House Bill 1185 – Consumer Protection
Effective Date: July 1, 2023
Bill Text: House Bill 1185
House Bill 1185 brings about the following changes in consumer protection:
Distributed Energy System (DEGS) Disclosures (Solar Panels)
Companies selling or leasing distributed energy systems (DEGS) are now required to provide specific disclosures to consumers. These disclosures include:
1. Consideration of the age and remaining life of the roof before installing a distributed energy generation system. In some cases, roof replacement may necessitate the reinstallation of the distributed energy generation system.
2. Awareness that installing a distributed energy generation system on the roof may have an impact on future insurance premiums. It is the consumer’s responsibility to contact their insurance carrier prior to entering into any purchase or lease agreement to ensure whether the current policy or coverage needs to be modified after the installation of the distributed energy generation system.
Public Adjusters
As of July 1, 2023, public adjusters are subject to the following restrictions:
1. They may not collect fees for services on payments made to a named insured unless they have a written contract with the named insured or the named insured’s legal representative.
2. Contracting for services provided by a third party or for the pursuit of settlement of the insured’s claim, where the insured pays for those services, is not permissible unless the insured agrees to pay for such services in writing, subsequent to the signing of the public adjusting services contract.
3. If a public adjuster represents anyone other than the named insured in a claim, the fees must be paid by the third party and cannot be charged to the named insured.
In cases where a public adjuster’s contract is based on events that are the subject of a declaration of a state of emergency by the Governor, an insured or claimant may cancel the public adjuster’s contract without penalty or obligation within 30 days after the date of loss or 10 days after the date on which the contract is executed, depending on which duration is longer.
Public adjuster contracts must include the following disclosures:
– The insured or claimant has the right to cancel the contract within 30 days of the date of loss or 10 days after the date on which the contract was executed, if the contract was entered into based on events that were the subject of a declaration of emergency by the Governor.
– The claimant or insured has the right to cancel the contract if the public adjuster fails to provide a written estimate within 60 days, unless the failure to provide the estimate was due to factors beyond the public adjuster’s control.
Moreover, the contract must define the different types of adjusters involved in the claim-adjusting process (company adjuster, independent adjuster, and public adjuster), clarify that the public adjuster is not a representative or employee of the insurance company, and inform the insured of their right to communicate directly with relevant parties regarding the settlement of the claim.
Additionally, it must be explained that the public adjuster’s salary, fee, commission, or other consideration is the insured’s responsibility, and an unaltered copy of the executed contract must be provided at the time of signing. Non-compliant contracts with the disclosure requirements are not enforceable.
Public adjusters are restricted from charging more than 1% of the insurance claim payments or settlements paid by the insurer to the insured for any coverage part of the policy, provided the claim payment or written commitment to pay is equal to or greater than the policy limit for that part of the policy. This restriction applies if the payment or written commitment to pay is provided within 14 days after the date of loss or within 10 days after the date on which the public adjusting contract is executed, whichever is later.
Additional Public Adjuster Regulations:
– It is prohibited for public adjusters to charge the insured for any portion of insurance claim payments or settlements that were received by the insured prior to the execution of the public adjusting contract.
– Public adjusters are obligated to prominently display their license at their place of business or carry it with them when conducting business.
– Public adjusting contracts must include the contact details of the public adjuster, such as a phone number and email address.
– Any section of a public adjusting contract that lacks the insured’s signature must be initialed by the insured.
– Payment for services rendered by a public adjuster is not allowed until an executed contract has been delivered to the insured or claimant. Additionally, the adjuster must retain a copy of the signed contract for a period of five years.
Hurricane Deductible:
– A hurricane deductible becomes applicable from the moment a hurricane warning is issued and remains in effect for 72 hours after the termination of the last hurricane watch or warning declared by the National Hurricane Center of the National Weather Service.
– Insurance companies now have 60 days, instead of 90, to cancel a policy after it has been issued, except in cases involving material misstatement, misrepresentation, or failure to comply with the underwriting requirements set by the insurance company.
– Citizens Property Insurance Corporation has the authority to cancel a policy immediately if it has been in effect for 90 days or less due to material misrepresentation or non-compliance with underwriting requirements, especially if the property was previously insured by an insolvent company.
Please keep in mind that the information presented above is intended for informational purposes only. For specific details and accurate information about the topics discussed, we recommend referencing the official source, www.myfloridacfo.com.