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2021 Legislative Session
Senate Bill 76 - INSURANCE
Makes changes to address issues related to property insurance policies, claims, and litigation:
- Managing General Agents: changes current laws regarding managing general agent (MGAs) that are controlled by, or a controlling person of, an insurer it contracts with, from the requirement that the contract between the insurer and MGA specify appropriate underwriting guidelines and provides certain exemptions from the Florida Office of Insurance Regulation (OIR) oversight.
- Public Adjusting: prohibits licensed contractors and subcontractors from advertising, soliciting, offering to handle, handling, or performing public adjuster (PA) services without a license. The prohibition does not prohibit the contractor from recommending that the consumer consider contacting his or her insurer to determine if the proposed repair is covered by insurance. However, the contractor may not violate s. 489.147, F.S.
- Prohibits a Public Adjuster (PA), PA apprentice, or person acting on behalf of a PA or PA apprentice, from offering financial inducements for (1) allowing a roof inspection of residential property, or (2) making an insurance claim for roof damage and prohibits them from offering or accepting consideration for referring services related to a roof claim. Each violation subjects the licensee to up to a $10,000 fine. Unlicensed persons who are not otherwise exempted from PA licensure commit the unlicensed practice of public adjusting when they do these prohibited acts and are subject to a $10,000 fine per act and the criminal penalty for unlicensed activity (3rd degree felony).
- A property insurance claim or reopened claim must be provided to the insurer within two (2) years of the date of loss. A supplemental claim is not barred if notice is given while the claim it supplements remains open.
- Prevents the filing of a claim, supplemental claim, or reopened claim under a property insurance policy unless notice of the claim, supplemental claim, or reopened is provided to the insurer within two (2) years of the date of the loss.
Effective Date: July 1, 2021.
Last Action: House - Message sent to Senate April 30, 2021.
Bill Text: PDF
HB 1209 - Department of Financial Services
The bill modifies several areas regulated by the Department of Financial Services including:
- Division of Public Assistance Fraud: establishes DPAF as a criminal justice agency.
- Insurance Field Representatives and Operation: modifies the continuing education requirements of insurance licensees except title insurance agents. Modifies requirements related to renewal appointments. Adds a designation that will qualify a person for licensure as an insurance agent's customer representative. Increases the maximum length of suspension of title insurance agents from one (1) year to two (2) years.
- Protecting Proprietary Business Information: prohibits a person from requiring an insurance agent or agency to provide the replacement cost estimator or other proprietary underwriting information as a condition to extending credit secured by real property, nor may an insurance agent or agency provide this information.
- Surplus Lines: removes a notice requirement before exporting policies. Allows an agent to export a flood insurance policy to a surplus insurer without seeking coverage from three or more authorized insurers. Allows insurance coverage for deductibles to be written on surplus lines without meeting due diligence requirements.
- Bail Bond Agents: criminalizes an agent's aiding or abetting of unlicensed activity.
Effective Date: July 1, 2021.
Last Action: Ordered enrolled on April 26, 2021.
Bill Text: PDF
Senate Bill 1598 - Agency Package - PROTECTING INSURANCE POLICYHOLDERS
- Requires an entity that is licensed or issued a certificate of authority by the Department of Financial Services (DFS) or the Florida Office of Insurance Regulation (OIR) to respond to document requests from the DFS Division of Consumer Services.
- Eliminates the $60 fee for a new or renewal adjusting firm license.
- Defines "claims adjusting" under the "Licensing Procedures Law."
- Specifies that entities must comply with s. 626.8696, F.S., with respect to possessing an adjusting firm license, but provides that an adjusting firm's branch place of business does not require licensure if it meets specified requirements.
- Revises the Licensing Procedures Law's prohibition against unlicensed activity to include knowingly aiding or abetting an unlicensed person in transacting insurance or otherwise engaging in insurance activities in this state without a license. A person who does so commits a third-degree felony.
- Authorizes DFS to suspend, revoke, or refuse to issue the license of an insurance agent, adjuster, customer representative, service representative, or managing general agent that makes a consumer's personal financial or medical information available to the public, or initiates in-person or telephone solicitation with a prospective customer after 9 p.m. or before 8 a.m., unless the customer requests otherwise.
- Prohibits the sale of industrial life insurance policies, effective July 1, 2021.
- Increases to 10 days, the cooling-off period during which a consumer may cancel his or her contract with a public adjuster.
- Requires that the public adjuster's written estimate of loss must include an itemized, per-unit estimate of the repairs. The public adjuster must provide the estimate to the claimant or insured within 60 days after the execution of the public adjuster contract.
- Prohibits a licensed contractor or subcontractor from soliciting an insured to file a claim unless licensed and compliant as a public adjuster.
- Prohibits persons other than a public adjuster or attorney from advertising, providing advice, or assisting with claims adjusting on behalf of a public adjuster, insured, or third-party claimant.
- Requires disclosure that surplus lines insurance is not covered by the Florida Insurance Guaranty Association prior to placing coverage with a surplus lines insurer.
- Expands the definition of sliding, a practice that violates the Unfair Insurance Trade Practices.
- Applies the property insurance claim investigation and communication requirements of s. 627.70131, F.S. to surplus lines insurers.
- Requires a residential property insurer begin its claim investigation within 14 days of receiving a proof of loss statement; current law provides 10 business days.
- Requires insurers to provide to policyholders the adjuster's name and state adjuster license number when a claim investigation involves a physical inspection of the property and maintain a record of each adjuster who communicates with the policyholder.
- Requires the insurer to provide notices that explain when the insurer is providing a preliminary or partial estimate or making a claim payment that is not the full and final payment for the claim.
- Prohibits the inclusion of a foreign venue clause within any personal residential property insurance policy sold in Florida that insures only property located in this state. This prohibition also applies to surplus lines insurers and authorized surplus lines insurance.
- Requires insurers to provide the Homeowner Claims Bill of Rights pursuant to any personal lines residential property insurance claim and adds notice regarding the right to receive interest and the utility of taking video of damages and repairs.
- Removes the insured's obligation to pay a $100 deductible to FIGA in order to receive payment on their claim through FIGA.
- Revises the definition of a 'covered claim' for purposes of the Florida Workers' Compensation Insurance Guaranty Association, to exclude the return of premium resulting from a policy that was not in force on the date of the final order of liquidation.
Effective Date: Upon becoming law.
Last Action: Ordered enrolled April 28, 2021.
Bill Text:
PDF
Senate Bill 1120 - PUSHING BACK AGAINST UNSOLICITED TELEMARKETNG
- Requires all sales telephone calls, text messages, and direct-to-voicemail transmissions to have the receiving consumer's prior express written consent if the call will be made using an automated machine to dial the recipient's phone number or will play a recorded message upon connection with the recipient.
- Amends the Florida Telemarketing Act to prohibit telephone sellers or salespersons from calling consumers outside of the hours between 8 a.m. and 8 p.m. in the consumer's time zone and prohibits telephone sellers or salespersons from contacting consumer on the same subject matter more than three times in a 24-hour period. The bill also clarifies that calls made through an automated dialer or recorded message are subject to the same prohibitions.
Effective Date: July 1, 2021.
Last Action: Ordered enrolled on April 28, 2021.
Bill Text: PDF
House Bill 7017 - PROTECTING CONSUMERS
- Requires specified entities that apply for or receive any gift or grant with a value of $50,000 or more from any foreign source to disclose such gift or grant to the appropriate agency, along with additional specified information.
- Requires the Department of Financial Services (DFS) to manage a website to publish required disclosures and maintain an active and current list of ineligible entities on the website, and requires DFS to investigate an allegation of a disclosure violation.
Effective Date: July 1, 2021.
Last
Action: Ordered enrolled on April 26, 2021.
Bill Text: PDF
You can monitor this legislation for updates at the Florida House and Florida Senate websites.
Supervision of Customer Representatives and Marketplace Transactions
Chapter 626, Part II General Lines Agents - please pay particular attention to section 626.7315, F.S. - Prohibition against the unlicensed transaction of general lines insurance. This section discusses activities
that can be lawfully conducted only by a licensed and appointed general lines agent. Florida Statute sections 626.7352, 626.7353, and
626.7354, apply specifically to customer representatives.
Licensed and appointed customer representatives are prohibited from transacting health insurance business unless the insurance is sold by a general lines agent through an insurer they are also appointed as a general lines agent.
Agents or agencies are prohibited
from allowing their customer representatives to assist with any aspect with federal health Marketplace enrollments. The Centers for Medicare & Medicaid Services (CMS) does not authorize a role for anyone who is not an agent, broker, or navigator for enrollments. Anyone not registered with the Marketplace who assists with enrollments may be violating federal law and subject to federal crimes in addition to violations/crimes under the Florida law.
Agents and agencies employing customer representatives need to be cognizant that not only can they also be held responsible for the acts of customer representatives, but must be diligently aware different lines of business have various laws. Customer representatives who commit violations will be held accountable for their actions, but others, including supervising general lines agents and the agency's agent in charge, will be held responsible for aiding and abetting the customer representative in violating the law.
Fraud Reporting Requirement Reminder
While anyone can and is encouraged to report insurance fraud, industry professionals are often the most likely to recognize a fraudulent insurance activity when they see it. When licensees observe actions as they occur or learn of the activity after the fact, they have a duty to report it to the Department.
Any Insurer, agent, or any other person licensed under the Florida Insurance Code, or any employee of a licensee who becomes aware or has knowledge of a fraudulent insurance act, is required to report it and provide pertinent information to the Division of Investigative and Forensic Services.
Fraudulent insurance acts include:
- Knowingly presenting, causing to be presented, or preparing any written statement as part of an application for insurance or insurance claim, which the person knows to contain materially false information.
- Knowingly concealing information concerning any fact related to a claim or application for insurance.
- Knowingly submitting a false, misleading or fraudulent application or other document seeking an exemption from licensure as a health care clinic or demonstrating compliance with part X of Chapter 400 with the intent to use the license, or exemption from licensure, or demonstration of compliance, to provide services or seek reimbursement under the Florida Motor Vehicle No-Fault Law.
- Knowingly submitting a claim for payment or other benefit under a personal injury protection policy under the Florida Motor Vehicle No-Fault Law when the submitter knows the payee knowingly submitted a false or misleading, or fraudulent application or other document when applying as a health care clinic, seeking an exemption from licensure or demonstrating compliance with part X of Chapter 400.
[See ss. 626.989(6), ss. 627.730-627.7405, and Chapter 400, Florida Statutes]
Title Agencies - Update Your Title Agent in Charge Before July 20, 2021
The Department recently sent an email to all title insurance agencies instructing them to enter the
name of the agency's title agent in charge in their MyProfile account. The Department recently added this function to Title agencies' MyProfile accounts. Title agencies are required to update their agent in charge by July 20, 2021 or the agency license will be cancelled. [Florida Statutes
626.0428(4)(f)]
Previously, title agencies were required to submit any changes in the agent in charge or owners/officers in writing to our Bureau of Licensing.
To add or update your agency's agent in charge, or update owners/officers, sign into the agency's
MyProfile account and you will find the new options in the left column of the profile. Future changes in the agent in charge or owners/officers must be made through your MyProfile account.
Our MyProfile help page contains information about how to accomplish various tasks using MyProfile.
COVID-19 Extension for Customer Representatives Expires June 26, 2021
Governor Ron DeSantis issued Executive Order 21-94 on April 27, 2021, to extend Executive Order 20-52, which declared a public health emergency in Florida. As a result of this extension, the directive of CFO Jimmy Patronis that allows 4-40 licensees to work remotely has also been extended until the expiration of the Governor’s Order.
The Governor’s Order will expire on June 26, 2021.
We recommend all affected agencies, agents in charge, supervising general lines agents and customer representatives continue to monitor future developments on this topic under "Industry Alerts" on the Division's website to maintain compliance.