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
HB 815 2021
1 A bill to be entitled
2 An act relating to insurance; amending s. 215.555,
3 F.S.; redefining the term "covered policy" under the
4 Florida Hurricane Catastrophe Fund in relation to
5 certain collateral protection insurance policies;
6 amending s. 624.423, F.S.; specifying when service of
7 process is valid and binding upon insurers; amending
8 s. 626.856, F.S.; revising the definition of the term
9 "company employee adjuster"; amending s. 626.9202,
10 F.S.; revising the definition of the term "loss run
11 statement"; specifying the entities that must receive
12 requests for loss run statements; specifying that
13 insurers must provide loss run statements under
14 certain circumstances; revising the required claims
15 history in loss run statements; providing
16 applicability; limiting loss run statement requests
17 with respect to group health insurance policies to
18 group policyholders; amending s. 627.062, F.S.;
19 authorizing a rate filing for homeowners' insurance to
20 use a specified modeling indication; amending s.
21 627.0629, F.S.; authorizing, rather than requiring,
22 rate filings for certain residential property
23 insurance to include certain rate factors; authorizing
24 insurers to file certain insurance rating plans based
25 on certain windstorm mitigation construction
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26 standards; authorizing insurers to require
27 policyholders to provide evidence of compliance with
28 mitigation standards under certain conditions;
29 amending s. 627.072, F.S.; providing a ratemaking
30 factor for workers' compensation and employer's
31 liability insurance; amending s. 627.351, F.S.;
32 revising conditions for determining the ineligibility
33 of condominiums for wind-only coverage; amending s.
34 627.444, F.S.; revising the definition of the term
35 "loss run statement"; specifying the entities that
36 must receive requests for loss run statements;
37 specifying that insurers must provide loss run
38 statements under certain circumstances; revising the
39 required claims history in loss run statements;
40 providing applicability; limiting loss run statement
41 requests with respect to group health insurance
42 policies to group policyholders; repealing s.
43 627.6647, F.S., relating to the release of information
44 required for bid to group health insurance
45 policyholders; amending s. 627.7011, F.S.; revising
46 conditions for inclusion of costs for law and
47 ordinance coverage in loss adjustments under certain
48 homeowners' policies; revising the timeframes of
49 repairs of dwellings and replacement of personal
50 property for which the insurer must pay when property
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51 is insured on the basis of replacement costs; amending
52 s. 627.715, F.S.; providing an exemption from a
53 diligent effort requirement for agents exporting
54 contracts or endorsements providing flood coverage;
55 amending s. 627.7152, F.S.; revising the definition of
56 the term "assignment agreement"; specifying the
57 addresses to which a notice of intent must be served;
58 amending ss. 634.171, 634.317, and 634.419, F.S.;
59 authorizing licensed personal lines or general lines
60 agents to solicit, negotiate, advertise, or sell motor
61 vehicle service agreements, home warranty contracts,
62 and service warranties, respectively, without a sales
63 representative license; reenacting s. 627.7153(1) and
64 (2)(d), F.S., relating to policies restricting
65 assignment of post-loss benefits under a property
66 insurance policy, to incorporate the amendment made by
67 the act to s. 627.7152, F.S., in references thereto;
68 providing effective dates.
69
70 Be It Enacted by the Legislature of the State of Florida:
71
72 Section 1. Effective June 1, 2021, paragraph (c) of
73 subsection (2) of section 215.555, Florida Statutes, is amended
74 to read:
75 215.555 Florida Hurricane Catastrophe Fund.—
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76 (2) DEFINITIONS.—As used in this section:
77 (c) "Covered policy" means any insurance policy covering
78 residential property in this state, including, but not limited
79 to, any homeowner, mobile home owner, farm owner, condominium
80 association, condominium unit owner, tenant, or apartment
81 building policy, or any other policy covering a residential
82 structure or its contents issued by any authorized insurer,
83 including a commercial self-insurance fund holding a certificate
84 of authority issued by the Office of Insurance Regulation under
85 s. 624.462, the Citizens Property Insurance Corporation, and any
86 joint underwriting association or similar entity created under
87 law. The term "covered policy" includes any collateral
88 protection insurance policy covering personal residences which
89 protects both the borrower's and the lender's financial
90 interests, in an amount at least equal to the coverage amount
91 for the dwelling in place under the lapsed homeowner's policy,
92 the coverage amount that the homeowner has been notified of, or
93 the coverage amount the homeowner requests from the collateral
94 protection insurer, if such collateral protection insurance
95 policy can be accurately reported as required in subsection (5).
96 Additionally, covered policies include policies covering the
97 peril of wind removed from the Florida Residential Property and
98 Casualty Joint Underwriting Association or from the Citizens
99 Property Insurance Corporation, created under s. 627.351(6), or
100 from the Florida Windstorm Underwriting Association, created
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101 under s. 627.351(2), by an authorized insurer under the terms
102 and conditions of an executed assumption agreement between the
103 authorized insurer and such association or Citizens Property
104 Insurance Corporation. Each assumption agreement between the
105 association and such authorized insurer or Citizens Property
106 Insurance Corporation must be approved by the Office of
107 Insurance Regulation before the effective date of the
108 assumption, and the Office of Insurance Regulation must provide
109 written notification to the board within 15 working days after
110 such approval. "Covered policy" does not include any policy that
111 excludes wind coverage or hurricane coverage or any reinsurance
112 agreement and does not include any policy otherwise meeting this
113 definition which is issued by a surplus lines insurer or a
114 reinsurer. All commercial residential excess policies and all
115 deductible buy-back policies that, based on sound actuarial
116 principles, require individual ratemaking shall be excluded by
117 rule if the actuarial soundness of the fund is not jeopardized.
118 For this purpose, the term "excess policy" means a policy that
119 provides insurance protection for large commercial property
120 risks and that provides a layer of coverage above a primary
121 layer insured by another insurer.
122 Section 2. Effective upon this act becoming a law,
123 subsection (3) of section 624.423, Florida Statutes, is amended
124 to read:
125 624.423 Serving process.—
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126 (3) Service of process is valid and binding upon the
127 insurer on the date process served upon the Chief Financial
128 Officer is delivered to the insurer and sent or the insurer has
129 been notified such information has been made available on a
130 secured network in accordance with this section and s.
131 624.307(9) shall for all purposes constitute valid and binding
132 service thereof upon the insurer.
133 Section 3. Section 626.856, Florida Statutes, is amended
134 to read:
135 626.856 "Company employee adjuster" defined.—A "company
136 employee adjuster" means a person licensed as an all-lines
137 adjuster who is appointed and employed on an insurer's staff of
138 adjusters, by an affiliate, or by a wholly owned subsidiary of
139 the insurer, and who undertakes on behalf of such insurer or
140 other insurers under common control or ownership to ascertain
141 and determine the amount of any claim, loss, or damage payable
142 under a contract of insurance, or undertakes to effect
143 settlement of such claim, loss, or damage.
144 Section 4. Effective upon this act becoming a law,
145 subsections (1), (2), and (4) of section 626.9202, Florida
146 Statutes, are amended, and subsections (7) and (8) are added to
147 that section, to read:
148 626.9202 Loss run statements for all lines of insurance.—
149 (1) As used in this section, the term:
150 (a) "Loss run statement" means a report that contains the
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151 policy number, the period of coverage, the number of claims, the
152 paid losses on each claim all claims, and the date of each loss.
153 The term does not include supporting claim file documentation,
154 including, but not limited to, copies of claim files,
155 investigation reports, evaluation statements, insureds'
156 statements, and documents protected by a common law or statutory
157 privilege. As applied to group health insurance, the term means
158 a report that also contains premiums paid, number of insureds on
159 a monthly basis, and dependent status.
160 (b) "Provide" means to electronically send a document or
161 to allow access through an electronic portal to view or generate
162 a document.
163 (2) Notwithstanding any other law, an insurer shall
164 provide to an insured within 15 calendar days after an
165 individual or entity designated by the insurer receives receipt
166 of the insured's written request, either:
167 (a) A loss run statement; or
168 (b) For personal lines of insurance, information on how to
169 obtain a loss run statement at no charge through a consumer
170 reporting agency. However, this section does not prohibit an
171 insured from requesting a loss run statement after receiving
172 information from a consumer reporting agency, in which case the
173 insurer must then provide such loss run statement within 15
174 calendar days after the individual or entity designated by the
175 insurer receives the insured's subsequent written request.
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176 (4) A loss run statement provided pursuant to this section
177 must contain a claims history with the insurer for the preceding
178 3 5 years or, if the claims history is less than 3 5 years, a
179 complete claims history with the insurer.
180 (7) This section does not apply to a life insurer as
181 defined in s. 624.602.
182 (8) For group health insurance, only the group
183 policyholder may request and be provided a loss run statement
184 pursuant to this section.
185 Section 5. Paragraph (j) of subsection (2) of section
186 627.062, Florida Statutes, is amended to read:
187 627.062 Rate standards.—
188 (2) As to all such classes of insurance:
189 (j) With respect to residential property insurance rate
190 filings, the rate filing:
191 1. Must account for mitigation measures undertaken by
192 policyholders to reduce hurricane losses.
193 2. May use a modeling indication that is the weighted or
194 straight average of two or more models found by the commission
195 to be accurate or reliable pursuant to s. 627.0628.
196
197 The provisions of this subsection do not apply to workers'
198 compensation, employer's liability insurance, and motor vehicle
199 insurance.
200 Section 6. Paragraph (b) of subsection (2) of section
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201 627.0629, Florida Statutes, is amended, and subsection (9) is
202 added to that section, to read:
203 627.0629 Residential property insurance; rate filings.—
204 (2)
205 (b) A rate filing for residential property insurance made
206 more than 150 days after approval by the office of a building
207 code rating factor plan submitted by a statewide rating
208 organization may shall include positive and negative rate
209 factors that reflect the manner in which building code
210 enforcement in a particular jurisdiction addresses risk of wind
211 damage. The rate filing must shall include variations from
212 standard rate factors on an individual basis based on inspection
213 of a particular structure by a licensed home inspector. If an
214 inspection is requested by the insured, the insurer may require
215 the