Bill Text: FL S1218 | 2017 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Property Repair
Spectrum: Bipartisan Bill
Status: (Failed) 2017-05-05 - Died in Regulated Industries [S1218 Detail]
Download: Florida-2017-S1218-Introduced.html
Bill Title: Property Repair
Spectrum: Bipartisan Bill
Status: (Failed) 2017-05-05 - Died in Regulated Industries [S1218 Detail]
Download: Florida-2017-S1218-Introduced.html
Florida Senate - 2017 SB 1218 By Senator Farmer 34-00621B-17 20171218__ 1 A bill to be entitled 2 An act relating to property repair; amending s. 3 468.8411, F.S.; defining the terms “professional water 4 damage restorer” and “water damage restoration”; 5 amending s. 468.8414, F.S.; requiring the Department 6 of Business and Professional Regulation to license 7 applicants who are qualified to practice water damage 8 restoration; specifying qualifications for licensure; 9 providing applicability to professional water damage 10 restorers of certain prohibitions and penalties; 11 amending s. 627.422, F.S.; prohibiting personal lines 12 residential or commercial residential property 13 insurance policies from prohibiting the post-loss 14 assignment of benefits; providing that an assignment 15 agreement is not valid unless it meets specified 16 requirements; providing requirements and limitations 17 for assignees of post-loss benefits; requiring 18 insurers that have a preferred vendor or similar 19 program to consider certain certified persons to be 20 preferred vendors; requiring insurers to provide 21 specified contact information on their websites and in 22 policies; requiring assignees to deliver an executed 23 assignment agreement to insurers within a specified 24 timeframe; requiring insurers to make any initial 25 inspections of the covered property within a specified 26 time after receiving such agreement; requiring 27 insureds or assignees to provide a certain 28 prelitigation notice to insurers by a specified 29 timeframe; amending s. 627.7011, F.S.; prohibiting 30 specified acts of insurers relating to homeowners’ 31 insurance policies under certain circumstances; 32 providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Subsections (7) and (8) are added to section 37 468.8411, Florida Statutes, to read: 38 468.8411 Definitions.—As used in this part, the term: 39 (7) “Professional water damage restorer” means any person 40 who performs water damage restoration. 41 (8) “Water damage restoration” means water removal, 42 demolition, dehumidification, or other treatment related to 43 water damage or water-contaminated matter greater than 10 square 44 feet. 45 Section 2. Subsection (1) of section 468.8414, Florida 46 Statutes, is amended, present subsection (4) of that section is 47 redesignated as subsection (6), and a new subsection (4) and 48 subsection (5) are added to that section, to read: 49 468.8414 Licensure.— 50 (1) The department shall license any applicant who the 51 department certifies is qualified to practice mold assessment, 52ormold remediation, or water damage restoration. 53 (4) The department shall certify for licensure as a 54 professional water damage restorer an applicant who: 55 (a) Is of good moral character; 56 (b) Has the insurance coverage required under s. 468.8421; 57 and 58 (c) Satisfies the Institute of Inspection, Cleaning, and 59 Restoration Certification S500 standards. 60 (5) The prohibitions and penalties described in s. 468.8419 61 apply to a professional water damage restorer. 62 Section 3. Section 627.422, Florida Statutes, is amended to 63 read: 64 627.422 Assignment of policies or post-loss benefits.—A 65 policy or its post-loss benefits may be assignable, or not 66 assignable, as provided by theitsterms of the policy and the 67 requirements of this section. 68 (1) LIFE OR HEALTH INSURANCE POLICIES.—Subject to its terms 69 relating to assignability, any life or health insurance policy 70 under the terms of which the beneficiary may be changed upon the 71 sole request of the policyowner may be assigned either by pledge 72 or transfer of title, by an assignment executed by the 73 policyowner alone and delivered to the insurer, whether or not 74 the pledgee or assignee is the insurer. Any such assignment 75 shall entitle the insurer to deal with the assignee as the owner 76 or pledgee of the policy in accordance with the terms of the 77 assignment, until the insurer has received at its home office 78 written notice of termination of the assignment or pledge or 79 written notice by or on behalf of some other person claiming 80 some interest in the policy in conflict with the assignment. 81 (2) POST-LOSS BENEFITS UNDER CERTAIN PROPERTY INSURANCE 82 POLICIES.—A personal lines residential property insurance policy 83 or a commercial residential property insurance policy may not 84 prohibit the post-loss assignment of benefits. 85 (a) An agreement to assign post-loss benefits under this 86 subsection is not valid unless the agreement: 87 1. Is in writing between the policyholder and assignee and 88 is delivered to the insurer as provided in paragraph (c); 89 2. Is limited to claims for work performed by the assignee 90 for damage to dwellings or structures covered under the policy; 91 3. Allows the policyholder to unilaterally rescind the 92 assignment of post-loss benefits to a vendor if work has not yet 93 begun or if the assignee fails to meet the standards required 94 for such work; provided, however, that the policyholder or 95 insurer may be responsible for payment for work performed; and 96 4. Contains an accurate and up-to-date statement of the 97 scope of work to be performed. 98 (b) An assignee of post-loss benefits under this 99 subsection: 100 1. Must provide the policyholder with accurate and up-to 101 date revised statements of the scope of work to be performed as 102 supplemental or additional repairs are required; 103 2. Must guarantee to the policyholder that the work 104 performed conforms to current and accepted industry standards, 105 including, but not limited to, the standards under this part; 106 3. May not charge the policyholder more than the applicable 107 deductible contained in the policy unless the policyholder opts 108 for additional work at the policyholder’s own expense; 109 4. May not charge the policyholder directly, except for 110 additional work not covered under the policy; 111 5. May not pay referral fees totaling more than $750 in 112 connection with the assignment; and 113 6. For water-damage claims: 114 a. Must be licensed in good standing under part XVI of 115 chapter 468 or chapter 489 to perform any work requiring such a 116 license. 117 b. Must be certified in good standing with the Institute of 118 Inspection Cleaning and Restoration Certification to perform any 119 work covered under the appropriate certification. 120 c. Must verify that any vendor it contracts with to perform 121 work meets the applicable license and certification requirements 122 in sub-subparagraphs a. and b. 123 124 For purposes of sub-subparagraphs b. and c., if an insurer has a 125 preferred vendor or similar program, the insurer must consider a 126 person certified by the Institute of Inspection Cleaning and 127 Restoration Certification to be a preferred vendor. 128 (c) An insurer shall provide on its website and in the 129 policy its contact information for receiving the agreement that 130 meets the requirements of paragraph (a) and which must include 131 at least a dedicated facsimile number. After executing the 132 assignment agreement, the assignee must deliver the agreement to 133 the insurer within the later of: 134 1. If a state of emergency was declared under s. 252.36 for 135 a hurricane or other natural disaster and the property covered 136 under the policy was damaged as a result of the hurricane or 137 natural disaster, 7 days after the state of emergency is 138 terminated; or 139 2. Seven business days after execution of the agreement. 140 (d) Notwithstanding s. 627.70131, upon receiving the 141 agreement in paragraph (a), the insurer must make any initial 142 inspections of the covered property within the later of: 143 1. If a state of emergency was declared under s. 252.36 for 144 a hurricane or other natural disaster and the property covered 145 under the policy was damaged as a result of the hurricane or 146 natural disaster, 7 days after the state of emergency is 147 terminated; or 148 2. Seven business days after receiving the agreement. 149 (e) No later than 7 days before an insured or assignee 150 initiates litigation against an insurer relating to a denied or 151 limited claim, the insured or assignee must provide the insurer 152 with notice of intent to initiate such litigation. 153 Section 4. Paragraph (a) of subsection (3) of section 154 627.7011, Florida Statutes, is amended to read: 155 627.7011 Homeowners’ policies; offer of replacement cost 156 coverage and law and ordinance coverage.— 157 (3) In the event of a loss for which a dwelling or personal 158 property is insured on the basis of replacement costs: 159 (a) For a dwelling:,160 1. The insurer must initially pay at least the actual cash 161 value of the insured loss, less any applicable deductible. The 162 insurer shall pay any remaining amounts necessary to perform 163 such repairs as work is performed and expenses are incurred. If 164 a total loss of a dwelling occurs, the insurer shall pay the 165 replacement cost coverage without reservation or holdback of any 166 depreciation in value, pursuant to s. 627.702. 167 2. The insurer may not require that a particular vendor 168 make repairs to such dwelling. 169 3. The insurer may not, unless expressly requested by the 170 insured, recommend or suggest a particular vendor for repairs to 171 be made to such dwelling. 172 Section 5. This act shall take effect July 1, 2017.