Bill Text: FL S0202 | 2015 | Regular Session | Comm Sub

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Bill Title: Insurer Notifications

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Introduced - Dead) 2015-04-01 - Laid on Table, companion bill(s) passed, see CS/HB 273 (Ch. 2015-170) [S0202 Detail]

Download: Florida-2015-S0202-Comm_Sub.html

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       Florida Senate - 2015                       CS for CS for SB 202
       
       
        
       By the Committees on Commerce and Tourism; and Banking and
       Insurance; and Senator Bradley
       
       
       
       
       577-01816-15                                           2015202c2
    1                        A bill to be entitled                      
    2         An act relating to insurer notifications; amending s.
    3         627.421, F.S.; authorizing a policyholder of personal
    4         lines insurance to elect delivery of policy documents
    5         by electronic means; amending s. 627.43141, F.S.;
    6         defining the term “optional coverage”; revising the
    7         requirements applicable to insurers when providing a
    8         notice of change in policy terms for a renewal policy
    9         to include the requirement that the notice be an
   10         advance notice and to allow such notice to be sent
   11         separately from the notice of renewal premium within a
   12         specified timeframe; requiring the insurer to provide
   13         a sample copy of the notice of change in policy terms
   14         to the insurance agent at a specified time;
   15         prohibiting the use of such notice to add optional
   16         coverage that increases the policy’s premium unless
   17         the policyholder approves the optional coverage;
   18         providing an effective date.
   19          
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Subsection (1) of section 627.421, Florida
   23  Statutes, is amended to read:
   24         627.421 Delivery of policy.—
   25         (1) Subject to the insurer’s requirement as to payment of
   26  premium, every policy shall be mailed, delivered, or
   27  electronically transmitted to the insured or to the person
   28  entitled thereto within not later than 60 days after the
   29  effectuation of coverage. Notwithstanding any other provision of
   30  law, an insurer may allow a policyholder of personal lines
   31  insurance to affirmatively elect delivery of the policy
   32  documents, including, but not limited to, policies,
   33  endorsements, notices, or documents, by electronic means in lieu
   34  of delivery by mail. Electronic transmission of a policy for
   35  commercial risks, including, but not limited to, workers’
   36  compensation and employers’ liability, commercial automobile
   37  liability, commercial automobile physical damage, commercial
   38  lines residential property, commercial nonresidential property,
   39  farmowners insurance, and the types of commercial lines risks
   40  specified set forth in s. 627.062(3)(d), constitutes shall
   41  constitute delivery to the insured or to the person entitled to
   42  delivery, unless the insured or the person entitled to delivery
   43  communicates to the insurer in writing or electronically that he
   44  or she does not agree to delivery by electronic means.
   45  Electronic transmission must shall include a notice to the
   46  insured or to the person entitled to delivery of a policy of his
   47  or her right to receive the policy via United States mail rather
   48  than via electronic transmission. A paper copy of the policy
   49  shall be provided to the insured or to the person entitled to
   50  delivery at his or her request.
   51         Section 2. Present paragraphs (b) and (c) of subsection (1)
   52  of section 627.43141, Florida Statutes, are redesignated as
   53  paragraphs (c) and (d), respectively, a new paragraph (b) is
   54  added to that subsection, subsection (2) of that section is
   55  amended, present subsections (3) through (6) of that section are
   56  redesignated as subsections (4) through (7), respectively, and a
   57  new subsection (3) is added to that section, to read:
   58         627.43141 Notice of change in policy terms.—
   59         (1) As used in this section, the term:
   60         (b) “Optional coverage” means the addition of new insurance
   61  coverage that has not previously been requested or approved by
   62  the policyholder but that does not include any change to the
   63  base policy or a deductible or an insurance limit.
   64         (2) A renewal policy may contain a change in policy terms.
   65  If a renewal policy does contain such change occurs, the insurer
   66  shall must give the named insured advance written notice of the
   67  change, which may must be enclosed along with the written notice
   68  of renewal premium required under by ss. 627.4133 and 627.728 or
   69  sent separately within the timeframe required under the Florida
   70  Insurance Code for the provision of a notice of nonrenewal to
   71  the named insured for that line of insurance. The insurer must
   72  also provide a sample copy of the notice to the named insured’s
   73  insurance agent before or at the same time that notice is
   74  provided to the named insured. Such notice shall be entitled
   75  “Notice of Change in Policy Terms.”
   76         (3) A renewal policy that includes the addition of optional
   77  coverage that increases the premium to a policyholder may not
   78  use the “Notice of Change in Policy Terms” under this section to
   79  add the optional coverage to the policy unless the policyholder
   80  affirmatively indicates to the insurer or agent that the
   81  policyholder approves the addition of the optional coverage.
   82         Section 3. This act shall take effect July 1, 2015.