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