Bill Text: FL S0002 | 2022 | 4th Special Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Property Insurance
Spectrum: Bipartisan Bill
Status: (Passed) 2022-06-29 - Chapter No. 2022-268 [S0002 Detail]
Download: Florida-2022-S0002-Comm_Sub.html
Bill Title: Property Insurance
Spectrum: Bipartisan Bill
Status: (Passed) 2022-06-29 - Chapter No. 2022-268 [S0002 Detail]
Download: Florida-2022-S0002-Comm_Sub.html
Florida Senate - 2022 CS for SB 2-D By the Committee on Appropriations; and Senator Boyd 576-00048-22D 20222Dc1 1 A bill to be entitled 2 An act relating to property insurance; creating s. 3 215.5551, F.S.; creating the Reinsurance to Assist 4 Policyholders program to be administered by the State 5 Board of Administration; defining terms; requiring 6 certain property insurers to obtain coverage under the 7 program; requiring the board to provide reimbursement 8 to property insurers under the program; requiring the 9 board and property insurers to enter into contracts to 10 provide certain insurance reimbursement; providing 11 requirements for the contracts; providing 12 construction; providing calculations for specified 13 amounts of losses to determine reimbursement under the 14 program; authorizing the board to inspect, examine, 15 and verify insurer records; providing insurer 16 eligibility qualifications for the program; providing 17 for disqualification; requiring certain insurers to 18 notify the board under a specified circumstance; 19 providing for deferral of coverage under the program; 20 prohibiting premiums from being charged for 21 participation in the program; providing that the 22 program does not affect the claims-paying capacity of 23 the Florida Hurricane Catastrophe Fund; requiring the 24 program to pay reimbursements directly to the 25 applicable state guaranty fund in the event of 26 insolvency; specifying requirements for the Florida 27 Hurricane Catastrophe Fund if an insurer or the 28 Citizens Property Insurance Corporation accept 29 assignments of unsound insurers; providing that 30 certain violations are violations of the insurance 31 code; authorizing the board to enforce certain 32 requirements; authorizing the board to adopt rules; 33 providing legislative intent; requiring the board to 34 submit a written notice within a certain timeframe to 35 the Executive Office of the Governor relating to the 36 program funds, under certain circumstances; providing 37 a requirement for the notice and subsequent requests; 38 requiring the Executive Office of the Governor to 39 instruct the Chief Financial Officer to draw a warrant 40 for a transfer to the board for the program under 41 certain circumstances and to provide notification to 42 specified persons within a certain timeframe; 43 prohibiting cumulative transfers from exceeding a 44 specified amount; providing reporting requirements; 45 providing for expiration and transfer of unencumbered 46 funds; requiring certain property insurers to reduce 47 rates to reflect certain cost savings through rate 48 filings by a specified date; prohibiting such insurers 49 from making other rate changes; requiring the Office 50 of Insurance Regulation to expedite the review of 51 certain filings; amending s. 215.5586, F.S.; revising 52 homeowner eligibility criteria for mitigation grants; 53 specifying matching requirements for grants; revising 54 reporting requirements; providing an appropriation; 55 requiring the Department of Financial Services to 56 submit budget amendments; specifying requirements for 57 budget amendments; providing for reversion and 58 appropriation of any unexpended balance; providing for 59 expiration; amending s. 489.147, F.S.; revising the 60 definition of the term “prohibited advertisement”; 61 creating s. 624.1551, F.S.; requiring claimants to 62 establish that property insurers have breached the 63 insurance contract to prevail in certain claims for 64 damages; amending s. 624.307, F.S.; requiring the 65 office to publish certain information on its website; 66 amending s. 624.313, F.S.; revising the information 67 the office must include in a certain annual report; 68 amending s. 624.315, F.S.; revising the information 69 the office must include in certain reports; amending 70 s. 624.424, F.S.; requiring the Office of Insurance 71 Regulation to aggregate on a statewide basis and make 72 publicly available certain data submitted by insurers 73 and insurer groups; specifying requirements for 74 publishing such data; providing that such information 75 is not a trade secret and is not subject to a certain 76 public records exemption; amending s. 626.9373, F.S.; 77 revising conditions for the award of reasonable 78 attorney fees to apply to all suits brought under 79 residential or commercial property insurance policies, 80 rather than those not brought by assignees; limiting 81 the transfer, assignment, or acquisition of rights to 82 attorney fees in certain property insurance suits; 83 amending s. 627.428, F.S.; revising conditions for the 84 award of reasonable attorney fees to apply to all 85 suits brought under residential or commercial property 86 insurance policies, rather than those not brought by 87 assignees; limiting the transfer, assignment, or 88 acquisition of rights to attorney fees in certain 89 property insurance suits; amending s. 627.701, F.S.; 90 revising a prohibition against the issuance of 91 insurance policies containing certain deductible 92 provisions; revising the conditions a personal lines 93 residential property insurance policy covering certain 94 risks must meet under certain circumstances; requiring 95 personal lines residential property insurance policies 96 containing separate roof deductibles to include 97 specified information; authorizing property insurers 98 to include separate roof deductibles if certain 99 requirements are met; providing requirements for 100 policyholders in rejecting such deductibles under 101 certain circumstances; requiring the office to 102 expedite the review of filing of certain forms; 103 authorizing the commission to adopt certain model 104 forms or guidelines; requiring the office to review 105 certain filings within a specified timeframe; 106 providing that roof deductible portions of the filing 107 are not subject to a specified extension for review; 108 amending s. 627.7011, F.S.; authorizing property 109 insurers to limit certain roof claim payments under 110 certain circumstances; defining the term “authorized 111 inspector”; prohibiting insurers from refusing to 112 issue or renew homeowners’ policies insuring certain 113 structures; requiring insurers to allow homeowners to 114 have roof inspections performed before requiring roof 115 replacement; providing applicability; amending s. 116 627.70131, F.S.; requiring insurers to conduct 117 physical inspections for certain claims within a 118 specified timeframe; requiring property insurers to 119 notify and provide certain detailed estimates to 120 policyholders; providing construction; requiring 121 property insurers to provide reasonable explanations 122 related to claims under certain circumstances; 123 amending s. 627.70152, F.S.; making a technical 124 change; authorizing property insurers to be awarded 125 attorney fees in certain suit dismissals; providing 126 that a strong presumption is created that a lodestar 127 fee is sufficient and reasonable; providing that such 128 presumption may be rebutted only under certain 129 circumstances; amending s. 627.7142, F.S.; conforming 130 a cross-reference; amending s. 627.7152, F.S.; 131 revising the definition of the term “assignment 132 agreement”; deleting the definitions of the terms 133 “disputed amount” and “judgment obtained”; revising a 134 requirement for assignment agreements; revising the 135 requirement for assignees to indemnify and hold 136 harmless assignors; specifying a timeframe during 137 which and the addresses to which a notice of intent 138 must be served; deleting certain limitations on the 139 recovery and award of attorney fees in suits related 140 to assignment agreements; creating s. 627.7154, F.S.; 141 creating a property insurer stability unit within the 142 office for a specified purpose; specifying the duties 143 of the unit; requiring the unit to provide a specified 144 report biannually; specifying requirements for such 145 report; specifying events that trigger referrals to 146 the unit; requiring the unit’s supervisors to review 147 such referrals for a certain determination; requiring 148 unit expenses be paid from a specified fund; requiring 149 costs of examinations to be paid by examined persons 150 in a specified circumstance; amending s. 631.031, 151 F.S.; requiring certain notifications by the office to 152 the department of grounds for delinquency proceedings 153 to include an affidavit; specifying contents of such 154 affidavit; amending s. 631.398, F.S.; specifying 155 duties of the department for insurer insolvency 156 proceedings; providing for construction of the act in 157 pari materia with laws enacted during the 2022 Regular 158 Session of the Legislature; providing effective dates. 159 160 Be It Enacted by the Legislature of the State of Florida: 161 162 Section 1. Section 215.5551, Florida Statutes, is created 163 to read: 164 215.5551 Reinsurance to Assist Policyholders program.— 165 (1) CREATION OF THE REINSURANCE TO ASSIST POLICYHOLDERS 166 PROGRAM.—There is created the Reinsurance to Assist 167 Policyholders program to be administered by the State Board of 168 Administration. 169 (2) DEFINITIONS.—As used in this section, the term: 170 (a) “Board” means the State Board of Administration. 171 (b) “Contract year” means the period beginning on June 1 of 172 a specified calendar year and ending on May 31 of the following 173 calendar year. 174 (c) “Covered event” means any one storm declared to be a 175 hurricane by the National Hurricane Center, which storm causes 176 insured losses in this state. 177 (d) “Covered policy” has the same meaning as in s. 178 215.555(2)(c). 179 (e) “FHCF” means the Florida Hurricane Catastrophe Fund 180 created under s. 215.555. 181 (f) “Losses” has the same meaning as in s. 215.555(2)(d). 182 (g) “RAP” means the Reinsurance to Assist Policyholders 183 program created by this section. 184 (h) “RAP insurer” means an insurer that is a participating 185 insurer in the FHCF on June 1, 2022, which must obtain coverage 186 under the RAP program and qualifies under subsection (5). 187 However, any joint underwriting association, risk apportionment 188 plan, or other entity created under s. 627.351 is not considered 189 a RAP insurer and is prohibited from obtaining coverage under 190 the RAP program. 191 (i) “RAP limit” means, for the 2022-2023 contract year, the 192 RAP insurer’s maximum payout, which is its share of the $2 193 billion RAP layer aggregate limit. For the 2023-2024 contract 194 year, for RAP insurers that are subject to participation 195 deferral under subsection (6) and participate during the 2023 196 2024 contract year, the RAP limit means the RAP insurer’s 197 maximum payout, which is its share of the total amount of the 198 RAP program layer aggregate limit deferred from 2022-2023. 199 (j) “RAP qualification ratio” means: 200 1. For the 2022-2023 contract year, the ratio of FHCF 201 mandatory premium adjusted to 90 percent for RAP insurers 202 divided by the FHCF mandatory premium adjusted to 90 percent for 203 all insurers. The preliminary RAP qualification ratio shall be 204 based on the 2021-2022 contract year’s company premiums, as of 205 December 31, 2021, adjusted to 90 percent based on the 2022-2023 206 contract year coverage selections. The RAP qualification ratio 207 shall be based on the reported 2022-2023 contract year company 208 premiums, as of December 31, 2022, adjusted to 90 percent. 209 2. For the 2023-2024 contract year, the ratio of FHCF 210 mandatory premium adjusted to 90 percent for the qualified RAP 211 insurers that have deferred RAP coverage to 2023-2024 divided by 212 the FHCF mandatory premium adjusted to 90 percent for all 213 insurers. The preliminary RAP qualification ratio shall be based 214 on the 2022-2023 contract year’s company premiums as of December 215 31, 2022, adjusted to 90 percent based on the 2023-2024 contract 216 year coverage selections. The RAP qualification ratio shall be 217 based on the reported 2023-2024 contract year company premiums 218 as of December 31, 2023, adjusted to 90 percent. 219 (k) “RAP reimbursement contract” means the reimbursement 220 contract reflecting the obligations of the RAP program to 221 insurers. 222 (l) “RAP retention” means the amount of losses below which 223 a RAP insurer is not entitled to reimbursement under the RAP 224 program. 225 (m) “Unsound insurer” means a RAP insurer determined by the 226 Office of Insurance Regulation to be in unsound condition as 227 defined in s. 624.80(2) or a RAP insurer placed in receivership 228 under chapter 631. 229 (3) COVERAGE.— 230 (a) As a condition of doing business in this state, each 231 RAP insurer shall obtain coverage under the RAP program. 232 (b) The board shall provide a reimbursement layer of $2 233 billion below the FHCF retention prior to the third event 234 dropdown of the FHCF retention set forth in s. 215.555(2)(e). 235 Subject to the mandatory notice provisions in subsection (5), 236 the board shall enter into a RAP reimbursement contract with 237 each eligible RAP insurer writing covered policies in this state 238 to provide to the insurer the reimbursement described in this 239 section. 240 (4) RAP REIMBURSEMENT CONTRACTS.— 241 (a)1. The board shall issue a RAP reimbursement contract to 242 each eligible RAP insurer which is effective: 243 a. June 1, 2022, for RAP insurers that participate in the 244 RAP program during the 2022-2023 contract year; or 245 b. June 1, 2023, for RAP insurers that are subject to 246 participation deferral under subsection (6) and participate in 247 the RAP program during the 2023-2024 contract year. 248 2. The reimbursement contract shall be executed no later 249 than: 250 a. July 15, 2022, for RAP insurers that participate in the 251 RAP program during the 2022-2023 contract year; or 252 b. March 1, 2023, for RAP insurers that are subject to 253 participation deferral under subsection (6) and participate in 254 the RAP program during the 2023-2024 contract year. 255 3. If a RAP insurer fails to execute the RAP reimbursement 256 contract by the dates required in this paragraph, the RAP 257 insurance contract is deemed to have been executed by the RAP 258 insurer. 259 (b) For the two covered events with the largest losses, the 260 RAP reimbursement contract must contain a promise by the board 261 to reimburse the RAP insurer for 90 percent of its losses from 262 each covered event in excess of the insurer’s RAP retention, 263 plus 10 percent of the reimbursed losses to cover loss 264 adjustment expenses. The sum of the losses and 10 percent loss 265 adjustment expense allocation from the RAP layer may not exceed 266 the RAP limit. Recoveries on losses in the FHCF mandatory layer 267 shall inure to the benefit of the RAP contract layer. 268 (c) The RAP reimbursement contract must provide that 269 reimbursement amounts are not reduced by reinsurance paid or 270 payable to the insurer from other sources excluding the FHCF. 271 (d) The board shall calculate and report to each RAP 272 insurer the RAP payout multiples as the ratio of the RAP 273 industry limit of $2 billion for the 2022-2023 contract year, or 274 the deferred limit for the 2022-2023 contract year, to the 275 mandatory FHCF retention multiplied by the mandatory FHCF 276 retention multiples divided by the RAP qualification ratio. The 277 RAP payout multiple for an insurer is multiplied by the RAP 278 insurer’s FHCF premium to calculate its RAP maximum payout. RAP 279 payout multiples are calculated for 45 percent, 75 percent, and 280 90 percent FHCF mandatory coverage selections. 281 (e) A RAP insurer’s RAP retention is calculated as follows: 282 1. The board shall calculate and report to each RAP insurer 283 the RAP retention multiples for each FHCF coverage selection as 284 the FHCF retention multiple minus the RAP payout multiple. The 285 RAP retention multiple for an insurer is multiplied by the RAP 286 insurer’s FHCF premium to calculate its RAP retention. RAP 287 retention multiples are calculated for 45 percent, 75 percent, 288 and 90 percent FHCF mandatory coverage selections. 289 2. The RAP industry retention for the 2022-2023 contract 290 year is the FHCF’s industry retention minus $2 billion, prior to 291 allocation to qualifying RAP insurers. The RAP industry 292 retention for the 2023-2024 contract year is the FHCF’s industry 293 retention for the 2023-2024 contract year minus the total 294 deferred RAP limit, prior to allocation to qualifying RAP 295 insurers. 296 3. A RAP insurer determines its actual RAP retention by 297 multiplying its actual mandatory reimbursement FHCF premium by 298 the RAP retention multiple. 299 (f) To ensure that insurers have properly reported the 300 losses for which RAP reimbursements have been made, the board 301 may inspect, examine, and verify the records of each RAP 302 insurer’s covered policies at such times as the board deems 303 appropriate for the specific purpose of validating the accuracy 304 of losses required to be reported under the terms and conditions 305 of the RAP reimbursement contract. 306 (5) INSURER QUALIFICATION.— 307 (a) An insurer is not eligible to participate in the RAP 308 program if the board receives a notice from the Commissioner of 309 Insurance Regulation which certifies that the insurer is in an 310 unsound financial condition no later than: 311 1. June 15, 2022, for RAP insurers that participate during 312 the 2022-2023 contract year; or 313 2. February 1, 2023, for RAP insurers subject to 314 participation deferral under subsection (6) and participate 315 during the 2023-2024 contract year. 316 (b) The office must make this determination based on the 317 following factors: 318 1. The insurer’s compliance with the requirements to 319 qualify for and hold a certificate of authority under s. 320 624.404; 321 2. The insurer’s compliance with the applicable surplus 322 requirements of s. 624.408; 323 3. The insurer’s compliance with the applicable risk-based 324 capital requirements under s. 624.4085; 325 4. The insurer’s compliance with the applicable premium to 326 surplus requirements under s. 624.4095; and 327 5. An analysis of quarterly and annual statements, 328 including an actuarial opinion summary, and other information 329 submitted to the office pursuant to s. 624.424. 330 (c) If the board receives timely notice pursuant to 331 paragraph (a) regarding an insurer, such insurer is disqualified 332 from participating in the RAP program. 333 (6) PARTICIPATION DEFERRAL.— 334 (a) A RAP insurer that has any private reinsurance that 335 duplicates RAP coverage that such insurer would receive for the 336 2022-2023 contract year shall notify the board in writing of 337 such duplicative coverage no later than June 30, 2022. 338 Participation in the RAP program for such RAP insurers shall be 339 deferred until the 2023-2024 contract year. 340 (b) A new participating insurer that begins writing covered 341 policies in this state after June 1, 2022, is deemed to defer 342 its RAP coverage to the 2023-2024 contract year. 343 (7) RAP PREMIUMS.—Premiums may not be charged for 344 participation in the RAP program. 345 (8) CLAIMS-PAYING CAPACITY.—The RAP program shall not 346 affect the claims-paying capacity of the FHCF as provided in s. 347 215.555(4)(c)1. 348 (9) INSOLVENCY OF RAP INSURER.— 349 (a) The RAP reimbursement contract shall provide that in 350 the event of an insolvency of a RAP insurer, the RAP program 351 shall pay reimbursements directly to the applicable state 352 guaranty fund for the benefit of policyholders in this state of 353 the RAP insurer. 354 (b) If an authorized insurer or the Citizens Property 355 Insurance Corporation accepts an assignment of an unsound RAP 356 insurer’s RAP contract, the FHCF shall apply the unsound RAP 357 insurer’s RAP contract to such policies and treat the authorized 358 insurer or the Citizens Property Insurance Corporation as if it 359 were the unsound RAP insurer for the remaining term of the RAP 360 contract, with all rights and duties of the unsound RAP insurer 361 beginning on the date it provides coverage for such policies. 362 (10) VIOLATIONS.—Any violation of this section or of rules 363 adopted under this section constitutes a violation of the 364 insurance code. 365 (11) LEGAL PROCEEDINGS.—The board is authorized to take any 366 action necessary to enforce the rules, provisions, and 367 requirements of the RAP reimbursement contract, required by and 368 adopted pursuant to this section. 369 (12) RULEMAKING.—The board may adopt such rules as are 370 reasonable and necessary to implement this section, and it is 371 the intent of the Legislature that all rules adopted to 372 implement this section will be done as emergency rules pursuant 373 to s. 120.54(4). 374 (13) APPROPRIATION.— 375 (a) Within 60 days after a covered event, the board shall 376 submit written notice to the Executive Office of the Governor if 377 the board determines that funds from the RAP program coverage 378 established by this section will be necessary to reimburse RAP 379 insurers for losses associated with the covered event. The 380 initial notice, and any subsequent requests, must specify the 381 amount necessary to provide RAP reimbursements. Upon receiving 382 such notice, the Executive Office of the Governor shall instruct 383 the Chief Financial Officer to draw a warrant from the General 384 Revenue Fund for a transfer to the board for the RAP program in 385 the amount requested. The Executive Office of the Governor shall 386 provide written notification to the chair and vice chair of the 387 Legislative Budget Commission at least 3 days before the 388 effective date of the warrant. Cumulative transfers authorized 389 under this paragraph may not exceed $2 billion. 390 (b) If General Revenue Funds are transferred to the board 391 for the RAP program under paragraph (a), the board shall submit 392 written notice to the Executive Office of the Governor that 393 funds will be necessary for the administration of the RAP 394 program and post-event examinations for covered events that 395 require RAP coverage. The initial notice, and any subsequent 396 requests, must specify the amount necessary for administration 397 of the RAP program and post-event examinations. Upon receiving 398 such notice, the Executive Office of the Governor shall instruct 399 the Chief Financial Officer to draw a warrant from the General 400 Revenue Fund for a transfer to the board for the RAP program in 401 the amount requested. The Executive Office of the Governor shall 402 provide written notification to the chair and vice chair of the 403 Legislative Budget Commission at least 3 days before the 404 effective date of the warrant. Cumulative transfers authorized 405 under this paragraph may not exceed $5 million. 406 (c) No later than January 31, 2023, and quarterly 407 thereafter, the board shall submit a report to the Executive 408 Office of the Governor, the President of the Senate, and the 409 Speaker of the House of Representatives detailing any 410 reimbursements of the RAP program, all loss development 411 projections, the amount of RAP reimbursement coverage deferred 412 until the 2023-2024 contract year, and detailed information 413 about administrative and post-event examination expenditures. 414 (14) EXPIRATION DATE.—If no General Revenue Funds have been 415 transferred to the board for the RAP program under subsection 416 (13) by June 30, 2025, this section expires on July 1, 2025. If 417 General Revenue Funds have been transferred to the board for the 418 RAP program under subsection (13) by June 30, 2025, this section 419 expires on July 1, 2029, and all unencumbered RAP program funds 420 shall be transferred by the board back to the General Revenue 421 Fund unallocated. 422 Section 2. (1) No later than June 30, 2022, each insurer 423 that participates during the 2022-2023 contract year in the 424 Reinsurance to Assist Policyholders program under s. 215.5551, 425 Florida Statutes, shall reduce its rates to reflect the cost 426 savings realized by participating in the program through a rate 427 filing with the Office of Insurance Regulation or by amending a 428 pending rate filing. The insurer shall make no other changes to 429 its rates in the filing. 430 (2) No later than May 1, 2023, each insurer that defers 431 participation in the Reinsurance to Assist Policyholders program 432 until the 2023-2024 year under s. 215.5551, Florida Statutes, 433 shall reduce its rates to reflect the cost savings realized by 434 participating in the program through a rate filing with the 435 Office of Insurance Regulation or by amending a pending rate 436 filing. The insurer shall make no other changes to its rates in 437 the filing. 438 (3) The Office of Insurance Regulation shall expedite the 439 review of the filings made under this section. 440 Section 3. Effective July 1, 2022, paragraphs (a) and (b) 441 of subsection (2) and subsection (10) of section 215.5586, 442 Florida Statutes, are amended to read: 443 215.5586 My Safe Florida Home Program.—There is established 444 within the Department of Financial Services the My Safe Florida 445 Home Program. The department shall provide fiscal 446 accountability, contract management, and strategic leadership 447 for the program, consistent with this section. This section does 448 not create an entitlement for property owners or obligate the 449 state in any way to fund the inspection or retrofitting of 450 residential property in this state. Implementation of this 451 program is subject to annual legislative appropriations. It is 452 the intent of the Legislature that the My Safe Florida Home 453 Program provide trained and certified inspectors to perform 454 inspections for owners of site-built, single-family, residential 455 properties and grants to eligible applicants as funding allows. 456 The program shall develop and implement a comprehensive and 457 coordinated approach for hurricane damage mitigation that may 458 include the following: 459 (2) MITIGATION GRANTS.—Financial grants shall be used to 460 encourage single-family, site-built, owner-occupied, residential 461 property owners to retrofit their properties to make them less 462 vulnerable to hurricane damage. 463 (a) For a homeowner to be eligible for a grant, the 464 following criteria must be met: 465 1. The homeowner must have been granted a homestead 466 exemption on the home under chapter 196. 467 2. The home must be a dwelling with an insured value of 468 $500,000$300,000or less. Homeowners who are low-income 469 persons, as defined in s. 420.0004(11), are exempt from this 470 requirement. 471 3. The home must have undergone an acceptable hurricane 472 mitigation inspection after July 1, 2008May 1, 2007. 473 4. The home must be located in the “wind-borne debris 474 region” as that term is defined in the Florida Building Codes.4751609.2, International Building Code (2006), or as subsequently476amended. 477 5. The building permit application for initial construction 478 of the home must have been made before January 1, 2008March 1,4792002. 480 6. The homeowner must agree to make his or her home 481 available for inspection once a mitigation project is completed. 482 483 An application for a grant must contain a signed or 484 electronically verified statement made under penalty of perjury 485 that the applicant has submitted only a single application and 486 must have attached documents demonstrating the applicant meets 487 the requirements of this paragraph. 488 (b) All grants must be matched on the basis of $1 provided 489 by the applicant for $2 provided by the statea dollar-for490dollar basisup to a maximum state contributiontotalof $10,000 491 towardforthe actual cost of the mitigation projectwith the492state’s contribution not to exceed $5,000. 493 (10) REPORTS.—The department shall make an annual report on 494 the activities of the program that shall account for the use of 495 state funds and indicate the number of inspections requested, 496 the number of inspections performed, the number of grant 497 applications received,andthe number and value of grants 498 approved, and the average annual amount of insurance premium 499 discounts and total annual amount of insurance premium discounts 500 homeowners received from insurers as a result of mitigation 501 funded through the program. The report shall be delivered to the 502 President of the Senate and the Speaker of the House of 503 Representatives by February 1 of each year. 504 Section 4. (1) For the 2022-2023 fiscal year, the sum of 505 $150 million in nonrecurring funds is appropriated from the 506 General Revenue Fund to the Department of Financial Services for 507 the My Safe Florida Home Program. The funds shall be placed in 508 reserve. The department shall submit budget amendments 509 requesting release of the funds held in reserve pursuant to 510 chapter 216, Florida Statutes. The budget amendments shall 511 include a detailed spending plan. 512 (2) The funds shall be allocated as follows: 513 (a) Twenty-five million dollars for hurricane mitigation 514 inspections. 515 (b) One hundred fifteen million dollars for mitigation 516 grants. 517 (c) Four million dollars for education and consumer 518 awareness. 519 (d) One million dollars for public outreach for contractors 520 and real estate brokers and sales associates. 521 (e) Five million dollars for administrative costs. 522 (3) Any unexpended balance of funds from this appropriation 523 remaining on June 30, 2023, shall revert and is appropriated to 524 the Department of Financial Services for the 2023-2024 fiscal 525 year for the same purpose. 526 (4) This section shall expire on October 1, 2024. 527 Section 5. Paragraph (a) of subsection (1) of section 528 489.147, Florida Statutes, is amended to read: 529 489.147 Prohibited property insurance practices.— 530 (1) As used in this section, the term: 531 (a) “Prohibited advertisement” means any written or 532 electronic communication by a contractor whichthatencourages, 533 instructs, or induces a consumer to contact a contractor or 534 public adjuster for the purpose of making an insurance claim for 535 roof damage, if such communication does not state in a font size 536 of at least 12 points and at least half as large as the largest 537 font size used in the communication that: 538 1. The consumer is responsible for payment of any insurance 539 deductible; 540 2. It is insurance fraud punishable as a felony of the 541 third degree for a contractor to knowingly or willfully, and 542 with intent to injure, defraud, or deceive, pay, waive, or 543 rebate all or part of an insurance deductible applicable to 544 payment to the contractor for repairs to a property covered by a 545 property insurance policy; and 546 3. It is insurance fraud punishable as a felony of the 547 third degree to intentionally file an insurance claim containing 548 any false, incomplete, or misleading information. 549 550 The term includes, but is not limited to, door hangers, business 551 cards, magnets, flyers, pamphlets, and e-mails. 552 Section 6. Section 624.1551, Florida Statutes, is created 553 to read: 554 624.1551 Civil remedy actions against property insurers. 555 Notwithstanding any provision of s. 624.155, a claimant must 556 establish that the property insurer breached the insurance 557 contract to prevail in a claim for extracontractual damages 558 under s. 624.155(1)(b). 559 Section 7. Subsection (4) of section 624.307, Florida 560 Statutes, is amended to read: 561 624.307 General powers; duties.— 562 (4) The department and office may each collect, propose, 563 publish, and disseminate information relating to the subject 564 matter of any duties imposed upon it by law. 565 (a) Aggregate information may include information asserted 566 as trade secret information unless the trade secret information 567 can be individually extrapolated, in which case the trade secret 568 information remains protected as provided under s. 624.4213. 569 (b) The office shall publish all orders, data required by 570 s. 627.915(2), reports required by s. 627.7154(3), and all 571 reports that are not confidential and exempt on its website in a 572 timely fashion. 573 Section 8. Paragraph (j) of subsection (1) of section 574 624.313, Florida Statutes, is amended to read: 575 624.313 Publications.— 576 (1) As early as reasonably possible, the office shall 577 annually have printed and made available a statistical report 578 which must include all of the following information on either a 579 calendar year or fiscal year basis: 580 (j) An analysis of such lines or kinds of insurance for 581 which the office determines that an availability problem exists 582 in this state, and an analysis of the availability of 583 reinsurance to domestic insurers selling homeowners’ and 584 condominium unit owners’ insurance in this state. 585 Section 9. Paragraph (c) of subsection (1) and paragraph 586 (n) of subsection (2) of section 624.315, Florida Statutes, are 587 amended to read: 588 624.315 Department; annual report.— 589 (1) As early as reasonably possible, the office, with such 590 assistance from the department as requested, shall annually 591 prepare a report to the Speaker and Minority Leader of the House 592 of Representatives, the President and Minority Leader of the 593 Senate, the chairs of the legislative committees with 594 jurisdiction over matters of insurance, and the Governor 595 showing, with respect to the preceding calendar year: 596 (c) Names of insurers against which delinquency or similar 597 proceedings were instituted.,For property insurers for which 598 the delinquency or similar proceedings were instituted, the 599 annual report must also include the date that each insurer was 600 deemed impaired of capital or surplus, as the terms impairment 601 of capital and impairment of surplus are defined in s. 631.011, 602 or insolvent, as the term insolvency is defined in s. 631.011; 603anda concise statement of the circumstances that led to each 604 insurer’s delinquency; a summary of the actions taken by the 605 insurer and the office to avoid delinquency; and the results or 606 status of each such proceeding. 607 (2) The office shall maintain the following information and 608 make such information available upon request: 609 (n) Trends; emerging trends as exemplified by the 610 percentage change in frequency and severity of both paid and 611 incurred claims, and pure premium (Florida and countrywide). 612 Reports relating to the health of the homeowners’ and 613 condominium unit owners’ insurance market must include the 614 percentage of policies written by voluntary carriers, the 615 percentage of policies written by the Citizens Property 616 Insurance Corporation, and any trends related to the relative 617 shares of the voluntary and residual markets. 618 Section 10. Subsection (10) of section 624.424, Florida 619 Statutes, is amended to read: 620 624.424 Annual statement and other information.— 621 (10)(a) Each insurer or insurer group doing business in 622 this state shall file on a quarterly basis in conjunction with 623 financial reports required by paragraph (1)(a) a supplemental 624 report on an individual and group basis on a form prescribed by 625 the commission with information on personal lines and commercial 626 lines residential property insurance policies in this state. The 627 supplemental report shall include separate information for 628 personal lines property policies and for commercial lines 629 property policies and totals for each item specified, including 630 premiums written for each of the property lines of business as 631 described in ss. 215.555(2)(c) and 627.351(6)(a). The report 632 shall include the following information for each county on a 633 monthly basis: 634 1.(a)Total number of policies in force at the end of each 635 month. 636 2.(b)Total number of policies canceled. 637 3.(c)Total number of policies nonrenewed. 638 4.(d)Number of policies canceled due to hurricane risk. 639 5.(e)Number of policies nonrenewed due to hurricane risk. 640 6.(f)Number of new policies written. 641 7.(g)Total dollar value of structure exposure under 642 policies that include wind coverage. 643 8.(h)Number of policies that exclude wind coverage. 644 (b) The office shall aggregate on a statewide basis the 645 data submitted by each insurer or insurer group under paragraph 646 (a) and make such data publicly available by publishing such 647 data on the office’s website within 1 month after each quarterly 648 and annual filing. Such information, when aggregated on a 649 statewide basis as to an individual insurer or insurer group, is 650 not a trade secret as defined in s. 688.002(4) or s. 812.081 and 651 is not subject to the public records exemption for trade secrets 652 provided in s. 119.0715. 653 Section 11. Section 626.9373, Florida Statutes, is amended 654 to read: 655 626.9373 Attorney fees.— 656 (1) Upon the rendition of a judgment or decree by any court 657 of this state against a surplus lines insurer in favor of any 658 named or omnibus insured or the named beneficiary under a policy 659 or contract executed by the insurer on or after the effective 660 date of this act, the trial court or, if the insured or 661 beneficiary prevails on appeal, the appellate court, shall 662 adjudge or decree against the insurer in favor of the insured or 663 beneficiary a reasonable sum as fees or compensation for the 664 insured’s or beneficiary’s attorney prosecuting the lawsuit for 665 which recovery is awarded. In a suit arising under a residential 666 or commercial property insurance policynot brought by an667assignee, the amount of reasonable attorney fees shall be 668 awarded only as provided in s. 57.105 or s. 627.70152, as 669 applicable. 670 (2) If awarded, attorney fees or compensation shall be 671 included in the judgment or decree rendered in the case. 672 (3) In a suit arising under a residential or commercial 673 property insurance policy, the right to attorney fees under this 674 section may not be transferred to, assigned to, or acquired in 675 any other manner by anyone other than a named or omnibus insured 676 or a named beneficiary. 677 Section 12. Section 627.428, Florida Statutes, is amended 678 to read: 679 627.428 Attorney fees.— 680 (1) Upon the rendition of a judgment or decree by any of 681 the courts of this state against an insurer and in favor of any 682 named or omnibus insured or the named beneficiary under a policy 683 or contract executed by the insurer, the trial court or, in the 684 event of an appeal in which the insured or beneficiary prevails, 685 the appellate court shall adjudge or decree against the insurer 686 and in favor of the insured or beneficiary a reasonable sum as 687 fees or compensation for the insured’s or beneficiary’s attorney 688 prosecuting the suit in which the recovery is had. In a suit 689 arising under a residential or commercial property insurance 690 policynot brought by an assignee, the amount of reasonable 691 attorney fees shall be awarded only as provided in s. 57.105 or 692 s. 627.70152, as applicable. 693 (2) As to suits based on claims arising under life 694 insurance policies or annuity contracts, no such attorney fees 695 shall be allowed if such suit was commenced prior to expiration 696 of 60 days after proof of the claim was duly filed with the 697 insurer. 698 (3) When so awarded, compensation or fees of the attorney 699 shall be included in the judgment or decree rendered in the 700 case. 701 (4) In a suit arising under a residential or commercial 702 property insurance policy, the right to attorney fees under this 703 section may not be transferred to, assigned to, or acquired in 704 any other manner by anyone other than a named or omnibus insured 705 or a named beneficiary. 706 Section 13. Paragraph (d) of subsection (4) of section 707 627.701, Florida Statutes, is amended, paragraph (c) of 708 subsection (2), paragraph (e) of subsection (4), and subsection 709 (10) are added to that section, and subsection (7) of that 710 section is republished, to read: 711 627.701 Liability of insureds; coinsurance; deductibles.— 712 (2) Unless the office determines that the deductible 713 provision is clear and unambiguous, a property insurer may not 714 issue an insurance policy or contract covering real property in 715 this state which contains a deductible provision that: 716 (c) Applies solely to a roof loss as provided in subsection 717 (10). 718 (4) 719 (d)1. A personal lines residential property insurance 720 policy covering a risk valued at less than $500,000 may not have 721 a hurricane deductible in excess of 10 percent of the policy 722 dwelling limits, unless the following conditions are met: 723 a. The policyholder must personally write or type and 724 provide to the insurer the following statementin his or her own725handwritingand sign his or her name, which must also be signed 726 by every other named insured on the policy, and dated: “I do not 727 want the insurance on my home to pay for the first (specify 728 dollar value) of damage from hurricanes. I will pay those costs. 729 My insurance will not.” 730 b. If the structure insured by the policy is subject to a 731 mortgage or lien, the policyholder must provide the insurer with 732 a written statement from the mortgageholder or lienholder 733 indicating that the mortgageholder or lienholder approves the 734 policyholder electing to have the specified deductible. 735 2. A deductible subject to the requirements of this 736 paragraph applies for the term of the policy and for each 737 renewal thereafter. Changes to the deductible percentage may be 738 implemented only as of the date of renewal. 739 3. An insurer shall keep the original copy of the signed 740 statement required by this paragraph, electronically or 741 otherwise, and provide a copy to the policyholder providing the 742 signed statement. A signed statement meeting the requirements of 743 this paragraph creates a presumption that there was an informed, 744 knowing election of coverage. 745 4. The commission shall adopt rules providing appropriate 746 alternative methods for providing the statements required by 747 this section for policyholders who have a handicapping or 748 disabling condition that prevents them from providing a 749 handwritten statement. 750 (e)1. A personal lines residential property insurance 751 policy that contains a separate roof deductible must include, on 752 the page immediately behind the declarations page, with no other 753 policy language on the page, in boldfaced type no smaller than 754 18 point, the following statement: “YOU ARE ELECTING TO PURCHASE 755 COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR 756 ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT-OF 757 POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE 758 AGENT.” 759 2. For any personal lines residential property insurance 760 policy containing a separate roof deductible, the insurer shall 761 compute and prominently display on the declarations page of the 762 policy or on the premium renewal notice the actual dollar value 763 of the roof deductible of the policy at issuance and renewal. 764 (7) Prior to issuing a personal lines residential property 765 insurance policy on or after April 1, 1997, or prior to the 766 first renewal of a residential property insurance policy on or 767 after April 1, 1997, the insurer must offer a deductible equal 768 to $500 applicable to losses from perils other than hurricane. 769 The insurer must provide the policyholder with notice of the 770 availability of the deductible specified in this subsection in a 771 form approved by the office at least once every 3 years. The 772 failure to provide such notice constitutes a violation of this 773 code but does not affect the coverage provided under the policy. 774 An insurer may require a higher deductible only as part of a 775 deductible program lawfully in effect on June 1, 1996, or as 776 part of a similar deductible program. 777 (10)(a) Notwithstanding any other provision of law, an 778 insurer issuing a personal lines residential property insurance 779 policy may include in such policy a separate roof deductible 780 that meets all of the following requirements: 781 1. The insurer has complied with the offer requirements 782 under subsection (7) regarding a deductible applicable to losses 783 from perils other than a hurricane. 784 2. The roof deductible may not exceed the lesser of 2 785 percent of the coverage A limit of the policy or 50 percent of 786 the cost to replace the roof. 787 3. The premium that a policyholder is charged for the 788 policy includes an actuarially sound credit or premium discount 789 for the roof deductible. 790 4. The roof deductible applies only to a claim adjusted on 791 a replacement cost basis. 792 5. The roof deductible does not apply to any of the 793 following events: 794 a. A total loss to a primary structure in accordance with 795 the valued policy law under s. 627.702 which is caused by a 796 covered peril. 797 b. A roof loss resulting from a hurricane as defined in s. 798 627.4025(2)(c). 799 c. A roof loss resulting from a tree fall or other hazard 800 that damages the roof and punctures the roof deck. 801 d. A roof loss requiring the repair of less than 50 percent 802 of the roof. 803 804 If a roof deductible is applied, no other deductible under the 805 policy may be applied to the loss. 806 (b) At the time of initial issuance of a personal lines 807 residential property insurance policy, an insurer may offer the 808 policyholder a separate roof deductible with the ability to opt 809 out and reject the separate roof deductible. To reject a 810 separate roof deductible, the policyholder shall sign a form 811 approved by the office. 812 (c) At the time of renewal, an insurer may add a separate 813 roof deductible to a personal lines residential property 814 insurance policy if the insurer provides a notice of change in 815 policy terms pursuant to s. 627.43141. The insurer must also 816 offer the policyholder the ability to opt-out and reject the 817 separate roof deductible. To reject a separate roof deductible, 818 the policyholder shall sign a form approved by the office. 819 (d) The office shall expedite the review of any filing of 820 insurance forms that only contain a separate roof deductible 821 pursuant to this subsection. The commission may adopt model 822 forms or guidelines that provide options for roof deductible 823 language which may be used for filing by insurers. If an insurer 824 makes a filing pursuant to a model form or guideline issued by 825 the office, the office must review the filing within the initial 826 30-day review period authorized by s. 627.410(2), and the roof 827 deductible portion of the filing is not subject to the 15-day 828 extension for review under that subsection. 829 Section 14. Present subsection (5) of section 627.7011, 830 Florida Statutes, is redesignated as subsection (6), a new 831 subsection (5) is added to that section, and paragraph (a) of 832 subsection (3) of that section is amended, to read: 833 627.7011 Homeowners’ policies; offer of replacement cost 834 coverage and law and ordinance coverage.— 835 (3) In the event of a loss for which a dwelling or personal 836 property is insured on the basis of replacement costs: 837 (a) For a dwelling, the insurer must initially pay at least 838 the actual cash value of the insured loss, less any applicable 839 deductible. The insurer shall pay any remaining amounts 840 necessary to perform such repairs as work is performed and 841 expenses are incurred. However, if a roof deductible under s. 842 627.701(10) is applied to the insured loss, the insurer may 843 limit the claim payment as to the roof to the actual cash value 844 of the loss to the roof until the insurer receives reasonable 845 proof of payment by the policyholder of the roof deductible. 846 Reasonable proof of payment includes a canceled check, money 847 order receipt, credit card statement, or copy of an executed 848 installment plan contract or other financing arrangement that 849 requires full payment of the deductible over time. If a total 850 loss of a dwelling occurs, the insurer mustshallpay the 851 replacement cost coverage without reservation or holdback of any 852 depreciation in value, pursuant to s. 627.702. 853 (5)(a) As used in this subsection, the term “authorized 854 inspector” means an inspector who is approved by the insurer and 855 who is: 856 1. A home inspector licensed under s. 468.8314; 857 2. A building code inspector certified under s. 468.607; 858 3. A general, building, or residential contractor licensed 859 under s. 489.111; 860 4. A professional engineer licensed under s. 471.015; 861 5. A professional architect licensed under s. 481.213; or 862 6. Any other individual or entity recognized by the insurer 863 as possessing the necessary qualifications to properly complete 864 a general inspection of a residential structure insured with a 865 homeowner’s insurance policy. 866 (b) An insurer may not refuse to issue or refuse to renew a 867 homeowner’s policy insuring a residential structure with a roof 868 that is less than 15 years old solely because of the age of the 869 roof. 870 (c) For a roof that is at least 15 years old, an insurer 871 must allow a homeowner to have a roof inspection performed by an 872 authorized inspector at the homeowner’s expense before requiring 873 the replacement of the roof of a residential structure as a 874 condition of issuing or renewing a homeowner’s insurance policy. 875 The insurer may not refuse to issue or refuse to renew a 876 homeowner’s insurance policy solely because of roof age if an 877 inspection of the roof of the residential structure performed by 878 an authorized inspector indicates that the roof has 5 years or 879 more of useful life remaining. 880 (d) This subsection applies to homeowners’ insurance 881 policies issued or renewed on or after July 1, 2022. 882 Section 15. Effective January 1, 2023, subsection (3) and 883 paragraph (a) of subsection (7) of section 627.70131, Florida 884 Statutes, are amended to read: 885 627.70131 Insurer’s duty to acknowledge communications 886 regarding claims; investigation.— 887 (3)(a) Unless otherwise provided by the policy of insurance 888 or by law, within 14 days after an insurer receives proof of 889 loss statements, the insurer shall begin such investigation as 890 is reasonably necessary unless the failure to begin such 891 investigation is caused by factors beyond the control of the 892 insurer which reasonably prevent the commencement of such 893 investigation. 894 (b) If such investigation involves a physical inspection of 895 the property, the licensed adjuster assigned by the insurer must 896 provide the policyholder with a printed or electronic document 897 containing his or her name and state adjuster license number. 898 For claims other than those subject to a hurricane deductible, 899 an insurer must conduct any such physical inspection within 45 900 days after its receipt of the proof of loss statements. 901 (c) Any subsequent communication with the policyholder 902 regarding the claim must also include the name and license 903 number of the adjuster communicating about the claim. 904 Communication of the adjuster’s name and license number may be 905 included with other information provided to the policyholder. 906 (d) Within 7 days after the insurer’s assignment of an 907 adjuster to the claim, the insurer must notify the policyholder 908 that he or she may request a copy of any detailed estimate of 909 the amount of the loss generated by an insurer’s adjuster. After 910 receiving such a request from the policyholder, the insurer must 911 send any such detailed estimate to the policyholder within the 912 later of 7 days after the insurer received the request or 7 days 913 after the detailed estimate of the amount of the loss is 914 completed. This paragraph does not require that an insurer 915 create a detailed estimate of the amount of the loss if such 916 estimate is not reasonably necessary as part of the claim 917 investigation. 918 (7)(a) Within 90 days after an insurer receives notice of 919 an initial, reopened, or supplemental property insurance claim 920 from a policyholder, the insurer shall pay or deny such claim or 921 a portion of the claim unless the failure to pay is caused by 922 factors beyond the control of the insurer which reasonably 923 prevent such payment. The insurer shall provide a reasonable 924 explanation in writing to the policyholder of the basis in the 925 insurance policy, in relation to the facts or applicable law, 926 for the payment, denial, or partial denial of a claim. If the 927 insurer’s claim payment is less than specified in any insurer’s 928 detailed estimate of the amount of the loss, the insurer must 929 provide a reasonable explanation in writing of the difference to 930 the policyholder. Any payment of an initial or supplemental 931 claim or portion of such claim made 90 days after the insurer 932 receives notice of the claim, or made more than 15 days after 933 there are no longer factors beyond the control of the insurer 934 which reasonably prevented such payment, whichever is later, 935 bears interest at the rate set forth in s. 55.03. Interest 936 begins to accrue from the date the insurer receives notice of 937 the claim. The provisions of this subsection may not be waived, 938 voided, or nullified by the terms of the insurance policy. If 939 there is a right to prejudgment interest, the insured mustshall940 select whether to receive prejudgment interest or interest under 941 this subsection. Interest is payable when the claim or portion 942 of the claim is paid. Failure to comply with this subsection 943 constitutes a violation of this code. However, failure to comply 944 with this subsection does not form the sole basis for a private 945 cause of action. 946 Section 16. Paragraph (d) of subsection (2) and subsection 947 (8) of section 627.70152, Florida Statutes, are amended to read: 948 627.70152 Suits arising under a property insurance policy.— 949 (2) DEFINITIONS.—As used in this section, the term: 950 (d) “Presuit settlement demand” means the demand made by 951 the claimant in the written notice of intent to initiate 952 litigation as required by paragraph (3)(a)(3)(e). The demand 953 must include the amount of reasonable and necessary attorney 954 fees and costs incurred by the claimant, to be calculated by 955 multiplying the number of hours actually worked on the claim by 956 the claimant’s attorney as of the date of the notice by a 957 reasonable hourly rate. 958 (8) ATTORNEY FEES.— 959 (a) In a suit arising under a residential or commercial 960 property insurance policy not brought by an assignee, the amount 961 of reasonable attorney fees and costs under s. 626.9373(1) or s. 962 627.428(1) shall be calculated and awarded as follows: 963 1. If the difference between the amount obtained by the 964 claimant and the presuit settlement offer, excluding reasonable 965 attorney fees and costs, is less than 20 percent of the disputed 966 amount, each party pays its own attorney fees and costs and a 967 claimant may not be awarded attorney fees under s. 626.9373(1) 968 or s. 627.428(1). 969 2. If the difference between the amount obtained by the 970 claimant and the presuit settlement offer, excluding reasonable 971 attorney fees and costs, is at least 20 percent but less than 50 972 percent of the disputed amount, the insurer pays the claimant’s 973 attorney fees and costs under s. 626.9373(1) or s. 627.428(1) 974 equal to the percentage of the disputed amount obtained times 975 the total attorney fees and costs. 976 3. If the difference between the amount obtained by the 977 claimant and the presuit settlement offer, excluding reasonable 978 attorney fees and costs, is at least 50 percent of the disputed 979 amount, the insurer pays the claimant’s full attorney fees and 980 costs under s. 626.9373(1) or s. 627.428(1). 981 (b) In a suit arising under a residential or commercial 982 property insurance policy not brought by an assignee, if a court 983 dismisses a claimant’s suit pursuant to subsection (5), the 984 court may not award to the claimant any incurred attorney fees 985 for services rendered before the dismissal of the suit. When a 986 claimant’s suit is dismissed pursuant to subsection (5), the 987 court may award to the insurer reasonable attorney fees and 988 costs associated with securing the dismissal. 989 (c) In awarding attorney fees under this subsection, a 990 strong presumption is created that a lodestar fee is sufficient 991 and reasonable. Such presumption may be rebutted only in a rare 992 and exceptional circumstance with evidence that competent 993 counsel could not be retained in a reasonable manner. 994 Section 17. Section 627.7142, Florida Statutes, is amended 995 to read: 996 627.7142 Homeowner Claims Bill of Rights.—An insurer 997 issuing a personal lines residential property insurance policy 998 in this state must provide a Homeowner Claims Bill of Rights to 999 a policyholder within 14 days after receiving an initial 1000 communication with respect to a claim. The purpose of the bill 1001 of rights is to summarize, in simple, nontechnical terms, 1002 existing Florida law regarding the rights of a personal lines 1003 residential property insurance policyholder who files a claim of 1004 loss. The Homeowner Claims Bill of Rights is specific to the 1005 claims process and does not represent all of a policyholder’s 1006 rights under Florida law regarding the insurance policy. The 1007 Homeowner Claims Bill of Rights does not create a civil cause of 1008 action by any individual policyholder or class of policyholders 1009 against an insurer or insurers. The failure of an insurer to 1010 properly deliver the Homeowner Claims Bill of Rights is subject 1011 to administrative enforcement by the office but is not 1012 admissible as evidence in a civil action against an insurer. The 1013 Homeowner Claims Bill of Rights does not enlarge, modify, or 1014 contravene statutory requirements, including, but not limited 1015 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, 1016 and does not prohibit an insurer from exercising its right to 1017 repair damaged property in compliance with the terms of an 1018 applicable policy or ss. 627.7011(6)(e)627.7011(5)(e)and 1019 627.702(7). The Homeowner Claims Bill of Rights must state: 1020 1021 HOMEOWNER CLAIMS 1022 BILL OF RIGHTS 1023 This Bill of Rights is specific to the claims process 1024 and does not represent all of your rights under 1025 Florida law regarding your policy. There are also 1026 exceptions to the stated timelines when conditions are 1027 beyond your insurance company’s control. This document 1028 does not create a civil cause of action by an 1029 individual policyholder, or a class of policyholders, 1030 against an insurer or insurers and does not prohibit 1031 an insurer from exercising its right to repair damaged 1032 property in compliance with the terms of an applicable 1033 policy. 1034 1035 YOU HAVE THE RIGHT TO: 1036 1. Receive from your insurance company an 1037 acknowledgment of your reported claim within 14 days 1038 after the time you communicated the claim. 1039 2. Upon written request, receive from your 1040 insurance company within 30 days after you have 1041 submitted a complete proof-of-loss statement to your 1042 insurance company, confirmation that your claim is 1043 covered in full, partially covered, or denied, or 1044 receive a written statement that your claim is being 1045 investigated. 1046 3. Within 90 days, subject to any dual interest 1047 noted in the policy, receive full settlement payment 1048 for your claim or payment of the undisputed portion of 1049 your claim, or your insurance company’s denial of your 1050 claim. 1051 4. Receive payment of interest, as provided in s. 1052 627.70131, Florida Statutes, from your insurance 1053 company, which begins accruing from the date your 1054 claim is filed if your insurance company does not pay 1055 full settlement of your initial, reopened, or 1056 supplemental claim or the undisputed portion of your 1057 claim or does not deny your claim within 90 days after 1058 your claim is filed. The interest, if applicable, must 1059 be paid when your claim or the undisputed portion of 1060 your claim is paid. 1061 5. Free mediation of your disputed claim by the 1062 Florida Department of Financial Services, Division of 1063 Consumer Services, under most circumstances and 1064 subject to certain restrictions. 1065 6. Neutral evaluation of your disputed claim, if 1066 your claim is for damage caused by a sinkhole and is 1067 covered by your policy. 1068 7. Contact the Florida Department of Financial 1069 Services, Division of Consumer Services’ toll-free 1070 helpline for assistance with any insurance claim or 1071 questions pertaining to the handling of your claim. 1072 You can reach the Helpline by phone at ...(toll-free 1073 phone number)..., or you can seek assistance online at 1074 the Florida Department of Financial Services, Division 1075 of Consumer Services’ website at ...(website 1076 address).... 1077 1078 YOU ARE ADVISED TO: 1079 1. File all claims directly with your insurance 1080 company. 1081 2. Contact your insurance company before entering 1082 into any contract for repairs to confirm any managed 1083 repair policy provisions or optional preferred 1084 vendors. 1085 3. Make and document emergency repairs that are 1086 necessary to prevent further damage. Keep the damaged 1087 property, if feasible, keep all receipts, and take 1088 photographs or video of damage before and after any 1089 repairs to provide to your insurer. 1090 4. Carefully read any contract that requires you 1091 to pay out-of-pocket expenses or a fee that is based 1092 on a percentage of the insurance proceeds that you 1093 will receive for repairing or replacing your property. 1094 5. Confirm that the contractor you choose is 1095 licensed to do business in Florida. You can verify a 1096 contractor’s license and check to see if there are any 1097 complaints against him or her by calling the Florida 1098 Department of Business and Professional Regulation. 1099 You should also ask the contractor for references from 1100 previous work. 1101 6. Require all contractors to provide proof of 1102 insurance before beginning repairs. 1103 7. Take precautions if the damage requires you to 1104 leave your home, including securing your property and 1105 turning off your gas, water, and electricity, and 1106 contacting your insurance company and provide a phone 1107 number where you can be reached. 1108 Section 18. Subsection (1), paragraph (a) of subsection 1109 (2), subsection (8), paragraph (a) of subsection (9), and 1110 subsection (10) of section 627.7152, Florida Statutes, are 1111 amended to read: 1112 627.7152 Assignment agreements.— 1113 (1) As used in this section, the term: 1114 (a) “Assignee” means a person who is assigned post-loss 1115 benefits through an assignment agreement. 1116 (b) “Assignment agreement” means any instrument by which 1117 post-loss benefits under a residential property insurance policy 1118 or commercial property insurance policy, as that term is defined 1119 in s. 627.0625(1), are assigned or transferred, or acquired in 1120 any manner, in whole or in part, to or from a person providing 1121 services, including, but not limited to, inspecting, protecting, 1122 repairing, restoring, or replacing theto protect, repair,1123restore, or replaceproperty or mitigatingto mitigateagainst 1124 further damage to the property. The term does not include fees 1125 collected by a public adjuster as defined in s. 626.854(1). 1126 (c) “Assignor” means a person who assigns post-loss 1127 benefits under a residential property insurance policy or 1128 commercial property insurance policy to another person through 1129 an assignment agreement. 1130 (d)“Disputed amount” means the difference between the1131assignee’s presuit settlement demand and the insurer’s presuit1132settlement offer.1133(e) “Judgment obtained” means damages recovered, if any,1134but does not include any amount awarded for attorney fees,1135costs, or interest.1136(f)“Presuit settlement demand” means the demand made by 1137 the assignee in the written notice of intent to initiate 1138 litigation as required by paragraph (9)(a). 1139 (e)(g)“Presuit settlement offer” means the offer made by 1140 the insurer in its written response to the notice of intent to 1141 initiate litigation as required by paragraph (9)(b). 1142 (2)(a) An assignment agreement must: 1143 1. Be in writing and executed by and between the assignor 1144 and the assignee. 1145 2. Contain a provision that allows the assignor to rescind 1146 the assignment agreement without a penalty or fee by submitting 1147 a written notice of rescission signed by the assignor to the 1148 assignee within 14 days after the execution of the agreement, at 1149 least 30 days after the date work on the property is scheduled 1150 to commence if the assignee has not substantially performed, or 1151 at least 30 days after the execution of the agreement if the 1152 agreement does not contain a commencement date and the assignee 1153 has not begun substantial work on the property. 1154 3. Contain a provision requiring the assignee to provide a 1155 copy of the executed assignment agreement to the insurer within 1156 3 business days after the date on which the assignment agreement 1157 is executed or the date on which work begins, whichever is 1158 earlier. Delivery of the copy of the assignment agreement to the 1159 insurer may be made: 1160 a. By personal service, overnight delivery, or electronic 1161 transmission, with evidence of delivery in the form of a receipt 1162 or other paper or electronic acknowledgment by the insurer; or 1163 b. To the location designated for receipt of such 1164 agreements as specified in the policy. 1165 4. Contain a written, itemized, per-unit cost estimate of 1166 the services to be performed by the assignee. 1167 5. Relate only to work to be performed by the assignee for 1168 services to protect, repair, restore, or replace a dwelling or 1169 structure or to mitigate against further damage to such 1170 property. 1171 6. Contain the following notice in 18-point uppercase and 1172 boldfaced type: 1173 1174 YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE 1175 UNDER YOUR INSURANCE POLICY TO A THIRD PARTY, WHICH 1176 MAY RESULT IN LITIGATION AGAINST YOUR INSURER. PLEASE 1177 READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING IT. 1178 YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT 1179 PENALTY WITHIN 14 DAYS AFTER THE DATE THIS AGREEMENT 1180 IS EXECUTED, AT LEAST 30 DAYS AFTER THE DATE WORK ON 1181 THE PROPERTY IS SCHEDULED TO COMMENCE IF THE ASSIGNEE 1182 HAS NOT SUBSTANTIALLY PERFORMED, OR AT LEAST 30 DAYS 1183 AFTER THE EXECUTION OF THE AGREEMENT IF THE AGREEMENT 1184 DOES NOT CONTAIN A COMMENCEMENT DATE AND THE ASSIGNEE 1185 HAS NOT BEGUN SUBSTANTIAL WORK ON THE PROPERTY. 1186 HOWEVER, YOU ARE OBLIGATED FOR PAYMENT OF ANY 1187 CONTRACTED WORK PERFORMED BEFORE THE AGREEMENT IS 1188 RESCINDED. THIS AGREEMENT DOES NOT CHANGE YOUR 1189 OBLIGATION TO PERFORM THE DUTIES REQUIRED UNDER YOUR 1190 PROPERTY INSURANCE POLICY. 1191 1192 7. Contain a provision requiring the assignee to indemnify 1193 and hold harmless the assignor from all liabilities, damages, 1194 losses, and costs, including, but not limited to, attorney fees,1195should the policy subject to the assignment agreement prohibit,1196in whole or in part, the assignment of benefits. 1197 (8) The assignee shall indemnify and hold harmless the 1198 assignor from all liabilities, damages, losses, and costs, 1199 including, but not limited to, attorney fees, should the policy1200subject to the assignment agreement prohibit, in whole or in1201part, the assignment of benefits. 1202 (9)(a) An assignee must provide the named insured, insurer, 1203 and the assignor, if not the named insured, with a written 1204 notice of intent to initiate litigation before filing suit under 1205 the policy. Such notice must be served at least 10 business days 1206 before filing suit, but not before the insurer has made a 1207 determination of coverage under s. 627.70131. The notice must be 1208 served by certified mail, return receipt requested, to the name 1209 and mailing address designated by the insurer in the policy 1210 forms or by electronic delivery to the e-mail address designated 1211 by the insurer in the policy formsat least 10 business days1212before filing suit, but may not be served before the insurer has1213made a determination of coverage under s. 627.70131. The notice 1214 must specify the damages in dispute, the amount claimed, and a 1215 presuit settlement demand. Concurrent with the notice, and as a 1216 precondition to filing suit, the assignee must provide the named 1217 insured, insurer, and the assignor, if not the named insured, a 1218 detailed written invoice or estimate of services, including 1219 itemized information on equipment, materials, and supplies; the 1220 number of labor hours; and, in the case of work performed, proof 1221 that the work has been performed in accordance with accepted 1222 industry standards. 1223 (10) Notwithstanding any other provision of law, in a suit 1224 related to an assignment agreement for post-loss claims arising 1225 under a residential or commercial property insurance policy, 1226 attorney fees and costs may be recovered by an assignee only 1227 under s. 57.105and this subsection. 1228(a) If the difference between the judgment obtained by the1229assignee and the presuit settlement offer is:12301. Less than 25 percent of the disputed amount, the insurer1231is entitled to an award of reasonable attorney fees.12322. At least 25 percent but less than 50 percent of the1233disputed amount, no party is entitled to an award of attorney1234fees.12353. At least 50 percent of the disputed amount, the assignee1236is entitled to an award of reasonable attorney fees.1237(b) If the insurer fails to inspect the property or provide1238written or oral authorization for repairs within 7 calendar days1239after the first notice of loss, the insurer waives its right to1240an award of attorney fees under this subsection. If the failure1241to inspect the property or provide written or oral authorization1242for repairs is the result of an event for which the Governor had1243declared a state of emergency under s. 252.36, factors beyond1244the control of the insurer which reasonably prevented an1245inspection or written or oral authorization for repairs, or the1246named insured’s failure or inability to allow an inspection of1247the property after a request by the insurer, the insurer does1248not waive its right to an award of attorney fees under this1249subsection.1250(c)If an assignee commences an action in any court of this 1251 state based upon or including the same claim against the same 1252 adverse party that such assignee has previously voluntarily 1253 dismissed in a court of this state, the court may order the 1254 assignee to pay the attorney fees and costs of the adverse party 1255 resulting from the action previously voluntarily dismissed. The 1256 court shall stay the proceedings in the subsequent action until 1257 the assignee has complied with the order. 1258 Section 19. Section 627.7154, Florida Statutes, is created 1259 to read: 1260 627.7154 Property Insurer Stability Unit; duties and 1261 required reports.— 1262 (1) A property insurer stability unit is created within the 1263 office to aid in the detection and prevention of insurer 1264 insolvencies in the homeowners’ and condominium unit owners’ 1265 insurance market. The following responsibilities are limited 1266 only to matters related to homeowners’ and condominium unit 1267 owners’ insurance. 1268 (2) The insurer stability unit shall provide enhanced 1269 monitoring whenever the office identifies significant concerns 1270 about an insurer’s solvency, rates, proposed contracts, 1271 underwriting rules, market practices, claims handling, consumer 1272 complaints, litigation practices and outcomes, and any other 1273 issue related to compliance with the insurance code. 1274 (3) The insurer stability unit shall, at a minimum: 1275 (a) Conduct a target market exam when there is reason to 1276 believe that an insurer’s claims practices, rate requirements, 1277 investment activities, or financial statements suggest that the 1278 insurer may be in an unsound financial condition. 1279 (b) Closely monitor all risk-based capital reports, own 1280 risk solvency assessments, reinsurance agreements, and financial 1281 statements filed by insurers selling homeowners’ and condominium 1282 unit owners’ insurance policies in this state. 1283 (c) Have primary responsibility to conduct annual 1284 catastrophe stress tests of all domestic insurers and insurers 1285 that are commercially domiciled in this state. 1286 1. The insurer stability unit shall cooperate with the 1287 Florida Commission on Hurricane Loss Projection Methodology to 1288 select the hurricane scenarios that are used in the annual 1289 catastrophe stress test. 1290 2. Catastrophe stress testing must determine: 1291 a. Whether an individual insurer can survive a one in 130 1292 year probable maximum loss (PML), and a second event 50-year 1293 return PML following a first event that exceeds a 100-year 1294 return PML; and 1295 b. The impact of the selected hurricane scenarios on the 1296 Citizens Property Insurance Corporation, the Florida Hurricane 1297 Catastrophe Fund, the Florida Insurance Guaranty Association, 1298 and taxpayers. 1299 (d) Update wind mitigation credits required by s. 627.711 1300 and associated rules. 1301 (e) Review the causes of insolvency and business practices 1302 of insurers that have been referred to the department’s Division 1303 of Rehabilitation and Liquidation and make recommendations to 1304 prevent similar failures in the future. 1305 (f) On January 1 and July 1 of each year, provide a report 1306 on the status of the homeowners’ and condominium unit owners’ 1307 insurance market to the Governor, the President of the Senate, 1308 the Speaker of the House of Representatives, the Minority Leader 1309 of the Senate, the Minority Leader of the House of 1310 Representatives, and the chairs of the legislative committees 1311 with jurisdiction over matters of insurance showing: 1312 1. Litigation practices and outcomes of insurance 1313 companies. 1314 2. Percentage of homeowners and condominium unit owners who 1315 obtain insurance in the voluntary market. 1316 3. Percentage of homeowners and condominium unit owners who 1317 obtain insurance from the Citizens Property Insurance 1318 Corporation. 1319 4. Profitability of the homeowners’ and condominium unit 1320 owners’ lines of insurance in this state, including a comparison 1321 with similar lines of insurance in other hurricane-prone states 1322 and with the national average. 1323 5. Average premiums charged for homeowners’ and condominium 1324 unit owners’ insurance in each of the 67 counties in this state. 1325 6. Results of the latest annual catastrophe stress tests of 1326 all domestic insurers and insurers that are commercially 1327 domiciled in this state. 1328 7. The availability of reinsurance in the personal lines 1329 insurance market. 1330 8. The number of property and casualty insurance carriers 1331 referred to the insurer stability unit for enhanced monitoring, 1332 including the reason for the referral. 1333 9. The number of referrals to the insurer stability unit 1334 which were deemed appropriate for enhanced monitoring, including 1335 the reason for the monitoring. 1336 10. The name of any insurer against which delinquency 1337 proceedings were instituted, including the grounds for 1338 rehabilitation pursuant to s. 631.051 and the date that each 1339 insurer was deemed impaired of capital or surplus, as the terms 1340 impairment of capital and impairment of surplus are defined in 1341 s. 631.011, or insolvent, as the term insolvency is defined in 1342 s. 631.011; a concise statement of the circumstances that led to 1343 the insurer’s delinquency; and a summary of the actions taken by 1344 the insurer and the office to avoid delinquency. 1345 11. Recommendations for improvements to the regulation of 1346 the homeowners’ and condominium unit owners’ insurance market 1347 and an indication of whether such improvements require any 1348 change to existing laws or rules. 1349 12. Identification of any trends that may warrant attention 1350 in the future. 1351 (4) Any of the following events must trigger a referral to 1352 the insurer stability unit: 1353 (a) Consumer complaints related to homeowners’ insurance or 1354 condominium unit owners’ insurance under s. 624.307(10), if the 1355 complaints, in the aggregate, suggest a trend within the 1356 marketplace and are not an isolated incident. 1357 (b) There is reason to believe that an insurer who is 1358 authorized to sell homeowners’ or condominium unit owners’ 1359 insurance in this state has engaged in an unfair trade practice 1360 under part IX of chapter 626. 1361 (c) A market conduct examination determines that an insurer 1362 has exhibited a pattern or practice of willful violations of an 1363 unfair insurance trade practice related to claims-handling which 1364 caused harm to policyholders, as prohibited by s. 1365 626.9541(1)(i). 1366 (d) An insurer authorized to sell homeowners’ or 1367 condominium unit owners’ insurance in this state requests a rate 1368 increase that exceeds 15 percent, in accordance with s. 1369 627.0629(6). 1370 (e) An insurer authorized to sell homeowners’ or 1371 condominium unit owners’ insurance in this state violates the 1372 ratio of actual or projected annual written premiums required by 1373 s. 624.4095(4)(a). 1374 (f) An insurer authorized to sell homeowners’ or 1375 condominium unit owners’ insurance in this state files a notice 1376 pursuant to s. 624.4305 advising the office that it intends to 1377 nonrenew more than 10,000 residential property insurance 1378 policies in this state within a 12-month period. 1379 (g) A quarterly or annual financial statement required by 1380 ss. 624.424 and 627.915 demonstrates that an insurer authorized 1381 to sell homeowners’ or condominium unit owners’ insurance in 1382 this state is in an unsound condition, as defined in s. 1383 624.80(2); has exceeded its powers in a manner as described in 1384 s. 624.80(3); is impaired, as defined in s. 631.011(12) or (13); 1385 or is insolvent, as defined in s. 631.011. 1386 (h) An insurer authorized to sell homeowners’ or 1387 condominium unit owners’ insurance in this state files a 1388 quarterly or annual financial statement required by ss. 624.424 1389 and 627.915 which is misleading or contains material errors. 1390 (i) An insurer authorized to sell homeowners’ or 1391 condominium unit owners’ insurance in this state fails to timely 1392 file a quarterly or annual financial statement required by ss. 1393 624.424 and 627.915. 1394 (j) An insurer authorized to sell homeowners’ or 1395 condominium unit owners’ insurance in this state files a risk 1396 based capital report that triggers a company action level event, 1397 regulatory action level event, authorized control level event, 1398 or mandatory control level event, as those terms are defined in 1399 s. 624.4085. 1400 (k) An insurer selling homeowners’ or condominium unit 1401 owners’ insurance in this state that is subject to the own-risk 1402 solvency assessment requirement of s. 628.8015, and fails to 1403 timely file the own-risk solvency assessment. 1404 (l) A reinsurance agreement creates a substantial risk of 1405 insolvency for an insurer authorized to sell homeowners’ or 1406 condominium unit owners’ insurance in this state, pursuant to s. 1407 624.610(13). 1408 (m) An insurer authorized to sell homeowners’ or 1409 condominium unit owners’ insurance in this state is party to a 1410 reinsurance agreement that does not create a meaningful transfer 1411 of risk of loss to the reinsurer, pursuant to s. 624.610(14). 1412 (n) Citizens Property Insurance Corporation is required to 1413 absorb policies from an insurer that participated in the 1414 corporation’s depopulation program authorized by s. 627.3511 1415 within 3 years after the insurer takes policies out of the 1416 corporation. 1417 1418 The insurer stability unit’s supervisors shall review all 1419 referrals triggered by the statutory provisions to determine 1420 whether enhanced scrutiny of the insurer is appropriate. 1421 (5) Expenses of the insurer stability unit shall be paid 1422 from moneys allocated to the Insurance Regulatory Trust Fund. 1423 However, if the unit recommends that a market conduct exam or 1424 targeted market exam be conducted, the reasonable cost of the 1425 examination shall be paid by the person examined, in accordance 1426 with s. 624.3161. 1427 Section 20. Subsection (1) of section 631.031, Florida 1428 Statutes, is amended to read: 1429 631.031 Initiation and commencement of delinquency 1430 proceeding.— 1431 (1) Upon a determination by the office that one or more 1432 grounds for the initiation of delinquency proceedings exist 1433 pursuant to this chapter and that delinquency proceedings must 1434 be initiated, the Director of the Office of Insurance Regulation 1435 shall notify the department of such determination and shall 1436 provide the department with all necessary documentation and 1437 evidence. If the director must notify the department of a 1438 determination regarding a property insurer, the notification 1439 must include an affidavit that identifies the grounds for 1440 rehabilitation pursuant to s. 631.051; the date that each 1441 insurer was deemed impaired of capital or surplus, as the terms 1442 impairment of capital and impairment of surplus are defined in 1443 s. 631.011, or insolvent, as the term insolvency is defined in 1444 s. 631.011; a concise statement of the circumstances that led to 1445 the insurer’s delinquency; and a summary of the actions taken by 1446 the insurer and the office to avoid delinquency. The department 1447 shall then initiate such delinquency proceedings. 1448 Section 21. Subsection (3) of section 631.398, Florida 1449 Statutes, is amended to read: 1450 631.398 Prevention of insolvencies.—To aid in the detection 1451 and prevention of insurer insolvencies or impairments: 1452 (3)(a) The department shall, no later than the conclusion 1453 of any domestic insurer insolvency proceeding, prepare a summary 1454 report containing such information as is in its possession 1455 relating to the history and causes of such insolvency, including 1456 a statement of the business practices of such insurer which led 1457 to such insolvency. 1458 (b) For an insolvency involving a domestic property 1459 insurer, the department shall: 1460 1. Begin an analysis of the history and causes of the 1461 insolvency once the department is appointed by the court as 1462 receiver. 1463 2. Submit an initial report analyzing the history and 1464 causes of the insolvency to the Governor, the President of the 1465 Senate, the Speaker of the House of Representatives, and the 1466 office. The initial report must be submitted no later than 4 1467 months after the department is appointed as receiver. The 1468 initial report shall be updated at least annually until the 1469 submission of the final report. The report may not be used as 1470 evidence in any proceeding brought by the department or others 1471 to recover assets on behalf of the receivership estate as part 1472 of its duties under s. 631.141(8). The submission of a report 1473 under this subparagraph shall not be considered a waiver of any 1474 evidentiary privilege the department may assert under state or 1475 federal law. 1476 3. Provide a special report to the Governor, the President 1477 of the Senate, the Speaker of the House of Representatives, and 1478 the office, within 10 days upon identifying any condition or 1479 practice that may lead to insolvency in the property insurance 1480 marketplace. 1481 4. Submit a final report analyzing the history and causes 1482 of the insolvency and the review of the Office of Insurance 1483 Regulation’s regulatory oversight of the insurer to the 1484 Governor, the President of the Senate, the Speaker of the House 1485 of Representatives, and the office within 30 days of the 1486 conclusion of the insolvency proceeding. 1487 5. Review the Office of Insurance Regulation’s regulatory 1488 oversight of the insurer. 1489 Section 22. If any law amended by this act was also amended 1490 by a law enacted during the 2022 Regular Session of the 1491 Legislature, such laws shall be construed as if enacted during 1492 the same session of the Legislature, and full effect shall be 1493 given to each if possible. 1494 Section 23. Except as otherwise expressly provided in this 1495 act, this act shall take effect upon becoming a law.