Bill Text: FL S0728 | 2012 | Regular Session | Introduced
Bill Title: Residential Property Insurance
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2012-03-09 - Died in Banking and Insurance [S0728 Detail]
Download: Florida-2012-S0728-Introduced.html
Florida Senate - 2012 SB 728 By Senator Ring 32-00374B-12 2012728__ 1 A bill to be entitled 2 An act relating to residential property insurance; 3 amending s. 627.40951, F.S., relating to checklists of 4 policy contents; applying provisions to commercial 5 lines residential insurance policies entered into on 6 or after a certain date; deleting obsolete provisions; 7 amending s. 627.4137, F.S.; revising provisions 8 relating to the disclosure of certain insurer and 9 policy information to claimants; amending s. 627.701, 10 F.S.; revising provisions relating to deductibles 11 included in policies entered into on or after a 12 certain date; allowing deductibles for windstorm 13 losses; providing that the failure to provide certain 14 statements on a policy will result in voiding certain 15 deductibles; providing that the deductible for 16 hurricane losses is based on dwelling policy limits 17 for insurance contracts entered into on or after a 18 certain date, specifying that certain provisions 19 relating to deductibles must be stated in the policy, 20 capping the amount of the deductible, and providing 21 that failure to provide certain notice requirements 22 voids a separate deductible for hurricane or windstorm 23 losses; providing an effective date. 24 25 Be It Enacted by the Legislature of the State of Florida: 26 27 Section 1. Section 627.40951, Florida Statutes, is amended 28 to read: 29 627.40951 Standard personal and commercial lines 30 residential insurance policy.— 31 (1) The Legislature finds that many consumers who filed 32 property loss claims as a result of the hurricanes that struck 33 this state in 2004 were inadequately insured due to the 34 difficulty consumers encounter in trying to understand the 35 complex nature of property insurance policies. The purpose and 36 intent of this section is to requirehaveproperty and casualty 37 insurers to offer standard personal and commercial lines 38 residential property insurance policies and standard checklists 39 of policy contents, in accordance with s. 627.4143 if 40 applicable, to consumers and to ensure that these policies and 41 checklists are written in a simple format with easily readable 42 language that will enable most consumers to understand the 43 principal benefits and coverage provided in the policy; the 44 principal exclusions and limitations or reductions contained in 45 the policy, including, but not limited to,deductibles, 46 coinsurance, and any other limitations or reductions; and any 47 additional coverage provided through any rider or endorsement 48 that accompanies the policy and renewal or cancellation 49 provisions. 50 (2)The Chief Financial Officer shall appoint an advisory51committee composed of two representatives of insurers currently52selling personal lines residential property insurance coverage,53two representatives of property and casualty agents, two54representatives of consumers, two representatives of the55Commissioner of Insurance Regulation, and the Insurance Consumer56Advocate or her or his designee. The Chief Financial Officer or57her or his designee shall serve as chair of the committee. The58committee shall develop policy language for coverage that59represents general industry standards in the market for60comprehensive coverage under personal lines residential61insurance policies and shall develop a checklist to be used with62each type of personal lines residential property insurance63policy. The committee shall review policies and related forms64written by Insurance Services Office, Inc. The committee shall65file a report containing its recommendations to the President of66the Senate and the Speaker of the House of Representatives by67January 15, 2006.AnNoinsurer is notshall berequired to 68 offer the standard personal or commercial lines residential 69 property insurance policy unless required by further act of the 70 Legislature. 71 (3) This section applies to commercial lines residential 72 property insurance policies entered into on or after July 1, 73 2012. 74 Section 2. Section 627.4137, Florida Statutes, is amended 75 to read: 76 627.4137 Disclosure of certain information required.— 77 (1) Upon the written request of the claimant or the 78 claimant’s attorney, the insured, or her or his insurance agent, 79 shall disclose the name and coverage of each insurer that may 80 pay all or a portion of any liability claim by a claimant and 81 forward such request to all affected insurers within 30 days 82 after the request. 83 (2)(1)Each insurer thatwhich does ormay provide 84 liability insurance coverage to pay all or a portion of any 85 claim thatwhichmight be made shall provide, within 30 days 86 after receipt of the written request of the claimant, a 87 statement, under oath, of a corporate officer or the insurer’s 88 claims manager or superintendent setting forth the following 89 information with regard to each known policy of insurance, 90 including excess or umbrella insurance: 91 (a) The name of the insurer. 92 (b) The name of each insured. 93 (c) The limits of the liability coverage. 94 (d) A statement of any policy or coverage defense that 95whichsuch insurer reasonably believes is available to such 96 insurer at the time of filing such statement. 97 (e) A copy of the policy. 98 99In addition, the insured, or her or his insurance agent, upon100written request of the claimant or the claimant’s attorney,101shall disclose the name and coverage of each known insurer to102the claimant and shall forward such request for information as103required by this subsection to all affected insurers. The104insurer shall then supply the information required in this105subsection to the claimant within 30 days of receipt of such106request.107 (3)(2)The statement required by paragraph (2)(d) must 108subsection (1) shallbe amended immediately upon discovery of 109 facts calling for an amendment to such statement. 110 (4)(3)Any request made to a self-insured corporation 111 pursuant to this section shall be sent by certified mail to the 112 registered agent of the disclosing entity. 113 Section 3. Subsection (1), paragraph (a) of subsection (4), 114 and subsection (8) of section 627.701, Florida Statutes, are 115 amended to read: 116 627.701 Liability of insureds; coinsurance; deductibles.— 117 (1) A property insurer, including a surplus line carrier 118 issuing a policy of insurance in this state, may issue an 119 insurance policy or contract coveringeitherreal or personal 120 property in this state which requirescontains provisions121requiringthe insured to be liable as a coinsurer with the 122 insurer issuing the policy for any part of the loss or damage by 123 covered peril to the property described in the policy only if: 124 (a) The following words are printed or stamped on the face 125 of the policy, or a form containing the following words is 126 attached to the policy: “Coinsurance contract: The rate charged 127 in this policy is based upon the use of the coinsurance clause 128 attached to this policy, with the consent of the insured.”; 129 (b) The coinsurance clause in the policy is clearly 130 identifiable; and 131 (c) The rate for the insurance with or without the 132 coinsurance clause is furnished the insured upon his or her 133 request. 134 (4)(a) AAnypolicy that contains any type ofaseparate 135 hurricane or windstorm deductible must, on its face, include in 136 at least 18-point, boldfaced typeno smaller than 18 pointsthe 137 following statement: “THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE 138 FOR HURRICANE OR WINDSTORM LOSSES, WHICH MAY RESULT IN HIGH OUT 139 OF-POCKET EXPENSES TO YOU.” A policy containing a coinsurance 140 provision applicable to hurricane or windstorm losses must, on 141 its face, include in at least 18-point, boldfaced typeno142smaller than 18 pointsthe following statement: “THIS POLICY 143 CONTAINS A CO-PAY PROVISION THAT MAY RESULT IN HIGH OUT-OF 144 POCKET EXPENSES TO YOU.” Failure to comply with this paragraph 145 voids any separate deductible for hurricane or windstorm losses 146 and the policy reverts to the all-covered-perils deductible 147 included on policies entered into on or after July 1, 2012. 148 (8) Notwithstandingtheother provisions of this section or 149ofother law, but only as to hurricane coverage as defined in s. 150 627.4025(2) for commercial lines residential coverages, an 151 insurer may offer a deductiblein an amountnot exceeding 10 152 percent of the dwelling policy limitsinsured valueif, at the 153 time of such offer and at each renewal, the insurer also offers 154to the policyholdera deductiblein the amountof 3 percent of 155 the dwelling policy limitsinsured value.Nothing in156 (a) This subsection does not prohibitprohibitsany 157 deductible otherwise authorized by this section. 158 (b) All forms by which the offers authorized in this 159 subsection are made or required to be made mustshallbeon160forms that areadopted or approved by the commission or office. 161 (c) For insurance contracts entered into on or after July 162 1, 2012: 163 1. The policy must state on the declarations page the 164 dwelling policy limits as an aggregate dollar amount and the 165 deductible as an aggregate dollar amount, as well as the 166 percentage. 167 2. If the deductible is stated on a per-building basis, the 168 dwelling policy limits must also be clearly stated on a per 169 building basis and the dollar amount of the deductible for each 170 building must also be identified on the same page. 171 3. Failure to comply with the provisions of this section 172 voids any separate deductible for hurricane or windstorm losses, 173 and the applicable deductible for the policy reverts to the 174 policy’s all-covered-perils deductible. 175 (d) As used in this subsection, the term “dwelling policy 176 limits” means the maximum amount of insurance coverage on the 177 building structure itself as stated on the declarations page of 178 the policy, not including coverage for alternative living 179 expenses, contents, loss of income, or any other optional 180 coverage. 181 Section 4. This act shall take effect July 1, 2012.