Florida Legislative Session 2020: Insurance Bills to Watch

The Florida insurance industry will be focused on several key issues this session, including reform for auto glass (windshield) assignment of benefits (AOB) abuse, reforms to the state’s legal system, as well as changes to the Florida Hurricane Catastrophe Fund.

But there are also several other insurance-related bills to watch this session.

Read on for a breakdown of the bills that have been introduced in the Florida 2020 Legislative Session:

Defines the terms “loss run statement” and “provide”; requires surplus lines and authorized insurers, respectively, to provide insureds either a loss run statement or certain information within a certain timeframe after receipt of the insured’s written request; requires insurers to provide notice to the agent of record after providing a loss run statement; prohibiting insurers from charging a fee to prepare and provide one loss run statement annually, etc.

Increases the obligation of the Florida Insurance Guaranty Association for certain claims under policies covering certain condominium associations and homeowners’ associations; increases the percentage limit of certain insurer net written premiums up to which the Florida Office of Insurance Regulation may levy certain emergency assessments against insurers, etc.

Authorizes employees of the Florida Insurance Guaranty Association or employees of guaranty associations of another state to adjust losses for Florida Insurance Guaranty Association if certain conditions are met; revises calculation of insurers’ initial payments to association; revises requirements for OIR in levying workers’ compensation insurers; provides that insurer’s direct written premium may not be reduced by certain amounts for purposes of determining insurer assessments or policyholder surcharges; revises requirements for remitting policy surcharges & assessments; provides that assessments paid by insurers constitute advances of funds to Florida Workers’ Compensation Insurance Guaranty Association.

Requires the Florida Legislature to appropriate money from Florida Hurricane Catastrophe Fund to OIR for specified purpose; provides requirements for certain audits; revises circumstances under which actions may not lie; revises timeframe during which statute of limitations for certain civil remedy actions is tolled; authorizes releases of trade secret information obtained by DFS & office; prohibits office from disapproving rates for homeowner’s insurance under certain circumstances; provides claims under property insurance policy, rather than claims for specified loss or damage, are barred unless notice is given to insurer within specified timeframe.

Repeals provisions which comprise the Florida Motor Vehicle No-Fault Law; revises the motor vehicle insurance coverages that an applicant must show to register certain vehicles with the Department of Highway Safety and Motor Vehicles; revises garage liability insurance requirements for motor vehicle dealer applicants; revises minimum liability coverage requirements for motor vehicle owners or operators, etc.

Repeals provisions relating Florida Motor Vehicle No-Fault Law; revises garage liability insurance requirements; revises minimum coverage requirements for proof of financial responsibility for motor vehicles; revises amount of certificate of deposit required to elect certain method of proof of financial responsibility; revises excess liability coverage requirements; revises financial responsibility requirements for owners or lessees of for-hire passenger transportation vehicles; revises coverages of motor vehicle policy which are subject to stacking prohibition; revises insurance requirements for transportation network company drivers.

Redefines “covered policy,” to include coverage amount requested by lenders under residential insurance policies; requires DHSMV to establish online verification system for motor vehicle insurance; requires mortgagees & assignees to deposit certain insurance proceeds in specified accounts; provides requirements for distribution of certain accrued interests; provides authorizations & duties of limited lines travel insurance producers & travel retailers; authorizes persons licensed in major lines of authority as insurance producers to sell, solicit, & negotiate travel insurance; revises timeframe for insurers’ cancellation of motor vehicle insurance for nonpayment; authorizes licensed personal lines or general lines agent to advertise, solicit, negotiate, or sell motor vehicle service agreements, home warranties, & service warranties without sales representative license; provides requirements for disclosures of preexisting condition exclusions in travel insurance.

Revises the definition of the term “catastrophic ground cover collapse” for insurance coverage purposes; specifies circumstances under which settling or cracking of a foundation, structure, or building constitutes a loss resulting from a catastrophic ground cover collapse; defining the term “dangerous”, etc.

Prohibits use of personal data contained in public records for certain marketing, soliciting, & contact without person’s consent; requires operator of certain website or online service to establish designated request address & provide specified notice regarding collection & sale of consumer information; prohibits sale of consumer information upon request of consumer; requires DLA to adopt rules; provides for injunctions & civil penalties.

Prohibits certain charges for removal of security freeze; prohibits unlicensed activity by adjusting firms & bail bond agents; provides administrative & criminal penalties; revises actions against certain license, appointment, & application of insurance representatives; revises status, notice, & payment requirements for claims; revises classes of insurance subject to disclosure requirement before eligible for export under Surplus Lines Law; prohibits certain writing of industrial life insurance policies; revises Homeowner Claims Bill of Rights; removes certain deductible obligation of Florida Insurance Guaranty Association; revises unclaimed property recovery agreements & purchase agreements.

Revises and specifies annual rate increase limits for certain policies issued by the corporation. Would prohibit Citizens from implementing increase that exceed 10% on any single policy.

Proposing amendments to the State Constitution to establish the position of commissioner of insurance as a statewide elected officer and to provide for the commissioner’s inclusion on the Cabinet.

Prohibits residential property insurance policies of condominium unit owners from providing rights of subrogation against condominium associations under certain circumstances.

Requires the legislature to appropriate money from Florida Hurricane Catastrophe Fund to OIR for specified purpose; provides requirements for certain audits; revises circumstances under which actions may not lie; revises timeframe during which statute of limitations for certain civil remedy actions is tolled; authorizes releases of trade secret information obtained by DFS & office; prohibits office from disapproving rates for homeowner’s insurance under certain circumstances; provides claims under property insurance policy, rather than claims for specified loss or damage, are barred unless notice is given to insurer within specified timeframe. SB 1334: Redefines the term “covered policy” under the Florida Hurricane Catastrophe Fund in relation to certain collateral protection insurance policies; revises requirements for the civil remedy notice provided to insurers and the Department of Financial Services; deletes a requirement for certain persons acting on behalf of an insurer to provide certain notice before scheduling a meeting or onsite inspection for certain purposes; requires named insureds to provide insurers with a specified notice as a condition precedent to filing suit under a property insurance policy, etc.