Bill Text: FL S1536 | 2023 | Regular Session | Introduced

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Bill Title: Disposition of Insurance Proceeds

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2023-05-05 - Died in Banking and Insurance [S1536 Detail]

Download: Florida-2023-S1536-Introduced.html

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       Florida Senate - 2023                                    SB 1536
       
       
        
       By Senator Stewart
       
       
       
       
       
       17-00269-23                                           20231536__
    1                        A bill to be entitled                      
    2         An act relating to the disposition of insurance
    3         proceeds; amending s. 494.0026, F.S.; requiring
    4         mortgagees or assignees holding certain insurance
    5         proceeds pending completion of all or part of damage
    6         repairs to notify insureds of requirements to release
    7         the proceeds; providing requirements for the notice;
    8         providing an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Subsection (2) of section 494.0026, Florida
   13  Statutes, is amended to read:
   14         494.0026 Disposition of insurance proceeds.—The following
   15  provisions apply to mortgage loans held by a mortgagee or
   16  assignee that is subject to part II or part III of this chapter.
   17         (2) Insurance proceeds received by a mortgagee or an
   18  assignee which that relate to compensation for damage to
   19  property or contents insurance coverage in which the mortgagee
   20  or assignee has a security interest must be promptly deposited
   21  into a segregated account of a federally insured financial
   22  institution. A mortgagee or an assignee holding insurance
   23  proceeds pending completion of all or part of damage repairs
   24  shall notify the insured of each requirement the insured must
   25  fulfill for the mortgagee or assignee to release the proceeds.
   26  The notice required under this subsection must be sent by
   27  written or electronic delivery no later than the 10th business
   28  day after the date the mortgagee or assignee endorses the check,
   29  draft, or other negotiable instrument for the proceeds.
   30  
   31  This section may not be construed to prevent an insurance
   32  company from paying the insured directly for additional living
   33  expenses or paying the insured directly for contents insurance
   34  coverage if the mortgagee or assignee does not have a security
   35  interest in the contents.
   36         Section 2. This act shall take effect July 1, 2023.