Bill Watch

Recap of Week 7 & Preview of Week 8 of Session

As we enter the final two weeks of the Florida Legislature’s regular session, all eyes are on the budget.  We are still listening to the market, we are still concerned that reinsurance costs are up over 30%, and we are still concerned that the everyday Floridian is going to make tough decisions…stay in their Florida home or sell and move.

Time is running out or has run out on some bills.  Tomorrow (April 25) is the last day of regularly scheduled committee meetings – as a result, some of our bills in-play here are now at risk of not making it across the finish line.  The Senate and House bills on Insurer Accountability have but two major differences between the two and will be worked out on the floor of their respective chambers in these final weeks.  We believe there is still much discussion about these bills. 

The legislature’s focus will remain on the state budget – the only bill that the Florida Constitution requires the legislature to pass each year.  House Speaker Paul Renner has been quoted as saying he expects formal budget negotiations to start today (April 24). As of this writing, there’s been no announced deal on allocations, which is the total money each part of the state budget will receive in the final version.  The scheduled end of session is Friday, May 5 before midnight.  Meanwhile, the Governor has signed into law a bill eliminating the requirement for a unanimous jury in death penalty recommendations. The previous law allowed death sentences to be imposed based on the recommendations of eight of 12 jurors.

Our Bill Watch is separated into two categories – “Bills in Play” and “Bills Not in Play”.  For those of you who were following closely and have a favorite that has been placed in the latter, don’t forget: It has been my experience that most good ideas take 3 years to pass!”

Here is a master list of the legislative bills we’re following so far.  You can click the bill link in the list below to go directly to the bill and its details farther below.  “New” and “Updated” bills are so noted.  Updates within each bill are noted in blue font:

Insurer Accountability Updated
Insurance (property)
Surplus Requirements for Residential Property Insurers
Insurance Claims
Financial Services Updated
Property Insurance Updated
Property Insurance for Wind and Flood New
Motor Vehicle Liability Policies Updated
Motor Vehicle Insurance
Commercial Vehicle Insurance
Motor Vehicle Glass Updated
Civil Remedies Signed Into Law
Civil Remedies for Unlawful Employment Practices
Litigation Financing Consumer Protection
Consumer Protection Updated
Emergency Residential Property Insurance Assistance Trust Fund
Contacting Consumer Debtors Updated
Home Repairs and Solicitation Sales
Collateral Protection Insurance on Real Property Updated
Natural Emergencies Updated
Causes of Action Based on Improvements to Real Property Signed Into Law
Condominium and Cooperative Associations Updated
Flood Damage Prevention Updated
My Safe Florida Home Program Updated
Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies Updated
Flood Disclosures for Real Property Sales
Flood Zone Disclosures for Dwelling Units
Implementation of the Recommendations of the Blue-Green Algae Task Force Updated
Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies
Health Insurance Cost Sharing Updated
Coverage for Skin Cancer Screenings Updated
Insurance (health) Updated
Telehealth Practice Standards Updated
Physician Certifications for the Medical Use of Marijuana Updated

Consumer Protection – HB 1185 and SB 1398 by Representative Mike Giallombardo (R-Cape Coral) by Senator Nick Diceglie (R- St. Petersburg) provides additional requirements for distributed energy systems and specifies violations and penalties for licensees.  The bill prohibits certain contracts by public adjusters (PA’s) and provides an additional requirement for a public adjuster’s license.  The bill revises provisions relating to hurricane deductibles and reduces the time period in which a property insurance company may cancel a policy in certain circumstances.  The bill also revises duties of carriers & agents concerning the sale of annuities and provides additional requirements for service agreement policies. 

HB 1185 was heard in the House Insurance and Banking Subcommittee on March 21 and a clarifying amendment adopted.  Scott Johnson, in his Johnson Strategies blog, notes the following highlights:

• Attorney Loss Consultants: The bill partially addresses the problem of so-called attorney “loss consultants” that perform services identical to that of a PA but without a PA license. It clarifies that the attorney adjusting exemption does not apply to “…employees, interns, volunteers, or contractors…” of any attorney or firm.
• PA’s & 3^rdparties: The bill prohibits a PA from contracting with 3^rd parties (such as water firms or build back contractors) unless the homeowner client provides written consent.  If done without consent, the 3rd party invoice is paid out of the public adjusters’ fee.
• PA Contract Cancellations: A major problem after both Hurricanes Michael and Ian was PA’s signing up policyholders then taking weeks, sometimes months, to begin work. The CFO’s bill provides that after a declared emergency policyholders have 30 days to cancel their contracts, without penalty or obligation.  The contract must state this fact and also state it can be cancelled if the PA fails to provide a copy of an “unaltered ” written estimate within 45 days of signing.
• Paying the Policy Limits: Under the bill if no later than 14 days after the loss is reported the insurance company pays, or commits in writing to pay, the policy limits, the PA must inform the policyholder that such payment might not be increased and that the PA is entitled only to reasonable compensation for time and expenses incurred.
• Contingency Fee Calculations: Under the bill if a public adjuster has a contract effective after the policyholder receives an insurance companies offer and the PA increases the insurance companies offer, the PA’s percentage is calculated on the difference between the original offer and the final payment, not the total claim payment.
• Claim Payments: When a claim is settled while the policyholder is represented by a public adjuster, the insurance company must pay via check(s) and must issue one check to the public adjuster and another for the balance made payable to the policyholder.
• Miscellaneous Policyholder Benefits: The bill changes and/or creates other requirements for PA contracts that should be helpful in expediting the claims process, lowering fraud and protecting the policyholder. (Details in the Amendment beginning in Section 9 on line 352)

HB 1185 unanimously passed out of the committee, which featured passionate testimony from CFO Jimmy Patronis on the “hell” that is recovering from a hurricane.  On April 17, HB 1185 was heard in its final committee stop in the House Commerce Committee.  The bill was introduced by Representative Giallombardo, who described the strike-all amendment as establishing guidelines on crowdfunding after disasters.  It also places additional disclosure requirements for distributed energy generation systems (rooftop solar).  Most notably, the amendment reduces the time frame that insurance companies are allowed to non-renew or terminate a contract from 90 to 60 days exempting Citizens Property Insurance. The amendment also clarifies and redefines “value-added” and total loss to be 1% instead of $1,000. The amendment was adopted and the bill passed unanimously. The bill now waits for its full hearing on the House floor.  You can view the latest House Bill analysis. 

On April 18, SB 1398 was heard in the Senate Appropriations Committee on Agriculture, Environment and General Government.  The strike-all amendment makes relevant technical changes, clarifies the applicability of crowdfunding requirements to apply only to declared disasters, refines underwriting hurricane deductible and loss assessment claim timelines, and has come to some common ground with public adjusters while ensuring consumer protections remain intact. In debate, Senator Grall expressed concern with the amendment preventing employees of a law firm from participating in the adjustment of claims. Her concern is that they are removing the support staff function of law firms, which is integral in getting these issues resolved, hopefully before litigation. She also expressed her interest in looking at the language further as the bill moves to ensure they are not pushing all the handling of these claims to attorneys, which can drive the cost and market of attorneys.  She said “the way the amendment is drafted right now, I would have a difficult time supporting it on the floor.” In close, Senator DiCeglie responded that he was more than willing and happy to discuss with her before the next committee stop to get the bill to a good place. The bill as amended passed favorably through committee. You can view the latest Senate Bill analysis for more details.  SB 1398 is now on the agenda in the Senate Fiscal Policy committee tomorrow (April 25) at 10am.  (Return to Top of List)

Insurer Accountability  ̶  SB 7052 and HB 7065 by the Senate Banking and Insurance Committee and the House Commerce Committee and Rep. Wyman Duggan (R-Duval) are intended to increase accountability and transparency of insurance companies with regulators and consumers. 

The Senate bill followed the Senate Banking and Insurance Committee’s discussion on March 29 with the Office of Insurance Regulation (OIR).  During the meeting, Insurance Commissioner Michael Yaworsky, representing OIR discussed its Property Insurance Stability Report, established by SB 76 in 2021, which was designed to be a long term tool to gather enhanced and narrow data on the Florida property insurance market and provide a line-by-line life cycle of every claim in the calendar year. The initial information in the data call shows about 50% of companies responded, which amounts to about 250,000 claims of the estimated 670,000 claims total, and about 52,535 claims will be litigated. Committee Chair Boyd asked Commissioner Yaworsky for his thoughts on a New York Post article on allegations of insurance company mishandling claims after hurricanes in Southwest Florida.  Yaworsky responded that OIR expects insurance companies are acting in good faith to restore a sense of normalcy, and although he can’t go into whether OIR has begun an investigation, it is taking the matter seriously.  

The bill was heard April 5 in the Senate Banking and Insurance Committee.  Among its major provisions:

On insurance coverage:

• Prohibits authorized and surplus lines insurance companies from cancelling a property insurance policy during any pending claim until after repairs are complete;
• Requires that Citizens cover property with open claims that are being handled by FIGA (Florida Insurance Guaranty Association); and
• Extends the current prohibition on applying any other deductible under the policy if a roof deductible is applied to any other loss to the property that’s caused by the same covered peril.

On claims handling:

• Requires OIR to ensure liability insurance companies are complying with proper claims handling practices by following specified best practices;
• Creates a 60-day prompt-pay law for non-PIP motor vehicle insurance claims similar to the prompt pay law for residential property insurance claims;
• Requires insurance companies to annually submit their claims manuals to the OIR, attest that the manual comports to usual and customary industry claims handling practices, and that the company has adequate resources to implement those practices; and
• Strengthens the Unfair Insurance Trade Practices Act by:
• Prohibiting altering or amending an adjuster’s report without including a list of changes, who made the change, and an explanation of a change that reduces coverage; and
• Prohibiting payment of bonuses to officers and directors while an insurance company is impaired or insolvent.

On rates:

• Makes title insurance rates subject to OIR rate review;
• Requires that property and auto rate filings include the combined effect of recent legislative reforms and appropriates $500,000 for an actuarial study to implement this requirement; and
• Requires that property insurance mitigation discounts be updated at least every 5 years and that carriers publish consumer-friendly discount information on their website.

On regulation:

• Prioritizes OIR Financial and Market Conduct Examinations, including property insurance companies after hurricanes who are in the top 20% in areas such as claim denials and consumer complaints;
• Requires OIR to submit quarterly reports to the Legislature to ensure OIR & DFS are ensuring carriers’ accountability;
• Prohibits the OIR from waiving its review of policy forms for 3 years for any carrier that has violated the Insurance Code;
• Increases maximum administrative fines by 250% generally and by 500% for violations during a state of emergency such as a hurricane (to $100,000 for “nonwillful” violations and up to $1 million for “willful” violations);
• Requires carriers to respond more promptly to the Department of Financial Services’ Division of Consumer Services and increases fines for noncompliance;
• Provides additional funding for the DFS Division of Consumer Services; and
• Requires carriers report any temporary suspension of writing new policies to OIR.

The bill also clarifies the current dispute in court on whether the SB 2-A reform passed last December eliminating one-way attorney fees to plaintiff lawyers is retroactive to the date of policy issue or instead the date the lawsuit was filed.  This bill indicates it is not retroactive, stating “SB 2-A’s intent shall not be construed to impair any right under an insurance contract in effect on or before the effective date of that chapter law (December 16, 2022).”  The bill, effective July 1, 2023, likewise makes the same clarification on its own provisions. 

On April 20, SB 7052 was heard in the Senate Fiscal Policy Committee.  A clarifying amendment was adopted.  The bill passed the committee on a 14-1 vote and now awaits a hearing before the full Senate.  

On April 21, the House Bill HB 7065 was heard in the full House Appropriations Committee.  A strike-all amendment was introduced, which focuses on the appropriations aspect, providing new full-time positions and funding for the office of insurance regulation and the Department of Financial Services (DFS).  No further questions or debate on the amendment were raised and the bill was unanimously passed.  It now awaits a hearing before the full House.

The major difference between the two bills is that the Senate version has a section mandating the process for liability claims handling and the House does not have this provision.  The other difference is the House and Senate differ slightly in Section 3 regarding OIR insurer examination and how exams are triggered.  (Return to Top of List)

Financial Services  ̶  HB 487 and SB 1158 by Rep. Michelle Salzman (R-Cantonment) and by Senator Nick DiCeglie (R-St. Petersburg) is the Department of Financial Services (DFS) annual omnibus bill which covers a myriad of topics under the jurisdiction of DFS, as well as the inner workings of the department itself.  Topics include reinsurance, adjusters, insurance agents, workers’ comp, bail bonds, new rules on board and associations, and sales representatives.  You can see the latest House Bill analysis and the latest Senate Bill analysis for details. The substance of both bills are similar; however, the sections are slightly off.  

On April 17, HB 487 was heard in its last committee, the House Commerce Committee.   Representative Salzman described the bill as an agency bill for DFS that is “as American as they come.” The bill makes a variety of changes, including adding the state college system to the state’s deferred compensation program, implementing recommendations from the department’s division of consumer services, ensuring injured workers get proper healthcare by ratifying the rules that allow providers to be properly reimbursed, creating a firefighter direct support organization allowing firefighters to get charitable donations to support their efforts and resources, and removes the temporary bail bond agent license. Representative LaMarca tendered an amendment which intends to correct the repair reference while ensuring a claim determination has been made prior to mediation. The amendment was adopted and the bill as amended passed unanimously through committee.  The bill is now on the Special Order Calendar in the House tomorrow (April 25).

Last Thursday, SB 1158 was heard in the Senate Fiscal Policy Committee, its last committee stop.  An amendment was adopted that clarifies that a claim is eligible for mediation once the insurance company complies with the requirement to pay or deny the claim within 90 days after the insurance company receives the claim or elects to reinspect. If the insurance company has not complied or elected to reinspect within 90 days, the insurance company may not require mediation.  The amendment was adopted, and the bill was unanimously approved.  It now awaits a full Senate hearing.  (Return to Top of List)

Property Insurance  ̶  HB 505 and SB 418 by Rep. Kim Berfield (R-Clearwater) and Senator Keith Perry (R-Gainesville) revises requirements for residential property insurance rate filings.  The bill allows a residential property insurance company’s rate filing to estimate projected hurricane losses by using a weighted or straight average of two or more models approved by the Florida Commission on Hurricane Loss Projection Methodology.  The bill authorizes insurance companies to file with OIR their personal lines rating plans relating to windstorm mitigation construction standards and allows premium discounts and credits on residential property lines for windstorm mitigation measures.  The bill also revises the timeframe for notices from carriers to policyholders of automatic bank withdrawal increases and revises requirements for notice of certain automobile policies. 

SB 418 has been amended to include new language for any local governmental entity that is a member of a self-insurer.  Only an elected official of the local governmental entity may be the local government’s representative on the self-insurer’s governing body.  The amendment also significantly reworded the deductible language but kept the substance the same.  It also added new language to provide that a motor vehicle service agreement company that maintains a contractual liability insurance policy in lieu of maintaining unearned premium reserve may have a policy that either pays 100% of claims as they are incurred or 100% of claims in the event of the failure of the service agreement company.  You can read the Senate Bill analysis for details. 

On April 19, an amendment was added to SB 418 that requires liveries to either insure the renter of a livery vessel or present the option to the renter with the opportunity to purchase insurance coverage of at least $500,000 per person and $1 million per event.  If the renter chooses not to purchase insurance, then they must disclose whether they have a form of authorized boating certification and must also sign an acknowledgement that they are refusing the insurance.  The bill as amended passed unanimously through the full Senate without questions or debate and now goes to the House for consideration.

On April 17, HB 505 was heard in its final stop in the House Commerce Committee. Representative Berfield indicated that the bill intends to address, clarify, and modernize Florida Statute 627. The bill adjusts hurricane models used to file estimated projected hurricane losses, institutes mitigation discounts for compliant resiliency efforts, and permits the executive director of Citizens Property Insurance and the director of the Division of Emergency Management to designate one person each to serve on the floor of the commission of hurricane loss projection methodology. It also seeks to adjust electronic notification and modernize required provisions for insurance coverage, including modernizing antique auto purchases and the delivery of insurance policies to offer electronic options for consumers. An amendment to the bill revises mandated deductibles that must be offered for hurricane loss when issuing personal lines of residential property insurance policies and regards local government entities as self-insurers. An amendment to this amendment provides a customer the opportunity to purchase rental insurance for a boat rental, specifically providing for a declination statement if that opportunity is turned down similar to turning down rental insurance on a rental car. Finally, a second amendment intends to lower the cost of insurance for service stations and will allow a captive insurance company license from another state to operate in Florida for the sole purpose of self-insuring underground petroleum tanks. All amendments were adopted, and the bill as amended passed favorably through committee. You can see the latest House Bill analysis that followed the meeting for details. The bill now awaits consideration before the full House.  (Return to Top of List)

(NEW) Property Insurance for Wind and Flood  ̶  HB 799 and SB 594 by Rep. Griff Griffitts (R-Panama City) and Senator Jonathan Martin (R- Fort Myers) requires residential property insurance rate filings to account for windstorm mitigation measures undertaken by policyholders.  It also specifies that wind uplift prevention be included in recognized mitigation damage techniques.  The Senate bill has made it through all of its committees and is awaiting consideration by the full Senate.

The House bill had its last committee stop in the Commerce Committee.  Representative Griffitts began by describing how homes fail during high wind events, specifically when the roof deck separates from the house.  He emphasized that mitigating wind uplift is the key solution to increasing home resiliency in the coastal regions, and roof deck failure can be mitigated by preventing pressure to build in the attic space. Spray polyurethane foam (SPF) can be added with minimal impacts to the homeowner, and these products can provide secondary structural benefits by adhering to the substrate and essentially gluing the home together. The bill simply requires discounts for residential rate filings and adds technical changes to statutory language regarding Citizens Insurance.  An amendment to the bill makes certain that a limitation on Citizens Property Insurance rates for non-primary residences and policies assumed from unsound insurers apply on a year over year basis rather than an inflexible fixed date.  The bill as amended passed the committee and now awaits action in the full House.  (Return to Top of List)

Motor Vehicle Liability Policies  ̶  HB 57 and SB 516 by Rep. Keith Truenow (R-Tavares) and Senator Nick DiCeglie (R-St. Petersburg) revises the definition of “motor vehicle liability policy” to include certain policies issued by specified risk retention groups and further defines those groups as being “A”-rated and providing only commercial coverage for its members.  The Senate bill was heard in the Senate Banking and Insurance Committee on March 22 and an amendment was adopted. The amendment authorizes qualified surplus lines insurance companies to provide commercial automobile insurance.  Senator Thompson asked if this bill would stifle marketplace competition, but Senator DiCeglie insisted that as a business owner, this bill would offer options and parameters for market entrance into these groups, which “is always good.” 

SB 516 is scheduled to be heard in the Senate Rules Committee today (April 24), its final stop before heading to the full Senate.

HB 57 was amended to authorize an eligible surplus lines insurance company that meets applicable financial strength requirements to provide financial responsibility coverage for commercial motor vehicles.  This past Friday, HB 57 was amended again to broaden coverage allowed by a risk retention group to commercial coverage for vehicles used for public and private construction and infrastructure projects.  It is now on the Special Order Calendar of the full House tomorrow (April 25).  (Return to Top of List)

Motor Vehicle Glass  ̶  HB 541 and SB 1002 by Rep. Griff Griffitts (R-Panama City) and by Senator Linda Stewart (D-Orlando) and Senator Ed Hooper (R-Palm Harbor) bars vehicle insurance policyholders from entering into Assignment of Benefits (AOB) contracts with repair shops. 

On March 14, 2023, the Insurance & Banking Subcommittee adopted an amendment that made the following changes to the House bill:                                                                             

• Prohibits a policyholder or any other person from entering into an assignment agreement for post-loss benefits for motor vehicle glass replacement or repair under a motor vehicle insurance policy issued or renewed on or after July 1, 2023;
• Prohibits a repair shop or its employees from offering to a customer anything of value in exchange for making an insurance claim for motor vehicle glass replacement or repair. It also prohibits a non-employee who is compensated for soliciting insurance claims from making such offers;
• Expands the definition of “motor vehicle repair” to include ADAS calibration or recalibration and requires an electronic or written notice to the customer as to whether the calibration or recalibration of ADAS is required as part of the replacement or repair of motor vehicle glass; 
• Allows an insurance company, when issuing or renewing a policy providing comprehensive coverage or combined additional coverage, to offer a policyholder or applicant a deductible of $250 for claims of damage to the windshield of a motor vehicle, which they may decline; and
• Establishes that, if a deductible for comprehensive coverage or combined additional coverage is applied to a loss that includes other damage in addition to windshield damage, no windshield damage deductible may apply.

HB 541 had its last stop on April 10 in the House Commerce Committee and SB1002 had its final stop the next day in the Senate Rules Committee.  An amendment was adopted on both bills that:

• Prohibits an insurance company from steering business to a particular windshield glass repair shop;
• Requires insurance companies, agents, and adjusters to provide at least two names of motor vehicle glass shops to claimants, if they provide any names;
• Permits insurance companies to explain a claimant’s motor vehicle comprehensive coverage benefits;
• Requires companies to offer discounts if a policy contains a managed repair arrangement;
• Clarifies that the bill only applies to the comprehensive or combined additional coverage provisions of personal lines motor vehicle insurance policies; and
• Clarifies that this provision does not create a cause of action.

CFO Jimmy Patronis spoke on behalf of the bills in both committees.  He told a story about going to the Florida State Fair with his 9 year old son for a cabinet meeting, where he was approached by an individual asking if he had a chip on his windshield.  He did in fact have a chip on his windshield, so the solicitor asked what insurance he had, if it was comprehensive, and told him they’d take care of it, and come directly to him, and so forth.  Patronis called his office to dispatch officers and try to shut the operator down, but he explained to the committees that unfortunately what the vendor was doing was totally legal via a statute loophole.  He emphasized in both meetings that this type of business model takes advantage of the policyholder and increases auto insurance rates.  He also noted that in 2022, there were 37,000 lawsuits filed related to windshield insurance claims compared to 600 lawsuits filed the previous year.  HB 541 is still awaiting consideration by the full House.

Last Wednesday, SB 1002 was heard before the full Senate. Senator Stewart defined an “advanced driver assistance system” as any motor vehicle electronic safety system that is associated with motor vehicle glass that supports the driver and increases safety and expands the definition of motor vehicle repairs to include calibration or recalibration of advanced driver assistance systems.  Unlawful acts of motor vehicle repair shops are expanded to include prohibition on offering an inducement in exchange for making an insurance claim for motor vehicle glass replacement or repair, and prohibits a policyholder from entering an assignment agreement of post-loss benefits for motor vehicle glass replacement or repair. The bill also makes it unlawful for an insurance company to require claimants to use a particular company or location for auto-glass repair, replacement, or calibration.  Senator DiCeglie expressed support and gratitude for Senator Stewart and the bill, saying “it’s going to go a long way in reducing lawsuits.  It’s going to go a long way in dealing with steering issues” that they discovered while working on the bill.  Senator Boyd echoed these remarks and congratulated Senator Stewart on successfully getting the bill across the finish line, saying, “This has been a problem for years.  There has been abuse and fraud in the system that has cost consumers thousands and probably millions of dollars.”  In her closing, Senator Stewart emphasized that “the bill will finally put an end to frivolous lawsuits perpetuated by a few bad actors, and modernize our laws to include new technologies and recalibrations.”  She expressed gratitude to Senator Boyd, Senator DiCeglie, and CFO Jimmy Patronis for their efforts on the legislation. The bill was amended to make it effective upon being signed into law and then passed the Senate unanimously without questions.  It now awaits the Governor’s signature.  (Return to Top of List)

Contacting Consumer Debtors  ̶  SB 128 and HB 113 by Senator Ana Maria Rodriguez (R-Miami-Dade) and Rep. Alex Andrade (R-Pensacola) prohibits a creditor from contacting a consumer whose debt arose from documented elder and economic abuse or human trafficking.  Those who violate that would be subject to the same sanctions as any other consumer debt collector.  The bill also requires the state Office of Financial Regulation to inform and furnish relevant information to the appropriate regulatory body of the state, the Federal Government, or The Florida Bar if a person has been named in a certain consumer complaint alleging specified violations of law.  It also authorizes debtors to bring civil actions against creditors who violate the act.  We spend a lot of time trying to help the elderly, who are often victims of contractor fraud and/or unscrupulous attorneys.  This is a helpful bill in combating additional abuse at the hands of such abusers.    The House bill never received its first hearing.

SB 128 was heard on March 29 in the Senate Banking and Insurance Committee where an amendment was adopted that removed several provisions relating to who a creditor cannot contact.  The intent is to provide protection for victims and require a signed affidavit identifying the debt to be served as a notice to stop contacting the victim.  There was no debate, and the bill was unanimously passed.  The bill was heard last Tuesday in the Appropriations Committee on Agriculture, Environment and General Government.  There were no questions or debate and the bill passed unanimously.  It awaits its final hearing before the Senate Fiscal Policy Committee which meets for the last time tomorrow (April 25) but SB 128 is not on the agenda, raising doubt on the bill’s future, unless it later becomes part of another bill that’s in play.  (Return to Top of List)

Collateral Protection Insurance on Real Property  ̶  SB 410 and HB 793 by Senator Ileana Garcia (R-Miami) and Rep. Juan Fernandez-Barquin (R-Miami) creates a new section in Chapter 627 of the Florida Statutes, titled “Real Property Collateral Protection Insurance.”  It establishes regulations for insurance companies and agents engaging in transactions involving collateral protection insurance (the so-called “lender-placed” or “force-placed” insurance) on real property, including manufactured and mobile homes.  It defines terms, outlines the terms of policies, and provides calculations of coverages and premiums.  It also prohibits certain practices, such as issuing collateral protection insurance if the insurance company or insurance agent owns the real property; compensating a lender, investor, or servicer on collateral protection insurance policies; offering contingent commissions, profit-sharing, or other payments dependent on profitability or loss ratios to any person affiliated with a servicer or the insurance company in connection with collateral protection insurance; and providing free or below-cost outsourced services to a lender, investor, or servicer.  The bill also specifies the terms of the insurance policy, which must become effective no earlier than the date of lapse of insurance upon mortgaged real property and must terminate on the earliest of certain dates.  It also states that an insurance charge may not be made to a mortgagor for collateral protection insurance before the effective date of the insurance or for a term longer than the scheduled term of the insurance. 

HB 793 was heard in the House Commerce Committee (April 10) and was unanimously approved.  It is still awaiting a hearing before the full House.  

Last Tuesday, SB 410 was heard in the Senate Appropriations Committee on Agriculture, Environment, and General Government.  There were no questions or debate, and the bill passed unanimously.  It is now on the agenda in its final stop, the Senate Fiscal Policy Committee tomorrow (April 25) at 10am.  (Return to Top of List)

Natural Emergencies – SB 250 and HB 7057 by Senator Jonathan Martin (R- Fort Myers) and Rep. Mike Giallombardo (R-Cape Coral) and Rep. Adam Botana (R-Bonita Springs) establishes temporary housing for disaster relief workers and makes permanent funding for local-government emergency loans.  After both Hurricane Ian and Nicole devastated parts of the state last year, the Florida Legislature is pursuing a series of proposals, including SB 250, aimed at helping communities recover from future storms.  Other provisions of the Senate bill, based on the findings from the Senate Select Committee on Resiliency, include:

• Allowing residents to remain on their property in temporary housing, such as trailers, as they rebuild;
• Requiring faster approval of building permits to streamline the rebuilding effort;
• Retroactively prohibiting local governments from raising building fees until October 2024 in communities impacted by Hurricanes Ian and Nicole;
• Requiring faster removal of damaged derelict boats from state waters by their owners;
• Establishing temporary housing for disaster relief works;
• Establishing permanent funding for local government emergency loans;
• Requiring local governments have uniform pre-storm contracts for debris removal;
• Encouraging local governments and school districts to develop emergency financial plans for disasters; and
• Protecting the identities of people hurt or killed in natural disasters from public records searches to avoid potential fraud.

SB 250 passed the Senate unanimously on April 3 and was sent to the House.  You can see the final Senate Bill analysis for details.

The House bill is based on the work done over the past few months by the House Select Committee on Hurricane Resiliency & Recovery.  It passed the House Appropriations Committee unanimously on April 17.  You can see the final House Bill analysis for details.

Both the House and Senate Bills are on the full House Special Order Calendar tomorrow (April 25).  Most likely, the House will pick up the Senate bill and pass it.  (Return to Top of List)

Condominium and Cooperative Associations  ̶  SB 154 and HB 1395 by Senator Jennifer Bradley (R-Fleming Island) and Rep. Vicki Lopez (R-Miami-Dade) makes several clarifying and technical changes to the requirements for Condominium and Cooperative Associations, including revising the circumstances under which community association managers or management firms must comply with the milestone inspection requirement passed in the May 2022 special session in SB 4-D.  That requirement was born of the deadly June 2021 Surfside condo building collapse.  The bill clarifies that milestone inspections apply to buildings that are three stories tall or higher; revises the definition of the terms “milestone inspection” and “substantial structural deterioration”; authorizes local enforcement agencies to make certain determinations relating to milestone inspections after a building reaches a specified age; authorizes municipal governing bodies to adopt certain ordinances relating to association repairs; revises the types of policyholders not required to purchase flood insurance as a condition for maintaining certain policies issued by the Citizens Property Insurance Corporation; and revises condominium association reserve account requirements for structural integrity improvements.

On March 16, SB 154 had its second hearing in the Senate Fiscal Policy Committee, where amendments were made, changing the underlying bill as follows:

• Restructured the milestone inspection requirements for better clarity;
• Provided that the three-story height of a building is determined by the Florida Building Code;
• Required a building that reaches 30 years of age before December 31, 2024, to have a milestone inspection before December 31, 2024;
• Permitted local enforcement agencies to accept an inspection and report that was completed before July 1, 2022, with conditions; and
• Clarified that the requirement to ensure compliance with the milestone requirements apply to the associations and not to the unit owners.

SB 154 unanimously passed the full Senate on April 12 and is now awaiting consideration in the House.  You can see the final Senate Bill analysis for details.

On April 17, HB 1395 made its final stop in the House Commerce Committee.  During the meeting, a strike-all amendment was approved that delays the requirement for certain Citizens Property Insurance condo policyholders to obtain flood insurance until January 2027, clarifies the applicability of milestone inspection requirements, and clarifies the completion of the inspection.  It also requires the Florida Building Commission to create a building safety program and appropriates $1.3 million in recurring funds and $67,000 in non-recurring funds to provide 10 full time positions in the Department of Business and Professional Regulation.  Representative LaMarca in debate noted the “seismic emails” he has received over running a condo bill like his seat predecessor did.  He thanked Representative Giallombardo for the bill, and the bill as amended passed the committee.  You can see the final House Bill analysis for more details.  The bill is now awaiting a hearing before the full House.  (Return to Top of List)

Flood Damage Prevention  ̶  HB 859 and SB 1018 by Rep. Fabian Basabe (R-North Bay Village) and Senator Jay Trumbull (R-Panama City) provides legislative findings that public and private investments in communities are important for economic growth, and that protecting structures from flooding is essential to maintaining resilient communities.  The bill modifies freeboard requirements for certain buildings.  (Freeboard is the additional height, usually expressed as a factor of safety in feet, above the base flood elevation in determining the level at which a structure’s lowest floor or the bottom of the lowest horizontal structural member must be elevated.)  The bill also establishes maximum voluntary freeboard requirements for all new construction and substantial improvements to existing construction and prohibits voluntary freeboard from being used in the calculation of the maximum allowable height for certain construction in applicable zoning districts.  The bill requires the Florida Building Commission to develop and adopt minimum freeboard requirements by a specified date, and to review the freeboard requirements in the Florida Building Code every 5 years.  The House bill is awaiting its first hearing in the Regulatory Reform & Economic Development Subcommittee. 

The Senate bill had its first hearing in the Community Affairs Committee on March 15 and passed unanimously.  SB 1018 was heard in the Environment and Natural Resources Committee on March 27.  During the meeting, Rep. Basabe noted that FEMA flood maps can be outdated or wrong, so they cannot rely solely on that deciding factor when determining which homes to elevate.  As flooding worsens, property owners need tools to prepare their property for flooding, and elevation of the structure is the primary way to do that.  Senator Harrell asked if federal FEMA dollars would be available for those areas where homeowners want to raise their homes, and the response was that because the process would be voluntary, there would be no direct assistance, but there could potentially be a reduction in flood credits for flood insurance.  The bill passed unanimously.  

It awaits its final hearing before the Senate Rules Committee which is not scheduled to meet again in this session, meaning this bill is dead unless it later becomes part of another bill that’s in play.  (Return to Top of List)

My Safe Florida Home Program  ̶  HB 881 and SB 748 by Rep. Chip LaMarca (R-Lighthouse Point) and Senator Jim Boyd (R-Bradenton) amends the My Safe Florida Home Program, which offers grants of up to $10,000 on a $2 to $1 match to incentivize homeowners to harden their homes from future hurricanes and reduce their insurance premiums as a result.  The bill expands eligibility statewide, beyond the mostly coastal areas in the state’s “wind-borne debris zone.”  It also requires that licensed, rather than certified, inspectors are to provide hurricane mitigation inspections on site-built, single-family, residential properties that have been granted a homestead exemption.  The bill also revises the information provided to homeowners as part of a hurricane mitigation inspection, revises the hurricane mitigation inspectors that may be selected by the Department of Financial Services to provide hurricane mitigation inspections, and deletes a provision requiring the department to implement a certain quality assurance program.  Additionally, the bill deletes a provision that subjects mitigation projects to random reinspection for a specified timeframe; revises the improvements for which mitigation grants may be used, including secondary water barriers for roofs; and revises the amount that low-income homeowners may receive from the department under the grant program. 

The Department of Financial Services through the appropriations process is asking the legislature for another $100 million for the program, which would make another 10,000 homeowners eligible to participate.

HB 881 is now on the Special-Order Calendar tomorrow (April 25) for consideration before the full House.

SB 748 was heard in its final stop in the Senate Fiscal Policy Committee last Thursday.  An amendment was adopted that extends grants beyond single-family homes to include townhouses and increases eligibility to dwellings with an insured value of up to $700,000 (up from the current $500,000 or less).  The amendment was adopted, and the bill was passed unanimously and now awaits consideration before the full Senate.  (Return to Top of List)

Limitation of Actions Involving Real Estate Appraisers and Appraisal Management Companies  ̶  HB 213 and SB 398 by Rep. David Borrero (R-Miami-Dade) and Senator Ana Maria Rodriguez (R-Miami) is another bill aimed at reducing frivolous litigation.  With the exception of allegations of fraud, it requires any action against a real estate appraiser or appraisal management company that occurred prior to July 1, 2023 must be filed by July 1, 2024.  Subsequent actions would need to similarly be filed within one year after the alleged act is discovered or should have been discovered, but in any event brought no more than four years after services were rendered. 

The House bill was heard in the House Judiciary Committee on April 11 and an amendment was adopted that brings it more in line with the Senate version.  It created a two-year statute of limitations for an action to recover damages from an appraiser or appraisal management company based on contract, tort, or other legal theory for an act or omission in the performance of appraisal services or appraisal management services.  The amendment also reduced the seven-year statute of repose for such actions created by the bill to four years and added a provision specifying that all actions for damages or other relief brought against an appraiser or appraisal management company with respect to appraisal services or appraisal management services would be governed exclusively by the bill.  Rep. Borrero closed by saying “this is a great tort reform bill which adds on to the tort reform package spearheaded by Chair Gregory.” There were no questions or debate on the bill or amendment and it passed favorably.  HB 213 is now on the Special Order Calendar tomorrow (April 25) before the full House.

SB 398 was heard in the Senate Judiciary Committee on March 29 and an amendment was adopted that increases the amount of time that a plaintiff has to bring a lawsuit against an appraiser or appraisal management company for an act or omission in the performance of appraisal services from 1 year to 2 years after discovery.  The amendment also clarifies that the time periods in the bill do not apply to an action founded upon fraud.  The intent is to create a savings clause to ensure that plaintiffs having an accrued cause of action have at least 1 year after the effective date of the bill to bring an action for negligence in the provision of appraisal or appraisal management services.  There was no debate and the bill was unanimously approved.  SB 398 was heard in its final stop in the Senate Rules Committee last Wednesday and unanimously approved without questions or debate.  It now awaits consideration by the full Senate.  (Return to Top of List)  

Insurance (health)  ̶  SB 312 and HB 1111 by Senator Jay Collins (R-Tampa) and by Rep. Webster Barnaby (R- Deland) revises restrictions on the use of genetic information for insurance purposes by life insurance and long-term care insurance companies.  The bill specifies a restriction on and an authorized use of genetic information for insurance purposes by disability income carriers.  It provides that certain restrictions against unfair discrimination or unlawful rebates do not include value-added products or services offered or provided by insurance companies or their agents if certain conditions are met. 

SB 312 is scheduled to have its final hearing in the Senate Rules Committee today (April 24) at 1pm.

The comparable House bill, which focuses on the value-added insurance products, had its first hearing in the House Insurance and Banking Subcommittee on March 21.  It intends to clarify current law and remove red tape that bars life insurance providers the opportunity to offer value added insurance products, such as will preparation, grief counseling, and the safe return of a person’s remains if they passed away outside the US.  Supporters contend these services could benefit consumers at no additional cost or even at a discount to their policy, while creating more competition in the marketplace – also benefiting Florida consumers.  HB 1111 was heard in the House Commerce Committee on April 17, its final stop before the full House.  An amendment was adopted that reduced the number of hours of prelicensure coursework a life insurance agent applicant must complete in life insurance, annuities, and variable contracts from 40 hours to 30 hours.  The amendment was adopted.  The bill passed unanimously and now awaits consideration before the full House.  (Return to Top of List)

Telehealth Practice Standards  ̶  HB 267 and SB 298 by Rep. Tom Fabricio (R-Miramar) and Senator Jim Boyd (R-Bradenton) revises the definition of the term “telehealth” to strike the current prohibition on audio-only telephone calls, allowing Medicaid to elect reimbursement.  A similar bill reached an impasse in last year’s regular session over whether to strike the prohibition.  

The Senate Bill is scheduled to have its final hearing today (April 24) at 1pm before the Senate Rules Committee.  HB 267 passed unanimously in the House Health & Human Services Committee last Monday, its final committee stop before heading to the full House.  (Return to Top of List)

Physician Certifications for the Medical Use of Marijuana  ̶  SB 344 & HB 387 by Sen. Jason Brodeur, (R-Sanford), and Rep. Spencer Roach, (R-North Fort Myers) would allow physicians to use telehealth to recertify medical-marijuana patients. Patients are required to receive in-person physical exams from physicians to get certified to use medical marijuana. Under current law, they also are required to be evaluated in person at least once every 30 weeks for recertification. This legislation would allow recertification to be done through telehealth, which generally involves using online technology to provide care remotely.

HB 387 passed unanimously in its final stop in the Health and Human Services Committee on March 17 and still awaits consideration by the full House.  SB 344 was heard in the Senate Appropriations Committee on Health and Human Services last Tuesday and was unanimously approved.  It awaits its final hearing before the Senate Fiscal Policy Committee which meets for the last time tomorrow (April 25) but SB 344 is not on the agenda, raising doubt on the bill’s future, unless it later becomes part of another bill that’s in play or the House takes up HB 387 and passes it along to the Senate.  (Return to Top of List)

Health Insurance Cost Sharing  ̶  SB 46 and HB 1063 by Senator Tom Wright (R-Volusia) and Rep. Lindsay Cross (D-St. Petersburg) also addresses Pharmacy Benefit Managers (PBMs).  It requires specified individual health insurance companies and their PBMs to apply payments by or on behalf of policyholders toward the total contributions of the policyholders’ cost-sharing requirements.  Similar requirements would be made on specified health insurance groups and in contracts with PBMs.  

The Senate Banking and Insurance committee on April 5 heard SB 46 which creates provisions relating to prescription drug cost-sharing requirements for individual health insurance companies, group health insurance companies, and health maintenance organizations.  Senator Mayfield spoke in debate about how she fought for many years to bring transparency to PBM contracts, saying “Can we amend the bill to make it so they cannot change it during the 12-month formulary? Consumer protection should be the focus of insurance.” There was no amendment and the bill passed unanimously through the committee. The Senate bill never got its second hearing in the Senate Health Policy Committee, raising doubt on the bill’s future, unless it later becomes part of another bill that’s in play.  The House bill never received its first hearing before the Healthcare Regulation Subcommittee.  (Return to Top of List)

Coverage for Skin Cancer Screenings  ̶  HB 785 by Rep. Bobby Payne (R-Palatka) and Rep. Ralph Massullo (R-Inverness) and SB 142 by Senator Gayle Harrell (R-Stuart)   requires all health insurance plans, including HMOs, to cover and pay for annual skin cancer screenings.  Rep. Massullo is a dermatologist and Senator Harrell worked as a health care practice administrator for more than 30 years.  Skin cancer is the most common cancer in the U.S. with one in five people getting it; yet it is also highly curable if detected early.  The bill specifies the screening be performed by a licensed dermatologist without imposing any cost-sharing requirement on the patient.  The Senate bill never received its first hearing.  HB 785 was heard last Monday in the House Health & Human Services Committee.  It was unanimously approved and is awaiting consideration before the full House.  Because the subject was never heard in the Senate though, its ultimate passage in the legislature is in doubt.  (Return to Top of List)

Implementation of the Recommendations of the Blue-Green Algae Task Force  ̶  HB 423 by Rep. Lindsay Cross (D-St. Petersburg) and SB 1538 by Senator Linda Stewart (D-Orlando) requires owners of certain onsite sewage treatment & disposal systems to have the systems inspected; requires DEP to administer the program; and requires estimated pollutant load reductions in basin management action plans to meet or exceed specified requirements.  The bill revises requirements for allocation of such reductions, requires plans to provide & reevaluate certain mitigation strategies, and requires new or revised plans to list certain spatially focused projects.  Finally, this legislation requires DEP to assess certain projects, and requires assessments to be included in plan updates. 

The House bill never received its first hearing in the House Water Quality, Supply & Treatment Subcommittee.  The Senate bill adopted an amendment in the Senate Environment and Natural Resources Committee on April 4.  The amendment removes provisions requiring periodic inspections of onsite sewage treatment and disposal systems. It also removes language requiring new or revised basin management action plans to include a list that identifies and prioritizes spatially focused suites of projects in areas likely to yield maximum pollutant reductions.  The bill was unanimously approved. SB 1538 was heard in the Appropriations Committee on Agriculture, Environment and General Government on April 18 and was unanimously approved.  It awaits its final hearing before the Senate Fiscal Policy Committee which meets for the last time tomorrow (April 25) but SB 1538 is not on the agenda, raising doubt on the bill’s future, unless it later becomes part of another bill that’s in play.  (Return to Top of List)

Civil Remedies  ̶   SIGNED INTO LAW HB 837 and SB 236 by Reps. Tommy Gregory (R-Lakewood Ranch) and Tom Fabricio (R-Miami-Dade) and Senator Travis Hutson (R-Palm Coast), pick-up where the December 2022 special session on insurance market reforms left off, by eliminating one-way attorney fees in most lines of insurance – not just property insurance. 

On Friday March 24, Governor DeSantis signed HB 837 into law, with its provisions going into effect immediately.  The new law makes additional changes to state statutes to reduce excessive litigation and resulting costs to insurance consumers.  As passed, the bill does the following PROSPECTIVELY from March 24, 2023 on:

1. Adopts the federal standard for contingency fee multiplier in that it applies in only rare and exceptional circumstances.
2. Repeals the one-way attorney fee statute (as was done for property insurance in December 2022) for admitted and surplus lines.  Attorney fees will only be paid if the insurer totally denies insurance coverage and the plaintiff lawyer prepares (and wins) a declaratory judgment action (dec action) to determine coverage.  Reservation of rights letters do not constitute as a claim denial.  This section does NOT apply to property insurance total denial dec actions.
3. General negligence cases must be filed in 2 years, down from 4 years.
4. Changes Bad Faith laws:
   • Applies bad faith to liability claims.
   • Bad faith safe harbor is 90 days after receiving actual notice of a claim.
   • Negligence singularly and failure to tender policy limits is not bad faith.
   • A judge can consider failure of the policyholder/claimant to act in good faith when determining damages against the insurer.
   • Interpleader process will be used with more than one claimant and when claims exceed policy limits.
   • Binding arbitration is paid for by insurance company, all parties must agree to it and it is allowed with more than one claimant where policy limits are exceeded.
5. Provides that an offer of judgment applies to any insurance civil action.
6. Establishes uniform jury standards to transparently calculate personal injury or wrongful death medical damage costs:
   • Evidence of past paid medical bills and unpaid bill data will now be a part of a court case.
   • Ensures that a letter of protection is not inflated by ensuring the health insurance benefits are transparent to the jury. 
   • Evidence of past or future unpaid medical bills for those uninsured or on Medicaid/Medicare are subject to 120% of the Medicare rate or 170% of the Medicaid rate if no Medicare rate.
   • Evidence of past medical bills if letter of protection is sold is the sales price of the letter.
   • Evidence of future medical bills for insured plaintiffs is the provider health insurance rate for future care plus the plaintiff’s cost share.
   • The jury can also be presented any reasonable amount for past and future medical bills.
7. Ensures transparency about a provider/plaintiff counsel financial relationship to inform the jury.
8. All persons who contributed to the injury in a premises liability action will now become part of the civil action.  The bill establishes a presumption against liability for criminal acts of apartment complex non employees, owners or operators that occur in the complex if security measures and training is in place.
9. Changes Florida’s comparative negligence system so that if a plaintiff is more at fault for their injuries, they may not recover damages from the defendant.  Medical malpractice coverage/cases are not included with this change.  (Return to Top of List)

Causes of Action Based on Improvements to Real Property  ̶  SIGNED INTO LAW HB 85 and SB 360 by Rep. John Snyder (R-Stuart) and Senator Travis Hutson (R-Palm Coast) revises the timeline for filing lawsuits on design, planning, or construction defects.  It shortens the 10-year statute of repose to 7 years and adjusts the trigger date of that 7 year marker by changing the commencement dates to run based on the date the Certificate of Occupancy was issued.  The bill also specifies this timeline in regard to temporary certificate of occupancy, certificate of occupancy, and certificate of completion.  On March 15, the full Senate passed SB 360 on a 31-8 vote and sent it to the House. 

On March 23, the House adopted an amendment on HB 85 that made it identical to the Senate Bill, then substituted the Senate bill in its place.  The House passed SB 360 on an 89-8 vote and sent it to the Governor.  On April 13, the Governor signed the bill into law.  (Return to Top of List)

Civil Remedies for Unlawful Employment Practices  ̶  HB 315 and SB 738 by Rep. Alex Andrade (R-Pensacola) and Senator Jason Brodeur (R-Lake Mary) amends Section 760.11 of the Florida Statutes to provide limits on a judgment for punitive and compensatory damages for claims brought under the recently enacted Critical Race Theory (CRT) reforms.  The bill allows judgment for the total amount of punitive damages awarded to an aggrieved party claiming CRT discrimination to be at least $50,000 and up to $1 million. The judgment for the total amount of compensatory damages awarded to the aggrieved person for mental anguish and loss of dignity must be the amount of the aggrieved person’s actual damages or three times the amount of his or her highest annual salary, whichever is greater.  The total amount of recovery against the state and its agencies and subdivisions may not exceed the sovereign immunity limitations in statute.  The right to trial by jury is preserved in any such private right of action in which the aggrieved person is seeking compensatory or punitive damages, and any party may demand a trial by jury.  The Commission on Human Relations’ determination of reasonable cause is not admissible into evidence in any civil proceeding, including any hearing or trial, except to establish for the court the right to maintain the private right of action.  A civil action brought under this section must be commenced no later than one year after the date of determination of reasonable cause by the commission.  The commencement of such action divests the commission of jurisdiction of the complaint, except that the commission may intervene in the civil action as a matter of right.  The House bill is awaiting its first hearing in the House Civil Justice Subcommittee, while the Senate bill has been assigned to Judiciary, one of three committee stops.  (Return to Top of List)

Litigation Financing Consumer Protection – SB 1612 and HB 1447 by Senator Clay Yarborough (R- Jacksonville) and Rep. Toby Overdorf (R-Stuart) would regulate litigation finance (also called litigation funding or legal financing), where a third party unrelated to the lawsuit provides capital to a plaintiff involved in litigation in return for a portion of any financial recovery from the lawsuit.  The measure would require litigation financiers to register with the Department of State and file a surety bond along with other registration requirements.  It would also prohibit certain practices and conduct and establish requirements for such financiers to assess specified interest, fees and charges.  A similar effort in the 2021 session failed.  SB 1612 has been referred to the Judiciary and Fiscal Policy Committees and its House companion has been referred to the Civil Justice Subcommittee and Judiciary Committee.  (Return to Top of List)

Insurance (property) – SB 1340 and HB 1431 by Senator Erin Grall (R-Fort Pierce) and by Rep. Spencer Roach (R-North Ft. Myers) modify and expand the 2022 consumer insurance reforms. The Senate bill:

• Allows the recovery of extra-contractual damages for common law bad faith;
• Provides that automobile insurance companies also writing homeowners insurance may not continue to write in Florida unless at least 5% of their total policy count in the state is homeowners insurance policies;
• Requires new domestic residential property insurance companies to have a surplus of at least $30 million;
• Requires the Florida Office of Insurance Regulation (OIR) to conduct market conduct exams after a hurricane under certain conditions;
• Requires the OIR to publish litigation data from 2021, 2022, and 2023 on its website;
• Requires Citizens Insurance to file litigation data with the Legislature each year;
• Removes the requirement that a Citizens Insurance policyholder must prove water damage was not caused by flood;
• Requires the Insurance Consumer Advocate to prepare an annual report analyzing rate filings involving a rate increase request and summarizing the grounds upon which the increase was approved;
• Provides that an admitted or surplus lines insurance company writing homeowners or commercial property insurance may not cancel or nonrenew a policy during a pending claim;
• Requires insurance companies to provide certain adjuster and engineer reports to the policyholder within 10 days after receipt and prohibits companies from imposing an additional premium because of a filed a claim, except under specific circumstances;
• Limits the ability of insurance companies to cancel coverage, require additional repairs, or increase the policy premium for the first contract year once a binder is issued;
• Provides that if a roof deductible is applied, no other deductible may be applied to any other loss caused by the same peril and requires 48 hours’ notice to a homeowner before an inspection of a homeowner’s residential property;
• Provides that repeated violations of the 90-day pay or deny rule is an unfair trade practice and that the claim filing deadlines in 627.70132 are tolled during the period of active duty for a policyholder in active military service; and
• Requires that a policyholder must agree to appraisal, that appraisal must be invoked within 30 days after presentation of a dispute, and that appraisal may not be invoked after the filing of a lawsuit.

SB 1340 has been referred to the Senate Banking and Insurance, Judiciary and Fiscal Policy Committees.  HB 1431 is awaiting its first hearing in the House Insurance and Banking Subcommittee.  (Return to Top of List)

Surplus Requirements for Residential Property Insurers – SB 1528 and HB 1431 by Senator Linda Stewart (D-Orlando) and Rep. Spencer Roach (R-North Fort Myers) increases surplus requirements from the current $15 million to $20 million for new property insurance companies entering the Florida market.  Also, beginning July 1, 2030, and every 5 years after, the minimum surplus requirement must be increased by $5 million.  SB 1528 has been assigned to the Senate Banking and Insurance and Rules Committees, and its companion HB 1431 is awaiting its first hearing in the House Insurance and Banking Subcommittee.  (Return to Top of List)

Insurance Claims – SB 1662 and HB 1497 by Senator Erin Grall (R-Fort Pierce) and Representative Jeff Holcomb (R-Spring Hill) requires the Office of Insurance Regulation to consider the recovery of funds under specified provisions in reviewing an insurance company’s rates.  The bill also requires insurance companies to report the recovered funds under specified provisions and requires that a policyholder’s payment of a deductible or copayment is not a condition of a carrier’s claim payment.  SB 1662 has been referred to the Senate Insurance and Banking, Judiciary, and Rules Committees, and its companion HB 1497 has been referred to the House Insurance & Banking Subcommittee and Commerce Committee.  (Return to Top of List)

Motor Vehicle Insurance  ̶  HB 429 and SB 586 by Rep. Danny Alvarez (R-Brandon) and Senator Erin Grall (R-Fort Pierce) is a perennial effort to do away with Personal Injury Protection (PIP) coverage under Florida’s No-Fault insurance law and replace it with bodily injury (BI) liability coverage.  The primary difference between PIP and mandatory BI is that under PIP, someone injured in an auto accident seek coverage first under their own PIP policy, whereas under mandatory BI, someone injured in an auto accident would seek recovery from a responsible third-party’s (other driver’s) BI coverage. The House bill is still awaiting its first hearing in the House Insurance and Banking Subcommittee.  The Senate bill is still awaiting its first hearing in the Senate Banking and Insurance Committee.  (Return to Top of List)

Commercial Vehicle Insurance  ̶  SB 434 by Senator Tom Wright (R-Port Orange) revises liability insurance requirements for movers’ commercial motor vehicles and revises additional liability insurance requirements for commercial motor vehicles, providing an exception and a requirement for wreckers.  The bill currently has no House companion and is awaiting its first hearing in the Senate Banking and Insurance Committee.  (Return to Top of List)

Emergency Residential Property Insurance Assistance Trust Fund – SB 1526 and HB 1415 by Senator Tracie Davis (D-Jacksonville) and Rep. Angie Nixon (D-Jacksonville) establishes a trust fund within the Department of Financial Services (DFS) that will assist homeowners with annual income under $250,000 acquire homeowners insurance.  SB 1526 has been referred to three committees, and its House companion is now in the Insurance and Banking Subcommittee.  (Return to Top of List)

Home Repairs and Solicitation Sales  ̶  HB 419 by Rep. John Temple (R-The Villages) requires unlicensed vendors to take certain actions within a specified timeframe after receiving initial payment.  The bill provides conditions under which such vendors do not have just cause, provides criminal penalties and guidelines for prosecuting violations, and revises exemption from permitting requirements for certain solicitors, salespersons, and agents.  The bill currently has no Senate companion and is awaiting its first hearing in the House Regulatory Reform & Economic Development Subcommittee.  (Return to Top of List)

Flood Disclosures for Real Property Sales  ̶  SB 484 & HB 325 by Senator Jennifer Bradley (R-Fleming Island) & Rep. Susan Valdes (D-Tampa) would require people selling real estate to provide information to buyers about flooding.  Under the bill, sellers would be required to disclose information such as whether the property has sustained flood damage; whether it is located in a designated flood-hazard zone; whether sellers have received federal assistance for flood damage; and whether flood damage insurance claims have been filed.  The Senate bill is awaiting its first hearing in the Senate Judiciary Committee, while the House bill awaits its first hearing in the House Regulatory Reform & Economic Development Subcommittee.  (Return to Top of List)

Flood Zone Disclosures for Dwelling Units  ̶  SB 716 and HB 1291 by Senator Linda Stewart (D-Orlando) by Rep. Bruce Antone (D-Orlando) requires landlords or persons authorized to enter into rental agreements on behalf of landlords to make written disclosures to tenants before the commencement of a tenancy regarding whether the dwelling unit is located within a flood zone established by the Federal Emergency Management Agency.  This disclosure must include the risk designation for the flood zone and definition of the designation.  The Senate bill is awaiting its first hearing before the Senate Judiciary Committee, while the House bill has been assigned to the Civil Justice Subcommittee, Regulatory Reform & Economic Development Subcommittee, and Judiciary Committee.  (Return to Top of List)

Access to Pharmacies and Prescription Drugs Under Insurance and Pharmacy Benefit Managers Policies  ̶  HB 203 by and SB 420 by Rep. Karen Gonzalez Pittman (R-Hillsborough) and Senator Tom Wright (R-Port Orange) addresses much of the Governor’s proposal requiring OIR to examine PBMs to ascertain compliance with specified laws; requires PBMs to have standard contracts with pharmacies; prohibits PBMs from denying pharmacies & pharmacists the right to participate as contract providers; authorizes persons & entities to bring actions & injunctive relief; prohibits PBMs from engaging in acts against patients; and prohibits health insurers & PBMs from engaging in acts relating to covered clinician-administered drugs.  The House bill is awaiting its first hearing in the House Healthcare Regulation Subcommittee.  The Senate bill is awaiting its first hearing in the Senate Health Policy Committee.

Governor DeSantis released a legislative proposal of reforms January 12 on Pharmacy Benefit Managers (PBMs) that “will enhance transparency and reduce the influence of pharmacy middlemen, which will help consumers as well as our small pharmacies,” he said.  This is a subject we have followed for years and picks up where the Florida Legislature left off in March 2022 with passage of HB 357 to increase oversight of PBMs, in part by giving the Office of Insurance Regulation (OIR) more authority over the companies.  (Return to Top of List)

LMA Newsletter of 4-24-23