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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
A bill to be entitled 1
An act relating to insurer accountability; amending s. 2
624.307, F.S.; authorizing electronic responses to 3
certain requests from the Division of Consumer 4
Services of the Department of Financial Services 5
concerning consumer complaints; revising the timeframe 6
in which responses must be made; revising 7
administrative penalties; amending s. 624.315, F.S.; 8
specifying reporting requirements for the Office of 9
Insurance Regulation in the office's annual report 10
relating to the enforcement of insurer compliance; 11
creating s. 624.3152, F.S.; specifying requirements 12
for the office to report quarterly to the Legislature 13
relating to the enforcement of insurer compliance; 14
amending s. 624.316, F.S.; revising the minimum 15
frequency and the time coverage of insurer 16
examinations by the office; requiring the office to 17
create, and the Financial Services Commission to adopt 18
by rule, a specified methodology for scheduling and 19
conducting examinations of insurers and certain other 20
entities; providing construction; specifying 21
requirements for such methodology; providing rule 22
requirements; amending s. 624.3161, F.S.; requiring, 23
rather than authorizing, authorized property insurers 24
to be subject to an additional market conduct 25
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examination after a hurricane if specified conditions 26
are met; revising the applicability of such 27
conditions; requiring the office to create, and the 28
commission to adopt by rule, a specified methodology 29
for scheduling and conducting market conduct 30
examinations of insurers and certain other entities; 31
providing constructi on; specifying requirements for 32
such methodology; providing rule requirements; 33
amending s. 624.4211, F.S.; revising administrative 34
fines the office may impose in lieu of revocation or 35
suspension; amending s. 626.207, F.S.; revising a 36
condition for disquali fication of an insurance 37
representative applicant or licensee; amending s. 38
626.9521, F.S.; revising and specifying applicable 39
fines for unfair methods of competition and unfair or 40
deceptive acts or practices; amending s. 626.9541, 41
F.S.; providing an additi onal an unfair claim 42
settlement practice by an insurer; prohibiting a 43
director or an officer of an impaired insurer from 44
authorizing or permitting the insurer to pay a bonus 45
to any officer or director of the insurer; providing a 46
criminal penalty; defining the term "bonus"; amending 47
s. 626.989, F.S.; revising a reporting requirement for 48
the department's Division of Investigative and 49
Forensic Services; requiring the division's Bureau of 50
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Insurance Fraud to submit an annual performance report 51
to the Legislature; providing report requirements; 52
amending s. 627.0629, F.S.; requiring residential 53
property insurers to provide certain hurricane 54
mitigation discount information to policyholders in a 55
specified manner; specifying requirements for the 56
office in reevaluating and updating certain fixtures 57
and construction techniques; deleting obsolete dates; 58
amending s. 627.351, F.S.; prohibiting Citizens 59
Property Insurance Corporation from determining that a 60
risk is ineligible for coverage solely on a specified 61
basis; providing applicability; amending s. 627.701, 62
F.S.; prohibiting certain deductibles under personal 63
lines residential property insurance policies from 64
being applied under specified circumstances; amending 65
s. 627.70132, F.S.; providing for the tolling of 66
certain timeframes for filing notices of property 67
insurance claims for servicemembers; providing 68
construction; authorizing positions and providing 69
appropriations; providing an effective date. 70
71
Be It Enacted by the Legislature of the State of Florida: 72
73
Section 1. Paragraph (b) of subsection (10) of section 74
624.307, Florida Statutes, is amended to read: 75
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624.307 General powers; duties. — 76
(10) 77
(b) Any person licensed or issued a certificate of 78
authority by the department or the office shall respond, in 79
writing or electronically, to the division within 14 20 days 80
after receipt of a written request for documents and information 81
from the division concerning a consumer complaint. The response 82
must address the issues and allegations raised in the complaint 83
and include any requested documents concerning the consumer 84
complaint not subject to attorney -client or work-product 85
privilege. The division may impose an administrative penalty for 86
failure to comply with this paragraph of up to $5,000 $2,500 per 87
violation upon any entity licensed by the department or the 88
office and $250 for the first violation, $500 for the second 89
violation, and up to $1,000 per for the third or subsequent 90
violation upon any individual licensed by the department or the 91
office. 92
Section 2. Present subsection (4) of section 624.315, 93
Florida Statutes, is redesignated as subsection (5), and a new 94
subsection (4) is added to that section, to read: 95
624.315 Annual report. — 96
(4) The office shall detail all actions to enforce insurer 97
compliance during the previous year. For each of the following, 98
the report must detail the insurer or other licensee or 99
registrant against whom such action was taken; any violation of 100
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law or rule by such party and, if so, all information on such 101
violation; and the resolutio n of such action, including any 102
penalties imposed by the office. The report must be published on 103
the website of the office and submitted to the Governor, the 104
President of the Senate, and the Speaker of the House of 105
Representatives on or before February 15 of each year. The 106
report must include, but need not be limited to: 107
(a) The revocation, denial, or suspension of any license 108
or registration issued by the office. 109
(b) All actions taken pursuant to s. 624.310. 110
(c) Fines imposed by the office for violat ions of the 111
Florida Insurance Code. 112
(d) Consent orders entered into by the office. 113
(e) Examinations and investigations conducted and 114
completed by the office pursuant to ss. 624.316 and 624.3161. 115
(f) Investigations conducted and completed, by line of 116
insurance, for which the office found violations of law or rule 117
but did not take enforcement action. 118
Section 3. Section 624.3152, Florida Statutes, is created 119
to read: 120
624.3152 Quarterly report of enforcement activity. —Each 121
quarter, the office shall create a report detailing all actions 122
of the office to enforce insurer compliance. The report must be 123
submitted to the commission, the President of the Senate, the 124
Speaker of the House of Representatives, and the legislative 125
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committees with jurisdiction ov er matters of insurance. For each 126
of the following, the report must detail the insurer or other 127
licensee or registrant against whom such action was taken; any 128
violation of law or rule by such party and, if so, all 129
information on such violation; and the res olution of such 130
action, including any penalties imposed by the office. The 131
report is due on or before April 30, July 31, October 31, and 132
January 31, for the immediately preceding quarter. The report 133
must include, but need not be limited to: 134
(1) The revocation, denial, or suspension of any license 135
or registration issued by the office. 136
(2) All actions taken pursuant to s. 624.310. 137
(3) Fines imposed by the office for violations of the 138
Florida Insurance Code. 139
(4) Consent orders entered into by the offic e. 140
(5) Examinations and investigations conducted and 141
completed by the office pursuant to ss. 624.316 and 624.3161. 142
(6) Investigations conducted and completed, by line of 143
insurance, for which the office found violations of law or rule 144
but did not take enforcement action. 145
Section 4. Paragraph (a) of subsection (2) of section 146
624.316, Florida Statutes, is amended, and subsection (3) is 147
added to that section, to read: 148
624.316 Examination of insurers. — 149
(2)(a) Except as provided in paragraph (f), the office may 150
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examine each insurer as often as may be warranted for the 151
protection of the policyholders and in the public interest, but 152
must, at a minimum, examine insurers as follows: 153
1. High-risk insurers at least once every 3 years. 154
2. Average-risk insurers at least once every 5 years. 155
3. Low-risk insurers at least once every 7 years and shall 156
examine each domestic insurer not less frequently than once 157
every 5 years. 158
159
The examination shall cover the preceding 5 fiscal years since 160
the last examination of the insurer, except for low-risk 161
insurers, in which case the examination shall cover the 162
preceding 5 fiscal years, and shall be commenced within 12 163
months after the end of the most recent fiscal year being 164
covered by the examination. The examination ma y cover any period 165
of the insurer's operations since the last previous examination. 166
The examination may include examination of events subsequent to 167
the end of the most recent fiscal year and the events of any 168
prior period that affect the present financial condition of the 169
insurer. 170
(3) The office shall create, and the commission shall 171
adopt by rule, a risk -based selection methodology for scheduling 172
and conducting examinations of insurers and other entities 173
subject to this section. This requirement does not restrict the 174
authority of the office to conduct market conduct examinations 175
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as often as it deems advisable. Such methodology must include: 176
(a) Use of currently required risk -based capital reports 177
to prioritize financial examinations of insurers when suc h 178
reporting indicates a decline in the insurer's financial 179
condition. 180
(b) Consideration of any downgrade or threatened downgrade 181
in the insurer's financial strength rating. 182
(c) Prioritization of property insurers for which the 183
office identifies signifi cant concerns about an insurer's 184
solvency pursuant to s. 627.7154. 185
(d) Any other conditions the office deems necessary for 186
the protection of the public. 187
188
The office shall present the proposed rule required to implement 189
this subsection to the commission n o later than October 1, 2023. 190
In addition to the methodology required by this subsection, the 191
rule must include a plan to implement the examination schedule 192
in subsection (2). 193
Section 5. Subsection (7) of section 624.3161, Florida 194
Statutes, is amended, and subsection (8) is added to that 195
section, to read: 196
624.3161 Market conduct examinations. — 197
(7) Notwithstanding subsection (1), any authorized insurer 198
transacting property insurance business in this state must may 199
be subject to an additional market c onduct examination after a 200
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hurricane if, at any time more than 90 days after the end of the 201
hurricane, the insurer: 202
(a) Is among the top 20 percent of insurers based upon a 203
calculation of the ratio of hurricane -related property insurance 204
claims filed to the number of property insurance policies in 205
force; 206
(b) Is among the top 20 percent of insurers based upon a 207
calculation of the ratio of consumer complaints made to the 208
department to hurricane -related claims; 209
(c) Has made significant payments to its ma naging general 210
agent since the hurricane; or 211
(d) Is identified by the office as necessitating a market 212
conduct examination exam for any other reason. 213
214
All relevant criteria under this section and s. 624.316 shall be 215
applied to the market conduct examinat ion under this subsection. 216
Such an examination must be initiated within 18 months after the 217
landfall of a hurricane that results in an executive order or a 218
state of emergency issued by the Governor. This requirement does 219
not limit in any way the authority of the office to conduct at 220
any time a market conduct examination of a property insurer in 221
the aftermath of a hurricane. An examination of an insurer under 222
this subsection must also include an examination of its managing 223
general agent as if it were the ins urer. 224
(8) The office shall create, and the commission shall 225
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adopt by rule, a risk -based selection methodology for scheduling 226
and conducting market conduct examinations of insurers and other 227
entities regulated by the office. This requirement does not 228
restrict the authority of the office to conduct market conduct 229
examinations as often as it deems necessary. Under such 230
selection methodology, the office must initiate a market conduct 231
examination if any of the following conditions exist relating to 232
an insurer or other entity regulated by the office: 233
(a) An insurance regulator in another state has initiated 234
or taken regulatory action against the insurer or entity, 235
including, but not limited to: 236
1. A licensure denial, suspension, or revocation; 237
2. Imposition of an administrative fine; or 238
3. Issuance of a cease and desist order, consent order, or 239
other order regarding an action or omission of the insurer or 240
entity. 241
(b) Given the insurer's market share in this state, the 242
department or the office has receiv ed a disproportionate number 243
of the following types of claims -handling complaints against the 244
insurer: 245
1. Failure to timely communicate with respect to claims; 246
2. Failure to timely pay claims; 247
3. Untimely payments giving rise to the payment of 248
statutory interest; 249
4. Failure to adjust and pay claims in accordance with the 250
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terms and conditions of the policy or contract and in compliance 251
with state law; 252
5. Violations of the Unfair Insurance Trade Practices Act 253
as provided in part IX of chapter 626; 254
6. Failure to use licensed and duly appointed claims 255
adjusters; 256
7. Failure to maintain reasonable claims records; or 257
8. Failure to adhere to the company's claims -handling 258
manual. 259
(c) The results of a National Association of Insurance 260
Commissioners Market Conduct Annual Statement indicate that the 261
insurer is a negative outlier with regard to particular metrics. 262
(d) There is evidence that the insurer is engaged in a 263
pattern or practice of violations of the Unfair Insurance Trade 264
Practices Act. 265
(e) Any other conditions the office deems necessary for 266
the protection of the public. 267
268
The office shall present the proposed rule required to implement 269
this subsection to the commission no later than October 1, 2023. 270
In addition to the methodology required by this subsection, the 271
rule must provide criteria for how the office will determine 272
that it has received a disproportionate number of the claims -273
handling complaints described in paragraph (b). 274
Section 6. Section 624.4211, Florida Statutes, is amended 275
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to read: 276
624.4211 Administrative fine in lieu of suspension or 277
revocation.— 278
(1) If the office finds that one or more grounds exist for 279
the discretionary revocation or suspension of a certificate of 280
authority issued under this chapter, the office may, in l ieu of 281
such revocation or suspension, impose a fine upon the insurer. 282
(2)(a) With respect to a any nonwillful violation, such 283
fine may not exceed: 284
1. Twenty-five thousand dollars per violation, up to an 285
aggregate amount of $100,000 for all nonwillful violations 286
arising out of the same action, related to a covered loss or 287
claim caused by an emergency for which the Governor declared a 288
state of emergency pursuant to s. 252.36. 289
2. Twelve thousand five hundred dollars $5,000 per 290
violation, up to. In no event shall such fine exceed an 291
aggregate amount of $50,000 $20,000 for all other nonwillful 292
violations arising out of the same action. 293
(b) If an insurer discovers a nonwillful violation, the 294
insurer shall correct the violation and, if restitution is due , 295
make restitution to all affected persons. Such restitution shall 296
include interest at 12 percent per year from either the date of 297
the violation or the date of inception of the affected person's 298
policy, at the insurer's option. The restitution may be a cre dit 299
against future premiums due provided that interest accumulates 300
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until the premiums are due. If the amount of restitution due to 301
any person is $50 or more and the insurer wishes to credit it 302
against future premiums, it shall notify such person that she o r 303
he may receive a check instead of a credit. If the credit is on 304
a policy that is not renewed, the insurer shall pay the 305
restitution to the person to whom it is due. 306
(3)(a) With respect to a any knowing and willful violation 307
of a lawful order or rule of the office or commission or a 308
provision of this code, the office may impose a fine upon the 309
insurer in an amount not to exceed : 310
1. Two hundred thousand dollars for each such violation, 311
up to an aggregate amount of $1 million for all knowing and 312
willful violations arising out of the same action, related to a 313
covered loss or claim caused by an emergency for which the 314
Governor declared a state of emergency pursuant to s. 252.36. 315
2. One hundred thousand dollars $40,000 for each such 316
violation, up to. In no event shall such fine exceed an 317
aggregate amount of $500,000 $200,000 for all other knowing and 318
willful violations arising out of the same action. 319
(b) In addition to such fines, the insurer shall make 320
restitution when due in accordance with subsection ( 2). 321
(4) The failure of an insurer to make restitution when due 322
as required under this section constitutes a willful violation 323
of this code. However, if an insurer in good faith is uncertain 324
as to whether any restitution is due or as to the amount of such 325
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restitution, it shall promptly notify the office of the 326
circumstances; and the failure to make restitution pending a 327
determination thereof shall not constitute a violation of this 328
code. 329
Section 7. Paragraph (c) of subsection (3) of section 330
626.207, Florida Statutes, is amended to read: 331
626.207 Disqualification of applicants and licensees; 332
penalties against licensees; rulemaking authority. — 333
(3) An applicant who has been found guilty of or has 334
pleaded guilty or nolo contendere to a crime not included in 335
subsection (2), regardless of adjudication, is subject to: 336
(c) A 7-year disqualifying period for all misdemeanors 337
directly related to the financial services business or any 338
violation of the Florida Insurance Code . 339
Section 8. Subsections (2) and ( 3) of section 626.9521, 340
Florida Statutes, are amended to read: 341
626.9521 Unfair methods of competition and unfair or 342
deceptive acts or practices prohibited; penalties. — 343
(2) Except as provided in subsection (3), any person who 344
violates any provision of t his part is subject to a fine in an 345
amount not greater than $12,500 $5,000 for each nonwillful 346
violation and not greater than $100,000 $40,000 for each willful 347
violation. Fines under this subsection imposed against an 348
insurer may not exceed an aggregate am ount of $50,000 $20,000 349
for all nonwillful violations arising out of the same action or 350
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an aggregate amount of $500,000 $200,000 for all willful 351
violations arising out of the same action. The fines may be 352
imposed in addition to any other applicable penalty . 353
(3)(a) If a person violates s. 626.9541(1)(l), the offense 354
known as "twisting," or violates s. 626.9541(1)(aa), the offense 355
known as "churning," the person commits a misdemeanor of the 356
first degree, punishable as provided in s. 775.082, and an 357
administrative fine not greater than $12,500 $5,000 shall be 358
imposed for each nonwillful violation or an administrative fine 359
not greater than $187,500 $75,000 shall be imposed for each 360
willful violation. To impose an administrative fine for a 361
willful violation und er this paragraph, the practice of 362
"churning" or "twisting" must involve fraudulent conduct. 363
(b) If a person violates s. 626.9541(1)(ee) by willfully 364
submitting fraudulent signatures on an application or policy -365
related document, the person commits a felo ny of the third 366
degree, punishable as provided in s. 775.082, and an 367
administrative fine not greater than $12,500 $5,000 shall be 368
imposed for each nonwillful violation or an administrative fine 369
not greater than $187,500 $75,000 shall be imposed for each 370
willful violation. 371
(c) If a person violates any provision of this part and 372
such violation is related to a covered loss or covered claim 373
caused by an emergency for which the Governor declared a state 374
of emergency pursuant to s. 252.36, such person is subjec t to a 375
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fine in an amount not greater than $25,000 for each nonwillful 376
violation and not greater than $200,000 for each knowing and 377
willful violation. Fines under this paragraph imposed against an 378
insurer may not exceed an aggregate amount of $100,000 for a ll 379
nonwillful violations arising out of the same action or an 380
aggregate amount of $1 million for all knowing and willful 381
violations arising out of the same action. 382
(d) Administrative fines under paragraphs (a) and (b) this 383
subsection may not exceed an ag gregate amount of $125,000 384
$50,000 for all nonwillful violations arising out of the same 385
action or an aggregate amount of $625,000 $250,000 for all 386
willful violations arising out of the same action. 387
Section 9. Paragraphs (i) and (w) of subsection (1) of 388
section 626.9541, Florida Statutes, are amended to read: 389
626.9541 Unfair methods of competition and unfair or 390
deceptive acts or practices defined. — 391
(1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 392
ACTS.—The following are defined as unfair m ethods of competition 393
and unfair or deceptive acts or practices: 394
(i) Unfair claim settlement practices. — 395
1. Attempting to settle claims on the basis of an 396
application, when serving as a binder or intended to become a 397
part of the policy, or any other ma terial document which was 398
altered without notice to, or knowledge or consent of, the 399
insured; 400
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2. A material misrepresentation made to an insured or any 401
other person having an interest in the proceeds payable under 402
such contract or policy, for the purpose and with the intent of 403
effecting settlement of such claims, loss, or damage under such 404
contract or policy on less favorable terms than those provided 405
in, and contemplated by, such contract or policy; 406
3. Committing or performing with such frequency as to 407
indicate a general business practice any of the following: 408
a. Failing to adopt and implement standards for the proper 409
investigation of claims; 410
b. Misrepresenting pertinent facts or insurance policy 411
provisions relating to coverages at issue; 412
c. Failing to acknowledge and act promptly upon 413
communications with respect to claims; 414
d. Denying claims without conducting reasonable 415
investigations based upon available information; 416
e. Failing to affirm or deny full or partial coverage of 417
claims, and, as to partial coverage, the dollar amount or extent 418
of coverage, or failing to provide a written statement that the 419
claim is being investigated, upon the written request of the 420
insured within 30 days after proof -of-loss statements have been 421
completed; 422
f. Failing to promptly provide a reasonable explanation in 423
writing to the insured of the basis in the insurance policy, in 424
relation to the facts or applicable law, for denial of a claim 425
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or for the offer of a compromise settlement; 426
g. Failing to promptly notify t he insured of any 427
additional information necessary for the processing of a claim; 428
h. Failing to clearly explain the nature of the requested 429
information and the reasons why such information is necessary; 430
or 431
i. Failing to pay personal injury protection i nsurance 432
claims within the time periods required by s. 627.736(4)(b). The 433
office may order the insurer to pay restitution to a 434
policyholder, medical provider, or other claimant, including 435
interest at a rate consistent with the amount set forth in s. 436
55.03(1), for the time period within which an insurer fails to 437
pay claims as required by law. Restitution is in addition to any 438
other penalties allowed by law, including, but not limited to, 439
the suspension of the insurer's certificate of authority; or 440
j. Altering or amending an insurance adjuster's report 441
without including on the report or as an addendum to the report 442
a detailed list of all changes made to the report and the 443
identity of the person who ordered each change. Any change that 444
has the effect of reduc ing the estimate of the loss must include 445
a detailed explanation of the reasons why such change was made; 446
or 447
4. Failing to pay undisputed amounts of partial or full 448
benefits owed under first -party property insurance policies 449
within 60 days after an insur er receives notice of a residential 450
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property insurance claim, determines the amounts of partial or 451
full benefits, and agrees to coverage, unless payment of the 452
undisputed benefits is prevented by factors beyond the control 453
of the insurer as defined in s. 6 27.70131(5). 454
(w) Soliciting or accepting new or renewal insurance risks 455
or payment of certain bonuses by insolvent or impaired insurer 456
prohibited; penalty. — 457
1. Whether or not delinquency proceedings as to the 458
insurer have been or are to be initiated, b ut while such 459
insolvency or impairment exists, a no director or officer of an 460
insurer, except with the written permission of the office, may 461
not shall authorize or permit the insurer to solicit or accept 462
new or renewal insurance risks in this state after s uch director 463
or officer knew, or reasonably should have known, that the 464
insurer was insolvent or impaired. 465
2. Whether or not delinquency proceedings as to the 466
insurer have been or are to be initiated, but while such 467
insolvency or impairment exists, a dir ector or officer of an 468
impaired insurer may not authorize or permit the insurer to pay 469
a bonus to any officer or director of the insurer "Impaired" 470
includes impairment of capital or surplus, as defined in s. 471
631.011(12) and (13) . 472
3.2. Any such director or officer, upon conviction of a 473
violation of this paragraph, commits is guilty of a felony of 474
the third degree, punishable as provided in s. 775.082, s. 475
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775.083, or s. 775.084. 476
4. As used in this paragraph, the term: 477
a. "Bonus" means a payment that is in addition to an 478
officer's or a director's usual compensation and to any amounts 479
contracted for or otherwise legally due. 480
b. "Impaired" includes impairment of capital or surplus, 481
as defined in s. 631.011(12) and (13). 482
Section 10. Subsection (6) of s ection 626.989, Florida 483
Statutes, is amended, and subsection (10) is added to that 484
section, to read: 485
626.989 Investigation by department or Division of 486
Investigative and Forensic Services; compliance; immunity; 487
confidential information; reports to divisi on; division 488
investigator's power of arrest. — 489
(6)(a) Any person, other than an insurer, agent, or other 490
person licensed under the code, or an employee thereof, having 491
knowledge or who believes that a fraudulent insurance act or any 492
other act or practice which, upon conviction, constitutes a 493
felony or a misdemeanor under the code, or under s. 817.234, is 494
being or has been committed may send to the Division of 495
Investigative and Forensic Services a report or information 496
pertinent to such knowledge or belief and such additional 497
information relative thereto as the department may request. Any 498
professional practitioner licensed or regulated by the 499
Department of Business and Professional Regulation, except as 500
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otherwise provided by law, any medical review committee as 501
defined in s. 766.101, any private medical review committee, and 502
any insurer, agent, or other person licensed under the code, or 503
an employee thereof, having knowledge or who believes that a 504
fraudulent insurance act or any other act or practice which, 505
upon conviction, constitutes a felony or a misdemeanor under the 506
code, or under s. 817.234, is being or has been committed shall 507
send to the Division of Investigative and Forensic Services a 508
report or information pertinent to such knowledge or belief and 509
such additional information relative thereto as the department 510
may require. 511
(b) The Division of Investigative and Forensic Services 512
shall review such information or reports and select such 513
information or reports as, in its judgment, may require further 514
investigation. It shall then cause an independent examination of 515
the facts surrounding such information or report to be made to 516
determine the extent, if any, to which a fraudulent insurance 517
act or any other act or practice which, upon conviction, 518
constitutes a felony or a misdemeanor under the code, or under 519
s. 817.234, is being committed. 520
(c) The Division of Investigative and Forensic Services 521
shall report any alleged violations of law which its 522
investigations disclose to the appropriate licensing agency an d 523
state attorney or other prosecuting agency having jurisdiction , 524
including, but not limited to, the statewide prosecutor for 525
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crimes that impact two or more judicial circuits in this state, 526
with respect to any such violation, as provided in s. 624.310. 527
If prosecution by the state attorney or other prosecuting agency 528
having jurisdiction with respect to such violation is not begun 529
within 60 days of the division's report, the state attorney or 530
other prosecuting agency having jurisdiction with respect to 531
such violation shall inform the division of the reasons for the 532
lack of prosecution. 533
(10) The Division of Investigative and Forensic Services 534
Bureau of Insurance Fraud shall prepare and submit a performance 535
report to the President of the Senate and the Speaker of the 536
House of Representatives by January 1 of each year. The annual 537
report must include, but need not be limited to: 538
(a) The total number of initial referrals received, cases 539
opened, cases presented for prosecution, cases closed, and 540
convictions resulting from cases presented for prosecution by 541
the Bureau of Insurance Fraud, by type of insurance fraud and 542
circuit. 543
(b) The number of referrals received from insurers, the 544
office, and the Division of Consumer Services of the department 545
and the outcome of those referrals. 546
(c) The number of investigations undertaken by the Bureau 547
of Insurance Fraud which were not the result of a referral from 548
an insurer and the outcome of those referrals. 549
(d) The number of investigations that resulted in a 550
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referral to a regulatory agency and the disposition of those 551
referrals. 552
(e) The number of cases presented by the Bureau of 553
Insurance Fraud which local prosecutors or the statewide 554
prosecutor declined to prosecute and the reasons provided for 555
declining prosecution. 556
(f) A summary of the annual report required under s. 557
626.9896. 558
(g) The total number of employees assigned to the Bureau 559
of Insurance Fraud, delineated by location of staff assigned, 560
and the number and location of employees assigned to the Bureau 561
of Insurance Fraud who were assigned to work other types of 562
fraud cases. 563
(h) The average caseload and turnaround time by type of 564
case for each insurance fraud investigator. 565
(i) The training provided during the year to insurance 566
fraud investigators. 567
Section 11. Subsections (1), (3), and (4) of section 568
627.0629, Florida Statutes, are amended to read: 569
627.0629 Residential property insurance; rate filings. — 570
(1) It is the intent of the Legislature that insurers 571
provide savings to consumers who install or imp lement windstorm 572
damage mitigation techniques, alterations, or solutions to their 573
properties to prevent windstorm losses. A rate filing for 574
residential property insurance must include actuarially 575
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reasonable discounts, credits, or other rate differentials, or 576
appropriate reductions in deductibles, for properties on which 577
fixtures or construction techniques demonstrated to reduce the 578
amount of loss in a windstorm have been installed or 579
implemented. The fixtures or construction techniques must 580
include, but are not limited to, fixtures or construction 581
techniques that enhance roof strength, roof covering 582
performance, roof-to-wall strength, wall-to-floor-to-foundation 583
strength, opening protection, and window, door, and skylight 584
strength. Credits, discounts, or oth er rate differentials, or 585
appropriate reductions in deductibles, for fixtures and 586
construction techniques that meet the minimum requirements of 587
the Florida Building Code must be included in the rate filing. 588
The office shall determine the discounts, credits , other rate 589
differentials, and appropriate reductions in deductibles that 590
reflect the full actuarial value of such revaluation, which may 591
be used by insurers in rate filings. Effective July 1, 2023, 592
each insurer subject to the requirements of this section must 593
provide information on the insurer's website describing the 594
hurricane mitigation discounts available to policyholders. Such 595
information must be accessible on, or through a hyperlink 596
located on, the home page of the insurer's website or the 597
primary page of the insurer's website for property insurance 598
policyholders or applicants for such coverage in this state. On 599
or before January 1, 2025, and every 5 years thereafter, the 600
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office shall reevaluate and update the fixtures or construction 601
techniques demonstrated to reduce the amount of loss in a 602
windstorm and the discounts, credits, other rate differentials, 603
and appropriate reductions in deductibles that reflect the full 604
actuarial value of such fixtures or construction techniques. The 605
office shall adopt ru les and forms necessitated by such 606
reevaluation. 607
(3) A rate filing made on or after July 1, 1995, for 608
mobile home owner insurance must include appropriate discounts, 609
credits, or other rate differentials for mobile homes 610
constructed to comply with America n Society of Civil Engineers 611
Standard ANSI/ASCE 7 -88, adopted by the United States Department 612
of Housing and Urban Development on July 13, 1994, and that also 613
comply with all applicable tie -down requirements provided by 614
state law. 615
(4) The Legislature fin ds that separate consideration and 616
notice of hurricane insurance premiums will assist consumers by 617
providing greater assurance that hurricane premiums are lawful 618
and by providing more complete information regarding the 619
components of property insurance prem iums. Effective January 1, 620
1997, A rate filing for residential property insurance shall be 621
separated into two components, rates for hurricane coverage and 622
rates for all other coverages. A premium notice reflecting a 623
rate implemented on the basis of such a filing shall separately 624
indicate the premium for hurricane coverage and the premium for 625
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all other coverages. 626
Section 12. Paragraph (ll) is added to subsection (6) of 627
section 627.351, Florida Statutes, to read: 628
627.351 Insurance risk apportionment pla ns.— 629
(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 630
(ll) The corporation may not determine that a risk is 631
ineligible for coverage with the corporation solely because such 632
risk has unrepaired damage caused by a covered loss that is the 633
subject of a claim that is being serviced by the Florida 634
Insurance Guaranty Association. This paragraph applies to a risk 635
until the earlier of 36 months from the date the Florida 636
Insurance Guaranty Association began servicing such claim or the 637
date the Florida Insurance Gua ranty Association closes the 638
claim. 639
Section 13. Paragraph (a) of subsection (10) of section 640
627.701, Florida Statutes, is amended to read: 641
627.701 Liability of insureds; coinsurance; deductibles. — 642
(10)(a) Notwithstanding any other provision of law, an 643
insurer issuing a personal lines residential property insurance 644
policy may include in such policy a separate roof deductible 645
that meets all of the following requirements: 646
1. The insurer has complied with the offer requirements 647
under subsection (7) re garding a deductible applicable to losses 648
from perils other than a hurricane. 649
2. The roof deductible may not exceed the lesser of 2 650
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percent of the Coverage A limit of the policy or 50 percent of 651
the cost to replace the roof. 652
3. The premium that a polic yholder is charged for the 653
policy includes an actuarially sound credit or premium discount 654
for the roof deductible. 655
4. The roof deductible applies only to a claim adjusted on 656
a replacement cost basis. 657
5. The roof deductible does not apply to any of the 658
following events: 659
a. A total loss to a primary structure in accordance with 660
the valued policy law under s. 627.702 which is caused by a 661
covered peril. 662
b. A roof loss resulting from a hurricane as defined in s. 663
627.4025(2)(c). 664
c. A roof loss resultin g from a tree fall or other hazard 665
that damages the roof and punctures the roof deck. 666
d. A roof loss requiring the repair of less than 50 667
percent of the roof. 668
669
If a roof deductible is applied, no other deductible under the 670
policy may be applied to the lo ss or to any other loss to the 671
property caused by the same covered peril . 672
Section 14. Subsection (2) of section 627.70132, Florida 673
Statutes, is amended to read: 674
627.70132 Notice of property insurance claim. — 675
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(2) A claim or reopened claim, but not a supplemental 676
claim, under an insurance policy that provides property 677
insurance, as defined in s. 624.604, including a property 678
insurance policy issued by an eligible surplus lines insurer, 679
for loss or damage caused by any peril is barred unless notice 680
of the claim was given to the insurer in accordance with the 681
terms of the policy within 1 year after the date of loss. A 682
supplemental claim is barred unless notice of the supplemental 683
claim was given to the insurer in accordance with the terms of 684
the policy within 18 months after the date of loss. The time 685
limitations of this subsection are tolled during any term of a 686
deployment to a combat zone or combat support posting which 687
materially affects the ability of a servicemember as defined in 688
s. 250.01 to provide notice of a claim, supplemental claim, or 689
reopened claim. 690
Section 15. Chapter 2022-271, Laws of Florida, shall not 691
be construed to impair any right under an insurance contract in 692
effect on or before the effective date of that chapter law. To 693
the extent that chapter 2022-271, Laws of Florida, affects a 694
right under an insurance contract, that chapter law applies to 695
an insurance contract issued or renewed after the applicable 696
effective date provided by the chapter law. This section is 697
intended to clarify existing law and is remedial in nature. 698
Section 16. For the 2023-2024 fiscal year, five positions 699
with associated salary rate of 325,000 are authorized and the 700
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sums of $494,774 in recurring funds and $23,410 in nonrecurring 701
funds are appropriated from the Insurance Regulatory Trust Fund 702
to the Department of Financial Services to implement this act. 703
Section 17. For the 2023-2024 fiscal year, 14 positions 704
with associated salary rate of 840,000 are authorized and the 705
sums of $1,301,672 in recurring funds and $65,548 in 706
nonrecurring funds are appropriated from the Insurance 707
Regulatory Trust Fund to the Office of Insurance Regulation to 708
implement this act. 709
Section 18. This act shall take effect July 1, 2023. 710