CS for CS for SB 468 First Engrossed 2022468e1 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. 627.0628, F.S.; revising the 22 membership of the Florida Commission on Hurricane Loss 23 Projection Methodology; amending s. 627.0629, F.S.; 24 authorizing insurers to file certain insurance rating 25 plans based on certain windstorm mitigation 26 construction standards, if certain requirements are 27 met; amending s. 627.0665, F.S.; revising the 28 timeframe for notification of premium increases by 29 insurers who have automatic bank withdrawal agreements 30 with insureds; revising notification requirements for 31 such insurers to include notices when withdrawal 32 amounts increase above a specified threshold; amending 33 s. 627.351, F.S.; revising conditions for determining 34 the ineligibility of condominiums for wind-only 35 coverage; amending s. 627.421, F.S.; deleting a 36 requirement for electronic transmissions of certain 37 documents to include specified notices; deleting a 38 requirement that paper copies of policies be provided 39 upon request; amending ss. 627.701 and 627.712, F.S.; 40 revising policyholder acknowledgment statement 41 requirements for property insurance policies having 42 certain hurricane deductibles or windstorm or contents 43 coverage exclusions, respectively; amending s. 44 627.7152, F.S.; revising the definition of the term 45 assignment agreement; specifying the addresses to 46 which a notice of intent must be served; amending s. 47 627.7276, F.S.; revising notice requirements for motor 48 vehicle policies that do not provide coverage for 49 bodily injury and property damage liability; amending 50 ss. 634.317 and 634.419, F.S.; authorizing licensed 51 personal lines or general lines agents to solicit, 52 negotiate, advertise, or sell home warranty contracts 53 and service warranty contracts, respectively, without 54 a sales representative license; making technical 55 changes; reenacting ss. 624.424(10) and 627.351(6)(v), 56 F.S., relating to annual statements and other 57 information and Citizens Property Insurance 58 Corporation, respectively, to incorporate the 59 amendment made to s. 215.555, F.S., in references 60 thereto; reenacting s. 626.8734(1)(b), F.S., relating 61 to nonresident all-lines adjuster license 62 qualifications, to incorporate the amendment made to 63 s. 626.221, F.S., in a reference thereto; reenacting 64 s. 626.865(1)(e), F.S., relating to public adjusters 65 qualifications, to incorporate the amendment made to 66 s. 626.856, F.S., in a reference thereto; reenacting 67 s. 627.7153(1) and (2)(d), F.S., relating to policies 68 restricting assignment of post-loss benefits under a 69 property insurance policy, to incorporate the 70 amendment made to s. 627.7152, F.S., in references 71 thereto; providing effective dates. 72 73 Be It Enacted by the Legislature of the State of Florida: 74 75 Section 1.Effective June 1, 2023, paragraph (c) of 76 subsection (2) of section 215.555, Florida Statutes, is amended 77 to read: 78 215.555Florida Hurricane Catastrophe Fund. 79 (2)DEFINITIONS.As used in this section: 80 (c)Covered policy means any insurance policy covering 81 residential property in this state, including, but not limited 82 to, any homeowner, mobile home owner, farm owner, condominium 83 association, condominium unit owner, tenant, or apartment 84 building policy, or any other policy covering a residential 85 structure or its contents issued by any authorized insurer, 86 including a commercial self-insurance fund holding a certificate 87 of authority issued by the Office of Insurance Regulation under 88 s. 624.462, the Citizens Property Insurance Corporation, and any 89 joint underwriting association or similar entity created under 90 law. The term covered policy includes any collateral 91 protection insurance policy covering personal residences which 92 protects both the borrowers and the lenders financial 93 interests, in an amount at least equal to the coverage amount 94 for the dwelling in place under the lapsed homeowners policy, 95 the coverage amount that the homeowner has been notified of by 96 the collateral protection insurer, or the coverage amount the 97 homeowner requests from the collateral protection insurer, if 98 such collateral protection insurance policy can be accurately 99 reported as required in subsection (5). Additionally, covered 100 policies include policies covering the peril of wind removed 101 from the Florida Residential Property and Casualty Joint 102 Underwriting Association or from the Citizens Property Insurance 103 Corporation, created under s. 627.351(6), or from the Florida 104 Windstorm Underwriting Association, created under s. 627.351(2), 105 by an authorized insurer under the terms and conditions of an 106 executed assumption agreement between the authorized insurer and 107 such association or Citizens Property Insurance Corporation. 108 Each assumption agreement between the association and such 109 authorized insurer or Citizens Property Insurance Corporation 110 must be approved by the Office of Insurance Regulation before 111 the effective date of the assumption, and the Office of 112 Insurance Regulation must provide written notification to the 113 board within 15 working days after such approval. Covered 114 policy does not include any policy that excludes wind coverage 115 or hurricane coverage or any reinsurance agreement and does not 116 include any policy otherwise meeting this definition which is 117 issued by a surplus lines insurer or a reinsurer. All commercial 118 residential excess policies and all deductible buy-back policies 119 that, based on sound actuarial principles, require individual 120 ratemaking must shall be excluded by rule if the actuarial 121 soundness of the fund is not jeopardized. For this purpose, the 122 term excess policy means a policy that provides insurance 123 protection for large commercial property risks and that provides 124 a layer of coverage above a primary layer insured by another 125 insurer. 126 Section 2.Subsection (3) of section 440.381, Florida 127 Statutes, is amended to read: 128 440.381Application for coverage; reporting payroll; 129 payroll audit procedures; penalties. 130 (3)The Financial Services Commission, in consultation with 131 the department, shall establish by rule minimum requirements for 132 audits of payroll and classifications in order to ensure that 133 the appropriate premium is charged for workers compensation 134 coverage. The rules must shall ensure that audits performed by 135 both carriers and employers are adequate to provide that all 136 sources of payments to employees, subcontractors, and 137 independent contractors are have been reviewed and that the 138 accuracy of classification of employees is has been verified. 139 The rules must require shall provide that employers in all 140 classes other than the construction class be audited at least 141 not less frequently than biennially and may provide for more 142 frequent audits of employers in specified classifications based 143 on factors such as amount of premium, type of business, loss 144 ratios, or other relevant factors. In no event shall Employers 145 in the construction class, generating more than the amount of 146 premium required to be experience rated, must be audited at 147 least less than annually. The annual audits required for 148 construction classes must shall consist of physical onsite 149 audits for policies only if the estimated annual premium is 150 $10,000 or more. Payroll verification audit rules must include, 151 but need not be limited to, the use of state and federal reports 152 of employee income, payroll and other accounting records, 153 certificates of insurance maintained by subcontractors, and 154 duties of employees. At the completion of an audit, the employer 155 or officer of the corporation and the auditor must print and 156 sign their names on the audit document and attach proof of 157 identification to the audit document. 158 Section 3.Section 624.46227, Florida Statutes, is created 159 to read: 160 624.46227Meeting requirements.Any association, trust, or 161 pool authorized by state law and created for the purpose of 162 forming a risk management mechanism or providing self-insurance 163 for public entities in this state may use communications media 164 technology to establish a quorum and conduct public business. 165 Section 4.Paragraph (j) of subsection (2) of section 166 626.221, Florida Statutes, is amended to read: 167 626.221Examination requirement; exemptions. 168 (2)However, an examination is not necessary for any of the 169 following: 170 (j)An applicant for license as an all-lines adjuster who 171 has the designation of Accredited Claims Adjuster (ACA) from a 172 regionally accredited postsecondary institution in this state, 173 Associate in Claims (AIC) from the Insurance Institute of 174 America, Professional Claims Adjuster (PCA) from the 175 Professional Career Institute, Professional Property Insurance 176 Adjuster (PPIA) from the HurriClaim Training Academy, Certified 177 Adjuster (CA) from ALL LINES Training, Certified Claims Adjuster 178 (CCA) from AE21 Incorporated, Claims Adjuster Certified 179 Professional (CACP) from WebCE, Inc., Accredited Insurance 180 Claims Specialist (AICS) from Encore Claim Services, Certified 181 All Lines Adjuster (CALA) from Kaplan, or Universal Claims 182 Certification (UCC) from Claims and Litigation Management 183 Alliance (CLM) whose curriculum has been approved by the 184 department and which includes comprehensive analysis of basic 185 property and casualty lines of insurance and testing at least 186 equal to that of standard department testing for the all-lines 187 adjuster license. The department shall adopt rules establishing 188 standards for the approval of curriculum. 189 Section 5.Section 626.856, Florida Statutes, is amended to 190 read: 191 626.856Company employee adjuster defined.A company 192 employee adjuster means a person licensed as an all-lines 193 adjuster who is appointed and employed on an insurers staff of 194 adjusters, by an affiliate, or by a wholly owned subsidiary of 195 the insurer, and who undertakes on behalf of such insurer or 196 other insurers under common control or ownership to ascertain 197 and determine the amount of any claim, loss, or damage payable 198 under a contract of insurance, or undertakes to effect 199 settlement of such claim, loss, or damage. 200 Section 6.Paragraph (j) of subsection (2) of section 201 627.062, Florida Statutes, is amended to read: 202 627.062Rate standards. 203 (2)As to all such classes of insurance: 204 (j)With respect to residential property insurance rate 205 filings, the rate filing: 206 1.Must account for mitigation measures undertaken by 207 policyholders to reduce hurricane losses. 208 2.May use a modeling indication that is the weighted or 209 straight average of two or more hurricane loss projection models 210 found by the commission to be accurate or reliable pursuant to 211 s. 627.0628. 212 213 The provisions of this subsection do not apply to workers 214 compensation, employers liability insurance, and motor vehicle 215 insurance. 216 Section 7.Paragraph (b) of subsection (2) of section 217 627.0628, Florida Statutes, is amended to read: 218 627.0628Florida Commission on Hurricane Loss Projection 219 Methodology; public records exemption; public meetings 220 exemption. 221 (2)COMMISSION CREATED. 222 (b)The commission shall consist of the following 12 223 members: 224 1.The insurance consumer advocate. 225 2.The senior employee of the State Board of Administration 226 responsible for operations of the Florida Hurricane Catastrophe 227 Fund. 228 3.The Executive Director of the Citizens Property 229 Insurance Corporation. 230 4.The Director of the Division of Emergency Management, or 231 the directors designee, provided such designee is a full-time 232 employee of the division. 233 5.The actuary member of the Florida Hurricane Catastrophe 234 Fund Advisory Council. 235 6.An employee of the office who is an actuary responsible 236 for property insurance rate filings and who is appointed by the 237 director of the office. 238 7.Five members appointed by the Chief Financial Officer, 239 as follows: 240 a.An actuary who is employed full time by a property and 241 casualty insurer that was responsible for at least 1 percent of 242 the aggregate statewide direct written premium for homeowner 243 insurance in the calendar year preceding the members 244 appointment to the commission. 245 b.An expert in insurance finance who is a full-time member 246 of the faculty of the State University System and who has a 247 background in actuarial science. 248 c.An expert in statistics who is a full-time member of the 249 faculty of the State University System and who has a background 250 in insurance. 251 d.An expert in computer system design who is a full-time 252 member of the faculty of the State University System. 253 e.An expert in meteorology who is a full-time member of 254 the faculty of the State University System and who specializes 255 in hurricanes. 256 8.A licensed professional structural engineer who is a 257 full-time faculty member in the State University System and who 258 has expertise in wind mitigation techniques. This appointment 259 shall be made by the Governor. 260 Section 8.Subsection (9) is added to section 627.0629, 261 Florida Statutes, to read: 262 627.0629Residential property insurance; rate filings. 263 (9)An insurer may file with the office a personal lines 264 residential property insurance rating plan that provides 265 justified premium discounts, credits, or other rate 266 differentials based on windstorm mitigation construction 267 standards developed by an independent, not-for-profit scientific 268 research organization, if such standards meet the requirements 269 of this section. 270 Section 9.Section 627.0665, Florida Statutes, is amended 271 to read: 272 627.0665Automatic bank withdrawal agreements; notification 273 required.Any insurer licensed to issue insurance in this the 274 state who has an automatic bank withdrawal agreement with an 275 insured party for the payment of insurance premiums for any type 276 of insurance shall give the named insured at least 10 15 days 277 advance written notice of any increase in policy premiums that 278 results in the next automatic bank withdrawal being increased by 279 more than $10. Such notice must be provided before prior to any 280 automatic bank withdrawal containing the of an increased premium 281 amount. 282 Section 10.Paragraph (a) of subsection (6) of section 283 627.351, Florida Statutes, is amended to read: 284 627.351Insurance risk apportionment plans. 285 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 286 (a)The public purpose of this subsection is to ensure that 287 there is an orderly market for property insurance for residents 288 and businesses of this state. 289 1.The Legislature finds that private insurers are 290 unwilling or unable to provide affordable property insurance 291 coverage in this state to the extent sought and needed. The 292 absence of affordable property insurance threatens the public 293 health, safety, and welfare and likewise threatens the economic 294 health of the state. The state therefore has a compelling public 295 interest and a public purpose to assist in assuring that 296 property in this the state is insured and that it is insured at 297 affordable rates so as to facilitate the remediation, 298 reconstruction, and replacement of damaged or destroyed property 299 in order to reduce or avoid the negative effects otherwise 300 resulting to the public health, safety, and welfare, to the 301 economy of the state, and to the revenues of the state and local 302 governments which are needed to provide for the public welfare. 303 It is necessary, therefore, to provide affordable property 304 insurance to applicants who are in good faith entitled to 305 procure insurance through the voluntary market but are unable to 306 do so. The Legislature intends, therefore, that affordable 307 property insurance be provided and that it continue to be 308 provided, as long as necessary, through Citizens Property 309 Insurance Corporation, a government entity that is an integral 310 part of the state, and that is not a private insurance company. 311 To that end, the corporation shall strive to increase the 312 availability of affordable property insurance in this state, 313 while achieving efficiencies and economies, and while providing 314 service to policyholders, applicants, and agents which is no 315 less than the quality generally provided in the voluntary 316 market, for the achievement of the foregoing public purposes. 317 Because it is essential for this government entity to have the 318 maximum financial resources to pay claims following a 319 catastrophic hurricane, it is the intent of the Legislature that 320 the corporation continue to be an integral part of the state and 321 that the income of the corporation be exempt from federal income 322 taxation and that interest on the debt obligations issued by the 323 corporation be exempt from federal income taxation. 324 2.The Residential Property and Casualty Joint Underwriting 325 Association originally created by this statute shall be known as 326 the Citizens Property Insurance Corporation. The corporation 327 shall provide insurance for residential and commercial property, 328 for applicants who are entitled, but, in good faith, are unable 329 to procure insurance through the voluntary market. The 330 corporation shall operate pursuant to a plan of operation 331 approved by order of the Financial Services Commission. The plan 332 is subject to continuous review by the commission. The 333 commission may, by order, withdraw approval of all or part of a 334 plan if the commission determines that conditions have changed 335 since approval was granted and that the purposes of the plan 336 require changes in the plan. For the purposes of this 337 subsection, residential coverage includes both personal lines 338 residential coverage, which consists of the type of coverage 339 provided by homeowner, mobile home owner, dwelling, tenant, 340 condominium unit owner, and similar policies; and commercial 341 lines residential coverage, which consists of the type of 342 coverage provided by condominium association, apartment 343 building, and similar policies. 344 3.With respect to coverage for personal lines residential 345 structures: 346 a.Effective January 1, 2014, a structure that has a 347 dwelling replacement cost of $1 million or more, or a single 348 condominium unit that has a combined dwelling and contents 349 replacement cost of $1 million or more, is not eligible for 350 coverage by the corporation. Such dwellings insured by the 351 corporation on December 31, 2013, may continue to be covered by 352 the corporation until the end of the policy term. The office 353 shall approve the method used by the corporation for valuing the 354 dwelling replacement cost for the purposes of this subparagraph. 355 If a policyholder is insured by the corporation before being 356 determined to be ineligible pursuant to this subparagraph and 357 such policyholder files a lawsuit challenging the determination, 358 the policyholder may remain insured by the corporation until the 359 conclusion of the litigation. 360 b.Effective January 1, 2015, a structure that has a 361 dwelling replacement cost of $900,000 or more, or a single 362 condominium unit that has a combined dwelling and contents 363 replacement cost of $900,000 or more, is not eligible for 364 coverage by the corporation. Such dwellings insured by the 365 corporation on December 31, 2014, may continue to be covered by 366 the corporation only until the end of the policy term. 367 c.Effective January 1, 2016, a structure that has a 368 dwelling replacement cost of $800,000 or more, or a single 369 condominium unit that has a combined dwelling and contents 370 replacement cost of $800,000 or more, is not eligible for 371 coverage by the corporation. Such dwellings insured by the 372 corporation on December 31, 2015, may continue to be covered by 373 the corporation until the end of the policy term. 374 d.Effective January 1, 2017, a structure that has a 375 dwelling replacement cost of $700,000 or more, or a single 376 condominium unit that has a combined dwelling and contents 377 replacement cost of $700,000 or more, is not eligible for 378 coverage by the corporation. Such dwellings insured by the 379 corporation on December 31, 2016, may continue to be covered by 380 the corporation until the end of the policy term. 381 382 The requirements of sub-subparagraphs b.-d. do not apply in 383 counties where the office determines there is not a reasonable 384 degree of competition. In such counties a personal lines 385 residential structure that has a dwelling replacement cost of 386 less than $1 million, or a single condominium unit that has a 387 combined dwelling and contents replacement cost of less than $1 388 million, is eligible for coverage by the corporation. 389 4.It is the intent of the Legislature that policyholders, 390 applicants, and agents of the corporation receive service and 391 treatment of the highest possible level but never less than that 392 generally provided in the voluntary market. It is also intended 393 that the corporation be held to service standards no less than 394 those applied to insurers in the voluntary market by the office 395 with respect to responsiveness, timeliness, customer courtesy, 396 and overall dealings with policyholders, applicants, or agents 397 of the corporation. 398 5.a.Effective January 1, 2009, a personal lines 399 residential structure that is located in the wind-borne debris 400 region, as defined in s. 1609.2, International Building Code 401 (2006), and that has an insured value on the structure of 402 $750,000 or more is not eligible for coverage by the corporation 403 unless the structure has opening protections as required under 404 the Florida Building Code for a newly constructed residential 405 structure in that area. A residential structure is deemed to 406 comply with this sub-subparagraph if it has shutters or opening 407 protections on all openings and if such opening protections 408 complied with the Florida Building Code at the time they were 409 installed. 410 b.Any major structure, as defined in s. 161.54(6)(a), that 411 is newly constructed, or rebuilt, repaired, restored, or 412 remodeled to increase the total square footage of finished area 413 by more than 25 percent, pursuant to a permit applied for after 414 July 1, 2015, is not eligible for coverage by the corporation if 415 the structure is seaward of the coastal construction control 416 line established pursuant to s. 161.053 or is within the Coastal 417 Barrier Resources System as designated by 16 U.S.C. ss. 3501 418 3510. 419 6.With respect to wind-only coverage for commercial lines 420 residential condominiums, effective July 1, 2014, a condominium 421 may shall be deemed ineligible for coverage when if 50 percent 422 or more of the units are rented more than eight times in a 423 calendar year for a rental agreement period of less than 30 424 days. 425 Section 11.Subsection (1) of section 627.421, Florida 426 Statutes, is amended to read: 427 627.421Delivery of policy. 428 (1)Subject to the insurers requirement as to payment of 429 premium, every policy shall be mailed, delivered, or 430 electronically transmitted to the insured or to the person 431 entitled thereto not later than 60 days after the effectuation 432 of coverage. Notwithstanding any other provision of law, an 433 insurer may allow a policyholder of personal lines insurance to 434 affirmatively elect delivery of the policy documents, including, 435 but not limited to, policies, endorsements, notices, or 436 documents, by electronic means in lieu of delivery by mail. 437 Electronic transmission of a policy for commercial risks, 438 including, but not limited to, workers compensation and 439 employers liability, commercial automobile liability, 440 commercial automobile physical damage, commercial lines 441 residential property, commercial nonresidential property, 442 farmowners insurance, and the types of commercial lines risks 443 set forth in s. 627.062(3)(d), constitutes delivery to the 444 insured or to the person entitled to delivery, unless the 445 insured or the person entitled to delivery communicates to the 446 insurer in writing or electronically that he or she does not 447 agree to delivery by electronic means. Electronic transmission 448 shall include a notice to the insured or to the person entitled 449 to delivery of a policy of his or her right to receive the 450 policy via United States mail rather than via electronic 451 transmission. A paper copy of the policy shall be provided to 452 the insured or to the person entitled to delivery at his or her 453 request. 454 Section 12.Paragraph (d) of subsection (4) of section 455 627.701, Florida Statutes, is amended to read: 456 627.701Liability of insureds; coinsurance; deductibles. 457 (4) 458 (d)1.A personal lines residential property insurance 459 policy covering a risk valued at less than $500,000 may not have 460 a hurricane deductible in excess of 10 percent of the policy 461 dwelling limits, unless the following conditions are met: 462 a.The policyholder must personally write or type and 463 provide to the insurer the following statement in his or her own 464 handwriting and sign his or her name, which must also be signed 465 by every other named insured on the policy, and dated: I do not 466 want the insurance on my home to pay for the first (specify 467 dollar value) of damage from hurricanes. I will pay those costs. 468 My insurance will not. 469 b.If the structure insured by the policy is subject to a 470 mortgage or lien, the policyholder must provide the insurer with 471 a written statement from the mortgageholder or lienholder 472 indicating that the mortgageholder or lienholder approves the 473 policyholder electing to have the specified deductible. 474 2.A deductible subject to the requirements of this 475 paragraph applies for the term of the policy and for each 476 renewal thereafter. Changes to the deductible percentage may be 477 implemented only as of the date of renewal. 478 3.An insurer shall keep the original copy of the signed 479 statement required by this paragraph, electronically or 480 otherwise, and provide a copy to the policyholder providing the 481 signed statement. A signed statement meeting the requirements of 482 this paragraph creates a presumption that there was an informed, 483 knowing election of coverage. 484 4.The commission shall adopt rules providing appropriate 485 alternative methods for providing the statements required by 486 this section for policyholders who have a handicapping or 487 disabling condition that prevents them from providing a 488 handwritten statement. 489 Section 13.Paragraph (a) of subsection (2) and subsection 490 (3) of section 627.712, Florida Statutes, are amended to read: 491 627.712Residential windstorm coverage required; 492 availability of exclusions for windstorm or contents. 493 (2)A property insurer must make available, at the option 494 of the policyholder, an exclusion of windstorm coverage. 495 (a)The coverage may be excluded only if: 496 1.When the policyholder is a natural person, the 497 policyholder personally writes or types and provides to the 498 insurer the following statement in his or her own handwriting 499 and signs his or her name, which must also be signed by every 500 other named insured on the policy, and dated: I do not want the 501 insurance on my (home/mobile home/condominium unit) to pay for 502 damage from windstorms. I will pay those costs. My insurance 503 will not. 504 2.When the policyholder is other than a natural person, 505 the policyholder provides to the insurer on the policyholders 506 letterhead the following statement that must be signed by the 507 policyholders authorized representative and dated: ...(Name of 508 entity)... does not want the insurance on its ...(type of 509 structure)... to pay for damage from windstorms. ...(Name of 510 entity)... will be responsible for these costs. ...(Name of 511 entitys)... insurance will not. 512 (3)An insurer issuing a residential property insurance 513 policy, except for a condominium unit owner policy or a tenant 514 policy, must make available, at the option of the policyholder, 515 an exclusion of coverage for the contents. The coverage may be 516 excluded only if the policyholder personally writes or types and 517 provides to the insurer the following statement in his or her 518 own handwriting and signs his or her signature, which must also 519 be signed by every other named insured on the policy, and dated: 520 I do not want the insurance on my (home/mobile home) to pay for 521 the costs to repair or replace any contents that are damaged. I 522 will pay those costs. My insurance will not. 523 Section 14.Effective upon this act becoming a law, 524 paragraph (b) of subsection (1) and paragraph (a) of subsection 525 (9) of section 627.7152, Florida Statutes, are amended to read: 526 627.7152Assignment agreements. 527 (1)As used in this section, the term: 528 (b)Assignment agreement means any instrument by which 529 post-loss benefits under a residential property insurance policy 530 or commercial property insurance policy, as that term is defined 531 in s. 627.0625(1), are assigned or transferred, or acquired in 532 any manner, in whole or in part, to or from a person providing 533 services, including, but not limited to, services to inspect, 534 protect, repair, restore, or replace property or to mitigate 535 against further damage to the property. The term does not 536 include any instrument by which a licensed public adjuster as 537 defined in s. 626.854(1) receives any compensation, payment, 538 commission, fee, or other thing of value for providing services 539 under such licensure. 540 (9)(a)An assignee must provide the named insured, insurer, 541 and the assignor, if not the named insured, with a written 542 notice of intent to initiate litigation before filing suit under 543 the policy. Such notice must be served at least 10 business days 544 before filing suit, but not before the insurer has made a 545 determination of coverage under s. 627.70131, by certified mail, 546 return receipt requested, to the name and mailing address 547 designated by the insurer in the policy forms or by electronic 548 delivery to the e-mail address designated by the insurer in the 549 policy forms at least 10 business days before filing suit, but 550 may not be served before the insurer has made a determination of 551 coverage under s. 627.70131. The notice must specify the damages 552 in dispute, the amount claimed, and a presuit settlement demand. 553 Concurrent with the notice, and as a precondition to filing 554 suit, the assignee must provide the named insured, insurer, and 555 the assignor, if not the named insured, a detailed written 556 invoice or estimate of services, including itemized information 557 on equipment, materials, and supplies; the number of labor 558 hours; and, in the case of work performed, proof that the work 559 has been performed in accordance with accepted industry 560 standards. 561 Section 15.Section 627.7276, Florida Statutes, is amended 562 to read: 563 627.7276Notice of limited coverage. 564 (1)An automobile policy that does not contain coverage for 565 bodily injury and property damage must include a notice be 566 clearly stamped or printed to the effect that such coverage is 567 not included in the policy in the following manner: 568 569 THIS POLICY DOES NOT PROVIDE BODILY INJURY AND 570 PROPERTY DAMAGE LIABILITY INSURANCE OR ANY OTHER 571 COVERAGE FOR WHICH A SPECIFIC PREMIUM CHARGE IS NOT 572 MADE, AND DOES NOT COMPLY WITH ANY FINANCIAL 573 RESPONSIBILITY LAW. 574 575 (2)This notice legend must accompany appear on the policy 576 declarations declaration page and on the filing back of the 577 policy and be printed in a contrasting color from that used on 578 the policy and in type size larger than the largest type used in 579 the text at least as large as the type size used on the 580 declarations page thereof, as an overprint or by a rubber stamp 581 impression. 582 Section 16.Section 634.317, Florida Statutes, is amended 583 to read: 584 634.317License and appointment required; exemptions.A No 585 person may not solicit, negotiate, or effectuate home warranty 586 contracts for remuneration in this state unless such person is 587 licensed and appointed as a sales representative. A licensed and 588 appointed sales representative is shall be directly responsible 589 and accountable for all acts of the licensees employees. A 590 licensed personal lines or general lines agent is not required 591 to be licensed as a sales representative under this section to 592 solicit, negotiate, advertise, or sell home warranty contracts. 593 Section 17.Section 634.419, Florida Statutes, is amended 594 to read: 595 634.419License and appointment required; exemptions.A No 596 person or an entity may not shall solicit, negotiate, advertise, 597 or effectuate service warranty contracts in this state unless 598 such person or entity is licensed and appointed as a sales 599 representative. Sales representatives are shall be responsible 600 for the actions of persons under their supervision. However, a 601 service warranty association licensed as such under this part is 602 shall not be required to be licensed and appointed as a sales 603 representative to solicit, negotiate, advertise, or effectuate 604 its products. A licensed personal lines or general lines agent 605 is not required to be licensed as a sales representative under 606 this section to solicit, negotiate, advertise, or sell service 607 warranty contracts. 608 Section 18.Effective June 1, 2023, for the purpose of 609 incorporating the amendment made by this act to section 215.555, 610 Florida Statutes, in a reference thereto, subsection (10) of 611 section 624.424, Florida Statutes, is reenacted to read: 612 624.424Annual statement and other information. 613 (10)Each insurer or insurer group doing business in this 614 state shall file on a quarterly basis in conjunction with 615 financial reports required by paragraph (1)(a) a supplemental 616 report on an individual and group basis on a form prescribed by 617 the commission with information on personal lines and commercial 618 lines residential property insurance policies in this state. The 619 supplemental report shall include separate information for 620 personal lines property policies and for commercial lines 621 property policies and totals for each item specified, including 622 premiums written for each of the property lines of business as 623 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 624 shall include the following information for each county on a 625 monthly basis: 626 (a)Total number of policies in force at the end of each 627 month. 628 (b)Total number of policies canceled. 629 (c)Total number of policies nonrenewed. 630 (d)Number of policies canceled due to hurricane risk. 631 (e)Number of policies nonrenewed due to hurricane risk. 632 (f)Number of new policies written. 633 (g)Total dollar value of structure exposure under policies 634 that include wind coverage. 635 (h)Number of policies that exclude wind coverage. 636 Section 19.Effective June 1, 2023, for the purpose of 637 incorporating the amendment made by this act to section 215.555, 638 Florida Statutes, in a reference thereto, paragraph (v) of 639 subsection (6) of section 627.351, Florida Statutes, is 640 reenacted to read: 641 627.351Insurance risk apportionment plans. 642 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 643 (v)1.Effective July 1, 2002, policies of the Residential 644 Property and Casualty Joint Underwriting Association become 645 policies of the corporation. All obligations, rights, assets and 646 liabilities of the association, including bonds, note and debt 647 obligations, and the financing documents pertaining to them 648 become those of the corporation as of July 1, 2002. The 649 corporation is not required to issue endorsements or 650 certificates of assumption to insureds during the remaining term 651 of in-force transferred policies. 652 2.Effective July 1, 2002, policies of the Florida 653 Windstorm Underwriting Association are transferred to the 654 corporation and become policies of the corporation. All 655 obligations, rights, assets, and liabilities of the association, 656 including bonds, note and debt obligations, and the financing 657 documents pertaining to them are transferred to and assumed by 658 the corporation on July 1, 2002. The corporation is not required 659 to issue endorsements or certificates of assumption to insureds 660 during the remaining term of in-force transferred policies. 661 3.The Florida Windstorm Underwriting Association and the 662 Residential Property and Casualty Joint Underwriting Association 663 shall take all actions necessary to further evidence the 664 transfers and provide the documents and instruments of further 665 assurance as may reasonably be requested by the corporation for 666 that purpose. The corporation shall execute assumptions and 667 instruments as the trustees or other parties to the financing 668 documents of the Florida Windstorm Underwriting Association or 669 the Residential Property and Casualty Joint Underwriting 670 Association may reasonably request to further evidence the 671 transfers and assumptions, which transfers and assumptions, 672 however, are effective on the date provided under this paragraph 673 whether or not, and regardless of the date on which, the 674 assumptions or instruments are executed by the corporation. 675 Subject to the relevant financing documents pertaining to their 676 outstanding bonds, notes, indebtedness, or other financing 677 obligations, the moneys, investments, receivables, choses in 678 action, and other intangibles of the Florida Windstorm 679 Underwriting Association shall be credited to the coastal 680 account of the corporation, and those of the personal lines 681 residential coverage account and the commercial lines 682 residential coverage account of the Residential Property and 683 Casualty Joint Underwriting Association shall be credited to the 684 personal lines account and the commercial lines account, 685 respectively, of the corporation. 686 4.Effective July 1, 2002, a new applicant for property 687 insurance coverage who would otherwise have been eligible for 688 coverage in the Florida Windstorm Underwriting Association is 689 eligible for coverage from the corporation as provided in this 690 subsection. 691 5.The transfer of all policies, obligations, rights, 692 assets, and liabilities from the Florida Windstorm Underwriting 693 Association to the corporation and the renaming of the 694 Residential Property and Casualty Joint Underwriting Association 695 as the corporation does not affect the coverage with respect to 696 covered policies as defined in s. 215.555(2)(c) provided to 697 these entities by the Florida Hurricane Catastrophe Fund. The 698 coverage provided by the fund to the Florida Windstorm 699 Underwriting Association based on its exposures as of June 30, 700 2002, and each June 30 thereafter shall be redesignated as 701 coverage for the coastal account of the corporation. 702 Notwithstanding any other provision of law, the coverage 703 provided by the fund to the Residential Property and Casualty 704 Joint Underwriting Association based on its exposures as of June 705 30, 2002, and each June 30 thereafter shall be transferred to 706 the personal lines account and the commercial lines account of 707 the corporation. Notwithstanding any other provision of law, the 708 coastal account shall be treated, for all Florida Hurricane 709 Catastrophe Fund purposes, as if it were a separate 710 participating insurer with its own exposures, reimbursement 711 premium, and loss reimbursement. Likewise, the personal lines 712 and commercial lines accounts shall be viewed together, for all 713 fund purposes, as if the two accounts were one and represent a 714 single, separate participating insurer with its own exposures, 715 reimbursement premium, and loss reimbursement. The coverage 716 provided by the fund to the corporation shall constitute and 717 operate as a full transfer of coverage from the Florida 718 Windstorm Underwriting Association and Residential Property and 719 Casualty Joint Underwriting Association to the corporation. 720 Section 20.For the purpose of incorporating the amendment 721 made by this act to section 626.221, Florida Statutes, in a 722 reference thereto, paragraph (b) of subsection (1) of section 723 626.8734, Florida Statutes, is reenacted to read: 724 626.8734Nonresident all-lines adjuster license 725 qualifications. 726 (1)The department shall issue a license to an applicant 727 for a nonresident all-lines adjuster license upon determining 728 that the applicant has paid the applicable license fees required 729 under s. 624.501 and: 730 (b)Has passed to the satisfaction of the department a 731 written Florida all-lines adjuster examination of the scope 732 prescribed in s. 626.241(6); however, the requirement for the 733 examination does not apply to: 734 1.An applicant who is licensed as an all-lines adjuster in 735 his or her home state if that state has entered into a 736 reciprocal agreement with the department; 737 2.An applicant who is licensed as a nonresident all-lines 738 adjuster in a state other than his or her home state and a 739 reciprocal agreement with the appropriate official of the state 740 of licensure has been entered into with the department; or 741 3.An applicant who holds a certification set forth in s. 742 626.221(2)(j). 743 Section 21.For the purpose of incorporating the amendment 744 made by this act to section 626.856, Florida Statutes, in a 745 reference thereto, paragraph (e) of subsection (1) of section 746 626.865, Florida Statutes, is reenacted to read: 747 626.865Public adjusters qualifications, bond. 748 (1)The department shall issue a license to an applicant 749 for a public adjusters license upon determining that the 750 applicant has paid the applicable fees specified in s. 624.501 751 and possesses the following qualifications: 752 (e)Has been licensed in this state as an all-lines 753 adjuster, and has been appointed on a continual basis for the 754 previous 6 months as a public adjuster apprentice under s. 755 626.8561, as an independent adjuster under s. 626.855, or as a 756 company employee adjuster under s. 626.856. 757 Section 22.Effective upon this act becoming a law, for the 758 purpose of incorporating the amendment made by this act to 759 section 627.7152, Florida Statutes, in references thereto, 760 subsection (1) and paragraph (d) of subsection (2) of section 761 627.7153, Florida Statutes, are reenacted to read: 762 627.7153Policies restricting assignment of post-loss 763 benefits under a property insurance policy. 764 (1)As used in this section, the term assignment 765 agreement has the same meaning as provided in s. 627.7152. 766 (2)An insurer may make available a policy that restricts 767 in whole or in part an insureds right to execute an assignment 768 agreement only if all of the following conditions are met: 769 (d)Each restricted policy include on its face the 770 following notice in 18-point uppercase and boldfaced type: 771 772 THIS POLICY DOES NOT ALLOW THE UNRESTRICTED ASSIGNMENT 773 OF POST-LOSS INSURANCE BENEFITS. BY SELECTING THIS 774 POLICY, YOU WAIVE YOUR RIGHT TO FREELY ASSIGN OR 775 TRANSFER THE POST-LOSS PROPERTY INSURANCE BENEFITS 776 AVAILABLE UNDER THIS POLICY TO A THIRD PARTY OR TO 777 OTHERWISE FREELY ENTER INTO AN ASSIGNMENT AGREEMENT AS 778 THE TERM IS DEFINED IN SECTION 627.7152 OF THE FLORIDA 779 STATUTES. 780 Section 23.Except as otherwise expressly provided in this 781 act and except for this section, which shall take effect upon 782 this act becoming a law, this act shall take effect July 1, 783 2022.