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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to residual market insurers; amending 2
s. 626.914, F.S.; removing the definition of the term 3
"diligent effort"; amending s. 626.916, F.S.; removing 4
the diligent effort and other requirements for 5
insurance coverage to be eligible for export; 6
providing that insureds are presumed to have been 7
informed and to know of the availability of certain 8
insurance coverage under specified circumstances; 9
amending s. 627.351, F.S.; requiring notification of 10
arbitration before the Division of Administrative 11
Hearings as an option for dispute resolution 12
procedures under Citizens Property Insurance 13
Corporation; removing obsolete language; providing an 14
effective date. 15
16
Be It Enacted by the Legislature of the State of Florida: 17
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Section 1. Subsection (4) of section 626.914, Florida 19
Statutes, is amended to read: 20
626.914 Definitions. —As used in this Surplus Lines Law, 21
the term: 22
(4) "Diligent effort" means s eeking coverage from and 23
having been rejected by at least three authorized insurers 24
currently writing this type of coverage and documenting these 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
rejections. However, if the residential structure has a dwelling 26
replacement cost of $700,000 or more, the ter m means seeking 27
coverage from and having been rejected by at least one 28
authorized insurer currently writing this type of coverage and 29
documenting this rejection. 30
Section 2. Paragraphs (a) and (e) of subsection (1) and 31
paragraph (b) of subsection (3) of section 626.916, Florida 32
Statutes, are amended to read: 33
626.916 Eligibility for export. — 34
(1) No insurance coverage shall be eligible for export 35
unless it meets all of the following conditions: 36
(a) The coverage must be of a kind or class not generall y 37
available from authorized insurers transacting insurance in this 38
state The full amount of insurance required must not be 39
procurable, after a diligent effort has been made by the 40
producing agent to do so, from among the insurers authorized to 41
transact and actually writing that kind and class of insurance 42
in this state, and the amount of insurance exported shall be 43
only the excess over the amount so procurable from authorized 44
insurers. Surplus lines agents must verify that a diligent 45
effort has been made by requiring a properly documented 46
statement of diligent effort from the retail or producing agent. 47
However, to be in compliance with the diligent effort 48
requirement, the surplus lines agent's reliance must be 49
reasonable under the particular circumstances su rrounding the 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
export of that particular risk. Reasonableness shall be assessed 51
by taking into account factors which include, but are not 52
limited to, a regularly conducted program of verification of the 53
information provided by the retail or producing agent. 54
Declinations must be documented on a risk -by-risk basis. If it 55
is not possible to obtain the full amount of insurance required 56
by layering the risk, it is permissible to export the full 57
amount. 58
(e) The insured has signed or otherwise provided 59
documented acknowledgment of a disclosure in substantially the 60
following form: "You are agreeing to place coverage in the 61
surplus lines market. Coverage may be available in the admitted 62
market. Persons insured by surplus lines carriers are not 63
protected under the Fl orida Insurance Guaranty Act with respect 64
to any right of recovery for the obligation of an insolvent 65
unlicensed insurer." If the acknowledgment of the disclosure is 66
signed by the insured, the insured is presumed to have been 67
informed and to know that othe r coverage may be available. 68
(3) 69
(b) Subsection (1) does not apply to classes of insurance 70
which are related to indemnity of deductibles for property 71
insurance or are subject to s. 627.062(3)(d)1. These classes may 72
be exportable under the following cond itions: 73
1. The insurance must be placed only by or through a 74
surplus lines agent licensed in this state; 75
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2. The insurer must be made eligible under s. 626.918; and 76
3. The insured has complied with paragraph (1)(e). If the 77
disclosure is signed by the insured, the insured is presumed to 78
have been informed and to know that other coverage may be 79
available, and, with respect to the diligent -effort requirement 80
under subsection (1), there is no liability on the part of, and 81
no cause of action arises against, the retail agent presenting 82
the form. 83
Section 3. Paragraph (ll) of subsection (6) of section 84
627.351, Florida Statutes, is amended to read: 85
627.351 Insurance risk apportionment plans. — 86
(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 87
(ll)1. In addition to any other method of alternative 88
dispute resolution authorized by state law, the corporation may 89
adopt policy forms that provide an option for the insured to 90
select, at the time of entering into the policy or upon renewal, 91
to have disputes regarding the corporation's claim 92
determinations for the resolution of disputes regarding its 93
claim determinations , including disputes regarding coverage for, 94
or the scope and value of, a claim, resolved through arbitration 95
in a proceeding before the Division of Ad ministrative Hearings. 96
Each insured must be notified in writing, at the time of 97
entering into a policy with the corporation and upon each 98
renewal, that the insured must decide whether to resolve 99
disputes through arbitration before the Division of 100
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Administrative Hearings. Such notification must be in at least 101
12-point boldfaced type, immediately preceding the insured's 102
signature in substantially the following form: 103
104
AN INSURED MUST CHOOSE AT THE TIME OF ENTERING INTO THIS POLICY 105
OR UPON RENEWAL WHETHER TO RE SOLVE DISPUTES THROUGH ARBITRATION 106
BEFORE THE DIVISION OF ADMINISTRATIVE HEARINGS. THE INSURED MUST 107
INDICATE THIS SELECTION BY MARKING 'ACCEPT' OR 'DECLINE' BELOW. 108
THIS DECISION CANNOT BE CHANGED DURING THE TERM OF THE POLICY. 109
110
2. Any such policies are n ot subject to s. 627.70154. All 111
arbitrations before proceedings in the Division of 112
Administrative Hearings pursuant to such policies are subject to 113
ss. 57.105 and 768.79 as if filed in the courts of this state 114
and are not considered chapter 120 administrat ive proceedings. 115
Rule 1.442, Florida Rules of Civil Procedure, applies to any 116
offer served pursuant to s. 768.79, except that, notwithstanding 117
any provision in Rule 1.442, Florida Rules of Civil Procedure, 118
to the contrary, an offer shall not be served earl ier than 10 119
days after filing the request for hearing with the Division of 120
Administrative Hearings and shall not be served later than 10 121
days before the date set for the final hearing. The 122
administrative law judge in such arbitrations proceedings shall 123
award attorney fees and other relief pursuant to ss. 57.105 and 124
768.79. The corporation may not seek, and the office may not 125
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approve, a maximum hourly rate for attorney fees. 126
2. The corporation may contract with the division to 127
conduct proceedings to resolv e disputes regarding its claim 128
determinations as may be provided for in the applicable policies 129
of insurance. This subparagraph expires July 1, 2025. 130
Section 4. This act shall take effect July 1, 2025. 131