FAIA's 2020 Legislative Summary
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FAIA’s 2020 Legislative Summary
Property Insurance
Insurance Guaranty Associations, CS/HB 529 2
Life, Health, and Long-Term Care
Genetic Information for Insurance Purposes, HB 1189 3
Miscellaneous
Insurance Claims Data, CS/SB 292 4
Insurance Administration, CS/CS/SB 1606 5
Each year, FAIA provides a line-by-line analysis of legislation and how it affects the insurance industry.
Where shown, page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida
Statutes. Content shown in italics represents comments on final provisions.
This summary is not intended to constitute legal advice. If you have questions of a legal nature, please
consult your attorney. Any redistribution or republication without the express written approval of FAIA is
prohibited.FAIA’s 2020 Legislative Summary Property Insurance
CS/HB 529
Insurance Guaranty Associations
CS/HB 529
pp. 1–2, §631.57(1)(a), F.S.
Changes the amount of coverage that the Florida Insurance Guaranty Association
(FIGA) must provide for policies covering condominium associations or homeowners’
associations from a maximum of $100,000 multiplied by the number of condominium
units or other residential units, to $200,000 multiplied by the number of such units.
pp. 3–4, §631.57(3)(e), F.S.
Changes the amount of the emergency assessments that FIGA is authorized to levy
against any insurer from a maximum of two percent of that insurer’s net written
premiums in Florida for insurance accounts maintained by FIGA, to a maximum of four
percent of the same premiums.
Effective date: July 1, 2020
Chapter No. 2020-156, LOF
Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes. 2FAIA’s 2020 Legislative Summary Life, Health, and Long-Term Care
HB 1189
Genetic Information for Insurance Purposes
HB 1189
pp. 1–3, §627.4301, F.S.
Provides that life insurers and long-term care insurers may not cancel, limit, or deny
coverage or establish differentials in insurance rates based on genetic information. Also
provides that such insurers may not require or solicit genetic information, use genetic
test results, or consider a person’s decisions or actions relating to genetic testing in any
manner for any insurance purpose.
Current law applies these prohibitions to health insurers, but the bill expands the
applicability of them to include life insurers and long-term care insurers as well.
Specifies that these prohibitions do not prevent a life insurer or long-term care insurer
from accessing an individual’s medical record as part of an application exam or from
considering a medical diagnosis included in the medical record, even if a diagnosis was
made based on the results of a genetic test.
Applies to policies entered into or renewed on or after January 1, 2021.
This proposal has long been a priority for incoming Speaker of the House Chris
Sprowls. Many insurance companies were strongly opposed to the bill out of fear of the
possible moral hazard it could create. Insureds that are aware of a preexisting condition
as a result of taking a genetic test could choose to purchase insurance or more
insurance than they would have otherwise purchased, therefore putting carriers on the
hook for claims for which they were not able to adequately price. Florida is now one of
the few states, if not the only, to have a prohibition like this, and it remains to be seen
whether the law will be challenged in court.
Effective date: July 1, 2020
Chapter No. 2020-162, LOF
Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes. 3FAIA’s 2020 Legislative Summary Miscellaneous
CS/SB 292, CS/CS/SB 1606
Insurance Claims Data
CS/SB 292
pp. 1–4, §626.9202 and §627.444, F.S.
Requires admitted and non-admitted insurers to provide, by e-mail or through an
electronic portal, a loss run statement to an insured within 15 days of receipt of a written
request submitted by the insured. For personal lines of insurance, an insurer may
instead provide the insured with information on how to obtain a loss run statement at no
charge through a consumer reporting agency. However, such insured may still request
the insurer to provide a loss run statement after receiving information from a consumer
reporting agency.
Requires the insurer to notify the agent of record that the loss run statement was
provided to the insured.
Provides the loss run statement must include a loss run history for the preceding five
(5) years or, if the loss run history is fewer than five (5) years, a complete loss run
history with the insurer.
Specifies that an insurer is not required to provide loss reserve information as part of a
loss run statement.
Provides the insurer may not charge a fee for preparing and providing annually one
loss run statement.
SB 292 was FAIA’s highest priority bill of the 2020 Legislative Session because Florida
was among the states that did not have a statutory framework dictating how carriers
must respond to loss run requests. FAIA drafted the language, secured bill sponsors,
and worked with lawmakers and industry partners to find a compromise that worked for
everyone.
Over the last couple of years, agents have been having a more difficult time obtaining
loss runs or claims information on behalf of their clients or potential clients. While some
insurance carriers do provide loss runs in a timely manner, many do not. FAIA believes
that insurance consumers should have access to this information in order to make an
informed purchasing decision, and the passage of SB 292 should provide that certainty
to consumers.
Effective date: January 1, 2021
Chapter No. 2020-51, LOF
Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes. 4FAIA’s 2020 Legislative Summary Miscellaneous
CS/SB 292, CS/CS/SB 1606
Insurance Administration
CS/CS/SB 1606
Electronic Signature Requirement for a Motor Vehicle Salvage Certificate of Title
pp. 3–4, §319.30(3)(d), F.S.
Requires electronic signatures on odometer disclosures related to salvage certificates
of title to use Level 2 security requirements, consistent with the applicable federal
standard.
This applies the same security requirements to electronic signatures on odometer
disclosures for both certificates of destruction and salvage certificates of title and allows
certificate applicants to electronically sign odometer disclosures remotely in both
instances, rather than remotely when applying for a certificate of destruction but in-
person only for salvage certificates of title.
Workers’ Compensation Insurance Reporting Requirements
pp. 4–6, §440.12(1)(a) and §440.20, F.S.
Allows employers and their carriers, upon authorization of the injured worker, to pay
indemnity benefits, including associated monetary penalties, by sending money
electronically to the injured worker via their account with a money transmitter.
Indemnity and penalties paid via money transmitter accounts is considered paid on the
date the funds become available to the injured worker for withdrawal.
Civil Remedy Notices
pp. 6–9, §624.155(3) and §624.422(2), F.S.
Requires the Department of Financial Services (DFS) to provide the civil remedy notice
to the authorized insurer by e-mail and to the email address designated by the insurer.
Changes the current 65-day tolling period after the mailing of the civil remedy notice by
the DFS, to a 60-day tolling period after the insurer receives the civil remedy notice from
the DFS, for an action under §624.155, F.S.
Adds an additional tolling period to §624.155, F.S., by tolling the statute of limitations
for an additional 60 days following the date the appraisal is invoked in a residential
property insurance claim.
Under the new law, the statute of limitations theoretically could be tolled for up to 120
days to allow the insurer the 60-day cure period and also to allow the parties to pursue
the appraisal process prior to expiration of the statute of limitations.
Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes. 5FAIA’s 2020 Legislative Summary Miscellaneous
CS/SB 292, CS/CS/SB 1606
Trade Secret Information
pp. 8–9, §624.307 and §624.315, F.S.
Limits the release of aggregate information by the Office of Insurance Regulation (OIR)
and the DFS if protected trade secret information can be individually extrapolated from
such information.
This could occur where aggregate information is reported on a line of insurance in which
a small number of companies participate such that one or more of the participating
companies could back-out their own data from the reported aggregate information and
discern the trade secret information of their competitor.
The bill does not create a new public records exception, rather, it limits what the OIR
and the DFS may do with public record information that is protected as a trade secret,
but is not confidential and exempt public record information.
Extension of Deadlines in Insurance Rate and Form Filing
pp. 15–19, §627.062, §627.0651 and §627.410, F.S.
Provides that if the last day of the timeframe for the OIR to review and approve or
disapprove a rate filing for property, casualty, or surety insurance, including motor
vehicle insurance, or to review an insurer’s form filing, falls on a weekend or holiday
recognized by Florida governmental agencies or branches, then the period shall be
extended until the conclusion of the next business day.
Residential Condominium Loss Assessments
p.19, §627.714(2), F.S.
Provides that the amount of loss assessment coverage that can be assessed against a
condominium unit owner is based upon the coverage limit for loss assessment that was
in effect in the unit owner’s policy one day before the date of an occurrence that
resulted in the loss for which the unit owner is being assessed.
Prepayment of Premium on Initial Policy Purchase and Cancellation of Motor
Vehicle Insurance Policies
p. 19, §627.7295(4), F.S.
Reduces the limitation on insurer cancellation of a motor vehicle insurance policy
during the first 60 days following the effective date of a policy to the first 30 days
following the effective date of a policy.
Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes. 6FAIA’s 2020 Legislative Summary Miscellaneous
CS/SB 292, CS/CS/SB 1606
This change was necessary to make the law consistent with the 2019 change in the law
that reduced the required collection of initial premium on motor vehicle insurance
policies from two month’s premium to one month’s premium.
Travel Insurance
pp. 9–15 and 19–22, §626.321 and §647.01-647.08, F.S.
Expands the Florida Insurance Code to include a new chapter of statutes to regulate
the transaction of travel insurance based on the National Association of Insurance
Commissioners (NAIC) Model Act.
Effective date: July 1, 2020, unless otherwise expressly provided.
Chapter No. 2020-63, LOF
Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes. 7You can also read
