Florida 2024 Regular Session

Florida House Bill H1017 Compare Versions

Only one version of the bill is available at this time.

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3	3	HB 1017 2024
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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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13	13
14	14	A bill to be entitled 1
15	15	An act relating to insurance; creating s. 11.91, F.S.; 2
16	16	creating the Property Insurance Commission; providing 3
17	17	the membership of the commission; providing for the 4
18	18	appointment of the commission chair and vice chair; 5
19	19	providing for the governance of the commiss ion; 6
20	20	providing powers and duties of the commission; 7
21	21	amending s. 20.121, F.S.; providing for the election 8
22	22	of the Commissioner of Insurance Regulation; providing 9
23	23	for the term of office of the commissioner; conforming 10
24	24	provisions to changes made by the act; cr eating s. 11
25	25	112.3134, F.S.; prohibiting the commissioner from 12
26	26	engaging in certain activities or employment for a 13
27	27	specified period after leaving office; providing 14
28	28	sanctions for violations; authorizing specified 15
29	29	entities to collect specified penalties; amendin g s. 16
30	30	494.0026, F.S.; requiring that interest earned on 17
31	31	insurance proceeds received by mortgagees and 18
32	32	assignees be paid to insureds; amending s. 624.401, 19
33	33	F.S.; prohibiting property insurers from claiming 20
34	34	insolvency under specified circumstances; specifying a 21
35	35	condition on insurance activities engaged in within 22
36	36	this state by a person who engages in property 23
37	37	insurance activities in another state; amending s. 24
38	38	627.0629, F.S.; requiring residential property 25
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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49	49
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51	51	insurers to release specified information to insureds 26
52	52	upon request; amending s. 627.701, F.S.; prohibiting 27
53	53	property insurers from using certain defenses for 28
54	54	denial of claims; amending s. 627.715, F.S.; requiring 29
55	55	insurance agents to provide insurance applicants 30
56	56	written notice advising flood risk; amending s. 31
57	57	627.7152, F.S.; revising requirements for assignment 32
58	58	agreements; creating s. 627.7156, F.S.; requiring the 33
59	59	Financial Services Commission to adopt certain rules; 34
60	60	requiring the Department of Financial Services to 35
61	61	adopt rules regarding its handling of allegations of 36
62	62	insurance fraud made by insurers or their employees or 37
63	63	contractors; providing requirements for such rules; 38
64	64	providing fines; requiring the Office of Program 39
65	65	Policy Analysis and Government Accountability (OPPAGA) 40
66	66	to conduct a study of the effectiveness o f the 41
67	67	property insurance mediation program; providing 42
68	68	requirements for the study; requiring OPPAGA to submit 43
69	69	a report to the Legislature by a specified date; 44
70	70	amending chapter 2022 -268, Laws of Florida; specifying 45
71	71	appropriations for the My Safe Florida Home Program; 46
72	72	delaying the expiration of the program; conforming 47
73	73	provisions to changes made by the act; providing an 48
74	74	effective date. 49
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88	Be It Enacted by the Legislature of the State of Florida: 51
89	89	52
90	90	Section 1. Section 11.91, Florida Statutes, is created to 53
91	91	read: 54
92	92	11.91 Property Insurance Commission. — 55
93	93	(1)(a) There is created the Property Insurance Commission, 56
94	94	which shall consist of the following six members: 57
95	95	1. Two members appointed by the President of the Senate. 58
96	96	2. One member appointed by the Minorit y Leader of the 59
97	97	Senate. 60
98	98	3. Two members appointed by the Speaker of the House of 61
99	99	Representatives. 62
100	100	4. One member appointed by the Minority Leader of the 63
101	101	House of Representatives. 64
102	102	(b) Each member shall serve at the pleasure of the officer 65
103	103	who appointed the member. A vacancy on the commission must be 66
104	104	filled in the same manner as the original appointment. From 67
105	105	November of each odd -numbered year through October of each even -68
106	106	numbered year, the chair of the commission shall be appointed by 69
107	107	the President of the Senate, and the vice chair of the 70
108	108	commission shall be appointed by the Speaker of the House of 71
109	109	Representatives. From November of each even -numbered year 72
110	110	through October of each odd -numbered year, the chair of the 73
111	111	commission shall be appointed by the Spea ker of the House of 74
112	112	Representatives, and the vice chair of the commission shall be 75
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121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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123	123
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125	125	appointed by the President of the Senate. The terms of members 76
126	126	shall be for 2 years and shall run from the organization of one 77
127	127	Legislature to the organization of the next Le gislature. 78
128	128	(2) The commission is governed by joint rules of the 79
129	129	Senate and the House of Representatives, which rules shall 80
130	130	remain in effect until repealed or amended by concurrent 81
131	131	resolution. 82
132	132	(3) The commission may conduct its meetings through 83
133	133	teleconferences or other similar means. 84
134	134	(4) The commission must be staffed by legislative staff 85
135	135	members, as assigned by the President of the Senate and the 86
136	136	Speaker of the House of Representatives. 87
137	137	(5) The commission shall: 88
138	138	(a) Review and evaluate the insuran ce marketplace and 89
139	139	studies of the various insurance markets. 90
140	140	(b) Review and comment on market data produced by the 91
141	141	Office of Insurance Regulation. 92
142	142	(c) Review and comment on the setting of reserve 93
143	143	requirements for insurers. 94
144	144	(d) Exercise any other powers and perform any other duties 95
145	145	prescribed by the Legislature. 96
146	146	Section 2. Paragraphs (a) and (d) of subsection (3) of 97
147	147	section 20.121, Florida Statutes, are amended to read: 98
148	148	20.121 Department of Financial Services. —There is created 99
149	149	a Department of Financial Services. 100
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158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162	162	(3) FINANCIAL SERVICES COMMISSION. —Effective January 7, 101
163	163	2003, there is created within the Department of Financial 102
164	164	Services the Financial Services Commission, composed of the 103
165	165	Governor, the Attorney General, the Chief Financial Officer , and 104
166	166	the Commissioner of Agriculture, which shall for purposes of 105
167	167	this section be referred to as the commission. Commission 106
168	168	members shall serve as agency head of the Financial Services 107
169	169	Commission. The commission shall be a separate budget entity and 108
170	170	shall be exempt from the provisions of s. 20.052. Commission 109
171	171	action shall be by majority vote consisting of at least three 110
172	172	affirmative votes. The commission shall not be subject to 111
173	173	control, supervision, or direction by the Department of 112
174	174	Financial Services in an y manner, including purchasing, 113
175	175	transactions involving real or personal property, personnel, or 114
176	176	budgetary matters. 115
177	177	(a) Structure.—The major structural unit of the commission 116
178	178	is the office. Each office shall be headed by a director. The 117
179	179	following offices are established: 118
180	180	1. The Office of Insurance Regulation, which shall be 119
181	181	responsible for all activities concerning insurers and other 120
182	182	risk bearing entities, including licensing, rates, policy forms, 121
183	183	market conduct, claims, issuance of certificates of autho rity, 122
184	184	solvency, viatical settlements, premium financing, and 123
185	185	administrative supervision, as provided under the insurance code 124
186	186	or chapter 636. The head of the Office of Insurance Regulation 125
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195	195	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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197	197
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199	199	is the Director of the Office of Insurance Regulation, who may 126
200	200	also be known as the Commissioner of Insurance Regulation. 127
201	201	Beginning with the 2026 general election, the Commissioner of 128
202	202	Insurance Regulation must be elected. Each Commissioner of 129
203	203	Insurance Regulation shall serve a term of 4 years concurrent 130
204	204	with Cabinet officers as specified s. 5, Art. IV of the State 131
205	205	Constitution. 132
206	206	2. The Office of Financial Regulation, which shall be 133
207	207	responsible for all activities of the Financial Services 134
208	208	Commission relating to the regulation of banks, credit unions, 135
209	209	other financial instit utions, finance companies, and the 136
210	210	securities industry. The head of the office is the Director of 137
211	211	the Office of Financial Regulation, who may also be known as the 138
212	212	Commissioner of Financial Regulation. The Office of Financial 139
213	213	Regulation shall include a Bure au of Financial Investigations, 140
214	214	which shall function as a criminal justice agency for purposes 141
215	215	of ss. 943.045-943.08 and shall have a separate budget. The 142
216	216	bureau may conduct investigations within or outside this state 143
217	217	as the bureau deems necessary to aid i n the enforcement of this 144
218	218	section. If, during an investigation, the office has reason to 145
219	219	believe that any criminal law of this state has or may have been 146
220	220	violated, the office shall refer any records tending to show 147
221	221	such violation to state or federal law en forcement or 148
222	222	prosecutorial agencies and shall provide investigative 149
223	223	assistance to those agencies as required. 150
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232	232	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236	236	(d) Appointment and qualification qualifications of the 151
237	237	Director of the Office of Financial Regulation directors.—The 152
238	238	commission shall appoint o r remove the each Director of the 153
239	239	Office of Financial Regulation by a majority vote consisting of 154
240	240	at least three affirmative votes, with both the Governor and the 155
241	241	Chief Financial Officer on the prevailing side. Before The 156
242	242	minimum qualifications of the dire ctors are as follows: 157
243	243	1. Prior to appointment as director, the Director of the 158
244	244	Office of Insurance Regulation must have had, within the 159
245	245	previous 10 years, at least 5 years of responsible private 160
246	246	sector experience working full time in areas within the sco pe of 161
247	247	the subject matter jurisdiction of the Office of Insurance 162
248	248	Regulation or at least 5 years of experience as a senior 163
249	249	examiner or other senior employee of a state or federal agency 164
250	250	having regulatory responsibility over insurers or insurance 165
251	251	agencies. 166
252	252	2. Prior to appointment as director, the Director of the 167
253	253	Office of Financial Regulation must have had, within the 168
254	254	previous 10 years, at least 5 years of responsible private 169
255	255	sector experience working full time in areas within the subject 170
256	256	matter jurisdiction of the Office of Financial Regulation or at 171
257	257	least 5 years of experience as a senior examiner or other senior 172
258	258	employee of a state or federal agency having regulatory 173
259	259	responsibility over financial institutions, finance companies, 174
260	260	or securities companies. 175
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269	269	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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272	272
273	273	Section 3. Section 112.3134, Florida Statutes, is created 176
274	274	to read: 177
275	275	112.3134 Commissioner of Insurance Regulation; Office of 178
276	276	Insurance Regulation. — 179
277	277	(1) For a period of 7 years after vacating the office as 180
278	278	Commissioner of Insurance Regulation, a perso n who has served as 181
279	279	Commissioner of Insurance Regulation may not do any of the 182
280	280	following: 183
281	281	(a) Personally represent another person or entity for 184
282	282	compensation before the Office of Insurance Regulation. 185
283	283	(b) Serve as an employee or contractor of an entity 186
284	284	regulated by the Office of Insurance Regulation. 187
285	285	(2) A violation of subsection (1) is punishable by any of 188
286	286	the following: 189
287	287	(a) Public censure and reprimand. 190
288	288	(b) A civil penalty not to exceed $10,000. 191
289	289	(c) Forfeiture of any pecuniary benefits received for such 192
290	290	violation. The amount of the pecuniary benefits must be paid to 193
291	291	the General Revenue Fund. 194
292	292	(3) The Attorney General and Chief Financial Officer are 195
293	293	independently authorized to collect any penalty imposed under 196
294	294	this section. 197
295	295	Section 4. Subsection (2) of section 494.0026, Florida 198
296	296	Statutes, is amended to read: 199
297	297	494.0026 Disposition of insurance proceeds. —The following 200
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306	306	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310	310	provisions apply to mortgage loans held by a mortgagee or 201
311	311	assignee that is subject to part II or part III of this chapter. 202
312	312	(2)(a) Insurance proceeds received by a mortgagee or an 203
313	313	assignee which that relate to compensation for damage to 204
314	314	property or contents insurance coverage in which the mortgagee 205
315	315	or assignee has a security interest must be promptly deposited 206
316	316	into a segregated ac count of a federally insured financial 207
317	317	institution. 208
318	318	(b) Any interest earned on insurance proceeds received by 209
319	319	a mortgagee or an assignee which relate to compensation for 210
320	320	damage to property or contents insurance coverage in which the 211
321	321	mortgagee or assignee has a security interest must be paid to 212
322	322	the insured. 213
323	323	214
324	324	This section may not be construed to prevent an insurance 215
325	325	company from paying the insured directly for additional living 216
326	326	expenses or paying the insured directly for contents insurance 217
327	327	coverage if the mortgagee or assignee does not have a security 218
328	328	interest in the contents. 219
329	329	Section 5. Section 624.401, Florida Statutes, is amended 220
330	330	to read: 221
331	331	624.401 Certificate of authority required ; insurer 222
332	332	activities.— 223
333	333	(1) No person shall act as an insurer, and no insurer or 224
334	334	its agents, attorneys, subscribers, or representatives shall 225
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343	343	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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347	347	directly or indirectly transact insurance, in this state except 226
348	348	as authorized by a subsisting certificate of authority issued to 227
349	349	the insurer by the office, except as to such transactions as are 228
350	350	expressly otherwise provided for in this code. 229
351	351	(2) No insurer shall from offices or by personnel or 230
352	352	facilities located in this state solicit insurance applications 231
353	353	or otherwise transact insurance i n another state or country 232
354	354	unless it holds a subsisting certificate of authority issued to 233
355	355	it by the office authorizing it to transact the same kind or 234
356	356	kinds of insurance in this state. 235
357	357	(3) This state hereby preempts the field of regulating 236
358	358	insurers and their agents and representatives; and no county, 237
359	359	city, municipality, district, school district, or political 238
360	360	subdivision shall require of any insurer, agent, or 239
361	361	representative regulated under this code any authorization, 240
362	362	permit, or registration of any kind for conducting transactions 241
363	363	lawful under the authority granted by the state under this code. 242
364	364	(4)(a) Any person who acts as an insurer, transacts 243
365	365	insurance, or otherwise engages in insurance activities in this 244
366	366	state without a certificate of authority in violation of this 245
367	367	section commits a felony of the third degree, punishable as 246
368	368	provided in s. 775.082, s. 775.083, or s. 775.084. 247
369	369	(b) However, any person acting as an insurer without a 248
370	370	valid certificate of authority who violates this section commits 249
371	371	insurance fraud, punishable as provided in this paragraph. If 250
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380	380	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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384	384	the amount of any insurance premium collected with respect to 251
385	385	any violation of this section: 252
386	386	1. Is less than $20,000, the offender commits a felony of 253
387	387	the third degree, punishable as provided in s. 775.082, s. 254
388	388	775.083, or s. 775.084, and the offender shall be sentenced to a 255
389	389	minimum term of imprisonment of 1 year. 256
390	390	2. Is $20,000 or more, but less than $100,000, the 257
391	391	offender commits a felony of the second degree, punishable as 258
392	392	provided in s. 775.082, s. 775.083, or s. 775.084, and the 259
393	393	offender shall be sentenced to a minimum term of imprisonment of 260
394	394	18 months. 261
395	395	3. Is $100,000 or more, the offender commits a felony of 262
396	396	the first degree, punishable as provided in s. 775.082, s. 263
397	397	775.083, or s. 775.084, an d the offender shall be sentenced to a 264
398	398	minimum term of imprisonment of 2 years. 265
399	399	(5)(a) A property insurer may not claim insolvency in this 266
400	400	state if the insurer still acts as an insurer, transacts 267
401	401	insurance, or otherwise engages in insurance activities in any 268
402	402	state other than this state, regardless of whether these 269
403	403	insurance activities are property insurance activities. 270
404	404	(b) Effective January 1, 2025, any person who acts as a 271
405	405	property insurer, transacts property insurance, or otherwise 272
406	406	engages in property insurance activities in any state other than 273
407	407	this state may not act as an insurer, transact insurance, or 274
408	408	otherwise engage in insurance activities in this state unless 275
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417	417	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421	421	that person does not exclude property insurance from the 276
422	422	person's insurance transaction s or activities. 277
423	423	Section 6. Subsection (10) is added to section 627.0629, 278
424	424	Florida Statutes, to read: 279
425	425	627.0629 Residential property insurance; rate filings. — 280
426	426	(10) An insurer must release to an insured all information 281
427	427	relating to an inspection or an underwriting report upon the 282
428	428	insured's request. 283
429	429	Section 7. Section 627.701, Florida Statutes, is amended 284
430	430	to read: 285
431	431	627.701 Liability of insureds; coinsurance; deductibles ; 286
432	432	prohibited denials of claims .— 287
433	433	(1) A property insurer may issue an insurance policy or 288
434	434	contract covering either real or personal property in this state 289
435	435	which contains provisions requiring the insured to be liable as 290
436	436	a coinsurer with the insurer issuing the policy for any part of 291
437	437	the loss or damage by covered peril to the property d escribed in 292
438	438	the policy only if: 293
439	439	(a) The following words are printed or stamped on the face 294
440	440	of the policy, or a form containing the following words is 295
441	441	attached to the policy: "Coinsurance contract: The rate charged 296
442	442	in this policy is based upon the use of the coinsurance clause 297
443	443	attached to this policy, with the consent of the insured."; 298
444	444	(b) The coinsurance clause in the policy is clearly 299
445	445	identifiable; and 300
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454	454	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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458	458	(c) The rate for the insurance with or without the 301
459	459	coinsurance clause is furnished the insured upon his or her 302
460	460	request. 303
461	461	(2) Unless the office determines that the deductible 304
462	462	provision is clear and unambiguous, a property insurer may not 305
463	463	issue an insurance policy or contract covering real property in 306
464	464	this state which contains a deductible provision that : 307
465	465	(a) Applies solely to hurricane losses. 308
466	466	(b) States the deductible as a percentage rather than as a 309
467	467	specific amount of money. 310
468	468	(c) Applies solely to a roof loss as provided in 311
469	469	subsection (10). 312
470	470	(3)(a) Except as otherwise provided in this subsection, 313
471	471	prior to issuing a personal lines residential property insurance 314
472	472	policy, the insurer must offer alternative deductible amounts 315
473	473	applicable to hurricane losses equal to $500, 2 percent, 5 316
474	474	percent, and 10 percent of the policy dwelling limits, unless 317
475	475	the specific percentage deductible is less than $500. The 318
476	476	written notice of the offer shall specify the hurricane 319
477	477	deductible to be applied in the event that the applicant or 320
478	478	policyholder fails to affirmatively choose a hurricane 321
479	479	deductible. The insurer must provi de such policyholder with 322
480	480	notice of the availability of the deductible amounts specified 323
481	481	in this subsection in a form approved by the office in 324
482	482	conjunction with each renewal of the policy. The failure to 325
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491	491	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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495	495	provide such notice constitutes a violation of this code but 326
496	496	does not affect the coverage provided under the policy. 327
497	497	(b) This subsection does not apply with respect to a 328
498	498	deductible program lawfully in effect on June 14, 1995, or to 329
499	499	any similar deductible program, if the deductible program 330
500	500	requires a minimum deductible amount of no less than 2 percent 331
501	501	of the policy limits. 332
502	502	(c) With respect to a policy covering a risk with dwelling 333
503	503	limits of at least $100,000, but less than $250,000, the insurer 334
504	504	may, in lieu of offering a policy with a $500 hurricane 335
505	505	deductible as required by paragraph (a), offer a policy that the 336
506	506	insurer guarantees it will not nonrenew for reasons of reducing 337
507	507	hurricane loss for one renewal period and that contains up to a 338
508	508	2 percent hurricane deductible as required by paragraph (a). 339
509	509	(d) For the following policies, the following alternative 340
510	510	deductible amounts are authorized: 341
511	511	1. With respect to a policy covering a risk with dwelling 342
512	512	limits of $250,000 or more, the insurer need not offer the $500 343
513	513	hurricane deductible as required by paragrap h (a), but must, 344
514	514	except as otherwise provided in this subsection, offer the other 345
515	515	hurricane deductibles as required by paragraph (a). 346
516	516	2. With respect to a policy covering a risk with dwelling 347
517	517	limits of $1 million or more, but less than $3 million, the 348
518	518	insurer may, in lieu of offering the 2 percent deductible as 349
519	519	required by paragraph (a), offer a deductible amount applicable 350
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528	528	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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532	532	to hurricane losses equal to 3 percent of the policy dwelling 351
533	533	limits. 352
534	534	3. With respect to a policy covering a risk with dwelling 353
535	535	limits of $3 million or more, the insurer need not offer the 2 354
536	536	percent deductible as required by paragraph (a), but must, 355
537	537	except as otherwise provided by this subsection, offer the other 356
538	538	hurricane deductibles as required by paragraph (a). 357
539	539	(4)(a) Any policy that contains a separate hurricane 358
540	540	deductible must on its face include in boldfaced type no smaller 359
541	541	than 18 points the following statem ent: "THIS POLICY CONTAINS A 360
542	542	SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN 361
543	543	HIGH OUT-OF-POCKET EXPENSES TO YOU." A policy containing a 362
544	544	coinsurance provision applicable to hurricane losses must on its 363
545	545	face include in boldfaced type no smaller than 18 points the 364
546	546	following statement: "THIS POLICY CONTAINS A CO -PAY PROVISION 365
547	547	THAT MAY RESULT IN HIGH OUT -OF-POCKET EXPENSES TO YOU." 366
548	548	(b) For any personal lines residential property insurance 367
549	549	policy containing a separate hurricane deductible, the ins urer 368
550	550	shall compute and prominently display the actual dollar value of 369
551	551	the hurricane deductible on the declarations page of the policy 370
552	552	at issuance and, for renewal, on the renewal declarations page 371
553	553	of the policy or on the premium renewal notice. 372
554	554	(c) For any personal lines residential property insurance 373
555	555	policy containing an inflation guard rider, the insurer shall 374
556	556	compute and prominently display the actual dollar value of the 375
557	557
558	558	HB 1017 2024
559	559
560	560
561	561
562	562	CODING: Words stricken are deletions; words underlined are additions.
563	563	hb1017-00
564	564	Page 16 of 33
565	565	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
566	566
567	567
568	568
569	569	hurricane deductible on the declarations page of the policy at 376
570	570	issuance and, for renewal, on the renewal declarations page of 377
571	571	the policy or on the premium renewal notice. In addition, for 378
572	572	any personal lines residential property insurance policy 379
573	573	containing an inflation guard rider, the insurer shall notify 380
574	574	the policyholder of the possibi lity that the hurricane 381
575	575	deductible may be higher than indicated when loss occurs due to 382
576	576	application of the inflation guard rider. Such notification 383
577	577	shall be made on the declarations page of the policy at issuance 384
578	578	and, for renewal, on the renewal declaratio ns page of the policy 385
579	579	or on the premium renewal notice. 386
580	580	(d)1. A personal lines residential property insurance 387
581	581	policy covering a risk valued at less than $500,000 may not have 388
582	582	a hurricane deductible in excess of 10 percent of the policy 389
583	583	dwelling limits, unless the following conditions are met: 390
584	584	a. The policyholder must personally write or type and 391
585	585	provide to the insurer the following statement and sign his or 392
586	586	her name, which must also be signed by every other named insured 393
587	587	on the policy, and dated: "I do not want the insurance on my 394
588	588	home to pay for the first (specify dollar value) of damage from 395
589	589	hurricanes. I will pay those costs. My insurance will not." 396
590	590	b. If the structure insured by the policy is subject to a 397
591	591	mortgage or lien, the policyholder must pro vide the insurer with 398
592	592	a written statement from the mortgageholder or lienholder 399
593	593	indicating that the mortgageholder or lienholder approves the 400
594	594
595	595	HB 1017 2024
596	596
597	597
598	598
599	599	CODING: Words stricken are deletions; words underlined are additions.
600	600	hb1017-00
601	601	Page 17 of 33
602	602	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
603	603
604	604
605	605
606	606	policyholder electing to have the specified deductible. 401
607	607	2. A deductible subject to the requirements of this 402
608	608	paragraph applies for the term of the policy and for each 403
609	609	renewal thereafter. Changes to the deductible percentage may be 404
610	610	implemented only as of the date of renewal. 405
611	611	3. An insurer shall keep the original copy of the signed 406
612	612	statement required by this paragrap h, electronically or 407
613	613	otherwise, and provide a copy to the policyholder providing the 408
614	614	signed statement. A signed statement meeting the requirements of 409
615	615	this paragraph creates a presumption that there was an informed, 410
616	616	knowing election of coverage. 411
617	617	4. The commission shall adopt rules providing appropriate 412
618	618	alternative methods for providing the statements required by 413
619	619	this section for policyholders who have a handicapping or 414
620	620	disabling condition that prevents them from providing a 415
621	621	handwritten statement. 416
622	622	(e)1. A personal lines residential property insurance 417
623	623	policy that contains a separate roof deductible must include, on 418
624	624	the page immediately behind the declarations page, with no other 419
625	625	policy language on the page, in boldfaced type no smaller than 420
626	626	18 point, the following statement: "YOU ARE ELECTING TO PURCHASE 421
627	627	COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR 422
628	628	ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT -OF-423
629	629	POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE 424
630	630	AGENT." 425
631	631
632	632	HB 1017 2024
633	633
634	634
635	635
636	636	CODING: Words stricken are deletions; words underlined are additions.
637	637	hb1017-00
638	638	Page 18 of 33
639	639	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
640	640
641	641
642	642
643	643	2. For any personal lines residential property insurance 426
644	644	policy containing a separate roof deductible, the insurer shall 427
645	645	compute and prominently display on the declarations page of the 428
646	646	policy or on the premium renewal notice the actual dollar value 429
647	647	of the roof deductible of the policy at issuance and renewal. 430
648	648	(5)(a) The hurricane deductible of any personal lines 431
649	649	residential property insurance policy issued or renewed on or 432
650	650	after May 1, 2005, shall be applied as follows: 433
651	651	1. The hurricane deductible shall apply on an an nual basis 434
652	652	to all covered hurricane losses that occur during the calendar 435
653	653	year for losses that are covered under one or more policies 436
654	654	issued by the same insurer or an insurer in the same insurer 437
655	655	group. 438
656	656	2. If a hurricane deductible applies separately to e ach of 439
657	657	one or more structures insured under a single policy, the 440
658	658	requirements of this paragraph apply with respect to the 441
659	659	deductible for each structure. 442
660	660	3. If there was a hurricane loss for a prior hurricane or 443
661	661	hurricanes during the calendar year, the in surer may apply a 444
662	662	deductible to a subsequent hurricane which is the greater of the 445
663	663	remaining amount of the hurricane deductible or the amount of 446
664	664	the deductible that applies to perils other than a hurricane. 447
665	665	Insurers may require policyholders to report hurr icane losses 448
666	666	that are below the hurricane deductible or to maintain receipts 449
667	667	or other records of such hurricane losses in order to apply such 450
668	668
669	669	HB 1017 2024
670	670
671	671
672	672
673	673	CODING: Words stricken are deletions; words underlined are additions.
674	674	hb1017-00
675	675	Page 19 of 33
676	676	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
677	677
678	678
679	679
680	680	losses to subsequent hurricane claims. 451
681	681	4. If there are hurricane losses in a calendar year on 452
682	682	more than one policy issued by the same insurer or an insurer in 453
683	683	the same insurer group, the hurricane deductible shall be the 454
684	684	highest amount stated in any one of the policies. If a 455
685	685	policyholder who had a hurricane loss under the prior policy is 456
686	686	provided or offered a lower hurricane deductible under the new 457
687	687	or renewal policy, the insurer must notify the policyholder, in 458
688	688	writing, at the time the lower hurricane deductible is provided 459
689	689	or offered, that the lower hurricane deductible will not apply 460
690	690	until January 1 of the followi ng calendar year. 461
691	691	(b) For commercial residential property insurance policies 462
692	692	issued or renewed on or after January 1, 2006, the insurer must 463
693	693	offer the policyholder the following alternative hurricane 464
694	694	deductibles: 465
695	695	1. A hurricane deductible that applies on an annual basis 466
696	696	as provided in paragraph (a); and 467
697	697	2. A hurricane deductible that applies to each hurricane. 468
698	698	(6)(a) It is the intent of the Legislature to encourage 469
699	699	the use of higher hurricane deductibles as a means of increasing 470
700	700	the effective capaci ty of the hurricane insurance market in this 471
701	701	state and as a means of limiting the impact of rapidly changing 472
702	702	hurricane insurance premiums. The Legislature finds that the 473
703	703	hurricane deductibles specified in this subsection are 474
704	704	reasonable when a property owne r has made adequate provision for 475
705	705
706	706	HB 1017 2024
707	707
708	708
709	709
710	710	CODING: Words stricken are deletions; words underlined are additions.
711	711	hb1017-00
712	712	Page 20 of 33
713	713	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
714	714
715	715
716	716
717	717	restoration of the property to its full value after a 476
718	718	catastrophic loss. 477
719	719	(b) A personal lines residential insurance policy 478
720	720	providing hurricane coverage may, at the mutual option of the 479
721	721	insured and insurer, include a secu red hurricane deductible as 480
722	722	described in paragraph (c) if the applicant presents the insurer 481
723	723	a certificate of security as described in paragraph (d). An 482
724	724	insurer may not directly or indirectly require a secured 483
725	725	deductible under this subsection as a conditio n of issuing or 484
726	726	renewing a policy. A certificate of security is not required 485
727	727	with respect to an applicant who owns a 100 percent equity 486
728	728	interest in the property. 487
729	729	(c) A secured hurricane deductible must include the 488
730	730	substance of the following: 489
731	731	1. The first $500 of any claim, regardless of the peril 490
732	732	causing the loss, is fully deductible. 491
733	733	2. With respect to hurricane losses only, the next $5,000 492
734	734	in losses are fully insured, subject only to a copayment 493
735	735	requirement of 10 percent. 494
736	736	3. With respect to hurric ane losses only, the remainder of 495
737	737	the claim is subject to a deductible equal to a specified 496
738	738	percentage of the policy dwelling limits in excess of the 497
739	739	deductible allowed under former paragraph (3)(a) but no higher 498
740	740	than 10 percent of the policy dwelling limi ts. 499
741	741	4. The insurer agrees to renew the coverage on a 500
742	742
743	743	HB 1017 2024
744	744
745	745
746	746
747	747	CODING: Words stricken are deletions; words underlined are additions.
748	748	hb1017-00
749	749	Page 21 of 33
750	750	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
751	751
752	752
753	753
754	754	guaranteed basis for a period of years after initial issuance of 501
755	755	the secured deductible equal to at least 1 year for each 2 502
756	756	percentage points of deductible specified in subparagraph 3. 503
757	757	unless the policy is canceled for nonpayment of premium or the 504
758	758	insured fails to maintain the certificate of security. Such 505
759	759	renewal shall be at the same premium as the initial policy 506
760	760	except for premium changes attributable to changes in the value 507
761	761	of the property. 508
762	762	(d) The office shall draft and formally propose as a rule 509
763	763	the form for the certificate of security. The certificate of 510
764	764	security may be issued in any of the following circumstances: 511
765	765	1. A mortgage lender or other financial institution may 512
766	766	issue a certificate of security after granting the applicant a 513
767	767	line of credit, secured by equity in real property or other 514
768	768	reasonable security, which line of credit may be drawn on only 515
769	769	to pay for the deductible portion of insured construction or 516
770	770	reconstruction after a hurricane loss. In the sole discretion of 517
771	771	the mortgage lender or other financial institution, the line of 518
772	772	credit may be issued to an applicant on an unsecured basis. 519
773	773	2. A licensed insurance agent may issue a certificate of 520
774	774	security after obtaining for an applican t a line of credit, 521
775	775	secured by equity in real property or other reasonable security, 522
776	776	which line of credit may be drawn on only to pay for the 523
777	777	deductible portion of insured construction or reconstruction 524
778	778	after a hurricane loss. The Florida Hurricane Catastr ophe Fund 525
779	779
780	780	HB 1017 2024
781	781
782	782
783	783
784	784	CODING: Words stricken are deletions; words underlined are additions.
785	785	hb1017-00
786	786	Page 22 of 33
787	787	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
788	788
789	789
790	790
791	791	shall negotiate agreements creating a financing consortium to 526
792	792	serve as an additional source of lines of credit to secure 527
793	793	deductibles. Any licensed insurance agent may act as the agent 528
794	794	of such consortium. 529
795	795	3. Any person qualified to act as a trus tee for any 530
796	796	purpose may issue a certificate of security secured by a pledge 531
797	797	of assets, with the restriction that the assets may be drawn on 532
798	798	only to pay for the deductible portion of insured construction 533
799	799	or reconstruction after a hurricane loss. 534
800	800	4. Any insurer, including any admitted insurer or any 535
801	801	surplus lines insurer, may issue a certificate of security after 536
802	802	issuing the applicant a policy of supplemental insurance that 537
803	803	will pay for 100 percent of the deductible portion of insured 538
804	804	construction or recons truction after a hurricane loss. 539
805	805	5. Any other method approved by the office upon finding 540
806	806	that such other method provides a similar level of security as 541
807	807	the methods specified in this paragraph and that such other 542
808	808	method has no negative impact on residenti al property insurance 543
809	809	catastrophic capacity. The legislative intent of this 544
810	810	subparagraph is to provide the flexibility needed to achieve the 545
811	811	public policy of expanding property insurance capacity while 546
812	812	improving the affordability of property insurance. 547
813	813	(e) An issuer of a certificate of security may terminate 548
814	814	the certificate for failure to honor any of the terms of the 549
815	815	underlying financial arrangement. The issuer must provide notice 550
816	816
817	817	HB 1017 2024
818	818
819	819
820	820
821	821	CODING: Words stricken are deletions; words underlined are additions.
822	822	hb1017-00
823	823	Page 23 of 33
824	824	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
825	825
826	826
827	827
828	828	of termination to the insurer within 10 working days after 551
829	829	termination. Unless the policyholder obtains a replacement 552
830	830	certificate of security within an additional 20 working days 553
831	831	after such notice, the deductible provision in the policy must 554
832	832	revert to a lower deductible otherwise offered by the insurer 555
833	833	and the policyholder is re sponsible for any additional premium 556
834	834	required for a policy with such deductible. 557
835	835	(7) Prior to issuing a personal lines residential property 558
836	836	insurance policy on or after April 1, 1997, or prior to the 559
837	837	first renewal of a residential property insurance poli cy on or 560
838	838	after April 1, 1997, the insurer must offer a deductible equal 561
839	839	to $500 applicable to losses from perils other than hurricane. 562
840	840	The insurer must provide the policyholder with notice of the 563
841	841	availability of the deductible specified in this subsection in a 564
842	842	form approved by the office at least once every 3 years. The 565
843	843	failure to provide such notice constitutes a violation of this 566
844	844	code but does not affect the coverage provided under the policy. 567
845	845	An insurer may require a higher deductible only as part of a 568
846	846	deductible program lawfully in effect on June 1, 1996, or as 569
847	847	part of a similar deductible program. 570
848	848	(8) Notwithstanding the other provisions of this section 571
849	849	or of other law, but only as to hurricane coverage as defined in 572
850	850	s. 627.4025 for commercial lines r esidential coverages, an 573
851	851	insurer may offer a deductible in an amount not exceeding 10 574
852	852	percent of the insured value if, at the time of such offer and 575
853	853
854	854	HB 1017 2024
855	855
856	856
857	857
858	858	CODING: Words stricken are deletions; words underlined are additions.
859	859	hb1017-00
860	860	Page 24 of 33
861	861	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
862	862
863	863
864	864
865	865	at each renewal, the insurer also offers to the policyholder a 576
866	866	deductible in the amount of 3 percent of the insured value. 577
867	867	Nothing in this subsection prohibits any deductible otherwise 578
868	868	authorized by this section. All forms by which the offers 579
869	869	authorized in this subsection are made or required to be made 580
870	870	shall be on forms that are adopted or approved by the comm ission 581
871	871	or office. 582
872	872	(9) With respect to hurricane coverage provided in a 583
873	873	policy of residential coverage, when the policyholder has taken 584
874	874	appropriate hurricane mitigation measures regarding the 585
875	875	residence covered under the policy, the insurer shall provide 586
876	876	the insured the option of selecting an appropriate reduction in 587
877	877	the policy's hurricane deductible or selecting the appropriate 588
878	878	discount credit or other rate differential as provided in s. 589
879	879	627.0629. The insurer must provide the policyholder with notice 590
880	880	of the options available under this subsection on a form 591
881	881	approved by the office. 592
882	882	(10)(a) Notwithstanding any other provision of law, an 593
883	883	insurer issuing a personal lines residential property insurance 594
884	884	policy may include in such policy a separate roof deductibl e 595
885	885	that meets all of the following requirements: 596
886	886	1. The insurer has complied with the offer requirements 597
887	887	under subsection (7) regarding a deductible applicable to losses 598
888	888	from perils other than a hurricane. 599
889	889	2. The roof deductible may not exceed the lesse r of 2 600
890	890
891	891	HB 1017 2024
892	892
893	893
894	894
895	895	CODING: Words stricken are deletions; words underlined are additions.
896	896	hb1017-00
897	897	Page 25 of 33
898	898	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
899	899
900	900
901	901
902	902	percent of the Coverage A limit of the policy or 50 percent of 601
903	903	the cost to replace the roof. 602
904	904	3. The premium that a policyholder is charged for the 603
905	905	policy includes an actuarially sound credit or premium discount 604
906	906	for the roof deductible. 605
907	907	4. The roof deductible applies only to a claim adjusted on 606
908	908	a replacement cost basis. 607
909	909	5. The roof deductible does not apply to any of the 608
910	910	following events: 609
911	911	a. A total loss to a primary structure in accordance with 610
912	912	the valued policy law under s. 627.702 which is caused by a 611
913	913	covered peril. 612
914	914	b. A roof loss resulting from a hurricane as defined in s. 613
915	915	627.4025(2)(c). 614
916	916	c. A roof loss resulting from a tree fall or other hazard 615
917	917	that damages the roof and punctures the roof deck. 616
918	918	d. A roof loss requiring the repair of less than 50 617
919	919	percent of the roof. 618
920	920	619
921	921	If a roof deductible is applied, no other deductible under the 620
922	922	policy may be applied to the loss or to any other loss to the 621
923	923	property caused by the same covered peril. 622
924	924	(b) At the time of initial issuance of a personal l ines 623
925	925	residential property insurance policy, an insurer may offer the 624
926	926	policyholder a separate roof deductible with the ability to opt -625
927	927
928	928	HB 1017 2024
929	929
930	930
931	931
932	932	CODING: Words stricken are deletions; words underlined are additions.
933	933	hb1017-00
934	934	Page 26 of 33
935	935	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
936	936
937	937
938	938
939	939	out and reject the separate roof deductible. To reject a 626
940	940	separate roof deductible, the policyholder shall sign a form 627
941	941	approved by the office. 628
942	942	(c) At the time of renewal, an insurer may add a separate 629
943	943	roof deductible to a personal lines residential property 630
944	944	insurance policy if the insurer provides a notice of change in 631
945	945	policy terms pursuant to s. 627.43141. The insurer must a lso 632
946	946	offer the policyholder the ability to opt -out and reject the 633
947	947	separate roof deductible. To reject a separate roof deductible, 634
948	948	the policyholder shall sign a form approved by the office. 635
949	949	(d) The office shall expedite the review of any filing of 636
950	950	insurance forms that only contain a separate roof deductible 637
951	951	pursuant to this subsection. The commission may adopt model 638
952	952	forms or guidelines that provide options for roof deductible 639
953	953	language which may be used for filing by insurers. If an insurer 640
954	954	makes a filing pursuant to a model form or guideline issued by 641
955	955	the office, the office must review the filing within the initial 642
956	956	30-day review period authorized by s. 627.410(2), and the roof 643
957	957	deductible portion of the filing is not subject to the 15 -day 644
958	958	extension for review under that subsection. 645
959	959	(11) A property insurer that issues or renews an insurance 646
960	960	policy or contract covering real property in this state on or 647
961	961	after January 1, 2025, may not use a property's preexisting 648
962	962	condition, a date of loss that predates the date of a claim, or 649
963	963	faulty installation or workmanship as a defense for denying a 650
964	964
965	965	HB 1017 2024
966	966
967	967
968	968
969	969	CODING: Words stricken are deletions; words underlined are additions.
970	970	hb1017-00
971	971	Page 27 of 33
972	972	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
973	973
974	974
975	975
976	976	claim. 651
977	977	Section 8. Subsection (8) of section 627.715, Florida 652
978	978	Statutes, is amended to read: 653
979	979	627.715 Flood insurance. —An authorized insurer may issue 654
980	980	an insurance policy, cont ract, or endorsement providing personal 655
981	981	lines residential coverage for the peril of flood or excess 656
982	982	coverage for the peril of flood on any structure or the contents 657
983	983	of personal property contained therein, subject to this section. 658
984	984	This section does not appl y to commercial lines residential or 659
985	985	commercial lines nonresidential coverage for the peril of flood. 660
986	986	An insurer may issue flood insurance policies, contracts, 661
987	987	endorsements, or excess coverage on a standard, preferred, 662
988	988	customized, flexible, or supplemental basis. 663
989	989	(8)(a) An agent must provide a written notice to be signed 664
990	990	by every the applicant advising the applicant of flood risk. 665
991	991	(b) If before the agent places flood insurance coverage 666
992	992	with an admitted or surplus lines insurer for a property 667
993	993	receiving flood insurance under the National Flood Insurance 668
994	994	Program, the agent, before placing new flood coverage for the 669
995	995	property, must also provide to the applicant a written . The 670
996	996	notice advising must notify the applicant that, if the applicant 671
997	997	discontinues coverage under the National Flood Insurance Program 672
998	998	which is provided at a subsidized rate, the full risk rate for 673
999	999	flood insurance may apply to the property if the applicant later 674
1000	1000	seeks to reinstate coverage under the program. 675
1001	1001
1002	1002	HB 1017 2024
1003	1003
1004	1004
1005	1005
1006	1006	CODING: Words stricken are deletions; words underlined are additions.
1007	1007	hb1017-00
1008	1008	Page 28 of 33
1009	1009	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
1010	1010
1011	1011
1012	1012
1013	1013	Section 9. Paragraph (a) of subsection (2) of section 676
1014	1014	627.7152, Florida Statutes, is amended to read: 677
1015	1015	627.7152 Assignment agreements. — 678
1016	1016	(2)(a) An assignment agreement must: 679
1017	1017	1. Be executed under a residential property insurance 680
1018	1018	policy or under a commercial property insurance poli cy as that 681
1019	1019	term is defined in s. 627.0625(1), issued on or after July 1, 682
1020	1020	2019, and before January 1, 2023. 683
1021	1021	2. Be in writing and executed by and between the assignor 684
1022	1022	and the assignee. 685
1023	1023	3. Contain a provision that allows the assignor to rescind 686
1024	1024	the assignment agreement without a penalty or fee by submitting 687
1025	1025	a written notice of rescission signed by the assignor to the 688
1026	1026	assignee within 14 days after the execution of the agreement, at 689
1027	1027	least 30 days after the date work on the property is scheduled 690
1028	1028	to commence if the assignee has not substantially performed, or 691
1029	1029	at least 30 days after the execution of the agreement if the 692
1030	1030	agreement does not contain a commencement date and the assignee 693
1031	1031	has not begun substantial work on the property. 694
1032	1032	4. Contain a provision requiri ng the assignee to provide a 695
1033	1033	copy of the executed assignment agreement to the insurer within 696
1034	1034	3 business days after the date on which the assignment agreement 697
1035	1035	is executed or the date on which work begins, whichever is 698
1036	1036	earlier. Delivery of the copy of the as signment agreement to the 699
1037	1037	insurer may be made: 700
1038	1038
1039	1039	HB 1017 2024
1040	1040
1041	1041
1042	1042
1043	1043	CODING: Words stricken are deletions; words underlined are additions.
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1046	1046	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
1047	1047
1048	1048
1049	1049
1050	1050	a. By personal service, overnight delivery, or electronic 701
1051	1051	transmission, with evidence of delivery in the form of a receipt 702
1052	1052	or other paper or electronic acknowledgment by the insurer; or 703
1053	1053	b. To the location designated for receipt of such 704
1054	1054	agreements as specified in the policy. 705
1055	1055	5. Contain a written, itemized, per -unit cost estimate of 706
1056	1056	the services to be performed by the assignee. 707
1057	1057	6. Relate only to work to be performed by the assignee for 708
1058	1058	services to protect, repair, restore, or replace a dwelling or 709
1059	1059	structure or to mitigate against further damage to such 710
1060	1060	property. 711
1061	1061	7. Contain the following notice in 18 -point uppercase and 712
1062	1062	boldfaced type: 713
1063	1063	714
1064	1064	YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR 715
1065	1065	INSURANCE POLICY TO A THIRD PARTY, WHICH MAY RESULT IN 716
1066	1066	LITIGATION AGAINST YOUR INSURER. PLEASE READ AND UNDERSTAND THIS 717
1067	1067	DOCUMENT BEFORE SIGNING IT. YOU HAVE THE RIGHT TO CANCEL THIS 718
1068	1068	AGREEMENT WITHOUT PENALTY WITHIN 14 DAYS AFTER THE DATE THIS 719
1069	1069	AGREEMENT IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON 720
1070	1070	THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE HAS NOT 721
1071	1071	SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS AFTER THE EXECUTION 722
1072	1072	OF THE AGREEMENT IF THE AGREEMENT DOES NOT CONTAIN A 723
1073	1073	COMMENCEMENT DATE AND THE ASSIGN EE HAS NOT BEGUN SUBSTANTIAL 724
1074	1074	WORK ON THE PROPERTY. HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF 725
1075	1075
1076	1076	HB 1017 2024
1077	1077
1078	1078
1079	1079
1080	1080	CODING: Words stricken are deletions; words underlined are additions.
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1083	1083	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
1084	1084
1085	1085
1086	1086
1087	1087	ANY CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS RESCINDED. 726
1088	1088	THIS AGREEMENT DOES NOT CHANGE YOUR OBLIGATION TO PERFORM THE 727
1089	1089	DUTIES REQUIRED UNDER YOUR PROPERTY INSURANCE POLICY. 728
1090	1090	729
1091	1091	8. Contain a notice in 18 -point uppercase and boldfaced 730
1092	1092	type disclosing that the assignee is prohibited from taking any 731
1093	1093	legal action without the assignor's permission, including, but 732
1094	1094	not limited to, making a presuit settlement demand o r presuit 733
1095	1095	settlement offer. 734
1096	1096	9. Contain a provision requiring the assignee to indemnify 735
1097	1097	and hold harmless the assignor from all liabilities, damages, 736
1098	1098	losses, and costs, including, but not limited to, attorney fees. 737
1099	1099	Section 10. Section 627.7156, Florid a Statutes, is created 738
1100	1100	to read: 739
1101	1101	627.7156 Commission rulemaking. —By January 1, 2025, the 740
1102	1102	Financial Services Commission shall adopt rules: 741
1103	1103	(1) Requiring that each time legislation creating or 742
1104	1104	amending law to reform property insurance takes effect, proper ty 743
1105	1105	insurers offer a premium rate reduction to their insureds. 744
1106	1106	(2) Ensuring that insurance fraud committed by any person 745
1107	1107	can be easily reported, investigated, and, if necessary, 746
1108	1108	prosecuted. 747
1109	1109	(3) Redetermining flood zones statewide for use when 748
1110	1110	assigning flood risks. 749
1111	1111	Section 11. No later than October 1, 2025, the Department 750
1112	1112
1113	1113	HB 1017 2024
1114	1114
1115	1115
1116	1116
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1120	1120	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
1121	1121
1122	1122
1123	1123
1124	1124	of Financial Services shall adopt rules regarding its handling 751
1125	1125	of any allegation made by an insurer or an employee or 752
1126	1126	contractor thereof of insurance fraud in connection with any 753
1127	1127	violation specified in s. 626.9892(2), Florida Statutes. Such 754
1128	1128	rules must require that: 755
1129	1129	(1) The Department of Financial Services inform the 756
1130	1130	Division of Investigative and Forensic Services of any such 757
1131	1131	allegation. 758
1132	1132	(2) The department promptly investigate suc h allegations. 759
1133	1133	(3) If the department determines that there was no fraud, 760
1134	1134	the insurer alleging such fraud be appropriately sanctioned by a 761
1135	1135	fine of up to $100,000. 762
1136	1136	(4) All documents relating to such sanctions are public 763
1137	1137	records. 764
1138	1138	Section 12. (1) The Office of Program Policy Analysis and 765
1139	1139	Government Accountability (OPPAGA) shall conduct a study to 766
1140	1140	evaluate the effectiveness of the property insurance mediation 767
1141	1141	program set forth in s. 627.7015, Florida Statutes. The study's 768
1142	1142	scope must include, but need no t be limited to: 769
1143	1143	(a) Improvements in the public's awareness of the program 770
1144	1144	and the advantages of participation in the program. 771
1145	1145	(b) Program resource needs. 772
1146	1146	(2) The study must include recommendations for any changes 773
1147	1147	needed to improve the efficiency of the program to maximize its 774
1148	1148	usefulness as an alternative to litigation. 775
1149	1149
1150	1150	HB 1017 2024
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1152	1152
1153	1153
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1157	1157	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
1158	1158
1159	1159
1160	1160
1161	1161	(3) In conducting the study, OPPAGA shall consult with the 776
1162	1162	Department of Financial Services, insurers, and organizations 777
1163	1163	representing insurance consumers. 778
1164	1164	(4) OPPAGA shall submit a report on its findings to the 779
1165	1165	President of the Senate and the Speaker of the House of 780
1166	1166	Representatives by December 1, 2025. 781
1167	1167	Section 13. Section 4 of chapter 2022 -268, Laws of 782
1168	1168	Florida, is amended to read: 783
1169	1169	Section 4. (1) For the 2024-2025 2022-2023 fiscal year, 784
1170	1170	the sum of $300 $150 million in nonrecurring funds is 785
1171	1171	appropriated from the General Revenue Fund to the Department of 786
1172	1172	Financial Services for the My Safe Florida Home Program. The 787
1173	1173	funds shall be placed in reserve. The department shall submit 788
1174	1174	budget amendments requesting release of the funds held in 789
1175	1175	reserve pursuant to chapter 216, Florida Statutes. The budget 790
1176	1176	amendments shall include a detailed spending plan. 791
1177	1177	(2) The funds must shall be allocated as follows: 792
1178	1178	(a) Fifty Twenty-five million dollars for hurricane 793
1179	1179	mitigation inspections. 794
1180	1180	(b) Two hundred thirty One hundred fifteen million dollars 795
1181	1181	for mitigation grants. 796
1182	1182	(c) Eight Four million dollars for education and consumer 797
1183	1183	awareness. 798
1184	1184	(d) Two One million dollars for public outreach for 799
1185	1185	contractors and real estate brokers and sales associates. 800
1186	1186
1187	1187	HB 1017 2024
1188	1188
1189	1189
1190	1190
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1194	1194	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
1195	1195
1196	1196
1197	1197
1198	1198	(e) Ten Five million dollars for administrative costs. 801
1199	1199	(3) Any unexpended balance of funds from this 802
1200	1200	appropriation remaining on June 30, 2025 2023, shall revert and 803
1201	1201	is appropriated to the Department of Financial Services for the 804
1202	1202	2025-2026 2023-2024 fiscal year for the same purpose. 805
1203	1203	(4) The department may adopt emergency rules pursuant to 806
1204	1204	s. 120.54, Florida Statutes, at any time, as are necessary to 807
1205	1205	implement this section and s. 215.5586, Florida St atutes, as 808
1206	1206	amended by this act. The Legislature finds that such emergency 809
1207	1207	rulemaking authority is necessary to address a critical need in 810
1208	1208	the state's problematic property insurance market. The 811
1209	1209	Legislature further finds that the uniquely short timeframe 812
1210	1210	needed to effectively implement this section for the 2024-2025 813
1211	1211	2022-2023 fiscal year requires that the department adopt rules 814
1212	1212	as quickly as practicable. Therefore, in adopting such emergency 815
1213	1213	rules, the department need not make the findings required by s. 816
1214	1214	120.54(4)(a), Florida Statutes. Emergency rules adopted under 817
1215	1215	this section are exempt from s. 120.54(4)(c), Florida Statutes, 818
1216	1216	and shall remain in effect until replaced by rules adopted under 819
1217	1217	the nonemergency rulemaking procedures of chapter 120, Florida 820
1218	1218	Statutes, which must occur no later than July 1, 2025 2023. 821
1219	1219	(5) This section expires shall expire on October 1, 2026 822
1220	1220	2024. 823
1221	1221	Section 14. This act shall take effect July 1, 2024. 824