This bill amends several sections of the Florida Statutes related to insurance regulation, specifically focusing on residential coverage, policy conditions, claims administration, and insurer obligations. It clarifies the definition of residential coverage to include both personal and commercial lines, and it prohibits insurers from imposing or enforcing unauthorized policy conditions unless they have been approved by the relevant office. Insurers are required to disclose any such conditions to the insured at the time of policy issuance and must allow for cancellation within ten days without cost.

Additionally, the bill revises the conditions under which liability insurers can deny coverage, requiring detailed written notice to the insured regarding any coverage defenses. It also shortens the timeframe for insurers to pay or deny claims from 60 days to 30 days and mandates that insurers provide clear written explanations for their decisions. If an insurer fails to pay the full amount owed on a claim within 90 days, they incur an uncontestable obligation to pay the owed amount along with interest. The Department of Financial Services is authorized to enforce these obligations, and the bill is set to take effect on July 1, 2026.

Statutes affected:
S 1240 Filed: 627.4025, 627.426, 627.70131