Bill Amendment: FL S1104 | 2024 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Policy Cancellations and Nonrenewals by Property Insurers
Status: 2024-03-08 - Died in Messages [S1104 Detail]
Download: Florida-2024-S1104-Senate_Committee_Amendment_839006.html
Bill Title: Policy Cancellations and Nonrenewals by Property Insurers
Status: 2024-03-08 - Died in Messages [S1104 Detail]
Download: Florida-2024-S1104-Senate_Committee_Amendment_839006.html
Florida Senate - 2024 COMMITTEE AMENDMENT Bill No. SB 1104 Ì839006"Î839006 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Judiciary (Bradley) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Paragraph (c) is added to subsection (2) of 6 section 626.9201, Florida Statutes, to read: 7 626.9201 Notice of cancellation or nonrenewal.— 8 (2) An insurer issuing a policy providing coverage for 9 property, casualty, surety, or marine insurance must give the 10 named insured written notice of cancellation or termination 11 other than nonrenewal at least 45 days before the effective date 12 of the cancellation or termination, including in the written 13 notice the reasons for the cancellation or termination, except 14 that: 15 (c) An insurer may not cancel or nonrenew a personal 16 residential or commercial residential property insurance policy 17 covering a dwelling or residential property located in this 18 state: 19 1. For a period of 90 days after the dwelling or 20 residential property has been repaired, if such property has 21 been damaged as a result of a hurricane or wind loss that is the 22 subject of the declaration of emergency pursuant to s. 252.36 23 and the filing of an order by the Commissioner of Insurance 24 Regulation. Damage under this subsection includes flood damage 25 caused by a hurricane if flood is a covered peril under the 26 personal residential or commercial residential property 27 insurance policy. If flood is not a covered peril under the 28 commercial property insurance policy and the property has been 29 damaged as a result of flood caused by a hurricane, an insurer 30 may not cancel or nonrenew the personal residential or 31 commercial residential property insurance policy until the 32 earlier of when the property has been repaired or 18 months 33 after the date of loss. 34 2. However, an insurer or agent may cancel or nonrenew such 35 a policy before the repair of the dwelling or residential 36 property: 37 a. Upon 10 days’ notice for nonpayment of premium; or 38 b. Upon 45 days’ notice: 39 (I) For a material misstatement or fraud related to the 40 claim; 41 (II) If the insurer determines that the insured has 42 unreasonably caused a delay in the repair of the dwelling; or 43 (III) If the insurer has paid the policy limits for a loss 44 to the insured dwelling under a personal residential property 45 insurance policy, or policy limits for a loss to each insured 46 structure that was damaged under a commercial residential 47 property insurance policy. 48 3. If the insurer elects to nonrenew a policy covering a 49 property that has been damaged, the insurer must provide at 50 least 90 days’ notice to the insured that the insurer intends to 51 nonrenew the policy 90 days after the dwelling or residential 52 property has been repaired. This subsection does not prevent the 53 insurer from canceling or nonrenewing the policy 90 days after 54 the repairs are complete for the same reasons the insurer would 55 otherwise have canceled or nonrenewed the policy but for the 56 limitations of this subsection. The commission may adopt rules, 57 and the Commissioner of Insurance Regulation may issue orders, 58 necessary to implement this subsection. 59 4. For purposes of this subsection: 60 a. A structure is deemed to be repaired when the following 61 persons have inspected and certified or attested to the 62 completion of the repairs: 63 (I) A home inspector licensed under s. 468.8314; 64 (II) A building code inspector certified under s. 468.607; 65 (III) A general, building, or residential contractor 66 licensed under s. 489.111; 67 (IV) A professional engineer licensed under s. 471.015; or 68 (V) A professional architect licensed under s. 481.213. 69 b. If a policy is extended or renewed to comply with this 70 subsection or with any other provision of the Commissioner of 71 Insurance Regulation’s order, the policy must contain similar 72 policy terms as the policy being extended or renewed. However, 73 this subsection does not impact current law with regard to the 74 rates insurers may charge for policies extended or renewed under 75 this subsection. 76 c. Flood damage that is not communicated to the insurer and 77 the agent of the insurer before the expiration of the policy is 78 presumed nonexistent and may not be construed to alter any terms 79 of a policy, create a separate cause of action, or create any 80 additional duty on the part of the insurer or an agent of an 81 insurer to the insured. 82 5. This subsection does not affect the provisions of s. 83 95.11 or s. 627.70132. 84 6. This paragraph is not intended to revise or modify any 85 provision of an emergency order issued by the office before July 86 1, 2024. 87 Section 2. Paragraph (e) of subsection (2) of section 88 627.4133, Florida Statutes, is amended to read: 89 627.4133 Notice of cancellation, nonrenewal, or renewal 90 premium.— 91 (2) With respect to any personal lines or commercial 92 residential property insurance policy, including, but not 93 limited to, any homeowner, mobile home owner, farmowner, 94 condominium association, condominium unit owner, apartment 95 building, or other policy covering a residential structure or 96 its contents: 97 (e)1. Anauthorizedinsurer may not cancel or nonrenew a 98 personal residential or commercial residential property 99 insurance policy covering a dwelling or residential property 100 located in this state: 101 a. For a period of 90 days after the dwelling or 102 residential property has been repaired, if such property has 103 been damaged as a result of a hurricane or wind loss that is the 104 subject of the declaration of emergency pursuant to s. 252.36 105 and the filing of an order by the Commissioner of Insurance 106 Regulation. Damage under this sub-subparagraph includes flood 107 damage caused by a hurricane if flood is a covered peril under 108 the personal residential or commercial residential property 109 insurance policy. If flood is not a covered peril under the 110 personal residential or commercial residential property 111 insurance policy and the property has been damaged as a result 112 of flood caused by a hurricane, an insurer may not cancel or 113 nonrenew the personal residential or commercial residential 114 property insurance policy until the earlier of when the property 115 has been repaired or 18 months after the date of loss. 116 b. Until the earlier of when the dwelling or residential 117 property has been repaired or 1 year after the insurer issues 118 the final claim payment, if such property was damaged by any 119 covered peril and sub-subparagraph a. does not apply. 120 2. However, an insurer or agent may cancel or nonrenew such 121 a policy beforeprior tothe repair of the dwelling or 122 residential property: 123 a. Upon 10 days’ notice for nonpayment of premium; or 124 b. Upon 45 days’ notice: 125 (I) For a material misstatement or fraud related to the 126 claim; 127 (II) If the insurer determines that the insured has 128 unreasonably caused a delay in the repair of the dwelling; or 129 (III) If the insurer has paid policy limits for a loss to 130 the insured dwelling under a personal residential policy, or 131 policy limits for a loss to each insured structure that was 132 damaged under a commercial residential policy. 133 3. If the insurer elects to nonrenew a policy covering a 134 property that has been damaged, the insurer mustshallprovide 135 at least 90 days’ notice to the insured that the insurer intends 136 to nonrenew the policy 90 days after the dwelling or residential 137 property has been repaired.Nothing inThis paragraph does not 138shallprevent the insurer from canceling or nonrenewing the 139 policy 90 days after the repairs are complete for the same 140 reasons the insurer would otherwise have canceled or nonrenewed 141 the policy but for the limitations of subparagraph 1. The 142 Financial Services Commission may adopt rules, and the 143 Commissioner of Insurance Regulation may issue orders, necessary 144 to implement this paragraph. 145 4. This paragraph is not intended to revise or modify any 146 provision of an emergency order issued by the office before July 147 1, 2024This paragraph shall also apply to personal residential148and commercial residential policies covering property that was149damaged as the result of Hurricane Ian or Hurricane Nicole. 150 5. For purposes of this paragraph: 151 a. A structure is deemed to be repaired when the following 152 persons have inspected and certified or attested to the 153 completion of the repairs: 154 (I) A home inspector licensed under s. 468.8314; 155 (II) A building code inspector certified under s. 468.607; 156 (III) A general, building, or residential contractor 157 licensed under s. 489.111; 158 (IV) A professional engineer licensed under s. 471.015; or 159 (V) A professional architect licensed under s. 481.213 160substantially completed and restored to the extent that it is161insurable by another authorized insurer writing policies in this162state. 163 b. The term “insurer” means an authorized insurer. 164 c. If a policy is extended or renewed to comply with this 165 paragraph or with any other provision of the Commissioner of 166 Insurance Regulation’s order, the policy must contain similar 167 policy terms as the policy being extended or renewed. However, 168 this paragraph does not impact current law with regard to the 169 rates insurers may charge for policies extended or renewed under 170 this paragraph. 171 d. Flood damage that is not communicated to the insurer and 172 the agent of the insurer before the expiration of the policy is 173 presumed nonexistent and may not be construed to alter any terms 174 of a policy, create a separate cause of action, or create any 175 additional duty on the part of the insurer or an agent of an 176 insurer to the insured. 177 6. This paragraph does not affect the provisions of s. 178 95.11 or. s. 627.70132. 179 Section 3. This act shall take effect July 1, 2024. 180 181 ================= T I T L E A M E N D M E N T ================ 182 And the title is amended as follows: 183 Delete everything before the enacting clause 184 and insert: 185 A bill to be entitled 186 An act relating to policy cancellations and 187 nonrenewals by property insurers; amending s. 188 626.9201, F.S.; prohibiting insurers from canceling 189 and nonrenewing, within certain timeframes, policies 190 covering personal residential or commercial 191 residential properties damaged by hurricanes or wind 192 losses; providing exceptions; providing construction; 193 authorizing the Financial Services Commission to adopt 194 rules and the Commissioner of Insurance Regulation to 195 issue orders; requiring that certain policies contain 196 similar terms under certain circumstances; amending s. 197 627.4133, F.S.; prohibiting insurers from canceling 198 and nonrenewing, within certain timeframes, policies 199 covering personal residential or commercial 200 residential properties damaged by hurricanes or wind 201 losses; providing that such prohibition applies to 202 flood damages caused by hurricanes under certain 203 circumstances; revising exceptions; providing 204 construction; requiring that certain policies contain 205 similar terms under certain circumstances; providing 206 an effective date.