provided to 861
1283	1283	these entities by the Florida Hurricane Catastrophe Fund. The 862
1284	1284	coverage provided by the fund to the Florida Windstorm 863
1285	1285	Underwriting Association b ased on its exposures as of June 30, 864
1286	1286	2002, and each June 30 thereafter shall be redesignated as 865
1287	1287	coverage for the coastal account of the corporation. 866
1288	1288	Notwithstanding any other provision of law, the coverage 867
1289	1289	provided by the fund to the Residential Property a nd Casualty 868
1290	1290	Joint Underwriting Association based on its exposures as of June 869
1291	1291	30, 2002, and each June 30 thereafter shall be transferred to 870
1292	1292	the personal lines account and the commercial lines account of 871
1293	1293	the corporation. Notwithstanding any other provision o f law, the 872
1294	1294	coastal account shall be treated, for all Florida Hurricane 873
1295	1295	Catastrophe Fund purposes, as if it were a separate 874
1296	1296	participating insurer with its own exposures, reimbursement 875
1297	1297
1298	1298	HB 11D 2022D
1299	1299
1300	1300
1301	1301
1302	1302	CODING: Words stricken are deletions; words underlined are additions.
1303	1303	hb0011d-00
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1305	1305	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
1306	1306
1307	1307
1308	1308
1309	1309	premium, and loss reimbursement. Likewise, the personal lines 876
1310	1310	and commercial lines accounts shall be viewed together, for all 877
1311	1311	fund purposes, as if the two accounts were one and represent a 878
1312	1312	single, separate participating insurer with its own exposures, 879
1313	1313	reimbursement premium, and loss reimbursement. The coverage 880
1314	1314	provided by the fund to the corporation shall constitute and 881
1315	1315	operate as a full transfer of coverage from the Florida 882
1316	1316	Windstorm Underwriting Association and Residential Property and 883
1317	1317	Casualty Joint Underwriting Association to the corporation. 884
1318	1318	Section 22. For the purpose of incorporating the amendment 885
1319	1319	made by this act to section 626.221, Florida Statutes, in a 886
1320	1320	reference thereto, paragraph (b) of subsection (1) of section 887
1321	1321	626.8734, Florida Statutes, is reenacted to read: 888
1322	1322	626.8734 Nonresident all -lines adjuster license 889
1323	1323	qualifications.— 890
1324	1324	(1) The department shall issue a license to an applicant 891
1325	1325	for a nonresident all -lines adjuster license upon determining 892
1326	1326	that the applicant has paid the applicable license fees required 893
1327	1327	under s. 624.501 and: 894
1328	1328	(b) Has passed to the satisfacti on of the department a 895
1329	1329	written Florida all-lines adjuster examination of the scope 896
1330	1330	prescribed in s. 626.241(6); however, the requirement for the 897
1331	1331	examination does not apply to: 898
1332	1332	1. An applicant who is licensed as an all -lines adjuster 899
1333	1333	in his or her home st ate if that state has entered into a 900
1334	1334
1335	1335	HB 11D 2022D
1336	1336
1337	1337
1338	1338
1339	1339	CODING: Words stricken are deletions; words underlined are additions.
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1342	1342	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
1343	1343
1344	1344
1345	1345
1346	1346	reciprocal agreement with the department; 901
1347	1347	2. An applicant who is licensed as a nonresident all -lines 902
1348	1348	adjuster in a state other than his or her home state and a 903
1349	1349	reciprocal agreement with the appropriate official of the state 904
1350	1350	of licensure has been entered into with the department; or 905
1351	1351	3. An applicant who holds a certification set forth in s. 906
1352	1352	626.221(2)(j). 907
1353	1353	Section 23. For the purpose of incorporating the amendment 908
1354	1354	made by this act to section 626.856, Florida Statute s, in a 909
1355	1355	reference thereto, paragraph (e) of subsection (1) of section 910
1356	1356	626.865, Florida Statutes, as amended by CS/CS/CS HB 959, 2022 911
1357	1357	Regular Session, is reenacted to read: 912
1358	1358	626.865 Public adjuster's qualifications, bond. — 913
1359	1359	(1) The department shall issue a license to an applicant 914
1360	1360	for a public adjuster's license upon determining that the 915
1361	1361	applicant has paid the applicable fees specified in s. 624.501 916
1362	1362	and possesses the following qualifications: 917
1363	1363	(e) Has been licensed and appointed in this state as a 918
1364	1364	nonresident public adjuster on a continual basis for the 919
1365	1365	previous 6 months, or has been licensed as an all -lines 920
1366	1366	adjuster, and has been appointed on a continual basis for the 921
1367	1367	previous 6 months as a public adjuster apprentice under s. 922
1368	1368	626.8561, as an independent ad juster under s. 626.855, or as a 923
1369	1369	company employee adjuster under s. 626.856. 924
1370	1370	Section 24. Effective upon this act becoming a law, for 925
1371	1371
1372	1372	HB 11D 2022D
1373	1373
1374	1374
1375	1375
1376	1376	CODING: Words stricken are deletions; words underlined are additions.
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1378	1378	Page 38 of 39
1379	1379	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
1380	1380
1381	1381
1382	1382
1383	1383	the purpose of incorporating the amendment made by this act to 926
1384	1384	section 627.7152, Florida Statutes, in references theret o, 927
1385	1385	subsection (1) and paragraph (d) of subsection (2) of section 928
1386	1386	627.7153, Florida Statutes, are reenacted to read: 929
1387	1387	627.7153 Policies restricting assignment of post -loss 930
1388	1388	benefits under a property insurance policy. — 931
1389	1389	(1) As used in this section, the term "assignment 932
1390	1390	agreement" has the same meaning as provided in s. 627.7152. 933
1391	1391	(2) An insurer may make available a policy that restricts 934
1392	1392	in whole or in part an insured's right to execute an assignment 935
1393	1393	agreement only if all of the following conditions are met: 936
1394	1394	(d) Each restricted policy include on its face the 937
1395	1395	following notice in 18 -point uppercase and boldfaced type: 938
1396	1396	939
1397	1397	THIS POLICY DOES NOT ALLOW THE UNRESTRICTED ASSIGNMENT 940
1398	1398	OF POST-LOSS INSURANCE BENEFITS. BY SELECTING THIS 941
1399	1399	POLICY, YOU WAIVE YOUR RIGHT TO FREEL Y ASSIGN OR 942
1400	1400	TRANSFER THE POST-LOSS PROPERTY INSURANCE BENEFITS 943
1401	1401	AVAILABLE UNDER THIS POLICY TO A THIRD PARTY OR TO 944
1402	1402	OTHERWISE FREELY ENTER INTO AN ASSIGNMENT AGREEMENT AS 945
1403	1403	THE TERM IS DEFINED IN SECTION 627.7152 OF THE FLORIDA 946
1404	1404	STATUTES. 947
1405	1405	Section 25. Except as otherwise expressly provided in this 948
1406	1406	act and except for this section, which shall take effect upon 949
1407	1407	this act becoming a law, this act shall take effect July 1, 950
1408	1408
1409	1409	HB 11D 2022D
1410	1410
1411	1411
1412	1412
1413	1413	CODING: Words stricken are deletions; words underlined are additions.
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1416	1416	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
1417	1417
1418	1418
1419	1419
1420	1420	2022. 951