Important Legislative Update: Florida Senate Bill 2A (Passed December 2022)
At a Special Session of the Florida Legislature commencing on December 12, 2022, comprehensive changes to property insurance were enacted, including the passage of Senate Bill 2A. Despite the timing during the holiday season, these changes bear significant implications for property insurance claims, reinsurance, and insurance company regulations. This summary, based on information provided by the Florida Legislature, outlines key facets of Senate Bill 2A. For an in-depth review of the bill, please visit Florida Senate Bill 2A.
Florida Optional Reinsurance Assistance Program
Establishes the Florida Optional Reinsurance Assistance (FORA) Program for the 2023 hurricane season.
Offers insurance companies optional hurricane reinsurance at reasonable/near market rates.
Aims to curb premium increases by providing lower reinsurance rates through the program.
Claim Filing Deadline
Reduces the deadline for policyholders to report new or reopened claims from 2 years to 1 year and supplemental claims from 3 years to 18 months.
Addresses concerns of potential fraudulent claims filed closer to the deadline.
Prompt Pay Laws for Property Insurance
Amends prompt pay laws to expedite claims processing:
Reduces the time for companies to pay or deny a claim from 90 to 60 days.
Allows the Florida Office of Insurance Regulation (OIR) to extend the period by 30 days under specific circumstances.
Shortens time for reviewing and acknowledging a claim communication, initiating an investigation, and conducting a physical inspection.
Permits electronic methods for damage assessment, ensuring policyholder participation.
Mandates timely provision of adjuster’s damage estimate to the policyholder.
Awards of Attorney Fees in Property Insurance Lawsuits
Repeals one-way attorney fee provisions related to property insurance claims.
Neither party can be awarded attorney fees in property insurance claims lawsuits, with each party responsible for their fees.
Assignments of Benefits
Prohibits assignment, in whole or in part, of post-loss insurance benefits under residential or commercial property insurance policies issued on or after January 1, 2023.
Regulation of Insurance in Florida by the OIR
Enhances OIR’s ability to conduct market conduct exams of property insurance companies post-hurricane.
Appropriates funds for OIR staff salaries, recruitment, and retention efforts.
Empowers OIR to discipline companies for appraisal process abuse and extend coverage periods for insolvent companies.
Bad Faith Failure to Settle Actions
Requires a court finding of breach of contract before suing a property insurance company for bad faith.
Acceptance of an offer of judgment or an appraisal award alone is insufficient for a lawsuit.
Citizens Property Insurance Corporation (Citizens)
Policyholders ineligible for Citizens if receiving offers within 20% of their Citizens premium.
Requires flood insurance for Citizens residential policyholders.
Sets rate limitations for non-primary residences policies.
Flood Notice
Requires inclusion of a flood notice on insurance policy declarations pages, encouraging policyholders to purchase flood insurance.
Arbitration
Specifies conditions for insurance companies issuing optional endorsements related to mandatory arbitration.
Premium discounts are mandated for policies with mandatory arbitration.
Disclaimer: This information is provided for informational purposes only. For accurate and specific details, it is recommended to refer to the official source at mycfoflorida.com or contact Experienced Public Adjusters directly.