FL
Florida House Bill H0505

Florida 2023 Regular Session

Florida House Bill H0505 Compare Versions

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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
15-An act relating to insurance; amending s. 327.54, 2
16-F.S.; prohibiting liveries from leasing or renting or 3
17-offering to lease or to rent livery vessels unless 4
18-certain duties relating to insurance are fulfilled; 5
19-amending s. 624.4621, F.S.; specifying a qualific ation 6
20-for a local governmental entity's representative on a 7
21-self-insurer's governing body; amending s. 626.8411, 8
22-F.S.; correcting a cross -reference; amending s. 9
23-627.062, F.S.; revising requirements for residential 10
24-property insurance rate filings; amending s. 627.0628, 11
25-F.S.; authorizing the appointment of certain designees 12
26-to the Florida Commission on Hurricane Loss Projection 13
27-Methodology; providing requirements for such 14
28-designees; amending s. 627.0629, F.S.; authorizing 15
29-insurers to file with the Office of I nsurance 16
30-Regulation personal lines residential property 17
31-insurance rating plans relating to windstorm 18
32-mitigation construction standards; providing 19
33-requirements for such filings; amending s. 627.0665, 20
34-F.S.; revising the timeframe for notices from insurers 21
35-to insureds of automatic bank withdrawal increases; 22
36-specifying the increase threshold for such notices; 23
37-amending s. 627.421, F.S.; authorizing electronic 24
38-delivery of insurance policy documents for certain 25
15+An act relating to insurance; amending s. 626.8411, 2
16+F.S.; correcting a cross -reference; amending s. 3
17+627.062, F.S.; revising requirements for residential 4
18+property insurance rate filings; amending s. 627.0628, 5
19+F.S.; authorizing the appointment of certain designees 6
20+to the Florida Commission on Hurricane Loss Projection 7
21+Methodology; providing requirements for such 8
22+designees; amending s. 627.0629, F.S.; authori zing 9
23+insurers to file with the Office of Insurance 10
24+Regulation personal lines residential property 11
25+insurance rating plans relating to windstorm 12
26+mitigation construction standards; providing 13
27+requirements for such filings; amending s. 627.0665, 14
28+F.S.; revising the timeframe for notices from insurers 15
29+to insureds of automatic bank withdrawal increases; 16
30+specifying the increase threshold for such notices; 17
31+amending s. 627.421, F.S.; authorizing electronic 18
32+delivery of insurance policy documents for certain 19
33+health insurance policies, certificates of coverage, 20
34+and contracts; eliminating requirements for paper 21
35+delivery of certain insurance policies; amending s. 22
36+627.712, F.S.; authorizing insurance policyholders to 23
37+type the intent to decline certain coverage instead of 24
38+handwriting it; amending s. 627.7276, F.S.; revising 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51-health insurance policies, certificates of coverage, 26
52-and contracts; eliminating requirements for paper 27
53-delivery of certain insurance policies; amending s. 28
54-627.701, F.S.; revising and providing alternative 29
55-hurricane deductible amounts for personal lines 30
56-residential property insurance policies covering risks 31
57-with specified dwelling limits; amending s. 627.712, 32
58-F.S.; authorizing insurance policyholders to type the 33
59-intent to decline certain coverage; amending s. 34
60-627.7276, F.S.; revising the requirements for the 35
61-notice of certain automobile policies; amending s. 36
62-628.905, F.S.; providing a foreign pure captive 37
63-insurance company may do business in the state under 38
64-certain circumstances; amending s. 634.041, F.S.; 39
65-revising circumstances under which service agreement 40
66-companies do not have to establish and maintain 41
67-unearned premium reserves; providing an effective 42
68-date. 43
69- 44
70-Be It Enacted by the Legislature of the State of Florida: 45
71- 46
72- Section 1. Subsection (7) of section 327.54, Florida 47
73-Statutes, is amended to read: 48
74- 327.54 Liveries; safety regulations; penalty. — 49
75- (7) A livery may not lease or rent or offer to lease or 50
51+the requirements for the notice of certain automobile 26
52+policies; providing an effective date. 27
53+ 28
54+Be It Enacted by the Legislature of the State of Florida: 29
55+ 30
56+ Section 1. Paragraph (d) of subsection (2) of section 31
57+626.8411, Florida Statutes, is amended to read: 32
58+ 626.8411 Application of Florida Insurance Code provisions 33
59+to title insurance agents or agencies. — 34
60+ (2) The following provisions of part I do not apply to 35
61+title insurance agents or title insurance agencies: 36
62+ (d) Section 626.172, except for paragraph (2)(e) (2)(f) of 37
63+that section, relating to agent in full -time charge. 38
64+ Section 2. Paragraph (j) of subsection (2) of section 39
65+627.062, Florida Statutes, is amended to read: 40
66+ 627.062 Rate standards. — 41
67+ (2) As to all such classes of insurance: 42
68+ (j) With respect to residential property insurance rate 43
69+filings, the rate filing : 44
70+ 1. Must account for mitigation measures undertaken by 45
71+policyholders to reduce hurricane losses. 46
72+ 2. May use a modeling indica tion that is the weighted or 47
73+straight average of two or more hurricane loss projection models 48
74+found by the Florida Commission on Hurricane Loss Projection 49
75+Methodology to be accurate or reliable pursuant to s. 627.0628. 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88-rent any livery vessel unless the livery : first 51
89- (a) Obtains and carries in full force and effect a policy 52
90-from a licensed insurance carrier in this state which insures 53
91-the livery and the renter against any accident, loss, injury, 54
92-property damage, or other casualty caused by or resulting from 55
93-the operation of the livery vessel. The insurance policy must 56
94-provide coverage of at least $500,000 per person and $1 million 57
95-per event. The livery shall have pr oof of such insurance 58
96-available for inspection at the location where livery vessels 59
97-are being leased or rented, or offered for lease or rent, and 60
98-shall provide to each renter the insurance carrier's name and 61
99-address and the insurance policy number ; and 62
100- (b) Either: 63
101- 1. Obtains and carries in full force and effect a policy 64
102-from a licensed insurance carrier in this state which insures 65
103-the renter in the same manner and amounts of the policy obtained 66
104-by the livery under paragraph (a) and provides to each rent er 67
105-the insurance carrier's name and address and the insurance 68
106-policy number; or 69
107- 2. Presents the renter with the opportunity to purchase 70
108-coverage that insures the renter against any accident, loss, 71
109-injury, property damage, or other casualty caused by or 72
110-resulting from the operation of the livery vessel of at least 73
111-$500,000 per person and $1 million per event. If the renter 74
112-chooses not to purchase the coverage, the livery must obtain a 75
88+ 51
89+The provisions of this subsection do not apply to workers' 52
90+compensation, employer's liability insurance, and motor vehicle 53
91+insurance. 54
92+ Section 3. Paragraph (b) of subsection (2) of section 55
93+627.0628, Florida Statutes, is amended to read: 56
94+ 627.0628 Florida Commission on Hurricane Loss Projection 57
95+Methodology; public records exemption; public meetings 58
96+exemption.— 59
97+ (2) COMMISSION CREATED. — 60
98+ (b) The commission shall consist of the following 12 61
99+members: 62
100+ 1. The insurance consumer advocate. 63
101+ 2. The senior employee of the State Board of 64
102+Administration responsible for operations of the Florida 65
103+Hurricane Catastrophe Fund. 66
104+ 3. The Executive Director of the Citizens Property 67
105+Insurance Corporation or the director's designee. Such designee 68
106+must be a full-time employee of the corporation with actuarial 69
107+science experience or senior operations management experience . 70
108+ 4. The Director of the Division of Emergency Management or 71
109+the director's designee. Such designee must be a full -time 72
110+employee of the division. 73
111+ 5. The actuary member of the Florida Hurricane Catastrophe 74
112+Fund Advisory Council. 75
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121121 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125-signed acknowledgement from the renter which includes the 76
126-following statement: 77
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128-I UNDERSTAND THAT I AM REFUSING TO PURCHASE A 79
129-VESSEL RENTAL INSURANCE POLICY FOR COVERAGE OF AT 80
130-LEAST $500,000 PER PERSON AND $1 MILLION PER EVENT 81
131-FOR ANY DAMAGE OR INJURY CAUSED DIRECTLY OR 82
132-INDIRECTLY BY MY OPERATION OF THE VESSEL. 83
133- 84
134-THE VESSEL RENTAL INSURANCE POLICY COVERAGE IS 85
135-BEING OFFERED TO ME AT THE FOLLOWING PRICE: 86
136-(INSERT BINDABLE PRICE OF INSURANCE BEING 87
137-DECLINED). 88
138- 89
139-I UNDERSTAND THAT I MAY NOT HAVE OTHER INSURANCE 90
140-TO COVER ANY DAMAGE OR INJURY CAUSED DIRECTLY OR 91
141-INDIRECTLY BY MY OPERATI ON OF THE VESSEL AND THAT 92
142-I MAY BE PERSONALLY LIABLE FOR ANY DAMAGE OR 93
143-INJURY DURING THE RENTAL PERIOD . 94
144- 95
145-This subsection does not apply to human -powered vessels. 96
146- Section 2. Subsection (12) is added to section 624.4621, 97
147-Florida Statutes, to read: 98
148- 624.4621 Group self-insurance funds.— 99
149- (12) For a local governmental entity that is a member of a 100
125+ 6. An employee of the office who is an actuary responsible 76
126+for property insurance rate filings and who is appointed by the 77
127+director of the office. 78
128+ 7. Five members appointed by the Chief Financial Officer, 79
129+as follows: 80
130+ a. An actuary who is employed full time by a property and 81
131+casualty insurer that was responsible for at least 1 percent of 82
132+the aggregate statewide direct written premium for homeowner 83
133+insurance in the calendar year preceding the member's 84
134+appointment to the commission. 85
135+ b. An expert in insurance finance who is a full -time 86
136+member of the faculty of the State University System and who has 87
137+a background in actuarial science. 88
138+ c. An expert in statistics wh o is a full-time member of 89
139+the faculty of the State University System and who has a 90
140+background in insurance. 91
141+ d. An expert in computer system design who is a full -time 92
142+member of the faculty of the State University System. 93
143+ e. An expert in meteorology who is a full-time member of 94
144+the faculty of the State University System and who specializes 95
145+in hurricanes. 96
146+ 8. A licensed professional structural engineer who is a 97
147+full-time faculty member in the State University System and who 98
148+has expertise in wind mitigati on techniques. This appointment 99
149+shall be made by the Governor. 100
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158158 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162-self-insurer established under this section, only an elected 101
163-official of the local governmental entity may be the local 102
164-governmental entity's representative on t he self-insurer's 103
165-governing body. 104
166- Section 3. Paragraph (d) of subsection (2) of section 105
167-626.8411, Florida Statutes, is amended to read: 106
168- 626.8411 Application of Florida Insurance Code provisions 107
169-to title insurance agents or agencies. — 108
170- (2) The following provisions of part I do not apply to 109
171-title insurance agents or title insurance agencies: 110
172- (d) Section 626.172, except for paragraph (2)(e) (2)(f) of 111
173-that section, relating to agent in full -time charge. 112
174- Section 4. Paragraph (j) of subsection (2) o f section 113
175-627.062, Florida Statutes, is amended to read: 114
176- 627.062 Rate standards. — 115
177- (2) As to all such classes of insurance: 116
178- (j) With respect to residential property insurance rate 117
179-filings, the rate filing : 118
180- 1. Must account for mitigation measures und ertaken by 119
181-policyholders to reduce hurricane losses. 120
182- 2. May use a modeling indication that is the weighted or 121
183-straight average of two or more hurricane loss projection models 122
184-found by the Florida Commission on Hurricane Loss Projection 123
185-Methodology to be accurate or reliable pursuant to s. 627.0628. 124
186- 125
162+ Section 4. Subsection (9) is added to section 627.0629, 101
163+Florida Statutes, to read: 102
164+ 627.0629 Residential property insurance; rate filings. — 103
165+ (9) An insurer may file with the office a pers onal lines 104
166+residential property insurance rating plan that provides 105
167+justified premium discounts, credits, or other rate 106
168+differentials based on windstorm mitigation construction 107
169+standards developed by an independent, nonprofit scientific 108
170+research organization, if such standards meet the requirements 109
171+of this section. Such plan must describe the manner in which the 110
172+insurer will document the existence of the mitigation features 111
173+and premium discounts, credits, or other rate differentials 112
174+created under such plan. 113
175+ Section 5. Section 627.0665, Florida Statutes, is amended 114
176+to read: 115
177+ 627.0665 Automatic bank withdrawal agreements; 116
178+notification required. —Any insurer licensed to issue insurance 117
179+in the state who has an automatic bank withdrawal agreement with 118
180+an insured party for the payment of insurance premiums for any 119
181+type of insurance shall give the named insured at least 10 15 120
182+days advance written notice of any increase in policy premiums 121
183+which results in the next automatic bank withdrawal being 122
184+increased by more than $10. Such notice must be provided before 123
185+prior to any automatic bank withdrawal containing the of an 124
186+increased premium. 125
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195195 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199-The provisions of this subsection do not apply to workers' 126
200-compensation, employer's liability insurance, and motor vehicle 127
201-insurance. 128
202- Section 5. Paragraph (b) of subsection (2) of section 129
203-627.0628, Florida Statutes, is amended to read: 130
204- 627.0628 Florida Commission on Hurricane Loss Projection 131
205-Methodology; public records exemption; public meetings 132
206-exemption.— 133
207- (2) COMMISSION CREATED. — 134
208- (b) The commission shall consist of the following 12 135
209-members: 136
210- 1. The insurance consumer advocate. 137
211- 2. The senior employee of the State Board of 138
212-Administration responsible for operations of the Florida 139
213-Hurricane Catastrophe Fund. 140
214- 3. The Executive Director of the Citizens Property 141
215-Insurance Corporation or the director's designee. Such designee 142
216-must be a full-time employee of the corporation with actuarial 143
217-science experience or senior operations management experience . 144
218- 4. The Director of the Division of Emergency Management or 145
219-the director's designee. Such designee must b e a full-time 146
220-employee of the division . 147
221- 5. The actuary member of the Florida Hurricane Catastrophe 148
222-Fund Advisory Council. 149
223- 6. An employee of the office who is an actuary responsible 150
199+ Section 6. Subsection (1) of section 627.421, Florida 126
200+Statutes, is amended to read: 127
201+ 627.421 Delivery of policy. — 128
202+ (1) Subject to the insurer's requirement as to payment of 129
203+premium, every policy shall be mailed, delivered, or 130
204+electronically transmitted to the insured or to the person 131
205+entitled thereto not later than 60 days after the effectuation 132
206+of coverage. Notwithstanding any other provision of law, an 133
207+insurer may allow a policyholder of personal lines insurance to 134
208+affirmatively elect delivery of the policy documents, including, 135
209+but not limited to, policies, endorsements, notices, or 136
210+documents, by electronic means in lieu of d elivery by mail. 137
211+Electronic transmission of a policy , related notices, and other 138
212+documents for individual and group health insurance policies or 139
213+certificates of coverage pursuant to parts VI and VII, 140
214+respectively; health maintenance contracts or certificat es of 141
215+coverage pursuant to part I of chapter 641; prepaid limited 142
216+health service contracts pursuant to part I of chapter 636; and 143
217+for commercial risks, including, but not limited to, workers' 144
218+compensation and employers' liability, commercial automobile 145
219+liability, commercial automobile physical damage, commercial 146
220+lines residential property, commercial nonresidential property, 147
221+farmowners insurance, and the types of commercial lines risks 148
222+set forth in s. 627.062(3)(d), constitutes delivery to the 149
223+insured or to the person entitled to delivery, unless the 150
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232232 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236-for property insurance rate filings and who is appointed by the 151
237-director of the office. 152
238- 7. Five members appointed by the Chief Financial Officer, 153
239-as follows: 154
240- a. An actuary who is employed full time by a property and 155
241-casualty insurer that was responsible for at least 1 percent of 156
242-the aggregate statewide direct written prem ium for homeowner 157
243-insurance in the calendar year preceding the member's 158
244-appointment to the commission. 159
245- b. An expert in insurance finance who is a full -time 160
246-member of the faculty of the State University System and who has 161
247-a background in actuarial science . 162
248- c. An expert in statistics who is a full -time member of 163
249-the faculty of the State University System and who has a 164
250-background in insurance. 165
251- d. An expert in computer system design who is a full -time 166
252-member of the faculty of the State University System. 167
253- e. An expert in meteorology who is a full -time member of 168
254-the faculty of the State University System and who specializes 169
255-in hurricanes. 170
256- 8. A licensed professional structural engineer who is a 171
257-full-time faculty member in the State University System and w ho 172
258-has expertise in wind mitigation techniques. This appointment 173
259-shall be made by the Governor. 174
260- Section 6. Subsection (9) is added to section 627.0629, 175
236+insured or the person entitled to delivery communicates to the 151
237+insurer in writing or electronically that he or she does not 152
238+agree to delivery by electronic means. Electronic transmission 153
239+shall include a notice t o the insured or to the person entitled 154
240+to delivery of a policy of his or her right to receive the 155
241+policy via United States mail rather than via electronic 156
242+transmission. A paper copy of the policy shall be provided to 157
243+the insured or to the person entitled to delivery at his or her 158
244+request. 159
245+ Section 7. Paragraph (a) of subsection (2) and subsection 160
246+(3) of section 627.712, Florida Statutes, are amended to read: 161
247+ 627.712 Residential windstorm coverage required; 162
248+availability of exclusions for windstorm or c ontents.— 163
249+ (2) A property insurer must make available, at the option 164
250+of the policyholder, an exclusion of windstorm coverage. 165
251+ (a) The coverage may be excluded only if: 166
252+ 1. When the policyholder is a natural person, the 167
253+policyholder personally writes or types and provides to the 168
254+insurer the following statement in his or her own handwriting 169
255+and signs his or her name, which must also be signed by every 170
256+other named insured on the policy, and dated: "I do not want the 171
257+insurance on my (home/mobile home/condom inium unit) to pay for 172
258+damage from windstorms. I will pay those costs. My insurance 173
259+will not." 174
260+ 2. When the policyholder is other than a natural person, 175
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269269 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273-Florida Statutes, to read: 176
274- 627.0629 Residential property insurance; rate filings. — 177
275- (9) An insurer may file with the office a personal lines 178
276-residential property insurance rating plan that provides 179
277-justified premium discounts, credits, or other rate 180
278-differentials based on windstorm mitigation construction 181
279-standards developed by an independent, nonprof it scientific 182
280-research organization, if such standards meet the requirements 183
281-of this section. Such plan must describe the manner in which the 184
282-insurer will document the existence of the mitigation features 185
283-and premium discounts, credits, or other rate diffe rentials 186
284-created under such plan. 187
285- Section 7. Section 627.0665, Florida Statutes, is amended 188
286-to read: 189
287- 627.0665 Automatic bank withdrawal agreements; 190
288-notification required. —Any insurer licensed to issue insurance 191
289-in the state who has an automatic bank withdrawal agreement with 192
290-an insured party for the payment of insurance premiums for any 193
291-type of insurance shall give the named insured at least 10 15 194
292-days advance written notice of any increase in policy premiums 195
293-which results in the next automatic bank w ithdrawal being 196
294-increased by more than $10. Such notice must be provided before 197
295-prior to any automatic bank withdrawal containing the of an 198
296-increased premium. 199
297- Section 8. Subsection (1) of section 627.421, Florida 200
273+the policyholder provides to the insurer on the policyholder's 176
274+letterhead the following statement that must be signed by the 177
275+policyholder's authorized representative and dated: "...(Name of 178
276+entity)... does not want the insurance on its ...(type of 179
277+structure)... to pay for damage from windstorms. ...(Name of 180
278+entity)... will be responsible for these costs. ...(Name of 181
279+entity's)... insurance will not." 182
280+ (3) An insurer issuing a residential property insurance 183
281+policy, except for a condominium unit owner policy or a tenant 184
282+policy, must make available, at the option of the p olicyholder, 185
283+an exclusion of coverage for the contents. The coverage may be 186
284+excluded only if the policyholder personally writes or types and 187
285+provides to the insurer the following statement in his or her 188
286+own handwriting and signs his or her signature, which must also 189
287+be signed by every other named insured on the policy, and dated: 190
288+"I do not want the insurance on my (home/mobile home) to pay for 191
289+the costs to repair or replace any contents that are damaged. I 192
290+will pay those costs. My insurance will not." 193
291+ Section 8. Section 627.7276, Florida Statutes, is amended 194
292+to read: 195
293+ 627.7276 Notice of limited coverage. — 196
294+ (1) An automobile policy that does not contain coverage 197
295+for bodily injury and property damage must include a notice be 198
296+clearly stamped or printed to the effect that such coverage is 199
297+not included in the policy in the following manner: 200
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310-Statutes, is amended to read: 201
311- 627.421 Delivery of policy.— 202
312- (1) Subject to the insurer's requirement as to payment of 203
313-premium, every policy shall be mailed, delivered, or 204
314-electronically transmitted to the insured or to the person 205
315-entitled thereto not later than 60 days after the effectuation 206
316-of coverage. Notwithstanding any other provision of law, an 207
317-insurer may allow a policyholder of personal lines insurance to 208
318-affirmatively elect delivery of the policy documents, including, 209
319-but not limited to, policies, endorsements, notices, or 210
320-documents, by electronic means in lieu of delivery by mail. 211
321-Electronic transmission of a policy , related notices, and other 212
322-documents for individual and group health insurance policies or 213
323-certificates of coverage pursuant to parts VI and VII, 214
324-respectively; health ma intenance contracts or certificates of 215
325-coverage pursuant to part I of chapter 641; prepaid limited 216
326-health service contracts pursuant to part I of chapter 636; and 217
327-for commercial risks, including, but not limited to, workers' 218
328-compensation and employers' lia bility, commercial automobile 219
329-liability, commercial automobile physical damage, commercial 220
330-lines residential property, commercial nonresidential property, 221
331-farmowners insurance, and the types of commercial lines risks 222
332-set forth in s. 627.062(3)(d), constitu tes delivery to the 223
333-insured or to the person entitled to delivery, unless the 224
334-insured or the person entitled to delivery communicates to the 225
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343-F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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347-insurer in writing or electronically that he or she does not 226
348-agree to delivery by electronic means. Electronic transmission 227
349-shall include a notice to the insured or to the person entitled 228
350-to delivery of a policy of his or her right to receive the 229
351-policy via United States mail rather than via electronic 230
352-transmission. A paper copy of the policy shall be provided to 231
353-the insured or to the person entitled to delivery at his or her 232
354-request. 233
355- Section 9. Paragraph (d) of subsection (3) of section 234
356-627.701, Florida statutes, is amended to read: 235
357- 627.701 Liability of insureds; coinsurance; deductibles. — 236
358- (3) 237
359- (d) The following alternative deductible amounts are 238
360-authorized for the following policies: 239
361- 1. With respect to a policy covering a risk with dwelling 240
362-limits of $250,000 or more, the insurer need not offer the $500 241
363-hurricane deductible as required by paragraph (a), but m ust, 242
364-except as otherwise provided in this subsection, offer the other 243
365-hurricane deductibles as required by paragraph (a). 244
366- 2. With respect to a policy covering a risk with dwelling 245
367-limits of $1 million or more, but less than $3 million, the 246
368-insurer may, in lieu of offering the 2 percent deductible as 247
369-required by paragraph (a), offer a deductible amount applicable 248
370-to hurricane losses equal to 3 percent of the policy dwelling 249
371-limits. 250
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384- 3. With respect to a policy covering a risk with dwelling 251
385-limits of $3 million or more, the insurer need not offer the 2 252
386-percent deductible as required by paragraph (a) but must, except 253
387-as otherwise provided in this subsection, offer the other 254
388-hurricane deductibles as required by paragraph (a). 255
389- Section 10. Paragraph (a) of subsection (2) and subsection 256
390-(3) of section 627.712, Florida Statutes, are amended to read: 257
391- 627.712 Residential windstorm coverage required; 258
392-availability of exclusions for windstorm or contents. — 259
393- (2) A property insurer must make available, at the option 260
394-of the policyholder, an exclusion of windstorm coverage. 261
395- (a) The coverage may be excluded only if: 262
396- 1. When the policyholder is a natural person, the 263
397-policyholder personally writes or types and provides to the 264
398-insurer the following statement in his or her own handwriting 265
399-and signs his or her name, which must also be signed by every 266
400-other named insured on the policy, and dated: "I do not want the 267
401-insurance on my (home/mobile home/condominium unit) to pay for 268
402-damage from windstorms. I will pay those costs. My insurance 269
403-will not." 270
404- 2. When the policyholder is other than a natural person, 271
405-the policyholder provides to the insurer on the policyholder's 272
406-letterhead the following statement that must be signed by the 273
407-policyholder's authorized representative and dated: "...(Name of 274
408-entity)... does not want the insurance on its ...(type of 275
409-
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421-structure)... to pay for damage from windstorms. ...(Name of 276
422-entity)... will be responsible for these costs. ...(Name of 277
423-entity's)... insurance will not." 278
424- (3) An insurer issuing a residential property insurance 279
425-policy, except for a condominium unit owner policy or a tenant 280
426-policy, must make available, at the option of the policyholder, 281
427-an exclusion of coverage for the contents. The coverage may be 282
428-excluded only if the polic yholder personally writes or types and 283
429-provides to the insurer the following statement in his or her 284
430-own handwriting and signs his or her signature, which must also 285
431-be signed by every other named insured on the policy, and dated: 286
432-"I do not want the insuran ce on my (home/mobile home) to pay for 287
433-the costs to repair or replace any contents that are damaged. I 288
434-will pay those costs. My insurance will not." 289
435- Section 11. Section 627.7276, Florida Statutes, is amended 290
436-to read: 291
437- 627.7276 Notice of limited covera ge.— 292
438- (1) An automobile policy that does not contain coverage 293
439-for bodily injury and property damage must include a notice be 294
440-clearly stamped or printed to the effec t that such coverage is 295
441-not included in the policy in the following manner: 296
442-"THIS POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE 297
443-LIABILITY INSURANCE OR ANY OTHER COVERAGE FOR WHICH A SPECIFIC 298
444-PREMIUM CHARGE IS NOT MADE, AND DOES NOT COMPLY WITH ANY 299
445-FINANCIAL RESPONSIBILITY LAW." 300
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454-F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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458- (2) The notice This legend must appear on the policy 301
459-declaration page and on the filing back of the policy and be 302
460-printed in bold type a contrasting color from that used on the 303
461-policy and in type larger than the largest type used in the text 304
462-thereof, as an overprint or by a rubber stamp impression . 305
463- Section 12. Subsection (8) is added to section 628.905, 306
464-Florida Statutes, to read: 307
465- 628.905 Licensing; authority. — 308
466- (8) Notwithstanding any provision to the contrary in the 309
467-Florida Insurance Code, a foreign pure captive insurance company 310
468-organized under the l aws of any United States jurisdiction as of 311
469-January 1, 2023, and operating in compliance with the laws of 312
470-such jurisdiction may issue policies of insurance to its parent 313
471-or affiliated companies covering environmental liability and 314
472-financial responsibility requirements associated with 315
473-underground storage tanks in this state. Before commencing such 316
474-business in this state, such foreign pure captive insurance 317
475-company shall provide to the office the following: 318
476- (a) A certified copy of its license or certificate of 319
477-authority issued by its state of domicile indicating that it is 320
478-licensed to write property and casualty lines of business. 321
479- (b) A certificate from its domiciliary regulator 322
480-indicating that it is in good standing with such regulator and 323
481-complies with all applicable laws. 324
482- (c) An executed Form OIR -C1-144, Service of Process 325
483-
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495-Consent and Agreement. 326
496- (d) Evidence that it complies with the capital and surplus 327
497-requirements of its state of domicile. The office may request 328
498-any documents submitted to the domic iliary state regulator that 329
499-the office deems necessary to determine the company's compliance 330
500-under this paragraph. 331
501- 332
502-A foreign pure captive insurance company writing business in 333
503-this state under this subsection is not subject to any other 334
504-provisions of the insurance code. 335
505- Section 13. Paragraph (b) of subsection (8) of section 336
506-634.041, Florida Statutes, is amended to read: 337
507- 634.041 Qualifications for license. —To qualify for and 338
508-hold a license to issue service agreements in this state, a 339
509-service agreement company must be in compliance with this part, 340
510-with applicable rules of the commission, with related sections 341
511-of the Florida Insurance Code, and with its charter powers and 342
512-must comply with the following: 343
513- (8) 344
514- (b) A service agreement company does not hav e to establish 345
515-and maintain an unearned premium reserve if it secures and 346
516-maintains contractual liability insurance in accordance with the 347
517-following: 348
518- 1. Coverage of 100 percent of the claim exposure is 349
519-obtained from an insurer approved by the office, whi ch holds a 350
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530-
531-
532-certificate of authority under s. 624.401 to do business within 351
533-this state, or secured through a risk retention group, which is 352
534-authorized to do business within this state under s. 627.943 or 353
535-s. 627.944. Such insurer or risk retention group must maintain a 354
536-surplus as regards policyholders of at least $15 million. 355
537- 2. If the service agreement company does not meet its 356
538-contractual obligations, the contractual liability insurance 357
539-policy binds its issuer to pay or cause to be paid to the 358
540-service agreement holder all legitimate claims and cancellation 359
541-refunds for all service agreements issued by the service 360
542-agreement company while the policy was in effect. This 361
543-requirement also applies to those service agreements for which 362
544-no premium has been remit ted to the insurer. 363
545- 3. If the issuer of the contractual liability policy is 364
546-fulfilling the service agreements covered by the contractual 365
547-liability policy and the service agreement holder cancels the 366
548-service agreement, the issuer must make a full refund o f 367
549-unearned premium to the consumer, subject to the cancellation 368
550-fee provisions of s. 634.121(3). The sales representative and 369
551-agent must refund to the contractual liability policy issuer 370
552-their unearned pro rata commission. 371
553- 4. The policy may not be cancel ed, terminated, or 372
554-nonrenewed by the insurer or the service agreement company 373
555-unless a 90-day written notice thereof has been given to the 374
556-office by the insurer before the date of the cancellation, 375
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569-termination, or nonrenewal. 376
570- 5. The service agreement com pany must provide the office 377
571-with the claims statistics. 378
572- 6. A policy issued in compliance with this paragraph which 379
573-pays either 100 percent of claims as they are incurred or 100 380
574-percent of claims due in the event of the failure of the service 381
575-agreement company to pay such claims when due. 382
576- 383
577-All funds or premiums remitted to an insurer by a motor vehicle 384
578-service agreement company under this part shall remain in the 385
579-care, custody, and control of the insurer and shall be counted 386
580-as an asset of the insurer; pr ovided, however, this requirement 387
581-does not apply when the insurer and the motor vehicle service 388
582-agreement company are affiliated companies and members of an 389
583-insurance holding company system. If the motor vehicle service 390
584-agreement company chooses to comply with this paragraph but also 391
585-maintains a reserve to pay claims, such reserve shall only be 392
586-considered an asset of the covered motor vehicle service 393
587-agreement company and may not be simultaneously counted as an 394
588-asset of any other entity. 395
589- Section 14. This act shall take effect July 1, 2023. 396
310+"THIS POLICY DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE 201
311+LIABILITY INSURANCE OR ANY OTHER COVERAGE FOR WHICH A SPECIFIC 202
312+PREMIUM CHARGE IS NOT MADE, AND DOES NOT CO MPLY WITH ANY 203
313+FINANCIAL RESPONSIBILITY LAW." 204
314+ (2) This notice legend must accompany appear on the policy 205
315+declarations declaration page and on the filing back of the 206
316+policy and must be printed in a contrasting color from that used 207
317+on the policy and in type size at least as large as larger than 208
318+the largest type size used on the declarations page in the text 209
319+thereof, as an overprint or by a rubber stamp impression . 210
320+ Section 9. This act shall take effect July 1, 2023. 211