Florida Senate - 2024 CS for CS for SB 1104 By the Committees on Rules; and Judiciary; and Senator Bradley 595-03793-24 20241104c2 1 A bill to be entitled 2 An act relating to policy cancellations and 3 nonrenewals by property insurers; amending s. 4 626.9201, F.S.; prohibiting insurers from canceling 5 and nonrenewing, within certain timeframes, policies 6 covering personal residential or commercial 7 residential properties damaged by hurricanes or wind 8 losses; providing exceptions; providing construction; 9 authorizing the Financial Services Commission to adopt 10 rules and the Commissioner of Insurance Regulation to 11 issue certain orders; authorizing the Commissioner of 12 Insurance Regulation to waive certain provisions; 13 providing construction; requiring that certain 14 policies contain similar terms under certain 15 circumstances; amending s. 627.4133, F.S.; prohibiting 16 insurers from canceling and nonrenewing, within 17 certain timeframes, policies covering personal 18 residential or commercial residential properties 19 damaged by hurricanes or wind losses; providing that 20 such prohibition applies to flood damages caused by 21 hurricanes under certain circumstances; providing that 22 an insurer may not cancel personal residential or 23 commercial residential property insurance policies 24 until certain repairs are made or a specified policy 25 renewal expires; providing that certain claims for 26 loss or damage will not be covered under an extended 27 or renewed policy; providing applicability; revising 28 exceptions; authorizing the Commissioner of Insurance 29 to waive certain provisions; providing construction; 30 deleting applicability; revising construction; 31 requiring that certain policies contain similar terms 32 under certain circumstances; providing an effective 33 date. 34 35 Be It Enacted by the Legislature of the State of Florida: 36 37 Section 1.Paragraph (c) is added to subsection (2) of 38 section 626.9201, Florida Statutes, to read: 39 626.9201Notice of cancellation or nonrenewal. 40 (2)An insurer issuing a policy providing coverage for 41 property, casualty, surety, or marine insurance must give the 42 named insured written notice of cancellation or termination 43 other than nonrenewal at least 45 days before the effective date 44 of the cancellation or termination, including in the written 45 notice the reasons for the cancellation or termination, except 46 that: 47 (c)An insurer may not cancel or nonrenew a personal 48 residential or commercial residential property insurance policy 49 covering a dwelling or residential property located in this 50 state: 51 1.For a period of 90 days after the dwelling or 52 residential property has been repaired, if such property has 53 been damaged as a result of a hurricane or wind loss that is the 54 subject of the declaration of emergency pursuant to s. 252.36 55 and the filing of an order by the Commissioner of Insurance 56 Regulation. Damage under this subsection includes flood damage 57 caused by a hurricane if flood is a covered peril under the 58 personal residential or commercial residential property 59 insurance policy. If flood is not a covered peril under the 60 personal residential or commercial residential property 61 insurance policy, and the property has been damaged as a result 62 of flood caused by a hurricane, an insurer may not cancel or 63 nonrenew the personal residential or commercial residential 64 property insurance policy until the earlier of when the property 65 has been repaired or the expiration of one subsequent renewal of 66 the policy that was in force at the time of the loss. If an 67 insurer is required to extend or renew a policy pursuant to this 68 subparagraph, any claim for loss or damage arising from 69 unrepaired damage as a result of flood caused by a hurricane 70 will not be covered under the extended or renewed policy. Such 71 loss or damage will be excluded from the extended or renewed 72 policy regardless of any other cause or event that contributes 73 concurrently or in any sequence to the loss. When flood is not a 74 covered peril under the personal residential or commercial 75 residential property insurance policy, the requirements under 76 this subparagraph to extend or renew the policy do not apply if 77 the insurer has no actual knowledge of the flood damage or if 78 the flood damage, along with the physical evidence of the 79 damage, is not communicated to the insurer before the expiration 80 of the policy. 81 2.However, an insurer or agent may cancel or nonrenew such 82 a policy before the repair of the dwelling or residential 83 property: 84 a.Upon 10 days notice: 85 (I)For nonpayment of premium; or 86 (II)If the named insured no longer has an insurable 87 interest in the property; or 88 b.Upon 45 days notice: 89 (I)For a material misstatement or fraud related to the 90 claim; 91 (II)If the insurer determines that the insured has 92 unreasonably caused a delay in the repair of the dwelling; 93 (III)If, after the expiration of the declaration of 94 emergency pursuant to s. 252.36 and the order by the 95 Commissioner of Insurance Regulation, the insurer has made a 96 reasonable written inquiry to the insured as to the status of 97 the repairs, and the insured has failed to respond within 30 98 calendar days to provide information that is responsive to the 99 inquiry, including the reasons for any delay in completing 100 repairs, to the address or e-mail account designated by the 101 insurer or its agent; or 102 (IV)If the insurer has paid the policy limits for a loss 103 to the insured dwelling under a personal residential property 104 insurance policy, or policy limits for a loss to each insured 105 structure that was damaged under a commercial residential 106 property insurance policy. 107 3.If the insurer elects to nonrenew a policy covering a 108 property that has been damaged, the insurer must provide at 109 least 90 days notice to the insured that the insurer intends to 110 nonrenew the policy 90 days after the dwelling or residential 111 property has been repaired. This subsection does not prevent the 112 insurer from canceling or nonrenewing the policy 90 days after 113 the repairs are complete for the same reasons the insurer would 114 otherwise have canceled or nonrenewed the policy but for the 115 limitations of this subsection. The commission may adopt rules, 116 and the Commissioner of Insurance Regulation may issue orders, 117 necessary to implement this subsection. The Commissioner of 118 Insurance Regulation may also waive any of the provisions of 119 this paragraph upon approval of a petition filed by an insurer 120 requiring relief due to solvency concerns or other factors that 121 could harm policyholders if the provisions of this paragraph 122 were enforced upon the insurer. 123 4.For purposes of this paragraph: 124 a.A structure is deemed to be repaired: 125 (I)When substantially completed and restored to the extent 126 that it is insurable by Citizens Property Insurance Corporation 127 or by another authorized insurer or eligible surplus lines 128 insurer writing policies in this state; or 129 (II)When one of the following persons has inspected and 130 certified or attested to the completion of the repairs: 131 (A)A home inspector licensed under s. 468.8314; 132 (B)A building code inspector certified under s. 468.607; 133 (C)A general, building, or residential contractor licensed 134 under s. 489.111; 135 (D)A professional engineer licensed under s. 471.015; or 136 (E)A professional architect licensed under s. 481.213. 137 b.If a policy is extended or renewed to comply with this 138 paragraph or with any other provision of the Commissioner of 139 Insurance Regulations order, the policy must contain similar 140 policy terms as the policy being extended or renewed. However, 141 this paragraph does not impact current law with regard to the 142 rates insurers may charge for policies extended or renewed under 143 this paragraph. 144 5.This subsection does not affect the provisions of s. 145 95.11 or s. 627.70132. 146 6.This paragraph is not intended to revise or modify any 147 provision of an emergency order issued by the office before July 148 1, 2024. 149 Section 2.Paragraph (e) of subsection (2) of section 150 627.4133, Florida Statutes, is amended to read: 151 627.4133Notice of cancellation, nonrenewal, or renewal 152 premium. 153 (2)With respect to any personal lines or commercial 154 residential property insurance policy, including, but not 155 limited to, any homeowner, mobile home owner, farmowner, 156 condominium association, condominium unit owner, apartment 157 building, or other policy covering a residential structure or 158 its contents: 159 (e)1.An authorized insurer may not cancel or nonrenew a 160 personal residential or commercial residential property 161 insurance policy covering a dwelling or residential property 162 located in this state: 163 a.For a period of 90 days after the dwelling or 164 residential property has been repaired, if such property has 165 been damaged as a result of a hurricane or wind loss that is the 166 subject of the declaration of emergency pursuant to s. 252.36 167 and the filing of an order by the Commissioner of Insurance 168 Regulation. Damage under this sub-subparagraph includes flood 169 damage caused by a hurricane if flood is a covered peril under 170 the personal residential or commercial residential property 171 insurance policy. If flood is not a covered peril under the 172 personal residential or commercial residential property 173 insurance policy, and the property has been damaged as a result 174 of flood caused by a hurricane, an insurer may not cancel or 175 nonrenew the personal residential or commercial residential 176 property insurance policy until the earlier of when the property 177 has been repaired or the expiration of one subsequent renewal of 178 the policy that was in force at the time of loss. If an insurer 179 is required to extend or renew a policy pursuant to this sub 180 subparagraph, any claim for loss or damage arising from 181 unrepaired damage as a result of flood caused by a hurricane 182 will not be covered under the extended or renewed policy. Such 183 loss or damage will be excluded from the extended or renewed 184 policy regardless of any other cause or event that contributes 185 concurrently or in any sequence to the loss. When flood is not a 186 covered peril under the personal residential or commercial 187 residential property insurance policy, the requirements under 188 this sub-subparagraph to extend or renew the policy do not apply 189 if the insurer has no actual knowledge of the flood damage or if 190 the flood damage, along with the physical evidence of the 191 damage, is not communicated to the insurer before the expiration 192 of the policy. 193 b.Until the earlier of when the dwelling or residential 194 property has been repaired or 1 year after the insurer issues 195 the final claim payment, if such property was damaged by any 196 covered peril and sub-subparagraph a. does not apply. 197 c.The restrictions on cancellation and nonrenewal in sub 198 subparagraph b. are not applicable to loss or damage to the 199 insured property that is valued at less than the applicable 200 deductible for a personal residential property insurance policy 201 or less than the applicable deductible for a commercial 202 residential insurance policy. 203 2.However, an insurer or agent may cancel or nonrenew such 204 a policy before prior to the repair of the dwelling or 205 residential property: 206 a.Upon 10 days notice: 207 (I)For nonpayment of premium; or 208 (II)If the named insured no longer has an insurable 209 interest in the property; or 210 b.Upon 45 days notice: 211 (I)For a material misstatement or fraud related to the 212 claim; 213 (II)If the insurer determines that the insured has 214 unreasonably caused a delay in the repair of the dwelling; or 215 (III)If, after the expiration of the declaration of 216 emergency pursuant to s. 252.36 and the order by the 217 Commissioner of Insurance Regulation, the insurer has made a 218 reasonable written inquiry to the insured as to the status of 219 the repairs and the insured has failed to respond within 30 220 calendar days to provide information that is responsive to the 221 inquiry, including the reasons for any delay in completing 222 repairs, to the address or e-mail account designated by the 223 insurer or its agent; or 224 (IV)If the insurer has paid policy limits for a loss to 225 the insured dwelling under a personal residential policy, or 226 policy limits for a loss to each insured structure that was 227 damaged under a commercial residential policy. 228 3.If the insurer elects to nonrenew a policy covering a 229 property that has been damaged, the insurer must shall provide 230 at least 90 days notice to the insured that the insurer intends 231 to nonrenew the policy 90 days after the dwelling or residential 232 property has been repaired. Nothing in This paragraph does not 233 shall prevent the insurer from canceling or nonrenewing the 234 policy 90 days after the repairs are complete for the same 235 reasons the insurer would otherwise have canceled or nonrenewed 236 the policy but for the limitations of subparagraph 1. The 237 Financial Services Commission may adopt rules, and the 238 Commissioner of Insurance Regulation may issue orders, necessary 239 to implement this paragraph. The Commissioner of Insurance 240 Regulation may also waive any of the provisions of this 241 paragraph upon approval of a petition filed by an insurer 242 requesting relief due to solvency concerns or other factors that 243 could harm policyholders if the provisions of this paragraph 244 were enforced upon the insurer. 245 4.This paragraph is not intended to revise or modify any 246 provision of an emergency order issued by the office before July 247 1, 2024 This paragraph shall also apply to personal residential 248 and commercial residential policies covering property that was 249 damaged as the result of Hurricane Ian or Hurricane Nicole. 250 5.For purposes of this paragraph: 251 a.A structure is deemed to be repaired: 252 (I)When substantially completed and restored to the extent 253 that it is insurable by Citizens Property Insurance Corporation 254 or by another authorized insurer writing policies in this state; 255 or 256 (II)When one of the following persons have inspected and 257 certified or attested to the completion of the repairs: 258 (A)A home inspector licensed under s. 468.8314; 259 (B)A building code inspector certified under s. 468.607; 260 (C)A general, building, or residential contractor licensed 261 under s. 489.111; 262 (D)A professional engineer licensed under s. 471.015; or 263 (E)A professional architect licensed under s. 481.213. 264 b.The term insurer means an authorized insurer. 265 c.If a policy is extended or renewed to comply with this 266 paragraph or with any other provision of the Commissioner of 267 Insurance Regulations order, the policy must contain similar 268 policy terms as the policy being extended or renewed unless the 269 insurer has updated approved forms that will apply to all 270 insureds with the same endorsement. However, this paragraph does 271 not impact current law with regard to the rates insurers may 272 charge for policies extended or renewed under this paragraph. 273 6.This paragraph does not affect the provisions of s. 274 95.11 or. s. 627.70132. 275 Section 3.This act shall take effect July 1, 2024.