Bill Text: FL S1334 | 2020 | Regular Session | Introduced


Bill Title: Financial Services

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2020-03-14 - Died in Banking and Insurance [S1334 Detail]

Download: Florida-2020-S1334-Introduced.html
       Florida Senate - 2020                                    SB 1334
       
       
        
       By Senator Brandes
       
       
       
       
       
       24-01620E-20                                          20201334__
    1                        A bill to be entitled                      
    2         An act relating to financial services; amending s.
    3         215.555, F.S.; redefining the term “covered policy”
    4         under the Florida Hurricane Catastrophe Fund in
    5         relation to certain collateral protection insurance
    6         policies; requiring the Office of Insurance Regulation
    7         to retain an independent consultant to audit the
    8         fund’s reimbursement premium formula at specified
    9         intervals; specifying requirements for the audit;
   10         requiring the office to report audit findings and
   11         certain recommendations to the Financial Services
   12         Commission and the Legislature; amending s. 319.30,
   13         F.S.; revising a certain electronic signature
   14         requirement for a motor vehicle salvage certificate of
   15         title; amending s. 624.155, F.S.; revising
   16         requirements for the civil remedy notice provided to
   17         insurers and the Department of Financial Services;
   18         revising the timeframe for an insurer to pay damages
   19         or for certain circumstances to be corrected; revising
   20         circumstances that toll the applicable statute of
   21         limitations; amending ss. 624.307 and 624.315, F.S.;
   22         providing that certain aggregate information
   23         containing trade secret information may be publicly
   24         disclosed by the department or office, except under
   25         certain circumstances; amending s. 626.854, F.S.;
   26         deleting a requirement for certain persons acting on
   27         behalf of an insurer to provide certain notice before
   28         scheduling a meeting or onsite inspection for certain
   29         purposes; conforming a cross-reference; amending s.
   30         626.916, F.S.; adding a condition for export
   31         eligibility under the Surplus Lines Law for certain
   32         risks; amending s. 626.918, F.S.; adding certain
   33         unauthorized insurers that may become eligible surplus
   34         lines insurers; amending s. 626.931, F.S.; deleting a
   35         requirement for certain surplus lines agents to file
   36         quarterly affidavits with the Florida Surplus Lines
   37         Service Office; conforming cross-references; amending
   38         s. 626.932, F.S.; revising the time when surplus lines
   39         agents must remit surplus lines taxes; amending s.
   40         626.935, F.S.; conforming a provision to changes made
   41         by the act; amending s. 627.062, F.S.; specifying that
   42         certain periods ending on a weekend or on certain
   43         holidays are extended until the conclusion of the next
   44         business day; prohibiting the office from disapproving
   45         a homeowners’ insurance rate in a rate filing solely
   46         on specified grounds; amending s. 627.0629, F.S.;
   47         authorizing, rather than requiring, rate filings for
   48         certain residential property insurance to include
   49         certain rate factors; amending ss. 627.0651 and
   50         627.410, F.S.; specifying that certain periods ending
   51         on a weekend or on certain holidays are extended until
   52         the conclusion of the next business day; amending s.
   53         627.7011, F.S.; providing that homeowners’ insurers
   54         are not prohibited from offering policies or
   55         endorsements providing for a certain adjustment basis
   56         on certain losses; amending s. 627.70132, F.S.;
   57         revising property insurance coverages for which a
   58         notice of a claim must be given to the insurer within
   59         a specified timeframe; revising the timeframe for
   60         providing notices of hurricane claims; creating s.
   61         627.70152, F.S.; requiring named insureds to provide
   62         insurers with a specified notice as a condition
   63         precedent to filing suit under a property insurance
   64         policy; specifying the manner and timeframe in which
   65         such notice must be provided; requiring insurers to
   66         acknowledge receipt of the notice within a certain
   67         timeframe; providing that the named insured has the
   68         burden to demonstrate that the insurer is not
   69         prejudiced by certain circumstances; requiring the
   70         named insured to sign the civil complaint; amending s.
   71         627.714, F.S.; revising criteria for assessing a
   72         residential condominium unit owner’s loss assessment
   73         coverage; reviving, reenacting, and amending s.
   74         627.715(4), F.S.; providing an exemption from a
   75         diligent effort requirement for surplus lines agents
   76         exporting contracts or endorsements providing flood
   77         coverage; providing for expiration; amending s.
   78         627.7152, F.S.; specifying the manner in which an
   79         assignee of certain property insurance policy benefits
   80         must serve a notice of intent to initiate litigation;
   81         amending s. 627.7295, F.S.; decreasing the timeframe
   82         during which an insurer is prohibited from canceling a
   83         new policy or binder of motor vehicle insurance for
   84         nonpayment of premium, except under certain
   85         circumstances; amending s. 629.401, F.S.; revising
   86         criteria for surplus lines insurance in insurance
   87         exchanges; amending ss. 634.171, 634.317, and 634.419,
   88         F.S.; authorizing licensed personal lines and general
   89         lines agents to solicit, negotiate, advertise, or sell
   90         motor vehicle service agreements, home warranty
   91         contracts, and service warranty contracts,
   92         respectively, without specified licenses; providing
   93         effective dates.
   94          
   95  Be It Enacted by the Legislature of the State of Florida:
   96  
   97         Section 1. Paragraph (c) of subsection (2) of section
   98  215.555, Florida Statutes, is amended, and paragraph (f) is
   99  added to subsection (5) of that section, to read:
  100         215.555 Florida Hurricane Catastrophe Fund.—
  101         (2) DEFINITIONS.—As used in this section:
  102         (c) “Covered policy” means any insurance policy covering
  103  residential property in this state, including, but not limited
  104  to, any homeowner, mobile home owner, farm owner, condominium
  105  association, condominium unit owner, tenant, or apartment
  106  building policy, or any other policy covering a residential
  107  structure or its contents issued by any authorized insurer,
  108  including a commercial self-insurance fund holding a certificate
  109  of authority issued by the Office of Insurance Regulation under
  110  s. 624.462, the Citizens Property Insurance Corporation, and any
  111  joint underwriting association or similar entity created under
  112  law. The term “covered policy” includes any collateral
  113  protection insurance policy covering personal residences which
  114  protects both the borrower’s and the lender’s financial
  115  interests, in an amount at least equal to the coverage amount
  116  for the dwelling in place under the lapsed homeowner’s policy,
  117  the coverage amount requested by the lender, provided the
  118  homeowner has been notified in writing of the coverage amount,
  119  or the coverage amount the homeowner requests from the insurer,
  120  if such collateral protection insurance policy can be accurately
  121  reported as required in subsection (5). Additionally, covered
  122  policies include policies covering the peril of wind removed
  123  from the Florida Residential Property and Casualty Joint
  124  Underwriting Association or from the Citizens Property Insurance
  125  Corporation, created under s. 627.351(6), or from the Florida
  126  Windstorm Underwriting Association, created under s. 627.351(2),
  127  by an authorized insurer under the terms and conditions of an
  128  executed assumption agreement between the authorized insurer and
  129  such association or Citizens Property Insurance Corporation.
  130  Each assumption agreement between the association and such
  131  authorized insurer or Citizens Property Insurance Corporation
  132  must be approved by the Office of Insurance Regulation before
  133  the effective date of the assumption, and the Office of
  134  Insurance Regulation must provide written notification to the
  135  board within 15 working days after such approval. “Covered
  136  policy” does not include any policy that excludes wind coverage
  137  or hurricane coverage or any reinsurance agreement and does not
  138  include any policy otherwise meeting this definition which is
  139  issued by a surplus lines insurer or a reinsurer. All commercial
  140  residential excess policies and all deductible buy-back policies
  141  that, based on sound actuarial principles, require individual
  142  ratemaking shall be excluded by rule if the actuarial soundness
  143  of the fund is not jeopardized. For this purpose, the term
  144  “excess policy” means a policy that provides insurance
  145  protection for large commercial property risks and that provides
  146  a layer of coverage above a primary layer insured by another
  147  insurer.
  148         (5) REIMBURSEMENT PREMIUMS.—
  149         (f)The Office of Insurance Regulation shall retain an
  150  independent consultant to audit the formula developed under this
  151  subsection beginning with the 2021 contract year and every 3
  152  years thereafter. The audit may not be performed by the
  153  independent consultant who developed the formula. The audit must
  154  evaluate whether the formula uses actuarially sound principles
  155  and whether insurers are paying an actuarially indicated
  156  premium. The Office of Insurance Regulation shall also recommend
  157  factors, if any, which would enhance the actuarial
  158  sophistication of ratemaking for the fund. The Office of
  159  Insurance Regulation shall report the findings of the audit and
  160  any recommendation to the Financial Services Commission, the
  161  President of the Senate, and the Speaker of the House of
  162  Representatives on or before March 1 of the year after the
  163  contract year audited.
  164         Section 2. Effective upon this act becoming a law,
  165  paragraph (d) of subsection (3) of section 319.30, Florida
  166  Statutes, is amended to read:
  167         319.30 Definitions; dismantling, destruction, change of
  168  identity of motor vehicle or mobile home; salvage.—
  169         (3)
  170         (d) An electronic signature that is consistent with chapter
  171  668 satisfies any signature required under this subsection,
  172  except that an electronic signature on an odometer disclosure
  173  submitted through an insurance company must be executed using an
  174  electronic signature, as defined in s. 668.003(4), which that
  175  uses a system providing an Identity Assurance Level,
  176  Authenticator Assurance Level, and Federation Assurance Level,
  177  as described in the National Institute of Standards and
  178  Technology Special Publication 800-63-3, as of December 1, 2017,
  179  which that are equivalent to or greater than:
  180         1. Level 2, for each level, for a certificate of
  181  destruction or.
  182         2. Level 3, for each level, for a salvage certificate of
  183  title.
  184         Section 3. Subsection (3) of section 624.155, Florida
  185  Statutes, is amended to read:
  186         624.155 Civil remedy.—
  187         (3)(a) As a condition precedent to bringing an action under
  188  this section, the department and the authorized insurer must
  189  have been given 60 days’ written notice of the violation. Notice
  190  to the authorized insurer must be delivered to the name and
  191  address designated by the insurer under s. 624.422(2).
  192         (b) The notice shall be on a form provided by the
  193  department and shall state with specificity the following
  194  information, and such other information as the department may
  195  require:
  196         1. The statutory provision, including the specific language
  197  of the statute, which the authorized insurer allegedly violated.
  198         2. The facts and circumstances giving rise to the
  199  violation.
  200         3. The name of any individual involved in the violation.
  201         4. Reference to specific policy language that is relevant
  202  to the violation, if any. If the person bringing the civil
  203  action is a third party claimant, she or he shall not be
  204  required to reference the specific policy language if the
  205  authorized insurer has not provided a copy of the policy to the
  206  third party claimant pursuant to written request.
  207         5. The damages to be paid by the insurer for the claim,
  208  available under and pursuant to the express terms and conditions
  209  of the policy, less any amount earlier paid by the insurer and
  210  any applicable policy deductibles. The notice may not demand
  211  vague remedial action regarding changes to claims-handling
  212  procedures or practices.
  213         6. A statement that the notice is given in order to perfect
  214  the right to pursue the civil remedy authorized by this section.
  215         (c) No action shall lie if, within 60 days after the
  216  insurer receives filing notice in accordance with this
  217  subsection, the damages are paid or the circumstances giving
  218  rise to the violation are corrected.
  219         (d) The authorized insurer that is the recipient of a
  220  notice filed pursuant to this section shall report to the
  221  department on the disposition of the alleged violation.
  222         (e) The applicable statute of limitations for an action
  223  under this section shall be tolled for a period of:
  224         1.Sixty-five 65 days by the mailing of the notice required
  225  by this subsection.
  226         2.Sixty days after the date appraisal is invoked pursuant
  227  to paragraph (f) or the mailing of a subsequent notice required
  228  by this subsection.
  229         (f) A notice required under this subsection may not be
  230  filed within 60 days after appraisal is invoked by any party in
  231  a residential property insurance claim.
  232         Section 4. Subsection (4) of section 624.307, Florida
  233  Statutes, is amended to read:
  234         624.307 General powers; duties.—
  235         (4) The department and office may each collect, propose,
  236  publish, and disseminate information relating to the subject
  237  matter of any duties imposed upon it by law. Aggregate
  238  information may include information asserted as trade secret
  239  information unless the trade secret information can be
  240  individually extrapolated, in which case the trade secret
  241  information remains protected as provided under s. 624.4213.
  242         Section 5. Subsection (4) is added to section 624.315,
  243  Florida Statutes, to read:
  244         624.315 Department; annual report.—
  245         (4)When aggregate information includes information
  246  asserted as trade secret information, the office may include the
  247  trade secret information in the report required under subsection
  248  (1) or may make the trade secret information available under
  249  subsection (2) unless the trade secret information can be
  250  individually extrapolated, in which case the trade secret
  251  information remains protected as provided under s. 624.4213.
  252         Section 6. Subsection (13) and present subsection (18) of
  253  section 626.854, Florida Statutes, are amended to read:
  254         626.854 “Public adjuster” defined; prohibitions.—The
  255  Legislature finds that it is necessary for the protection of the
  256  public to regulate public insurance adjusters and to prevent the
  257  unauthorized practice of law.
  258         (13) A company employee adjuster, independent adjuster,
  259  attorney, investigator, or other persons acting on behalf of an
  260  insurer that needs access to an insured or claimant or to the
  261  insured property that is the subject of a claim must provide at
  262  least 48 hours’ notice to the insured or claimant, public
  263  adjuster, or legal representative before scheduling a meeting
  264  with the claimant or an onsite inspection of the insured
  265  property. The insured or claimant may deny access to the
  266  property if the notice has not been provided. The insured or
  267  claimant may waive the 48-hour notice.
  268         (17)(18) Subsections (5)-(16) (5)-(17) apply only to
  269  residential property insurance policies and condominium unit
  270  owner policies as described in s. 718.111(11).
  271         Section 7. Paragraph (f) is added to subsection (1) of
  272  section 626.916, Florida Statutes, to read:
  273         626.916 Eligibility for export.—
  274         (1) No insurance coverage shall be eligible for export
  275  unless it meets all of the following conditions:
  276         (f) For risks placed with an insurer made eligible under s.
  277  626.918(2)(a)1., the policy or contract under which the
  278  insurance is exported must provide that any form of alternative
  279  dispute resolution, including, but not limited to, appraisal or
  280  arbitration, must be conducted in this state.
  281         Section 8. Paragraph (a) of subsection (2) of section
  282  626.918, Florida Statutes, is amended to read:
  283         626.918 Eligible surplus lines insurers.—
  284         (2) An unauthorized insurer may not be or become an
  285  eligible surplus lines insurer unless made eligible by the
  286  office in accordance with the following conditions:
  287         (a) The insurer must be either of the following:
  288         1.Wholly owned by an insurer domiciled in this state which
  289  is authorized, and has been authorized for at least the 3
  290  preceding years, in this state as to the kind or kinds of
  291  insurance to be so placed. An insurer that meets this
  292  requirement is subject to ss. 624.404, 624.407, 624.4073,
  293  624.408, 624.4085, 624.40851, 624.4095, and 624.424 and chapter
  294  625.
  295         2. Currently an authorized insurer in the state or country
  296  of its domicile as to the kind or kinds of insurance proposed to
  297  be so placed and must have been such an insurer for not less
  298  than the 3 years next preceding or must be the wholly owned
  299  subsidiary of such authorized insurer or must be the wholly
  300  owned subsidiary of an already eligible surplus lines insurer as
  301  to the kind or kinds of insurance proposed for a period of not
  302  less than the 3 years next preceding. However, the office may
  303  waive the 3-year requirement if the insurer provides a product
  304  or service not readily available to the consumers of this state
  305  or has operated successfully for a period of at least 1 year
  306  next preceding and has capital and surplus of not less than $25
  307  million.
  308         Section 9. Section 626.931, Florida Statutes, is amended to
  309  read:
  310         626.931 Agent affidavit and Insurer reporting
  311  requirements.—
  312         (1) Each surplus lines agent that has transacted business
  313  during a calendar quarter shall on or before the 45th day
  314  following the calendar quarter file with the Florida Surplus
  315  Lines Service Office an affidavit, on forms as prescribed and
  316  furnished by the Florida Surplus Lines Service Office, stating
  317  that all surplus lines insurance transacted by him or her during
  318  such calendar quarter has been submitted to the Florida Surplus
  319  Lines Service Office as required.
  320         (2) The affidavit of the surplus lines agent shall include
  321  efforts made to place coverages with authorized insurers and the
  322  results thereof.
  323         (3) Each foreign insurer accepting premiums shall, on or
  324  before the end of the month following each calendar quarter,
  325  file with the Florida Surplus Lines Service Office a verified
  326  report of all surplus lines insurance transacted by such insurer
  327  for insurance risks located in this state during such calendar
  328  quarter.
  329         (2)(4) Each alien insurer accepting premiums shall, on or
  330  before June 30 of each year, file with the Florida Surplus Lines
  331  Service Office a verified report of all surplus lines insurance
  332  transacted by such insurer for insurance risks located in this
  333  state during the preceding calendar year.
  334         (3)(5) The department may waive the filing requirements
  335  described in subsections (1) (3) and (2) (4).
  336         (4)(6) Each insurer’s report and supporting information
  337  shall be in a computer-readable format as determined by the
  338  Florida Surplus Lines Service Office or shall be submitted on
  339  forms prescribed by the Florida Surplus Lines Service Office and
  340  shall show for each applicable agent:
  341         (a) A listing of all policies, certificates, cover notes,
  342  or other forms of confirmation of insurance coverage or any
  343  substitutions thereof or endorsements thereto and the
  344  identifying number; and
  345         (b) Any additional information required by the department
  346  or Florida Surplus Lines Service Office.
  347         Section 10. Paragraph (a) of subsection (2) of section
  348  626.932, Florida Statutes, is amended to read:
  349         626.932 Surplus lines tax.—
  350         (2)(a) The surplus lines agent shall make payable to the
  351  department the tax related to each calendar quarter’s business
  352  as reported to the Florida Surplus Lines Service Office, and
  353  remit the tax to the Florida Surplus Lines Service Office at the
  354  same time as the fee payment required provided for the filing of
  355  the quarterly affidavit, under s. 626.9325 s. 626.931. The
  356  Florida Surplus Lines Service Office shall forward to the
  357  department the taxes and any interest collected pursuant to
  358  paragraph (b), within 10 days of receipt.
  359         Section 11. Paragraph (d) of subsection (1) of section
  360  626.935, Florida Statutes, is amended to read:
  361         626.935 Suspension, revocation, or refusal of surplus lines
  362  agent’s license.—
  363         (1) The department shall deny an application for, suspend,
  364  revoke, or refuse to renew the appointment of a surplus lines
  365  agent and all other licenses and appointments held by the
  366  licensee under this code, on any of the following grounds:
  367         (d) Failure to make and file his or her affidavit or
  368  reports when due as required by s. 626.931.
  369         Section 12. Paragraphs (a) and (j) of subsection (2) of
  370  section 627.062, Florida Statutes, are amended to read:
  371         627.062 Rate standards.—
  372         (2) As to all such classes of insurance:
  373         (a) Insurers or rating organizations shall establish and
  374  use rates, rating schedules, or rating manuals that allow the
  375  insurer a reasonable rate of return on the classes of insurance
  376  written in this state. A copy of rates, rating schedules, rating
  377  manuals, premium credits or discount schedules, and surcharge
  378  schedules, and changes thereto, must be filed with the office
  379  under one of the following procedures:
  380         1. If the filing is made at least 90 days before the
  381  proposed effective date and is not implemented during the
  382  office’s review of the filing and any proceeding and judicial
  383  review, such filing is considered a “file and use” filing. In
  384  such case, the office shall finalize its review by issuance of a
  385  notice of intent to approve or a notice of intent to disapprove
  386  within 90 days after receipt of the filing. If the 90-day period
  387  ends on a weekend or a holiday under s. 110.117(1)(a)-(i), it
  388  must be extended until the conclusion of the next business day.
  389  The notice of intent to approve and the notice of intent to
  390  disapprove constitute agency action for purposes of the
  391  Administrative Procedure Act. Requests for supporting
  392  information, requests for mathematical or mechanical
  393  corrections, or notification to the insurer by the office of its
  394  preliminary findings does not toll the 90-day period during any
  395  such proceedings and subsequent judicial review. The rate shall
  396  be deemed approved if the office does not issue a notice of
  397  intent to approve or a notice of intent to disapprove within 90
  398  days after receipt of the filing.
  399         2. If the filing is not made in accordance with
  400  subparagraph 1., such filing must be made as soon as
  401  practicable, but within 30 days after the effective date, and is
  402  considered a “use and file” filing. An insurer making a “use and
  403  file” filing is potentially subject to an order by the office to
  404  return to policyholders those portions of rates found to be
  405  excessive, as provided in paragraph (h).
  406         3. For all property insurance filings made or submitted
  407  after January 25, 2007, but before May 1, 2012, an insurer
  408  seeking a rate that is greater than the rate most recently
  409  approved by the office shall make a “file and use” filing. For
  410  purposes of this subparagraph, motor vehicle collision and
  411  comprehensive coverages are not considered property coverages.
  412         (j) With respect to residential property insurance rate
  413  filings:,
  414         1. The rate filing must account for mitigation measures
  415  undertaken by policyholders to reduce hurricane losses.
  416         2.The office may not disapprove a rate for homeowners
  417  insurance solely because the rate filing uses a modeling
  418  indication that is the weighted or straight average of two or
  419  more models currently found to be accurate or reliable pursuant
  420  to s. 627.0628.
  421  
  422  The provisions of this subsection do not apply to workers’
  423  compensation, employer’s liability insurance, and motor vehicle
  424  insurance.
  425         Section 13. Paragraph (b) of subsection (2) of section
  426  627.0629, Florida Statutes, is amended to read:
  427         627.0629 Residential property insurance; rate filings.—
  428         (2)
  429         (b) A rate filing for residential property insurance made
  430  more than 150 days after approval by the office of a building
  431  code rating factor plan submitted by a statewide rating
  432  organization may shall include positive and negative rate
  433  factors that reflect the manner in which building code
  434  enforcement in a particular jurisdiction addresses risk of wind
  435  damage. The rate filing shall include variations from standard
  436  rate factors on an individual basis based on inspection of a
  437  particular structure by a licensed home inspector. If an
  438  inspection is requested by the insured, the insurer may require
  439  the insured to pay the reasonable cost of the inspection. This
  440  paragraph applies to structures constructed or renovated after
  441  the implementation of this paragraph.
  442         Section 14. Paragraph (a) of subsection (1) of section
  443  627.0651, Florida Statutes, is amended to read:
  444         627.0651 Making and use of rates for motor vehicle
  445  insurance.—
  446         (1) Insurers shall establish and use rates, rating
  447  schedules, or rating manuals to allow the insurer a reasonable
  448  rate of return on motor vehicle insurance written in this state.
  449  A copy of rates, rating schedules, and rating manuals, and
  450  changes therein, shall be filed with the office under one of the
  451  following procedures:
  452         (a) If the filing is made at least 60 days before the
  453  proposed effective date and the filing is not implemented during
  454  the office’s review of the filing and any proceeding and
  455  judicial review, such filing shall be considered a “file and
  456  use” filing. In such case, the office shall initiate proceedings
  457  to disapprove the rate and so notify the insurer or shall
  458  finalize its review within 60 days after receipt of the filing.
  459  If the 60-day period ends on a weekend or a holiday under s.
  460  110.117(1)(a)-(i), it must be extended until the conclusion of
  461  the next business day. Notification to the insurer by the office
  462  of its preliminary findings shall toll the 60-day period during
  463  any such proceedings and subsequent judicial review. The rate
  464  shall be deemed approved if the office does not issue notice to
  465  the insurer of its preliminary findings within 60 days after the
  466  filing.
  467         Section 15. Subsection (2) of section 627.410, Florida
  468  Statutes, is amended to read:
  469         627.410 Filing, approval of forms.—
  470         (2) Every such filing must be made at least 30 days in
  471  advance of any such use or delivery. At the expiration of the 30
  472  days, the form filed will be deemed approved unless prior
  473  thereto it has been affirmatively approved or disapproved by
  474  order of the office. The approval of such form by the office
  475  constitutes a waiver of any unexpired portion of such waiting
  476  period. The office may extend the period within which it may
  477  affirmatively approve or disapprove such form by up to 15 days
  478  by giving notice of such extension before expiration of the
  479  initial 30-day period. If the initial 30-day period or the 15
  480  day extension period ends on a weekend or a holiday under s.
  481  110.117(1)(a)-(i), the review period must be extended until the
  482  conclusion of the next business day. At the expiration of such
  483  extended period, and in the absence of prior affirmative
  484  approval or disapproval, such form shall be deemed approved.
  485         Section 16. Paragraph (f) is added to subsection (5) of
  486  section 627.7011, Florida Statutes, to read:
  487         627.7011 Homeowners’ policies; offer of replacement cost
  488  coverage and law and ordinance coverage.—
  489         (5) This section does not:
  490         (f) Prohibit an insurer from offering a policy or
  491  endorsement providing that a loss to a roof older than 10 years
  492  which is caused by a covered peril other than a hurricane will
  493  be adjusted on the basis of actual cash value.
  494         Section 17. Section 627.70132, Florida Statutes, is amended
  495  to read:
  496         627.70132 Notice of property insurance windstorm or
  497  hurricane claim.—A claim, supplemental claim, or reopened claim
  498  under an insurance policy that provides property insurance, as
  499  defined in s. 624.604, for loss or damage caused by the peril of
  500  windstorm or hurricane is barred unless notice of the claim,
  501  supplemental claim, or reopened claim is was given to the
  502  insurer in accordance with the terms of the policy within 3
  503  years after the date of loss hurricane first made landfall or
  504  the windstorm caused the covered damage. This section does not
  505  apply to sinkhole loss claims, which are subject to the time
  506  limitation under s. 627.706(5). For purposes of this section,
  507  the term “supplemental claim” or “reopened claim” means any
  508  additional claim for recovery from the insurer for losses from
  509  the same hurricane or windstorm which the insurer has previously
  510  adjusted pursuant to the initial claim. This section does not
  511  affect any applicable limitation on civil actions provided in s.
  512  95.11 for claims, supplemental claims, or reopened claims timely
  513  filed under this section.
  514         Section 18. Section 627.70152, Florida Statutes, is created
  515  to read:
  516         627.70152 Suits arising under a property insurance policy.—
  517         (1)As a condition precedent to filing suit under a
  518  property insurance policy, the named insured must provide the
  519  insurer with a written notice of intent to initiate litigation
  520  before filing suit under the policy. Concurrent with the notice
  521  and as a precondition to filing suit, the named insured must
  522  provide a detailed written invoice or estimate of services,
  523  including itemized information on equipment, materials, and
  524  supplies; the number of labor hours; and, in the case of work
  525  performed, proof that the work has been performed in accordance
  526  with accepted industry standards. The notice must be served at
  527  least 10 business days before filing suit by certified mail,
  528  return receipt requested, to the name and address designated by
  529  the insurer in the policy forms or by electronic delivery to an
  530  e-mail address designated by the insurer in the policy forms,
  531  but may not be served before the insurer has made a
  532  determination of coverage under s. 627.70131. The notice must
  533  specify the damages in dispute and the amount claimed. An
  534  insurer must acknowledge receipt of the notice in writing within
  535  10 business days after receiving the notice.
  536         (2)In any suit arising under a property insurance policy,
  537  the named insured has the burden to demonstrate that the insurer
  538  is not prejudiced by the failure of the named insured, or a
  539  public adjuster or attorney representing the named insured, to
  540  cooperate with the insurer in the claim investigation,
  541  including, but not limited to, failing to allow the insurer to
  542  inspect the property.
  543         (3)A named insured filing suit under a property insurance
  544  policy must sign any complaint seeking relief under such policy.
  545         Section 19. Subsection (2) of section 627.714, Florida
  546  Statutes, is amended to read:
  547         627.714 Residential condominium unit owner coverage; loss
  548  assessment coverage required.—
  549         (2) The maximum amount of any unit owner’s loss assessment
  550  coverage that can be assessed for any loss shall be an amount
  551  equal to that unit owner’s loss assessment coverage limit in
  552  effect 1 day before the date of the occurrence that gave rise to
  553  the loss. Such coverage is applicable to any loss assessment
  554  regardless of the date of the assessment by the association. Any
  555  changes to the limits of a unit owner’s coverage for loss
  556  assessments made on or after the day before the date of the
  557  occurrence are not applicable to such loss.
  558         Section 20. Notwithstanding the expiration of subsection
  559  (4) of section 627.715, Florida Statutes, which occurred on July
  560  1, 2019, that subsection is revived, reenacted, and amended to
  561  read:
  562         627.715 Flood insurance.—An authorized insurer may issue an
  563  insurance policy, contract, or endorsement providing personal
  564  lines residential coverage for the peril of flood or excess
  565  coverage for the peril of flood on any structure or the contents
  566  of personal property contained therein, subject to this section.
  567  This section does not apply to commercial lines residential or
  568  commercial lines nonresidential coverage for the peril of flood.
  569  An insurer may issue flood insurance policies, contracts,
  570  endorsements, or excess coverage on a standard, preferred,
  571  customized, flexible, or supplemental basis.
  572         (4) A surplus lines agent may export a contract or
  573  endorsement providing flood coverage to an eligible surplus
  574  lines insurer without making a diligent effort to seek such
  575  coverage from three or more authorized insurers under s.
  576  626.916(1)(a). This subsection expires July 1, 2025 2019, or on
  577  the date on which the Commissioner of Insurance Regulation
  578  determines in writing that there is an adequate admitted market
  579  to provide coverage for the peril of flood consistent with this
  580  section, whichever date occurs first. If there are fewer than
  581  three admitted insurers on the date this subsection expires, the
  582  number of declinations necessary to meet the diligent-effort
  583  requirement shall be no fewer than the number of authorized
  584  insurers providing flood coverage.
  585         Section 21. Paragraph (a) of subsection (9) of section
  586  627.7152, Florida Statutes, is amended to read:
  587         627.7152 Assignment agreements.—
  588         (9)(a) An assignee must provide the named insured, insurer,
  589  and the assignor, if not the named insured, with a written
  590  notice of intent to initiate litigation before filing suit under
  591  the policy. Such notice must be served by certified mail, return
  592  receipt requested, to the name and address designated by the
  593  insurer in the policy forms or by electronic delivery at the e
  594  mail address designated by the insurer in the policy forms at
  595  least 10 business days before filing suit, but may not be served
  596  before the insurer has made a determination of coverage under s.
  597  627.70131. The notice must specify the damages in dispute, the
  598  amount claimed, and a presuit settlement demand. Concurrent with
  599  the notice, and as a precondition to filing suit, the assignee
  600  must provide the named insured, insurer, and the assignor, if
  601  not the named insured, a detailed written invoice or estimate of
  602  services, including itemized information on equipment,
  603  materials, and supplies; the number of labor hours; and, in the
  604  case of work performed, proof that the work has been performed
  605  in accordance with accepted industry standards.
  606         Section 22. Subsection (4) of section 627.7295, Florida
  607  Statutes, is amended to read:
  608         627.7295 Motor vehicle insurance contracts.—
  609         (4) The insurer may cancel the policy in accordance with
  610  this code except that, notwithstanding s. 627.728, an insurer
  611  may not cancel a new policy or binder during the first 30 60
  612  days immediately following the effective date of the policy or
  613  binder for nonpayment of premium unless the reason for the
  614  cancellation is the issuance of a check for the premium that is
  615  dishonored for any reason or any other type of premium payment
  616  that was subsequently determined to be rejected or invalid.
  617         Section 23. Paragraph (a) of subsection (1) of section
  618  629.401, Florida Statutes, is amended to read:
  619         629.401 Insurance exchange.—
  620         (1) There may be created one or more insurance exchanges,
  621  with one or more offices each, subject to such rules as are
  622  adopted by the commission. For the purposes of this section, the
  623  term “exchange” applies to any such insurance exchange proposed
  624  or created under this section. The purposes of the exchange are:
  625         (a) To provide a facility for the underwriting of:
  626         1. Reinsurance of all kinds of insurance.
  627         2. Direct insurance of all kinds on risks located entirely
  628  outside the United States.
  629         3. Surplus lines insurance for risks located in this state
  630  eligible for export under s. 626.916 or s. 626.917 and placed
  631  through a licensed Florida surplus lines agent subject to
  632  compliance with the provisions of ss. 626.921, 626.922, 626.923,
  633  626.924, 626.929, 626.9295, and 626.930, and 626.931. With
  634  respect to compliance with s. 626.924, the required legend may
  635  refer to any coverage provided for by a security fund
  636  established under paragraph (3)(d).
  637         4. Surplus lines insurance in any other state subject to
  638  the applicable surplus lines laws of such other state for risks
  639  located entirely outside of this state.
  640         Section 24. Section 634.171, Florida Statutes, is amended
  641  to read:
  642         634.171 Salesperson to be licensed and appointed;
  643  exceptions.—Salespersons for motor vehicle service agreement
  644  companies and insurers shall be licensed, appointed, renewed,
  645  continued, reinstated, or terminated as prescribed in chapter
  646  626 for insurance representatives in general. However, they
  647  shall be exempt from all other provisions of chapter 626
  648  including fingerprinting, photo identification, education, and
  649  examination provisions. License, appointment, and other fees
  650  shall be those prescribed in s. 624.501. A licensed and
  651  appointed salesperson shall be directly responsible and
  652  accountable for all acts of her or his employees and other
  653  representatives. Each service agreement company or insurer
  654  shall, on forms prescribed by the department, within 30 days
  655  after termination of the appointment, notify the department of
  656  such termination. No employee or salesperson of a motor vehicle
  657  service agreement company or insurer may directly or indirectly
  658  solicit or negotiate insurance contracts, or hold herself or
  659  himself out in any manner to be an insurance agent, unless so
  660  qualified, licensed, and appointed therefor under the Florida
  661  Insurance Code. A licensed personal lines or general lines agent
  662  may solicit, negotiate, advertise, or sell motor vehicle service
  663  agreements and is not required to be licensed under this
  664  section. A motor vehicle service agreement company is not
  665  required to be licensed as a salesperson to solicit, sell,
  666  issue, or otherwise transact the motor vehicle service
  667  agreements issued by the motor vehicle service agreement
  668  company.
  669         Section 25. Section 634.317, Florida Statutes, is amended
  670  to read:
  671         634.317 License and appointment required; exception.—No
  672  person may solicit, negotiate, or effectuate home warranty
  673  contracts for remuneration in this state unless such person is
  674  licensed and appointed as a sales representative. A licensed and
  675  appointed sales representative shall be directly responsible and
  676  accountable for all acts of the licensee’s employees. A licensed
  677  personal lines or general lines agent may solicit, negotiate,
  678  advertise, or sell home warranty contracts and is not required
  679  to be licensed under this section.
  680         Section 26. Section 634.419, Florida Statutes, is amended
  681  to read:
  682         634.419 License and appointment required; exception.—No
  683  person or entity shall solicit, negotiate, advertise, or
  684  effectuate service warranty contracts in this state unless such
  685  person or entity is licensed and appointed as a sales
  686  representative. Sales representatives shall be responsible for
  687  the actions of persons under their supervision. However, a
  688  service warranty association licensed as such under this part
  689  shall not be required to be licensed and appointed as a sales
  690  representative to solicit, negotiate, advertise, or effectuate
  691  its products. A licensed personal lines or general lines agent
  692  may solicit, negotiate, advertise, or sell service warranty
  693  contracts and is not required to be licensed under this section.
  694         Section 27. Except as otherwise expressly provided in this
  695  act and except for this section, which shall take effect upon
  696  this act becoming a law, this act shall take effect July 1,
  697  2020.

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