Bill Text: FL S1760 | 2020 | Regular Session | Introduced
Bill Title: Property Insurance
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2020-03-14 - Died in Banking and Insurance [S1760 Detail]
Download: Florida-2020-S1760-Introduced.html
Florida Senate - 2020 SB 1760 By Senator Gainer 2-00901C-20 20201760__ 1 A bill to be entitled 2 An act relating to property insurance; amending s. 3 626.913, F.S.; providing construction of the Surplus 4 Lines Law relating to certain dispute resolution 5 proceedings; creating s. 626.9285, F.S.; prohibiting 6 surplus lines agents from delivering or issuing for 7 delivery property insurance contracts containing 8 specified provisions; amending s. 627.70131, F.S.; 9 revising the definition of the term “insurer” to 10 include eligible surplus lines insurers and certain 11 insurers providing commercial property insurance; 12 revising the basis for private causes of action; 13 revising the definition of the term “claim” to include 14 any claims under a commercial property insurance 15 policy; revising applicability; amending s. 627.702, 16 F.S.; defining the terms “insurer” and “total loss”; 17 requiring property insurers’ liability to include 18 certain coverages; providing circumstances under which 19 such coverages are payable; creating s. 627.7035, 20 F.S.; defining the term “insurer”; providing 21 requirements for proceeding venues and jurisdiction of 22 courts for specified property insurance policies and 23 contracts; prohibiting such insurance policies and 24 contracts from containing specified conditions, 25 stipulations, and agreements; providing construction; 26 providing applicability; providing an effective date. 27 28 Be It Enacted by the Legislature of the State of Florida: 29 30 Section 1. Subsection (5) is added to section 626.913, 31 Florida Statutes, to read: 32 626.913 Surplus Lines Law; short title; purposes.— 33 (5) The Surplus Lines Law does not authorize litigation, 34 arbitration, or mediation or any other dispute resolution 35 proceeding for a residential or commercial property insurance 36 claim involving real property located in this state to be 37 conducted outside this state or to apply the laws of another 38 state. 39 Section 2. Section 626.9285, Florida Statutes, is created 40 to read: 41 626.9285 Contracts with alternative dispute resolutions or 42 application of laws of another state prohibited.— 43 (1) A surplus lines agent may not deliver or issue for 44 delivery in this state any property insurance contract 45 containing a provision on an arbitration, mediation, or other 46 alternative dispute resolution that occurs outside this state or 47 a provision that applies the laws of another state. 48 (2) This section applies to property insurance contracts 49 issued or renewed on or after January 1, 2021, and does not 50 apply to any claim existing or any action, dispute resolution 51 proceeding, judicial proceeding, or administrative proceeding 52 pending as of July 1, 2020. 53 Section 3. Section 627.70131, Florida Statutes, is amended 54 to read: 55 627.70131 Insurer’s duty to acknowledge communications 56 regarding claims; investigation.— 57 (1)(4)As used inFor purposes ofthis section, the term 58 “insurer” means an insurer authorized to transact insurance in 59 this state or an eligible surplus lines insurer, as defined in 60 s. 626.914, that providesanyresidential or commercial property 61 insurance in this stateinsurer. 62 (2)(a)(1)(a)Upon an insurer’s receiving a communication 63 with respect to a claim, the insurer shall, within 14 calendar 64 days, review and acknowledge receipt of such communication 65 unless payment is made within that period of time or unless the 66 failure to acknowledge is caused by factors beyond the control 67 of the insurer which reasonably prevent such acknowledgment. If 68 the acknowledgment is not in writing, a notification indicating 69 acknowledgment shall be made in the insurer’s claim file and 70 dated. A communication made to or by an agent of an insurer with 71 respect to a claim shall constitute communication to or by the 72 insurer. 73 (b) As used in this subsection, the term “agent” means any 74 person to whom an insurer has granted authority or 75 responsibility to receive or make such communications with 76 respect to claims on behalf of the insurer. 77 (c) This subsection doesshallnot apply to claimants 78 represented by counsel beyond those communications necessary to 79 provide forms and instructions. 80 (3)(2)Such acknowledgment shall be responsive to the 81 communication. If the communication constitutes a notification 82 of a claim, unless the acknowledgment reasonably advises the 83 claimant that the claim appears not to be covered by the 84 insurer, the acknowledgment shall provide necessary claim forms, 85 and instructions, including an appropriate telephone number. 86 (4)(3)Unless otherwise provided by the policy of insurance 87 or by law, within 10 working days after an insurer receives 88 proof of loss statements, the insurer shall begin such 89 investigation as is reasonably necessary unless the failure to 90 begin such investigation is caused by factors beyond the control 91 of the insurer which reasonably prevent the commencement of such 92 investigation. 93 (5)(a) Within 90 days after an insurer receives notice of 94 an initial, reopened, or supplemental property insurance claim 95 from a policyholder, the insurer shall pay or deny such claim or 96 a portion of the claim unless the failure to pay is caused by 97 factors beyond the control of the insurer which reasonably 98 prevent such payment. Any payment of an initial or supplemental 99 claim or portion of such claim made 90 days after the insurer 100 receives notice of the claim, or made more than 15 days after 101 there are no longer factors beyond the control of the insurer 102 which reasonably prevented such payment, whichever is later, 103 bears interest at the rate set forth in s. 55.03. Interest 104 begins to accrue from the date the insurer receives notice of 105 the claim. The provisions of this subsection may not be waived, 106 voided, or nullified by the terms of the insurance policy. If 107 there is a right to prejudgment interest, the insured shall 108 select whether to receive prejudgment interest or interest under 109 this subsection. Interest is payable when the claim or portion 110 of the claim is paid. Failure to comply with this subsection 111 constitutes a violation of this code and provides a. However,112failure to comply with this subsection does not form the sole113 basis for a private cause of action. 114 (b)Notwithstanding subsection (4),For purposes of this 115 subsection, the term “claim” means any of the following: 116 1. A claim under an insurance policy providing residential 117 coverage as defined in s. 627.4025(1); 118 2. A claimfor structural or contents coverageunder a 119 commercial property insurance policyif the insured structure is12010,000 square feet or less; or 121 3. A claim for contents coverage under a commercial tenant 122 policy if the insured premises is 10,000 square feet or less. 123 (c) This subsection doesshallnot apply to claims under an 124 insurance policy coveringnonresidential commercial structures125orcontents in more than one state. 126 Section 4. Subsection (1) of section 627.702, Florida 127 Statutes, is amended to read: 128 627.702 Valued policy law.— 129 (1)(a)(c)It is the intent of the Legislature that the 130 amendment to this section shall not be applied retroactively and 131 shall apply only to claims filed after the effective date of 132 such amendment. 133 (b) As used in this section, the term: 134 1. “Insurer” means an insurer authorized to transact 135 insurance in this state or an eligible surplus lines insurer, as 136 defined in s. 626.914. 137 2. “Total loss” means a loss in which the damaged property 138 is damaged to the extent that the applicable ordinances, rules, 139 or laws in effect would prohibit or prevent the repair of the 140 property, or for which the cost and expense to repair the 141 damages would exceed the applicable coverage limit of the 142 property insurance policy. 143 (c)(1)(a)In the event of the total loss of any building, 144 structure, mobile home as defined in s. 320.01(2), or 145 manufactured building as defined in s. 553.36(13), located in 146 this state and insured by any insurer as to a covered peril, in 147 the absence of any change increasing the risk without the 148 insurer’s consent and in the absence of fraudulent or criminal 149 fault on the part of the insured or one acting in her or his 150 behalf, the insurer’s liability under the policy for such total 151 loss, if caused by a covered peril, mustshallbe in the amount 152 of money for which such property was so insured as specified in 153 the policy and for which a premium has been charged and paid. 154 (d) The insurer’s liability under the policy must include 155 liability for ordinance, rule, and law coverage. The obligation 156 to tender ordinance, rule, or law coverage payments shall be 157 triggered by a showing of the ordinance, rule, or law 158 requirements, and expenses for ordinance, rule, or law 159 requirements need not be incurred to be payable under this 160 paragraph. 161 (e)(b)The intent of this subsection is not to deprive an 162 insurer of any proper defense under the policy, to create new or 163 additional coverage under the policy, or to require an insurer 164 to pay for a loss caused by a peril other than the covered 165 peril. In furtherance of such legislative intent, when a loss 166 was caused in part by a covered peril and in part by a 167 noncovered peril, paragraph (c)(a)does not apply. In such 168 circumstances, the insurer’s liability under this section shall 169 be limited to the amount of the loss caused by the covered 170 peril. However, if the covered perils alone would have caused 171 the total loss, paragraph (c) applies(a) shall apply. The 172 insurer is never liable for more than the amount necessary to 173 repair, rebuild, or replace the structure following the total 174 loss, after considering all other benefits actually paid for the 175 total loss. 176 Section 5. Section 627.7035, Florida Statutes, is created 177 to read: 178 627.7035 Proceeding venues and jurisdiction of courts for 179 real property coverage.— 180 (1) As used in this section, the term “insurer” means an 181 insurer authorized to transact insurance in this state or an 182 eligible surplus lines insurer, as defined in s. 626.914. 183 (2) Any litigation, arbitration, or mediation or any other 184 dispute resolution proceeding involving a residential or 185 commercial property insurance policy or contract issued by, or a 186 claim against, an insurer covering real property in this state 187 must be conducted in this state and governed by the laws of this 188 state. 189 (3) A residential or commercial property insurance policy 190 or contract covering real property that is located in this state 191 may not contain any condition, stipulation, or agreement 192 depriving the courts of this state of the jurisdiction of action 193 against the insurer. 194 (4) Any provision of a residential or commercial property 195 insurance policy or contract, including a policy or contract 196 authorized under the Surplus Lines Law, ss. 626.913-626.937, 197 that violates any provision of this section is void. However, 198 such voiding does not affect the validity of other provisions of 199 the policy or contract. 200 (5) This section applies: 201 (a) Only to residential or commercial property insurance 202 policies or contracts covering real property located in this 203 state. 204 (b) To residential or commercial property insurance 205 policies and contracts issued or renewed on or after January 1, 206 2021, and does not apply to any claim existing or any action, 207 dispute resolution proceeding, judicial proceeding, or 208 administrative proceeding pending as of July 1, 2020. 209 Section 6. The amendments to ss. 626.913, 627.70131, and 210 627.702, Florida Statutes, made by this act apply to property 211 insurance policies or contracts issued or renewed on or after 212 January 1, 2021, and do not apply to any claim existing or any 213 action, dispute resolution proceeding, judicial proceeding, or 214 administrative proceeding pending as of July 1, 2020. 215 Section 7. This act shall take effect July 1, 2020.