FAIA's 2021 Legislative Summary

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FAIA’s 2021 Legislative Summary

Property Insurance
   Property Insurance Reform, CS/CS/CS/SB 76                                                                 2
   Community Associations, CS/CS/SB 630                                                                      8

Agent Issues
  Department of Financial Services, CS/CS/CS/HB 1209                                                         9

Motor Vehicle Insurance
  PIP Repeal/Motor Vehicle Insurance, CS/CS/SB 54                                                            12
  Motor Vehicle Coverage Exclusions, CS/SB 420                                                               17
  Motor Vehicle Rentals. CSCSSB 566                                                                          18

Miscellaneous Insurance
   Consumer Protection, CS/CS/SB 1598                                                                        20

Miscellaneous
   Civil Liability for Damages Related to COVID-19, CS/SB 72                                                 24

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 2021 Legislative Summary                                                                    Property Insurance
                                                                                                    CS/CS/CS/SB 76

Property Insurance Reform
CS/CS/CS/SB 76

Prohibition on Solicitation and Offering of Inducements

pp. 4–7, §489.147, F.S.

Prohibits contractors from: soliciting residential property owners through prohibited
advertisements; offering the residential property owner consideration to perform a roof
inspection or file an insurance claim; offering or receiving consideration for referrals
when property insurance proceeds are payable; practicing as an unlicensed public
adjustor; or, providing an authorization agreement to the insured without providing a
good faith estimate. Contractors must provide notice to residential property owners of
duties under this section. Violations of this section are subject to license discipline by
the Department of Business and Professional Regulation (DBPR) and a $10,000 fine
per violation.

The lack of regulatory oversight has allowed contractors to use deceptive advertising
through print, media, and verbal communications to entice property owners to file a
claim.

Litigated Claims Reporting Requirements

pp. 7–9, §624.424(11), F.S.

Requires insurers to annually file with the Office of Insurance Regulation (OIR)
specified data on litigated residential and commercial property insurance closed claims.

Under current law, insurers must file quarterly and annual reports with the OIR
containing various financial data and actuarial opinions; however, they are not currently
required to report data regarding the litigation of claims. Because of this, the OIR
oftentimes has difficulty with data call participation as insurers indicate that they do not
track this data as part of their claims evaluation and adjusting process. Not only is this
data helpful with regulatory oversight, but it provides meaningful information to the
executive and legislative branches as they consider public policy reforms.

OIR Authority to Examine MGAs

pp. 8–10, §624.424(13), §626.7451(6), §626.7452 F.S.

Clarifies that the OIR has the same authority to examine Managing General Agencies
(MGA) as it has to examine insurers, whether or not an MGA is an affiliate of an insurer.
This authority applies even if the MGA solely represents a single domestic insurer. The
bill also requires each insurer paying an affiliate to produce information regarding the

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FAIA’s 2021 Legislative Summary                                                                    Property Insurance
                                                                                                    CS/CS/CS/SB 76

fee paid to the affiliate upon request by OIR. The OIR may determine whether the fee
an insurer pays to an affiliate is fair and reasonable and, in so doing, may consider the
actual cost of the services being provided in exchange for the fee. The bill establishes
that all MGAs must execute contracts with the insurers that they do business with, even
if they are MGAs that control, or are controlled by, an insurer. Further, the bill
establishes that the scope of the examination of an insurer’s affiliates in a holding
company system will be limited to information reasonably necessary to ascertain an
insurer’s financial condition. The OIR’s examination of an insurer’s affiliate will not
extend to the passive investors of affiliates within the holding company system that do
not provide services directly or indirectly to the insurer or do not have direct or indirect
relationships with the insurer unless reasonably necessary.

According to the OIR, the lack of contracts between insurers and their affiliate MGAs
sometimes makes it difficult to determine how much the insurer is paying and what
services it is receiving from the MGA. As part of the examination process, all persons
being examined must make available to the OIR the accounts, records, documents,
files, information, assets, and matters in their possession or control that relate to the
subject of the examination. As part of an examination, the OIR reviews contracts
between insurers and MGAs so that it can determine how much an insurer is paying its
MGA and what services the insurer is receiving for the fee it pays.

Prohibition on Unlicensed Public Adjusting

pp. 10–12, §626.854(15)(20), F.S.

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 §489.147, F.S., summarized above
Additionally, it prohibits a 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. It also prohibits
them from offering or accepting consideration for referring services related to a roof
claim. Each violation subjects the PA or PA 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 engage in these prohibited acts and are subject
to a $10,000 fine per act and the criminal penalty for unlicensed activity (3rd degree
felony).

Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes.                    3
FAIA’s 2021 Legislative Summary                                                                    Property Insurance
                                                                                                    CS/CS/CS/SB 76

Citizens Property Insurance Corporation

pp. 12–35, §627.351, F.S.

Provides that a personal lines residential risk seeking to be newly insured by Citizens
Property Insurance Corporation (Citizens) is ineligible for coverage if it receives an offer
of comparable coverage from an authorized insurer that is not more than 20 percent
higher than the Citizens premium. Current law has a 15 percent eligibility threshold for
new policyholders.

Specifies that Citizens need not purchase reinsurance when it is not available at
reasonable rates, but requires that Citizens' rate calculations must include the cost of
reinsurance to cover its projected 100-year probable maximum loss even when Citizens
does not purchase reinsurance.

Increases the 10 percent cap (the "glide path") on Citizens’ rate increases by one
percent annually, beginning in 2022, until the cap reaches 15 percent in 2026.

Requires that the Citizens budget allocations for employee compensation and all
proposed raises for an employee exceeding 10 percent of their current salary must be
approved by the Citizens board of governors. It also requires Citizens to have an
employee compensation plan approved by the board of governors.

Claims Filing Deadlines

pp. 35–38, §627.70132, §927.7015, F.S.

Revises §627.70132, F.S., governing notice of property insurance claims:
 Requires that notice of a property insurance claim or reopened claim be provided to
  the insurer within two years of the date of loss.
 Specifies that the date of loss for claims resulting from weather-related events are
  the date a hurricane makes landfall or when different types of weather-related
  events are verified by National Oceanic and Atmospheric Administration (NOAA) at
  the location of the property.
 Defines a reopened claim as a claim that was previously closed but has been
  reopened upon an insured's request for additional costs for loss or damage
  previously disclosed to the insurer.
 Defines a supplemental claim as a claim for additional loss or damage from the
  same peril the insurer has previously adjusted discovered while completing repairs
  or replacement pursuant to an open claim for which timely notice was previously
  provided to the insurer. A supplemental claim is barred unless notice of the
  supplemental claim was give to the insurer within three years after the date of loss.

Florida’s claims reporting deadlines are longer than many of its catastrophic-prone peer
states. Longer claims reporting deadlines have shown a propensity to invite fraud and

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FAIA’s 2021 Legislative Summary                                                                    Property Insurance
                                                                                                    CS/CS/CS/SB 76

abusive practices the further the claims are from the date of loss. Under current law, a
homeowner has three years to file a claim due to a catastrophic loss, and five years
from the date of loss for non-catastrophic losses.

Pre-suit Notice/One-way Attorney Fees

pp. 12, 35, 38–43, §626.9373, §627.428, F.S.

Creates the following framework governing property insurance litigation:

    Notice of Intent to Initiate Litigation
     A claimant must provide the Department of Financial Services (DFS) with written
     notice of intent to initiate litigation on a form provided by the DFS. Notice must be
     provided at least 10 business days before filing suit, but may not be given before the
     earlier of the insurer's denial of coverage or the 90-day period to adjust a claim
     under §627.70131, F.S. Notice must detail the alleged acts or omissions of the
     insurer giving rise to the suit and either (1) ([if the insurer denied coverage] an
     estimate of damages; or, (2) [if the insurer did not deny coverage] a pre-suit
     settlement demand that itemizes damages, attorney fees, costs, and the disputed
     amount. Notice may include supporting documents. Notice and supporting
     documents are admissible only in a proceeding regarding attorney fees.

    Abatement or Dismissal Without Prejudice of Actions
     The court must dismiss without prejudice any claimant's suit if the claimant has not
     complied with the requirement to provide 10 business days’ notice of intent to initiate
     litigation.

    Claimant Duties
     A claimant must timely (1) cooperate with the insurer in the claim investigation; (2)
     provide requested records and documents related to any services that have been
     provided; (3) provide the insurer with accurate and up-to-date estimates of the scope
     of work needed to be performed; and (4) allow the insurer to inspect, photograph, or
     evaluate, in a reasonable manner and time, the property.

    Insurer Duties
     The insurer must have a procedure for the prompt investigation, review, and
     evaluation of the noticed dispute and must investigate each claim in accordance with
     the Florida Insurance Code. An insurer must respond in writing within 10 business
     days after receiving notice of intent to initiate litigation. If the insurer denied
     coverage, the response must: (1) accept coverage, (2) deny coverage, or (3) assert
     the right to reinspect the property, which it has 14 business days to do. If the notice
     alleges the insurer did an act other than denying coverage, the insurer must respond
     by (1) making a settlement offer, or (2) requiring the claimant to participate in an
     appraisal or another method of alternative dispute resolution (ADR). If the appraisal

Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes.                    5
FAIA’s 2021 Legislative Summary                                                                    Property Insurance
                                                                                                    CS/CS/CS/SB 76

     or ADR is not concluded within 90 days after the 10-day notice of intent to initiate
     litigation, the claimant may immediately file suit.

    Award of Attorney Fees in Property Insurance Litigation
     Claimant attorney fee awards for residential or commercial property insurance
     policies, excluding assignment litigation, are governed by dividing the claimant's
     recovery above the insurer's settlement offer by the disputed amount (difference
     between the claimant's and insurer's settlement offers). If the claimant's recovery
     above the insurer's settlement offer is at least 50 percent of the disputed amount, the
     insurer pays all the claimant's fees. If the recovery above the insurer's settlement
     offer is at least 20 percent, but less than 50 percent of the disputed amount, then the
     insurer must pay the same percentage of the claimant's attorney fees and costs. If
     the claimant's recovery above the insurer's settlement offer is less than 20 percent of
     the disputed amount, there is no fee award. Attorney fees may not be awarded for
     those attorney fees incurred before a suit is dismissed for failure to provide the
     notice of intent to initiate litigation.

    Tolling
     Tolls statute of limitations under §95.11, F.S., for 30 days if (1) the claim is not
     resolved in the pre-suit notice process; and, (2) the statute of limitations expires
     within 30 days of the conclusion of the pre-suit notice process.

Following the passage of assignment of benefits (AOB) reforms in 2019, Florida saw a
reduction of more than 50 percent of litigated claims involving an AOB. This was in large
part a function of the newly established sliding scale for the award of attorney fees. The
scale accomplished its intended purpose of bringing the insurer’s final offer and the
claimants demand closer together. However, the overall count of litigated property
insurance claims did not decrease as many trial attorneys shifted their focus from third-
party AOB claims to first-party claims. A recent report published by the OIR showed that
in 2019, Florida accounted for 8.16 percent of property insurance claims filed in the
country. The same year, Florida accounted for 76.45 percent of litigated property
insurance claims in the country. This was not an anomaly as the percentages were
roughly the same for the three preceding years. Additionally, Florida has seen a growing
percentage of property insurance claims where the first notice of loss is provided to an
insurer at the same time as being served process with the intent to litigate on the
underlying claim. The attorney fee schedule (modified AOB schedule) and the pre-suit
notice seek to minimalize the impacts of frivolous litigation on the property insurance
marketplace.

Insurance Holding Company Act

pp. 43–44 §628.801, F.S.

Specifies that when the OIR examines an insurer that is part of an insurance holding
company:

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FAIA’s 2021 Legislative Summary                                                                    Property Insurance
                                                                                                    CS/CS/CS/SB 76

    The OIR may require insurers that are members of an insurance holding company to
     produce records, books, and other information in the possession of the insurer or its
     affiliates as are reasonably necessary.
    The OIR may retain at the insurer's expense attorneys, actuaries, accountants, and
     other experts reasonably necessary to assist in conducting exams of the insurer.
    The insurer must pay the expense of examination per §624.320, F.S.
    The OIR may examine the affiliates of the insurer to obtain reasonably necessary
     information; however, such examination of an affiliate may not extend to the passive
     investors of affiliates in the holding company system which do not provide services
     to the insurer or have relationships with the insurer.

Effective date: July 1, 2021
Chapter No. 2021-77, LOF

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FAIA’s 2021 Legislative Summary                                                                    Property Insurance
                                                                                                      CS/CS/SB 630

Community Associations
CS/CS/SB 630

p. 5, §627.714(4), F.S.

Provides that if a condominium association’s insurance policy does not provide rights of
subrogation against the unit owners in the association, then the insurance policy issued
to an individual unit owner in the association may not provide rights of subrogation
against the condominium association.

The bill makes numerous changes to the laws governing community associations, and it
includes one significant change relating to property insurance policies for condominium
associations and unit owners, as noted above. This language was a priority of FAIA to
ensure that an even playing field exists for all parties. This change brings the law back
to the way it was prior to 2010.

Effective date: July 1, 2021
Chapter No. 2021-99, LOF

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FAIA’s 2021 Legislative Summary                                                                         Agent Issues
                                                                                                   CS/CS/CS/HB 1209

Department of Financial Services
CS/CS/CS/HB 1209

Continuing Education Requirements

pp. 24–27, §626.2815, F.S.

Changes the mandatory continuing education (CE) update course for all insurance
agents, customer representatives, and insurance adjusters from a five-hour course
every two years to a four-hour course every two years.

This language does not change the total number of CE hours that insurance agents,
customer representatives, and adjusters must obtain every two years during their
compliance period.

This provision is effective for compliance periods that end January 1, 2022, or later, and
for any agent/customer representative with such a compliance period who has already
taken the five-hour course, credit will be given for the four-hour course plus one hour of
elective credit.

Passing legislation to implement this change was a priority of FAIA.

DFS Regulatory Authority Over Appointing Entities

pp. 27–28, §626.371, F.S.

Requires the Department of Financial Services (DFS) to notify an insurer or employer of
its inadvertent error to properly appoint a licensed agent, adjuster, or customer
representative and to require payment of all fees and fines due within 21 days. The bill
also requires DFS to suspend the insurer’s or employer’s authority to appoint licensees
until all such fees have been paid.

FAIA requested that the DFS look at its authority to enforce the appointment statutes,
specifically §626.733, F.S. which requires that all agents associated with an agency
who solicit, negotiate, or effect insurance contracts for a property and casualty insurer
under contract with the agency must be individually appointed by each such insurer.
The changes in this bill were proposed by the DFS as a result of its examination of the
statutes.

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FAIA’s 2021 Legislative Summary                                                                         Agent Issues
                                                                                                   CS/CS/CS/HB 1209

Qualifications for Customer Representative License

pp. 28–29, §626.7351, F.S.

Adds the designation of “Insurance Customer Service Representative (ICSR) from
Statewide Insurance Associates, LLC” to the list of designations that will qualify a
person for licensure as a customer representative.

Eligibility for Export to Surplus Lines

pp. 31–33, §626.916(1), F.S.

Removes the provision in the export statute that currently requires retail agents to
advise insureds by written notice, prior to exporting personal residential property
coverage to the surplus lines market, that they may obtain less expensive coverage
from Citizens Property Insurance Corporation (Citizens).

Deleting this language from the statute was an FAIA priority because agents believed
that this required disclosure was unnecessary, burdensome, and promoted the
repopulation of Citizens.

pp. 33–34, §626.916(3), F.S.

Creates an exemption from the surplus lines diligent effort export requirements for
insurance that is related to the indemnity of deductibles for property insurance policies,
and treats this type of insurance, for purposes of export requirements, similarly to
commercial lines policies for which only a signed disclosure form is required for export.

This language was proposed by an insurer that has recently begun to offer this type of
policy in the surplus lines market, and to FAIA’s knowledge, there are no other insurers
that currently offer a similar type of policy.

p. 35, §627.715, F.S.

Reinstates an exemption previously in the law that allowed agents to export personal
lines flood insurance policies or endorsements to surplus lines insurers without making
a diligent effort to seek coverage from three or more authorized insurers. The bill does
not include an expiration date for the exemption.

The previous exemption in the law expired on July 1, 2019. This bill does not include an
expiration date for the exemption. This language was priority of FAIA.

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FAIA’s 2021 Legislative Summary                                                                         Agent Issues
                                                                                                   CS/CS/CS/HB 1209

Solicitation of Replacement Cost Estimators and Other Proprietary Information

pp. 34–35, §626.9551, F.S.

Prohibits a person (or entity) from requiring an insurance agent or agency to provide the
replacement cost estimator (RCE) or other proprietary underwriting information of an
insurer as a condition precedent to or subsequent to lending money or extension of
credit secured by real property. The bill also prohibits an insurance agent or agency
from providing such information.

This language was a priority of FAIA to help eliminate unreasonable demands made by
lenders for agents to provide them with proprietary RCEs. And for those lenders that are
not governed by this new statutory language (such as federally chartered banks), the
language also makes it clear that agents are not permitted to release or provide such
information to lenders.

Effective date: July 1, 2021, except as otherwise expressly provided
Chapter No. 2021-113, LOF

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                            CS/CS/SB 54

PIP Repeal/Motor Vehicle Insurance
CS/CS/SB 54

Motor Vehicle Financial Responsibility Requirements

Repeals the Florida Motor Vehicle No-Fault Law (No-Fault Law), which requires every
owner and registrant of a motor vehicle in this state to maintain Personal Injury
Protection (PIP) coverage. The bill enacts financial responsibility requirements for
liability for motor vehicle ownership or operation, as follows:
     For bodily injury (BI) or death of one person in any one crash, $25,000, and
     Subject to that limit for one person, $50,000 for BI or death of two or more people
         in any one crash.

Retains the existing $10,000 financial responsibility requirement for property damage
(PD).

**The bill includes many conforming changes due to the replacement of Personal Injury
Protection (PIP) with Bodily Injury (BI), spanning across many statutes throughout the
entirety of the bill.

Florida and New Hampshire are the only two states that do not require BI coverage. The
most common minimum mandatory limit of BI coverage—mandated by 34 states—is
$25,000 in coverage for injuries to any one person and $50,000 in coverage to the
injuries to multiple persons. Of the 48 states that require BI coverage, the lowest
mandatory limit is $15,000/$30,000 and the highest required limit is $50,000/$100,000.

Garage Liability

pp. 16–19, §320.27, F.S.

Increases required coverage amounts for combined single-limit liability coverage,
including property damage and bodily injury coverage, in the amount of at least
$60,000.

Current law only requires at least $25,000 in such coverages and requires $10,000 of
PIP coverage.

Commercial Motor Vehicle Insurance

pp. 103–104, §627.7415, F.S.

Requires coverage of no less than $60,000 for a commercial motor vehicle that weighs
26,000 pounds or more but less than 35,000 pounds beginning January 1, 2022.

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                            CS/CS/SB 54

Current law requires $50,000 of coverage.

Requires coverage of no less than $120,000 per occurrence for a commercial motor
vehicle that weighs 35,000 pounds or more but less than 44,000 pounds beginning
January 1, 2022.

Current law requires $100,000 of coverage.

Retains current law that a commercial motor vehicle weighing 44,000 pounds or more
must have coverage of no less than $300,000 per occurrence.

Increases the cash deposit amount required for a certificate of self-insurance
establishing financial responsibility for owners and operators of motor vehicles that are
not for-hire vehicles.

Actions Against Motor Vehicle Insurers for Bad Faith Failure to Settle Third-Party
Claims

pp. 60–73, §§624.155 and 624.156, F.S.

Creates a new framework governing all actions against motor vehicle insurers for bad
faith failure to settle a third-party claim. The bill requires motor vehicle insurers to follow
claims handling best practices standards based on long-established good faith duties
related to claim handling, claim investigation, defense of the insured, and settlement
negotiations. The bill also specifies an insured’s duty to cooperate with their insurer in
attempting to settle third-party claims, and specifies conditions in which an insurer may
terminate its defense because of the insured’s failure to cooperate. The bill prohibits the
trier of fact in a bad faith action from attributing the insurer’s failure to settle a covered
claim to the claimant’s lack of communication when the claimant makes certain
communications to the insurer.

Defines “bad faith failure to settle” as an insurer’s violation of a best practice, which is a
proximate cause of the insurer not settling a third-party claim when, under all the
circumstances, the insurer could and should have done so, had it acted fairly and
honestly toward its insured and with due regard for the insured’s interests. The party
bringing the bad faith action has the burden to prove both elements.

Creates “safe harbors” to provide insurers a reasonable opportunity to investigate and
evaluate a claim. The safe harbors specify that an insurer that follows the best practices
does not act in bad faith when the insurer:
 Does not initiate settlement negotiations by tendering applicable policy limits in
   exchange for a general release of the insured within 45 days after receiving actual
   notice of the loss.
 Does not accept a settlement offer within 45 days after receiving actual notice of the
   loss if:

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                            CS/CS/SB 54

          o The settlement offer provides the insurer fewer than 15 days for acceptance;
               or,
          o The settlement offer provides the insurer fewer than 30 days for acceptance
               where the offer contains conditions for acceptance other than the insurer’s
               disclosure of its policy limits.

Requires that an insurer must initiate settlement negotiations after the expiration of the
foregoing safe harbor periods by tendering its policy limits to the claimant in exchange
for a general release of the insured if the facts available to the insurer indicate the
insured’s liability is likely to exceed the policy limits.

Specifies that the damages in a bad faith action are the amount of the excess judgment
and court costs. If the party bringing the bad faith action is the insured or an assignee of
the insured, the damages also include reasonable attorney fees incurred by the party
bringing the action. Punitive damages may not be awarded.

Provides that this new section of law regarding actions against motor vehicle insurers
for bad faith failure to settle third-party claims (§624.156, F.S.) is not intended to expand
or diminish any cause of action currently available against insurance agents who sell
motor vehicle liability insurance policies in Florida.

Due to a Senate floor amendment, independent agents were included as it relates to
bad faith. FAIA worked with the House bill sponsor and was successful in amending
language, which clarifies that the best practices portion of the bad faith provisions are
not intended to increase or diminish liability on agents as it relates to notifying an insurer
of a claim.

Mandatory Offer of Medical Payments Coverage

pp. 86–89, §627.7265, F.S.

Requires insurers to offer medical payments coverage (MedPay), which protects the
named insured, resident relatives, vehicle operators, vehicle passengers, and
pedestrians struck by a motor vehicle to a limit of at least $5,000 for medical expenses
incurred due to bodily injury, sickness, or disease arising out of the ownership,
maintenance, or use of a motor vehicle. Coverage must be offered at limits of both
$5,000 and $10,000. Insurers may also offer other policy limits that exceed $5,000.
Insurers must offer a zero-deductible option for MedPay, and may also offer deductibles
of up to $500. MedPay must provide an additional death benefit of at least $5,000.
MedPay coverage to a limit of $10,000 with no deductible is presumed to be contained
in the policy unless a named insured signs a form declining the coverage or selects a
different coverage limit or a deductible. Insurers must reserve $5,000 of MedPay
benefits for 30 days to pay physicians or dentists who provide emergency services and
care or hospital inpatient care. The repeal of the No-Fault Law eliminates the limitations
on recovering pain and suffering damages from PIP insureds, which currently requires

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                            CS/CS/SB 54

bodily injury that causes death or significant and permanent injury. Because this
limitation is repealed, the bill also specifies that legal liability of an uninsured motorist
insurer includes damages in tort for pain, suffering, disability or physical impairment,
disfigurement, mental anguish, inconvenience, and the loss of past and future capacity
for the enjoyment of life.

Mandatory Death Benefit

pp. 94–95, §627.72761, F.S.

Requires that each motor vehicle insurance policy issued to meet the financial
responsibility requirements established by the bill must also provide a first-party death
benefit of $5,000 per deceased individual. As with MedPay, the death benefit covers the
named insured, resident relatives, vehicle operators, vehicle passengers, and
pedestrians struck by a motor vehicle. The benefit is payable when the death arises out
of the ownership, maintenance, or use of a motor vehicle.

Notice to Policyholders

pp. 95–100, §627.7278, F.S.

Requires motor vehicle insurers to notify policyholders by September 1, 2021, of the
new financial responsibility requirements and to allow policyholders to change their
existing coverage to meet the new financial responsibility requirements.

Specifies that any policy issued before January 1, 2022, in compliance with the Florida
Motor Vehicle No-Fault Law, is deemed to comply with the financial responsibility
requirements established by the bill until the end of the policy term.

Named Driver Exclusion

pp. 104–127, §627.747, F.S.

Authorizes a private passenger motor vehicle policy to exclude an identified individual
from coverages. Currently, the OIR requires insurers to provide exceptions to named
driver exclusions up to statutorily required minimum limits for PIP coverage, property
damage liability coverage, BI liability coverage (if the policy is used to meet financial
responsibility requirements), and UM coverage in certain circumstances.

May exclude an identified individual from certain coverages (property damage liability
coverage; bodily injury liability coverage; uninsured motorist coverage for any damages
sustained by the identified excluded individual) for a private passenger motor vehicle
policy if the policyholder has purchased such coverage; or any coverage the

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                            CS/CS/SB 54

policyholder is not required by law to purchase if an identified individual is specifically
excluded by name on the policy declarations page or by endorsement, and a
policyholder consents to such exclusion in writing.

However, a private passenger motor vehicle policy may not exclude coverage when:
 The identified excluded individual is injured while not operating a motor vehicle;
 The exclusion is unfairly discriminatory under the Florida Insurance Code as
  determined by the Office of Insurance Regulation; or,
 The exclusion is inconsistent with the underwriting rules filed by the insurer.
An individual excluded by name in an insurance policy would not be covered for
damages that occur while operating a motor vehicle that is insured under the policy
unless the excluded driver has purchased a separate policy that provides motor vehicle
insurance coverage.

A separate bill, SB 420, on named driver exclusions passed this session and will be
sent to the governor. The language contained within the two bills is substantially the
same.

Setoff on Noneconomic Damages

pp. 122–123, §768.852, F.S.

Provides the defendant a $10,000 setoff on noneconomic damages for injuries suffered
by a person who operated a motor vehicle that lacked the minimum required motor
vehicle insurance under the Financial Responsibility Law while such operator was not in
compliance with financial responsibility requirements for more than 30 days immediately
preceding the crash. The setoff on noneconomic damages does not apply if the person
who is liable for the injury was driving under the influence; acted intentionally,
recklessly, or with gross negligence; fled from the scene of the crash; or was acting in
furtherance of, or immediate flight from, a felony. The setoff on noneconomic damages
does not apply to wrongful death claims.

Effective date: January 1, 2022
Vetoed: June 29, 2021

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                               CS/SB 420

Motor Vehicle Coverage Exclusions
CS/SB 420

Named-Driver Exclusion

pp. 1–9, §§627.747, 324.151, 627.736, 627.7407, F.S.

Authorizes private passenger motor vehicle policyholders to exclude identified
individuals from the following coverages under their policy:
 Personal injury protection (PIP) coverage applicable to the identified individual’s
    injuries, lost wages, and death benefits;
 Property damage liability coverage;
 Bodily injury liability coverage when required by law;
 Uninsured motorist coverage for any damages sustained by the excluded individual;
    and,
 Any coverage the policyholder is not required by law to purchase.

However, a private passenger motor vehicle policy may not exclude coverage when:
 The identified excluded individual is injured while not operating a motor vehicle;
 The exclusion is unfairly discriminatory under the Florida Insurance Code; or,
 The exclusion is inconsistent with the underwriting rules filed by the insurer.

The exclusion of an identified named driver is invalid unless the named policyholder
consents in writing to the exclusion of a named driver and the excluded named drivers
are listed on the policy’s declarations page or policy endorsement.

An individual excluded by name in an insurance policy would not be covered for
damages that occur while operating a motor vehicle that is insured under the policy. An
excluded driver, however, must separately comply with financial responsibility laws.

Current law requires insurance coverage that provides personal injury protection, or that
is used to meet mandatory financial responsibility requirements, be issued to all driving
age individuals residing in the same household.

Florida’s motor vehicle insurance laws do not currently authorize an insurer to exclude
mandatory coverages of a named individual, up to minimum limits required under the
laws. Thus, the Office of Insurance Regulation (OIR) requires that an insurer provide
coverages satisfying minimum financial responsibilities requirements under Florida law,
even when a named driver exclusion is elected.

Similar language is also contained in the Motor Vehicle Insurance bill (SB 54) that
passed the Legislature this session.

Effective date: July 1, 2021
Chapter No. 2021-96, LOF

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                                                                                                           CS/CS/SB 566

Motor Vehicle Rentals
CS/CS/SB 566

Peer-to-Peer Car Sharing, Insurance Requirements

pp. 9–21, §627.7483, F.S.

Requires the peer-to-peer car-sharing program to ensure the shared vehicle owner and
shared vehicle driver are insured during each car-sharing period under a motor vehicle
insurance policy that provides minimum statutory requirements for:
    Property Damage Liability coverage in the amount of at least $10,000 as
       required under §324.022, F.S.;
    Bodily Injury Liability coverage in the amount of at least $10,000 for bodily
       injury to, or death of, one person in any one crash or in the amount of at least
       $20,000 for bodily injury to, or death of, two or more persons in any one crash as
       specified in §324.201(7)(a), F.S.;
    Personal Injury Protection benefits in the amount of at least $10,000 for
       medical and disability benefits in the amount of at least $5,000 for death benefits
       required under §627.736, F.S.; and,
    Uninsured and Underinsured Vehicle Insurance coverage in the amount
       equal to bodily injury limits as required under §627.727, F.S.

Specifies that the peer-to-peer car-sharing program may satisfy compliance with
minimum statutory insurance coverages by a motor vehicle insurance policy maintained
by the shared vehicle owner, shared vehicle driver, the peer-to-peer car-sharing
program, or a combination of all three.

Specifies that the motor vehicle insurance policy used by the peer-to-peer car-sharing
program to satisfy minimum statutory insurance coverages is primary in the event of a
claim. The insurer or peer-to-peer car-sharing program providing the required coverage
assumes primary liability for a claim when a dispute exists over who was in control of
the shared vehicle at the time of the loss, or a dispute exists over whether the shared
vehicle was returned to the agreed-upon location specified in the peer-to-peer car-
sharing programs agreement. The peer-to-peer car-sharing program assumes liability in
the event of a coverage lapse by the shared vehicle owner or shared vehicle driver.

Provides that a peer-to-peer car-sharing program may maintain one or more motor
vehicle insurance policies, which provide coverage for liabilities assumed by the peer-
to-peer car-sharing program under a peer-to-peer car-sharing program agreement;
liability of the shared vehicle owner; liability of the shared vehicle driver, damage, or
loss to the shared motor vehicle; or damage, loss, or injury to persons or property to
satisfy minimum statutory requirements for personal injury protection and uninsured and
underinsured insurance coverage.

Specifies that the peer-to-peer car-sharing program assumes liability during the car-
sharing period of a shared vehicle owner for bodily injury or property damage to a third

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FAIA’s 2021 Legislative Summary                                                                    Motor Vehicle Insurance
                                                                                                           CS/CS/SB 566

party or uninsured and underinsured motor or personal injury losses. The peer-to-peer
car-sharing program does not assume liability when a shared vehicle owner makes an
intentional or fraudulent material representation or omission before the car-sharing
period in which the loss occurs, or the shared vehicle owner acts in concert with shared
vehicle driver who fails to return the shared vehicle in accordance with the peer-to-peer
car-sharing program agreement.

Provides that the peer-to-peer car-sharing program and the shared vehicle owner are
exempt from vicarious liability consistent with federal law.

Provides that an authorized motor vehicle insurer may exclude any coverage and the
duty to defend or indemnify any claim under a shared vehicle owner’s motor vehicle
insurance policy.

Effective date: January 1, 2022
Chapter No. 2021-175, LOF

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FAIA’s 2021 Legislative Summary                                                                    Miscellaneous Insurance
                                                                                                           CS/CS/SB 1598

Consumer Protection
CS/CS/SB 1598

Public Adjusters

pp. 5–7, §626.112, F.S.

Specifies that entities must comply with §626.8696, F.S., with respect to possessing an
adjusting firm license for each place of business at which it performs activity for which it
is necessary to be licensed as a claims adjuster. However, the bill provides an
exception for adjusting firm’s branch place of business if the branch:
 Transacts business under the same name and federal tax identification number as
    the licensed adjusting firm;
 Designates with the Department of Financial Services (DFS) a primary adjuster
    operating the location as required by §626.8965, F.S.; and
 Submits the address and telephone number of the branch location to the DFS within
    30 days after insurance transactions begin at the branch location.

Authorizes administrative penalties for noncompliance with adjusting firm licensure
requirements.

pp. 8–11, §626.854, F.S.

Prohibits a licensed contractor or subcontractor from advertising, soliciting, offering to
handle, handling, or performing public adjuster services unless licensed and compliant
as a public adjuster.

Increases the cooling-off period from three days (or five days during a state of
emergency) to 10 days during which a consumer may cancel his or her contract with a
public adjuster.

Requires each public adjuster to provide an estimate of the loss to the claimant or
insured within 60 days after the execution of the public adjuster contract and specifies
that the written estimate of loss of the public adjuster must include an itemized, per-unit
estimate of the repairs.

Prohibits a person other than a licensed public adjuster or attorney from advertising
services that require a license as a public adjuster or offering to initiate or negotiate a
claim on behalf of an insured.

Prohibits a public adjuster, public adjuster apprentice, or public adjusting firm that
solicits a claim and does not enter into a contract with an insured or third-party claimant
from charging or receiving payment from an insured or a third-party claimant.

p. 5, §624.501, F.S.

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                                                                                                           CS/CS/SB 1598

Eliminates the initial $60 licensure fee and renewal fees for an adjusting firm license.

This bill, proposed by Chief Financial Officer (CFO) Patronis, amends several
insurance-related provisions to provide greater protections for consumers and oversight
of public adjusters and residential property insurers.

Residential Property Insurers, Duty to Acknowledge Claims

pp. 17–20, §627.70131, F.S.

Requires a residential property insurer to initiate a claim investigation within 14 days of
receiving a proof of loss statement.

Current law provides 10 business days.

Directs 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 to 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.

Applies the property insurance claim investigation and communication requirements of
§627.70131, F.S., to surplus lines insurers.

All changes to §627.70131, F.S., take effect January 1, 2022.

pp. 20–24, §627.7142, F.S.

Directs 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.

Prohibited Acts for Agents, Agencies, and Other Licensees

p. 7, §626.602, F.S.

Requires insurance agencies whose name contains the word “Medicare” or Medicaid”
to delete those words from the agency name no later than June 30, 2023.

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                                                                                                           CS/CS/SB 1598

pp. 7–8, §626.621, F.S.

Authorizes the 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, without the request of a prospective customer, in-person or
telephone solicitation after 9:00 p.m. or before 8:00 a.m. local time of the prospective
customer.

pp. 12–14, §626.9541(1)(z), F.S.

Expands the definition of sliding, a practice that violates the Unfair Insurance Trade
Practices Act, to include:
 Initiating, effectuating, binding, or otherwise issuing an insurance policy without the
   prior informed consent of the person who owns the property that will be insured.
 Submitting an invoice for premium payment to a mortgagee or escrow agent in order
   to institute an insurance policy without the prior informed consent of the owner of the
   property, with exceptions.

Exporting Policies to Surplus Lines Market

pp. 11–12, §626.916, F.S.

Requires that, effective January 1, 2022, prior to the export of any type of policy to a
surplus lines insurer, the agent must obtain a signed surplus lines disclosure form from
the insured. The bill revises the language that must be included in the disclosure form
and, effective January 1, 2022, the disclosure form must state: “You are agreeing to
place coverage in the surplus lines market. Coverage may be available in the admitted
market. Persons insured by surplus lines carriers are not protected under the Florida
Insurance Guaranty Act with respect to any right of recovery for the obligation of an
insolvent unlicensed insurer.”

This language was a priority of FAIA in order to delete problematic language in the
disclosure form that currently says “superior coverage may be available in the admitted
market and at a lesser cost.” In agreeing to FAIA’s proposed revisions of the disclosure
form language, the CFO and the DFS asked that the agent agree to obtain a signed
disclosure form for every policy that is exported to the surplus lines market, not just
those commercial lines policies that are exempt from the Office of Insurance
Regulation’s (OIR) file and use rate approval process. FAIA agreed to this change
because FAIA has long recommended that agents should already be obtaining a signed
disclosure form for every type of policy that is exported in order to appropriately advise
and best protect the interests of their insureds.

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                                                                                                           CS/CS/SB 1598

Guaranty Associations

pp. 24–27, §§631.57, 631.904, F.S.

Eliminates the $100 deductible an insured must pay to the Florida Insurance Guaranty
Association in order to receive payment on their claim through the association.

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.

Industrial Life Insurance Policies

p. 8, §§626.782, 626.783, 626.796, F.S.

Prohibits the sale of industrial life insurance policies, effective July 1, 2021.

Industrial life insurance is a form of life insurance in which the premiums are payable on
a monthly or weekly basis. These policies usually have a face amount of less than
$5,000. Only 38 of the 398 active life insurers maintain existing industrial life insurance
policies, and no new industrial life insurance policies have been written in the last year.

Miscellaneous Provisions

pp. 4–5, §624.307(10)(b), F.S.

Requires an entity regulated by the DFS or the OIR to respond to document requests
from the Division of Consumer Services of DFS, and authorizes theDFS to impose
penalties for noncompliance.

pp. 14–15, §626.9741, F.S.

Requires insurers to include information regarding the free financial literacy programs
offered by the DFS at the time the insurer informs an applicant or insured that a credit
report or score is being requested for underwriting or rating purposes.

This requirement takes effect January 1, 2022.

Effective date: Upon becoming law except where otherwise provided.
Chapter No. 2021-104, LOF

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FAIA’s 2021 Legislative Summary                                                                    Miscellaneous
                                                                                                   Bill CS/SB 72

Civil Liability for Damages Relating to COVID-19
CS/SB 72

Liability Protections for Individuals and Businesses Other than Health Care
Providers

pp. 5–8, §768.38, F.S.

Creates civil liability protections for individuals, businesses, governmental entities, and
other organizations (but not health care providers) against COVID-19-related claims.

Establishes preliminary requirements that a plaintiff must complete before a COVID-19
liability-related case is allowed to proceed. A court must determine whether:

    The complaint has been plead with particularity.
    A physician’s affidavit has been simultaneously submitted stating that, within a
     reasonable degree of medical certainty, the physician believes that the defendant
     caused, through acts or omissions, the plaintiff’s damages, injury, or death. If the
     plaintiff has not met these requirements, the court must dismiss the action, but the
     plaintiff is not barred from correcting the deficiencies and refiling the claim.
    The defendant made a good faith effort to substantially comply with authoritative or
     controlling health standards at the time the cause of action accrued. If the court
     determines that the defendant made the requisite good faith effort, the defendant is
     immune from civil liability. If, in contrast, the court determines that the defendant did
     not make the requisite good faith effort, the action may proceed.

If a plaintiff meets these preliminary requirements, then he or she bears the burden of
proving that the defendant did not make the good faith effort. Additionally, the plaintiff
must meet the heightened standard of proving that the defendant’s acts or omissions
were grossly negligent by the clear and convincing evidence standard.

This bill was a priority of FAIA in order to protect FAIA’s members and their clients from
frivolous COVID-19 related lawsuits. In fact, the “Legislative Intent” as stated in the bill
provides that “the Legislature finds that it is an overpowering public necessity to enact
legislation that will deter unfounded lawsuits against individuals, businesses, health care
providers, and other entities based on COVID-19-related claims, while allowing
meritorious claims to proceed.”

Liability Protections for Health Care Providers

pp. 9–13, §768.381, F.S

Provides lesser liability protections to health care providers as specifically defined in
the bill and provides procedures for civil actions against them.

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FAIA’s 2021 Legislative Summary                                                                    Miscellaneous
                                                                                                   Bill CS/SB 72

Provides that the liability protections for COVID-19-related claims against a health care
provider mainly relate to:

    Claims arising from the diagnosis or treatment of a person for COVID-19;
    The provision of a novel or experimental COVID-19 treatment;
    The transmission of COVID-19; and,
    The delay or cancellation of a surgery or medical procedure.

To prevail in a claim against a health care provider, the plaintiff must plead the claim
with particularity and generally must prove by the greater weight of the evidence that the
heath care provider was grossly negligent or engaged in intentional misconduct.

General Provisions

pp. 8 and 13, §§768.38(4) and 768.381(5)-(6)

Provides that a COVID-19-related lawsuit against any defendant must be brought
within one (1) year after a cause of action accrues unless the cause of action occurred
before the effective date of the bill. However, if a cause accrues before the effective
date of the bill, the plaintiff has one year from the effective date of the act to bring the
claim.

p. 13

Provides that the new law applies retroactively. However, it does not apply in a civil
action against a particular named defendant which is commenced before the effective
date of the bill (March 29, 2021).

Effective date: March 29, 2021
Chapter No. 2021-1, LOF

Page numbers refer to pages in the enrolled bill. Section (§) numbers refer to Florida Statutes.              25
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