Bill Text: FL S1066 | 2024 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Consumer Protection
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Introduced - Dead) 2024-03-05 - Laid on Table, refer to CS/CS/HB 939 [S1066 Detail]
Download: Florida-2024-S1066-Comm_Sub.html
Bill Title: Consumer Protection
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Introduced - Dead) 2024-03-05 - Laid on Table, refer to CS/CS/HB 939 [S1066 Detail]
Download: Florida-2024-S1066-Comm_Sub.html
Florida Senate - 2024 CS for CS for SB 1066
By the Committees on Judiciary; and Banking and Insurance; and
Senator Burton
590-02911-24 20241066c2
1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 45.032, F.S.; defining the term “nonprofit
4 organization”; requiring certain persons to disclose
5 to the court certain fees to be paid to himself or
6 herself; prohibiting such persons from charging the
7 owner of record more than a specified amount;
8 requiring the court to hold certain claims invalid;
9 providing that any nonprofit organization has
10 unconditional standing in certain matters; providing
11 that a nonprofit organization is entitled to certain
12 fees and costs under certain circumstances; making a
13 technical change; amending s. 45.033, F.S.; revising
14 the circumstances in which a transferee or assignee is
15 entitled to surplus funds or a portion or percentage
16 of surplus funds; providing that certain voluntary
17 transfers or assignments are invalid and void;
18 amending s. 197.582, F.S.; requiring the clerk, within
19 a specified timeframe, to file an interpleader action
20 under certain circumstances; revising the
21 circumstances when the clerk may file an interpleader
22 action; prohibiting a property owner from transferring
23 or assigning its interest in surplus funds to any
24 party; providing an exception; providing that certain
25 transfers or assignments are invalid; requiring
26 certain persons to disclose to the court certain fees
27 to be paid to himself or herself; prohibiting such
28 persons from charging the owner of record more than a
29 specified amount; providing that a nonprofit
30 organization has unconditional standing in certain
31 matters; providing that a nonprofit organization is
32 entitled to certain fees and costs under certain
33 circumstances; making a technical change; amending s.
34 212.134, F.S.; defining terms; revising requirements
35 for payment settlement entities, or their electronic
36 payment facilitators or contracted third parties, in
37 submitting information returns to the Department of
38 Revenue; specifying requirements for third party
39 settlement organizations that conduct certain
40 transactions; providing applicability; creating s.
41 286.312, F.S.; prohibiting agencies from entering into
42 certain contracts or agreements; amending s. 489.147,
43 F.S.; authorizing an insured or claimant to cancel a
44 contract to replace or repair a rook without penalty
45 or obligation under certain circumstances; defining
46 the term “official start date”; requiring certain
47 contractors to include certain language in contracts
48 executed at a specified time; requiring an insured or
49 claimant to send a notice of cancellation under
50 certain circumstances; amending s. 559.9611, F.S.;
51 revising the definition of the term “depository
52 institution”; amending s. 624.424, F.S.; providing
53 requirements for certain insurers’ accountants;
54 amending s. 626.854, F.S.; revising applicability of
55 provisions relating to public adjusters; amending s.
56 626.8796, F.S.; revising the content of certain public
57 adjuster contracts; amending s. 627.43141, F.S.;
58 specifying requirements, after a specified date, for
59 certain notices regarding a change in policy terms;
60 amending s. 627.6426, F.S.; revising the disclosure
61 requirements of contracts for short-term health
62 insurance; amending s. 627.70132, F.S.; requiring a
63 condominium association to give a notice of claim for
64 loss assessment coverage to its insurer by a certain
65 date; amending s. 791.012, F.S.; updating the source
66 of the code for outdoor display of fireworks;
67 providing an effective date.
68
69 Be It Enacted by the Legislature of the State of Florida:
70
71 Section 1. Present paragraphs (a), (b), and (c) of
72 subsection (1) and present subsection (4) of section 45.032,
73 Florida Statutes, are redesignated as paragraphs (b), (c), and
74 (d) of subsection (1) and subsection (5), respectively, a new
75 paragraph (a) is added to subsection (1) and a new subsection
76 (4) is added to that section, and paragraphs (a) and (b) of
77 subsection (3) of that section are amended, to read:
78 45.032 Disbursement of surplus funds after judicial sale.—
79 (1) For purposes of ss. 45.031-45.035, the term:
80 (a) “Nonprofit organization” means a charitable
81 organization that:
82 1. Is exempt from federal income tax pursuant to s.
83 501(c)(3) of the Internal Revenue Code; and
84 2. Is a Florida entity formed under chapter 605, chapter
85 607, or chapter 617 and whose principal office is located in
86 this state.
87 (3) During the period that the clerk holds the surplus
88 pending a court order:
89 (a) If the owner of record claims the surplus before the
90 date that the clerk reports it as unclaimed and there is no
91 subordinate lienholder, the court must shall order the clerk to
92 deduct any applicable service charges from the surplus and pay
93 the remainder to the owner of record. Any person representing an
94 owner of record in claiming the surplus shall disclose to the
95 court the total amount of compensation and other fees to be paid
96 to himself or herself and may not charge the owner of record
97 more than 5 percent of the surplus or $1,000, whichever is
98 greater. The clerk may establish a reasonable requirement that
99 the owner of record prove his or her identity before receiving
100 the disbursement. The clerk may assist an owner of record in
101 making a claim. An owner of record may use the following form in
102 making a claim:
103
104 (Caption of Action)
105
106 OWNER’S CLAIM FOR
107 MORTGAGE FORECLOSURE SURPLUS
108
109 State of ....
110 County of ....
111 Under penalty of perjury, I (we) hereby certify that:
112 1. I was (we were) the owner of the following described
113 real property in .... County, Florida, prior to the foreclosure
114 sale and as of the date of the filing of the lis pendens:
115
116 ...(Legal description of real property)...
117
118 2. I (we) do not owe any money on any mortgage on the
119 property that was foreclosed other than the one that was paid
120 off by the foreclosure.
121 3. I (we) do not owe any money that is the subject of an
122 unpaid judgment, tax warrant, condominium lien, cooperative
123 lien, or homeowners’ association.
124 4. I am (we are) not currently in bankruptcy.
125 5. I (we) have not sold or assigned my (our) right to the
126 mortgage surplus.
127 6. My (our) new address is: .....
128 7. If there is more than one owner entitled to the surplus,
129 we have agreed that the surplus should be paid .... jointly, or
130 to: ...., at the following address: .....
131 8. I (WE) UNDERSTAND THAT I (WE) AM (ARE) NOT REQUIRED TO
132 HAVE A LAWYER OR ANY OTHER REPRESENTATION AND I (WE) DO NOT HAVE
133 TO ASSIGN MY (OUR) RIGHTS TO ANYONE ELSE IN ORDER TO CLAIM ANY
134 MONEY TO WHICH I (WE) MAY BE ENTITLED.
135 9. I (WE) UNDERSTAND THAT THIS STATEMENT IS GIVEN UNDER
136 OATH, AND IF ANY STATEMENTS ARE UNTRUE THAT I (WE) MAY BE
137 PROSECUTED CRIMINALLY FOR PERJURY.
138
139 ...(Signatures)...
140
141 Sworn to (or affirmed) and subscribed before me this ....
142 day of ...., ...(year)..., by ...(name of person making
143 statement)....
144 ...(Signature of Notary Public - State of Florida)...
145 ...(Print, Type, or Stamp Commissioned Name of Notary
146 Public)...
147
148 Personally Known .... OR Produced Identification ....
149 Type of Identification Produced..........................
150 (b) If any person other than the owner of record claims an
151 interest in the proceeds prior to the date that the clerk
152 reports the surplus as unclaimed or if the owner of record files
153 a claim for the surplus but acknowledges that one or more other
154 persons may be entitled to part or all of the surplus, the court
155 shall set an evidentiary hearing to determine entitlement to the
156 surplus. At the evidentiary hearing, an equity assignee has the
157 burden of proving that he or she is entitled to some or all of
158 the surplus funds. The court may grant summary judgment to a
159 subordinate lienholder prior to or at the evidentiary hearing.
160 The court shall consider the factors in s. 45.033 when hearing a
161 claim that any person other than a subordinate lienholder or the
162 owner of record is entitled to the surplus funds and shall hold
163 any such claim that fails to qualify under s. 45.033 invalid.
164 (4) Any nonprofit organization has unconditional standing
165 to appear in any matter to oppose agreements that do not comply
166 with this section or s. 45.033. If it is the prevailing party,
167 the nonprofit organization is entitled to fees and costs,
168 payable from the surplus, equal to the lesser of 5 percent of
169 the surplus, or the fee stated in the opposed agreement.
170 Section 2. Paragraphs (a), (b), and (d) of subsection (3)
171 and subsections (5) and (6) of section 45.033, Florida Statutes,
172 are amended, to read:
173 45.033 Sale or assignment of rights to surplus funds in a
174 property subject to foreclosure.—
175 (3) A voluntary transfer or assignment shall be a transfer
176 or assignment qualified under this subsection, thereby entitling
177 the transferee or assignee to the surplus funds or a portion or
178 percentage of the surplus funds, if:
179 (a) The transfer or assignment is in writing and the
180 instrument:
181 1. Is executed after the foreclosure sale If executed prior
182 to the foreclosure sale, includes a financial disclosure that
183 specifies the assessed value of the property, a statement that
184 the assessed value may be lower than the actual value of the
185 property, the approximate amount of any debt encumbering the
186 property, and the approximate amount of any equity in the
187 property. If the instrument was executed after the foreclosure
188 sale, the instrument must also specify the foreclosure sale
189 price and the amount of the surplus.
190 2. Includes a statement that the owner does not need an
191 attorney or other representative to recover surplus funds in a
192 foreclosure.
193 3. Specifies all forms of consideration paid for the rights
194 to the property or the assignment of the rights to any surplus
195 funds.
196 (b) The transferee or assignee is a nonprofit organization
197 transfer or assignment is filed with the court on or before 60
198 days after the filing of the certificate of disbursements.
199 (d) The total compensation paid or payable, or earned or
200 expected to be earned, by the transferee or assignee does not
201 exceed 5 percent of the surplus or $1,000, whichever is greater
202 12 percent of the surplus.
203 (5) If the court finds that A voluntary transfer or
204 assignment that does not qualify under subsection (3) is invalid
205 and void but that the transfer or assignment was procured in
206 good faith and with no intent to defraud the transferor or
207 assignor, the court may order the clerk to pay the claim of the
208 transferee or assignee after payment of timely filed claims of
209 subordinate lienholders.
210 (6) If a voluntary transfer or assignment of the surplus is
211 set aside, the owner of record shall be entitled to payment of
212 the surplus after payment of timely filed claims of subordinate
213 lienholders, but the transferee or assignee may seek in a
214 separate proceeding repayment of any consideration paid for the
215 transfer or assignment.
216 Section 3. Subsection (6) of section 197.582, Florida
217 Statutes, is amended, and a new subsection (10) is added to that
218 section, to read:
219 197.582 Disbursement of proceeds of sale.—
220 (6) Within 90 days after the claim period expires, the
221 clerk must file an interpleader action in the circuit court if a
222 claim is made by the property owner, an alleged assignee or
223 transferee of the property owner, or any party purporting to
224 represent the property owner. If any other person described in
225 s. 197.502(7) files a claim, and no claim is filed by the
226 property owner, the clerk may either file an interpleader action
227 in circuit court, if potentially conflicting claims to the funds
228 exist, or pay the surplus funds according to the clerk’s
229 determination of the priority of claims using the information
230 provided by the claimants under subsection (3). Fees and costs
231 incurred by the clerk in determining whether an interpleader
232 action should be filed shall be paid from the surplus funds. If
233 the clerk files an interpleader action, the court must shall
234 determine the distribution of funds based upon the priority of
235 liens filed. The clerk may move the court to award reasonable
236 fees and costs from the interpleaded funds. An action to require
237 payment of surplus funds is not ripe until the claim and review
238 periods expire. The failure of a person described in s.
239 197.502(4), other than the property owner, to file a claim for
240 surplus funds within the 120 days constitutes a waiver of all
241 interest in the surplus funds, and all claims for them are
242 forever barred.
243 (10)(a) A property owner may not transfer or assign its
244 interest in surplus funds to any party, except a nonprofit
245 organization that is exempt from federal income tax pursuant to
246 s. 501(c)(3) of the Internal Revenue Code, and is a Florida
247 entity formed under chapter 605, chapter 607, or chapter 617 and
248 whose principal office is located in this state. Any assignment
249 or transfer that does not conform with this paragraph is deemed
250 invalid.
251 (b) Any person representing a property owner in claiming
252 the surplus funds shall disclose to the court the total amount
253 of compensation and other fees to be paid to himself or herself
254 and may not charge the property owner more than 5 percent of the
255 surplus or $1,000, whichever is greater.
256 (c) Any nonprofit organization shall have unconditional
257 standing to appear in any matter to oppose agreements that do
258 not comply with this section. If it is the prevailing party, the
259 nonprofit organization is entitled to fees and costs, payable
260 from the surplus, equal to the lesser of 5 percent of the
261 surplus, or the fee stated in the opposed agreement.
262 Section 4. Section 212.134, Florida Statutes, is amended to
263 read:
264 212.134 Information returns relating to payment-card and
265 third-party network transactions.—
266 (1) For purposes of this section, the term:
267 (a) “Participating payee” has the same meaning as in s.
268 6050W of the Internal Revenue Code.
269 (b) “Return” or “information return” means IRS Form 1099-K
270 required under s. 6050W of the Internal Revenue Code.
271 (c) “Third party network transaction” has the same meaning
272 as in s. 6050W of the Internal Revenue Code.
273 (d) “Third party settlement organization” has the same
274 meaning as in s. 6050W of the Internal Revenue Code.
275 (2) For each year in which a payment settlement entity, an
276 electronic payment facilitator, or other third party contracted
277 with the payment settlement entity to make payments to settle
278 reportable payment transactions on behalf of the payment
279 settlement entity must file a return pursuant to s. 6050W of the
280 Internal Revenue Code, for participating payees with an address
281 in this state, the entity, the facilitator, or the third party
282 must submit the information in the return to the department by
283 the 30th day after filing the federal return. The format of the
284 information returns required must be either a copy of such
285 information returns or a copy of such information returns
286 related to participating payees with an address in the state.
287 For purposes of this subsection, the term “payment settlement
288 entity” has the same meaning as provided in s. 6050W of the
289 Internal Revenue Code.
290 (3)(2) All reports of returns submitted to the department
291 under this section must be in an electronic format.
292 (4)(3) Any payment settlement entity, facilitator, or third
293 party failing to file the information return required, filing an
294 incomplete information return, or not filing an information
295 return within the time prescribed is subject to a penalty of
296 $1,000 for each failure, if the failure is for not more than 30
297 days, with an additional $1,000 for each month or fraction of a
298 month during which each failure continues. The total amount of
299 penalty imposed on a reporting entity may not exceed $10,000
300 annually.
301 (5)(4) The executive director or his or her designee may
302 waive the penalty if he or she determines that the failure to
303 timely file an information return was due to reasonable cause
304 and not due to willful negligence, willful neglect, or fraud.
305 (6) All third party settlement organizations that conduct
306 transactions involving a participating payee with an address in
307 this state shall create a mechanism for senders of payments to
308 identify whether a payment to a payee is for goods and services
309 or is personal. The mechanism must clearly indicate the sender’s
310 requirement to indicate the appropriate transaction type. The
311 sender of the payment is responsible for indicating the
312 appropriate transaction type. All third party settlement
313 organizations shall maintain records that clearly identify
314 whether a transaction, as designated by the sender of the
315 payment, is a transaction for goods and services or is personal.
316 The information in the return submitted to the department under
317 subsection (2) for such entities must be limited to transactions
318 for goods and services.
319 (7) Notwithstanding this section, subsection (6) does not
320 apply to a third party settlement organization if a contractual
321 agreement or arrangement to provide a third party payment
322 network to a participating payee requires the third party
323 settlement organization solely to settle third party network
324 transactions for the provision of goods and services.
325 Section 5. Section 286.312, Florida Statutes, is created to
326 read:
327 286.312 Prohibited use of state funds; censorship or
328 blacklisting of news sources.—An agency may not enter into a
329 contract or other agreement with an entity whose function is to
330 advise the censorship or blacklisting of news sources based on
331 subjective criteria or political biases under the stated goal of
332 fact-checking or removing misinformation.
333 Section 6. Section 489.147, Florida Statutes, is amended to
334 read:
335 489.147 Prohibited property insurance practices; contract
336 requirements.—
337 (1) As used in this section, the term:
338 (a) “Prohibited advertisement” means any written or
339 electronic communication by a contractor which encourages,
340 instructs, or induces a consumer to contact a contractor or
341 public adjuster for the purpose of making an insurance claim for
342 roof damage, if such communication does not state in a font size
343 of at least 12 points and at least half as large as the largest
344 font size used in the communication that:
345 1. The consumer is responsible for payment of any insurance
346 deductible;
347 2. It is insurance fraud punishable as a felony of the
348 third degree for a contractor to knowingly or willfully, and
349 with intent to injure, defraud, or deceive, pay, waive, or
350 rebate all or part of an insurance deductible applicable to
351 payment to the contractor for repairs to a property covered by a
352 property insurance policy; and
353 3. It is insurance fraud punishable as a felony of the
354 third degree to intentionally file an insurance claim containing
355 any false, incomplete, or misleading information.
356
357 The term includes, but is not limited to, door hangers, business
358 cards, magnets, flyers, pamphlets, and e-mails.
359 (b) “Soliciting” means contacting:
360 1. In person;
361 2. By electronic means, including, but not limited to, e
362 mail, telephone, and any other real-time communication directed
363 to a specific person; or
364 3. By delivery to a specific person.
365 (2) A contractor may not directly or indirectly engage in
366 any of the following practices:
367 (a) Soliciting a residential property owner by means of a
368 prohibited advertisement.
369 (b) Offering to a residential property owner a rebate,
370 gift, gift card, cash, coupon, waiver of any insurance
371 deductible, or any other thing of value in exchange for:
372 1. Allowing the contractor to conduct an inspection of the
373 residential property owner’s roof; or
374 2. Making an insurance claim for damage to the residential
375 property owner’s roof.
376 (c) Offering, delivering, receiving, or accepting any
377 compensation, inducement, or reward, for the referral of any
378 services for which property insurance proceeds are payable.
379 Payment by the residential property owner or insurance company
380 to a contractor for roofing services rendered does not
381 constitute compensation for a referral.
382 (d) Interpreting policy provisions or advising an insured
383 regarding coverages or duties under the insured’s property
384 insurance policy or adjusting a property insurance claim on
385 behalf of the insured, unless the contractor holds a license as
386 a public adjuster pursuant to part VI of chapter 626.
387 (e) Providing an insured with an agreement authorizing
388 repairs without providing a good faith estimate of the itemized
389 and detailed cost of services and materials for repairs
390 undertaken pursuant to a property insurance claim. A contractor
391 does not violate this paragraph if, as a result of the process
392 of the insurer adjusting a claim, the actual cost of repairs
393 differs from the initial estimate.
394 (3) A contractor who violates this section is subject to
395 disciplinary proceedings as set forth in s. 489.129. A
396 contractor may receive up to a $10,000 fine for each violation
397 of this section.
398 (4) For the purposes of this section:
399 (a) The acts of any person on behalf of a contractor,
400 including, but not limited to, the acts of a compensated
401 employee or a nonemployee who is compensated for soliciting,
402 shall be considered the actions of the contractor.
403 (b) An unlicensed person who engages in an act prohibited
404 by this section is guilty of unlicensed contracting and is
405 subject to the penalties set forth in s. 489.13. Notwithstanding
406 s. 489.13(3), an unlicensed person who violates this section may
407 be fined up to $10,000 for each violation.
408 (5) A contractor may not execute a contract with a
409 residential property owner to repair or replace a roof without
410 including a notice that the contractor may not engage in the
411 practices set forth in paragraph (2)(b). If the contractor fails
412 to include such notice, the residential property owner may void
413 the contract within 10 days after executing it.
414 (6)(a) An insured or a claimant may cancel a contract to
415 replace or repair a roof without penalty or obligation until 10
416 days following the execution of the contract or until the
417 official start date, whichever comes first, if the contract was
418 entered into based on events that are the subject of a
419 declaration of a state of emergency by the Governor. For the
420 purposes of this subsection, the term “official start date” is
421 the date on which the work on the roof commences.
422 (b) A contractor who executes a contract to replace or
423 repair a roof of a residential property during a declaration of
424 a state of emergency must include in the contract the following
425 language, in bold type of not less than 18 points, immediately
426 before the space reserved for the signature of the residential
427 property owner:
428
429 You, the residential property owner, may cancel this
430 contract without penalty or obligation until 10 days
431 following the execution of the contract or until the
432 official start date, whichever comes first, because
433 this contract was entered into during a declaration of
434 a state of emergency by the Governor. It is the
435 responsibility of your contractor to include an
436 official start date clause in your contact. This
437 clause must state the official start date and the work
438 that will be commenced on that date. If there is no
439 official start date clause in the contract, the
440 contract may be voided within 10 days following the
441 execution of the contract.
442
443 (c) If the insured or claimant desires to cancel the
444 contract under this subsection, such person must send a notice
445 of cancellation by certified mail, return receipt requested, or
446 other form of mailing that provides proof thereof, at the
447 address specified in the contract.
448 Section 7. Subsection (9) of section 559.9611, Florida
449 Statutes, is amended to read:
450 559.9611 Definitions.—As used in this part, the term:
451 (9) “Depository institution” means a bank, a credit union,
452 a savings bank, a savings and loan association, a savings or
453 thrift association, or an industrial loan company doing business
454 under the authority of a charter issued by the United States,
455 this state, or any other state, district, territory, or
456 commonwealth of the United States which is authorized to
457 transact business in this state and whose deposits or share
458 accounts are insured by the Federal Deposit Insurance
459 Corporation or the National Credit Union Share Insurance Fund
460 Florida state-chartered bank, savings bank, credit union, or
461 trust company, or a federal savings or thrift association, bank,
462 credit union, savings bank, or thrift.
463 Section 8. Paragraph (d) of subsection (8) of section
464 624.424, Florida Statutes, is amended to read:
465 624.424 Annual statement and other information.—
466 (8)
467 (d) Upon creation of continuing education required under
468 this paragraph, the certified public accountant who prepares the
469 audit must be licensed to practice pursuant to chapter 473 and
470 must have completed at least 4 hours of insurance-related
471 continuing education during each 2-year continuing education
472 cycle. An insurer may not use the same accountant or partner of
473 an accounting firm responsible for preparing the report required
474 by this subsection for more than 5 consecutive years. Following
475 this period, the insurer may not use such accountant or partner
476 for a period of 5 years, but may use another accountant or
477 partner of the same firm. An insurer may request the office to
478 waive this prohibition based upon an unusual hardship to the
479 insurer and a determination that the accountant is exercising
480 independent judgment that is not unduly influenced by the
481 insurer considering such factors as the number of partners,
482 expertise of the partners or the number of insurance clients of
483 the accounting firm; the premium volume of the insurer; and the
484 number of jurisdictions in which the insurer transacts business.
485 Section 9. Subsection (19) of section 626.854, Florida
486 Statutes, is amended, and subsections (5) through (18) of that
487 section are republished, to read:
488 626.854 “Public adjuster” defined; prohibitions.—The
489 Legislature finds that it is necessary for the protection of the
490 public to regulate public insurance adjusters and to prevent the
491 unauthorized practice of law.
492 (5) A public adjuster may not directly or indirectly
493 through any other person or entity solicit an insured or
494 claimant by any means except on Monday through Saturday of each
495 week and only between the hours of 8 a.m. and 8 p.m. on those
496 days.
497 (6) When entering a contract for adjuster services after
498 July 1, 2023, a public adjuster:
499 (a) May not collect a fee for services on payments made to
500 a named insured unless they have a written contract with the
501 named insured, or the named insured’s legal representative.
502 (b) May not contract for services to be provided by a third
503 party on behalf of the named insured or in pursuit of settlement
504 of the named insured’s claim, if the cost of those services is
505 to be borne by the named insured, unless the named insured
506 agrees in writing to procure these services and such agreement
507 is entered into subsequent to the date of the contract for
508 public adjusting services.
509 (c) If a public adjuster contracts with a third-party
510 service provider to assist with the settlement of the named
511 insured’s claim, without first obtaining the insured’s written
512 consent, payment of the third party’s fees must be made by the
513 public adjuster and may not be charged back to the named
514 insured.
515 (d) If a public adjuster represents anyone other than the
516 named insured in a claim, the public adjuster fees shall be paid
517 by the third party and may not be charged back to the named
518 insured.
519 (7) An insured or claimant may cancel a public adjuster’s
520 contract to adjust a claim without penalty or obligation within
521 10 days after the date on which the contract is executed. If the
522 contract was entered into based on events that are the subject
523 of a declaration of a state of emergency by the Governor, an
524 insured or claimant may cancel the public adjuster’s contract to
525 adjust a claim without penalty or obligation within 30 days
526 after the date of loss or 10 days after the date on which the
527 contract is executed, whichever is longer. The public adjuster’s
528 contract must contain the following language in minimum 18-point
529 bold type immediately before the space reserved in the contract
530 for the signature of the insured or claimant:
531
532 “You, the insured, may cancel this contract for any
533 reason without penalty or obligation to you within 10
534 days after the date of this contract. If this contract
535 was entered into based on events that are the subject
536 of a declaration of a state of emergency by the
537 Governor, you may cancel this contract for any reason
538 without penalty or obligation to you within 30 days
539 after the date of loss or 10 days after the date on
540 which the contract is executed, whichever is longer.
541 You may also cancel the contract without penalty or
542 obligation to you if I, as your public adjuster, fail
543 to provide you and your insurer a copy of a written
544 estimate within 60 days of the execution of the
545 contract, unless the failure to provide the estimate
546 within 60 days is caused by factors beyond my control,
547 in accordance with s. 627.70131(5)(a)2., Florida
548 Statutes. The 60-day cancellation period for failure
549 to provide a written estimate shall cease on the date
550 I have provided you with the written estimate.”
551
552 The notice of cancellation shall be provided to ...(name of
553 public adjuster)..., submitted in writing and sent by certified
554 mail, return receipt requested, or other form of mailing that
555 provides proof thereof, at the address specified in the
556 contract.
557 (8) It is an unfair and deceptive insurance trade practice
558 pursuant to s. 626.9541 for a public adjuster or any other
559 person to circulate or disseminate any advertisement,
560 announcement, or statement containing any assertion,
561 representation, or statement with respect to the business of
562 insurance which is untrue, deceptive, or misleading.
563 (a) The following statements, made in any public adjuster’s
564 advertisement or solicitation, are considered deceptive or
565 misleading:
566 1. A statement or representation that invites an insured
567 policyholder to submit a claim when the policyholder does not
568 have covered damage to insured property.
569 2. A statement or representation that invites an insured
570 policyholder to submit a claim by offering monetary or other
571 valuable inducement.
572 3. A statement or representation that invites an insured
573 policyholder to submit a claim by stating that there is “no
574 risk” to the policyholder by submitting such claim.
575 4. A statement or representation, or use of a logo or
576 shield, that implies or could mistakenly be construed to imply
577 that the solicitation was issued or distributed by a
578 governmental agency or is sanctioned or endorsed by a
579 governmental agency.
580 (b) For purposes of this paragraph, the term “written
581 advertisement” includes only newspapers, magazines, flyers, and
582 bulk mailers. The following disclaimer, which is not required to
583 be printed on standard size business cards, must be added in
584 bold print and capital letters in typeface no smaller than the
585 typeface of the body of the text to all written advertisements
586 by a public adjuster:
587
588 “THIS IS A SOLICITATION FOR BUSINESS. IF YOU HAVE HAD
589 A CLAIM FOR AN INSURED PROPERTY LOSS OR DAMAGE AND YOU
590 ARE SATISFIED WITH THE PAYMENT BY YOUR INSURER, YOU
591 MAY DISREGARD THIS ADVERTISEMENT.”
592
593 (9) A public adjuster, a public adjuster apprentice, or any
594 person or entity acting on behalf of a public adjuster or public
595 adjuster apprentice may not give or offer to give a monetary
596 loan or advance to a client or prospective client.
597 (10) A public adjuster, public adjuster apprentice, or any
598 individual or entity acting on behalf of a public adjuster or
599 public adjuster apprentice may not give or offer to give,
600 directly or indirectly, any article of merchandise having a
601 value in excess of $25 to any individual for the purpose of
602 advertising or as an inducement to entering into a contract with
603 a public adjuster.
604 (11)(a) If a public adjuster enters into a contract with an
605 insured or claimant to reopen a claim or file a supplemental
606 claim that seeks additional payments for a claim that has been
607 previously paid in part or in full or settled by the insurer,
608 the public adjuster may not charge, agree to, or accept from any
609 source compensation, payment, commission, fee, or any other
610 thing of value based on a previous settlement or previous claim
611 payments by the insurer for the same cause of loss. The charge,
612 compensation, payment, commission, fee, or any other thing of
613 value must be based only on the claim payments or settlements
614 paid to the insured, exclusive of attorney fees and costs,
615 obtained through the work of the public adjuster after entering
616 into the contract with the insured or claimant. Compensation for
617 the reopened or supplemental claim may not exceed 20 percent of
618 the reopened or supplemental claim payment. In no event shall
619 the contracts described in this paragraph exceed the limitations
620 in paragraph (b).
621 (b) A public adjuster may not charge, agree to, or accept
622 from any source compensation, payment, commission, fee, or any
623 other thing of value in excess of:
624 1. Ten percent of the amount of insurance claim payments or
625 settlements, exclusive of attorney fees and costs, paid to the
626 insured by the insurer for claims based on events that are the
627 subject of a declaration of a state of emergency by the
628 Governor. This provision applies to claims made during the year
629 after the declaration of emergency. After that year, the
630 limitations in subparagraph 2. apply.
631 2. Twenty percent of the amount of insurance claim payments
632 or settlements, exclusive of attorney fees and costs, paid to
633 the insured by the insurer for claims that are not based on
634 events that are the subject of a declaration of a state of
635 emergency by the Governor.
636 3. One percent of the amount of insurance claim payments or
637 settlements, paid to the insured by the insurer for any coverage
638 part of the policy where the claim payment or written agreement
639 by the insurer to pay is equal to or greater than the policy
640 limit for that part of the policy, if the payment or written
641 commitment to pay is provided within 14 days after the date of
642 loss or within 10 days after the date on which the public
643 adjusting contract is executed, whichever is later.
644 4. Zero percent of the amount of insurance claim payments
645 or settlements, paid to the insured by the insurer for any
646 coverage part of the policy where the claim payment or written
647 agreement by the insurer to pay occurs before the date on which
648 the public adjusting contract is executed.
649 (c) Insurance claim payments made by the insurer do not
650 include policy deductibles, and public adjuster compensation may
651 not be based on the deductible portion of a claim.
652 (d) Public adjuster compensation may not be based on
653 amounts attributable to additional living expenses, unless such
654 compensation is affirmatively agreed to in a separate agreement
655 that includes a disclosure in substantially the following form:
656
657 “I agree to retain and compensate the public adjuster
658 for adjusting my additional living expenses and
659 securing payment from my insurer for amounts
660 attributable to additional living expenses payable
661 under the policy issued on my (home/mobile
662 home/condominium unit).”
663
664 (e) Public adjuster rate of compensation may not be
665 increased based solely on the fact that the claim is litigated.
666 (f) Any maneuver, shift, or device through which the limits
667 on compensation set forth in this subsection are exceeded is a
668 violation of this chapter punishable as provided under s.
669 626.8698.
670 (12)(a) Each public adjuster must provide to the claimant
671 or insured a written estimate of the loss to assist in the
672 submission of a proof of loss or any other claim for payment of
673 insurance proceeds within 60 days after the date of the
674 contract. The written estimate must include an itemized, per
675 unit estimate of the repairs, including itemized information on
676 equipment, materials, labor, and supplies, in accordance with
677 accepted industry standards. The public adjuster shall retain
678 such written estimate for at least 5 years and shall make the
679 estimate available to the claimant or insured, the insurer, and
680 the department upon request.
681 (b) An insured may cancel the contract with no additional
682 penalties or fees charged by the public adjuster if such an
683 estimate is not provided within 60 days after executing the
684 contract, subject to the cancellation notice requirement in this
685 section, unless the failure to provide the estimate within 60
686 days is caused by factors beyond the control of the public
687 adjuster. The cancellation period shall cease on the date the
688 public adjuster provides the written estimate to the insured.
689 (13) A public adjuster, public adjuster apprentice, or any
690 person acting on behalf of a public adjuster or apprentice may
691 not accept referrals of business from any person with whom the
692 public adjuster conducts business if there is any form or manner
693 of agreement to compensate the person, directly or indirectly,
694 for referring business to the public adjuster. A public adjuster
695 may not compensate any person, except for another public
696 adjuster, directly or indirectly, for the principal purpose of
697 referring business to the public adjuster.
698 (14) A company employee adjuster, independent adjuster,
699 attorney, investigator, or other persons acting on behalf of an
700 insurer that needs access to an insured or claimant or to the
701 insured property that is the subject of a claim must provide at
702 least 48 hours’ notice to the insured or claimant, public
703 adjuster, or legal representative before scheduling a meeting
704 with the claimant or an onsite inspection of the insured
705 property. The insured or claimant may deny access to the
706 property if the notice has not been provided. The insured or
707 claimant may waive the 48-hour notice.
708 (15) The public adjuster must ensure that prompt notice is
709 given of the claim to the insurer, the public adjuster’s
710 contract is provided to the insurer, the property is available
711 for inspection of the loss or damage by the insurer, and the
712 insurer is given an opportunity to interview the insured
713 directly about the loss and claim. The insurer must be allowed
714 to obtain necessary information to investigate and respond to
715 the claim.
716 (a) The insurer may not exclude the public adjuster from
717 its in-person meetings with the insured. The insurer shall meet
718 or communicate with the public adjuster in an effort to reach
719 agreement as to the scope of the covered loss under the
720 insurance policy. The public adjuster shall meet or communicate
721 with the insurer in an effort to reach agreement as to the scope
722 of the covered loss under the insurance policy. This section
723 does not impair the terms and conditions of the insurance policy
724 in effect at the time the claim is filed.
725 (b) A public adjuster may not restrict or prevent an
726 insurer, company employee adjuster, independent adjuster,
727 attorney, investigator, or other person acting on behalf of the
728 insurer from having reasonable access at reasonable times to any
729 insured or claimant or to the insured property that is the
730 subject of a claim.
731 (c) A public adjuster may not act or fail to reasonably act
732 in any manner that obstructs or prevents an insurer or insurer’s
733 adjuster from timely conducting an inspection of any part of the
734 insured property for which there is a claim for loss or damage.
735 The public adjuster representing the insureds may be present for
736 the insurer’s inspection, but if the unavailability of the
737 public adjuster otherwise delays the insurer’s timely inspection
738 of the property, the public adjuster or the insureds must allow
739 the insurer to have access to the property without the
740 participation or presence of the public adjuster or insureds in
741 order to facilitate the insurer’s prompt inspection of the loss
742 or damage.
743 (16) A licensed contractor under part I of chapter 489, or
744 a subcontractor of such licensee, may not advertise, solicit,
745 offer to handle, handle, or perform public adjuster services as
746 provided in subsection (1) unless licensed and compliant as a
747 public adjuster under this chapter. The prohibition against
748 solicitation does not preclude a contractor from suggesting or
749 otherwise recommending to a consumer that the consumer consider
750 contacting his or her insurer to determine if the proposed
751 repair is covered under the consumer’s insurance policy, except
752 as it relates to solicitation prohibited in s. 489.147. In
753 addition, the contractor may discuss or explain a bid for
754 construction or repair of covered property with the residential
755 property owner who has suffered loss or damage covered by a
756 property insurance policy, or the insurer of such property, if
757 the contractor is doing so for the usual and customary fees
758 applicable to the work to be performed as stated in the contract
759 between the contractor and the insured.
760 (17) A public adjuster shall not acquire any interest in
761 salvaged property, except with the written consent and
762 permission of the insured through a signed affidavit.
763 (18) A public adjuster, a public adjuster apprentice, or a
764 person acting on behalf of an adjuster or apprentice may not
765 enter into a contract or accept a power of attorney that vests
766 in the public adjuster, the public adjuster apprentice, or the
767 person acting on behalf of the adjuster or apprentice the
768 effective authority to choose the persons or entities that will
769 perform repair work in a property insurance claim or provide
770 goods or services that will require the insured or third-party
771 claimant to expend funds in excess of those payable to the
772 public adjuster under the terms of the contract for adjusting
773 services.
774 (19) Subsections (5)-(18) apply only to residential
775 property insurance policies and condominium unit owner policies
776 as described in s. 718.111(11), except that subsection (11) also
777 applies to coverages provided by condominium association,
778 cooperative association, apartment building, and similar
779 policies, including policies covering the common elements of a
780 homeowners’ association.
781 Section 10. Subsection (2) of section 626.8796, Florida
782 Statutes, is amended to read:
783 626.8796 Public adjuster contracts; disclosure statement;
784 fraud statement.—
785 (2) A public adjuster contract relating to a property and
786 casualty claim must contain the full name, permanent business
787 address, phone number, e-mail address, and license number of the
788 public adjuster; the full name and license number of the public
789 adjusting firm; and the insured’s full name, street address,
790 phone number, and e-mail address, together with a brief
791 description of the loss. The contract must state the percentage
792 of compensation for the public adjuster’s services in minimum
793 18-point bold type before the space reserved in the contract for
794 the signature of the insured; the type of claim, including an
795 emergency claim, nonemergency claim, or supplemental claim; the
796 initials of the named insured on each page that does not contain
797 the insured’s signature; the signatures of the public adjuster
798 and all named insureds; and the signature date. If all of the
799 named insureds’ signatures are not available, the public
800 adjuster must submit an affidavit signed by the available named
801 insureds attesting that they have authority to enter into the
802 contract and settle all claim issues on behalf of the named
803 insureds. An unaltered copy of the executed contract must be
804 remitted to the insured at the time of execution and to the
805 insurer, or the insurer’s representative within 7 days after
806 execution. A public adjusting firm that adjusts claims primarily
807 for commercial entities with operations in more than one state
808 and that does not directly or indirectly perform adjusting
809 services for insurers or individual homeowners is deemed to
810 comply with the requirements of this subsection if, at the time
811 a proof of loss is submitted, the public adjusting firm remits
812 to the insurer an affidavit signed by the public adjuster or
813 public adjuster apprentice that identifies:
814 (a) The full name, permanent business address, phone
815 number, e-mail address, and license number of the public
816 adjuster or public adjuster apprentice.
817 (b) The full name of the public adjusting firm.
818 (c) The insured’s full name, street address, phone number,
819 and e-mail address, together with a brief description of the
820 loss.
821 (d) An attestation that the compensation for public
822 adjusting services will not exceed the limitations provided by
823 law.
824 (e) The type of claim, including an emergency claim,
825 nonemergency claim, or supplemental claim.
826 Section 11. Subsection (2) of section 627.43141, Florida
827 Statues, is amended to read:
828 627.43141 Notice of change in policy terms.—
829 (2) A renewal policy may contain a change in policy terms.
830 If such change occurs, the insurer shall give the named insured
831 advance written notice summarizing the change, which may be
832 enclosed along with the written notice of renewal premium
833 required under ss. 627.4133 and 627.728 or sent separately
834 within the timeframe required under the Florida Insurance Code
835 for the provision of a notice of nonrenewal to the named insured
836 for that line of insurance. The insurer must also provide a
837 sample copy of the notice to the named insured’s insurance agent
838 before or at the same time that notice is provided to the named
839 insured. Such notice shall be entitled “Notice of Change in
840 Policy Terms.” Beginning January 1, 2025, the “Notice of Change
841 in Policy Terms” shall be in bold type of not less than 14
842 points and included as a single page or consecutive pages, as
843 necessary, within the written notice.
844 Section 12. Section 627.6426, Florida Statutes, is amended
845 to read:
846 627.6426 Short-term health insurance.—
847 (1) For purposes of this part, the term “short-term health
848 insurance” means health insurance coverage provided by an issuer
849 with an expiration date specified in the contract that is less
850 than 12 months after the original effective date of the contract
851 and, taking into account renewals or extensions, has a duration
852 not to exceed 36 months in total.
853 (2) All contracts for short-term health insurance entered
854 into by an issuer and an individual seeking coverage must shall
855 include the following written disclosures signed by the
856 purchaser at the time of purchase disclosure:
857 (a) The following statement:
858
859 “This coverage is not required to comply with certain
860 federal market requirements for health insurance,
861 principally those contained in the Patient Protection
862 and Affordable Care Act. Be sure to check your policy
863 carefully to make sure you are aware of any exclusions
864 or limitations regarding coverage of preexisting
865 conditions or health benefits (such as
866 hospitalization, emergency services, maternity care,
867 preventive care, prescription drugs, and mental health
868 and substance use disorder services). Your policy
869 might also have lifetime and/or annual dollar limits
870 on health benefits. If this coverage expires or you
871 lose eligibility for this coverage, you might have to
872 wait until an open enrollment period to get other
873 health insurance coverage.”
874
875 (b) The following information:
876 1. The duration of the contract, including any waiting
877 period.
878 2. Any essential health benefit under 42 U.S.C. s. 18022(b)
879 that the contract does not provide.
880 3. The content of coverage.
881 4. Any exclusion of preexisting conditions.
882 (3) The disclosures must be printed in no less than 12
883 point type and in a color that is easily readable. A copy of the
884 signed disclosures must be maintained by the issuer for a period
885 of 5 years after the date of purchase.
886 (4) Disclosures provided by electronic means must meet the
887 requirements of subsection (2).
888 Section 13. Present subsection (4) of section 627.70132,
889 Florida Statutes, is redesignated as subsection (5), and a new
890 subsection (4) is added to that section, to read:
891 627.70132 Notice of property insurance claim.—
892 (4) A notice of claim for loss assessment coverage under s.
893 627.714 must be given to the insurer within 90 days after the
894 date on which the condominium association or its governing board
895 votes to levy an assessment to cover a shortfall in reserves due
896 to a covered loss. Such vote by the association or its governing
897 board must have occurred within 33 months after the date of the
898 loss that created the need for the assessment.
899 Section 14. Section 791.012, Florida Statutes, is amended
900 to read:
901 791.012 Minimum fireworks safety standards.—The outdoor
902 display of fireworks in this state shall be governed by the
903 National Fire Protection Association (NFPA) 1123, Code for
904 Fireworks Display, 2018 1995 Edition, approved by the American
905 National Standards Institute. Any state, county, or municipal
906 law, rule, or ordinance may provide for more stringent
907 regulations for the outdoor display of fireworks, but in no
908 event may any such law, rule, or ordinance provide for less
909 stringent regulations for the outdoor display of fireworks. The
910 division shall promulgate rules to carry out the provisions of
911 this section. The Code for Fireworks Display shall not govern
912 the display of any fireworks on private, residential property
913 and shall not govern the display of those items included under
914 s. 791.01(4)(b) and (c) and authorized for sale thereunder.
915 Section 15. This act shall take effect July 1, 2024.
