Florida Insurance-Related Bills Effective July 1, 2010
Jun 30, 2010
Many of the 274 new laws passed during Florida’s 2010 Legislative Session will become effective this Thursday, July 1, except as otherwise provided. These include major insurance-related bills, which are listed below:
HB 159 relating to Guaranty Associations
HB 159 revises laws relating to the Florida Insurance Guaranty Association, the Florida Life and Health Insurance Guaranty Association and the Florida Workers’ Compensation Insurance Guaranty Association.
HB 661 relating to Minimum Surplus Requirements for Mortgage Guaranty Insurers
HB 661 authorizes Florida’s Insurance Commissioner to temporarily permit a mortgage guaranty insurer, upon written request, to continue writing new business if its risk-to-capital ratio reaches 25-to-1. The request may be granted if the Commissioner finds that the insurer’s financial position is reasonable in relation to its aggregate insured risk and financial needs (i.e., that the insurer’s resources are adequate to satisfy policyholder claims to continue writing new business). HB 661 also permits the Florida Office of Insurance Regulation (“OIR”) to take action against any mortgage guaranty insurer that does not obtain a temporary exception, but continues to write new business after its risk-to-capital ratio reaches 25-to-1.
HB 663 relating to Building Safety
HB 663 revises provisions of law in regard to the following:
- Circumstances that constitute abandonment of homestead property;
- Requirements for retrofitting and regional emergency elevator access;
- Home inspector and mold assessor licensure and regulation requirements;
- The bill delays implementation of licensure requirements and provides that licensed home inspectors who complete mitigation training may sign uniform mitigation verification inspection forms;
- In relation to the Florida Building Code, provisions related to manufactured buildings, nonbinding code interpretations, code amendments, alternative plans review and inspection process, exemptions from the Building Code, requirements for carbon monoxide alarms, pool pump motors, air conditioner installation, roof-mounted equipment and windstorm mitigation;
- Relating to fire prevention and safety, provisions relating to expedited declaratory statements, nonbinding interpretations of the Florida Fire Prevention Code, continuing education reciprocity, certification requirements for fire protection service contractors, fire equipment dealers and certain firefighters, continuing education licensure requirements; and public fire hydrants; and
- Condominium common element inspection requirements.
HB 689 repeals s. 768.0710, F.S. relating to the burden of proof in “slip and fall” claims of negligence. The bill provides that, if a person slips and falls on a transitory foreign substance in a business establishment, he or she must prove that the business establishment had actual or constructive knowledge of the dangerous condition and should have taken action to remedy it. Under the provisions of HB 689, constructive knowledge may be proven by circumstantial evidence showing either (1) that the dangerous condition existed for such a length of time that, in the exercise of ordinary care, the business establishment should have known of the condition; or (2) that the condition occurred with regularity and was therefore foreseeable.
HB 713 Relating to Department of Business and Professional Regulation
Among numerous modifications to several regulatory activities under the oversight of the Florida Department of Business and Professional Regulation (“DBPR”), HB 713 amends various provisions of Florida’s home inspection licensing program, which is scheduled to become effective July 1, 2010. Changes include modifying the definition of “home inspection services,” eliminating the applicable business license (certificate of authorization), authorizing applicants to take the licensure examination without having to obtain DBPR approval, requiring a criminal history check for applicants, providing disciplinary action for failure to meet standards of practice adopted by the DBPR and providing additional rulemaking authority.
HB 713 also amends various provisions of Florida’s mold-related licensure program, which is scheduled to become effective July 1, 2010 as well. Changes include eliminating the business license (certificate of authorization), authorizing applicants to take the licensure examination without having to obtain DBPR approval, clarifying that the two-year degree requirement must be an associate of arts degree or equivalent (with 30 semester hours in certain courses), requiring a criminal history check for applicants, providing disciplinary action for failure to meet standards of practice adopted by the DBPR and providing for additional related DBPR rulemaking authority.
HB 1035 relating to Elevator Safety
HB 1035 revises various provisions of law relating to the regulation of elevators by the DBPR’s Division of Hotels and Restaurants and Bureau of Elevator Safety. The bill creates a five-year exemption for updates to the Elevator Safety Code for existing elevators in condominiums and other multi-family residential buildings that relate to Phase II Firefighters’ Service, a building and elevator safety code requirement that permits firefighters to operate and control an elevator for evacuating the physically disabled and for moving firefighters and equipment. The exemption is limited to buildings that were issued a certificate of occupancy as of July 1, 2008, but does not apply if the elevator has been replaced or requires major modification before the end of the five-year exemption.
Among other regulatory provisions, HB 1035 also authorizes the issuance of citations for unlicensed activity and authorizes the enforcement of such citations as stop work orders.
SB 1196 Relating to Community Associations
In revising laws relating to community associations, condominium, homeowners’ and cooperative associations, SB 1196 clarifies the property insurance requirements of condominium associations and condominium unit owners under chapter 718, F.S. It also repeals the requirement that condominium unit owners must maintain property insurance coverage and that the condominium association must be an additional named insured and loss payee on policies issued to unit owners. SB 1196 repeals the provision that a condominium association may purchase property insurance at the expense of the owner when the unit owner does not provide proof of insurance. It further requires that residential condominium unit owner policies issued or renewed on, or after July 1, 2010, include loss assessment coverage of $2,000 for certain assessments with a deductible of no more than $250 per direct property loss. The bill sets limits for the amount of a unit owner’s loss assessment coverage that can be assess for any loss.
SB 2046 Relating to Employee Leasing Companies
SB 2046, which substantially amends ss. 468.5245, 468.528 and 468.534, F.S., deletes the requirement that an employee leasing company obtain approval of the Florida Board of Employee Leasing Companies (“Board”) before changing the name or location of a company. It also provides that Board approval is not required before the purchase or acquisition of an employee leasing company if a controlling person in the company is licensed. SB 2046 further provides that failure to pay a license renewal fee on time subjects the licensee to disciplinary action.
HB 5501 relating to the Florida Department of Highway Safety and Motor Vehicles
Designed as a cost-saving effort, HB 5501 eliminates the requirement that local law enforcement agencies submit the existing short-form crash report to the Florida Department of Highway Safety and Motor Vehicles (“DHSMV”) for retention. While this is expected to result in a cost savings due to the elimination of one DHSMV position and related expenses, it is not expected to affect the DHSMV’s ability to report the required crash data to the federal government, since the long-form crash report will continue to be retained.
The bill also amends Florida law to require a transition plan for Constitutionally-sanctioned tax collectors to render all driver licenses services by June 30, 2015. The changes also would allow charter appointed collectors from Miami-Dade, Broward, and Volusia counties to provide driver licenses-related services on a limited basis as directed by the DHSMV. A transition plan that may include recommendations on the use of regional service centers to be manned by the State must be submitted to Florida legislative leadership by February 11, 2011.
Under the provisions of HB 5501, tax collectors and clerks of court will be allowed to assess the $6.25 fee listed in s. 322.135(1)(c), F.S. for the service of providing driver records.
HB 7019 relating to Trust Funds/Creation/Mortgage Guaranty Trust Fund/Office of Financial Regulation
HB 7019 creates the Mortgage Guaranty Trust Fund (“Trust Fund”) within the Florida Office of Financial Regulation (“OFR”) to compensate persons who have suffered monetary damages as a result of a violation of chapter 494, F.S. by a licensed individual or business.
Funds credited to the Trust Fund must be used to pay claims against loan originators, mortgage brokers and mortgage lenders pursuant to s. 494.00172, F.S. The Trust Fund, which will derive its assets from an annual fee imposed on Florida-licensed loan originators, mortgage brokers and mortgage lenders, must be terminated on July 1, 2014.
Trust Fund fees must be paid upon initial licensure, and upon annual renewal at the rate of $20 per licensed individual or $100 per licensed business until the Trust Fund balance exceeds $5 million. At that point, those fees will be discontinued until such time as the Trust Fund balance falls below $1 million, whereupon they will be re-instituted until the balance again exceeds $5 million.
To view a complete Florida House of Representatives end-of-Session report featuring 2010 passed legislation, click here.
Should you have any questions or comments, please contact Colodny Fass.