Florida Senate - 2023 SB 1340 By Senator Grall 29-01330A-23 20231340__ 1 A bill to be entitled 2 An act relating to insurance; amending s. 624.155, 3 F.S.; providing construction relating to the recovery 4 of damages under the common-law remedy of bad faith 5 against insurers; amending s. 624.3161, F.S.; 6 providing that specified property insurers shall, 7 rather than may, be subject to an additional market 8 conduct examination after a hurricane; amending s. 9 624.4055, F.S.; revising a prohibition against the 10 continued writing of private passenger automobile 11 insurance by certain insurers; amending ss. 624.407 12 and 624.408, F.S.; revising minimum surplus 13 requirements for certain residential property 14 insurers; amending s. 624.424, F.S.; revising 15 information required to be reported by property 16 insurers in certain supplemental reports; specifying 17 requirements for the Office of Insurance Regulation in 18 publicly reporting certain data; providing 19 construction; amending s. 626.9201, F.S.; prohibiting 20 insurers providing homeowners insurance or commercial 21 property insurance from canceling, nonrenewing, or 22 terminating a policy during a pending claim except 23 under certain circumstances; amending s. 626.9541, 24 F.S.; adding unfair claim settlement practices that 25 constitute unfair methods of competition or unfair or 26 deceptive acts or practices; prohibiting directors or 27 officers of insolvent or impaired insurers from 28 authorizing or permitting the payment of certain 29 bonuses; defining the term bonus; providing a 30 criminal penalty; amending s. 627.0613, F.S.; 31 requiring the consumer advocate, in conjunction with 32 the Department of Financial Services and the office, 33 to annually prepare and make publicly available a 34 report relating to insurer rate increases; amending s. 35 627.351, F.S.; deleting a requirement that a Citizens 36 Property Insurance Corporation policyholder making a 37 claim for water damage has the burden of proving that 38 the damage was not caused by flooding; amending s. 39 627.35191, F.S.; requiring the corporation to provide 40 to the Legislature and the Financial Services 41 Commission an annual supplemental report relating to 42 closed claims; specifying requirements for the report; 43 amending s. 627.4133, F.S.; prohibiting insurers 44 providing homeowners insurance from canceling, 45 nonrenewing, or terminating a policy during a pending 46 claim except under certain circumstances; amending s. 47 627.420, F.S.; prohibiting certain actions by an 48 insurer issuing a homeowners insurance binder before 49 closing to a purchaser of residential property; 50 requiring such insurer to perform any required 51 inspections before binding coverage; requiring a 52 seller of a new home purchase to allow access to the 53 property for such inspection before closing; amending 54 s. 627.701, F.S.; providing that if a roof deductible 55 is applied under a personal lines residential property 56 insurance policy, no other deductible may be applied 57 to certain other losses; amending s. 627.7011, F.S.; 58 providing that if a homeowners insurance policy 59 provides an option with limited coverage, the insurer 60 must offer a premium with a certain discount or 61 credit; creating s. 627.70111, F.S.; requiring a 62 specified notice period to a homeowner before any 63 inspection of the homeowners residential property for 64 insurance purposes, except under certain 65 circumstances; amending s. 627.70131, F.S.; providing 66 that repeated violations of certain prompt payment 67 requirements are an unfair method of competition and 68 an unfair or deceptive act or practice; deleting a 69 provision providing that failure to comply with 70 certain provisions does not form the sole basis for a 71 private cause of action; amending s. 627.70132, F.S.; 72 providing that certain timeframes to provide notice of 73 a property insurance claim are tolled during the 74 period of active duty for an insured in active 75 military service; amending s. 627.70152, F.S.; 76 requiring a property insurer to provide a certain 77 response to a presuit notice to the department; 78 deleting the authority for an insurer to require the 79 claimant to participate in appraisal; providing that a 80 policy must require a claimants consent; specifying a 81 limitation and restriction on invoking appraisal; 82 providing that a certain notice and response are 83 admissible as evidence in certain proceedings; 84 requiring that any alternative dispute resolution 85 process be authorized by statute; creating s. 86 627.70155, F.S.; specifying restrictions on property 87 insurance policies relating to venue and controlling 88 law provisions; amending s. 627.702, F.S.; providing 89 that certain total losses under the valued policy law 90 may not be subject to any requirement for the insured 91 to participate in appraisal; amending s. 768.79, F.S.; 92 revising conditions for making, and parties who may 93 make, certain joint offers of judgment or settlement; 94 providing an effective date. 95 96 Be It Enacted by the Legislature of the State of Florida: 97 98 Section 1.Subsection (8) of section 624.155, Florida 99 Statutes, is amended to read: 100 624.155Civil remedy. 101 (8)The civil remedy specified in this section does not 102 preempt any other remedy or cause of action provided for 103 pursuant to any other statute or pursuant to the common law of 104 this state. Any person may obtain a judgment under either the 105 common-law remedy of bad faith or this statutory remedy, but 106 shall not be entitled to a judgment under both remedies. This 107 section shall not be construed to create a common-law cause of 108 action. The damages recoverable pursuant to this section shall 109 include those damages which are a reasonably foreseeable result 110 of a specified violation of this section by the authorized 111 insurer and may include an award or judgment in an amount that 112 exceeds the policy limits. This section does not limit or 113 prohibit the recovery of any damages under the common-law remedy 114 of bad faith, and extracontractual, consequential damages may be 115 recovered under such remedy. 116 Section 2.Subsection (7) of section 624.3161, Florida 117 Statutes, is amended to read: 118 624.3161Market conduct examinations. 119 (7)Notwithstanding subsection (1), any authorized insurer 120 transacting property insurance business in this state shall may 121 be subject to an additional market conduct examination after a 122 hurricane if the insurer: 123 (a)Is among the top 20 percent of insurers based upon a 124 calculation of the ratio of hurricane-related property insurance 125 claims filed to the number of property insurance policies in 126 force; 127 (b)Is among the top 20 percent of insurers based upon a 128 calculation of the ratio of consumer complaints made to the 129 department to hurricane-related claims; 130 (c)Has made significant payments to its managing general 131 agent since the hurricane; or 132 (d)Is identified by the office as necessitating a market 133 conduct exam for any other reason. 134 135 All relevant criteria under this section and s. 624.316 shall be 136 applied to the market conduct examination under this subsection. 137 Such an examination must be initiated within 18 months after the 138 landfall of a hurricane that results in an executive order or a 139 state of emergency issued by the Governor. An examination of an 140 insurer under this subsection must also include an examination 141 of its managing general agent as if it were the insurer. 142 Section 3.Section 624.4055, Florida Statutes, is amended 143 to read: 144 624.4055Restrictions on existing private passenger 145 automobile insurance.An No insurer writing private passenger 146 automobile insurance in this state may not continue to write 147 such insurance if the insurer: 148 (1)Writes homeowners insurance in another state but not 149 in this state; or 150 (2)Writes homeowners insurance in this state, but the 151 number of homeowners insurance policies that it writes or 152 renews in this state in any calendar year is less than 5 percent 153 of the total number of policies written or renewed by the 154 insurer for all kinds of insurance transacted in this state by 155 the insurer, unless the insurer writing private passenger 156 automobile insurance in this state is affiliated with an insurer 157 writing homeowners insurance in this state. 158 Section 4.Subsection (1) of section 624.407, Florida 159 Statutes, is amended to read: 160 624.407Surplus required; new insurers. 161 (1)To receive authority to transact any one kind or 162 combinations of kinds of insurance, as defined in part V of this 163 chapter, an insurer applying for its original certificate of 164 authority in this state shall possess surplus as to 165 policyholders at least the greater of: 166 (a)For a property and casualty insurer, $5 million, or 167 $2.5 million for any other insurer; 168 (b)For life insurers, 4 percent of the insurers total 169 liabilities; 170 (c)For life and health insurers, 4 percent of the 171 insurers total liabilities, plus 6 percent of the insurers 172 liabilities relative to health insurance; 173 (d)For all insurers other than life insurers and life and 174 health insurers, 10 percent of the insurers total liabilities; 175 (e)Notwithstanding paragraph (a) or paragraph (d), for a 176 domestic insurer that transacts residential property insurance 177 and is: 178 1.Not a wholly owned subsidiary of an insurer domiciled in 179 any other state, $30 $15 million. 180 2.A wholly owned subsidiary of an insurer domiciled in any 181 other state, $50 million; 182 (f)Notwithstanding paragraphs (a), (d), and (e), for a 183 domestic insurer that only transacts limited sinkhole coverage 184 insurance for personal lines residential property pursuant to s. 185 627.7151, $7.5 million; or 186 (g)Notwithstanding paragraphs (a), (d), and (e), for an 187 insurer that only transacts residential property insurance in 188 the form of renters insurance, tenants coverage, cooperative 189 unit owner insurance, or any combination thereof, $10 million. 190 Section 5.Paragraphs (f) and (g) of subsection (1) of 191 section 624.408, Florida Statutes, are amended to read: 192 624.408Surplus required; current insurers. 193 (1)To maintain a certificate of authority to transact any 194 one kind or combinations of kinds of insurance, as defined in 195 part V of this chapter, an insurer in this state must at all 196 times maintain surplus as to policyholders at least the greater 197 of: 198 (f)For residential property insurers not holding a 199 certificate of authority before July 1, 2011, $30 $15 million. 200 (g)For residential property insurers holding a certificate 201 of authority before July 1, 2011, and until June 30, 2016, $5 202 million; on or after July 1, 2016, and until June 30, 2021, $10 203 million; on or after July 1, 2021, and until June 30, 2023, $15 204 million; on or after July 1, 2023, $30 million. 205 206 The office may reduce the surplus requirement in paragraphs (f) 207 and (g) if the insurer is not writing new business, has premiums 208 in force of less than $1 million per year in residential 209 property insurance, or is a mutual insurance company. 210 Section 6.Paragraph (a) of subsection (10) and subsection 211 (11) of section 624.424, Florida Statutes, are amended to read: 212 624.424Annual statement and other information. 213 (10)(a)Each insurer or insurer group doing business in 214 this state shall file on a quarterly basis in conjunction with 215 financial reports required by paragraph (1)(a) a supplemental 216 report on an individual and group basis on a form prescribed by 217 the commission with information on personal lines and commercial 218 lines residential property insurance policies in this state. The 219 supplemental report shall include separate information for 220 personal lines property policies and for commercial lines 221 property policies and totals for each item specified, including 222 premiums written for each of the property lines of business as 223 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 224 shall include the following information for each county on a 225 monthly basis: 226 1.Total number of policies in force at the end of each 227 month. 228 2.Total number of policies canceled. 229 3.Total number of policies nonrenewed. 230 4.Number of policies canceled due to hurricane risk. 231 5.Number of policies nonrenewed due to hurricane risk. 232 6.Number of new policies written. 233 7.Total dollar value of structure exposure under policies 234 that include wind coverage. 235 8.Number of policies that exclude wind coverage. 236 9.Number of claims open each month. 237 10.Number of claims closed each month. 238 11.Number of claims pending each month. 239 12.Number of claims in which either the insurer or insured 240 invoked any form of alternative dispute resolution;, which party 241 invoked alternative dispute resolution; the pre-alternative 242 dispute resolution payment made by the insurer, if any; the 243 post-alternative dispute resolution payment made by the insurer, 244 if any; and the specifying which form of alternative dispute 245 resolution was used. 246 (11)Beginning January 1, 2022, each authorized insurer or 247 insurer group issuing personal lines or commercial lines 248 residential property insurance policies in this state shall file 249 with the office on an annual basis in conjunction with the 250 statements required by paragraph (1)(a) a supplemental report on 251 an individual and group basis for closed claims. The office 252 shall compile the data for each insurer or insurer group on a 253 statewide basis and make such data publicly available on its 254 website monthly. Such data, when aggregated on a statewide basis 255 as to an individual insurer or insurer group, is not a trade 256 secret as defined in s. 688.002 or s. 812.081(1) and is not 257 subject to the public records exemption for trade secrets 258 provided in s. 119.0715. By January 1, 2024, the office shall 259 also make publicly available the data required to be reported by 260 each insurer or insurer group for the 2021 calendar year, the 261 2022 calendar year, and the 2023 calendar year through July 1, 262 2023, and collected by the office during the 2022 calendar year 263 and subsequent years. The report must be on a form prescribed by 264 the commission and must include the following information for 265 each claim closed, excluding liability only claims, within the 266 reporting period in this state: 267 (a)The unique claim identification number. 268 (b)The type of policy. 269 (c)The zip code of the property where the claim occurred. 270 (d)The county where the claim occurred. 271 (e)The date of loss. 272 (f)The peril or type of loss, including information about: 273 1.The types of vendors used for mitigation, repair, or 274 replacement; and 275 2.The names of vendors used, if known. 276 (g)The date the claim was reported to insurer. 277 (h)The initial date the claim was closed, including 278 information about whether the claim was closed with or without 279 payment. 280 (i)The date the claim was most recently reopened, if 281 applicable. 282 (j)The date a supplemental claim was filed, if applicable. 283 (k)The date the claim was most recently closed, if 284 different from the initial date the claim was closed. 285 (l)The name of the public adjuster on the claim, if any. 286 (m)The Florida Bar number and name of the attorney for the 287 claimant, if any. 288 (n)The total indemnity paid by the insurer. 289 (o)The total loss adjustment expenses paid by the insurer. 290 (p)The amounts, listed separately, amount paid for any 291 claimants and insurers attorney fees, and specifying the 292 amount incurred during prelitigation or appraisal and the amount 293 incurred during arbitration or litigation, as applicable if any. 294 (q)The amounts, listed separately, amount paid in costs 295 for claimants and insurers attorney attorneys expenses, 296 including, but not limited to, expert witness fees. 297 (r)The contingency risk multiplier, if any, that the 298 claimants attorney requested to be applied in calculating the 299 attorney fees awarded to the claimants attorney. 300 (s)The contingency risk multiplier, if any, that a court 301 applied in calculating the attorney fees awarded to the 302 claimants attorney. 303 (t)Data submitted by each claimant and each insurer or 304 insurer group pursuant to s. 627.70152(3) and (4) to the 305 department. 306 (u)Any other information deemed necessary by the 307 commission to provide the office with the ability to track 308 litigation and claims trends occurring in the property market. 309 Section 7.Subsection (4) is added to section 626.9201, 310 Florida Statutes, to read: 311 626.9201Notice of cancellation or nonrenewal. 312 (4)Notwithstanding this section or any other law to the 313 contrary, an insurer providing homeowners insurance or 314 commercial property insurance may not cancel, nonrenew, or 315 terminate a policy during a pending claim, except for nonpayment 316 of premium. 317 Section 8.Paragraphs (i), (o), and (w) of subsection (1) 318 of section 626.9541, Florida Statutes, are amended to read: 319 626.9541Unfair methods of competition and unfair or 320 deceptive acts or practices defined. 321 (1)UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 322 ACTS.The following are defined as unfair methods of competition 323 and unfair or deceptive acts or practices: 324 (i)Unfair claim settlement practices. 325 1.Attempting to settle claims on the basis of an 326 application, when serving as a binder or intended to become a 327 part of the policy, or any other material document which was 328 altered without notice to, or knowledge or consent of, the 329 insured; 330 2.A material misrepresentation made to an insured or any 331 other person having an interest in the proceeds payable under 332 such contract or policy, for the purpose and with the intent of 333 effecting settlement of such claims, loss, or damage under such 334 contract or policy on less favorable terms than those provided 335 in, and contemplated by, such contract or policy; 336 3.Committing or performing with such frequency as to 337 indicate a general business practice any of the following: 338 a.Failing to adopt and implement standards for the proper 339 investigation of claims; 340 b.Misrepresenting pertinent facts or insurance policy 341 provisions relating to coverages at issue; 342 c.Failing to acknowledge and act promptly upon 343 communications with respect to claims; 344 d.Denying claims without conducting reasonable 345 investigations based upon available information; 346 e.Failing to affirm or deny full or partial coverage of 347 claims, and, as to partial coverage, the dollar amount or extent 348 of coverage, or failing to provide a written statement that the 349 claim is being investigated, upon the written request of the 350 insured within 30 days after proof-of-loss statements have been 351 completed; 352 f.Failing to promptly provide a reasonable explanation in 353 writing to the insured of the basis in the insurance policy, in 354 relation to the facts or applicable law, for denial of a claim 355 or for the offer of a compromise settlement; 356 g.Failing to promptly notify the insured of any additional 357 information necessary for the processing of a claim; 358 h.Failing to clearly explain the nature of the requested 359 information and the reasons why such information is necessary; 360 or 361 i.Failing to pay personal injury protection insurance 362 claims within the time periods required by s. 627.736(4)(b). The 363 office may order the insurer to pay restitution to a 364 policyholder, medical provider, or other claimant, including 365 interest at a rate consistent with the amount set forth in s. 366 55.03(1), for the time period within which an insurer fails to 367 pay claims as required by law. Restitution is in addition to any 368 other penalties allowed by law, including, but not limited to, 369 the suspension of the insurers certificate of authority; or 370 j.Compelling insureds to institute litigation to recover 371 amounts due under an insurance policy by offering substantially 372 less than the amounts ultimately recovered in actions brought by 373 such insureds; 374 k.Altering a field adjusters initial estimate, report, 375 photographs, or written comments regarding photographs or 376 observations of an insured risk without the express written 377 approval of the adjuster obtained within 5 days after the 378 alteration which clearly explains in detail the nature and 379 extent of the changes; 380 l.Failing to provide an insured with a complete, 381 unredacted, and unaltered copy of a field adjusters initial 382 report, estimate, and photographs within 10 business days after 383 receipt of such materials; or 384 m.Failing to provide an insured with a complete, 385 unredacted, and unaltered copy of any report or estimate 386 obtained from an engineer, an environmental consultant, a 387 contractor, or another specialist retained by the insurer to 388 investigate the claim within 10 business days after receipt of 389 such report or estimate; 390 4.Failing to pay undisputed amounts of partial or full 391 benefits owed under first-party property insurance policies 392 within 60 days after an insurer receives notice of a residential 393 property insurance claim, determines the amounts of partial or 394 full benefits, and agrees to coverage, unless payment of the 395 undisputed benefits is prevented by factors beyond the control 396 of the insurer as defined in s. 627.70131(5); 397 5.Repeatedly failing to comply with s. 627.70131(7)(a); or 398 6.Assigning three or more adjusters within a 6-month 399 period on a claim arising from a natural disaster, including a 400 tropical storm or hurricane, which is the subject of a state of 401 emergency declared by executive order or proclamation of the 402 Governor pursuant to s. 252.36. 403 (o)Illegal dealings in premiums; excess or reduced charges 404 for insurance. 405 1.Knowingly collecting any sum as a premium or charge for 406 insurance, which is not then provided, or is not in due course 407 to be provided, subject to acceptance of the risk by the 408 insurer, by an insurance policy issued by an insurer as 409 permitted by this code. 410 2.Knowingly collecting as a premium or charge for 411 insurance any sum in excess of or less than the premium or 412 charge applicable to such insurance, in accordance with the 413 applicable classifications and rates as filed with and approved 414 by the office, and as specified in the policy; or, in cases when 415 classifications, premiums, or rates are not required by this 416 code to be so filed and approved, premiums and charges collected 417 from a Florida resident in excess of or less than those 418 specified in the policy and as fixed by the insurer. 419 Notwithstanding any other provision of law, this provision shall 420 not be deemed to prohibit the charging and collection, by 421 surplus lines agents licensed under part VIII of this chapter, 422 of the amount of applicable state and federal taxes, or fees as 423 authorized by s. 626.916(4), in addition to the premium required 424 by the insurer or the charging and collection, by licensed 425 agents, of the exact amount of any discount or other such fee 426 charged by a credit card facility in connection with the use of 427 a credit card, as authorized by subparagraph (q)3., in addition 428 to the premium required by the insurer. This subparagraph shall 429 not be construed to prohibit collection of a premium for a 430 universal life or a variable or indeterminate value insurance 431 policy made in accordance with the terms of the contract. 432 3.Imposing or requesting an additional premium for a 433 policy of homeowners insurance because the insured filed a 434 claim, unless the insurers file contains information from which 435 the insurer in good faith determines that the insured acted 436 negligently or intentionally caused damages that led to the 437 claim. 438 4.a.3.a.Imposing or requesting an additional premium for a 439 policy of motor vehicle liability, personal injury protection, 440 medical payment, or collision insurance or any combination 441 thereof or refusing to renew the policy solely because the 442 insured was involved in a motor vehicle accident unless the 443 insurers file contains information from which the insurer in 444 good faith determines that the insured was substantially at 445 fault in the accident. 446 b.An insurer which imposes and collects such a surcharge 447 or which refuses to renew such policy shall, in conjunction with 448 the notice of premium due or notice of nonrenewal, notify the 449 named insured that he or she is entitled to reimbursement of 450 such amount or renewal of the policy under the conditions listed 451 below and will subsequently reimburse him or her or renew the 452 policy, if the named insured demonstrates that the operator 453 involved in the accident was: 454 (I)Lawfully parked; 455 (II)Reimbursed by, or on behalf of, a person responsible 456 for the accident or has a judgment against such person; 457 (III)Struck in the rear by another vehicle headed in the 458 same direction and was not convicted of a moving traffic 459 violation in connection with the accident; 460 (IV)Hit by a hit-and-run driver, if the accident was 461 reported to the proper authorities within 24 hours after 462 discovering the accident; 463 (V)Not convicted of a moving traffic violation in 464 connection with the accident, but the operator of the other 465 automobile involved in such accident was convicted of a moving 466 traffic violation; 467 (VI)Finally adjudicated not to be liable by a court of 468 competent jurisdiction; 469 (VII)In receipt of a traffic citation which was dismissed 470 or nolle prossed; or 471 (VIII)Not at fault as evidenced by a written statement 472 from the insured establishing facts demonstrating lack of fault 473 which are not rebutted by information in the insurers file from 474 which the insurer in good faith determines that the insured was 475 substantially at fault. 476 c.In addition to the other provisions of this 477 subparagraph, an insurer may not fail to renew a policy if the 478 insured has had only one accident in which he or she was at 479 fault within the current 3-year period. However, an insurer may 480 nonrenew a policy for reasons other than accidents in accordance 481 with s. 627.728. This subparagraph does not prohibit nonrenewal 482 of a policy under which the insured has had three or more 483 accidents, regardless of fault, during the most recent 3-year 484 period. 485 5.4.Imposing or requesting an additional premium for, or 486 refusing to renew, a policy for motor vehicle insurance solely 487 because the insured committed a noncriminal traffic infraction 488 as described in s. 318.14 unless the infraction is: 489 a.A second infraction committed within an 18-month period, 490 or a third or subsequent infraction committed within a 36-month 491 period. 492 b.A violation of s. 316.183, when such violation is a 493 result of exceeding the lawful speed limit by more than 15 miles 494 per hour. 495 6.5.Upon the request of the insured, the insurer and 496 licensed agent shall supply to the insured the complete proof of 497 fault or other criteria which justifies the additional charge or 498 cancellation. 499 7.6.No insurer shall impose or request an additional 500 premium for motor vehicle insurance, cancel or refuse to issue a 501 policy, or refuse to renew a policy because the insured or the 502 applicant is a handicapped or physically disabled person, so 503 long as such handicap or physical disability does not 504 substantially impair such persons mechanically assisted driving 505 ability. 506 8.7.No insurer may cancel or otherwise terminate any 507 insurance contract or coverage, or require execution of a 508 consent to rate endorsement, during the stated policy term for 509 the purpose of offering to issue, or issuing, a similar or 510 identical contract or coverage to the same insured with the same 511 exposure at a higher premium rate or continuing an existing 512 contract or coverage with the same exposure at an increased 513 premium. 514 9.8.No insurer may issue a nonrenewal notice on any 515 insurance contract or coverage, or require execution of a 516 consent to rate endorsement, for the purpose of offering to 517 issue, or issuing, a similar or identical contract or coverage 518 to the same insured at a higher premium rate or continuing an 519 existing contract or coverage at an increased premium without 520 meeting any applicable notice requirements. 521 10.9.No insurer shall, with respect to premiums charged 522 for motor vehicle insurance, unfairly discriminate solely on the 523 basis of age, sex, marital status, or scholastic achievement. 524 11.10.Imposing or requesting an additional premium for 525 motor vehicle comprehensive or uninsured motorist coverage 526 solely because the insured was involved in a motor vehicle 527 accident or was convicted of a moving traffic violation. 528 12.11.No insurer shall cancel or issue a nonrenewal notice 529 on any insurance policy or contract without complying with any 530 applicable cancellation or nonrenewal provision required under 531 the Florida Insurance Code. 532 13.12.No insurer shall impose or request an additional 533 premium, cancel a policy, or issue a nonrenewal notice on any 534 insurance policy or contract because of any traffic infraction 535 when adjudication has been withheld and no points have been 536 assessed pursuant to s. 318.14(9) and (10). However, this 537 subparagraph does not apply to traffic infractions involving 538 accidents in which the insurer has incurred a loss due to the 539 fault of the insured. 540 (w)Soliciting or accepting new or renewal insurance risks 541 or payment of certain bonuses by insolvent or impaired insurer 542 prohibited; penalty. 543 1.Whether or not delinquency proceedings as to the insurer 544 have been or are to be initiated, but while such insolvency or 545 impairment exists, no director or officer of an insurer, except 546 with the written permission of the office, shall authorize or 547 permit the insurer to solicit or accept new or renewal insurance 548 risks in this state after such director or officer knew, or 549 reasonably should have known, that the insurer was insolvent or 550 impaired. 551 2.Regardless of whether delinquency proceedings as to the 552 insurer have been or are to be initiated, but while such 553 insolvency or impairment exists, a director or an officer of an 554 impaired insurer may not authorize or permit the insurer to pay 555 a bonus to any officer or director of the insurer. 556 3.As used in this paragraph, the term: 557 a.Bonus means a payment, in addition to an officers or 558 a directors usual compensation, which is in addition to any 559 amounts contracted for or otherwise legally due. 560 b.Impaired includes impairment of capital or surplus, as 561 defined in s. 631.011(12) and (13). 562 4.2.Any such director or officer, upon conviction of a 563 violation of this paragraph, commits is guilty of a felony of 564 the third degree, punishable as provided in s. 775.082, s. 565 775.083, or s. 775.084. 566 Section 9.Section 627.0613, Florida Statutes, is amended 567 to read: 568 627.0613Consumer advocate. 569 (1)The Chief Financial Officer must appoint a consumer 570 advocate who must represent the general public of the state 571 before the department and the office. The consumer advocate must 572 report directly to the Chief Financial Officer, but is not 573 otherwise under the authority of the department or of any 574 employee of the department. The consumer advocate has such 575 powers as are necessary to carry out the duties of the office of 576 consumer advocate, including, but not limited to, the powers to: 577 (a)(1)Recommend to the department or office, by petition, 578 the commencement of any proceeding or action; appear in any 579 proceeding or action before the department or office; or appear 580 in any proceeding before the Division of Administrative Hearings 581 relating to subject matter under the jurisdiction of the 582 department or office. 583 (b)(2)Have access to and use of all files, records, and 584 data of the department or office. 585 (c)(3)Examine rate and form filings submitted to the 586 office, hire consultants as necessary to aid in the review 587 process, and recommend to the department or office any position 588 deemed by the consumer advocate to be in the public interest. 589 (d)(4)Prepare an annual budget for presentation to the 590 Legislature by the department, which budget must be adequate to 591 carry out the duties of the office of consumer advocate. 592 (2)By March 1 of each year, and in conjunction with the 593 department and the office, the consumer advocate shall prepare 594 and make publicly available a report analyzing rate filings in 595 the previous year in which a rate increase was requested and 596 approved by the office and summarizing the grounds on which each 597 increase was approved. 598 Section 10.Paragraph (kk) of subsection (6) of section 599 627.351, Florida Statutes, is amended to read: 600 627.351Insurance risk apportionment plans. 601 (6)CITIZENS PROPERTY INSURANCE CORPORATION. 602 (kk)A corporation policyholder making a claim for water 603 damage against the corporation has the burden of proving that 604 the damage was not caused by flooding. 605 Section 11.Subsection (3) is added to section 627.35191, 606 Florida Statutes, to read: 607 627.35191Required reports. 608 (3)By January 1 of each year, Citizens Property Insurance 609 Corporation shall also provide to the Legislature and the 610 Financial Services Commission a supplemental report on an 611 individual and group basis for closed claims. The report must be 612 on a form prescribed by the commission and must include the 613 following information for each claim closed, excluding liability 614 only claims, within the reporting period in this state: 615 (a)The unique claim identification number. 616 (b)The type of policy. 617 (c)The zip code of the property where the claim occurred. 618 (d)The county where the claim occurred. 619 (e)The date of loss. 620 (f)The peril or type of loss, including information about: 621 1.The types of vendors used for mitigation, repair, or 622 replacement; and 623 2.The names of vendors used, if known. 624 (g)The date the claim was reported to the corporation. 625 (h)The initial date the claim was closed, including 626 information about whether the claim was closed with or without 627 payment. 628 (i)The date the claim was most recently reopened, if 629 applicable. 630 (j)The date a supplemental claim was filed, if applicable. 631 (k)The date the claim was most recently closed, if 632 different from the initial date the claim was closed. 633 (l)The name of the public adjuster on the claim, if any. 634 (m)The Florida Bar number and name of the attorney for the 635 claimant, if any. 636 (n)The total indemnity paid by the corporation. 637 (o)The total loss adjustment expenses paid by the 638 corporation. 639 (p)The amounts, listed separately, paid for the claimants 640 and the corporations attorney fees, if any, specifying the 641 amount incurred during prelitigation or appraisal and the amount 642 incurred during arbitration or litigation, as applicable. 643 (q)The amounts, listed separately, paid in costs for the 644 claimants and corporations attorneys expenses, including, but 645 not limited to, expert witness fees. 646 (r)The contingency risk multiplier, if any, that the 647 claimants attorney requested to be applied in calculating the 648 attorney fees awarded to the claimants attorney. 649 (s)The contingency risk multiplier, if any, that a court 650 applied in calculating the attorney fees awarded to the 651 claimants attorney. 652 (t)Any other information deemed necessary by the 653 commission to provide the corporation with the ability to track 654 litigation and claims trends occurring in the property market. 655 Section 12.Paragraph (f) is added to subsection (2) of 656 section 627.4133, Florida Statutes, to read: 657 627.4133Notice of cancellation, nonrenewal, or renewal 658 premium. 659 (2)With respect to any personal lines or commercial 660 residential property insurance policy, including, but not 661 limited to, any homeowner, mobile home owner, farmowner, 662 condominium association, condominium unit owner, apartment 663 building, or other policy covering a residential structure or 664 its contents: 665 (f)Notwithstanding this section or any other law to the 666 contrary, an insurer providing homeowners insurance may not 667 cancel, nonrenew, or terminate a policy during a pending claim, 668 except for nonpayment of premium. 669 Section 13.Section 627.420, Florida Statutes, is amended 670 to read: 671 627.420Binders. 672 (1)Binders or other contracts for temporary property, 673 marine, casualty, or surety insurance may be made orally or in 674 writing, and shall be deemed to include all the usual terms of 675 the policy as to which the binder was given together with such 676 applicable endorsements as are designated in the binder, except 677 as superseded by the clear and express terms of the binder. No 678 notice of cancellation or notice of nonrenewal otherwise 679 required by this chapter shall be required unless the duration 680 of the binder exceeds 60 days. However, for purposes of ss. 681 627.728 and 627.7281, an insurer shall give 5 days prior notice 682 of cancellation of a binder, unless the binder is replaced by a 683 policy or another binder in the same or another company. 684 (2)Notwithstanding subsection (1) and any other law, an 685 insurer that issues a homeowners insurance binder before 686 closing to a purchaser of residential property may not cancel 687 coverage, require additional repairs as a condition of coverage, 688 or increase the policy premium for the first contract year of 689 the homeowners insurance policy. An insurer must perform any 690 required inspections before binding coverage. For a new home 691 purchase, a seller must allow access to the property for the 692 purpose of such inspection before closing. 693 Section 14.Paragraph (a) of subsection (10) of section 694 627.701, Florida Statutes, is amended to read: 695 627.701Liability of insureds; coinsurance; deductibles. 696 (10)(a)Notwithstanding any other provision of law, an 697 insurer issuing a personal lines residential property insurance 698 policy may include in such policy a separate roof deductible 699 that meets all of the following requirements: 700 1.The insurer has complied with the offer requirements 701 under subsection (7) regarding a deductible applicable to losses 702 from perils other than a hurricane. 703 2.The roof deductible may not exceed the lesser of 2 704 percent of the Coverage A limit of the policy or 50 percent of 705 the cost to replace the roof. 706 3.The premium that a policyholder is charged for the 707 policy includes an actuarially sound credit or premium discount 708 for the roof deductible. 709 4.The roof deductible applies only to a claim adjusted on 710 a replacement cost basis. 711 5.The roof deductible does not apply to any of the 712 following events: 713 a.A total loss to a primary structure in accordance with 714 the valued policy law under s. 627.702 which is caused by a 715 covered peril. 716 b.A roof loss resulting from a hurricane as defined in s. 717 627.4025(2)(c). 718 c.A roof loss resulting from a tree fall or other hazard 719 that damages the roof and punctures the roof deck. 720 d.A roof loss requiring the repair of less than 50 percent 721 of the roof. 722 723 If a roof deductible is applied, no other deductible under the 724 policy may be applied to the loss or to any other loss to the 725 property caused by the same covered peril. 726 Section 15.Paragraph (c) is added to subsection (1) of 727 section 627.7011, Florida Statutes, to read: 728 627.7011Homeowners policies; offer of replacement cost 729 coverage and law and ordinance coverage. 730 (1)Prior to issuing a homeowners insurance policy, the 731 insurer must offer each of the following: 732 (c)If a homeowners insurance policy provides an option 733 with limited coverage, a premium for such reduced coverage which 734 includes a substantial, actuarially sound premium discount or 735 credit for the impact of the reduced coverage. 736 737 An insurer is not required to make the offers required by this 738 subsection with respect to the issuance or renewal of a 739 homeowners policy that contains the provisions specified in 740 paragraph (b) for law and ordinance coverage limited to 25 741 percent of the dwelling limit, except that the insurer must 742 offer the law and ordinance coverage limited to 50 percent of 743 the dwelling limit. This subsection does not prohibit the offer 744 of a guaranteed replacement cost policy. 745 Section 16.Section 627.70111, Florida Statutes, is created 746 to read: 747 627.70111Inspections of residential property; required 748 notice to homeowners.A homeowner must be notified at least 48 749 hours before any inspection of the homeowners residential 750 property which is required for insurance purposes, unless the 751 homeowner agrees to a shorter timeframe. 752 Section 17.Paragraph (a) of subsection (7) of section 753 627.70131, Florida Statutes, is amended to read: 754 627.70131Insurers duty to acknowledge communications 755 regarding claims; investigation. 756 (7)(a)Within 90 days after an insurer receives notice of 757 an initial, reopened, or supplemental property insurance claim 758 from a policyholder, the insurer shall pay or deny such claim or 759 a portion of the claim unless the failure to pay is caused by 760 factors beyond the control of the insurer which reasonably 761 prevent such payment. The insurer shall provide a reasonable 762 explanation in writing to the policyholder of the basis in the 763 insurance policy, in relation to the facts or applicable law, 764 for the payment, denial, or partial denial of a claim. If the 765 insurers claim payment is less than specified in any insurers 766 detailed estimate of the amount of the loss, the insurer must 767 provide a reasonable explanation in writing of the difference to 768 the policyholder. Any payment of an initial or supplemental 769 claim or portion of such claim made 90 days after the insurer 770 receives notice of the claim, or made more than 15 days after 771 there are no longer factors beyond the control of the insurer 772 which reasonably prevented such payment, whichever is later, 773 bears interest at the rate set forth in s. 55.03. Interest 774 begins to accrue from the date the insurer receives notice of 775 the claim. The provisions of this subsection may not be waived, 776 voided, or nullified by the terms of the insurance policy. If 777 there is a right to prejudgment interest, the insured must 778 select whether to receive prejudgment interest or interest under 779 this subsection. Interest is payable when the claim or portion 780 of the claim is paid. Failure to comply with this subsection 781 constitutes a violation of this code, and repeated violations 782 constitute an unfair method of competition and an unfair or 783 deceptive act or practice as defined in s. 626.9541. However, 784 failure to comply with this subsection does not form the sole 785 basis for a private cause of action. 786 Section 18.Subsection (2) of section 627.70132, Florida 787 Statutes, is amended to read: 788 627.70132Notice of property insurance claim. 789 (2)A claim or reopened claim, but not a supplemental 790 claim, under an insurance policy that provides property 791 insurance, as defined in s. 624.604, including a property 792 insurance policy issued by an eligible surplus lines insurer, 793 for loss or damage caused by any peril is barred unless notice 794 of the claim was given to the insurer in accordance with the 795 terms of the policy within 1 year after the date of loss. A 796 supplemental claim is barred unless notice of the supplemental 797 claim was given to the insurer in accordance with the terms of 798 the policy within 18 months after the date of loss. The time 799 limitations of this subsection are tolled during the period of 800 active duty for an insured in active military service. 801 Section 19.Subsection (4) and paragraph (a) of subsection 802 (6) of section 627.70152, Florida Statutes, are amended, and 803 subsection (8) is added to that section, to read: 804 627.70152Suits arising under a property insurance policy. 805 (4)INSURER DUTIES.An insurer must have a procedure for 806 the prompt investigation, review, and evaluation of the dispute 807 stated in the notice and must investigate each claim contained 808 in the notice in accordance with the Florida Insurance Code. An 809 insurer must respond in writing within 10 business days after 810 receiving the notice specified in subsection (3). The insurer 811 must provide the response to the department by e-mail and, to 812 the claimant by e-mail if the insured has designated an e-mail 813 address in the notice, must provide the response to the insured 814 by e-mail. 815 (a)If an insurer is responding to a notice served on the 816 insurer following a denial of coverage by the insurer, the 817 insurer must respond by: 818 1.Accepting coverage; 819 2.Continuing to deny coverage; or 820 3.Asserting the right to reinspect the damaged property. 821 If the insurer responds by asserting the right to reinspect the 822 damaged property, it has 14 business days after the response 823 asserting that right to reinspect the property and accept or 824 continue to deny coverage. The time limits provided in s. 95.11 825 are tolled during the reinspection period if such time limits 826 expire before the end of the reinspection period. If the insurer 827 continues to deny coverage, the claimant may file suit without 828 providing additional notice to the insurer. 829 (b)If an insurer is responding to a notice provided to the 830 insurer alleging an act or omission by the insurer other than a 831 denial of coverage, the insurer must respond by making a 832 settlement offer or requesting requiring the claimant to 833 participate in appraisal or another method of alternative 834 dispute resolution. A policy must require a claimants consent 835 to participate in appraisal. Appraisal must be invoked within 30 836 days after presentation of a dispute, but may not be initially 837 invoked after the filing of a lawsuit. The time limits provided 838 in s. 95.11 are tolled as long as appraisal or other alternative 839 dispute resolution is ongoing if such time limits expire during 840 the appraisal process or dispute resolution process. If the 841 appraisal or alternative dispute resolution has not been 842 concluded within 90 days after the expiration of the 10-day 843 notice of intent to initiate litigation specified in subsection 844 (3), the claimant or claimants attorney may immediately file 845 suit without providing the insurer additional notice. 846 (6)ADMISSIBILITY OF NOTICE AND RESPONSE.The notice 847 provided pursuant to subsection (3) and, if applicable, the 848 documentation to support the information provided in the notice: 849 (a)Are not admissible as evidence only in a any proceeding 850 regarding attorney fees. 851 (8)ALTERNATIVE DISPUTE RESOLUTION PROCESS.Notwithstanding 852 any contractual provision to the contrary, any alternative 853 dispute resolution process entered into pursuant to this section 854 must be authorized by statute. 855 Section 20.Section 627.70155, Florida Statutes, is created 856 to read: 857 627.70155Prohibited venue and controlling law provisions. 858 A residential or commercial property insurance policy, including 859 a residential or commercial property insurance policy issued by 860 an eligible surplus lines insurer, may not require: 861 (1)An insured to bring an administrative or legal action 862 in a venue outside of this state; 863 (2)Any arbitration, mediation, or other legal proceeding 864 to be conducted outside of this state; or 865 (3)That a law of a state other than Florida be applied to 866 any legal proceeding between the insured and insurer. 867 Section 21.Paragraph (a) of subsection (1) of section 868 627.702, Florida Statutes, is amended to read: 869 627.702Valued policy law. 870 (1)(a)In the event of the total loss of any building, 871 structure, mobile home as defined in s. 320.01(2), or 872 manufactured building as defined in s. 553.36(13), located in 873 this state and insured by any insurer as to a covered peril, in 874 the absence of any change increasing the risk without the 875 insurers consent and in the absence of fraudulent or criminal 876 fault on the part of the insured or one acting in her or his 877 behalf, the insurers liability under the policy for such total 878 loss, if caused by a covered peril, shall be in the amount of 879 money for which such property was so insured as specified in the 880 policy and for which a premium has been charged and paid. A 881 total loss under this paragraph may not be subject to any 882 requirement for the insured to participate in appraisal. 883 Section 22.Subsection (6) of section 768.79, Florida 884 Statutes, is amended to read: 885 768.79Offer of judgment and demand for judgment. 886 (6)For a first-party property insurance breach of contract 887 action, a property insurer may make a joint offer of judgment or 888 settlement, and a plaintiff may make a joint demand for judgment 889 or settlement, which that is conditioned on the mutual 890 acceptance of all the joint offerees. 891 Section 23.This act shall take effect July 1, 2023.