Bill Text: FL S0708 | 2014 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance Claims
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Passed) 2014-06-13 - Chapter No. 2014-86, companion bill(s) passed, see CS/CS/HB 633 (Ch. 2014-123) [S0708 Detail]
Download: Florida-2014-S0708-Comm_Sub.html
Bill Title: Insurance Claims
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Passed) 2014-06-13 - Chapter No. 2014-86, companion bill(s) passed, see CS/CS/HB 633 (Ch. 2014-123) [S0708 Detail]
Download: Florida-2014-S0708-Comm_Sub.html
Florida Senate - 2014 CS for SB 708 By the Committee on Banking and Insurance; and Senator Bean 597-01763-14 2014708c1 1 A bill to be entitled 2 An act relating to insurance claims; amending s. 3 626.601, F.S.; adding mediators and neutral evaluators 4 to the list of individuals or entities that the 5 Department of Financial Services or the Office of 6 Insurance Regulation may investigate for alleged 7 improper conduct; amending s. 627.3518, F.S.; 8 conforming a cross-reference; amending s. 627.409, 9 F.S.; providing that a claim for residential property 10 insurance cannot be denied based on certain credit 11 information; amending s. 627.4133, F.S.; providing 12 that a policy or contract be cancelled based on 13 certain credit information; amending s. 627.422, F.S.; 14 providing for the assignment of property insurance 15 policy benefits; specifying requirements for the 16 assignment of post-loss benefits in a valid agreement 17 for services; amending s. 627.7015, F.S.; revising the 18 rule requirements relating to the property insurance 19 mediation program administered by the department; 20 creating s. 627.70151, F.S.; providing grounds for 21 challenging an umpire’s impartiality in estimating the 22 amount of a property loss; amending s. 627.706, F.S.; 23 redefining the term “neutral evaluator”; amending s. 24 627.7074, F.S.; specifying grounds for denying, 25 suspending, or revoking approval of a neutral 26 evaluator; creating s. 627.7142, F.S.; establishing a 27 Claims Bill of Rights for residential property 28 insurance policyholders; providing that such bill of 29 rights does not provide a cause of action; creating s. 30 627.715, F.S.; defining terms; providing requirements 31 for emergency mitigation repair agreements; requiring 32 an emergency mitigation contractor to be appropriately 33 certified or to possess a contracting license; 34 amending s. 627.745, F.S.; revising qualifications for 35 mediators of personal injury claims; providing grounds 36 for denying, suspending, or revoking the application 37 or approval of a mediator; providing an effective 38 date. 39 40 Be It Enacted by the Legislature of the State of Florida: 41 42 Section 1. Section 626.601, Florida Statutes, is amended to 43 read: 44 626.601 Improper conduct; investigationinquiry;45fingerprinting.— 46 (1) The department or office may, upon its own motion or 47 upon a written complaint signed by ananyinterested person and 48 filed with the department or office, inquire into theany49 alleged improper conduct of an approved, certified, orany50 licensed insurance agency, agent, adjuster, service 51 representative, managing general agent, customer representative, 52 title insurance agent, title insurance agency, mediator, neutral 53 evaluator, continuing education course provider, instructor, 54 school official, or monitor group under this code. The 55 department or office may thereafter initiate an investigation of 56anysuch individual or entitylicenseeif it has reasonable 57 cause to believe that the individual or entitylicenseehas 58 violated any provision of the insurance code. During the course 59 of its investigation, the department or office shall contact the 60 individual or entitylicenseebeing investigated unless it 61 determines that contacting such individual or entityperson62 could jeopardize the successful completion of the investigation 63 or cause injury to the public. 64 (2) In the investigation by the department or office of the 65 alleged misconduct, the individual or entitylicenseeshall, if 66whenever sorequired by the department or office, open the 67 individual’s or entity’scause his or herbooks and recordsto68be openfor inspectionfor the purpose of such inquiries. 69 (3)TheComplaints against an individual or entityany70licenseemay be informally alleged and are not required to 71 include languageneed not be in any such language as is72 necessary to charge a crime on an indictment or information. 73 (4) The expense foranyhearings or investigations 74 conducted pursuant tounderthis sectionlaw, as well as the 75 fees and mileage of witnesses, may be paid out of the 76 appropriate fund. 77 (5) Ifthe department or office, after investigation, the 78 department or office has reason to believe that an individuala79licenseemay have been found guilty of or pleaded guilty or nolo 80 contendere to a felony or a crime related to the business of 81 insurance in this or any other state or jurisdiction, the 82 department or office may require the individuallicenseeto file 83 with the department or office a complete set of his or her 84 fingerprints,which shall beaccompanied by the fingerprint 85 processing fee specifiedset forthin s. 624.501. The 86 fingerprints mustshallbe taken by an authorized law 87 enforcement agency or other department-approved entity. 88 (6) The complaint andanyinformation obtained pursuant to 89 the investigation by the department or office are confidential 90 andareexempt fromthe provisions ofs. 119.07, unless the 91 department or office files a formal administrative complaint, 92 emergency order, or consent order against the individual or 93 entitylicensee.Nothing inThis subsection does notshall be94construed toprevent the department or office from disclosing 95 the complaint or such information as it deems necessary to 96 conduct the investigation, to update the complainant as to the 97 status and outcome of the complaint, or to share such 98 information with aanylaw enforcement agency or other 99 regulatory body. 100 Section 2. Subsection (9) of section 627.3518, Florida 101 Statutes, is amended to read: 102 627.3518 Citizens Property Insurance Corporation 103 policyholder eligibility clearinghouse program.—The purpose of 104 this section is to provide a framework for the corporation to 105 implement a clearinghouse program by January 1, 2014. 106 (9) The 45-day notice of nonrenewal requirement set forth 107 in s. 627.4133(2)(b)5.b.s. 627.4133(2)(b)4.b.applies when a 108 policy is nonrenewed by the corporation because the risk has 109 received an offer of coverage pursuant to this section which 110 renders the risk ineligible for coverage by the corporation. 111 Section 3. Section 627.409, Florida Statutes, is amended to 112 read: 113 627.409 Representations in applications; warranties.— 114 (1) Any statement or description made by or on behalf of an 115 insured or annuitant in an application for an insurance policy 116 or annuity contract, or in negotiations for a policy or 117 contract, is a representation andisnot a warranty. Except as 118 provided in subsection (3), a misrepresentation, omission, 119 concealment of fact, or incorrect statement may prevent recovery 120 under the contract or policy only if any of the following apply: 121 (a) The misrepresentation, omission, concealment, or 122 statement is fraudulent or is materialeitherto the acceptance 123 of the risk or to the hazard assumed by the insurer. 124 (b) If the true facts had been known to the insurer 125 pursuant to a policy requirement or other requirement, the 126 insurer in good faith would not have issued the policy or 127 contract, would not have issued it at the same premium rate, 128 would not have issued a policy or contract in as large an 129 amount, or would not have provided coverage with respect to the 130 hazard resulting in the loss. 131 (2) A breach or violation by the insured of aanywarranty, 132 condition, or provision of aanywet marine or transportation 133 insurance policy, contract of insurance, endorsement, or 134 applicationtherefordoes not void the policy or contract, or 135 constitute a defense to a loss thereon, unless such breach or 136 violation increased the hazard by any means within the control 137 of the insured. 138 (3) For residential property insurance, if a policy or 139 contract has been in effect for more than 90 days, a claim filed 140 by the insured cannot be denied based on credit information 141 available in public record. 142 Section 4. Paragraph (b) of subsection (2) of section 143 627.4133, Florida Statutes, is amended to read: 144 627.4133 Notice of cancellation, nonrenewal, or renewal 145 premium.— 146 (2) With respect to any personal lines or commercial 147 residential property insurance policy, including, but not 148 limited to, any homeowner’s, mobile home owner’s, farmowner’s, 149 condominium association, condominium unit owner’s, apartment 150 building, or other policy covering a residential structure or 151 its contents: 152 (b) The insurer shall give the first-named insured written 153 notice of nonrenewal, cancellation, or termination at least 100 154 days before the effective date of the nonrenewal, cancellation, 155 or termination. However, the insurer shall give at least 100 156 days’ written notice, or written notice by June 1, whichever is 157 earlier, for any nonrenewal, cancellation, or termination that 158 would be effective between June 1 and November 30. The notice 159 must include the reasonor reasonsfor the nonrenewal, 160 cancellation, or termination, except that: 161 1. The insurer shall give the first-named insured written 162 notice of nonrenewal, cancellation, or termination at least 120 163 days beforeprior tothe effective date of the nonrenewal, 164 cancellation, or termination for a first-named insured whose 165 residential structure has been insured by that insurer or an 166 affiliated insurer for at least 5 years beforea 5-year period167immediately prior tothe date of the written notice. 168 2. If cancellation is for nonpayment of premium, at least 169 10 days’ written notice of cancellation accompanied by the 170 reason therefor must be given. As used in this subparagraph, the 171 term “nonpayment of premium” means failure of the named insured 172 to discharge when due her or his obligations for paying the 173 premiumin connection with the payment of premiumson a policy 174 or ananyinstallment of such premium, whether the premium is 175 payable directly to the insurer or its agent or indirectly under 176 aanypremium finance plan or extension of credit, or failure to 177 maintain membership in an organization if such membership is a 178 condition precedent to insurance coverage. The term also means 179 the failure of a financial institution to honor an insurance 180 applicant’s check after delivery to a licensed agent for payment 181 of a premium,even if the agent has previously delivered or 182 transferred the premium to the insurer. If a dishonored check 183 represents the initial premium payment, the contract and all 184 contractual obligations are void ab initio unless the nonpayment 185 is cured within the earlier of 5 days after actual notice by 186 certified mail is received by the applicant or 15 days after 187 notice is sent to the applicant by certified mail or registered 188 mail., andIf the contract is void, any premium received by the 189 insurer from a third party must be refunded to that party in 190 full. 191 3. Ifsuchcancellation or termination occurs during the 192 first 90 days the insurance is in force and the insurance is 193 canceled or terminated for reasons other than nonpayment of 194 premium, at least 20 days’ written notice of cancellation or 195 termination accompanied by the reason therefor must be given 196 unless there has been a material misstatement or 197 misrepresentation or a failure to comply with the underwriting 198 requirements established by the insurer. 199 4. After a policy or contract has been in effect for more 200 than 90 days, the insurer may not cancel or terminate the policy 201 or contract based on credit information available in public 202 records. 203 5.4.The requirement for providing written notice by June 1 204 of any nonrenewal that would be effective between June 1 and 205 November 30 does not apply to the following situations, but the 206 insurer remains subject to the requirement to provide such 207 notice at least 100 days before the effective date of 208 nonrenewal: 209 a. A policy that is nonrenewed due to a revision in the 210 coverage for sinkhole losses and catastrophic ground cover 211 collapse pursuant to s. 627.706. 212 b. A policy that is nonrenewed by Citizens Property 213 Insurance Corporation, pursuant to s. 627.351(6), for a policy 214 that has been assumed by an authorized insurer offering 215 replacement coverage to the policyholder is exempt from the 216 notice requirements of paragraph (a) and this paragraph. In such 217 cases, the corporation must give the named insured written 218 notice of nonrenewal at least 45 days before the effective date 219 of the nonrenewal. 220 221 After the policy has been in effect for 90 days, the policy may 222 not be canceled by the insurer unless there has been a material 223 misstatement, a nonpayment of premium, a failure to comply with 224 underwriting requirements established by the insurer within 90 225 days after the date of effectuation of coverage,ora 226 substantial change in the risk covered by the policy, orifthe 227 cancellation is for all insureds under such policies for a given 228 class of insureds. This paragraph does not apply to individually 229 rated risks that havehavinga policy term of less than 90 days. 230 6.5.Notwithstanding any other provision of law, an insurer 231 may cancel or nonrenew a property insurance policy after at 232 least 45 days’ notice if the office finds that the early 233 cancellation of some or all of the insurer’s policies is 234 necessary to protect the best interests of the public or 235 policyholders and the office approves the insurer’s plan for 236 early cancellation or nonrenewal of some or all of its policies. 237 The office may base such finding upon the financial condition of 238 the insurer, lack of adequate reinsurance coverage for hurricane 239 risk, or other relevant factors. The office may condition its 240 finding on the consent of the insurer to be placed under 241 administrative supervision pursuant to s. 624.81 or to the 242 appointment of a receiver under chapter 631. 243 7.6.A policy covering both a home and a motor vehicle may 244 be nonrenewed for any reason applicable toeitherthe property 245 or motor vehicle insurance after providing 90 days’ notice. 246 Section 5. Section 627.422, Florida Statutes, is amended to 247 read: 248 627.422 Assignment of policies.—A policy may be assignable, 249 or not assignable, as provided by its terms. 250 (1) Subject to itsterms relating toassignability, aany251 life or health insurance policy, under the terms of which the 252 beneficiary may be changed only upon thesolerequest of the 253 policyowner, may be assignedeitherby pledge or transfer of 254 title, by an assignment executed by the policyowner alone and 255 delivered to the insurer, regardless of whetheror notthe 256 pledgee or assignee is the insurer. Any such assignment entitles 257shall entitlethe insurer to deal with the assignee as the owner 258 or pledgee of the policy in accordance with the terms of the 259 assignment,until the insurer has received at its home office 260 written notice of termination of the assignment or pledge or 261 written notice by or on behalf of some other person claiming 262 some interest in the policy in conflict with the assignment. 263 (2) For a residential property insurance policy, an 264 agreement purporting to assign post-loss benefits for repair or 265 replacement is a valid assignment only if the agreement: 266 (a) Requires the assignee to notify the insurance company 267 within 48 hours of the assignment. If the contact information 268 for the insurer is unavailable for the first 48 hours, the 269 assignee shall contact the company as soon as practicable; 270 (b) Limits the assignment to the contracted work to be 271 performed and is restricted to claims for damage to structures 272 covered under the policy; 273 (c) Specifies the estimated scope and price of the work 274 before it is performed; 275 (d) Prohibits the assignee from charging the policyowner 276 for any portion of the repair or replacement beyond the 277 applicable deductible contained in the insurance policy; 278 (e) Prohibits a person performing any portion of the repair 279 or replacement on behalf of the assignee from charging the 280 policyowner; 281 (f) Prohibits the assignee from retaining insurance 282 proceeds that are earmarked by the insurer for payment of work 283 to be performed by vendors other than the assignee; and 284 (g) Requires the assignee to guarantee that the work 285 performed for the loss event conforms to the most recent, 286 accepted industry standards. 287 Section 6. Paragraph (b) of subsection (4) of section 288 627.7015, Florida Statutes, is amended to read: 289 627.7015 Alternative procedure for resolution of disputed 290 property insurance claims.— 291 (4) The department shall adopt by rule a property insurance 292 mediation program to be administered by the department or its 293 designee. The department may also adopt special rules which are 294 applicable in cases of an emergency within the state. The rules 295 shall be modeled after practices and procedures set forth in 296 mediation rules of procedure adopted by the Supreme Court. The 297 rules shall provide for: 298 (b) Qualifications, denial of application, suspension, 299 revocation, and other penalties forofmediators as provided in 300 s. 627.745 andinthe Florida Rules forofCertified and Court 301 AppointedCourt AppointedMediators, and for such other302individuals as are qualified by education, training, or303experience as the department determines to be appropriate. 304 Section 7. Section 627.70151, Florida Statutes, is created 305 to read: 306 627.70151 Appraisal; conflicts of interest.—An insurer that 307 offers residential coverage as defined in s. 627.4025, or a 308 policyholder that uses an appraisal clause in a property 309 insurance contract to establish a process for using an impartial 310 umpire to estimate or evaluate the amount of loss, may challenge 311 an umpire’s impartiality and disqualify the proposed umpire only 312 if: 313 (1) A familial relationship within the third degree exists 314 between the umpire and a party or a representative of a party; 315 (2) The umpire has previously represented a party or a 316 representative of a party in a professional capacity in the same 317 or a substantially related matter; 318 (3) The umpire has represented another person in a 319 professional capacity on the same or a substantially related 320 matter that includes the claim or the same property, and the 321 other person’s interests are materially adverse to the interests 322 of a party; or 323 (4) The umpire has worked as an employer or employee of a 324 party within the preceding 5 years. 325 Section 8. Paragraph (c) of subsection (2) of section 326 627.706, Florida Statutes, is amended to read: 327 627.706 Sinkhole insurance; catastrophic ground cover 328 collapse; definitions.— 329 (2) As used in ss. 627.706-627.7074, and as used in 330 connection with any policy providing coverage for a catastrophic 331 ground cover collapse or for sinkhole losses, the term: 332 (c) “Neutral evaluator” means a professional engineer or a 333 professional geologist who has completed a course of study in 334 alternative dispute resolution designed or approved by the 335 department for use in the neutral evaluation process,andwho is 336 determined by the department to be fair and impartial, and who 337 is not otherwise ineligible for certification under s. 627.7074. 338 Section 9. Subsections (7) and (18) of section 627.7074, 339 Florida Statutes, are amended to read: 340 627.7074 Alternative procedure for resolution of disputed 341 sinkhole insurance claims.— 342 (7) Upon receipt of a request for neutral evaluation, the 343 department shall provide the parties a list of certified neutral 344 evaluators. The department shall allow the parties to submit 345 requests to disqualify evaluators on the list for cause. 346 (a) The department shall disqualify neutral evaluators for 347 cause based only on any of the following grounds: 348 1. A familial relationship within the third degree exists 349 between the neutral evaluator and either party or a 350 representative of either partywithin the third degree. 351 2. The proposed neutral evaluator has, in a professional 352 capacity, previously represented either party or a 353 representative of either party,in the same or a substantially 354 related matter. 355 3. The proposed neutral evaluator has, in a professional 356 capacity, represented another person in the same or a 357 substantially related matter and that person’s interests are 358 materially adverse to the interests of the parties. The term 359 “substantially related matter” means participation by the 360 neutral evaluator on the same claim, property, or adjacent 361 property. 362 4. The proposed neutral evaluator has, within the preceding 363 5 years, worked as an employer or employee of any party to the 364 case. 365 (b) The department shall deny an application for, or 366 suspend or revoke its approval of, a neutral evaluator if the 367 department finds that any of the following grounds exist: 368 1. Lack of one or more of the qualifications specified in 369 this section for approval or certification. 370 2. Material misstatement, misrepresentation, or fraud in 371 obtaining or attempting to obtain approval or certification. 372 3. Demonstrated lack of fitness or trustworthiness to act 373 as a neutral evaluator. 374 4. Fraudulent or dishonest practices in the conduct of an 375 evaluation or in the conduct of financial services business. 376 5. Violation of any provision of this code or of a lawful 377 order or rule of the department, or aiding, instructing, or 378 encouraging another party in committing such a violation. 379 (c)(b)The parties shall appoint a neutral evaluator from 380 the department list and promptly inform the department. If the 381 parties cannot agree to a neutral evaluator within 14 business 382 days, the department shall appoint a neutral evaluator from the 383 list of certified neutral evaluators. The department shall allow 384 each party to disqualify two neutral evaluators without cause. 385 Upon selection or appointment, the department shall promptly 386 refer the request to the neutral evaluator. 387 (d)(c)Within 14 business days afterthereferral, the 388 neutral evaluator shall notify the policyholder and the insurer 389 of the date, time, and place of the neutral evaluation 390 conference. The conference may be held by telephone, if feasible 391 and desirable. The neutral evaluator shall make reasonable 392 efforts to hold the conference within 90 days after the receipt 393 of the request by the department. Failure of the neutral 394 evaluator to hold the conference within 90 days does not 395 invalidate either party’s right to neutral evaluation or to a 396 neutral evaluation conference held outside this timeframe. 397 (18) The department shall adopt rules of procedure for the 398 neutral evaluation process and for certifying, denying 399 certification, suspending certification, and revoking the 400 certification of a neutral evaluator. 401 Section 10. Section 627.7142, Florida Statutes, is created 402 to read: 403 627.7142 Homeowner Claims Bill of Rights.—An insurer 404 issuing a personal lines residential property insurance policy 405 in this state must provide a Claims Bill of Rights to a 406 policyholder within 14 calendar days after receiving an initial 407 communication with respect to a claim, unless the claim follows 408 an event that is the subject of a declaration of a state of 409 emergency by the Governor. The purpose of the bill of rights is 410 to explain, in simple, nontechnical terms, the rights of a 411 residential property insurance policyholder who files a claim of 412 loss. The Claims Bill of Rights is specific to the claims 413 process and does not represent all of a policyholder’s rights 414 under Florida law regarding the insurance policy. The Claims 415 Bill of Rights does not create a civil cause of action by any 416 individual policyholder or class of policyholders against an 417 individual insurer. The Claims Bill of Rights shall state: 418 419 HOMEOWNER CLAIMS 420 BILL OF RIGHTS 421 This Bill of Rights is specific to the claims process 422 and does not represent all of your rights under 423 Florida law regarding your policy. There are also 424 exceptions to the stated timelines when conditions are 425 beyond your insurance company’s control. This document 426 does not create a civil cause of action by an 427 individual policyholder, or a class of policyholders, 428 against an individual insurer. 429 430 YOU HAVE THE RIGHT TO: 431 1. Receive from your insurance company an 432 acknowledgment of your reported claim within 14 days 433 after the time you communicated the claim, along with 434 necessary claim forms, including a proof-of-loss form, 435 instructions, and appropriate, up-to-date contact 436 information. 437 2. Upon written request, receive from your 438 insurance company within 30 days after you have 439 completed a proof-of-loss statement to your insurance 440 company, confirmation that your claim is covered in 441 full, partially covered, or denied, or receive a 442 written statement that your claim is being 443 investigated. 444 3. Within 90 days, receive full settlement 445 payment for your claim or payment of the undisputed 446 portion of your claim, or your insurance company’s 447 denial of your claim. 448 4. Free mediation of your disputed claim by the 449 Division of Consumer Services, under most 450 circumstances and subject to certain restrictions. 451 5. Neutral evaluation of your disputed claim, if 452 your claim is for damage caused by a sinkhole and is 453 covered by your policy. 454 6. Contact the Florida Department of Financial 455 Services Division of Consumer Services’ toll-free 456 helpline for assistance with any insurance claim or 457 questions pertaining to the handling of your claim. 458 You can reach the Helpline by phone at...toll free 459 phone number..., or you can seek assistance online at 460 the Florida Department of Financial Services Division 461 of Consumer Services’ website at...website address.... 462 463 YOU ARE ADVISED TO: 464 1. Contact your insurance company before entering 465 into any contract for repairs to confirm any managed 466 repair policy provisions or optional preferred 467 vendors. 468 2. Make and document emergency repairs that are 469 necessary to prevent further damage. Keep the damaged 470 property, if feasible, keep all receipts, and take 471 photographs of damage before and after any repairs. 472 3. Carefully read any contract that requires you 473 to pay out-of-pocket expenses or a fee that is based 474 on a percentage of the insurance proceeds that you 475 will receive for repairing or replacing your property. 476 4. Confirm that the contractor you choose is 477 licensed to do business in Florida. You can verify a 478 contractor’s license and check to see if there are any 479 complaints against him or her by calling the Florida 480 Department of Business and Professional Regulation. 481 You should also ask the contractor for references from 482 previous work. 483 5. Require all contractors to provide proof of 484 insurance before beginning repairs. 485 6. Take precautions if the damage requires you to 486 leave your home, including securing your property and 487 turning off your gas, water, and electricity, and 488 contacting your insurance company and provide a phone 489 number where you can be reached. 490 491 Section 11. Section 627.715, Florida Statutes, is created 492 to read: 493 627.715 Emergency mitigation services; agreements.— 494 (1) As used in this section, the term “emergency mitigation 495 services” means the delivery of goods or services that are 496 needed to mitigate damage caused by fire, water, or catastrophic 497 events when delay may exacerbate the damage to the covered 498 property. Services include the removal of contents, removal of 499 water or other contaminants, cleaning, sanitizing, incidental 500 demolition, or other treatment, including preventive activities. 501 (2) For residential property insurance, an agreement for 502 emergency mitigation services to which insurance proceeds may be 503 applied is valid only if: 504 (a) The agreement specifies in writing the estimated scope 505 and price of the work before it is performed; 506 (b) Any change from the original estimated scope and price 507 of the work is preapproved by the policyholder; and 508 (c) The work is performed by an individual or company 509 possessing a valid certification consistent with the most recent 510 Standard and Reference Guide for Professional Water Damage 511 Restoration, as developed by the Institute of Inspection, 512 Cleaning and Restoration Certification and approved by the 513 American National Standards Institute, or by a company that 514 possesses a valid Division I license under chapter 489, which is 515 providing services within the scope of that license. A company 516 is considered to be certified for the purposes of this paragraph 517 if the company representative who possesses a valid 518 certification personally supervises the emergency mitigation 519 services performed. 520 Section 12. Present subsections (3) through (5) of section 521 627.745, Florida Statutes, are amended, and a new subsection (4) 522 is added to that section, to read: 523 627.745 Mediation of claims.— 524 (3)(a)The department shall approve mediators to conduct 525 mediations pursuant to this section. 526 (a) All mediators must file an application under oath for 527 approval as a mediator. 528 (b) To qualify for approval as a mediator, an individuala529personmust meet one of the following qualifications: 530 1. Possess active certification by the Florida Supreme 531 Court as a circuit court mediator. A certified circuit court 532 mediator in a lapsed, suspended, sanctioned, or decertified 533 status is not eligible to participate in the mediation programa534masters or doctorate degree in psychology, counseling, business,535accounting, or economics, be a member of The Florida Bar, be536licensed as a certified public accountant, or demonstrate that537the applicant for approval has been actively engaged as a538qualified mediator for at least 4 years prior to July 1, 1990. 539 2. Be an approved department mediator as of July 1, 2014, 540 and have conducted at least one mediation on behalf of the 541 department within the 4 years immediately preceding thatthe542 date.the application for approval is filed with the department,543have completed a minimum of a 40-hour training program approved544by the department and successfully passed a final examination545included in the training program and approved by the department.546The training program shall include and address all of the547following:548a. Mediation theory.549b. Mediation process and techniques.550c. Standards of conduct for mediators.551d. Conflict management and intervention skills.552e. Insurance nomenclature.553 (4) The department shall deny an application, or suspend or 554 revoke its approval of a mediator, or the certification of a 555 neutral evaluator to serve as a mediator, if the department 556 finds that any of the following grounds exists: 557 (a) Lack of one or more of the qualifications specified in 558 this section for approval or certification. 559 (b) Material misstatement, misrepresentation, or fraud in 560 obtaining or attempting to obtain approval or certification. 561 (c) Demonstrated lack of fitness or trustworthiness to act 562 as a mediator or neutral evaluator. 563 (d) Fraudulent or dishonest practices in the conduct of 564 mediation or neutral evaluation or in the conduct of financial 565 services business. 566 (e) Violation of this code, of a lawful order or rule of 567 the department, or of the Florida Rules for Certified and Court 568 Appointed Mediators, or the aiding, instructing, or encouraging 569 of another to commit such violation. 570 (5)(4)The department shallmustadopt rules to administer 571 this section, including rules of procedure for claims mediation, 572 taking into consideration a system thatwhich: 573 (a) Is fair. 574 (b) Promotes settlement. 575 (c) Avoids delay. 576 (d) Is nonadversarial. 577 (e) Uses a framework for modern mediating technique. 578 (f) Controls costs and expenses of mediation. 579 (6)(5)Disclosures and information divulged in the 580 mediation process are not admissible in any subsequent action or 581 proceeding relating to the claim or to the cause of action 582 giving rise to the claim. A person demanding mediation under 583 this section may not demand or request mediation after a suitis584filedrelating to the same facts already mediated is filed. 585 Section 13. This act shall take effect July 1, 2014.