Bill Amendment: FL S0076 | 2021 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Insurance
Status: 2021-06-14 - Chapter No. 2021-77, companion bill(s) passed, see CS/CS/SB 1598 (Ch. 2021-104) [S0076 Detail]
Download: Florida-2021-S0076-Senate_Floor_S_Amend_to_H_Amend_334081_240104.html
Bill Title: Insurance
Status: 2021-06-14 - Chapter No. 2021-77, companion bill(s) passed, see CS/CS/SB 1598 (Ch. 2021-104) [S0076 Detail]
Download: Florida-2021-S0076-Senate_Floor_S_Amend_to_H_Amend_334081_240104.html
Florida Senate - 2021 SENATOR AMENDMENT Bill No. CS for CS for CS for SB 76 Ì240104bÎ240104 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Boyd moved the following: 1 Senate Amendment to House Amendment (334081) (with title 2 amendment) 3 4 Delete lines 71 - 1170 5 and insert: 6 Section 2. Subsection (11) of section 624.424, Florida 7 Statutes, is renumbered as subsection (12), and a new subsection 8 (11) and subsection (13) are added to that section, to read: 9 624.424 Annual statement and other information.— 10 (11) Beginning January 1, 2022, each authorized insurer or 11 insurer group issuing personal lines or commercial lines 12 residential property insurance policies in this state shall file 13 with the office on an annual basis in conjunction with the 14 statements required by paragraph (1)(a) a supplemental report on 15 an individual and group basis for closed claims. The report must 16 be on a form prescribed by the commission and must include the 17 following information for each claim closed, excluding liability 18 only claims, within the reporting period in this state: 19 (a) The unique claim identification number. 20 (b) The type of policy. 21 (c) The zip code of the property where the claim occurred. 22 (d) The county where the claim occurred. 23 (e) The date of loss. 24 (f) The peril or type of loss, including information about: 25 1. The types of vendors used for mitigation, repair, or 26 replacement; and 27 2. The names of vendors used, if known. 28 (g) The date the claim was reported to insurer. 29 (h) The initial date the claim was closed, including 30 information about whether the claim was closed with or without 31 payment. 32 (i) The date the claim was most recently reopened, if 33 applicable. 34 (j) The date a supplemental claim was filed, if applicable. 35 (k) The date the claim was most recently closed, if 36 different from the initial date the claim was closed. 37 (l) The name of the public adjuster on the claim, if any. 38 (m) The Florida Bar number and name of the attorney for the 39 claimant, if any. 40 (n) The total indemnity paid by the insurer. 41 (o) The total loss adjustment expenses paid by the insurer. 42 (p) The amount paid for claimant’s attorney fees, if any. 43 (q) The amount paid in costs for claimant’s attorney’s 44 expenses, including, but not limited to, expert witness fees. 45 (r) The contingency risk multiplier, if any, that the 46 claimant’s attorney requested to be applied in calculating the 47 attorney fees awarded to the claimant’s attorney. 48 (s) The contingency risk multiplier, if any, that a court 49 applied in calculating the attorney fees awarded to the 50 claimant’s attorney. 51 (t) Any other information deemed necessary by the 52 commission to provide the office with the ability to track 53 litigation and claims trends occurring in the property market. 54 (13) Each insurer doing business in this state which pays a 55 fee, commission, or other financial consideration or payment to 56 any affiliate directly or indirectly is required upon request to 57 provide to the office any information the office deems 58 necessary. The fee, commission, or other financial consideration 59 or payment to any affiliate must be fair and reasonable. In 60 determining whether the fee, commission, or other financial 61 consideration or payment is fair and reasonable, the office 62 shall consider, among other things, the actual cost of the 63 service being provided. 64 Section 3. Subsection (6) of section 626.7451, Florida 65 Statutes, is amended to read: 66 626.7451 Managing general agents; required contract 67 provisions.—No person acting in the capacity of a managing 68 general agent shall place business with an insurer unless there 69 is in force a written contract between the parties which sets 70 forth the responsibility for a particular function, specifies 71 the division of responsibilities, and contains the following 72 minimum provisions: 73 (6) The contract shall specify appropriate underwriting 74 guidelines, including: 75 (a) The maximum annual premium volume. 76 (b) The basis of the rates to be charged. 77 (c) The types of risks which may be written. 78 (d) Maximum limits of liability. 79 (e) Applicable exclusions. 80 (f) Territorial limitations. 81 (g) Policy cancellation provisions. 82 (h) The maximum policy period. 83 84This subsection shall not apply when the managing general agent85is a controlled or controlling person.86 87 For the purposes of this section and ss. 626.7453 and 626.7454, 88 the term “controlling person” or “controlling” has the meaning 89 set forth in s. 625.012(5)(b)1., and the term “controlled 90 person” or “controlled” has the meaning set forth in s. 91 625.012(5)(b)2. 92 Section 4. Section 626.7452, Florida Statutes, is amended 93 to read: 94 626.7452 Managing general agents; examination authority. 95 The acts of the managing general agent are considered to be the 96 acts of the insurer on whose behalf it is acting. A managing 97 general agent may be examined as if it were the insurerexcept98in the case where the managing general agent solely represents a99single domestic insurer. 100 Section 5. Subsection (15) of section 626.854, Florida 101 Statutes, is amended, and subsection (20) is added to that 102 section, to read: 103 626.854 “Public adjuster” defined; prohibitions.—The 104 legislature finds that it is necessary for the protection of the 105 public to regulate public insurance adjusters and to prevent the 106 unauthorized practice of law. 107 (15) A licensed contractor under part I of chapter 489, or 108 a subcontractor of such licensee, may not advertise, solicit, 109 offer to handle, handle, or perform public adjuster services as 110 provided in subsection (1)adjust a claim on behalf of an111insuredunless licensed and compliant as a public adjuster under 112 this chapter. The prohibition against solicitation does not 113 preclude a contractor from suggesting or otherwise recommending 114 to a consumer that the consumer consider contacting his or her 115 insurer to determine if the proposed repair is covered under the 116 consumer’s insurance policy, except as it relates to 117 solicitation prohibited in s. 489.147. In additionHowever, the 118 contractor may discuss or explain a bid for construction or 119 repair of covered property with the residential property owner 120 who has suffered loss or damage covered by a property insurance 121 policy, or the insurer of such property, if the contractor is 122 doing so for the usual and customary fees applicable to the work 123 to be performed as stated in the contract between the contractor 124 and the insured. 125 (20)(a) Any following act by a public adjuster, a public 126 adjuster apprentice, or a person acting on behalf of a public 127 adjuster or public adjuster apprentice is prohibited and shall 128 result in discipline as applicable under part VI of this 129 chapter: 130 1. Offering to a residential property owner a rebate, gift, 131 gift card, cash, coupon, waiver of any insurance deductible, or 132 any other thing of value in exchange for: 133 a. Allowing a contractor, a public adjuster, a public 134 adjuster apprentice, or a person acting on behalf of a public 135 adjuster or public adjuster apprentice to conduct an inspection 136 of the residential property owner’s roof; or 137 b. Making an insurance claim for damage to the residential 138 property owner’s roof. 139 2. Offering, delivering, receiving, or accepting any 140 compensation, inducement, or reward for the referral of any 141 services for which property insurance proceeds would be used for 142 roofing repairs or replacement. 143 (b) Notwithstanding the fine set forth in s. 626.8698, a 144 public adjuster or public adjuster apprentice may be subject to 145 a fine not to exceed $10,000 per act for a violation of this 146 subsection. 147 (c) A person who engages in an act prohibited by this 148 subsection and who is not a public adjuster or a public adjuster 149 apprentice, or is not otherwise exempt from licensure, is guilty 150 of the unlicensed practice of public adjusting and may be: 151 1. Subject to all applicable penalties set forth in part VI 152 of this chapter. 153 2. Notwithstanding subparagraph 1., subject to a fine not 154 to exceed $10,000 per act for a violation of this subsection. 155 Section 6. Subsection (1) of section 626.9373, Florida 156 Statutes, is amended to read: 157 626.9373 Attorney’s fees.— 158 (1) Upon the rendition of a judgment or decree by any court 159 of this state against a surplus lines insurer in favor of any 160 named or omnibus insured or the named beneficiary under a policy 161 or contract executed by the insurer on or after the effective 162 date of this act, the trial court or, if the insured or 163 beneficiary prevails on appeal, the appellate court, shall 164 adjudge or decree against the insurer in favor of the insured or 165 beneficiary a reasonable sum as fees or compensation for the 166 insured’s or beneficiary’s attorney prosecuting the lawsuit for 167 which recovery is awarded. In a suit arising under a residential 168 or commercial property insurance policy not brought by an 169 assignee, the amount of reasonable attorney fees shall be 170 awarded to an insured only as provided in s. 57.105 or s. 171 627.70152, as applicable. 172 Section 7. Paragraphs (c) and (n) of subsection (6) of 173 section 627.351, Florida Statutes, are amended, and paragraph 174 (jj) is added to subsection (6) of that section, to read: 175 627.351 Insurance risk apportionment plans.— 176 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 177 (c) The corporation’s plan of operation: 178 1. Must provide for adoption of residential property and 179 casualty insurance policy forms and commercial residential and 180 nonresidential property insurance forms, which must be approved 181 by the office before use. The corporation shall adopt the 182 following policy forms: 183 a. Standard personal lines policy forms that are 184 comprehensive multiperil policies providing full coverage of a 185 residential property equivalent to the coverage provided in the 186 private insurance market under an HO-3, HO-4, or HO-6 policy. 187 b. Basic personal lines policy forms that are policies 188 similar to an HO-8 policy or a dwelling fire policy that provide 189 coverage meeting the requirements of the secondary mortgage 190 market, but which is more limited than the coverage under a 191 standard policy. 192 c. Commercial lines residential and nonresidential policy 193 forms that are generally similar to the basic perils of full 194 coverage obtainable for commercial residential structures and 195 commercial nonresidential structures in the admitted voluntary 196 market. 197 d. Personal lines and commercial lines residential property 198 insurance forms that cover the peril of wind only. The forms are 199 applicable only to residential properties located in areas 200 eligible for coverage under the coastal account referred to in 201 sub-subparagraph (b)2.a. 202 e. Commercial lines nonresidential property insurance forms 203 that cover the peril of wind only. The forms are applicable only 204 to nonresidential properties located in areas eligible for 205 coverage under the coastal account referred to in sub 206 subparagraph (b)2.a. 207 f. The corporation may adopt variations of the policy forms 208 listed in sub-subparagraphs a.-e. which contain more restrictive 209 coverage. 210 g. Effective January 1, 2013, the corporation shall offer a 211 basic personal lines policy similar to an HO-8 policy with 212 dwelling repair based on common construction materials and 213 methods. 214 2. Must provide that the corporation adopt a program in 215 which the corporation and authorized insurers enter into quota 216 share primary insurance agreements for hurricane coverage, as 217 defined in s. 627.4025(2)(a), for eligible risks, and adopt 218 property insurance forms for eligible risks which cover the 219 peril of wind only. 220 a. As used in this subsection, the term: 221 (I) “Quota share primary insurance” means an arrangement in 222 which the primary hurricane coverage of an eligible risk is 223 provided in specified percentages by the corporation and an 224 authorized insurer. The corporation and authorized insurer are 225 each solely responsible for a specified percentage of hurricane 226 coverage of an eligible risk as set forth in a quota share 227 primary insurance agreement between the corporation and an 228 authorized insurer and the insurance contract. The 229 responsibility of the corporation or authorized insurer to pay 230 its specified percentage of hurricane losses of an eligible 231 risk, as set forth in the agreement, may not be altered by the 232 inability of the other party to pay its specified percentage of 233 losses. Eligible risks that are provided hurricane coverage 234 through a quota share primary insurance arrangement must be 235 provided policy forms that set forth the obligations of the 236 corporation and authorized insurer under the arrangement, 237 clearly specify the percentages of quota share primary insurance 238 provided by the corporation and authorized insurer, and 239 conspicuously and clearly state that the authorized insurer and 240 the corporation may not be held responsible beyond their 241 specified percentage of coverage of hurricane losses. 242 (II) “Eligible risks” means personal lines residential and 243 commercial lines residential risks that meet the underwriting 244 criteria of the corporation and are located in areas that were 245 eligible for coverage by the Florida Windstorm Underwriting 246 Association on January 1, 2002. 247 b. The corporation may enter into quota share primary 248 insurance agreements with authorized insurers at corporation 249 coverage levels of 90 percent and 50 percent. 250 c. If the corporation determines that additional coverage 251 levels are necessary to maximize participation in quota share 252 primary insurance agreements by authorized insurers, the 253 corporation may establish additional coverage levels. However, 254 the corporation’s quota share primary insurance coverage level 255 may not exceed 90 percent. 256 d. Any quota share primary insurance agreement entered into 257 between an authorized insurer and the corporation must provide 258 for a uniform specified percentage of coverage of hurricane 259 losses, by county or territory as set forth by the corporation 260 board, for all eligible risks of the authorized insurer covered 261 under the agreement. 262 e. Any quota share primary insurance agreement entered into 263 between an authorized insurer and the corporation is subject to 264 review and approval by the office. However, such agreement shall 265 be authorized only as to insurance contracts entered into 266 between an authorized insurer and an insured who is already 267 insured by the corporation for wind coverage. 268 f. For all eligible risks covered under quota share primary 269 insurance agreements, the exposure and coverage levels for both 270 the corporation and authorized insurers shall be reported by the 271 corporation to the Florida Hurricane Catastrophe Fund. For all 272 policies of eligible risks covered under such agreements, the 273 corporation and the authorized insurer must maintain complete 274 and accurate records for the purpose of exposure and loss 275 reimbursement audits as required by fund rules. The corporation 276 and the authorized insurer shall each maintain duplicate copies 277 of policy declaration pages and supporting claims documents. 278 g. The corporation board shall establish in its plan of 279 operation standards for quota share agreements which ensure that 280 there is no discriminatory application among insurers as to the 281 terms of the agreements, pricing of the agreements, incentive 282 provisions if any, and consideration paid for servicing policies 283 or adjusting claims. 284 h. The quota share primary insurance agreement between the 285 corporation and an authorized insurer must set forth the 286 specific terms under which coverage is provided, including, but 287 not limited to, the sale and servicing of policies issued under 288 the agreement by the insurance agent of the authorized insurer 289 producing the business, the reporting of information concerning 290 eligible risks, the payment of premium to the corporation, and 291 arrangements for the adjustment and payment of hurricane claims 292 incurred on eligible risks by the claims adjuster and personnel 293 of the authorized insurer. Entering into a quota sharing 294 insurance agreement between the corporation and an authorized 295 insurer is voluntary and at the discretion of the authorized 296 insurer. 297 3. May provide that the corporation may employ or otherwise 298 contract with individuals or other entities to provide 299 administrative or professional services that may be appropriate 300 to effectuate the plan. The corporation may borrow funds by 301 issuing bonds or by incurring other indebtedness, and shall have 302 other powers reasonably necessary to effectuate the requirements 303 of this subsection, including, without limitation, the power to 304 issue bonds and incur other indebtedness in order to refinance 305 outstanding bonds or other indebtedness. The corporation may 306 seek judicial validation of its bonds or other indebtedness 307 under chapter 75. The corporation may issue bonds or incur other 308 indebtedness, or have bonds issued on its behalf by a unit of 309 local government pursuant to subparagraph (q)2. in the absence 310 of a hurricane or other weather-related event, upon a 311 determination by the corporation, subject to approval by the 312 office, that such action would enable it to efficiently meet the 313 financial obligations of the corporation and that such 314 financings are reasonably necessary to effectuate the 315 requirements of this subsection. The corporation may take all 316 actions needed to facilitate tax-free status for such bonds or 317 indebtedness, including formation of trusts or other affiliated 318 entities. The corporation may pledge assessments, projected 319 recoveries from the Florida Hurricane Catastrophe Fund, other 320 reinsurance recoverables, policyholder surcharges and other 321 surcharges, and other funds available to the corporation as 322 security for bonds or other indebtedness. In recognition of s. 323 10, Art. I of the State Constitution, prohibiting the impairment 324 of obligations of contracts, it is the intent of the Legislature 325 that no action be taken whose purpose is to impair any bond 326 indenture or financing agreement or any revenue source committed 327 by contract to such bond or other indebtedness. 328 4. Must require that the corporation operate subject to the 329 supervision and approval of a board of governors consisting of 330 nine individuals who are residents of this state and who are 331 from different geographical areas of the state, one of whom is 332 appointed by the Governor and serves solely to advocate on 333 behalf of the consumer. The appointment of a consumer 334 representative by the Governor is deemed to be within the scope 335 of the exemption provided in s. 112.313(7)(b) and is in addition 336 to the appointments authorized under sub-subparagraph a. 337 a. The Governor, the Chief Financial Officer, the President 338 of the Senate, and the Speaker of the House of Representatives 339 shall each appoint two members of the board. At least one of the 340 two members appointed by each appointing officer must have 341 demonstrated expertise in insurance and be deemed to be within 342 the scope of the exemption provided in s. 112.313(7)(b). The 343 Chief Financial Officer shall designate one of the appointees as 344 chair. All board members serve at the pleasure of the appointing 345 officer. All members of the board are subject to removal at will 346 by the officers who appointed them. All board members, including 347 the chair, must be appointed to serve for 3-year terms beginning 348 annually on a date designated by the plan. However, for the 349 first term beginning on or after July 1, 2009, each appointing 350 officer shall appoint one member of the board for a 2-year term 351 and one member for a 3-year term. A board vacancy shall be 352 filled for the unexpired term by the appointing officer. The 353 Chief Financial Officer shall appoint a technical advisory group 354 to provide information and advice to the board in connection 355 with the board’s duties under this subsection. The executive 356 director and senior managers of the corporation shall be engaged 357 by the board and serve at the pleasure of the board. Any 358 executive director appointed on or after July 1, 2006, is 359 subject to confirmation by the Senate. The executive director is 360 responsible for employing other staff as the corporation may 361 require, subject to review and concurrence by the board. 362 b. The board shall create a Market Accountability Advisory 363 Committee to assist the corporation in developing awareness of 364 its rates and its customer and agent service levels in 365 relationship to the voluntary market insurers writing similar 366 coverage. 367 (I) The members of the advisory committee consist of the 368 following 11 persons, one of whom must be elected chair by the 369 members of the committee: four representatives, one appointed by 370 the Florida Association of Insurance Agents, one by the Florida 371 Association of Insurance and Financial Advisors, one by the 372 Professional Insurance Agents of Florida, and one by the Latin 373 American Association of Insurance Agencies; three 374 representatives appointed by the insurers with the three highest 375 voluntary market share of residential property insurance 376 business in the state; one representative from the Office of 377 Insurance Regulation; one consumer appointed by the board who is 378 insured by the corporation at the time of appointment to the 379 committee; one representative appointed by the Florida 380 Association of Realtors; and one representative appointed by the 381 Florida Bankers Association. All members shall be appointed to 382 3-year terms and may serve for consecutive terms. 383 (II) The committee shall report to the corporation at each 384 board meeting on insurance market issues which may include rates 385 and rate competition with the voluntary market; service, 386 including policy issuance, claims processing, and general 387 responsiveness to policyholders, applicants, and agents; and 388 matters relating to depopulation. 389 5. Must provide a procedure for determining the eligibility 390 of a risk for coverage, as follows: 391 a. Subject to s. 627.3517, with respect to personal lines 392 residential risks, if the risk is offered coverage from an 393 authorized insurer at the insurer’s approved rate under a 394 standard policy including wind coverage or, if consistent with 395 the insurer’s underwriting rules as filed with the office, a 396 basic policy including wind coverage, for a new application to 397 the corporation for coverage, the risk is not eligible for any 398 policy issued by the corporation unless the premium for coverage 399 from the authorized insurer is more than 2015percent greater 400 than the premium for comparable coverage from the corporation. 401 Whenever an offer of coverage for a personal lines residential 402 risk is received for a policyholder of the corporation at 403 renewal from an authorized insurer, if the offer is equal to or 404 less than the corporation’s renewal premium for comparable 405 coverage, the risk is not eligible for coverage with the 406 corporation. If the risk is not able to obtain such offer, the 407 risk is eligible for a standard policy including wind coverage 408 or a basic policy including wind coverage issued by the 409 corporation; however, if the risk could not be insured under a 410 standard policy including wind coverage regardless of market 411 conditions, the risk is eligible for a basic policy including 412 wind coverage unless rejected under subparagraph 8. However, a 413 policyholder removed from the corporation through an assumption 414 agreement remains eligible for coverage from the corporation 415 until the end of the assumption period. The corporation shall 416 determine the type of policy to be provided on the basis of 417 objective standards specified in the underwriting manual and 418 based on generally accepted underwriting practices. 419 (I) If the risk accepts an offer of coverage through the 420 market assistance plan or through a mechanism established by the 421 corporation other than a plan established by s. 627.3518, before 422 a policy is issued to the risk by the corporation or during the 423 first 30 days of coverage by the corporation, and the producing 424 agent who submitted the application to the plan or to the 425 corporation is not currently appointed by the insurer, the 426 insurer shall: 427 (A) Pay to the producing agent of record of the policy for 428 the first year, an amount that is the greater of the insurer’s 429 usual and customary commission for the type of policy written or 430 a fee equal to the usual and customary commission of the 431 corporation; or 432 (B) Offer to allow the producing agent of record of the 433 policy to continue servicing the policy for at least 1 year and 434 offer to pay the agent the greater of the insurer’s or the 435 corporation’s usual and customary commission for the type of 436 policy written. 437 438 If the producing agent is unwilling or unable to accept 439 appointment, the new insurer shall pay the agent in accordance 440 with sub-sub-sub-subparagraph (A). 441 (II) If the corporation enters into a contractual agreement 442 for a take-out plan, the producing agent of record of the 443 corporation policy is entitled to retain any unearned commission 444 on the policy, and the insurer shall: 445 (A) Pay to the producing agent of record, for the first 446 year, an amount that is the greater of the insurer’s usual and 447 customary commission for the type of policy written or a fee 448 equal to the usual and customary commission of the corporation; 449 or 450 (B) Offer to allow the producing agent of record to 451 continue servicing the policy for at least 1 year and offer to 452 pay the agent the greater of the insurer’s or the corporation’s 453 usual and customary commission for the type of policy written. 454 455 If the producing agent is unwilling or unable to accept 456 appointment, the new insurer shall pay the agent in accordance 457 with sub-sub-sub-subparagraph (A). 458 b. With respect to commercial lines residential risks, for 459 a new application to the corporation for coverage, if the risk 460 is offered coverage under a policy including wind coverage from 461 an authorized insurer at its approved rate, the risk is not 462 eligible for a policy issued by the corporation unless the 463 premium for coverage from the authorized insurer is more than 15 464 percent greater than the premium for comparable coverage from 465 the corporation. Whenever an offer of coverage for a commercial 466 lines residential risk is received for a policyholder of the 467 corporation at renewal from an authorized insurer, if the offer 468 is equal to or less than the corporation’s renewal premium for 469 comparable coverage, the risk is not eligible for coverage with 470 the corporation. If the risk is not able to obtain any such 471 offer, the risk is eligible for a policy including wind coverage 472 issued by the corporation. However, a policyholder removed from 473 the corporation through an assumption agreement remains eligible 474 for coverage from the corporation until the end of the 475 assumption period. 476 (I) If the risk accepts an offer of coverage through the 477 market assistance plan or through a mechanism established by the 478 corporation other than a plan established by s. 627.3518, before 479 a policy is issued to the risk by the corporation or during the 480 first 30 days of coverage by the corporation, and the producing 481 agent who submitted the application to the plan or the 482 corporation is not currently appointed by the insurer, the 483 insurer shall: 484 (A) Pay to the producing agent of record of the policy, for 485 the first year, an amount that is the greater of the insurer’s 486 usual and customary commission for the type of policy written or 487 a fee equal to the usual and customary commission of the 488 corporation; or 489 (B) Offer to allow the producing agent of record of the 490 policy to continue servicing the policy for at least 1 year and 491 offer to pay the agent the greater of the insurer’s or the 492 corporation’s usual and customary commission for the type of 493 policy written. 494 495 If the producing agent is unwilling or unable to accept 496 appointment, the new insurer shall pay the agent in accordance 497 with sub-sub-sub-subparagraph (A). 498 (II) If the corporation enters into a contractual agreement 499 for a take-out plan, the producing agent of record of the 500 corporation policy is entitled to retain any unearned commission 501 on the policy, and the insurer shall: 502 (A) Pay to the producing agent of record, for the first 503 year, an amount that is the greater of the insurer’s usual and 504 customary commission for the type of policy written or a fee 505 equal to the usual and customary commission of the corporation; 506 or 507 (B) Offer to allow the producing agent of record to 508 continue servicing the policy for at least 1 year and offer to 509 pay the agent the greater of the insurer’s or the corporation’s 510 usual and customary commission for the type of policy written. 511 512 If the producing agent is unwilling or unable to accept 513 appointment, the new insurer shall pay the agent in accordance 514 with sub-sub-sub-subparagraph (A). 515 c. For purposes of determining comparable coverage under 516 sub-subparagraphs a. and b., the comparison must be based on 517 those forms and coverages that are reasonably comparable. The 518 corporation may rely on a determination of comparable coverage 519 and premium made by the producing agent who submits the 520 application to the corporation, made in the agent’s capacity as 521 the corporation’s agent. A comparison may be made solely of the 522 premium with respect to the main building or structure only on 523 the following basis: the same coverage A or other building 524 limits; the same percentage hurricane deductible that applies on 525 an annual basis or that applies to each hurricane for commercial 526 residential property; the same percentage of ordinance and law 527 coverage, if the same limit is offered by both the corporation 528 and the authorized insurer; the same mitigation credits, to the 529 extent the same types of credits are offered both by the 530 corporation and the authorized insurer; the same method for loss 531 payment, such as replacement cost or actual cash value, if the 532 same method is offered both by the corporation and the 533 authorized insurer in accordance with underwriting rules; and 534 any other form or coverage that is reasonably comparable as 535 determined by the board. If an application is submitted to the 536 corporation for wind-only coverage in the coastal account, the 537 premium for the corporation’s wind-only policy plus the premium 538 for the ex-wind policy that is offered by an authorized insurer 539 to the applicant must be compared to the premium for multiperil 540 coverage offered by an authorized insurer, subject to the 541 standards for comparison specified in this subparagraph. If the 542 corporation or the applicant requests from the authorized 543 insurer a breakdown of the premium of the offer by types of 544 coverage so that a comparison may be made by the corporation or 545 its agent and the authorized insurer refuses or is unable to 546 provide such information, the corporation may treat the offer as 547 not being an offer of coverage from an authorized insurer at the 548 insurer’s approved rate. 549 6. Must include rules for classifications of risks and 550 rates. 551 7. Must provide that if premium and investment income for 552 an account attributable to a particular calendar year are in 553 excess of projected losses and expenses for the account 554 attributable to that year, such excess shall be held in surplus 555 in the account. Such surplus must be available to defray 556 deficits in that account as to future years and used for that 557 purpose before assessing assessable insurers and assessable 558 insureds as to any calendar year. 559 8. Must provide objective criteria and procedures to be 560 uniformly applied to all applicants in determining whether an 561 individual risk is so hazardous as to be uninsurable. In making 562 this determination and in establishing the criteria and 563 procedures, the following must be considered: 564 a. Whether the likelihood of a loss for the individual risk 565 is substantially higher than for other risks of the same class; 566 and 567 b. Whether the uncertainty associated with the individual 568 risk is such that an appropriate premium cannot be determined. 569 570 The acceptance or rejection of a risk by the corporation shall 571 be construed as the private placement of insurance, and the 572 provisions of chapter 120 do not apply. 573 9. Must provide that the corporation make its best efforts 574 to procure catastrophe reinsurance at reasonable rates, to cover 575 its projected 100-year probable maximum loss as determined by 576 the board of governors. If catastrophe reinsurance is not 577 available at reasonable rates, the corporation need not purchase 578 it, but the corporation shall include the costs of reinsurance 579 to cover its projected 100-year probable maximum loss in its 580 rate calculations even if it does not purchase catastrophe 581 reinsurance. 582 10. The policies issued by the corporation must provide 583 that if the corporation or the market assistance plan obtains an 584 offer from an authorized insurer to cover the risk at its 585 approved rates, the risk is no longer eligible for renewal 586 through the corporation, except as otherwise provided in this 587 subsection. 588 11. Corporation policies and applications must include a 589 notice that the corporation policy could, under this section, be 590 replaced with a policy issued by an authorized insurer which 591 does not provide coverage identical to the coverage provided by 592 the corporation. The notice must also specify that acceptance of 593 corporation coverage creates a conclusive presumption that the 594 applicant or policyholder is aware of this potential. 595 12. May establish, subject to approval by the office, 596 different eligibility requirements and operational procedures 597 for any line or type of coverage for any specified county or 598 area if the board determines that such changes are justified due 599 to the voluntary market being sufficiently stable and 600 competitive in such area or for such line or type of coverage 601 and that consumers who, in good faith, are unable to obtain 602 insurance through the voluntary market through ordinary methods 603 continue to have access to coverage from the corporation. If 604 coverage is sought in connection with a real property transfer, 605 the requirements and procedures may not provide an effective 606 date of coverage later than the date of the closing of the 607 transfer as established by the transferor, the transferee, and, 608 if applicable, the lender. 609 13. Must provide that, with respect to the coastal account, 610 any assessable insurer with a surplus as to policyholders of $25 611 million or less writing 25 percent or more of its total 612 countrywide property insurance premiums in this state may 613 petition the office, within the first 90 days of each calendar 614 year, to qualify as a limited apportionment company. A regular 615 assessment levied by the corporation on a limited apportionment 616 company for a deficit incurred by the corporation for the 617 coastal account may be paid to the corporation on a monthly 618 basis as the assessments are collected by the limited 619 apportionment company from its insureds, but a limited 620 apportionment company must begin collecting the regular 621 assessments not later than 90 days after the regular assessments 622 are levied by the corporation, and the regular assessments must 623 be paid in full within 15 months after being levied by the 624 corporation. A limited apportionment company shall collect from 625 its policyholders any emergency assessment imposed under sub 626 subparagraph (b)3.d. The plan must provide that, if the office 627 determines that any regular assessment will result in an 628 impairment of the surplus of a limited apportionment company, 629 the office may direct that all or part of such assessment be 630 deferred as provided in subparagraph (q)4. However, an emergency 631 assessment to be collected from policyholders under sub 632 subparagraph (b)3.d. may not be limited or deferred. 633 14. Must provide that the corporation appoint as its 634 licensed agents only those agents who throughout such 635 appointments also hold an appointment as defined in s. 626.015 636 by an insurer who is authorized to write and is actually writing 637 or renewing personal lines residential property coverage, 638 commercial residential property coverage, or commercial 639 nonresidential property coverage within the state. 640 15. Must provide a premium payment plan option to its 641 policyholders which, at a minimum, allows for quarterly and 642 semiannual payment of premiums. A monthly payment plan may, but 643 is not required to, be offered. 644 16. Must limit coverage on mobile homes or manufactured 645 homes built before 1994 to actual cash value of the dwelling 646 rather than replacement costs of the dwelling. 647 17. Must provide coverage for manufactured or mobile home 648 dwellings. Such coverage must also include the following 649 attached structures: 650 a. Screened enclosures that are aluminum framed or screened 651 enclosures that are not covered by the same or substantially the 652 same materials as those of the primary dwelling; 653 b. Carports that are aluminum or carports that are not 654 covered by the same or substantially the same materials as those 655 of the primary dwelling; and 656 c. Patios that have a roof covering that is constructed of 657 materials that are not the same or substantially the same 658 materials as those of the primary dwelling. 659 660 The corporation shall make available a policy for mobile homes 661 or manufactured homes for a minimum insured value of at least 662 $3,000. 663 18. May provide such limits of coverage as the board 664 determines, consistent with the requirements of this subsection. 665 19. May require commercial property to meet specified 666 hurricane mitigation construction features as a condition of 667 eligibility for coverage. 668 20. Must provide that new or renewal policies issued by the 669 corporation on or after January 1, 2012, which cover sinkhole 670 loss do not include coverage for any loss to appurtenant 671 structures, driveways, sidewalks, decks, or patios that are 672 directly or indirectly caused by sinkhole activity. The 673 corporation shall exclude such coverage using a notice of 674 coverage change, which may be included with the policy renewal, 675 and not by issuance of a notice of nonrenewal of the excluded 676 coverage upon renewal of the current policy. 677 21. As of January 1, 2012, must require that the agent 678 obtain from an applicant for coverage from the corporation an 679 acknowledgment signed by the applicant, which includes, at a 680 minimum, the following statement: 681 682 ACKNOWLEDGMENT OF POTENTIAL SURCHARGE 683 AND ASSESSMENT LIABILITY: 684 685 1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE 686 CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A 687 DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON, 688 MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND 689 PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE 690 POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT 691 OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA 692 LEGISLATURE. 693 2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER 694 SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM, 695 BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO 696 BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN 697 PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE 698 WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES 699 ARE REGULATED AND APPROVED BY THE STATE. 700 3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY 701 ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER 702 INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE 703 FLORIDA LEGISLATURE. 704 4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE 705 CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE 706 STATE OF FLORIDA. 707 708 a. The corporation shall maintain, in electronic format or 709 otherwise, a copy of the applicant’s signed acknowledgment and 710 provide a copy of the statement to the policyholder as part of 711 the first renewal after the effective date of this subparagraph. 712 b. The signed acknowledgment form creates a conclusive 713 presumption that the policyholder understood and accepted his or 714 her potential surcharge and assessment liability as a 715 policyholder of the corporation. 716 (n)1. Rates for coverage provided by the corporation must 717 be actuarially sound and subject to s. 627.062, except as 718 otherwise provided in this paragraph. The corporation shall file 719 its recommended rates with the office at least annually. The 720 corporation shall provide any additional information regarding 721 the rates which the office requires. The office shall consider 722 the recommendations of the board and issue a final order 723 establishing the rates for the corporation within 45 days after 724 the recommended rates are filed. The corporation may not pursue 725 an administrative challenge or judicial review of the final 726 order of the office. 727 2. In addition to the rates otherwise determined pursuant 728 to this paragraph, the corporation shall impose and collect an 729 amount equal to the premium tax provided in s. 624.509 to 730 augment the financial resources of the corporation. 731 3. After the public hurricane loss-projection model under 732 s. 627.06281 has been found to be accurate and reliable by the 733 Florida Commission on Hurricane Loss Projection Methodology, the 734 model shall be considered when establishing the windstorm 735 portion of the corporation’s rates. The corporation may use the 736 public model results in combination with the results of private 737 models to calculate rates for the windstorm portion of the 738 corporation’s rates. This subparagraph does not require or allow 739 the corporation to adopt rates lower than the rates otherwise 740 required or allowed by this paragraph. 7414.The rate filings for the corporation which were approved742by the office and took effect January 1, 2007, are rescinded,743except for those rates that were lowered. As soon as possible,744the corporation shall begin using the lower rates that were in745effect on December 31, 2006, and provide refunds to746policyholders who paid higher rates as a result of that rate747filing. The rates in effect on December 31, 2006, remain in748effect for the 2007 and 2008 calendar years except for any rate749change that results in a lower rate. The next rate change that750may increase rates shall take effect pursuant to a new rate751filing recommended by the corporation and established by the752office, subject to this paragraph.753 4.5.Beginning on July 15, 2009, and annually thereafter,754 The corporation must make a recommended actuarially sound rate 755 filing for each personal and commercial line of business it 756 writes, to be effective no earlier than January 1, 2010. 757 5.6. Beginning on or after January 1, 2010, and758 Notwithstanding the board’s recommended rates and the office’s 759 final order regarding the corporation’s filed rates under 760 subparagraph 1., the corporation shall annually implement a rate 761 increase which, except for sinkhole coverage, does not exceed 762 the following10 percentfor any single policy issued by the 763 corporation, excluding coverage changes and surcharges: 764 a. Eleven percent for 2022. 765 b. Twelve percent for 2023. 766 c. Thirteen percent for 2024. 767 d. Fourteen percent for 2025. 768 e. Fifteen percent for 2026 and all subsequent years. 769 6.7.The corporation may also implement an increase to 770 reflect the effect on the corporation of the cash buildup factor 771 pursuant to s. 215.555(5)(b). 772 7.8.The corporation’s implementation of rates as 773 prescribed in subparagraph 5.6.shall cease for any line of 774 business written by the corporation upon the corporation’s 775 implementation of actuarially sound rates. Thereafter, the 776 corporation shall annually make a recommended actuarially sound 777 rate filing for each commercial and personal line of business 778 the corporation writes. 779 (jj) The corporation’s budget allocations for the 780 compensation of all corporation employees and any proposed raise 781 for an individual employee exceeding 10 percent of that 782 employee’s current salary must be approved by the board of 783 governors. The corporation must have an overall employee 784 compensation plan approved by the board of governors. 785 Section 8. Subsection (5) of section 627.3518, Florida 786 Statutes, is amended to read: 787 627.3518 Citizens Property Insurance Corporation 788 policyholder eligibility clearinghouse program.—The purpose of 789 this section is to provide a framework for the corporation to 790 implement a clearinghouse program by January 1, 2014. 791 (5) Notwithstanding s. 627.3517, any applicant for new 792 coverage from the corporation is not eligible for coverage from 793 the corporation if provided an offer of coverage from an 794 authorized insurer through the program at a premium that is at 795 or below the eligibility threshold established in s. 796 627.351(6)(c)5.a. Whenever an offer of coverage for a personal 797 lines risk is received for a policyholder of the corporation at 798 renewal from an authorized insurer through the program, if the 799 offer is equal to or less than the corporation’s renewal premium 800 for comparable coverage, the risk is not eligible for coverage 801 with the corporation. In the event an offer of coverage for a 802 new applicant is received from an authorized insurer through the 803 program, and the premium offered exceeds the eligibility 804 threshold contained in s. 627.351(6)(c)5.a., the applicant or 805 insured may elect to accept such coverage, or may elect to 806 accept or continue coverage with the corporation. In the event 807 an offer of coverage for a personal lines risk is received from 808 an authorized insurer at renewal through the program, and the 809 premium offered is more than the corporation’s renewal premium 810 for comparable coverage, the insured may elect to accept such 811 coverage, or may elect to accept or continue coverage with the 812 corporation. Section 627.351(6)(c)5.a.(I) does not apply to an 813 offer of coverage from an authorized insurer obtained through 814 the program. An applicant for coverage from the corporation who 815 was declared ineligible for coverage at renewal by the 816 corporation in the previous 36 months due to an offer of 817 coverage pursuant to this subsection shall be considered a 818 renewal under this section if the corporation determines that 819 the authorized insurer making the offer of coverage pursuant to 820 this subsection continues to insure the applicant and increased 821 the rate on the policy in excess of the increase allowed for the 822 corporation under s. 627.351(6)(n)5.s. 627.351(6)(n)6.823 Section 9. Subsection (1) of section 627.428, Florida 824 Statutes, is amended to read: 825 627.428 Attorney fees.— 826 (1) Upon the rendition of a judgment or decree by any of 827 the courts of this state against an insurer and in favor of any 828 named or omnibus insured or the named beneficiary under a policy 829 or contract executed by the insurer, the trial court or, in the 830 event of an appeal in which the insured or beneficiary prevails, 831 the appellate court shall adjudge or decree against the insurer 832 and in favor of the insured or beneficiary a reasonable sum as 833 fees or compensation for the insured’s or beneficiary’s attorney 834 prosecuting the suit in which the recovery is had. In a suit 835 arising under a residential or commercial property insurance 836 policy not brought by an assignee, the amount of reasonable 837 attorney fees shall be awarded to an insured only as provided s. 838 57.105 or s. 627.70152, as applicable. 839 Section 10. Section 627.70132, Florida Statutes, is amended 840 to read: 841 627.70132 Notice of property insurancewindstorm or842hurricaneclaim.— 843 (1) As used in this section, the term: 844 (a) “Reopened claim” means a claim that an insurer has 845 previously closed, but that has been reopened upon an insured’s 846 request for additional costs for loss or damage previously 847 disclosed to the insurer. 848 (b) “Supplemental claim” means a claim for additional loss 849 or damage from the same peril which the insurer has previously 850 adjusted or for which costs have been incurred while completing 851 repairs or replacement pursuant to an open claim for which 852 timely notice was previously provided to the insurer. 853 (2) A claim or reopened claim, but not a supplemental 854 claim,or reopened claimunder an insurance policy that provides 855 property insurance, as defined in s. 624.604, including a 856 property insurance policy issued by an eligible surplus lines 857 insurer, for loss or damage caused by anytheperilof windstorm858or hurricaneis barred unless notice of the claim, supplemental859claim, or reopened claimwas given to the insurer in accordance 860 with the terms of the policy within 23years after the date of 861 losshurricane first made landfall or the windstorm caused the862covered damage. A supplemental claim is barred unless notice of 863 the supplemental claim was given to the insurer in accordance 864 with the terms of the policy within 3 years after the date of 865 loss. 866 (3) For claims resulting from hurricanes, tornadoes, 867 windstorms, severe rain, or other weather-related events, the 868 date of loss is the date that the hurricane made landfall or the 869 tornado, windstorm, severe rain, or other weather-related event 870 is verified by the National Oceanic and Atmospheric 871 AdministrationFor purposes of this section, the term872“supplemental claim” or “reopened claim” means any additional873claim for recovery from the insurer for losses from the same874hurricane or windstorm which the insurer has previously adjusted875pursuant to the initial claim. 876 (4) This section does not affect any applicable limitation 877 on civil actions provided in s. 95.11 for claims, supplemental 878 claims, or reopened claims timely filed under this section. 879 Section 11. Paragraph (e) of subsection (9) of section 880 627.7015, Florida Statutes, is amended to read: 881 627.7015 Alternative procedure for resolution of disputed 882 property insurance claims.— 883 (9) For purposes of this section, the term “claim” refers 884 to any dispute between an insurer and a policyholder relating to 885 a material issue of fact other than a dispute: 886 (a) With respect to which the insurer has a reasonable 887 basis to suspect fraud; 888 (b) When, based on agreed-upon facts as to the cause of 889 loss, there is no coverage under the policy; 890 (c) With respect to which the insurer has a reasonable 891 basis to believe that the policyholder has intentionally made a 892 material misrepresentation of fact which is relevant to the 893 claim, and the entire request for payment of a loss has been 894 denied on the basis of the material misrepresentation; 895 (d) With respect to which the amount in controversy is less 896 than $500, unless the parties agree to mediate a dispute 897 involving a lesser amount; or 898 (e) With respect to awindstorm or hurricaneloss that does 899 not comply with s. 627.70132. 900 Section 12. Section 627.70152, Florida Statutes, is created 901 to read: 902 627.70152 Suits arising under a property insurance policy.— 903 (1) APPLICATION.—This section applies exclusively to all 904 suits not brought by an assignee arising under a residential or 905 commercial property insurance policy, including a residential or 906 commercial property insurance policy issued by an eligible 907 surplus lines insurer. 908 (2) DEFINITIONS.—As used in this section, the term: 909 (a) “Amount obtained” means damages recovered, if any, but 910 the term does not include any amount awarded for attorney fees, 911 costs, or interest. 912 (b) “Claimant” means an insured who is filing suit under a 913 residential or commercial property insurance policy. 914 (c) “Disputed amount” means the difference between the 915 claimant’s presuit settlement demand, not including attorney 916 fees and costs listed in the demand, and the insurer’s presuit 917 settlement offer, not including attorney fees and costs, if part 918 of the offer. 919 (d) “Presuit settlement demand” means the demand made by 920 the claimant in the written notice of intent to initiate 921 litigation as required by paragraph (3)(e). The demand must 922 include the amount of reasonable and necessary attorney fees and 923 costs incurred by the claimant, to be calculated by multiplying 924 the number of hours actually worked on the claim by the 925 claimant’s attorney as of the date of the notice by a reasonable 926 hourly rate. 927 (e) “Presuit settlement offer” means the offer made by the 928 insurer in its written response to the notice as required by 929 subsection (3). 930 (3) NOTICE.— 931 (a) As a condition precedent to filing a suit under a 932 property insurance policy, a claimant must provide the 933 department with written notice of intent to initiate litigation 934 on a form provided by the department. Such notice must be given 935 at least 10 business days before filing suit under the policy, 936 but may not be given before the insurer has made a determination 937 of coverage under s. 627.70131. Notice to the insurer must be 938 provided by the department to the e-mail address designated by 939 the insurer under s. 624.422. The notice must state with 940 specificity all of the following information: 941 1. That the notice is provided pursuant to this section. 942 2. The alleged acts or omissions of the insurer giving rise 943 to the suit, which may include a denial of coverage. 944 3. If provided by an attorney or other representative, that 945 a copy of the notice was provided to the claimant. 946 4. If the notice is provided following a denial of 947 coverage, an estimate of damages, if known. 948 5. If the notice is provided following acts or omissions by 949 the insurer other than denial of coverage, both of the 950 following: 951 a. The presuit settlement demand, which must itemize the 952 damages, attorney fees, and costs. 953 b. The disputed amount. 954 955 Documentation to support the information provided in this 956 paragraph may be provided along with the notice to the insurer. 957 (b) A claimant must serve a notice of intent to initiate 958 litigation within the time limits provided in s. 95.11. However, 959 the notice is not required if the suit is a counterclaim. 960 Service of a notice tolls the time limits provided in s. 95.11 961 for 10 business days if such time limits will expire before the 962 end of the 10-day notice period. 963 (4) INSURER DUTIES.—An insurer must have a procedure for 964 the prompt investigation, review, and evaluation of the dispute 965 stated in the notice and must investigate each claim contained 966 in the notice in accordance with the Florida Insurance Code. 967 An insurer must respond in writing within 10 business days after 968 receiving the notice specified in subsection (3). The insurer 969 must provide the response to the claimant by e-mail if the 970 insured has designated an e-mail address in the notice. 971 (a) If an insurer is responding to a notice served on the 972 insurer following a denial of coverage by the insurer, the 973 insurer must respond by: 974 1. Accepting coverage; 975 2. Continuing to deny coverage; or 976 3. Asserting the right to reinspect the damaged property. 977 If the insurer responds by asserting the right to reinspect the 978 damaged property, it has 14 business days after the response 979 asserting that right to reinspect the property and accept or 980 continue to deny coverage. The time limits provided in s. 95.11 981 are tolled during the reinspection period if such time limits 982 expire before the end of the reinspection period. If the insurer 983 continues to deny coverage, the claimant may file suit without 984 providing additional notice to the insurer. 985 (b) If an insurer is responding to a notice provided to the 986 insurer alleging an act or omission by the insurer other than a 987 denial of coverage, the insurer must respond by making a 988 settlement offer or requiring the claimant to participate in 989 appraisal or another method of alternative dispute resolution. 990 The time limits provided in s. 95.11 are tolled as long as 991 appraisal or other alternative dispute resolution is ongoing if 992 such time limits expire during the appraisal process or dispute 993 resolution process. If the appraisal or alternative dispute 994 resolution has not been concluded within 90 days after the 995 expiration of the 10-day notice of intent to initiate litigation 996 specified in subsection (3), the claimant or claimant’s attorney 997 may immediately file suit without providing the insurer 998 additional notice. 999 (5) DISMISSAL OF SUIT.—A court must dismiss without 1000 prejudice any claimant’s suit relating to a claim for which a 1001 notice of intent to initiate litigation was not given as 1002 required by this section or if such suit is commenced before the 1003 expiration of any time period provided under subsection (4), as 1004 applicable. 1005 (6) ADMISSIBILITY OF NOTICE AND RESPONSE.—The notice 1006 provided pursuant to subsection (3) and, if applicable, the 1007 documentation to support the information provided in the notice: 1008 (a) Are admissible as evidence only in a proceeding 1009 regarding attorney fees. 1010 (b) Do not limit the evidence of attorney fees or costs, 1011 damages, or loss which may be offered at trial. 1012 (c) Do not relieve any obligation that an insured or 1013 assignee has to give notice under any other provision of law. 1014 (7) TOLLING.—If a claim is not resolved during the presuit 1015 notice process and if the time limits provided in s. 95.11 1016 expire in the 30 days following the conclusion of the presuit 1017 notice process, such time limits are tolled for 30 days. 1018 (8) ATTORNEY FEES.— 1019 (a) In a suit arising under a residential or commercial 1020 property insurance policy not brought by an assignee, the amount 1021 of reasonable attorney fees and costs under s. 626.9373(1) or s. 1022 627.428(1) shall be calculated and awarded as follows: 1023 1. If the difference between the amount obtained by the 1024 claimant and the presuit settlement offer, excluding reasonable 1025 attorney fees and costs, is less than 20 percent of the disputed 1026 amount, each party pays its own attorney fees and costs and a 1027 claimant may not be awarded attorney fees under s. 626.9373(1) 1028 or s. 627.428(1). 1029 2. If the difference between the amount obtained by the 1030 claimant and the presuit settlement offer, excluding reasonable 1031 attorney fees and costs, is at least 20 percent but less than 50 1032 percent of the disputed amount, the insurer pays the claimant’s 1033 attorney fees and costs under s. 626.9373(1) or s. 627.428(1) 1034 equal to the percentage of the disputed amount obtained times 1035 the total attorney fees and costs. 1036 3. If the difference between the amount obtained by the 1037 claimant and the presuit settlement offer, excluding reasonable 1038 attorney fees and costs, is at least 50 percent of the disputed 1039 amount, the insurer pays the claimant’s full attorney fees and 1040 costs under s. 626.9373(1) or s. 627.428(1). 1041 (b) In a suit arising under a residential or commercial 1042 property insurance policy not brought by an assignee, if a court 1043 dismisses a claimant’s suit pursuant to subsection (5), the 1044 court may not award to the claimant any incurred attorney fees 1045 for services rendered before the dismissal of the suit. 1046 Section 13. Section 627.70153, Florida Statutes, is created 1047 to read: 1048 627.70153 Consolidation of residential property insurance 1049 actions.—Each party that is aware of ongoing multiple actions 1050 involving coverage provided under the same residential property 1051 insurance policy for the same property with the same owners must 1052 provide written notice to the court of the multiple actions. 1053 Upon notification of any party, the court may order that the 1054 actions be consolidated and transferred to the court having 1055 jurisdiction based on the total amount in controversy of all 1056 consolidated claims. If multiple cases are pending in circuit 1057 courts, the cases may be consolidated based on the date on which 1058 the first case was filed. 1059 1060 ================= T I T L E A M E N D M E N T ================ 1061 And the title is amended as follows: 1062 Delete lines 1227 - 1319 1063 and insert: 1064 is not included; amending s. 624.424, F.S.; requiring 1065 property insurers, effective a certain date, to 1066 include certain data regarding closed claims in their 1067 annual reports to the Office of Insurance Regulation; 1068 requiring specified insurers to provide the office 1069 with certain information under certain circumstances; 1070 requiring the office to consider certain costs in 1071 determining whether payments made by an insurer to an 1072 affiliate are fair and reasonable; amending s. 1073 626.7451, F.S.; requiring managing general agents to 1074 enter into specified contracts with insurers even when 1075 the managing general agents control, or are controlled 1076 by, the insurers; amending s. 626.7452, F.S.; 1077 providing that a managing general agent may be 1078 examined as if it were the insurer even if the 1079 managing general agent solely represents a single 1080 domestic insurer; amending s. 626.854, F.S.; 1081 prohibiting certain acts by specified licensed 1082 contractors and their subcontractors; providing 1083 construction; prohibiting certain acts by a public 1084 adjuster, public adjuster apprentice, and certain 1085 other persons; providing that certain acts constitute 1086 unlicensed practice of public adjusting; providing 1087 penalties; amending s. 626.9373, F.S.; providing for 1088 the award of reasonable attorney fees as provided by 1089 specified provisions of law under certain 1090 circumstances; amending s. 627.351, F.S.; revising a 1091 procedure that the plan of operation of Citizens 1092 Property Insurance Corporation must provide; requiring 1093 the corporation to include the costs of catastrophe 1094 reinsurance to its projected 100-year probable maximum 1095 loss in its rate calculations even if the corporation 1096 does not purchase such reinsurance; deleting obsolete 1097 language relating to the corporation’s rate filings; 1098 requiring the corporation to annually implement a rate 1099 increase that does not exceed a certain percent for 1100 specified years; requiring the corporation’s budget 1101 allocations for salaries for the corporation’s 1102 employees, all employee raises exceeding 10 percent, 1103 and an employee compensation plan for the corporation 1104 to be approved by the corporation’s board of 1105 governors; amending s. 627.3518, F.S.; conforming a 1106 cross-reference; amending s. 627.428, F.S.; providing 1107 for the award of reasonable attorney fees as provided 1108 by specified provisions of law under certain 1109 circumstances; amending s. 627.70132, F.S.; revising 1110 the definitions of the terms “reopened claim” and 1111 “supplemental claim” to include all perils; providing 1112 that claims and reopened claims, but not supplemental 1113 claims, under certain property insurance policies for 1114 loss or damage caused by perils are barred unless 1115 notice is given within a specified timeframe; revising 1116 the timeframe for providing notices of property 1117 insurance claims; providing that supplemental claims 1118 are barred under certain circumstances; providing 1119 construction; amending s. 627.7015, F.S.; conforming a 1120 provision to changes made by the act; creating s. 1121 627.70152, F.S.; providing applicability; providing 1122 definitions; requiring a claimant to provide written 1123 notice to the department before a suit is filed under 1124 an insurance policy; requiring certain information to 1125 be included in the notice; requiring a claimant to 1126 serve notice within specified time limits; requiring 1127 an insurer to provide a response to the notice within 1128 a specified timeframe; providing for tolling of time 1129 if appropriate; requiring an insurer to have a 1130 procedure for the prompt investigation, review, and 1131 evaluation of a dispute stated in the notice and to 1132 investigate each claim in the notice in accordance 1133 with the Florida Insurance Code; requiring an insurer 1134 to provide a response to the notice within a specified 1135 timeframe; requiring an insurer to provide a response 1136 in a certain manner; requiring a court to dismiss 1137 without prejudice a claimant’s suit under certain 1138 circumstances; providing that the notice and 1139 documentation are admissible as evidence only in 1140 specified proceedings; providing construction; 1141 providing that time limits are tolled under certain 1142 circumstances; providing calculations and awards of 1143 attorney fees and costs under certain circumstances; 1144 prohibiting a court from awarding attorney fees to a 1145 claimant under certain circumstances; creating s. 1146 627.70153, F.S.; requiring parties that are aware of 1147 certain residential property insurance claims to 1148 notify the court of multiple proceedings; authorizing 1149 the court to consolidate certain residential property 1150 insurance claims upon notification of any party; 1151 amending s.