As we head into Week 6 of the session, the Chambers continue their work on priority issues, including Insurer Accountability (claims handling), ESG, Data Privacy, Medical Conscience, Covid vaccines issues, Abortion, Treatment for Gender Dysphoria, Housing, Conservation, Firearms, and PBM Reform. Four weeks remain in session, with the adjournment date of May 5 fast approaching.
LIFE
1. Pre-licensing Education and Value-Added Insurance Products – HB 1111/SB 312
By Rep. Barnaby and Sen. Collins
The Senate bill received three committee references. The Senate bill passed its second committee, the Judiciary Committee, by a vote of 11-0. On the House side, the Speaker’s Officer removed the reference to the Healthcare regulation subcommittee, making the Commerce committee its last stop.
· Provisions regarding the use of genetic testing information by life insurers, long-term care insurers, and disability income insurers. (stricken from bill in both chambers due to objections raised)
The bill, after amendments, now includes the following provisions:
Value-Added Benefits:
· Authorizes insurers and producers to offer & give certain noncash gifts, items, and services and conduct raffles and drawings, consistent with NAIC Model 1.
Reduction in Life Agent prelicensure hours
· The senate bill reduces pre-licensing coursework required hours from 40 hours to 30 hours for Life Agents. This provision is expected to be added to the House bill at the next committee stop.
2. Paid Family Leave Insurance HB 721/SB 670
By Rep. Chaney and Sen. Yarborough
Both bills are awaiting hearings in their last committees of reference, after being heard in their initial committees. These bills are likely to pass.
This bill authorizes life insurers to transact paid family leave insurance. Revises the definition of the term “kinds of insurance” to include paid family leave insurance. Requiring paid family leave insurance policies to specify details and requirements about covered family leave reasons. Sets the “benefit period” for the length of family leave benefits available for each covered family leave reason, which may not be less than 2 weeks during a period of 52 consecutive calendar weeks.
3. Paperless Billing for Health and Dental Policies HB505/SB418
By Rep. Berfield and Sen. Perry
See description below in the Property insurance section.
HEALTH
1. PBM Reform – HB 1509/SB 1550
By Rep. Chaney and Sen. Brodeur
The bill is a priority of Governor DeSantis. The Senate bill was referred to two committees while the House bill was referred to three committees. The House bill passed its first committee, the Healthcare Regulation Subcommittee, and must go through two more committees before being heard on the floor. The Senate version passed its first committee and is now awaiting hearing in its last committee stop, the Fiscal Policy committee. Both bills were amended in committee and are now very close to each other.
This bill would impose a massive new regulation of Pharmacy Benefit Managers (“PBMs”) and require PBMs to do the following:
· Register as Third-Party Administrators for a fee and require extensive audits and penalties for violations;
· Prohibit spread pricing and mandate 100 % pass through of rebates or else give policyholders Point-of Sale rebates at the pharmacy counter;
· Includes Medicaid, State Group, ERISA and Medicare Part D plans in the scope of the bill;
· Regulate MAC appeals;
· Prohibit mandatory mail order;
· Potentially impose an Any Willing Pharmacy network mandate on PBMs;
· Impose fiduciary duty of PBMs to policyholders (similar to New York law);
· Ban directing insureds to pharmacy affiliates of a PBM or health plan (steering) and defines the term “affiliate”;
· White Bagging: Require PBMs to offer to contract with Essential Provider hospitals as defined in the Medicaid code and without required accreditation;
· Lower pharmacy accreditation standards;
· Frozen Formulary: House only, which was then paired back in the amended version to a sixty-day continuity of care provision;
· Prohibit clawbacks for errors or fraud.
While the bills are similar, differences still need to be worked out in the following key areas: frozen formulary, MAC, white bagging, network definitions, and manufacturer price increase reporting, among others.
2. Telehealth Practice Standards – HB 267/SB 298
By Rep. Fabricio and Sen. Boyd
The Senate bill has passed it first two committees and heads next to the Senate Rules committee, its last stop. The House bill has cleared its first committee and is now in the Health Care Appropriations Subcommittee. The bill has failed to pass in two prior sessions.
The bill revises the definition of “telehealth.” Under the bill, the use of audio-only telephone calls is no longer excluded from the definition.
3. Genetic Counselors Utilizing Telehealth – HB 117/SB 218
By Rep. Silvers and Sen. Harrell
LIKELY TO PASS
The House bill is on the calendar and ready for the floor. The House has received the Senate bill and should pass the bill next time the House has floor session.
The bill amends the definition of a telehealth provider in s. 456.47, F.S., to allow licensed genetic counselors to provide health care and related services using telehealth.
4. Pharmacy Benefit Managers HB 203/SB 420
By Rep. Gonzalez Pittman and Sen. Wright
LIKELY DEAD
These bills have not been heard. We will have to keep an eye on this bill, but it is not the priority PBM package for this session, so it’s unlikely to move. The House and Senate bills each received three committee references. However, see the Governor’s PBM package, HB1519/SB1550, which we expect to pass in some fashion.
The bill mandates OIR to examine PBMs. Allows OIR to suspend/revoke and fine a PBM if it violates certain provisions of law. Requires pharmacy benefit managers to have standard contracts with pharmacies, provides requirements for such contracts' terms and conditions, requires pharmacy benefit managers to provide copies of such standard contracts within a specified timeframe to requesting pharmacies and pharmacists.
Prohibits pharmacy benefit managers from engaging in certain acts against patients and covered individuals and provides that such acts are unfair methods of competition or unfair or deceptive acts or practices subject to Ch. 501 of Florida Law.
5. Protection from Discrimination Based on Health Care Choices HB1013/SB252
By Griffits Jr. and Burton
The Senate bill has passed the first of its two committees. The House bill was referred to three committees but has not been heard.
These bills would:
· Repeal a provision relating to prohibiting public employers from imposing COVID-19 vaccination mandates;
· Prohibit business entities and governmental entities from requiring COVID-19 testing to gain access to, entry upon, or service from such entities;
· Prohibit such entities from requiring persons to provide certain documentation or requiring COVID-19 testing as a condition of contracting, hiring, promotion, or continued employment;
· Prohibit business and governmental entities from refusing to hire persons, discharging persons, depriving or attempting to deprive persons of employment opportunities, adversely affecting persons with respect to employment, or otherwise discriminating against any person based on knowledge or belief of a person’s COVID-19 vaccination or post infection recovery status or failure to take a COVID-19 test, among other things.
6. Protections of Medical Conscience HB1403/SB1580
By Rep. Rudman and Sen. Trumbull
These bills are in a position to pass. Both bills have passed the first of their two committee references.
The bill:
· Authorizes health care providers & health care payors to opt out of participation in or payment for certain health care services by conscience-based objections without discrimination or threat of adverse actions;
· Requires health care provider to notify patient and health care provider’s supervisor or employee in writing when such health care provider declines to participate in health care services & retain copy of such notification; and
· Prohibits certain boards and DOH from taking certain disciplinary actions.
7. Protection of Medical Freedom HB 305/SB 222
By Rep. Barnaby and Sen. Gruters
LIKELY DEAD
These bills have not been heard. The House and Senate bills have received three committees of reference. The bill contains insurance underwriting prohibitions based on vaccine status. The House bill is running into timing issues based on the committees it has to go through.
The Department of Health may not include a person's immunization records in any interstate or federal immunization tracking system or otherwise allow an entity not required by law to have such records without first obtaining written informed consent from the person or the person's parent or guardian, if the person is a minor, to release the immunization records for such purpose.
Health Care providers may not make the provision of any health care services contingent upon a patient receiving or having received a particular vaccine or having recovered from infection from a particular disease.
Creates a new section of law that prohibits employment discrimination on the basis of vaccination or immunity status. Adds similar language in other sections of law dealing with unlawful employment practices, sale or rental of housing, and financing of housing. Revises purposes of Florida Civil Rights Act of 1992 to include discrimination protection for vaccination or immunity status.
8. Coverage for Diagnostic and Supplemental Breast Examination HB 575/SB 460
By Rep. Woodson and Sen. Berman
LIKELY DEAD
These bills have not been heard. The House and Senate bills are identical, and both have received three committees of reference.
The bill prohibits the state group insurance program from imposing any enrollee cost-sharing liability with respect to coverage for diagnostic breast examinations and supplemental breast examinations. Prohibits the imposition of cost-sharing requirements for diagnostic and supplemental breast examinations by individual, group, blanket and franchise accident and health insurance policies.
The bill defines "Diagnostic breast examination" as a medically necessary and appropriate examination of the breast, including an examination using diagnostic mammography, breast magnetic resonance imaging, or breast ultrasound, which is used to evaluate an abnormality.
9. Newborn Hearing Screenings – HB 435/SB 394
By Rep. Melo and Sen. Polsky
LIKELY DEAD
Both bills received three committees of reference in their respective chambers. The House bill was temporarily postponed in the Healthcare Regulation subcommittee on April 3 when the committee ran out of time. The Senate bill has not been heard.
The bill mandates a “Congenital Cytomegalovirus Test” as a required newborn screening test.
A congenital cytomegalovirus test is defined as a test approved by the United States Food and Drug Administration or another diagnostically equivalent test to screen newborns for congenital cytomegalovirus.
10. Group Health Plans HB 897/SB 940
By Rep. Fernandez-Barquin and Sen. Calatayud
This bill would codify the definition of “Bona Fide Association” used in HIPAA into the MEWA statute, replacing a reference to an obsolete federal regulation.
As of March 27th, the House Bill is in its last committee, Health & Human Services. The Senate version was referred to three committees. The Senate bill has passed two out of its three committees of reference, and it is now in the Rules Committee.
The bill revises eligibility requirements for a bona fide group to qualify as a multiple-employer welfare arrangement.
11. Health Care Benefit Coverage for Members of Nonprofit Organizations and Agricultural Cooperative Associations HB 1483/ SB 1062
By Rep. Plakon and Sen. Collins
LIKELY DEAD
Both bills have received three committee references. Neither the House nor Senate bills have been heard in committee.
The bill authorizes nonprofit membership organizations and agricultural cooperative associations to offer health care benefit coverage to their members. Authorizes such nonprofit membership organizations and agricultural cooperative associations to cede individual risks to certain insurers by reinsurance agreements and requires such organizations and associations to file by a specified ate each year a specified statement with the Commissioner of Insurance Regulation.
12. Copay Coupon Accumulator HB 1063/SB 46
By Rep. Cross and Sen. Wright
LIKELY DEAD
This bill is similar to the bill Senator Wright filed last year. The bill received three references in each chamber. The House bill has not been heard in committee. The Senate bill passed the Banking and Insurance Committee on April 5. With no movement in the House, and the Senate Health Policy committee likely not meeting again, it would be hard for this bill to find a path to passing.
The bill requires specified individual health insurers and their pharmacy benefit managers to apply payments by or on behalf of insureds toward the total contributions of the insureds’ cost-sharing requirements.
Defines the term “cost-sharing requirement” as a dollar limit, a deductible, a copayment, coinsurance, or any other out-of-pocket expense imposed on an insured, including, but not limited to, the annual limitation on cost sharing subject to 42 U.S.C. s. 18022.
13. Coverage for Skin Cancer Screenings HB 785/SB 142
By Rep. Massullo and Sen. Harrell
LIKELY DEAD
The bill has been filed by two senior republican members which is concerning, but mandates like this rarely pass. Both the House and Senate bills have received three committees of reference. HB785 passed its first committee by 17-0 and is now in its second committee, Appropriations Committee. The Senate bill has not yet been heard.
A health insurance policy issued or renewed on or after January 1, 2024, must provide coverage and payment, without imposing a deductible, copayment, coinsurance, or any other cost-sharing requirement, for annual skin cancer screenings performed by a licensed dermatologist.
14. Employer Coverage of Gender Dysphoria Treatment HB 1265/SB 952
By Rep. Yarkosky and Sen. Ingoglia
LIKELY DEAD
The House and Senate bills have received three committees of reference. The House bill has not progressed out of its 1st committee, the Regulatory Reform & Economic Development subcommittee. The Senate version has not progressed since its initial committee references. This treatment has been on the Governor’s radar.
The bill requires employers to provide coverage of gender dysphoria treatment to also cover the full costs associated with treatment that reverses such gender dysphoria treatment, regardless of the rate of coverage provided for the initial treatment. Provides that employees who receive gender dysphoria treatment through coverage provided by an employer are entitled to full coverage of total costs associated with treatment that reverses such gender dysphoria treatment under certain circumstances, regardless of whether they are still employed by that employer.
The bill also creates a private right of action. If an employer or former employer, as applicable, refuses to cover the total costs associated with treatment to reverse gender dysphoria treatment it initially covered for an employee, the employee may file a civil action in a court of competent jurisdiction to recover from the employer or former employer, as applicable, the actual total costs associated with such treatment as well as any damages incurred by the person as a result of the employer’s noncompliance with this section.
15. Gender Clinical Interventions/Treatment for Sex Re-assignment HB1421/SB254
By Fine/Yarborough
LIKELY TO PASS
The House bill is on the calendar. The Senate bill passed the full chamber on April 4 and is in messages to the House. The bills would codify recent Board of Medicine policy. The bills are not identical. The Senate bill applies to people under 18 years of age whereas the House bill is not limited to minors.
Provides criteria under which such treatments and prescriptions are prohibited. Allows treatment to be a factor in child custody determinations. Creates new private cause of action for persons under 18 in certain circumstances. The House bill prohibits private health plan coverage of this treatment. Both bills ban coverage using public funds and governmental entities, including public colleges, state employees group health plan and Medicaid (once the Senate amendments are adopted on April 3).
DENTAL
1. Dental Payments Under Health Insurance Plans HB 1605/SB 834
By Rep. Gonzalez Pittman and Sen. Harrell
LIKELY DEAD
The Senate bill has received three committee references. The House bill has received three refences and is currently in the Healthcare Regulation Subcommittee. Neither the House nor Senate bills have been heard in committee.
This bill would allow dentists to charge more for non-covered services. The bill set certain guidelines if initiating or changing payment methods to a dentist from a health insurer. Sets a method for denying a claim submitted to a dentist. The new provisions in the bill may not be waived by contract and if they are the contract is void.
2. Practice of Dentistry HB 503/SB 356
By Rep. Berfield and Sen. Boyd
The Senate bill received three committees of reference and passed in its second committee on March 22 by a vote of 10-0. On April 3rd, the House bill has passed its first committee of refence by a vote of 17-0 and is now in the Health Care Appropriations Subcommittee.
Requires individuals and entities that provide dental services through telehealth to provide each patient with specified information regarding the dentists treating such patient and requires that there be a dentist of record for each patient treated through telehealth. Finally, the bill requires individuals and entities that provide dental services through telehealth to make specified information available to each patient before rendering such services and at any time upon patient request. The bill seeks to improve safety for products such as Invisalign or Smile Direct.
3. Dental Services for Veterans HB 635/SB 366
By Rep. Maney and Sen. Burgess
The House bill was referred to three committees and passed its first two committees each by a vote of 15-0. As of the 29th of March, the House bill is in its last committee, the State Affairs Committee. The Senate version of the bill passed its first committee, Military Affairs by 6-0 and it is now in the Appropriations Committee on Health and Human Services.
The state has sufficient funds for this program and the State of Florida has a good track record of creating programs to help veterans. We expect this bill to move and get resounding support for leadership. Both the House and Senate versions have received three committees of reference but have not yet been heard.
The bill establishes the Veterans Dental Care Grant Program in the Florida Department of Veterans’ Affairs. The department shall contract with a statewide direct service organization to administer the Veterans Dental Care Grant Program. The statewide direct-service organization must have proven experience developing and implementing veteran relevant programs, including dental service programs. The program is subject to appropriation by the legislature.
PROPERTY
1. Insurer Accountability – SB 7052
By Sen. Hutson
This is the Senate’s response after manufactured criticism that big insurance companies are being bailed out and after couple of high profile news articles on insurance companies low balling claims following Hurricane Ian. We expect to be able to make some amendments to some of the bad sections of the bill, particularly section 19. The bill applies to all lines, although its heavily focused on property insurance. Title insurers and the Florida Bar testified against it. SB7052 was filed as a committee bill and passed out of the Banking & Insurance committee within a few days of introduction. Its last stop will be the Fiscal Policy committee. The House has not filed a similar bill, but we should expect to see one in Week 6 or Week 7.
Regarding insurance coverage the proposed bill:
· Prohibits authorized and surplus lines insurers from cancelling a property insurance policy during any pending claim until after repairs are complete;
· Requires that Citizens cover property with open claims that are being handled by FIGA (Florida Insurance Guaranty Association);
· Prohibits the Office of Insurance Regulation (OIR) from waiving its review of policy forms for 3 years for any insurer that has violated the Insurance Code;
· Provides that the prohibition on applying any other deductible under the policy if a roof deductible is applied encompasses any other loss to the property caused by the same covered peril.
· Tolls the time period for filing a property insurance claim during an insured’s active duty military service; and
· Clarifies legislative intent that Chapter 2022-271, Laws of Florida, passed during Special Session A in December 2023, (SB 2-A [2022] on Property Insurance) shall not be construed to impair any right under an insurance contract in effect on or before the effective date of that chapter law (December 16, 2022).
· Clarifies that the provisions of do not impair rights under policies in effect before the act’s effective date.
Regarding rates charged for insurance, the proposed bill:
· Requires that property insurance and motor vehicle rate filings must include, and the OIR must consider in reviewing rates, the combined effect of recent legislative reforms;
- Appropriates $500,000 from the Insurance Regulatory Trust Fund for OIR to obtain an actuarial study to implement this requirement.
· Requires that property insurance mitigation discounts be updated at least every 5 years and insurers to provide consumer-friendly information on their website describing hurricane mitigation discounts available to policyholders; and
· Makes title insurance rates subject to OIR rate review.
Regarding insurer claims handling, the proposed bill:
· Requires OIR to ensure liability insurers are complying with proper claims handling practices by following specified best practices
· Creates a 60-day prompt-pay law for non-PIP motor vehicle insurance claims similar to the prompt pay law for residential property insurance claims;
· Requires insurers to annually submit their claims manuals to the OIR and attest that the manual comports to usual and customary industry claims handling practices, which is a concern given there is no separate bill creating a specific public records exemption; and
· Strengthens the Unfair Insurance Trade Practices Act by:
- Prohibiting altering or amending an adjuster’s report without including a list of changes, who made the change, and an explanation of a change that reduces coverage; and
- Prohibiting payment of bonuses to officers and directors while an insurer is impaired or insolvent.
Regarding regulatory oversight of insurers, the bill:
· Increases maximum administrative fines by 250 percent generally, and 500 percent for violations stemming from a state of emergency such as a hurricane.
· Requires insurers to more promptly respond to the Department of Financial Services (DFS) Division of Consumer Services and increases fines for noncompliance.
· Provides additional funding for the DFS Division of Consumer Services.
- Appropriates five positions with associated salary rate of 325,000 and the sum of $494,774 in recurring funds and $23,410 in non-recurring funds to the DFS from the Insurance Regulatory Trust Fund.
· Specifies objective criteria to be used by OIR to:
- Prioritize necessary financial and market conduct examinations.
- Determine when payments to affiliates are excessive.
· Provides conditions whereby the OIR must initiate a market conduct examination.
· Requires insurers to report to the OIR any temporary suspension of writing new policies.
· Applies the standard order that OIR issues to protect consumers after hurricanes to surplus lines insurers.
· Specifies that insurance fraud referrals may be made to the statewide prosecutor for crimes that impact two or more judicial circuits.
· Requires additional reporting from regulators regarding their enforcement actions.
2. Condominium and Cooperative Associations – HB 1395/SB 154
By Rep. Lopez and Senator Bradley
This is a cleanup package for the Surfside bill that passed in special session last May. The House bill passed its second committee by 13-0 and it has one last committee to pass before being heard by the whole chamber. The Senate bill has passed all of its committees and has been placed on the Special-Order Calendar agenda for 04/11.
SB 154 revises the milestone inspection requirements for condominium and cooperative buildings that are three or more stories in height to:
· Limit the milestone inspection requirements to buildings that include a residential condominium or cooperative;
· Provide that the milestone inspection requirements apply to buildings that in whole or in part are subject to the condominium or cooperative forms of ownership, such as mixed-use buildings;
· Clarify that all owners of a mixed-use building in which portions of the building are subject to the condominium or cooperative form of ownership are responsible for ensuring compliance and must share the costs of the inspection;
· Delete the 25-year milestone inspection requirements for buildings that are within three miles of the coastline;
· Authorize the local enforcement agencies that are responsible with enforcing the milestone inspection requirements the option to set a 25-year inspection requirement if justified by local environmental conditions, including proximity to seawater;
· Authorize the local enforcement agency to extend the inspection deadline for a building upon a petition showing good cause that the owner or owners of the building have entered a contract with an architect or engineer to perform the milestone inspection services and the milestone inspection cannot reasonably be completed before the deadline;
· Provide that the inspection services may be provided by a team of design professionals with an architect or engineer acting as a registered design professional in responsible charge; and
· Clarify that an association must distribute a copy of the summary of the inspection reports to unit owners within 30 days of its receipt.
Requires the Florida Building Commission to establish by rule a building safety program to implement the milestone inspection requirements within the Florida Building Code. The commission must specify the minimum requirements for the commission’s building safety program by December 31, 2024, including inspection criteria, testing protocols, standardized inspection and reporting forms that are adaptable to an electronic format, and record maintenance requirements for the local authority having jurisdiction.
Revises the requirement that all personal lines residential policies issued by the Citizens Property Insurance Corporation must include flood coverage to exempt condominium or cooperative units that are in certain flood-risk areas and above specified floors in a building.
Clarifies that both the condominium or cooperative unit owner and any person authorized by any owner as his or her representative may inspect the official records of the association.
The bill provides additional presale notice requirements in contracts for sales of a unit by a developer or nondeveloper. This provision is similar to current contract notices to unit owners obligated to furnish certain governing documents to the prospective buyer of a unit more than three days before closing for sales by a nondeveloper or 15 days before closing for sales by a developer. A contract that does not conform to these notice requirements is voidable at the option of the purchaser prior to closing.
3. Collateral Protection Insurance on Real Property HB 793/SB 410
By Rep. Fernandez-Barquin and Sen. Garcia (I)
This is the first time this type of language has been introduced in Florida. The House and Senate bills have received three committees of reference. SB 410 passed the Banking and Insurance committee by 11-0. The House version passed its second of three committees by a vote of 12-0.
The bill creates a new section of law dealing with real property collateral protection insurance, also known as “forced-placed” insurance. The bill seeks to promote the public welfare by regulating collateral protection insurance on real property, create a legal framework which collateral protection insurance on real property may be written in the state, help maintain the separation between mortgage lenders or servicers, and insurers or insurance agents, and minimize the possibilities of unfair competitive practices in the sale, placement, solicitation, and negotiation of collateral protection insurance.
The scope of the bill applies to insurers and insurance agents engaged in any transaction involving collateral protection insurance on real property and all collateral protection insurance written in connection with mortgaged real property, including manufactured and mobile homes.
4. Insurance HB 505/SB 418
By Rep. Berfield and Sen. Perry
This bill has turned into the Insurance Omnibus bill for the 2023 Legislative Session. As usual for every session the House and Senate versions will move through the process picking up smaller industry specific language and turning the bill into a train. On March 23, HB 505 received a favorable vote from the State Administration and Technology Appropriations Subcommittee by a vote of 14-0 and is currently waiting to be heard in the Commerce Committee, its last committee of reference. The Senate bill is still waiting to be heard in its final committee.
The Senate bill is ahead of the House version and has the following provisions:
· Allows a residential property insurer’s rate filing to estimate projected hurricane losses by using a weighted or straight average of two or more models approved by the Florida Commission on Hurricane Loss Projection Methodology.
· Provides that, in lieu of themselves, the Executive Director of the Citizens Property Insurance Corporation, and the Director of the Division of Emergency Management, respectively, may appoint a designee to be a member of the Commission on Hurricane Loss Projection Methodology.
· Authorizes an insurer to file a personal lines residential property insurance rating plan that provides premium discounts, credits, and other rate differentials based on windstorm construction standards developed by an independent, not-for-profit, scientific research organization.
· Limits the requirement that an insurer provide a policyholder who has an automatic bank withdrawal agreement with the insurer with 15 days advance written notice of any increase in policy premiums. Instead, notice will only be required for premium increases that result in an increase in the automatic withdrawal of more than $10 from the previous withdrawal amount.
· Revises provisions regarding the delivery of a policy to a policyholder by expanding the type of policies authorized to be delivered by electronic transmission to include individual and group health insurance policies, including dental.
· Revises the mandated deductibles that must be offered for hurricane loss when issuing a personal lines residential property insurance policy. For policies with a dwelling limit of at least $1 million, the bill no longer requires the offer of the current mandated deductibles of 2 percent, 5 percent, and ten percent of the dwelling limit. Instead, the bill provides that an insurer may offer deductibles of up to:
- Ten percent, for a policy covering a risk with dwelling limits of at least $1 million, but less than $3 million;
- Fifteen percent, for a policy covering a risk with dwelling limits greater than $3 million.
· Revises the requirement that the waiver by a policyholder of windstorm coverage or contents coverage, must be in the policy holder's own handwriting, by also allowing the waiver to be typed.
· Eliminates the requirement that a notice be stamped on the declarations page of limited coverage automobile policies. Such policies generally cover antique motor vehicles.
5. Hurricane Protection for Condominium Association (Mitigation Credits)
HB 395/SB 556 By Rep. Tuck and Sen. Hooper
Both House and Senate bills have received three committee references. The Senate bill has cleared its second of three committees by a vote of 7-0. The House bill has not moved and technically may be dead for the session.
Adds in the definition section of condominium a term “hurricane protection” which covers hurricane shutters, impact glass, code-compliant windows or doors and other code-compliant hurricane protection products in order to potentially earn insurance mitigation credits.
The bill allows for condominium associations to let members vote and by a simple majority require unit owners to install hurricane protection that complies with or exceeds the applicable building code.
6. Residential Property Insurance Rates (Mitigation Credits)
HB 799/SB 594 By Rep. Griffitts and Sen. Martin
The House and Senate bills have received three committee references. HB 799 has passed its second of three committees by a vote of 13-0. SB 594 passed its second committee by a vote of 8-0. Both bills are in a position to pass.
The bill adds “wind uplift prevention” to a list of techniques that can be used to reduce property loss and potentially receive a discount, credit or other rate differentials on property insurance. The bill also fixes the flood coverage mandate for citizens’ policies for condominium owners.
7. Flood Zone Disclosures for Dwelling Units HB 1291/SB 716
By Rep. Antone and Sen. Stewart
LIKELY DEAD
Both the House and Senate versions have received three committees of reference. Neither of these bills has been heard in committee.
Requires landlords or persons authorized to enter into rental agreements on behalf of landlords to make specified disclosures relating to flood zones before the commencement of a tenancy and reinform tenant if the flood zone changes.
8. Flood Damage Prevention HB 859/SB 1018 (Mitigation Credits)
By Rep. Basabe and Sen. Trumbull
LIKELY DEAD
The bill has three references in the House and Senate. The Senate bill passed its second committee by 9-0 and is now in Rules. The House bill still has not been heard in a committee.
The bill creates the “Flood Damage Prevention Act of 2023.” The bill seeks to allow the Florida Building Commission to develop certain mitigation strategies in rule to mitigate property damage and encourage continued investment in Florida.
9. Resolution of Disputed Property Insurance Claims HB 1141/SB 1174
By Rep. Gottlieb and Sen. Polsky
LIKELY DEAD
The bills received three references each in the House and Senate. The bills have not been heard and with the current climate in both House and Senate, I would expect this bill not to pass.
The bill creates mandatory mediation for resolution of disputed property insurance claims. If agreed to by both parties, it allows for mediation to be conducted via telephone. Once mediation is invoked, the policyholder must, within 10 days, provide to the insurer any and all supporting documents and information that serve as the basis for the claim.
10. Natural Emergencies and Claims Handling Manual SB250
by Sen. Martin
A bill dealing with emergency response after natural disasters also included a provision requiring filing of claims handling manuals with OIR. There is no House companion measure at this time. The bill passed both of its committees and is set for the Senate floor calendar on April 3 with an amendment pending to strike the claims manual section.
AUTO
1. Motor Vehicle Liability Policies - HB 57/SB 516 for Risk Retention Groups
Rep. Truenow and Sen. DiCeglie
The House version only received two committee stops and cleared House Insurance and Banking 15-0 and goes next to the Commerce committee. The Senate version was referred to three committees. The Senate bill has two more committees to pass through, however the bill is receiving some opposition from national RRGs.
The bill permits the owner or operator of a motor vehicle to provide proof of financial responsibility by obtaining an insurance policy from a risk retention group that: 1) has an “A” or higher rating for financial strength, and “VIII” or higher for financial size by the A.M. Best Company, and 2) only provides commercial coverage to its members and shareholders. The bill would permit an RRG to directly provide commercial auto insurance at a lower price to its Florida members.
2. Motor Vehicle Insurance and Driver Licenses for Foster Youth SB 168
By Sen. Garcia (I)
The Senate version is moving quickly through the process and only has two committees to go. A House bill has not been filed. The only hold-up may be the fiscal impact associated with the expansion of the program.
Expands the “Keys to Independence” program by removing language in statute that restricts one of the eligibility paths to receive Keys support. Currently, youth and young adults who achieve eligibility for the Keys program via enrollment in postsecondary educational services and supports (PESS) must also have been in licensed care when he or she reached 18 years of age. The bill expands eligibility for the Keys program by removing the requirement for young adults who are eligible by enrollment in PESS to also have been in licensed care when turning 18 years of age.
The Keys program is a state-funded normalcy support program designed to remove barriers to obtaining a driver license for foster and former foster youth. The program removes barriers to obtaining a driver license by young adults by paying, subject to available funding, the cost of driver education, licensure, other costs incidental to licensure, and motor vehicle insurance for certain populations. The change will allow approximately an additional 450 young adults to be eligible to participate in the Keys program.
3. Electronic Motor Vehicle Registration Certificates SB 370
By Sen. Brodeur
The Senate version has moved through the second of three committee stops. A House version has yet to be filed.
Authorizes acceptance of an electronic certificate of motor vehicle registration as documentation required to be in the possession of a motor vehicle’s operator or carried in the vehicle while the vehicle is being operated on the roads of this state. The bill provides that displaying an electronic registration certificate does not constitute consent for an officer or agent to access any other information on the electronic device, and the person who presents the device assumes liability for any resulting damage to the device.
4. Motor Vehicle Insurance HB 429/SB 586
By Rep. Alvarez and Sen. Grall
LIKELY DEAD
This is the PIP repeal bill for the 2023 Legislative Session. It has been filed by members of the legislature who are plaintiffs’ attorneys. The bill repeals Florida’s Motor Vehicle No-Fault Law and replaces it with a bodily injury liability system. In talks with leadership in the House, they have told us that PIP repeal is off the table or this session.
5. Commercial Vehicle Insurance SB 434
By Sen. Wright
LIKELY DEAD
The Senate bill has received three committees of reference and no House bill has been filed. We don’t expect this bill to be heard.
The bill increases the liability coverage from $350,000 per occurrence to $700,000 per occurrence for commercial motor vehicles with a gross weight over 44,000 pounds.
6. Towing Vehicles SB 438
By Sen. Rodriguez
LIKELY DEAD
The Senate bill has received three references and a House bill has yet to be filed. The bill has not been heard.
This bill seeks to make tow operators whole when towing vehicles from a scene to an investigating agency’s storage facility by mandating that the agency collects the towing and storage cost from the owner of the vehicle before the agency releases the vehicle and if they fail to do so the agency must pay that amount to the tow operator within 5 days.
7. Post-lost Benefit Assignments for Glass Under Motor Vehicle Insurance Policies HB 541/SB1002 By Rep. Griffitts and Sen. Stewart
This tort bill has received three committee references in the House. HB 541 has cleared two of its three committee stops. Its Senate companion passed its first two committees but was temporarily postponed by its last committee, the Rules Committee.
This bill eliminates auto “assignment agreements” for auto glass on any policy issued after July 1, 2023. This is another anti-trial bar bill designed to stop excessive litigation on auto insurance policies.
GENERAL INSURANCE
1. Department of Financial Services HB 487/SB 1158
By Rep. Salzman and Sen. DiCeglie
The House version of this bill passed its first of three committees on March 21st. The Senate version passed its first of three committees Banking and Insurance on March 22nd. The House staff director removed several sections of the bill claiming they were not germane to the title of the bill. We expect this bill to be heard in the House and Senate the week of April 10th.
This is an omnibus department package and includes the following:
· Workers compensation – changes jurisdiction of the three-member panel and reimbursement schedule;
· Guaranty funds: Makes changes to the board composition of FSIGA, FIGA, FLAHIGA and Medical Malpractice JUA. Contains conflict of interest voting rules. Allows CFO to remove a director for malfeasance. The provision requiring term limits for board members was stricken from the bill in the last committee stop for all of the guaranty fund sections of the bill. The FIGA section requires that a majority of the board appointments be from domestic carriers.
· Changes fingerprint requirements for agent licensing exam centers;
· Exempts title, life insurance and annuity contracts from agency closure notification provisions.
· Agent examination is not required for Professional in Claims (PIC) from 2021 Training, LLC;
· Specifies elective continuing education courses for public adjusters may must be any course related to commercial and residential property coverages, claim adjusting practices, and any other adjuster elective courses;
· Strikes prohibitions on agents holding limited lines licenses for credit insurance for sales of motor vehicle physical damage and physical breakdown insurance, and combinations of other lines as well;
· Contains various public adjuster licensing updates;
· Revokes health insurance Navigator licenses where they fail to maintain a valid federal navigator registration;
· For property, casualty, except mortgage guaranty, surety, or marine insurance, other than motor vehicle insurance subject to s. 627.728 or s. 627.7281, reduces the period from 90 days to 60 days when such cancellation or termination occurs during the first 60 days during which the insurance is in force and the insurance is canceled or terminated for reasons other than nonpayment of premium, then at least 20 days' written notice of cancellation or termination must be given accompanied by the reason why;
· Corrects a glitch for HB701 (2021 session) for Behavioral Health notification and disclosure requirements; (removed from the House version; remains in Senate version. We are working to correct this.)
· Prohibits a liability insurer is prohibited from denying coverage for property and bodily injury liability claims made against an insured for up to the property and bodily injury liability limits set in s. 324.021(9) solely based on the insured's failure to cooperate with the insurer's investigation -- unless the insurer can clearly demonstrate by a preponderance of the evidence that the insured's lack of cooperation has resulted in actual prejudice to the insurer;
· Alternative Dispute Resolution: Would require an insurer is to make a claim determination or elect to repair pursuant to s. 627.70131 before participating in mediation.
· Imposes new restrictions against Collateral Protection insurance on a mortgaged property;
· Mediation of Claims: Increases the jurisdictional amount from $10,000 per claim to $50,000 per claim for personal injury or property damage claims related to a motor vehicle; insurers must bear all costs of the mediation, which must be reasonable; allows DFS to adopt rules for the program;
· FIGA: allows sharing of the insolvent insurers records with the prospective solvent assuming insurer for purposes of due diligence and allows transfer of the insolvent insurers book of business and policies; allows adjustment of cancellation date of policies by the receiver;
· Establishes a Direct Support Organization for the State Fire Marshal;
· Service Warranties: allows DFS to issue salesperson license for motor vehicle service agreement companies and insurers to nonresident applicant where there is reciprocity with the applicant’s home state; licensees charged with a felony may be immediately suspended; licenses must report actions against their license within 30 days of final administrative action;
· Bail bonds: revises agency licensing requirements.
2. SEE description of SB 7052 Insurer Accountability
See summary in Property section of this report. This is the Senate’s response to manufactured criticism that big insurance companies are being bailed out and after couple of high profile news articles on insurance companies low balling claims following Hurricane Ian. The bill applies to all lines, although its heavily focused on property insurance.
3. Firearm Liability Insurance SB 1024
By Sen. Stewart
LIKELY DEAD
It’s very unlikely that this bill will ever be heard in a committee. It received three committees of reference in the Senate and does not have a House sponsor.
The bill defines the terms “purchaser” and “qualified liability insurance policy.” A qualified liability insurance policy must provide such coverage in the amounts of at least $25,000 in medical benefits for injuries incurred as a result of the discharge of the firearm and $10,000 in liability coverage for property damage resulting from the discharge of the firearm. Set guidelines for selling and transferring firearms and requires the Department of Law Enforcement to adopt a form by rule.
There is no House companion measure.
WORKERS’ COMPENSATION
1. Workers' Compensation Benefits for Posttraumatic Stress Disorder - HB 337/SB 352
By Rep. McFarland and Sen. Burgess
The House bill received four committee references. The House version has passed three of its four committees. The Senate version has not progressed since its introduction on the 7th of March.
The bill allows posttraumatic stress disorder suffered by 911 public safety telecommunicators or crime scene investigators to be a compensable occupational disease. Provides requirements for benefits offered to 911 public safety telecommunicators or crime scene investigators for posttraumatic stress disorder and specifies when claim for posttraumatic stress disorder must be noticed.
TORT REFORM
1. Asbestos and Silica Claims HB 755/SB 1260
By Rep. Fabricio and Sen. Trumbull
The House bill received two committees of reference and the Senate version received three committees of reference. The House bill passed its first committee by a vote of 12-5 and is now in its last committee, the Judiciary Committee. The Senate bill has also passed its first committee by a vote of 11-0, and is now in the Commerce and Tourism Committee.
This bill seeks to codify current Florida case law on Bare Metal Defense and secondly seeks to crack down on over-naming of defendants by requiring the plaintiff’s attorney within 30 after filing an asbestos or silica claim to provide a simple nexus of why the defendant was named. If the plaintiff’s attorney does not provide the documentation, the claim upon motion to the court shall be dismissed without prejudice.
2. Civil Remedies HB 837/SB 236
By Rep. Fabricio and Gregory and Sen. Hutson
Signed by the Governor
This is the main tort bill for the 2023 legislative session. It was signed by the Governor on March 24, 2023.
The bill makes the following changes to Florida’s civil justice system:
· Changes Florida’s comparative negligence system from a “pure” comparative negligence system to a “modified” comparative negligence system, so that a plaintiff who is more at fault for his or her own injuries than the defendant may not recover damages from the defendant.
· Provides uniform standards to assist juries in calculating the accurate value of medical damages in personal injury or wrongful death actions.
· Modifies Florida’s “bad faith” framework to:
- Allow an insurer to avoid third-party bad faith liability if the insurer tenders the lesser of the policy limits or the amount demanded by the claimant before a complaint is filed, or within 120 days after service of the complaint.
- Clarify that negligence alone is not enough to demonstrate bad faith.
- Require a claimant to act in good faith with respect to furnishing information, making demands, setting deadlines, and attempting to settle the insurance claim.
- Allow an insurer, when there are multiple claimants in a single action, to limit the insurer’s bad faith liability by paying the total amount of the policy limits at the outset.
· Provides that a contingency fee multiplier for an attorney fee award is appropriate only in a rare and exceptional circumstance, adopting the federal standard.
· Repeals Florida’s one-way attorney fee provisions for insurance cases.
· Requires the trier of fact in certain negligent security actions to consider the fault of all persons who contributed to the injury.
· Reduces the statute of limitations for general negligence cases from 4 years to 2 years.
3. Advertising for Legal Services HB 1205/SB 1246
By Rep. Andrade and Sen. Yarborough
This is another tort priority being pushed by the Florida Justice Reform Institute. It has received three committee references in each chamber. The House version has passed its first committee by a vote of 12-5. The House bill as of April 5th is in its last committee, the Judiciary Committee. The Senate version passed its first two committees, and is as of April 5th in its last committee, the Rules Committee.
Requires advertisements for legal services relating to injuries from medications or medical devices to include specified statements and information:
· This is a paid advertisement for legal services.
· Consult your physician before making decisions regarding prescribed medication or medical treatment.
Prohibits protected health information from being sold, transferred, disclosed, used, or obtained for certain purposes without certain written authorization.
Provides that certain violations are deceptive and unfair trade practices and violators are subject to the penalties and enforcement under Ch. 501.
4. Causes of Action Based on Improvements to Real Property (Construction Defect)
HB 85 by Rep. Snyder and SB 360 Sen. Hutson
PASSED (Enrolled) but not yet signed by Governor
HB 85/SB 360 amends s. 95.11, F.S., to modify the time periods within which a construction defect cause of action must be brought.
Specifically, the bill:
· Changes the point from which the four-year statute of limitations begins to run for patent defects to the date of the earliest of the:
- Issuance of a temporary certificate of occupancy;
- Issuance of a certificate of occupancy;
- Issuance of a certificate of completion; or
- Construction’s abandonment, if not completed.
· Decreases the statute of repose from ten years to seven years, running from the date of the earliest of the:
- Issuance of a temporary certificate of occupancy;
- Issuance of a certificate of occupancy;
- Issuance of a certificate of completion; or
- Construction’s abandonment, if not completed.
The bill also:
· Specifies that each dwelling unit within a “multi-dwelling building” must be considered its own improvement for purposes of determining the limitations period, consistent with the reasoning of the Fifth DCA in the Sabal Chase case, described above.
· Provides that these amendments apply to any construction defect cause of action commenced on or after the bill’s effective date, regardless of when the cause of action accrued, except that any such action that would not have been time-barred before these amendments must be commenced on or before July 1, 2024.
Finally, the bill amends s. 553.84, F.S., to limit the cause of action for a Building Code violation to a cause of action for a “material” Building Code violation, defined by the bill as a Building Code violation “that exists within a completed building, structure, or facility which may reasonably result, or has resulted, in physical harm to a person or significant damage to the performance of a building or its systems.” This limitation would apply even where the person responsible for a “non-material” Building Code violation knew or should have known that the violation existed and failed to repair it.
PRIVACY
1. Technology Transparency HB 1547/SB 262
By Rep. McFarland and Sen Bradley
Both House and Senate bills have received three committee references. The House version passed its first committee by a vote of 15-0. The Senate bill was deemed favorable by its first committee with committee substitute by a vote of 9-0. The Senate President removed a committee reference placing the bill in Senate Rules, which is its last committee.
These bills contain exceptions for HIPAA & GLBA and do not contain a private right of action. SB 262 is on the Senate Commerce committee agenda on April 4th. The House bill was held favorable with Committee Substitute by the Regulatory Reform and Economic Development Subcommittee.
Business groups have raised concerns regarding potential advertising restrictions. While the bill contains an opt-out provision for targeted advertising, it could result in more ads targeting consumers seeking their attention while offering less value. The legislation could take targeted advertising out of the small business owner's toolbox. This bill is a priority of Governor DeSantis.
OTHER (Non-insurance)
1. Government and Corporate Activism (ESG)– HB 3/SB 302
By Rep. Rommel and Sen. Grall
This bill is a Speaker/President/Governor/CFO priority. HB 3 passed the floor of the House on March 24th, by a vote of 80-31. The Senate bill has cleared its first of two committees, the Banking and Insurance Committee, by 8-3.
Revises current law regarding the investment criteria for the Chief Financial Officer (CFO) and his office by stating he/she can only use pecuniary factors when making investment decisions. The bill defines pecuniary factors as:
The term "pecuniary factor" means a factor that the plan administrator, named fiduciary, board, or board of trustees prudently determines is expected to have a material effect on the risk or returns of an investment based on appropriate investment horizons consistent with the investment objectives and funding policy of the retirement system or plan. The term does not include the consideration or furtherance of any social, political, or ideological interests.
Significant portions of the bill affect state and local bonds, local government investing, purchasing, and contracting and empowers the state attorney general to enforce the bill.
Adds provisions to the definition of a “Qualified Public Depository” that stat no one can be discriminated against for a plethora of issues including but not limited to ownership of a firearm, support in combatting illegal immigration or human trafficking, engagement in fossil fuel-energy, etc. And beginning July 1, 2023, banks must attest to the CFO that they are in compliance with this new law.
2. State Board of Administration(“ESG”) – HB 1139/SB 110
By Sen. Hooper
The Senate bill has passed its first of two committees and should be heard in the next noticed Senate Appropriations committee. The House version has been referred to two committees and passed its first committee on March 22nd, by a vote of 14-0.
This bill seeks to codify in statute actions taken by the State Board of Administration (SBA) during an August 23, 2022, Cabinet meeting that reiterated the fiduciary responsibility of the SBA and it may not sacrifice investment return or take on additional investment risk to promote any non-pecuniary factors.
Both bills were amended in their respective first committees to eliminate the ESG language. It is now merely an SBA housekeeping bill. The ESG issue is tackled in another bill, HB3.
3. Telephone Solicitation – HB 761/SB1308
Rep. Fabricio and Sen. Yarborough
The House and Senate versions received three committee references. HB 761 passed its second of three committees on March 27th. The Senate version was placed on the Commerce and Tourism Committee’s agenda where it was deemed favorable by a vote of 9-0 with a committee substitute. The Senate President removed a committee reference and has placed the bill in Senate Rules, which will be its last committee before the floor.
The bill:
· Revises the prohibition on telephonic sales calls that use an automated system to specifically include unsolicited calls using an automatic telephone dialing system for the selection and dialing of telephone numbers.
· Clarifies clear and conspicuous disclosure requirements.
· Defines an automatic telephone dialing system as “equipment using a random or sequential number generator that stores or produces telephone numbers and dials the stored or produced telephone numbers.”
· Authorizes certain acts to qualify as a signature used to provide prior express written consent.
The bill states that the changes to the statutory sections are remedial in nature and apply retroactively to July 1, 2021, and to any proceeding pending or commenced on or after July 1, 2021.
The House bill sponsor had to accept trial bar amendments to get the bill heard in Civil Justice. The Senate sponsor had to accept a similar bad amendment to the bill to get it moving. We have talked with the House Commerce Chair and he is working with us to clean up the bill.
4. Public Financing of Potentially At-risk Structures and Infrastructure – HB 111/SB 1170
By Rep. Hunschofsky and Sen. Calatayud
HB 111 passed its second of three committees on March 22, by a vote of 14-0. The Senate bill is currently in its second of three committees, the Appropriations Committee on Agriculture, Environment, and General Government.
The bill seeks to expand the studies for public financing of construction projects from the coastal building zone to “areas at risk due to sea level rise.” This newly defined area will apply to structures within the 50 year National Oceanic and Atmospheric Administration (NOAA) intermediate-high sea level rise projections. A defined threshold established by the Florida Department of Environmental Protection by rule, in coordination with the Florida Department of Transportation and water management districts, for a potentially at-risk structure or infrastructure where replacement cost is not an appropriate metric, such as roadways. The threshold must be established by July 1, 2024.
5. Medical Treatment of Animals via Telehealth HB 1117/SB 1600
By Rep. Buchanan and Sen. Ingoglia
The House version received two committees of reference and was heard in its final committee, Commerce, on March 27th and passed by a vote of 19-0. The House bill has been placed on the Calendar for its second reading. The Senate version has not progressed since its introduction.
We expect the bill to receive a hearing in at least one committee but not pass, as the ability to prescribe a controlled substance will probably weigh the bill down.
The bill allows for veterinarian telemedicine and creates a gives a veterinarian practicing telemedicine to order, prescribe, or make available specified medicinal drugs and controlled substances. The bill also makes minor changes in scope of work when performing rabies vaccinations.
6. My Safe Florida Home Program HB 881/SB 748
By Rep. LaMarca and Sen. Boyd
This is a glitch cleanup bill from a for Senate Bill 2D passed May of 2022. The bill has received three committees of reference in the House and Senate, and we would expect this bill to pass with no opposition. The House bill passed its final committee on March 27th. The Senate bill is waiting to be heard in its second of three committees.
Expands the coverage of the My Safe Florida Home Program to include townhouses. Cleans up previous language of who can perform the hurricane mitigation inspection, clarifies the inspection can only be for homesteaded properties, removed upgrading roof covering from code to code plus for eligibility for grants and increase the grant amount for low-income homeowners from $5,000 to $10,000.
7. Consumer Protection HB 1185/SB 1398
By Rep. Giallombardo and Sen. DiCeglie
Both bills have passed their first committee with strike-all amendments. This is the Department of Financial Services Consumer Protection Package. This bill would adopt the NAIC Best Interest Standard for annuity sales, including incorporating the 3 disclosure forms from the model regulation. These forms would supersede Florida’s previous version of the disclosure form. The House bill received two committees of reference and it is as of March 28th in its last committee, the Commerce Committee. The Senate version received three committees of reference, and is in its second committee, the Appropriations Committee on Agriculture, Environment, and General Government.
The bill also contains service warranty language as well as new restrictions on public adjusters signing up policyholders after natural disasters.
