Bill Text: FL S0812 | 2017 | Regular Session | Comm Sub

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Bill Title: Insurance Policy Transfers

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2017-04-18 - Laid on Table, companion bill(s) passed, see CS/CS/HB 805 (Ch. 2017-19) [S0812 Detail]

Download: Florida-2017-S0812-Comm_Sub.html

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       Florida Senate - 2017                       CS for CS for SB 812
       
       
        
       By the Committees on Rules; and Banking and Insurance; and
       Senators Perry and Gibson
       
       
       
       
       595-03523-17                                           2017812c2
    1                        A bill to be entitled                      
    2         An act relating to insurance policy transfers;
    3         amending s. 627.4133, F.S.; authorizing an insurer to
    4         transfer a personal lines residential or commercial
    5         residential property insurance policy to another
    6         authorized insurer upon expiration of the policy term
    7         if specified conditions are met; providing an
    8         effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Subsection (8) of section 627.4133, Florida
   13  Statutes, is amended to read:
   14         627.4133 Notice of cancellation, nonrenewal, or renewal
   15  premium.—
   16         (8) Upon expiration of the policy term, an insurer may
   17  transfer a personal lines residential, commercial residential,
   18  or commercial lines policy to another authorized insurer that is
   19  a member of the same group or owned by the same holding company
   20  as the transferring insurer. The transfer constitutes a renewal
   21  of the policy and may not be treated as a cancellation or a
   22  nonrenewal of the policy. The insurer must provide notice of its
   23  intent to transfer the policy at least 45 days before the
   24  effective date of the transfer along with the financial rating
   25  of the authorized insurer to which the policy is being
   26  transferred. Such notice may be provided in the notice of
   27  renewal premium. This subsection does not apply to a policy
   28  providing personal lines residential or commercial residential
   29  property insurance coverage, except for farmowners insurance,
   30  unless:
   31         (a) The authorized insurer to which the policy is being
   32  transferred is admitted in this state and other states and
   33  writing residential property insurance in multiple states, is
   34  not converting the policy to a surplus lines policy, and has
   35  been determined by the office to have the same or better
   36  financial strength than the transferring insurer;
   37         (b) The transfer results in substantially similar coverage;
   38         (c) The authorized insurer to which the policy is being
   39  transferred provides a notice of change in policy terms to the
   40  policyholder in compliance with s. 627.43141, which must also
   41  include notice of the policy transfer and the authorized
   42  insurer’s financial rating. Such notice must be provided with
   43  the notice of renewal premium. The notice and information
   44  provided under this paragraph must be provided to the insured at
   45  least 60 days before the effective date of the transfer and may
   46  replace any other notice required by this subsection;
   47         (d) The policyholder of the policy being transferred has
   48  been selected on a nondiscriminatory basis; and
   49         (e) The office has approved the transfer and commercial
   50  general liability policies providing farm coverage or commercial
   51  property policies providing farm coverage.
   52         Section 2. This act shall take effect July 1, 2017.