The bill affects both admitted insurers and surplus lines insurers. The bill would take effect July 1, 2021, pending approval by the governor.
Hours before the close of Florida’s 2021 annual legislative session, the Florida Legislature passed SB 76, legislating wide changes to the handling and litigation of property insurance claims. The bill affects both admitted insurers and surplus lines insurers. The bill would take effect July 1, 2021, pending approval by the governor.
SB 76 creates Florida Statute § 489.147 prohibiting certain types of solicitations and the offering of something of value in exchange for a roof inspection or making a roof claim. Specifically, the new statute prohibits a contractor from using prohibited written or electronic advertisement that “encourages, instructs, or induces a consumer” to contact that contractor or public adjuster for purpose of making a claim for roof damage. A prohibited advertisement includes items such as door hangers, business cards, magnets, flyers, pamphlets, and emails. The new statute applies to both compensated employees of the contractor and to nonemployees “compensated for soliciting,” the actions of whom are considered to be actions of the contractor. Additionally, unless the contractor is also a licensed public adjuster, the contractor cannot interpret an insurance policy or advise insureds of duties under an insurance policy.
When entering into a repair agreement with an insured, the contractor must also provide a “good faith estimate of the itemized and detailed cost of the services and materials” contemplated by the repair contract. Further, the contract must contain a notice that the contractor cannot engage in the solicitation restrictions imposed by the statute. If the contract does not contain such a notice, the insured may void the contract within 10 days after executing it.
Florida Statute § 489.147 also prohibits certain types of financial incentives in relation to roof claims. A contractor cannot provide anything of value, such as a rebate, gift card, coupon, or deductible waiver, to a residential property owner in exchange for permitting a contractor to inspect the roof or for making an insurance claim for damage to the owner’s roof. Finally, the new statute prohibits referral fees or rewards for the referral of any services payable by property insurance proceeds.
The bill creates a new subsection, subsection 20, of Florida Statute § 626.854 applying to public insurance adjusters. A public insurance adjuster cannot provide anything of value, such as a rebate, gift card, coupon, or deductible waiver, to a residential property owner in exchange for permitting a public adjuster or a public adjuster apprentice to inspect the roof or for making an insurance claim for damage to the owner’s roof. The new statute similarly prohibits the public adjuster from receiving referral fees or rewards for the referral of any roof repair/replacement services payable by property insurance proceeds.
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GST taxpayers can't claim any pending input tax credit if this return is not filed by November 30, 2024 for FY 2023-24
