Florida Senate - 2022 CS for CS for SB 468 By the Committees on Judiciary; and Banking and Insurance; and Senators Perry and Broxson 590-01913-22 2022468c2 1 A bill to be entitled 2 An act relating to insurance; amending s. 215.555, 3 F.S.; redefining the term covered policy under the 4 Florida Hurricane Catastrophe Fund in relation to 5 certain collateral protection insurance policies; 6 amending s. 440.381, F.S.; revising the annual audit 7 requirement for construction classes to apply to 8 policies having estimated annual premiums over a 9 specified threshold; creating s. 624.46227, F.S.; 10 authorizing any association, trust, or pool created 11 for the purpose of forming a risk management mechanism 12 or providing self-insurance for a public entity to use 13 communications media technology to establish a quorum 14 and conduct public business; amending s. 626.221, 15 F.S.; exempting certain applicants for licensure as an 16 all-lines adjuster from a required examination; 17 amending s. 626.856, F.S.; revising the definition of 18 the term company employee adjuster; amending s. 19 627.062, F.S.; authorizing the use of a certain 20 modeling indication for residential property insurance 21 rate filings; amending s. 627.0629, F.S.; authorizing 22 insurers to file certain insurance rating plans based 23 on certain windstorm mitigation construction 24 standards, if certain requirements are met; amending 25 s. 627.0665, F.S.; revising notification requirements 26 for insurers who have automatic bank withdrawal 27 agreements with insureds to include notices when 28 withdrawal amounts increase above a specified 29 threshold; amending s. 627.351, F.S.; revising 30 conditions for determining the ineligibility of 31 condominiums for wind-only coverage; amending s. 32 627.421, F.S.; deleting a requirement for electronic 33 transmissions of certain documents to include 34 specified notices; deleting a requirement that paper 35 copies of policies be provided upon request; amending 36 ss. 627.701 and 627.712, F.S.; revising policyholder 37 acknowledgment statement requirements for property 38 insurance policies having certain hurricane 39 deductibles or windstorm or contents coverage 40 exclusions, respectively; amending s. 627.7152, F.S.; 41 revising the definition of the term assignment 42 agreement; specifying the addresses to which a notice 43 of intent must be served; amending s. 627.7276, F.S.; 44 revising notice requirements for motor vehicle 45 policies that do not provide coverage for bodily 46 injury and property damage liability; amending ss. 47 634.171, 634.317, and 634.419, F.S.; authorizing 48 licensed personal lines or general lines agents to 49 solicit, negotiate, advertise, or sell motor vehicle 50 service agreements, home warranty contracts, and 51 service warranty contracts, respectively, without a 52 sales representative license; making technical 53 changes; reenacting ss. 624.424(10) and 627.351(6)(v), 54 F.S., relating to annual statements and other 55 information and Citizens Property Insurance 56 Corporation, respectively, to incorporate the 57 amendment made to s. 215.555, F.S., in references 58 thereto; reenacting s. 626.8734(1)(b), F.S., relating 59 to nonresident all-lines adjuster license 60 qualifications, to incorporate the amendment made to 61 s. 626.221, F.S., in a reference thereto; reenacting 62 s. 626.865(1)(e), F.S., relating to public adjusters 63 qualifications, to incorporate the amendment made to 64 s. 626.856, F.S., in a reference thereto; reenacting 65 s. 627.7153(1) and (2)(d), F.S., relating to policies 66 restricting assignment of post-loss benefits under a 67 property insurance policy, to incorporate the 68 amendment made to s. 627.7152, F.S., in references 69 thereto; providing effective dates. 70 71 Be It Enacted by the Legislature of the State of Florida: 72 73 Section 1.Effective June 1, 2023, paragraph (c) of 74 subsection (2) of section 215.555, Florida Statutes, is amended 75 to read: 76 215.555Florida Hurricane Catastrophe Fund. 77 (2)DEFINITIONS.As used in this section: 78 (c)Covered policy means any insurance policy covering 79 residential property in this state, including, but not limited 80 to, any homeowner, mobile home owner, farm owner, condominium 81 association, condominium unit owner, tenant, or apartment 82 building policy, or any other policy covering a residential 83 structure or its contents issued by any authorized insurer, 84 including a commercial self-insurance fund holding a certificate 85 of authority issued by the Office of Insurance Regulation under 86 s. 624.462, the Citizens Property Insurance Corporation, and any 87 joint underwriting association or similar entity created under 88 law. The term covered policy includes any collateral 89 protection insurance policy covering personal residences which 90 protects both the borrowers and the lenders financial 91 interests, in an amount at least equal to the coverage amount 92 for the dwelling in place under the lapsed homeowners policy, 93 the coverage amount that the homeowner has been notified of by 94 the collateral protection insurer, or the coverage amount the 95 homeowner requests from the collateral protection insurer, if 96 such collateral protection insurance policy can be accurately 97 reported as required in subsection (5). Additionally, covered 98 policies include policies covering the peril of wind removed 99 from the Florida Residential Property and Casualty Joint 100 Underwriting Association or from the Citizens Property Insurance 101 Corporation, created under s. 627.351(6), or from the Florida 102 Windstorm Underwriting Association, created under s. 627.351(2), 103 by an authorized insurer under the terms and conditions of an 104 executed assumption agreement between the authorized insurer and 105 such association or Citizens Property Insurance Corporation. 106 Each assumption agreement between the association and such 107 authorized insurer or Citizens Property Insurance Corporation 108 must be approved by the Office of Insurance Regulation before 109 the effective date of the assumption, and the Office of 110 Insurance Regulation must provide written notification to the 111 board within 15 working days after such approval. Covered 112 policy does not include any policy that excludes wind coverage 113 or hurricane coverage or any reinsurance agreement and does not 114 include any policy otherwise meeting this definition which is 115 issued by a surplus lines insurer or a reinsurer. All commercial 116 residential excess policies and all deductible buy-back policies 117 that, based on sound actuarial principles, require individual 118 ratemaking must shall be excluded by rule if the actuarial 119 soundness of the fund is not jeopardized. For this purpose, the 120 term excess policy means a policy that provides insurance 121 protection for large commercial property risks and that provides 122 a layer of coverage above a primary layer insured by another 123 insurer. 124 Section 2.Subsection (3) of section 440.381, Florida 125 Statutes, is amended to read: 126 440.381Application for coverage; reporting payroll; 127 payroll audit procedures; penalties. 128 (3)The Financial Services Commission, in consultation with 129 the department, shall establish by rule minimum requirements for 130 audits of payroll and classifications in order to ensure that 131 the appropriate premium is charged for workers compensation 132 coverage. The rules must shall ensure that audits performed by 133 both carriers and employers are adequate to provide that all 134 sources of payments to employees, subcontractors, and 135 independent contractors are have been reviewed and that the 136 accuracy of classification of employees is has been verified. 137 The rules must require shall provide that employers in all 138 classes other than the construction class be audited at least 139 not less frequently than biennially and may provide for more 140 frequent audits of employers in specified classifications based 141 on factors such as amount of premium, type of business, loss 142 ratios, or other relevant factors. In no event shall Employers 143 in the construction class, generating more than the amount of 144 premium required to be experience rated, must be audited at 145 least less than annually. The annual audits required for 146 construction classes must shall consist of physical onsite 147 audits for policies only if the estimated annual premium is 148 $10,000 or more. Payroll verification audit rules must include, 149 but need not be limited to, the use of state and federal reports 150 of employee income, payroll and other accounting records, 151 certificates of insurance maintained by subcontractors, and 152 duties of employees. At the completion of an audit, the employer 153 or officer of the corporation and the auditor must print and 154 sign their names on the audit document and attach proof of 155 identification to the audit document. 156 Section 3.Section 624.46227, Florida Statutes, is created 157 to read: 158 624.46227Meeting requirements.Any association, trust, or 159 pool authorized by state law and created for the purpose of 160 forming a risk management mechanism or providing self-insurance 161 for public entities in this state may use communications media 162 technology to establish a quorum and conduct public business. 163 Section 4.Paragraph (j) of subsection (2) of section 164 626.221, Florida Statutes, is amended to read: 165 626.221Examination requirement; exemptions. 166 (2)However, an examination is not necessary for any of the 167 following: 168 (j)An applicant for license as an all-lines adjuster who 169 has the designation of Accredited Claims Adjuster (ACA) from a 170 regionally accredited postsecondary institution in this state, 171 Associate in Claims (AIC) from the Insurance Institute of 172 America, Professional Claims Adjuster (PCA) from the 173 Professional Career Institute, Professional Property Insurance 174 Adjuster (PPIA) from the HurriClaim Training Academy, Certified 175 Adjuster (CA) from ALL LINES Training, Certified Claims Adjuster 176 (CCA) from AE21 Incorporated, Claims Adjuster Certified 177 Professional (CACP) from WebCE, Inc., Accredited Insurance 178 Claims Specialist (AICS) from Encore Claim Services, Certified 179 All Lines Adjuster (CALA) from Kaplan, or Universal Claims 180 Certification (UCC) from Claims and Litigation Management 181 Alliance (CLM) whose curriculum has been approved by the 182 department and which includes comprehensive analysis of basic 183 property and casualty lines of insurance and testing at least 184 equal to that of standard department testing for the all-lines 185 adjuster license. The department shall adopt rules establishing 186 standards for the approval of curriculum. 187 Section 5.Section 626.856, Florida Statutes, is amended to 188 read: 189 626.856Company employee adjuster defined.A company 190 employee adjuster means a person licensed as an all-lines 191 adjuster who is appointed and employed on an insurers staff of 192 adjusters, by an affiliate, or by a wholly owned subsidiary of 193 the insurer, and who undertakes on behalf of such insurer or 194 other insurers under common control or ownership to ascertain 195 and determine the amount of any claim, loss, or damage payable 196 under a contract of insurance, or undertakes to effect 197 settlement of such claim, loss, or damage. 198 Section 6.Paragraph (j) of subsection (2) of section 199 627.062, Florida Statutes, is amended to read: 200 627.062Rate standards. 201 (2)As to all such classes of insurance: 202 (j)With respect to residential property insurance rate 203 filings, the rate filing: 204 1.Must account for mitigation measures undertaken by 205 policyholders to reduce hurricane losses. 206 2.May use a modeling indication that is the weighted or 207 straight average of two or more hurricane loss projection models 208 found by the commission to be accurate or reliable pursuant to 209 s. 627.0628. 210 211 The provisions of this subsection do not apply to workers 212 compensation, employers liability insurance, and motor vehicle 213 insurance. 214 Section 7.Subsection (9) is added to section 627.0629, 215 Florida Statutes, to read: 216 627.0629Residential property insurance; rate filings. 217 (9)An insurer may file with the office a personal lines 218 residential property insurance rating plan that provides 219 justified premium discounts, credits, or other rate 220 differentials based on windstorm mitigation construction 221 standards developed by an independent, not-for-profit scientific 222 research organization, if such standards meet the requirements 223 of this section. 224 Section 8.Section 627.0665, Florida Statutes, is amended 225 to read: 226 627.0665Automatic bank withdrawal agreements; notification 227 required.Any insurer licensed to issue insurance in this the 228 state who has an automatic bank withdrawal agreement with an 229 insured party for the payment of insurance premiums for any type 230 of insurance shall give the named insured at least 15 days 231 advance written notice of any increase in policy premiums that 232 results in the next automatic bank withdrawal being increased by 233 more than $10. Such notice must be provided before prior to any 234 automatic bank withdrawal containing the of an increased premium 235 amount. 236 Section 9.Paragraph (a) of subsection (6) of section 237 627.351, Florida Statutes, is amended to read: 238 627.351Insurance risk apportionment plans. 239 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 240 (a)The public purpose of this subsection is to ensure that 241 there is an orderly market for property insurance for residents 242 and businesses of this state. 243 1.The Legislature finds that private insurers are 244 unwilling or unable to provide affordable property insurance 245 coverage in this state to the extent sought and needed. The 246 absence of affordable property insurance threatens the public 247 health, safety, and welfare and likewise threatens the economic 248 health of the state. The state therefore has a compelling public 249 interest and a public purpose to assist in assuring that 250 property in this the state is insured and that it is insured at 251 affordable rates so as to facilitate the remediation, 252 reconstruction, and replacement of damaged or destroyed property 253 in order to reduce or avoid the negative effects otherwise 254 resulting to the public health, safety, and welfare, to the 255 economy of the state, and to the revenues of the state and local 256 governments which are needed to provide for the public welfare. 257 It is necessary, therefore, to provide affordable property 258 insurance to applicants who are in good faith entitled to 259 procure insurance through the voluntary market but are unable to 260 do so. The Legislature intends, therefore, that affordable 261 property insurance be provided and that it continue to be 262 provided, as long as necessary, through Citizens Property 263 Insurance Corporation, a government entity that is an integral 264 part of the state, and that is not a private insurance company. 265 To that end, the corporation shall strive to increase the 266 availability of affordable property insurance in this state, 267 while achieving efficiencies and economies, and while providing 268 service to policyholders, applicants, and agents which is no 269 less than the quality generally provided in the voluntary 270 market, for the achievement of the foregoing public purposes. 271 Because it is essential for this government entity to have the 272 maximum financial resources to pay claims following a 273 catastrophic hurricane, it is the intent of the Legislature that 274 the corporation continue to be an integral part of the state and 275 that the income of the corporation be exempt from federal income 276 taxation and that interest on the debt obligations issued by the 277 corporation be exempt from federal income taxation. 278 2.The Residential Property and Casualty Joint Underwriting 279 Association originally created by this statute shall be known as 280 the Citizens Property Insurance Corporation. The corporation 281 shall provide insurance for residential and commercial property, 282 for applicants who are entitled, but, in good faith, are unable 283 to procure insurance through the voluntary market. The 284 corporation shall operate pursuant to a plan of operation 285 approved by order of the Financial Services Commission. The plan 286 is subject to continuous review by the commission. The 287 commission may, by order, withdraw approval of all or part of a 288 plan if the commission determines that conditions have changed 289 since approval was granted and that the purposes of the plan 290 require changes in the plan. For the purposes of this 291 subsection, residential coverage includes both personal lines 292 residential coverage, which consists of the type of coverage 293 provided by homeowner, mobile home owner, dwelling, tenant, 294 condominium unit owner, and similar policies; and commercial 295 lines residential coverage, which consists of the type of 296 coverage provided by condominium association, apartment 297 building, and similar policies. 298 3.With respect to coverage for personal lines residential 299 structures: 300 a.Effective January 1, 2014, a structure that has a 301 dwelling replacement cost of $1 million or more, or a single 302 condominium unit that has a combined dwelling and contents 303 replacement cost of $1 million or more, is not eligible for 304 coverage by the corporation. Such dwellings insured by the 305 corporation on December 31, 2013, may continue to be covered by 306 the corporation until the end of the policy term. The office 307 shall approve the method used by the corporation for valuing the 308 dwelling replacement cost for the purposes of this subparagraph. 309 If a policyholder is insured by the corporation before being 310 determined to be ineligible pursuant to this subparagraph and 311 such policyholder files a lawsuit challenging the determination, 312 the policyholder may remain insured by the corporation until the 313 conclusion of the litigation. 314 b.Effective January 1, 2015, a structure that has a 315 dwelling replacement cost of $900,000 or more, or a single 316 condominium unit that has a combined dwelling and contents 317 replacement cost of $900,000 or more, is not eligible for 318 coverage by the corporation. Such dwellings insured by the 319 corporation on December 31, 2014, may continue to be covered by 320 the corporation only until the end of the policy term. 321 c.Effective January 1, 2016, a structure that has a 322 dwelling replacement cost of $800,000 or more, or a single 323 condominium unit that has a combined dwelling and contents 324 replacement cost of $800,000 or more, is not eligible for 325 coverage by the corporation. Such dwellings insured by the 326 corporation on December 31, 2015, may continue to be covered by 327 the corporation until the end of the policy term. 328 d.Effective January 1, 2017, a structure that has a 329 dwelling replacement cost of $700,000 or more, or a single 330 condominium unit that has a combined dwelling and contents 331 replacement cost of $700,000 or more, is not eligible for 332 coverage by the corporation. Such dwellings insured by the 333 corporation on December 31, 2016, may continue to be covered by 334 the corporation until the end of the policy term. 335 336 The requirements of sub-subparagraphs b.-d. do not apply in 337 counties where the office determines there is not a reasonable 338 degree of competition. In such counties a personal lines 339 residential structure that has a dwelling replacement cost of 340 less than $1 million, or a single condominium unit that has a 341 combined dwelling and contents replacement cost of less than $1 342 million, is eligible for coverage by the corporation. 343 4.It is the intent of the Legislature that policyholders, 344 applicants, and agents of the corporation receive service and 345 treatment of the highest possible level but never less than that 346 generally provided in the voluntary market. It is also intended 347 that the corporation be held to service standards no less than 348 those applied to insurers in the voluntary market by the office 349 with respect to responsiveness, timeliness, customer courtesy, 350 and overall dealings with policyholders, applicants, or agents 351 of the corporation. 352 5.a.Effective January 1, 2009, a personal lines 353 residential structure that is located in the wind-borne debris 354 region, as defined in s. 1609.2, International Building Code 355 (2006), and that has an insured value on the structure of 356 $750,000 or more is not eligible for coverage by the corporation 357 unless the structure has opening protections as required under 358 the Florida Building Code for a newly constructed residential 359 structure in that area. A residential structure is deemed to 360 comply with this sub-subparagraph if it has shutters or opening 361 protections on all openings and if such opening protections 362 complied with the Florida Building Code at the time they were 363 installed. 364 b.Any major structure, as defined in s. 161.54(6)(a), that 365 is newly constructed, or rebuilt, repaired, restored, or 366 remodeled to increase the total square footage of finished area 367 by more than 25 percent, pursuant to a permit applied for after 368 July 1, 2015, is not eligible for coverage by the corporation if 369 the structure is seaward of the coastal construction control 370 line established pursuant to s. 161.053 or is within the Coastal 371 Barrier Resources System as designated by 16 U.S.C. ss. 3501 372 3510. 373 6.With respect to wind-only coverage for commercial lines 374 residential condominiums, effective July 1, 2014, a condominium 375 may shall be deemed ineligible for coverage when if 50 percent 376 or more of the units are rented more than eight times in a 377 calendar year for a rental agreement period of less than 30 378 days. 379 Section 10.Subsection (1) of section 627.421, Florida 380 Statutes, is amended to read: 381 627.421Delivery of policy. 382 (1)Subject to the insurers requirement as to payment of 383 premium, every policy shall be mailed, delivered, or 384 electronically transmitted to the insured or to the person 385 entitled thereto not later than 60 days after the effectuation 386 of coverage. Notwithstanding any other provision of law, an 387 insurer may allow a policyholder of personal lines insurance to 388 affirmatively elect delivery of the policy documents, including, 389 but not limited to, policies, endorsements, notices, or 390 documents, by electronic means in lieu of delivery by mail. 391 Electronic transmission of a policy for commercial risks, 392 including, but not limited to, workers compensation and 393 employers liability, commercial automobile liability, 394 commercial automobile physical damage, commercial lines 395 residential property, commercial nonresidential property, 396 farmowners insurance, and the types of commercial lines risks 397 set forth in s. 627.062(3)(d), constitutes delivery to the 398 insured or to the person entitled to delivery, unless the 399 insured or the person entitled to delivery communicates to the 400 insurer in writing or electronically that he or she does not 401 agree to delivery by electronic means. Electronic transmission 402 shall include a notice to the insured or to the person entitled 403 to delivery of a policy of his or her right to receive the 404 policy via United States mail rather than via electronic 405 transmission. A paper copy of the policy shall be provided to 406 the insured or to the person entitled to delivery at his or her 407 request. 408 Section 11.Paragraph (d) of subsection (4) of section 409 627.701, Florida Statutes, is amended to read: 410 627.701Liability of insureds; coinsurance; deductibles. 411 (4) 412 (d)1.A personal lines residential property insurance 413 policy covering a risk valued at less than $500,000 may not have 414 a hurricane deductible in excess of 10 percent of the policy 415 dwelling limits, unless the following conditions are met: 416 a.The policyholder must personally write or type and 417 provide to the insurer the following statement in his or her own 418 handwriting and sign his or her name, which must also be signed 419 by every other named insured on the policy, and dated: I do not 420 want the insurance on my home to pay for the first (specify 421 dollar value) of damage from hurricanes. I will pay those costs. 422 My insurance will not. 423 b.If the structure insured by the policy is subject to a 424 mortgage or lien, the policyholder must provide the insurer with 425 a written statement from the mortgageholder or lienholder 426 indicating that the mortgageholder or lienholder approves the 427 policyholder electing to have the specified deductible. 428 2.A deductible subject to the requirements of this 429 paragraph applies for the term of the policy and for each 430 renewal thereafter. Changes to the deductible percentage may be 431 implemented only as of the date of renewal. 432 3.An insurer shall keep the original copy of the signed 433 statement required by this paragraph, electronically or 434 otherwise, and provide a copy to the policyholder providing the 435 signed statement. A signed statement meeting the requirements of 436 this paragraph creates a presumption that there was an informed, 437 knowing election of coverage. 438 4.The commission shall adopt rules providing appropriate 439 alternative methods for providing the statements required by 440 this section for policyholders who have a handicapping or 441 disabling condition that prevents them from providing a 442 handwritten statement. 443 Section 12.Paragraph (a) of subsection (2) and subsection 444 (3) of section 627.712, Florida Statutes, are amended to read: 445 627.712Residential windstorm coverage required; 446 availability of exclusions for windstorm or contents. 447 (2)A property insurer must make available, at the option 448 of the policyholder, an exclusion of windstorm coverage. 449 (a)The coverage may be excluded only if: 450 1.When the policyholder is a natural person, the 451 policyholder personally writes or types and provides to the 452 insurer the following statement in his or her own handwriting 453 and signs his or her name, which must also be signed by every 454 other named insured on the policy, and dated: I do not want the 455 insurance on my (home/mobile home/condominium unit) to pay for 456 damage from windstorms. I will pay those costs. My insurance 457 will not. 458 2.When the policyholder is other than a natural person, 459 the policyholder provides to the insurer on the policyholders 460 letterhead the following statement that must be signed by the 461 policyholders authorized representative and dated: ...(Name of 462 entity)... does not want the insurance on its ...(type of 463 structure)... to pay for damage from windstorms. ...(Name of 464 entity)... will be responsible for these costs. ...(Name of 465 entitys)... insurance will not. 466 (3)An insurer issuing a residential property insurance 467 policy, except for a condominium unit owner policy or a tenant 468 policy, must make available, at the option of the policyholder, 469 an exclusion of coverage for the contents. The coverage may be 470 excluded only if the policyholder personally writes or types and 471 provides to the insurer the following statement in his or her 472 own handwriting and signs his or her signature, which must also 473 be signed by every other named insured on the policy, and dated: 474 I do not want the insurance on my (home/mobile home) to pay for 475 the costs to repair or replace any contents that are damaged. I 476 will pay those costs. My insurance will not. 477 Section 13.Effective upon this act becoming a law, 478 paragraph (b) of subsection (1) and paragraph (a) of subsection 479 (9) of section 627.7152, Florida Statutes, are amended to read: 480 627.7152Assignment agreements. 481 (1)As used in this section, the term: 482 (b)Assignment agreement means any instrument by which 483 post-loss benefits under a residential property insurance policy 484 or commercial property insurance policy, as that term is defined 485 in s. 627.0625(1), are assigned or transferred, or acquired in 486 any manner, in whole or in part, to or from a person providing 487 services, including, but not limited to, services to inspect, 488 protect, repair, restore, or replace property or to mitigate 489 against further damage to the property. The term does not 490 include any instrument by which a licensed public adjuster as 491 defined in s. 626.854(1) receives any compensation, payment, 492 commission, fee, or other thing of value for providing services 493 under such licensure. 494 (9)(a)An assignee must provide the named insured, insurer, 495 and the assignor, if not the named insured, with a written 496 notice of intent to initiate litigation before filing suit under 497 the policy. Such notice must be served at least 10 business days 498 before filing suit, but not before the insurer has made a 499 determination of coverage under s. 627.70131, by certified mail, 500 return receipt requested, to the name and mailing address 501 designated by the insurer in the policy forms or by electronic 502 delivery to the e-mail address designated by the insurer in the 503 policy forms at least 10 business days before filing suit, but 504 may not be served before the insurer has made a determination of 505 coverage under s. 627.70131. The notice must specify the damages 506 in dispute, the amount claimed, and a presuit settlement demand. 507 Concurrent with the notice, and as a precondition to filing 508 suit, the assignee must provide the named insured, insurer, and 509 the assignor, if not the named insured, a detailed written 510 invoice or estimate of services, including itemized information 511 on equipment, materials, and supplies; the number of labor 512 hours; and, in the case of work performed, proof that the work 513 has been performed in accordance with accepted industry 514 standards. 515 Section 14.Section 627.7276, Florida Statutes, is amended 516 to read: 517 627.7276Notice of limited coverage. 518 (1)An automobile policy that does not contain coverage for 519 bodily injury and property damage must include a notice be 520 clearly stamped or printed to the effect that such coverage is 521 not included in the policy in the following manner: 522 523 THIS POLICY DOES NOT PROVIDE BODILY INJURY AND 524 PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER 525 COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT 526 MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL 527 RESPONSIBILITY LAW. 528 529 (2)This notice legend must accompany appear on the policy 530 declarations declaration page and on the filing back of the 531 policy and be printed in a contrasting color from that used on 532 the policy and in type size larger than the largest type used in 533 the text at least as large as the type size used on the 534 declarations page thereof, as an overprint or by a rubber stamp 535 impression. 536 Section 15.Section 634.171, Florida Statutes, is amended 537 to read: 538 634.171Salesperson to be licensed and appointed; 539 exemptions.Salespersons for motor vehicle service agreement 540 companies and insurers must shall be licensed, appointed, 541 renewed, continued, reinstated, or terminated as prescribed in 542 chapter 626 for insurance representatives in general. However, 543 they are shall be exempt from all other provisions of chapter 544 626, including those relating to fingerprinting, photo 545 identification, education, and examination provisions. 546 Applicable license, appointment, and other fees are as shall be 547 those prescribed in s. 624.501. A licensed and appointed 548 salesperson is shall be directly responsible and accountable for 549 all acts of her or his employees and other representatives. Each 550 service agreement company or insurer shall, on forms prescribed 551 by the department, within 30 days after termination of the 552 appointment, notify the department of such termination. An No 553 employee or a salesperson of a motor vehicle service agreement 554 company or an insurer may not directly or indirectly solicit or 555 negotiate insurance contracts, or hold herself or himself out in 556 any manner to be an insurance agent, unless so qualified, 557 licensed, and appointed therefor under the Florida Insurance 558 Code. A licensed personal lines or general lines agent is not 559 required to be licensed as a salesperson under this section to 560 solicit, negotiate, advertise, or sell motor vehicle service 561 agreements. A motor vehicle service agreement company is not 562 required to be licensed as a salesperson to solicit, sell, 563 issue, or otherwise transact the motor vehicle service 564 agreements issued by the motor vehicle service agreement 565 company. 566 Section 16.Section 634.317, Florida Statutes, is amended 567 to read: 568 634.317License and appointment required; exemptions.A No 569 person may not solicit, negotiate, or effectuate home warranty 570 contracts for remuneration in this state unless such person is 571 licensed and appointed as a sales representative. A licensed and 572 appointed sales representative is shall be directly responsible 573 and accountable for all acts of the licensees employees. A 574 licensed personal lines or general lines agent is not required 575 to be licensed as a sales representative under this section to 576 solicit, negotiate, advertise, or sell home warranty contracts. 577 Section 17.Section 634.419, Florida Statutes, is amended 578 to read: 579 634.419License and appointment required; exemptions.A No 580 person or an entity may not shall solicit, negotiate, advertise, 581 or effectuate service warranty contracts in this state unless 582 such person or entity is licensed and appointed as a sales 583 representative. Sales representatives are shall be responsible 584 for the actions of persons under their supervision. However, a 585 service warranty association licensed as such under this part is 586 shall not be required to be licensed and appointed as a sales 587 representative to solicit, negotiate, advertise, or effectuate 588 its products. A licensed personal lines or general lines agent 589 is not required to be licensed as a sales representative under 590 this section to solicit, negotiate, advertise, or sell service 591 warranty contracts. 592 Section 18.Effective June 1, 2023, for the purpose of 593 incorporating the amendment made by this act to section 215.555, 594 Florida Statutes, in a reference thereto, subsection (10) of 595 section 624.424, Florida Statutes, is reenacted to read: 596 624.424Annual statement and other information. 597 (10)Each insurer or insurer group doing business in this 598 state shall file on a quarterly basis in conjunction with 599 financial reports required by paragraph (1)(a) a supplemental 600 report on an individual and group basis on a form prescribed by 601 the commission with information on personal lines and commercial 602 lines residential property insurance policies in this state. The 603 supplemental report shall include separate information for 604 personal lines property policies and for commercial lines 605 property policies and totals for each item specified, including 606 premiums written for each of the property lines of business as 607 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 608 shall include the following information for each county on a 609 monthly basis: 610 (a)Total number of policies in force at the end of each 611 month. 612 (b)Total number of policies canceled. 613 (c)Total number of policies nonrenewed. 614 (d)Number of policies canceled due to hurricane risk. 615 (e)Number of policies nonrenewed due to hurricane risk. 616 (f)Number of new policies written. 617 (g)Total dollar value of structure exposure under policies 618 that include wind coverage. 619 (h)Number of policies that exclude wind coverage. 620 Section 19.Effective June 1, 2023, for the purpose of 621 incorporating the amendment made by this act to section 215.555, 622 Florida Statutes, in a reference thereto, paragraph (v) of 623 subsection (6) of section 627.351, Florida Statutes, is 624 reenacted to read: 625 627.351Insurance risk apportionment plans. 626 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 627 (v)1.Effective July 1, 2002, policies of the Residential 628 Property and Casualty Joint Underwriting Association become 629 policies of the corporation. All obligations, rights, assets and 630 liabilities of the association, including bonds, note and debt 631 obligations, and the financing documents pertaining to them 632 become those of the corporation as of July 1, 2002. The 633 corporation is not required to issue endorsements or 634 certificates of assumption to insureds during the remaining term 635 of in-force transferred policies. 636 2.Effective July 1, 2002, policies of the Florida 637 Windstorm Underwriting Association are transferred to the 638 corporation and become policies of the corporation. All 639 obligations, rights, assets, and liabilities of the association, 640 including bonds, note and debt obligations, and the financing 641 documents pertaining to them are transferred to and assumed by 642 the corporation on July 1, 2002. The corporation is not required 643 to issue endorsements or certificates of assumption to insureds 644 during the remaining term of in-force transferred policies. 645 3.The Florida Windstorm Underwriting Association and the 646 Residential Property and Casualty Joint Underwriting Association 647 shall take all actions necessary to further evidence the 648 transfers and provide the documents and instruments of further 649 assurance as may reasonably be requested by the corporation for 650 that purpose. The corporation shall execute assumptions and 651 instruments as the trustees or other parties to the financing 652 documents of the Florida Windstorm Underwriting Association or 653 the Residential Property and Casualty Joint Underwriting 654 Association may reasonably request to further evidence the 655 transfers and assumptions, which transfers and assumptions, 656 however, are effective on the date provided under this paragraph 657 whether or not, and regardless of the date on which, the 658 assumptions or instruments are executed by the corporation. 659 Subject to the relevant financing documents pertaining to their 660 outstanding bonds, notes, indebtedness, or other financing 661 obligations, the moneys, investments, receivables, choses in 662 action, and other intangibles of the Florida Windstorm 663 Underwriting Association shall be credited to the coastal 664 account of the corporation, and those of the personal lines 665 residential coverage account and the commercial lines 666 residential coverage account of the Residential Property and 667 Casualty Joint Underwriting Association shall be credited to the 668 personal lines account and the commercial lines account, 669 respectively, of the corporation. 670 4.Effective July 1, 2002, a new applicant for property 671 insurance coverage who would otherwise have been eligible for 672 coverage in the Florida Windstorm Underwriting Association is 673 eligible for coverage from the corporation as provided in this 674 subsection. 675 5.The transfer of all policies, obligations, rights, 676 assets, and liabilities from the Florida Windstorm Underwriting 677 Association to the corporation and the renaming of the 678 Residential Property and Casualty Joint Underwriting Association 679 as the corporation does not affect the coverage with respect to 680 covered policies as defined in s. 215.555(2)(c) provided to 681 these entities by the Florida Hurricane Catastrophe Fund. The 682 coverage provided by the fund to the Florida Windstorm 683 Underwriting Association based on its exposures as of June 30, 684 2002, and each June 30 thereafter shall be redesignated as 685 coverage for the coastal account of the corporation. 686 Notwithstanding any other provision of law, the coverage 687 provided by the fund to the Residential Property and Casualty 688 Joint Underwriting Association based on its exposures as of June 689 30, 2002, and each June 30 thereafter shall be transferred to 690 the personal lines account and the commercial lines account of 691 the corporation. Notwithstanding any other provision of law, the 692 coastal account shall be treated, for all Florida Hurricane 693 Catastrophe Fund purposes, as if it were a separate 694 participating insurer with its own exposures, reimbursement 695 premium, and loss reimbursement. Likewise, the personal lines 696 and commercial lines accounts shall be viewed together, for all 697 fund purposes, as if the two accounts were one and represent a 698 single, separate participating insurer with its own exposures, 699 reimbursement premium, and loss reimbursement. The coverage 700 provided by the fund to the corporation shall constitute and 701 operate as a full transfer of coverage from the Florida 702 Windstorm Underwriting Association and Residential Property and 703 Casualty Joint Underwriting Association to the corporation. 704 Section 20.For the purpose of incorporating the amendment 705 made by this act to section 626.221, Florida Statutes, in a 706 reference thereto, paragraph (b) of subsection (1) of section 707 626.8734, Florida Statutes, is reenacted to read: 708 626.8734Nonresident all-lines adjuster license 709 qualifications. 710 (1)The department shall issue a license to an applicant 711 for a nonresident all-lines adjuster license upon determining 712 that the applicant has paid the applicable license fees required 713 under s. 624.501 and: 714 (b)Has passed to the satisfaction of the department a 715 written Florida all-lines adjuster examination of the scope 716 prescribed in s. 626.241(6); however, the requirement for the 717 examination does not apply to: 718 1.An applicant who is licensed as an all-lines adjuster in 719 his or her home state if that state has entered into a 720 reciprocal agreement with the department; 721 2.An applicant who is licensed as a nonresident all-lines 722 adjuster in a state other than his or her home state and a 723 reciprocal agreement with the appropriate official of the state 724 of licensure has been entered into with the department; or 725 3.An applicant who holds a certification set forth in s. 726 626.221(2)(j). 727 Section 21.For the purpose of incorporating the amendment 728 made by this act to section 626.856, Florida Statutes, in a 729 reference thereto, paragraph (e) of subsection (1) of section 730 626.865, Florida Statutes, is reenacted to read: 731 626.865Public adjusters qualifications, bond. 732 (1)The department shall issue a license to an applicant 733 for a public adjusters license upon determining that the 734 applicant has paid the applicable fees specified in s. 624.501 735 and possesses the following qualifications: 736 (e)Has been licensed in this state as an all-lines 737 adjuster, and has been appointed on a continual basis for the 738 previous 6 months as a public adjuster apprentice under s. 739 626.8561, as an independent adjuster under s. 626.855, or as a 740 company employee adjuster under s. 626.856. 741 Section 22.Effective upon this act becoming a law, for the 742 purpose of incorporating the amendment made by this act to 743 section 627.7152, Florida Statutes, in references thereto, 744 subsection (1) and paragraph (d) of subsection (2) of section 745 627.7153, Florida Statutes, are reenacted to read: 746 627.7153Policies restricting assignment of post-loss 747 benefits under a property insurance policy. 748 (1)As used in this section, the term assignment 749 agreement has the same meaning as provided in s. 627.7152. 750 (2)An insurer may make available a policy that restricts 751 in whole or in part an insureds right to execute an assignment 752 agreement only if all of the following conditions are met: 753 (d)Each restricted policy include on its face the 754 following notice in 18-point uppercase and boldfaced type: 755 756 THIS POLICY DOES NOT ALLOW THE UNRESTRICTED ASSIGNMENT 757 OF POST-LOSS INSURANCE BENEFITS. BY SELECTING THIS 758 POLICY, YOU WAIVE YOUR RIGHT TO FREELY ASSIGN OR 759 TRANSFER THE POST-LOSS PROPERTY INSURANCE BENEFITS 760 AVAILABLE UNDER THIS POLICY TO A THIRD PARTY OR TO 761 OTHERWISE FREELY ENTER INTO AN ASSIGNMENT AGREEMENT AS 762 THE TERM IS DEFINED IN SECTION 627.7152 OF THE FLORIDA 763 STATUTES. 764 Section 23.Except as otherwise expressly provided in this 765 act and except for this section, which shall take effect upon 766 this act becoming a law, this act shall take effect July 1, 767 2022.