Florida Senate Bill S0002 Introduced / Bill

 Florida Senate - 2022 SB 2-D  By Senator Boyd 21-00011-22D 20222D__ 1 A bill to be entitled 2 An act relating to property insurance; creating s. 3 215.5551, F.S.; creating the Reinsurance to Assist 4 Policyholders program to be administered by the State 5 Board of Administration; defining terms; requiring 6 certain property insurers to obtain coverage under the 7 program; requiring the board to provide reimbursement 8 to property insurers under the program; requiring the 9 board and property insurers to enter into contracts to 10 provide certain insurance reimbursement; providing 11 requirements for the contracts; providing 12 construction; providing calculations for specified 13 amounts of losses to determine reimbursement under the 14 program; authorizing the board to inspect, examine, 15 and verify insurer records; providing insurer 16 eligibility qualifications for the program; providing 17 for disqualification; requiring certain insurers to 18 notify the board under a specified circumstance; 19 prohibiting premiums from being charged for 20 participation in the program; providing that the 21 program does not affect the claims-paying capacity of 22 the Florida Hurricane Catastrophe Fund; requiring the 23 program to pay reimbursements directly to the 24 applicable state guaranty fund in the event of 25 insolvency; specifying requirements for the Florida 26 Hurricane Catastrophe Fund if an insurer or the 27 Citizens Property Insurance Corporation accept 28 assignments of unsound insurers; providing that 29 certain violations are violations of the insurance 30 code; authorizing the board to enforce certain 31 requirements; authorizing the board to adopt rules; 32 providing legislative intent; requiring the board to 33 submit a written notice within a certain timeframe to 34 the Executive Office of the Governor relating to the 35 program funds, under certain circumstances; providing 36 a requirement for the notice and subsequent requests; 37 requiring the Executive Office of the Governor to 38 instruct the Chief Financial Officer to draw a warrant 39 for a transfer to the board for the program under 40 certain circumstances and to provide notification to 41 specified persons within a certain timeframe; 42 prohibiting cumulative transfers from exceeding a 43 specified amount; providing reporting requirements; 44 providing for expiration and transfer of unencumbered 45 funds; requiring certain property insurers to reduce 46 rates to reflect certain cost savings through rate 47 filings by a specified date; prohibiting such insurers 48 from making other rate changes; requiring the Office 49 of Insurance Regulation to expedite the review of 50 certain filings; amending s. 215.5586, F.S.; adding a 51 requirement for hurricane mitigation inspection 52 applications; revising homeowner eligibility criteria 53 for mitigation grants; specifying matching 54 requirements for grants; revising reporting 55 requirements; providing an appropriation; requiring 56 the Department of Financial Services to submit budget 57 amendments; specifying requirements for budget 58 amendments; providing for reversion and appropriation 59 of any unexpended balance; providing for expiration; 60 amending s. 489.147, F.S.; revising the definition of 61 the term prohibited advertisement; creating s. 62 624.1551, F.S.; requiring claimants to establish that 63 property insurers have breached the insurance contract 64 to prevail in certain claims for damages; amending s. 65 624.307, F.S.; requiring the office to publish certain 66 information on its website; amending s. 624.313, F.S.; 67 requiring the office to print and make a specified 68 report available by a specified date annually; 69 revising the information the office must include in 70 such report; amending s. 624.315, F.S.; revising the 71 information the office must include in certain 72 reports; amending s. 624.424, F.S.; requiring the 73 Office of Insurance Regulation to aggregate on a 74 statewide basis and make publicly available certain 75 data submitted by insurers and insurer groups; 76 specifying requirements for publishing such data; 77 providing that such information is not a trade secret 78 and is not subject to a certain public records 79 exemption; amending s. 626.9373, F.S.; revising 80 conditions for the award of reasonable attorney fees 81 to apply to all suits brought under residential or 82 commercial property insurance policies, rather than 83 those not brought by assignees; limiting the transfer, 84 assignment, or acquisition of rights to attorney fees 85 in certain property insurance suits; amending s. 86 627.428, F.S.; revising conditions for the award of 87 reasonable attorney fees to apply to all suits brought 88 under residential or commercial property insurance 89 policies, rather than those not brought by assignees; 90 limiting the transfer, assignment, or acquisition of 91 rights to attorney fees in certain property insurance 92 suits; amending s. 627.701, F.S.; revising a 93 prohibition against the issuance of insurance policies 94 containing certain deductible provisions; revising the 95 conditions a personal lines residential property 96 insurance policy covering certain risks must meet 97 under certain circumstances; requiring personal lines 98 residential property insurance policies containing 99 separate roof deductibles to include specified 100 information; authorizing property insurers to include 101 separate roof deductibles if certain requirements are 102 met; providing requirements for policyholders in 103 rejecting such deductibles under certain 104 circumstances; requiring the office to expedite the 105 review of filing of certain forms; authorizing the 106 commission to adopt certain model forms or guidelines; 107 requiring the office to review certain filings within 108 a specified timeframe; providing that roof deductible 109 portions of the filing are not subject to a specified 110 extension for review; amending s. 627.7011, F.S.; 111 authorizing property insurers to limit certain roof 112 claim payments under certain circumstances; defining 113 the term authorized inspector; prohibiting insurers 114 from refusing to issue or renew homeowners policies 115 insuring certain structures; requiring insurers to 116 allow homeowners to have roof inspections performed 117 before requiring roof replacement; providing 118 applicability; amending s. 627.70131, F.S.; requiring 119 insurers to conduct physical inspections for certain 120 claims within a specified timeframe; requiring 121 property insurers to notify and provide certain 122 detailed estimates to policyholders; providing 123 construction; requiring property insurers to provide 124 reasonable explanations related to claims under 125 certain circumstances; amending s. 627.70152, F.S.; 126 making a technical change; authorizing property 127 insurers to be awarded attorney fees in certain suit 128 dismissals; providing that a strong presumption is 129 created that a lodestar fee is sufficient and 130 reasonable; providing that such presumption may be 131 rebutted only under certain circumstances; amending s. 132 627.7142, F.S.; conforming a cross-reference; amending 133 s. 627.7152, F.S.; revising the definition of the term 134 assignment agreement; deleting the definitions of 135 the terms disputed amount and judgment obtained; 136 revising a requirement for assignment agreements; 137 revising the requirement for assignees to indemnify 138 and hold harmless assignors; specifying a timeframe 139 during which and the addresses to which a notice of 140 intent must be served; deleting certain limitations on 141 the recovery and award of attorney fees in suits 142 related to assignment agreements; creating s. 143 627.7154, F.S.; creating an insurer stability unit 144 within the office for a specified purpose; specifying 145 the duties of the unit; requiring the unit to provide 146 a specified report biannually; specifying requirements 147 for such report; specifying events that trigger 148 referrals to the unit; requiring the units 149 supervisors to review such referrals for a certain 150 determination; requiring unit expenses be paid from a 151 specified fund; requiring costs of examinations to be 152 paid by examined persons in a specified circumstance; 153 amending s. 631.031, F.S.; requiring notifications by 154 the office to the department of grounds for 155 delinquency proceedings to include an affidavit; 156 specifying contents of such affidavit; amending s. 157 631.398, F.S.; specifying duties of the department for 158 insurer insolvency proceedings; providing for 159 construction of the act in pari materia with laws 160 enacted during the 2022 Regular Session of the 161 Legislature; providing effective dates. 162 163 Be It Enacted by the Legislature of the State of Florida: 164 165 Section 1.Section 215.5551, Florida Statutes, is created 166 to read: 167 215.5551Reinsurance to Assist Policyholders program. 168 (1)CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS 169 PROGRAM.There is created the Reinsurance to Assist 170 Policyholders program to be administered by the State Board of 171 Administration. 172 (2)DEFINITIONS.As used in this section, the term: 173 (a)Board means the State Board of Administration. 174 (b)Contract year means the period beginning on June 1 of 175 a specified calendar year and ending on May 31 of the following 176 calendar year. 177 (c)Covered event means any one storm declared to be a 178 hurricane by the National Hurricane Center, which storm causes 179 insured losses in this state. 180 (d)Covered policy has the same meaning as in s. 181 215.555(2)(c). 182 (e)FHCF means the Florida Hurricane Catastrophe Fund 183 created under s. 215.555. 184 (f)Losses has the same meaning as in s. 215.555(2)(d). 185 (g)RAP means the Reinsurance to Assist Policyholders 186 program created by this section. 187 (h)RAP insurer means an insurer that is a participating 188 insurer in the FHCF on June 1, 2022, which must obtain coverage 189 under the RAP program and qualifies under subsection (5). 190 However, any joint underwriting association, risk apportionment 191 plan, or other entity created under s. 627.351 is not considered 192 a RAP insurer and is prohibited from obtaining coverage under 193 the RAP program. 194 (i)RAP limit means, for the 2022-2023 contract year, the 195 RAP insurers maximum payout, which is its share of the $2 196 billion RAP layer aggregate limit. For the 2023-2024 contract 197 year, for RAP insurers that are subject to participation 198 deferral under subsection (6) and participate during the 2023 199 2024 contract year, the RAP limit means the RAP insurers 200 maximum payout, which is its share of the total amount of the 201 RAP program layer aggregate limit deferred from 2022-2023. 202 (j)RAP qualification ratio means: 203 1.For the 2022-2023 contract year, the ratio of FHCF 204 mandatory premium adjusted to 90 percent for RAP insurers 205 divided by the FHCF mandatory premium adjusted to 90 percent for 206 all insurers. The preliminary RAP qualification ratio shall be 207 based on the 2021-2022 contract years company premiums, as of 208 December 31, 2021, adjusted to 90 percent based on the 2022-2023 209 contract year coverage selections. The RAP qualification ratio 210 shall be based on the reported 2022-2023 contract year company 211 premiums, as of December 31, 2022, adjusted to 90 percent. 212 2.For the 2023-2024 contract year, the ratio of FHCF 213 mandatory premium adjusted to 90 percent for the qualified RAP 214 insurers that have deferred RAP coverage to 2023-2024 divided by 215 the FHCF mandatory premium adjusted to 90 percent for all 216 insurers. The preliminary RAP qualification ratio shall be based 217 on the 2022-2023 contract years company premiums as of December 218 31, 2022, adjusted to 90 percent based on the 2023-2024 contract 219 year coverage selections. The RAP qualification ratio shall be 220 based on the reported 2023-2024 contract year company premiums 221 as of December 31, 2023, adjusted to 90 percent. 222 (k)RAP reimbursement contract means the reimbursement 223 contract reflecting the obligations of the RAP program to 224 insurers. 225 (l)RAP retention means the amount of losses below which 226 a RAP insurer is not entitled to reimbursement under the RAP 227 program. 228 (m)Unsound insurer means a RAP insurer determined by the 229 Office of Insurance Regulation to be in unsound condition as 230 defined in s. 624.80(2) or a RAP insurer placed in receivership 231 under chapter 631. 232 (3)COVERAGE. 233 (a)As a condition of doing business in this state, each 234 RAP insurer shall obtain coverage under the RAP program. 235 (b)The board shall provide a reimbursement layer of $2 236 billion below the FHCF retention prior to the third event 237 dropdown of the FHCF retention set forth in s. 215.555(2)(e). 238 Subject to the mandatory notice provisions in subsection (5), 239 the board shall enter into a RAP reimbursement contract with 240 each eligible RAP insurer writing covered policies in this state 241 to provide to the insurer the reimbursement described in this 242 section. 243 (4)RAP REIMBURSEMENT CONTRACTS. 244 (a)1.The board shall issue a RAP reimbursement contract to 245 each eligible RAP insurer which is effective: 246 a.June 1, 2022, for RAP insurers that participate in the 247 RAP program during the 2022-2023 contract year; or 248 b.June 1, 2023, for RAP insurers that are subject to 249 participation deferral under subsection (6) and participate in 250 the RAP program during the 2023-2024 contract year. 251 2.The reimbursement contract shall be executed no later 252 than: 253 a.July 15, 2022, for RAP insurers that participate in the 254 RAP program during the 2022-2023 contract year; or 255 b.March 1, 2023, for RAP insurers that are subject to 256 participation deferral under subsection (6) and participate in 257 the RAP program during the 2023-2024 contract year. 258 3.If a RAP insurer fails to execute the RAP reimbursement 259 contract by the dates required in this paragraph, the RAP 260 insurance contract is deemed to have been executed by the RAP 261 insurer. 262 (b)For the two covered events with the largest losses, the 263 RAP reimbursement contract must contain a promise by the board 264 to reimburse the RAP insurer for 90 percent of its losses from 265 each covered event in excess of the insurers RAP retention, 266 plus 10 percent of the reimbursed losses to cover loss 267 adjustment expenses. The sum of the losses and 10 percent loss 268 adjustment expense allocation from the RAP layer may not exceed 269 the RAP limit. Recoveries on losses in the FHCF mandatory layer 270 shall inure to the benefit of the RAP contract layer. 271 (c)The RAP reimbursement contract must provide that 272 reimbursement amounts are not reduced by reinsurance paid or 273 payable to the insurer from other sources excluding the FHCF. 274 (d)The board shall calculate and report to each RAP 275 insurer the RAP payout multiples as the ratio of the RAP 276 industry limit of $2 billion for the 2022-2023 contract year, or 277 the deferred limit for the 2022-2023 contract year, to the 278 mandatory FHCF retention multiplied by the mandatory FHCF 279 retention multiples divided by the RAP qualification ratio. The 280 RAP payout multiple for an insurer is multiplied by the RAP 281 insurers FHCF premium to calculate its RAP maximum payout. RAP 282 payout multiples are calculated for 45 percent, 75 percent, and 283 90 percent FHCF mandatory coverage selections. 284 (e)A RAP insurers RAP retention is calculated as follows: 285 1.The board shall calculate and report to each RAP insurer 286 the RAP retention multiples for each FHCF coverage selection as 287 the FHCF retention multiple minus the RAP payout multiple. The 288 RAP retention multiple for an insurer is multiplied by the RAP 289 insurers FHCF premium to calculate its RAP retention. RAP 290 retention multiples are calculated for 45 percent, 75 percent, 291 and 90 percent FHCF mandatory coverage selections. 292 2.The RAP industry retention for the 2022-2023 contract 293 year is the FHCFs industry retention minus $2 billion, prior to 294 allocation to qualifying RAP insurers. The RAP industry 295 retention for the 2023-2024 contract year is the FHCFs industry 296 retention for the 2023-2024 contract year minus the total 297 deferred RAP limit, prior to allocation to qualifying RAP 298 insurers. 299 3.A RAP insurer determines its actual RAP retention by 300 multiplying its actual mandatory reimbursement FHCF premium by 301 the RAP retention multiple. 302 (f)To ensure that insurers have properly reported the 303 losses for which RAP reimbursements have been made, the board 304 may inspect, examine, and verify the records of each RAP 305 insurers covered policies at such times as the board deems 306 appropriate for the specific purpose of validating the accuracy 307 of losses required to be reported under the terms and conditions 308 of the RAP reimbursement contract. 309 (5)INSURER QUALIFICATION. 310 (a)An insurer is not eligible to participate in the RAP 311 program if the board receives a notice from the Commissioner of 312 Insurance Regulation which certifies that the insurer is in an 313 unsound financial condition no later than: 314 1.June 15, 2022, for RAP insurers that participate during 315 the 2022-2023 contract year; or 316 2.February 1, 2023, for RAP insurers subject to 317 participation deferral under subsection (6) and participate 318 during the 2023-2024 contract year. 319 (b)The office must make this determination based on the 320 following factors: 321 1.The insurers compliance with the requirements to 322 qualify for and hold a certificate of authority under s. 323 624.404; 324 2.The insurers compliance with the applicable surplus 325 requirements of s. 624.408; 326 3.The insurers compliance with the applicable risk-based 327 capital requirements under s. 624.4085; 328 4.The insurers compliance with the applicable premium to 329 surplus requirements under s. 624.4095; and 330 5.An analysis of quarterly and annual statements, 331 including an actuarial opinion summary, and other information 332 submitted to the office pursuant to s. 624.424. 333 (c)If the board receives timely notice pursuant to 334 paragraph (a) regarding an insurer, such insurer is disqualified 335 from participating in the RAP program. 336 (6)PARTICIPATION DEFERRAL. 337 (a)A RAP insurer that has any private reinsurance within 338 the RAP layer of coverage for the 2022-2023 contract year shall 339 notify the board in writing of such coverage no later than June 340 30, 2022. Participation in the RAP program for such RAP insurers 341 shall be deferred until the 2023-2024 contract year. 342 (b)A new participating insurer that begins writing covered 343 policies in this state after June 1, 2022, is deemed to defer 344 its RAP coverage to the 2023-2024 contract year. 345 (7)RAP PREMIUMS.Premiums may not be charged for 346 participation in the RAP program. 347 (8)CLAIMS-PAYING CAPACITY.The RAP program shall not 348 affect the claims-paying capacity of the FHCF as provided in s. 349 215.555(4)(c)1. 350 (9)INSOLVENCY OF RAP INSURER. 351 (a)The RAP reimbursement contract shall provide that in 352 the event of an insolvency of a RAP insurer, the RAP program 353 shall pay reimbursements directly to the applicable state 354 guaranty fund for the benefit of policyholders in this state of 355 the RAP insurer. 356 (b)If an authorized insurer or the Citizens Property 357 Insurance Corporation accepts an assignment of an unsound RAP 358 insurers RAP contract, the FHCF shall apply the unsound RAP 359 insurers RAP contract to such policies and treat the authorized 360 insurer or the Citizens Property Insurance Corporation as if it 361 were the unsound RAP insurer for the remaining term of the RAP 362 contract, with all rights and duties of the unsound RAP insurer 363 beginning on the date it provides coverage for such policies. 364 (10)VIOLATIONS.Any violation of this section or of rules 365 adopted under this section constitutes a violation of the 366 insurance code. 367 (11)LEGAL PROCEEDINGS.The board is authorized to take any 368 action necessary to enforce the rules, provisions, and 369 requirements of the RAP reimbursement contract, required by and 370 adopted pursuant to this section. 371 (12)RULEMAKING.The board may adopt such rules as are 372 reasonable and necessary to implement this section, and it is 373 the intent of the Legislature that all rules adopted to 374 implement this section will be done as emergency rules pursuant 375 to s. 120.54(4). 376 (13)APPROPRIATION. 377 (a)Within 60 days after a covered event, the board shall 378 submit written notice to the Executive Office of the Governor if 379 the board determines that funds from the RAP program coverage 380 established by this section will be necessary to reimburse RAP 381 insurers for losses associated with the covered event. The 382 initial notice, and any subsequent requests, must specify the 383 amount necessary to provide RAP reimbursements. Upon receiving 384 such notice, the Executive Office of the Governor shall instruct 385 the Chief Financial Officer to draw a warrant from the General 386 Revenue Fund for a transfer to the board for the RAP program in 387 the amount requested. The Executive Office of the Governor shall 388 provide written notification to the chair and vice chair of the 389 Legislative Budget Commission at least 3 days before the 390 effective date of the warrant. Cumulative transfers authorized 391 under this paragraph may not exceed $2 billion. 392 (b)If General Revenue Funds are transferred to the board 393 for the RAP program under paragraph (a), the board shall submit 394 written notice to the Executive Office of the Governor that 395 funds will be necessary for the administration of the RAP 396 program and post-event examinations for covered events that 397 require RAP coverage. The initial notice, and any subsequent 398 requests, must specify the amount necessary for administration 399 of the RAP program and post-event examinations. Upon receiving 400 such notice, the Executive Office of the Governor shall instruct 401 the Chief Financial Officer to draw a warrant from the General 402 Revenue Fund for a transfer to the board for the RAP program in 403 the amount requested. The Executive Office of the Governor shall 404 provide written notification to the chair and vice chair of the 405 Legislative Budget Commission at least 3 days before the 406 effective date of the warrant. Cumulative transfers authorized 407 under this paragraph may not exceed $5 million. 408 (c)No later than January 31, 2023, and quarterly 409 thereafter, the board shall submit a report to the Executive 410 Office of the Governor, the President of the Senate, and the 411 Speaker of the House of Representatives detailing any 412 reimbursements of the RAP program, all loss development 413 projections, the amount of RAP reimbursement coverage deferred 414 until the 2023-2024 contract year, and detailed information 415 about administrative and post-event examination expenditures. 416 (14)EXPIRATION DATE.If no General Revenue Funds have been 417 transferred to the board for the RAP program under subsection 418 (13) by June 30, 2025, this section expires on July 1, 2025. If 419 General Revenue Funds have been transferred to the board for the 420 RAP program under subsection (13) by June 30, 2025, this section 421 expires on July 1, 2029, and all unencumbered RAP program funds 422 shall be transferred by the board back to the General Revenue 423 Fund unallocated. 424 Section 2.(1)No later than June 30, 2022, each insurer 425 that participates during the 2022-2023 contract year in the 426 Reinsurance to Assist Policyholders program under s. 215.5551, 427 Florida Statutes, shall reduce its rates to reflect the cost 428 savings realized by participating in the program through a rate 429 filing with the Office of Insurance Regulation or by amending a 430 pending rate filing. The insurer shall make no other changes to 431 its rates in the filing. 432 (2)No later than May 1, 2023, each insurer that defers 433 participation in the Reinsurance to Assist Policyholders program 434 until the 2023-2024 year under s. 215.5551, Florida Statutes, 435 shall reduce its rates to reflect the cost savings realized by 436 participating in the program through a rate filing with the 437 Office of Insurance Regulation or by amending a pending rate 438 filing. The insurer shall make no other changes to its rates in 439 the filing. 440 (3)The Office of Insurance Regulation shall expedite the 441 review of the filings made under this section. 442 Section 3.Effective July 1, 2022, paragraph (d) of 443 subsection (1), paragraphs (a) and (b) of subsection (2), and 444 subsection (10) of section 215.5586, Florida Statutes, are 445 amended to read: 446 215.5586My Safe Florida Home Program.There is established 447 within the Department of Financial Services the My Safe Florida 448 Home Program. The department shall provide fiscal 449 accountability, contract management, and strategic leadership 450 for the program, consistent with this section. This section does 451 not create an entitlement for property owners or obligate the 452 state in any way to fund the inspection or retrofitting of 453 residential property in this state. Implementation of this 454 program is subject to annual legislative appropriations. It is 455 the intent of the Legislature that the My Safe Florida Home 456 Program provide trained and certified inspectors to perform 457 inspections for owners of site-built, single-family, residential 458 properties and grants to eligible applicants as funding allows. 459 The program shall develop and implement a comprehensive and 460 coordinated approach for hurricane damage mitigation that may 461 include the following: 462 (1)HURRICANE MITIGATION INSPECTIONS. 463 (d)An application for an inspection must contain: 464 1.A provision requiring the applicant to make his or her 465 home available for inspection once a mitigation project is 466 completed; and 467 2.A signed or electronically verified statement made under 468 penalty of perjury that the applicant has submitted only a 469 single application for that home. 470 (2)MITIGATION GRANTS.Financial grants shall be used to 471 encourage single-family, site-built, owner-occupied, residential 472 property owners to retrofit their properties to make them less 473 vulnerable to hurricane damage. 474 (a)For a homeowner to be eligible for a grant, the 475 following criteria must be met: 476 1.The homeowner must have been granted a homestead 477 exemption on the home under chapter 196. 478 2.The home must be a dwelling with an insured value of 479 $500,000 $300,000 or less. Homeowners who are low-income 480 persons, as defined in s. 420.0004(11), are exempt from this 481 requirement. 482 3.The home must have undergone an acceptable hurricane 483 mitigation inspection after July 1, 2008 May 1, 2007. 484 4.The home must be located in the wind-borne debris 485 region as that term is defined in the Florida Building Code s. 486 1609.2, International Building Code (2006), or as subsequently 487 amended. 488 5.The building permit application for initial construction 489 of the home must have been made before January 1, 2008 March 1, 490 2002. 491 492 An application for a grant must contain a signed or 493 electronically verified statement made under penalty of perjury 494 that the applicant has submitted only a single application and 495 must have attached documents demonstrating the applicant meets 496 the requirements of this paragraph. 497 (b)All grants must be matched on the basis of $1 provided 498 by the applicant for $2 provided by the state a dollar-for 499 dollar basis up to a maximum state contribution total of $10,000 500 toward for the actual cost of the mitigation project with the 501 states contribution not to exceed $5,000. 502 (10)REPORTS.The department shall make an annual report on 503 the activities of the program that shall account for the use of 504 state funds and indicate the number of inspections requested, 505 the number of inspections performed, the number of grant 506 applications received, and the number and value of grants 507 approved, and the average annual amount of insurance premium 508 discounts and total annual amount of insurance premium discounts 509 homeowners received from insurers as a result of mitigation 510 funded through the program. The report shall be delivered to the 511 President of the Senate and the Speaker of the House of 512 Representatives by February 1 of each year. 513 Section 4.(1)For the 2022-2023 fiscal year, the sum of 514 $150 million in nonrecurring funds is appropriated from the 515 General Revenue Fund to the Department of Financial Services for 516 the My Safe Florida Home Program. The funds shall be placed in 517 reserve. The department shall submit budget amendments 518 requesting release of the funds held in reserve pursuant to 519 chapter 216, Florida Statutes. The budget amendments shall 520 include a detailed spending plan. 521 (2)The funds shall be allocated as follows: 522 (a)Twenty-five million dollars for hurricane mitigation 523 inspections. 524 (b)One hundred fifteen million dollars for mitigation 525 grants. 526 (c)Four million dollars for education and consumer 527 awareness. 528 (d)One million dollars for public outreach for contractors 529 and real estate brokers and sales associates. 530 (e)Five million dollars for administrative costs. 531 (3)Any unexpended balance of funds from this appropriation 532 remaining on June 30, 2023, shall revert and is appropriated to 533 the Department of Financial Services for the 2023-2024 fiscal 534 year for the same purpose. 535 (4)This section shall expire October 1, 2024. 536 Section 5.Paragraph (a) of subsection (1) of section 537 489.147, Florida Statutes, is amended to read: 538 489.147Prohibited property insurance practices. 539 (1)As used in this section, the term: 540 (a)Prohibited advertisement means any written or 541 electronic communication by a contractor which that encourages, 542 instructs, or induces a consumer to contact a contractor or 543 public adjuster for the purpose of making an insurance claim for 544 roof damage, if such communication does not state in a font size 545 of at least 12 points and at least half as large as the largest 546 font size used in the communication that: 547 1.The consumer is responsible for payment of any insurance 548 deductible; 549 2.It is insurance fraud punishable as a felony of the 550 third degree for a contractor to knowingly or willfully, and 551 with intent to injure, defraud, or deceive, pay, waive, or 552 rebate all or part of an insurance deductible applicable to 553 payment to the contractor for repairs to a property covered by a 554 property insurance policy; and 555 3.It is insurance fraud punishable as a felony of the 556 third degree to intentionally file an insurance claim containing 557 any false, incomplete, or misleading information. 558 559 The term includes, but is not limited to, door hangers, business 560 cards, magnets, flyers, pamphlets, and e-mails. 561 Section 6.Section 624.1551, Florida Statutes, is created 562 to read: 563 624.1551Civil remedy actions against property insurers. 564 Notwithstanding any provision of s. 624.155, a claimant must 565 establish that the property insurer breached the insurance 566 contract to prevail in a claim for extracontractual damages 567 under s. 624.155(1)(b). 568 Section 7.Subsection (4) of section 624.307, Florida 569 Statutes, is amended to read: 570 624.307General powers; duties. 571 (4)The department and office may each collect, propose, 572 publish, and disseminate information relating to the subject 573 matter of any duties imposed upon it by law. 574 (a)Aggregate information may include information asserted 575 as trade secret information unless the trade secret information 576 can be individually extrapolated, in which case the trade secret 577 information remains protected as provided under s. 624.4213. 578 (b)The office shall publish all orders, data required by 579 ss. 624.313, 624.315, and 627.915, reports required by s. 580 627.7154(3), and all reports that are not confidential and 581 exempt on its website in a timely fashion. 582 Section 8.Subsection (1) of section 624.313, Florida 583 Statutes, is amended to read: 584 624.313Publications. 585 (1)As early as reasonably possible and no later than July 586 1 of each year, the office shall annually have printed and made 587 available a statistical report which must include all of the 588 following information on either a calendar year or fiscal year 589 basis: 590 (a)A summary of all information reported to the office 591 under s. 627.915(1). 592 (b)The total amount of premiums written and earned by line 593 of insurance. 594 (c)The total amount of losses paid and losses incurred by 595 line of insurance. 596 (d)The ratio of premiums written to losses paid by line of 597 insurance. 598 (e)The ratio of premiums earned to losses incurred by line 599 of insurance. 600 (f)The market share of the 10 largest insurers or insurer 601 groups by line of insurance and of each insurer or insurer group 602 that has a market share of at least 1 percent of a line of 603 insurance in this state. 604 (g)The profitability of each major line of insurance. 605 (h)An analysis of the impact of the insurance industry on 606 the economy of the state. 607 (i)A complaint ratio by line of insurance for the insurers 608 referred to in paragraph (f), based upon information provided to 609 the office by the department. The office shall determine the 610 most appropriate ratio or ratios for quantifying complaints. 611 (j)An analysis of such lines or kinds of insurance for 612 which the office determines that an availability problem exists 613 in this state, and an analysis of the availability of 614 reinsurance to domestic insurers selling homeowners and 615 condominium unit owners insurance in this state. 616 (k)A summary of the findings of market examinations 617 performed by the office under s. 624.3161 during the preceding 618 year. 619 (l)Such other information as the office deems relevant. 620 Section 9.Paragraph (c) of subsection (1) and paragraph 621 (n) of subsection (2) of section 624.315, Florida Statutes, is 622 amended to read: 623 624.315Department; annual report. 624 (1)As early as reasonably possible, the office, with such 625 assistance from the department as requested, shall annually 626 prepare a report to the Speaker and Minority Leader of the House 627 of Representatives, the President and Minority Leader of the 628 Senate, the chairs of the legislative committees with 629 jurisdiction over matters of insurance, and the Governor 630 showing, with respect to the preceding calendar year: 631 (c)Names of insurers against which delinquency or similar 632 proceedings were instituted, including the date that each 633 insurer was deemed impaired of capital or surplus, as the terms 634 impairment of capital and impairment of surplus are defined in 635 s. 631.011, or insolvent, as the term insolvency is defined in 636 s. 631.011; and a concise statement of the circumstances that 637 led to each insurers delinquency; a summary of the actions 638 taken by the insurer and the office to avoid delinquency; and 639 the results or status of each such proceeding. 640 (2)The office shall maintain the following information and 641 make such information available upon request: 642 (n)Trends; emerging trends as exemplified by the 643 percentage change in frequency and severity of both paid and 644 incurred claims, and pure premium (Florida and countrywide). 645 Reports relating to the health of the homeowners and 646 condominium unit owners insurance market must include the 647 percentage of policies written by voluntary carriers, the 648 percentage of policies written by the Citizens Property 649 Insurance Corporation, and any trends related to the relative 650 shares of the voluntary and residual markets. 651 Section 10.Subsection (10) of section 624.424, Florida 652 Statutes, is amended to read: 653 624.424Annual statement and other information. 654 (10)(a)Each insurer or insurer group doing business in 655 this state shall file on a quarterly basis in conjunction with 656 financial reports required by paragraph (1)(a) a supplemental 657 report on an individual and group basis on a form prescribed by 658 the commission with information on personal lines and commercial 659 lines residential property insurance policies in this state. The 660 supplemental report shall include separate information for 661 personal lines property policies and for commercial lines 662 property policies and totals for each item specified, including 663 premiums written for each of the property lines of business as 664 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 665 shall include the following information for each county on a 666 monthly basis: 667 1.(a)Total number of policies in force at the end of each 668 month. 669 2.(b)Total number of policies canceled. 670 3.(c)Total number of policies nonrenewed. 671 4.(d)Number of policies canceled due to hurricane risk. 672 5.(e)Number of policies nonrenewed due to hurricane risk. 673 6.(f)Number of new policies written. 674 7.(g)Total dollar value of structure exposure under 675 policies that include wind coverage. 676 8.(h)Number of policies that exclude wind coverage. 677 (b)The office shall aggregate on a statewide basis the 678 data submitted by each insurer or insurer group under paragraph 679 (a) and make such data publicly available by publishing such 680 data on the offices website within 1 month after each quarterly 681 and annual filing. Such information, when aggregated on a 682 statewide basis as to an individual insurer or insurer group, is 683 not a trade secret as defined in s. 688.002(4) or s. 812.081 and 684 is not subject to the public records exemption for trade secrets 685 provided in s. 119.0715. 686 Section 11.Section 626.9373, Florida Statutes, is amended 687 to read: 688 626.9373Attorney fees. 689 (1)Upon the rendition of a judgment or decree by any court 690 of this state against a surplus lines insurer in favor of any 691 named or omnibus insured or the named beneficiary under a policy 692 or contract executed by the insurer on or after the effective 693 date of this act, the trial court or, if the insured or 694 beneficiary prevails on appeal, the appellate court, shall 695 adjudge or decree against the insurer in favor of the insured or 696 beneficiary a reasonable sum as fees or compensation for the 697 insureds or beneficiarys attorney prosecuting the lawsuit for 698 which recovery is awarded. In a suit arising under a residential 699 or commercial property insurance policy not brought by an 700 assignee, the amount of reasonable attorney fees shall be 701 awarded only as provided in s. 57.105 or s. 627.70152, as 702 applicable. 703 (2)If awarded, attorney fees or compensation shall be 704 included in the judgment or decree rendered in the case. 705 (3)In a suit arising under a residential or commercial 706 property insurance policy, the right to attorney fees under this 707 section may not be transferred to, assigned to, or acquired in 708 any other manner by anyone other than a named or omnibus insured 709 or a named beneficiary. 710 Section 12.Section 627.428, Florida Statutes, is amended 711 to read: 712 627.428Attorney fees. 713 (1)Upon the rendition of a judgment or decree by any of 714 the courts of this state against an insurer and in favor of any 715 named or omnibus insured or the named beneficiary under a policy 716 or contract executed by the insurer, the trial court or, in the 717 event of an appeal in which the insured or beneficiary prevails, 718 the appellate court shall adjudge or decree against the insurer 719 and in favor of the insured or beneficiary a reasonable sum as 720 fees or compensation for the insureds or beneficiarys attorney 721 prosecuting the suit in which the recovery is had. In a suit 722 arising under a residential or commercial property insurance 723 policy not brought by an assignee, the amount of reasonable 724 attorney fees shall be awarded only as provided in s. 57.105 or 725 s. 627.70152, as applicable. 726 (2)As to suits based on claims arising under life 727 insurance policies or annuity contracts, no such attorney fees 728 shall be allowed if such suit was commenced prior to expiration 729 of 60 days after proof of the claim was duly filed with the 730 insurer. 731 (3)When so awarded, compensation or fees of the attorney 732 shall be included in the judgment or decree rendered in the 733 case. 734 (4)In a suit arising under a residential or commercial 735 property insurance policy, the right to attorney fees under this 736 section may not be transferred to, assigned to, or acquired in 737 any other manner by anyone other than a named or omnibus insured 738 or a named beneficiary. 739 Section 13.Paragraph (d) of subsection (4) of section 740 627.701, Florida Statutes, is amended, paragraph (c) of 741 subsection (2), paragraph (e) of subsection (4), and subsection 742 (10) are added to that section, and subsection (7) of that 743 section is republished, to read: 744 627.701Liability of insureds; coinsurance; deductibles. 745 (2)Unless the office determines that the deductible 746 provision is clear and unambiguous, a property insurer may not 747 issue an insurance policy or contract covering real property in 748 this state which contains a deductible provision that: 749 (c)Applies solely to a roof loss as provided in subsection 750 (10). 751 (4) 752 (d)1.A personal lines residential property insurance 753 policy covering a risk valued at less than $500,000 may not have 754 a hurricane deductible in excess of 10 percent of the policy 755 dwelling limits, unless the following conditions are met: 756 a.The policyholder must personally write or type and 757 provide to the insurer the following statement in his or her own 758 handwriting and sign his or her name, which must also be signed 759 by every other named insured on the policy, and dated: I do not 760 want the insurance on my home to pay for the first (specify 761 dollar value) of damage from hurricanes. I will pay those costs. 762 My insurance will not. 763 b.If the structure insured by the policy is subject to a 764 mortgage or lien, the policyholder must provide the insurer with 765 a written statement from the mortgageholder or lienholder 766 indicating that the mortgageholder or lienholder approves the 767 policyholder electing to have the specified deductible. 768 2.A deductible subject to the requirements of this 769 paragraph applies for the term of the policy and for each 770 renewal thereafter. Changes to the deductible percentage may be 771 implemented only as of the date of renewal. 772 3.An insurer shall keep the original copy of the signed 773 statement required by this paragraph, electronically or 774 otherwise, and provide a copy to the policyholder providing the 775 signed statement. A signed statement meeting the requirements of 776 this paragraph creates a presumption that there was an informed, 777 knowing election of coverage. 778 4.The commission shall adopt rules providing appropriate 779 alternative methods for providing the statements required by 780 this section for policyholders who have a handicapping or 781 disabling condition that prevents them from providing a 782 handwritten statement. 783 (e)1.A personal lines residential property insurance 784 policy that contains a separate roof deductible must include, on 785 the page immediately behind the declarations page, with no other 786 policy language on the page, in boldfaced type no smaller than 787 18 point, the following statement: YOU ARE ELECTING TO PURCHASE 788 COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR 789 ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT-OF 790 POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE 791 AGENT. 792 2.For any personal lines residential property insurance 793 policy containing a separate roof deductible, the insurer shall 794 compute and prominently display on the declarations page of the 795 policy or on the premium renewal notice the actual dollar value 796 of the roof deductible of the policy at issuance and renewal. 797 (7)Prior to issuing a personal lines residential property 798 insurance policy on or after April 1, 1997, or prior to the 799 first renewal of a residential property insurance policy on or 800 after April 1, 1997, the insurer must offer a deductible equal 801 to $500 applicable to losses from perils other than hurricane. 802 The insurer must provide the policyholder with notice of the 803 availability of the deductible specified in this subsection in a 804 form approved by the office at least once every 3 years. The 805 failure to provide such notice constitutes a violation of this 806 code but does not affect the coverage provided under the policy. 807 An insurer may require a higher deductible only as part of a 808 deductible program lawfully in effect on June 1, 1996, or as 809 part of a similar deductible program. 810 (10)(a)Notwithstanding any other provision of law, an 811 insurer issuing a personal lines residential property insurance 812 policy may include in such policy a separate roof deductible 813 that meets all of the following requirements: 814 1.The insurer has complied with the offer requirements 815 under subsection (7) regarding a deductible applicable to losses 816 from perils other than a hurricane. 817 2.The roof deductible may not exceed the lesser of 2 818 percent of the coverage A limit of the policy or 50 percent of 819 the cost to replace the roof. 820 3.The premium that a policyholder is charged for the 821 policy includes an actuarially sound credit or premium discount 822 for the roof deductible. 823 4.The roof deductible applies only to a claim adjusted on 824 a replacement cost basis. 825 5.The roof deductible does not apply to any of the 826 following events: 827 a.A total loss to a primary structure in accordance with 828 the valued policy law under s. 627.702 which is caused by a 829 covered peril. 830 b.A roof loss resulting from a hurricane as defined in s. 831 627.4025(2)(c). 832 c.A roof loss resulting from a tree fall or other hazard 833 that damages the roof and punctures the roof deck. 834 d.A roof loss requiring the repair of less than 50 percent 835 of the roof. 836 837 If a roof deductible is applied, no other deductible under the 838 policy may be applied to the loss. 839 (b)At the time of initial issuance of a personal lines 840 residential property insurance policy, an insurer may offer the 841 policyholder a separate roof deductible with the ability to opt 842 out and reject the separate roof deductible. To reject a 843 separate roof deductible, the policyholder shall sign a form 844 approved by the office. 845 (c)At the time of renewal, an insurer may add a separate 846 roof deductible to a personal lines residential property 847 insurance policy if the insurer provides a notice of change in 848 policy terms pursuant to s. 627.43141. The insurer must also 849 offer the policyholder the ability to opt-out and reject the 850 separate roof deductible. To reject a separate roof deductible, 851 the policyholder shall sign a form approved by the office. 852 (d)The office shall expedite the review of any filing of 853 insurance forms that only contain a separate roof deductible 854 pursuant to this subsection. The commission may adopt model 855 forms or guidelines that provide options for roof deductible 856 language which may be used for filing by insurers. If an insurer 857 makes a filing pursuant to a model form or guideline issued by 858 the office, the office must review the filing within the initial 859 30-day review period authorized by s. 627.410(2), and the roof 860 deductible portion of the filing is not subject to the 15-day 861 extension for review under that subsection. 862 Section 14.Present subsection (5) of section 627.7011, 863 Florida Statutes is redesignated as subsection (6), a new 864 subsection (5) is added to that subsection, and paragraph (a) of 865 subsection (3) of that section is amended, to read: 866 627.7011Homeowners policies; offer of replacement cost 867 coverage and law and ordinance coverage. 868 (3)In the event of a loss for which a dwelling or personal 869 property is insured on the basis of replacement costs: 870 (a)For a dwelling, the insurer must initially pay at least 871 the actual cash value of the insured loss, less any applicable 872 deductible. The insurer shall pay any remaining amounts 873 necessary to perform such repairs as work is performed and 874 expenses are incurred. However, if a roof deductible under s. 875 627.701(10) is applied to the insured loss, the insurer may 876 limit the claim payment as to the roof to the actual cash value 877 of the loss to the roof until the insurer receives reasonable 878 proof of payment by the policyholder of the roof deductible. 879 Reasonable proof of payment includes a canceled check, money 880 order receipt, credit card statement, or copy of an executed 881 installment plan contract or other financing arrangement that 882 requires full payment of the deductible over time. If a total 883 loss of a dwelling occurs, the insurer must shall pay the 884 replacement cost coverage without reservation or holdback of any 885 depreciation in value, pursuant to s. 627.702. 886 (5)(a)As used in this subsection, the term authorized 887 inspector means an inspector who is approved by the insurer and 888 who is: 889 1.A home inspector licensed under s. 468.8314; 890 2.A building code inspector certified under s. 468.607; 891 3.A general, building, or residential contractor licensed 892 under s. 489.111; 893 4.A professional engineer licensed under s. 471.015; 894 5.A professional architect licensed under s. 481.213; or 895 6.Any other individual or entity recognized by the insurer 896 as possessing the necessary qualifications to properly complete 897 a general inspection of a residential structure insured with a 898 homeowners insurance policy. 899 (b)An insurer may not refuse to issue or refuse to renew a 900 homeowners policy insuring a residential structure with a roof 901 that is less than 15 years old solely because of the age of the 902 roof. 903 (c)For a roof that is at least 15 years old, an insurer 904 must allow a homeowner to have a roof inspection performed by an 905 authorized inspector at the homeowners expense before requiring 906 the replacement of the roof of a residential structure as a 907 condition of issuing or renewing a homeowners insurance policy. 908 The insurer may not refuse to issue or refuse to renew a 909 homeowners insurance policy solely because of roof age if an 910 inspection of the roof of the residential structure performed by 911 an authorized inspector indicates that the roof has 5 years or 912 more of useful life remaining. 913 (d)This subsection applies to homeowners insurance 914 policies issued or renewed on or after July 1, 2022. 915 Section 15.Effective January 1, 2023, subsection (3) and 916 paragraph (a) of subsection (7) of section 627.70131, Florida 917 Statutes, are amended to read: 918 627.70131Insurers duty to acknowledge communications 919 regarding claims; investigation. 920 (3)(a)Unless otherwise provided by the policy of insurance 921 or by law, within 14 days after an insurer receives proof of 922 loss statements, the insurer shall begin such investigation as 923 is reasonably necessary unless the failure to begin such 924 investigation is caused by factors beyond the control of the 925 insurer which reasonably prevent the commencement of such 926 investigation. 927 (b)If such investigation involves a physical inspection of 928 the property, the licensed adjuster assigned by the insurer must 929 provide the policyholder with a printed or electronic document 930 containing his or her name and state adjuster license number. 931 For claims other than those subject to a hurricane deductible, 932 an insurer must conduct any such physical inspection within 45 933 days after its receipt of the proof of loss statements. 934 (c)Any subsequent communication with the policyholder 935 regarding the claim must also include the name and license 936 number of the adjuster communicating about the claim. 937 Communication of the adjusters name and license number may be 938 included with other information provided to the policyholder. 939 (d)Within 7 days after the insurers assignment of an 940 adjuster to the claim, the insurer must notify the policyholder 941 that he or she may request a copy of any detailed estimate of 942 the amount of the loss generated by an insurers adjuster. After 943 receiving such a request from the policyholder, the insurer must 944 send any such detailed estimate to the policyholder within the 945 later of 7 days after the insurer received the request or 7 days 946 after the detailed estimate of the amount of the loss is 947 completed. This paragraph does not require that an insurer 948 create a detailed estimate of the amount of the loss if such 949 estimate is not reasonably necessary as part of the claim 950 investigation. 951 (7)(a)Within 90 days after an insurer receives notice of 952 an initial, reopened, or supplemental property insurance claim 953 from a policyholder, the insurer shall pay or deny such claim or 954 a portion of the claim unless the failure to pay is caused by 955 factors beyond the control of the insurer which reasonably 956 prevent such payment. The insurer shall provide a reasonable 957 explanation in writing to the policyholder of the basis in the 958 insurance policy, in relation to the facts or applicable law, 959 for the payment, denial, or partial denial of a claim. If the 960 insurers claim payment is less than specified in any insurers 961 detailed estimate of the amount of the loss, the insurer must 962 provide a reasonable explanation in writing of the difference to 963 the policyholder. Any payment of an initial or supplemental 964 claim or portion of such claim made 90 days after the insurer 965 receives notice of the claim, or made more than 15 days after 966 there are no longer factors beyond the control of the insurer 967 which reasonably prevented such payment, whichever is later, 968 bears interest at the rate set forth in s. 55.03. Interest 969 begins to accrue from the date the insurer receives notice of 970 the claim. The provisions of this subsection may not be waived, 971 voided, or nullified by the terms of the insurance policy. If 972 there is a right to prejudgment interest, the insured must shall 973 select whether to receive prejudgment interest or interest under 974 this subsection. Interest is payable when the claim or portion 975 of the claim is paid. Failure to comply with this subsection 976 constitutes a violation of this code. However, failure to comply 977 with this subsection does not form the sole basis for a private 978 cause of action. 979 Section 16.Paragraph (d) of subsection (2) and subsection 980 (8) of section 627.70152, Florida Statutes, are amended to read: 981 627.70152Suits arising under a property insurance policy. 982 (2)DEFINITIONS.As used in this section, the term: 983 (d)Presuit settlement demand means the demand made by 984 the claimant in the written notice of intent to initiate 985 litigation as required by paragraph (3)(a) (3)(e). The demand 986 must include the amount of reasonable and necessary attorney 987 fees and costs incurred by the claimant, to be calculated by 988 multiplying the number of hours actually worked on the claim by 989 the claimants attorney as of the date of the notice by a 990 reasonable hourly rate. 991 (8)ATTORNEY FEES. 992 (a)In a suit arising under a residential or commercial 993 property insurance policy not brought by an assignee, the amount 994 of reasonable attorney fees and costs under s. 626.9373(1) or s. 995 627.428(1) shall be calculated and awarded as follows: 996 1.If the difference between the amount obtained by the 997 claimant and the presuit settlement offer, excluding reasonable 998 attorney fees and costs, is less than 20 percent of the disputed 999 amount, each party pays its own attorney fees and costs and a 1000 claimant may not be awarded attorney fees under s. 626.9373(1) 1001 or s. 627.428(1). 1002 2.If the difference between the amount obtained by the 1003 claimant and the presuit settlement offer, excluding reasonable 1004 attorney fees and costs, is at least 20 percent but less than 50 1005 percent of the disputed amount, the insurer pays the claimants 1006 attorney fees and costs under s. 626.9373(1) or s. 627.428(1) 1007 equal to the percentage of the disputed amount obtained times 1008 the total attorney fees and costs. 1009 3.If the difference between the amount obtained by the 1010 claimant and the presuit settlement offer, excluding reasonable 1011 attorney fees and costs, is at least 50 percent of the disputed 1012 amount, the insurer pays the claimants full attorney fees and 1013 costs under s. 626.9373(1) or s. 627.428(1). 1014 (b)In a suit arising under a residential or commercial 1015 property insurance policy not brought by an assignee, if a court 1016 dismisses a claimants suit pursuant to subsection (5), the 1017 court may not award to the claimant any incurred attorney fees 1018 for services rendered before the dismissal of the suit. When a 1019 claimants suit is dismissed pursuant to subsection (5), the 1020 court may award to the insurer reasonable attorney fees and 1021 costs associated with securing the dismissal. 1022 (c)In awarding attorney fees under this subsection, a 1023 strong presumption is created that a lodestar fee is sufficient 1024 and reasonable. Such presumption may be rebutted only in a rare 1025 and exceptional circumstance with evidence that competent 1026 counsel could not be retained in a reasonable manner. 1027 Section 17.Section 627.7142, Florida Statutes, is amended 1028 to read: 1029 627.7142Homeowner Claims Bill of Rights.An insurer 1030 issuing a personal lines residential property insurance policy 1031 in this state must provide a Homeowner Claims Bill of Rights to 1032 a policyholder within 14 days after receiving an initial 1033 communication with respect to a claim. The purpose of the bill 1034 of rights is to summarize, in simple, nontechnical terms, 1035 existing Florida law regarding the rights of a personal lines 1036 residential property insurance policyholder who files a claim of 1037 loss. The Homeowner Claims Bill of Rights is specific to the 1038 claims process and does not represent all of a policyholders 1039 rights under Florida law regarding the insurance policy. The 1040 Homeowner Claims Bill of Rights does not create a civil cause of 1041 action by any individual policyholder or class of policyholders 1042 against an insurer or insurers. The failure of an insurer to 1043 properly deliver the Homeowner Claims Bill of Rights is subject 1044 to administrative enforcement by the office but is not 1045 admissible as evidence in a civil action against an insurer. The 1046 Homeowner Claims Bill of Rights does not enlarge, modify, or 1047 contravene statutory requirements, including, but not limited 1048 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, 1049 and does not prohibit an insurer from exercising its right to 1050 repair damaged property in compliance with the terms of an 1051 applicable policy or ss. 627.7011(6)(e) 627.7011(5)(e) and 1052 627.702(7). The Homeowner Claims Bill of Rights must state: 1053 1054 HOMEOWNER CLAIMS 1055 BILL OF RIGHTS 1056 This Bill of Rights is specific to the claims process 1057 and does not represent all of your rights under 1058 Florida law regarding your policy. There are also 1059 exceptions to the stated timelines when conditions are 1060 beyond your insurance companys control. This document 1061 does not create a civil cause of action by an 1062 individual policyholder, or a class of policyholders, 1063 against an insurer or insurers and does not prohibit 1064 an insurer from exercising its right to repair damaged 1065 property in compliance with the terms of an applicable 1066 policy. 1067 1068 YOU HAVE THE RIGHT TO: 1069 1.Receive from your insurance company an 1070 acknowledgment of your reported claim within 14 days 1071 after the time you communicated the claim. 1072 2.Upon written request, receive from your 1073 insurance company within 30 days after you have 1074 submitted a complete proof-of-loss statement to your 1075 insurance company, confirmation that your claim is 1076 covered in full, partially covered, or denied, or 1077 receive a written statement that your claim is being 1078 investigated. 1079 3.Within 90 days, subject to any dual interest 1080 noted in the policy, receive full settlement payment 1081 for your claim or payment of the undisputed portion of 1082 your claim, or your insurance companys denial of your 1083 claim. 1084 4.Receive payment of interest, as provided in s. 1085 627.70131, Florida Statutes, from your insurance 1086 company, which begins accruing from the date your 1087 claim is filed if your insurance company does not pay 1088 full settlement of your initial, reopened, or 1089 supplemental claim or the undisputed portion of your 1090 claim or does not deny your claim within 90 days after 1091 your claim is filed. The interest, if applicable, must 1092 be paid when your claim or the undisputed portion of 1093 your claim is paid. 1094 5.Free mediation of your disputed claim by the 1095 Florida Department of Financial Services, Division of 1096 Consumer Services, under most circumstances and 1097 subject to certain restrictions. 1098 6.Neutral evaluation of your disputed claim, if 1099 your claim is for damage caused by a sinkhole and is 1100 covered by your policy. 1101 7.Contact the Florida Department of Financial 1102 Services, Division of Consumer Services toll-free 1103 helpline for assistance with any insurance claim or 1104 questions pertaining to the handling of your claim. 1105 You can reach the Helpline by phone at ...(toll-free 1106 phone number)..., or you can seek assistance online at 1107 the Florida Department of Financial Services, Division 1108 of Consumer Services website at ...(website 1109 address).... 1110 1111 YOU ARE ADVISED TO: 1112 1.File all claims directly with your insurance 1113 company. 1114 2.Contact your insurance company before entering 1115 into any contract for repairs to confirm any managed 1116 repair policy provisions or optional preferred 1117 vendors. 1118 3.Make and document emergency repairs that are 1119 necessary to prevent further damage. Keep the damaged 1120 property, if feasible, keep all receipts, and take 1121 photographs or video of damage before and after any 1122 repairs to provide to your insurer. 1123 4.Carefully read any contract that requires you 1124 to pay out-of-pocket expenses or a fee that is based 1125 on a percentage of the insurance proceeds that you 1126 will receive for repairing or replacing your property. 1127 5.Confirm that the contractor you choose is 1128 licensed to do business in Florida. You can verify a 1129 contractors license and check to see if there are any 1130 complaints against him or her by calling the Florida 1131 Department of Business and Professional Regulation. 1132 You should also ask the contractor for references from 1133 previous work. 1134 6.Require all contractors to provide proof of 1135 insurance before beginning repairs. 1136 7.Take precautions if the damage requires you to 1137 leave your home, including securing your property and 1138 turning off your gas, water, and electricity, and 1139 contacting your insurance company and provide a phone 1140 number where you can be reached. 1141 Section 18.Subsection (1), paragraph (a) of subsection 1142 (2), subsection (8), paragraph (a) of subsection (9), and 1143 subsection (10) of section 627.7152, Florida Statutes, are 1144 amended to read: 1145 627.7152Assignment agreements. 1146 (1)As used in this section, the term: 1147 (a)Assignee means a person who is assigned post-loss 1148 benefits through an assignment agreement. 1149 (b)Assignment agreement means any instrument by which 1150 post-loss benefits under a residential property insurance policy 1151 or commercial property insurance policy, as that term is defined 1152 in s. 627.0625(1), are assigned or transferred, or acquired in 1153 any manner, in whole or in part, to or from a person providing 1154 services, including, but not limited to, inspecting, protecting, 1155 repairing, restoring, or replacing the to protect, repair, 1156 restore, or replace property or mitigating to mitigate against 1157 further damage to the property. The term does not include fees 1158 collected by a public adjuster as defined in s. 626.854(1). 1159 (c)Assignor means a person who assigns post-loss 1160 benefits under a residential property insurance policy or 1161 commercial property insurance policy to another person through 1162 an assignment agreement. 1163 (d)Disputed amount means the difference between the 1164 assignees presuit settlement demand and the insurers presuit 1165 settlement offer. 1166 (e)Judgment obtained means damages recovered, if any, 1167 but does not include any amount awarded for attorney fees, 1168 costs, or interest. 1169 (f)Presuit settlement demand means the demand made by 1170 the assignee in the written notice of intent to initiate 1171 litigation as required by paragraph (9)(a). 1172 (e)(g)Presuit settlement offer means the offer made by 1173 the insurer in its written response to the notice of intent to 1174 initiate litigation as required by paragraph (9)(b). 1175 (2)(a)An assignment agreement must: 1176 1.Be in writing and executed by and between the assignor 1177 and the assignee. 1178 2.Contain a provision that allows the assignor to rescind 1179 the assignment agreement without a penalty or fee by submitting 1180 a written notice of rescission signed by the assignor to the 1181 assignee within 14 days after the execution of the agreement, at 1182 least 30 days after the date work on the property is scheduled 1183 to commence if the assignee has not substantially performed, or 1184 at least 30 days after the execution of the agreement if the 1185 agreement does not contain a commencement date and the assignee 1186 has not begun substantial work on the property. 1187 3.Contain a provision requiring the assignee to provide a 1188 copy of the executed assignment agreement to the insurer within 1189 3 business days after the date on which the assignment agreement 1190 is executed or the date on which work begins, whichever is 1191 earlier. Delivery of the copy of the assignment agreement to the 1192 insurer may be made: 1193 a.By personal service, overnight delivery, or electronic 1194 transmission, with evidence of delivery in the form of a receipt 1195 or other paper or electronic acknowledgment by the insurer; or 1196 b.To the location designated for receipt of such 1197 agreements as specified in the policy. 1198 4.Contain a written, itemized, per-unit cost estimate of 1199 the services to be performed by the assignee. 1200 5.Relate only to work to be performed by the assignee for 1201 services to protect, repair, restore, or replace a dwelling or 1202 structure or to mitigate against further damage to such 1203 property. 1204 6.Contain the following notice in 18-point uppercase and 1205 boldfaced type: 1206 1207 YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE 1208 UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH 1209 MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE 1210 READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. 1211 YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT 1212 PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT 1213 IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON 1214 THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE 1215 HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS 1216 AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT 1217 DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE 1218 HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY. 1219 HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY 1220 CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS 1221 RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR 1222 OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR 1223 PROPERTY INSURANCE POLICY. 1224 1225 7.Contain a provision requiring the assignee to indemnify 1226 and hold harmless the assignor from all liabilities, damages, 1227 losses, and costs, including, but not limited to, attorney fees, 1228 should the policy subject to the assignment agreement prohibit, 1229 in whole or in part, the assignment of benefits. 1230 (8)The assignee shall indemnify and hold harmless the 1231 assignor from all liabilities, damages, losses, and costs, 1232 including, but not limited to, attorney fees, should the policy 1233 subject to the assignment agreement prohibit, in whole or in 1234 part, the assignment of benefits. 1235 (9)(a)An assignee must provide the named insured, insurer, 1236 and the assignor, if not the named insured, with a written 1237 notice of intent to initiate litigation before filing suit under 1238 the policy. Such notice must be served at least 10 business days 1239 before filing suit, but not before the insurer has made a 1240 determination of coverage under s. 627.70131. The notice must be 1241 served by certified mail, return receipt requested, to the name 1242 and mailing address designated by the insurer in the policy 1243 forms or by electronic delivery to the e-mail address designated 1244 by the insurer in the policy forms at least 10 business days 1245 before filing suit, but may not be served before the insurer has 1246 made a determination of coverage under s. 627.70131. The notice 1247 must specify the damages in dispute, the amount claimed, and a 1248 presuit settlement demand. Concurrent with the notice, and as a 1249 precondition to filing suit, the assignee must provide the named 1250 insured, insurer, and the assignor, if not the named insured, a 1251 detailed written invoice or estimate of services, including 1252 itemized information on equipment, materials, and supplies; the 1253 number of labor hours; and, in the case of work performed, proof 1254 that the work has been performed in accordance with accepted 1255 industry standards. 1256 (10)Notwithstanding any other provision of law, in a suit 1257 related to an assignment agreement for post-loss claims arising 1258 under a residential or commercial property insurance policy, 1259 attorney fees and costs may be recovered by an assignee only 1260 under s. 57.105 and this subsection. 1261 (a)If the difference between the judgment obtained by the 1262 assignee and the presuit settlement offer is: 1263 1.Less than 25 percent of the disputed amount, the insurer 1264 is entitled to an award of reasonable attorney fees. 1265 2.At least 25 percent but less than 50 percent of the 1266 disputed amount, no party is entitled to an award of attorney 1267 fees. 1268 3.At least 50 percent of the disputed amount, the assignee 1269 is entitled to an award of reasonable attorney fees. 1270 (b)If the insurer fails to inspect the property or provide 1271 written or oral authorization for repairs within 7 calendar days 1272 after the first notice of loss, the insurer waives its right to 1273 an award of attorney fees under this subsection. If the failure 1274 to inspect the property or provide written or oral authorization 1275 for repairs is the result of an event for which the Governor had 1276 declared a state of emergency under s. 252.36, factors beyond 1277 the control of the insurer which reasonably prevented an 1278 inspection or written or oral authorization for repairs, or the 1279 named insureds failure or inability to allow an inspection of 1280 the property after a request by the insurer, the insurer does 1281 not waive its right to an award of attorney fees under this 1282 subsection. 1283 (c)If an assignee commences an action in any court of this 1284 state based upon or including the same claim against the same 1285 adverse party that such assignee has previously voluntarily 1286 dismissed in a court of this state, the court may order the 1287 assignee to pay the attorney fees and costs of the adverse party 1288 resulting from the action previously voluntarily dismissed. The 1289 court shall stay the proceedings in the subsequent action until 1290 the assignee has complied with the order. 1291 Section 19.Section 627.7154, Florida Statutes, is created 1292 to read: 1293 627.7154Property Insurance Stability Unit; duties and 1294 required reports. 1295 (1)An insurer stability unit is created within the office 1296 to aid in the detection and prevention of insurer insolvencies 1297 in the homeowners and condominium unit owners insurance 1298 market. 1299 (2)The insurer stability unit shall provide enhanced 1300 monitoring whenever the office identifies significant concerns 1301 about an insurers solvency, rates, proposed contracts, 1302 underwriting rules, market practices, claims handling, consumer 1303 complaints, litigation practices and outcomes, and any other 1304 issue related to compliance with the insurance code. 1305 (3)The insurer stability unit shall, at a minimum: 1306 (a)Conduct a target market exam when there is reason to 1307 believe that an insurers claims practices, rate requirements, 1308 investment activities, or financial statements suggest that the 1309 insurer may be in an unsound financial condition. 1310 (b)Closely monitor all risk-based capital reports, own 1311 risk solvency assessments, reinsurance agreements, and financial 1312 statements filed by insurers selling homeowners and condominium 1313 unit owners insurance policies in this state. 1314 (c)Have primary responsibility to conduct annual 1315 catastrophe stress tests of all domestic insurers and insurers 1316 that are commercially domiciled in this state. 1317 1.The insurer stability unit shall cooperate with the 1318 Florida Commission on Hurricane Loss Projection Methodology to 1319 select the hurricane scenarios that are used in the annual 1320 catastrophe stress test. 1321 2.Catastrophe stress testing must determine: 1322 a.Whether an individual insurer can survive a one in 130 1323 year probable maximum loss (PML), and a second event 50-year 1324 return PML following a first event that exceeds a 100-year 1325 return PML; and 1326 b.The impact of the selected hurricane scenarios on the 1327 Citizens Property Insurance Corporation, the Florida Hurricane 1328 Catastrophe Fund, the Florida Insurance Guaranty Association, 1329 and taxpayers. 1330 (d)Update wind mitigation credits required by s. 627.711 1331 and associated rules. 1332 (e)Review the causes of insolvency and business practices 1333 of insurers that have been referred to the departments Division 1334 of Rehabilitation and Liquidation and make recommendations to 1335 prevent similar failures in the future. 1336 (f)On January 1 and July 1 of each year, provide a report 1337 on the status of the homeowners and condominium unit owners 1338 insurance market to the Governor, the President of the Senate, 1339 the Speaker of the House of Representatives, the Minority Leader 1340 of the Senate, the Minority Leader of the House of 1341 Representatives, and the chairs of the legislative committees 1342 with jurisdiction over matters of insurance showing: 1343 1.Litigation practices and outcomes of insurance 1344 companies. 1345 2.Percentage of homeowners and condominium unit owners who 1346 obtain insurance in the voluntary market. 1347 3.Percentage of homeowners and condominium unit owners who 1348 obtain insurance from the Citizens Property Insurance 1349 Corporation. 1350 4.Profitability of the homeowners and condominium unit 1351 owners lines of insurance in this state, including a comparison 1352 with similar lines of insurance in other hurricane-prone states 1353 and with the national average. 1354 5.Average premiums charged for homeowners and condominium 1355 unit owners insurance in each of the 67 counties in this state. 1356 6.Results of the latest annual catastrophe stress tests of 1357 all domestic insurers and insurers that are commercially 1358 domiciled in this state. 1359 7.The availability of reinsurance in the personal lines 1360 insurance market. 1361 8.The number of property and casualty insurance carriers 1362 referred to the insurer stability unit for enhanced monitoring, 1363 including the reason for the referral. 1364 9.The number of referrals to the insurer stability unit 1365 which were deemed appropriate for enhanced monitoring, including 1366 the reason for the monitoring. 1367 10.The name of any insurer against which delinquency 1368 proceedings were instituted, including the grounds for 1369 rehabilitation pursuant to s. 631.051 and the date that each 1370 insurer was deemed impaired of capital or surplus, as the terms 1371 impairment of capital and impairment of surplus are defined in 1372 s. 631.011, or insolvent, as the term insolvency is defined in 1373 s. 631.011; a concise statement of the circumstances that led to 1374 the insurers delinquency; and a summary of the actions taken by 1375 the insurer and the office to avoid delinquency. 1376 11.Recommendations for improvements to the regulation of 1377 homeowners and condominium unit owners insurance market and an 1378 indication of whether such improvements require any change to 1379 existing laws or rules. 1380 12.Identification of any trends that may warrant attention 1381 in the future. 1382 (4)Any of the following events must trigger a referral to 1383 the insurer stability unit: 1384 (a)Consumer complaints related to homeowners insurance or 1385 condominium unit owners insurance under s. 624.307(10), if the 1386 complaints, in the aggregate, suggest a trend within the 1387 marketplace and are not an isolated incident. 1388 (b)There is reason to believe that an insurer who is 1389 authorized to sell homeowners or condominium unit owners 1390 insurance in this state has engaged in an unfair trade practice 1391 under part IX of chapter 626. 1392 (c)A market conduct examination determines that an insurer 1393 has exhibited a pattern or practice of willful violations of an 1394 unfair insurance trade practice related to claims-handling which 1395 caused harm to policyholders, as prohibited by s. 1396 626.9541(1)(i). 1397 (d)An insurer authorized to sell homeowners or 1398 condominium unit owners insurance in this state requests a rate 1399 increase that exceeds 15 percent, in accordance with s. 1400 627.0629(6). 1401 (e)An insurer authorized to sell homeowners or 1402 condominium unit owners insurance in this state violates the 1403 ratio of actual or projected annual written premiums required by 1404 s. 624.4095(4)(a). 1405 (f)An insurer authorized to sell homeowners or 1406 condominium unit owners insurance in this state files a notice 1407 pursuant to s. 624.4305 advising the office that it intends to 1408 nonrenew more than 10,000 residential property insurance 1409 policies in this state within a 12-month period. 1410 (g)A quarterly or annual financial statement required by 1411 ss. 624.424 and 627.915 demonstrates that an insurer authorized 1412 to sell homeowners or condominium unit owners insurance in 1413 this state is in an unsound condition, as defined in s. 1414 624.80(2); has exceeded its powers in a manner as described in 1415 s. 624.80(3); is impaired, as defined in s. 631.011(12) or (13); 1416 or is insolvent, as defined in s. 631.011. 1417 (h)An insurer authorized to sell homeowners or 1418 condominium unit owners insurance in this state files a 1419 quarterly or annual financial statement required by ss. 624.424 1420 and 627.915 which is misleading or contains material errors. 1421 (i)An insurer authorized to sell homeowners or 1422 condominium unit owners insurance in this state fails to timely 1423 file a quarterly or annual financial statement required by ss. 1424 624.424 and 627.915. 1425 (j)An insurer authorized to sell homeowners or 1426 condominium unit owners insurance in this state files a risk 1427 based capital report that triggers a company action level event, 1428 regulatory action level event, authorized control level event, 1429 or mandatory control level event, as those terms are defined in 1430 s. 624.4085. 1431 (k)An insurer selling homeowners or condominium unit 1432 owners insurance in this state that is subject to the own-risk 1433 solvency assessment requirement of s. 628.8015, and fails to 1434 timely file the own-risk solvency assessment. 1435 (l)A reinsurance agreement creates a substantial risk of 1436 insolvency for an insurer authorized to sell homeowners or 1437 condominium unit owners insurance in this state, pursuant to s. 1438 624.610(13). 1439 (m)An insurer authorized to sell homeowners or 1440 condominium unit owners insurance in this state is party to a 1441 reinsurance agreement that does not create a meaningful transfer 1442 of risk of loss to the reinsurer, pursuant to s. 624.610(14). 1443 (n)Citizens Property Insurance Corporation is required to 1444 absorb policies from an insurer that participated in the 1445 corporations depopulation program authorized by s. 627.3511 1446 within 3 years after the insurer takes policies out of the 1447 corporation. 1448 1449 The insurer stability units supervisors shall review all 1450 referrals triggered by the statutory provisions to determine 1451 whether enhanced scrutiny of the insurer is appropriate. 1452 (5)Expenses of the insurer stability unit shall be paid 1453 from moneys allocated to the Insurance Regulatory Trust Fund. 1454 However, if the unit recommends that a market conduct exam or 1455 targeted market exam be conducted, the reasonable cost of the 1456 examination shall be paid by the person examined, in accordance 1457 with s. 624.3161. 1458 Section 20.Subsection (1) of section 631.031, Florida 1459 Statutes, is amended to read: 1460 631.031Initiation and commencement of delinquency 1461 proceeding. 1462 (1)Upon a determination by the office that one or more 1463 grounds for the initiation of delinquency proceedings exist 1464 pursuant to this chapter and that delinquency proceedings must 1465 be initiated, the Director of the Office of Insurance Regulation 1466 shall notify the department of such determination and shall 1467 provide the department with all necessary documentation and 1468 evidence. Notification by the office must include an affidavit 1469 that identifies the grounds for rehabilitation pursuant to s. 1470 631.051; the date that each insurer was deemed impaired of 1471 capital or surplus, as the terms impairment of capital and 1472 impairment of surplus are defined in s. 631.011, or insolvent, 1473 as the term insolvency is defined in s. 631.011; a concise 1474 statement of the circumstances that led to the insurers 1475 delinquency; and a summary of the actions taken by the insurer 1476 and the office to avoid delinquency. The department shall then 1477 initiate such delinquency proceedings. 1478 Section 21.Subsection (3) of section 631.398, Florida 1479 Statutes, is amended to read: 1480 631.398Prevention of insolvencies.To aid in the detection 1481 and prevention of insurer insolvencies or impairments: 1482 (3)(a)The department shall, no later than the conclusion 1483 of any domestic insurer insolvency proceeding, prepare a summary 1484 report containing such information as is in its possession 1485 relating to the history and causes of such insolvency, including 1486 a statement of the business practices of such insurer which led 1487 to such insolvency. 1488 (b)For an insolvency involving a domestic property 1489 insurer, the department shall: 1490 1.Begin an analysis of the history and causes of the 1491 insolvency no later than the initiation of delinquency 1492 proceedings pursuant to s. 631.031. 1493 2.Submit an initial report analyzing the history and 1494 causes of the insolvency to the Governor, the President of the 1495 Senate, the Speaker of the House of Representatives, and the 1496 office. The initial report must be submitted no later than 2 1497 months after the initiation of the delinquency proceeding. The 1498 initial report shall be updated at least annually until the 1499 submission of the final report. 1500 3.Provide a special report to the Governor, the President 1501 of the Senate, the Speaker of the House of Representatives, and 1502 the office, within 10 days upon identifying any condition or 1503 practice that may lead to insolvency in the property insurance 1504 marketplace. 1505 4.Submit a final report analyzing the history and causes 1506 of the insolvency and the review of the Office of Insurance 1507 Regulations regulatory oversight of the insurer to the 1508 Governor, the President of the Senate, the Speaker of the House 1509 of Representatives, and the office within 30 days of the 1510 conclusion of the insolvency proceeding. 1511 5.Review the Office of Insurance Regulations regulatory 1512 oversight of the insurer. 1513 Section 22.If any law amended by this act was also amended 1514 by a law enacted during the 2022 Regular Session of the 1515 Legislature, such laws shall be construed as if enacted during 1516 the same session of the Legislature, and full effect shall be 1517 given to each if possible. 1518 Section 23.Except as otherwise expressly provided in this 1519 act, this act shall take effect upon becoming a law.