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Changes in State Laws affect Corporate Policies

9/8/23

Senate Bill 2D, also known as CS/SB 2-D, addresses the increasing lack of access and affordability of property insurance in Florida. Here are the key provisions of the bill:

1. Reinsurance to Assist Policyholders (RAP) Program:

   • Authorizes a $2 billion dollar reimbursement layer of reinsurance for hurricane losses directly below the mandatory layer of the Florida Hurricane Catastrophe Fund (FHCF).

   • Insurers do not pay premiums for RAP program coverage but must reduce rates to reflect savings.

2. My Safe Florida Home Program:

   • Appropriates $150 million from the General Revenue Fund to provide hurricane mitigation inspections and matching grants for hurricane retrofitting on homestead single-family homes valued at $500,000 or less.

3. Contractor Solicitation of Roof Claims:

   • Prohibits contractors from encouraging consumers to contact them for the purpose of making a property insurance claim for roof damage without providing specific notices.

4. Separate Roof Deductibles:

   • Allows property insurers to include a separate roof deductible in a personal lines residential property insurance policy.

5. Roofs – Insurer Underwriting:

   • Prohibits an insurer from refusing to issue or renew a homeowner’s insurance policy for a residential structure with a roof less than 15 years old solely because of the roof's age.

6. Insurer Claims Handling:

   • Requires property insurers to conduct any physical inspection of the property related to a claim within 45 days of receiving proof of loss statements.

7. Civil Remedy:

   • Requires a claimant to establish that a property insurer breached the insurance contract to prevail in a bad faith claim for extracontractual damages.

8. Attorney Fees:

   • Creates a new standard for the award of an attorney fee multiplier in property insurance litigation.

   • Provides that a defendant insurer may obtain attorney fees and costs associated with securing a dismissal without prejudice for the plaintiff’s failure to provide the required Notice of Intent to Initiate Litigation.

9. Assignment of Benefits (AOB):

   • Revises the definition of “assignment agreement” and requires that a valid AOB must specify that the assignee will hold harmless the assignor from all liabilities, including attorney fees.

10. Regulation of Insurers and Insurer Transparency:

    • Creates a Property Insurer Stability Unit within the Office of Insurance Regulation (OIR) to aid in the detection and prevention of insurer insolvencies in the homeowners’ and condominium unit owners’ insurance market.

The bill aims to address the challenges faced by homeowners in Florida regarding property insurance and to ensure that insurance companies operate transparently and responsibly.