Insurance Electronic Notice, Four-Vehicle Policy Bills Now Ready For Governor’s Consideration
Apr 2, 2015
Two insurance-related bills are on their way to Florida Governor Rick Scott for consideration after the Florida House of Representatives’ versions were each unanimously approved by the Senate on Third Reading yesterday, April 1, 2015.
The bills, HB 273 (SB 202) relating to Insurer Notifications and HB 4011 (SB 234) relating to Motor Vehicle Insurance, are described below:
HB 273 (SB 202) relating to Insurer Notifications
For personal lines insurance, HB 273 would allow insurers to deliver policy documents, including policies, endorsements, notices or other documents, by electronic means in lieu of delivery by mail if the policyholder affirmatively elects electronic delivery.
Further, the bill would also allow an insurer to send a Notice of Change of Policy Terms separate from the renewal notice as long as the notice is sent within the policy nonrenewal time limits in current law. (Generally, the nonrenewal time limits are notice at least 100 days prior to the effective date of the nonrenewal.) For any nonrenewal that takes effect between June 1 and November 30, at least 100 days written notice, or notice by June 1 is required, whichever is earlier. Under the provisions of HB 273, policyholders with property insured by the same insurer for five years or more would receive 120 days’ notice of nonrenewal instead of 100 days’ notice. Thus, the bill requires a Notice of Change of Policy Terms to be given sooner when it is not included with the renewal notice.
Effective July 1, 2015 if enacted, the bill would also require the insurer to provide the policyholder’s insurance agent with a sample copy of the Notice of Change of Policy Terms before or at the same time as the Notice is provided to the policyholder. If an insurer seeks to offer optional coverage (that increases the premium) as a part of a renewal policy, the bill would prohibit the insurer from using the “Notice of Change in Policy Terms” to add the optional coverage to the policy unless the policyholder affirmatively approves. Property and casualty insurers that choose to provide a Notice of Change of Policy Terms by mail (separate from the renewal notice) may incur additional costs associated with printing and mailing this Notice. On the other hand, insurers who utilize the electronic delivery option should experience cost savings.
HB 273 was originally sponsored by State Representative Keith Perry.
HB 4011 (SB 234) relating to Motor Vehicle Insurance
Originally sponsored by State Representative Tom Goodson, HB 4011 addresses an estimated 51,408 households in Florida that have five or more vehicles available–a number that exceeds the current law limiting private passenger motor vehicle insurance policies to no more than four vehicles per policy.
Effective July 1, 2015 if enacted, HB 4011 removes the four-vehicle maximum from the definition of “motor vehicle insurance” in s. 627.041(8), F.S., and the definition of “policy” in s. 627.728(1)(a), F.S. to allow vehicle owners to purchase, and insurers to issue single policies that cover any number of private passenger motor vehicles, rather than just four or less vehicles per policy.
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