Current through Reg. 50, No. 187; September 24, 2024
This rule adopts standardized requirements that may be
applied to insurers as a consequence of a hurricane or other natural disaster.
The Office is authorized to issue an Order or Orders deemed necessary to
protect the health, safety and welfare, activating the requirements herein, in
whole or in part. An Order may be amended as deemed necessary to accommodate
the particular circumstances of the specified hurricane or natural disaster.
The following standardized provisions may be activated as provided
herein:
(1) Claims Reporting
Requirements.
(a) This subsection applies to
all property and casualty contracts of insurance subject to regulation under
the Florida Insurance Code including:
1. All
policies referenced in Chapters 440, 624, 626, and 627, F.S.; and
2. Premium finance company contracts
associated with property and casualty contracts.
References in this subsection herein to "policy" or "contract
of insurance" includes all property and casualty contracts regulated under the
Florida Insurance Code. References to "insurer" include all regulated entities
issuing these contracts.
(b) All insurers having direct premiums
written in Florida and authorized, approved or otherwise eligible to provide
the coverages indicated below in subparagraphs (1)(b)1. and 2., shall report
the requested information to the Office. The reporting shall be submitted with
such frequency and for such areas as set forth in the Order. The applicable
coverages are:
1. Those coverages as defined
in Sections 627.4025(1) and
215.555(2)(c),
F.S.
2. Other property coverages
where loss is not specifically excluded in the policy's outline of coverage
such as:
a. Private Passenger Auto Physical
Damage;
b. Commercial Auto Physical
Damage;
c. Commercial Property,
including Fire and Allied Lines;
d.
Commercial Multiple Peril;
e.
Farmowners Multiple Peril;
f. Ocean
Marine;
g. Inland Marine;
h. Aircraft; and,
i. Boiler and
Machinery.
(c)
1. Insurers shall electronically submit the
data required for each reporting event. Required data may include:
a. Policies in force;
b. Claims reported;
c. Open claims with payment;
d. Open claims without payment;
e. Claims closed with payment;
f. Claims closed without payment;
g. Number of open claims;
h. Percent of claims closed;
i. Paid loss excluding loss adjustment
expense;
j. Paid allocated loss
adjustment expense;
k. Case
incurred loss excluding loss adjustment expense; and,
l. Case allocated loss adjustment
expense.
2. All
information shall be submitted electronically through
http://www.floir.com/iportal.
(2) Grace Periods and Temporary Postponement
of Cancellations or Non-renewals.
(a) This
subsection applies to all property and casualty contracts of insurance subject
to regulation under the Florida Insurance Code including:
1. All policies referenced in Chapters 440,
624, 626 and 627, F.S.; and
2.
Premium finance company contracts.
References in this subsection herein to "policy" or "contract
of insurance" includes all property and casualty contracts regulated under the
Florida Insurance Code. References to "insurer" include all regulated entities
issuing these contracts.
(b) Reinsurance contracts are not subject to
this rule, however, ceding insurers shall, within ten (10) days, notify the
Office, of the cancellation or nonrenewal of any reinsurance contract
reinsuring property risks located in the state. All filings shall be submitted
electronically to http://www.floir.com/iportal.
(c) As to any policy provision, notice,
correspondence, or law that imposes a time limit upon an insured to perform any
act, including transmitting information or funds with respect to a contract of
insurance, which act was to have been performed on or after the date specified
in the Order of the Office, the time limit shall be extended to a date
specified in the Order.
1. This extension of
time shall not relieve a policyholder who has a claim resulting from the
designated hurricane or natural disaster from compliance with their obligations
to provide information and cooperate in the claim adjustment process relative
to their property damage claim.
2.
This extension of time shall also not apply to new policies effective on or
after the date specified in the Order.
No interest, penalties, or other charges, shall accrue or be
assessed, as the result of the extensions required herein. Interest that is
owed pursuant to premium financing plans with premium finance companies or
insurers or their affiliates may be assessed.
(d) During the dates specified in the Order,
no insurer or other entity regulated under the Florida Insurance Code shall
cancel or non-renew, or issue a notice of cancellation or nonrenewal of a
policy or contract of insurance covering a property or risk in the referenced
areas as specified in the Order, except at the written request or written
concurrence of the policyholder.
(e) All notices of cancellation issued or
mailed within ten (10) calendar days preceding the date specified in the Order
and, affecting the referenced areas, shall be withdrawn and reissued to
insureds on or after the date specified in the Order.
(f) A cancellation or nonrenewal may occur
prior to the expiration date specified in the Order, at the written request or
written concurrence of the policyholder.
(g) Except as provided in paragraphs (2)(d)
and (e), with respect to a notice of cancellation or nonrenewal that, but for
this rule, would have taken effect during the dates specified in the Order,
such notice is not made invalid by this rule; however;
1. The insurer shall extend the coverage to
and including the date specified in the Order, or a later date specified by the
insurer; and
2. The premium for the
extended term of coverage shall be the appropriate pro rata portion of the
premium for the entire term of the policy.
(h) An insurer or other regulated entity that
was unable to cancel or non-renew a policy due to the operation of this rule,
may upon proper notice, cancel or non-renew such policy, effective on the date
the policy would have otherwise been cancelled or non-renewed, in the event the
insured has not filed a claim under the policy and not paid outstanding premium
due.
(i) No policy shall be
cancelled or non-renewed solely because of a claim resulting from a hurricane
or natural disaster.
(j) An
insurer's offer of replacement coverage, that is voluntarily accepted by an
insured or applicant in an affiliated company, or made pursuant to a
depopulation program, assumption or other arrangement approved by the Office
does not constitute a nonrenewal or cancellation for purposes of this
rule.
(k) Any insurer who receives
a claim from an insured owing premium may offset the premium due to the insurer
or a premium finance company from any claim payment made under the
policy.
(l) Nothing in this rule
shall be construed to exempt or excuse an insured from liability for premiums
otherwise due for actual coverage provided.
(m) This rule shall not apply to new policies
effective on or after the initial activation date specified in the
Order.
(n) If the contract of
insurance was financed by a premium finance company for risks located in the
referenced areas, the following provisions apply:
1. Premium finance companies may issue
advisory 10-day notices of intent to cancel and cancellation notices in
accordance with the terms of the premium finance agreement signed by the
insured. In addition, each such advisory notice shall prominently contain the
following statement:
"If you have been displaced through the loss of your home or
damage to your home which has caused you to reside elsewhere on a temporary
basis, or if you have temporarily become unemployed due to the destruction
caused by Hurricane [name of hurricane or natural disaster], please contact
this office at once.
Victims of Hurricane [name of hurricane or natural disaster]
will receive an automatic extension of time to and including [date specified in
the Order], to bring their accounts up to date and no late charges will be
applied to any late payments received which were due on their accounts during
the period of the dates specified in the Order.
Therefore, if you are a victim of Hurricane [name of
hurricane or natural disaster], please contact us at once at the number
provided at the bottom of this notice so that we may advise you of the status
of your account.
If you decide that you no longer need or desire to keep the
coverage provided by the insurance policy financed by your contract with us,
please contact us at once so that we may instruct you on how to effect
cancellation with your insurer."
2. If a premium finance loan is in default at
the end of the grace period, a premium finance company shall give proper notice
by:
a. Issuing a 10 day notice of intent to
cancel to the insured by the means provided under Section 627.848(1)(a)1.,
F.S., and applicable regulations; and,
b. If the insured does not bring their loan
current within the time provided in the notice of intent, a premium finance
company may mail the insurer a request for cancellation as provided in Section
627.848(1)(a)2., F.S.
3.
Upon receipt of a request for cancellation from a premium finance company after
the grace period specified in an Emergency Order expires, the insurer will
process the cancellation in accordance with paragraph (2)(h).
4. Any insurer who is unable to cancel
because it has received a claim under a policy for which it receives a notice
of cancellation from a premium finance company will offset the balance owed the
premium finance company, as disclosed in the notice of cancellation, from the
first claim payments made under the policy.
5. No late charges shall be assessed for any
insured who qualifies for protection under this rule.
(o) Subsection (2) of this rule, shall not
apply to policies for the following kinds of insurance issued by authorized
insurers that cover a business that is domiciled or maintains its primary place
of business outside of Florida: Surety insurance as defined in Section
624.606, F.S.; Fidelity
insurance as defined in Section
624.6065, F.S.; Marine
insurance, wet marine and transportation insurance and inland marine insurance
as defined in Section
624.607, F.S.; Title insurance
as defined in Section
624.607, F.S.; Collateral
Protection insurance as defined in Section
624.6085, F.S.; Workers'
Compensation insurance as defined in Section
624.605, F.S.; Casualty
insurance as defined in Section
624.605, F.S., but limited to
coverage of commercial risks other than residential or personal property; and
property insurance as defined in Section
624.604, F.S., but limited to
coverage of commercial risks other than residential or personal property.
Additionally, this rule shall not apply to life insurance policies or annuity
contracts that are owned by a person other than the insured or the annuitant or
where the premium payer under such policy is a person other than the insured or
annuitant and such owner or premium payer does not reside in the referenced
areas.
(p) Any insurer that becomes
impaired or insolvent due to a hurricane or natural disaster or the operation
of subsequent rules and orders has a duty to report the resulting financial
condition to the Office as soon as possible. Notwithstanding any other
provisions contained herein, an insurer may file a petition pursuant to Section
120.542, F.S. if compliance with
this rule may be reasonably expected to result in such insurer being subject to
financial regulatory action levels by the Office.
(q) The provisions of this rule shall be
liberally construed to effectuate the intent and purposes expressed therein and
to afford maximum consumer protection.
(3) Grace Periods and Temporary Postponement
of Cancellations or Non-renewals.
(a) This
subsection applies to all life and health contracts of insurance subject to
regulation under the Florida Insurance Code including:
1. All policies referenced in Chapters 624,
626, 627, 636, 641, and 651, F.S.;
2. Contracts issued by Multiple Employer
Welfare Arrangements and Commercial Self-Insurance Trusts; and
3. Premium finance company contracts
associated with life and health contracts.
References in this subsection to "policy" or "contract of
insurance" includes all life or health agreements regulated under the Florida
Insurance Code. References to "insurer" include all regulated entities issuing
these agreements.
(b) Any free look period in a variable life
policy or variable annuity contract is not extended by this rule.
(c) As to any policy provision, notice,
correspondence, or law which imposes a time limit upon an insured to perform
any act or transmit information or funds with respect to a contract of
insurance, which act was to have been performed on or after the date specified
in the Order of the Office, the time limit shall be extended to the date
specified in the Order, except that:
1. This
extension of time shall not relieve an insured who has a claim during this
period from compliance with any obligation to provide information and cooperate
in the claim adjustment process relative to their claim.
2. This extension of time shall not apply to
new policies effective on or after the date specified in the Order.
No interest, penalties, or other charges shall accrue or be
assessed as the result of the extensions required herein. However, interest
that is owed pursuant to premium financing plans with premium finance companies
or insurers or their affiliates may be assessed.
(d) During the dates specified in the Order,
no insurer or other entity regulated under the Florida Insurance Code shall
cancel or non-renew a policy or contract of insurance or issue a notice of
cancellation or nonrenewal on a contract of insurance covering a person in the
referenced areas as specified in the Order, except at the written request or
written concurrence of the policyholder.
(e) All notices of cancellation issued or
mailed within ten (10) calendar days preceding the date specified in the Order,
affecting a person in the specified areas, shall be withdrawn and reissued to
insureds on or after the date specified in the Order.
(f) A cancellation or nonrenewal may occur
prior to the expiration date specified in the Order, at the written request or
written concurrence of the policyholder. The application for and issuance of a
replacement major medical health insurance policy which is subject to
regulation by the Patient Protection and Affordable Care Act,
Pub. L. No.
111-148, as amended by the Health Care and
Education Reconciliation Act of 2010,
Pub. L. No.
111-152, may be regarded by the insurer as a
written request for cancellation of the current major medical insurance policy
by the applicant/policyholder, provided the date of cancellation is not
effectuated prior to the date of the effectuation of the replacement policy 's
coverage.
(g) Except as provided in
paragraphs (3)(e) and (f), with respect to a notice of cancellation or
nonrenewal which, but for this rule, would have taken effect during the dates
specified in the Order, such notice is not made invalid by this rule; however;
1. The insurer shall extend the coverage to
and including the date specified in the Order, or a later date specified by the
insurer; and
2. The premium for the
extended term of coverage shall be the appropriate pro rata portion of the
premium for the entire term of the policy.
(h) Retroactive cancellation due to
non-payment of premium:
1. For health policies
or contracts, an insurer or other regulated entity that was unable to cancel or
non-renew a policy due to the operation of this rule, may upon proper notice,
cancel or non-renew such policy, effective on the date the policy would have
otherwise been cancelled or non-renewed, in the event the insured has not paid
outstanding premium due. For all other policies under this subsection, an
insurer or other regulated entity that was unable to cancel or non-renew a
policy due to the operation of this rule, may upon proper notice, cancel or
non-renew such policy, effective on the date the policy would have otherwise
been cancelled or non-renewed, in the event the insured has not paid the
outstanding premium due.
2.
Insurers or Health Maintenance Organizations subject to the notice provisions
of Sections 627.6645(5) and
641.3108(2),
F.S., respectively, may issue notices of cancellation that comport with those
sections that specify no cancellation shall take place prior to the date
specified in the Order.
(i) No policy shall be cancelled or
non-renewed solely because of a claim resulting from a hurricane or natural
disaster.
(j) An insurer's offer of
replacement coverage, which is voluntarily accepted by an insured or made
pursuant to other arrangement approved by the Office does not constitute a
nonrenewal or cancellation for purposes of this rule.
(k) Any insurer who receives a claim from an
insured owing premium may offset the premium due to the insurer or a premium
finance company from any claim payment made under the policy.
(l) Nothing in this rule shall be construed
to exempt or excuse an insured from liability for premiums otherwise due for
actual coverage provided.
(m) This
rule shall not apply to new policies effective on or after the initial
activation date specified in the Order.
(n) If the contract of insurance was financed
by a premium finance company for persons located in the specified areas, the
following provisions apply:
1. Premium finance
companies may issue advisory 10-day notices of intent to cancel and
cancellation notices in accordance with the terms of the premium finance
agreement signed by the insured. In addition, each such advisory notice shall
prominently contain the following statement:
"If you have been displaced through the loss of your home or
damage to your home which has caused you to reside elsewhere on a temporary
basis, or if you have temporarily become unemployed due to the destruction
caused by Hurricane [name of hurricane or natural disaster], please contact
this office at once.
Victims of Hurricane [name of hurricane or natural disaster]
will receive an automatic extension of time to and including [date specified in
the Order], to bring their accounts up to date and no late charges will be
applied to any late payments received which were due on their accounts during
the period of the dates specified in the Order.
Therefore, if you are a victim of Hurricane [name of
hurricane or natural disaster], please contact us at once at the number
provided at the bottom of this notice so that we may advise you of the status
of your account.
If you decide that you no longer need or desire to keep the
coverage provided by the insurance policy financed by your contract with us,
please contact us at once so that we may instruct you on how to effect
cancellation with your insurer."
2. If a premium finance loan is in default at
the end of the grace period, a premium finance company shall give proper notice
by:
a. Issuing a 10 day notice of intent to
cancel to the insured by the means provided under Section 627.848(1)(a)1.,
F.S., and applicable regulations; and,
b. If the insured does not bring their loan
current within the time provided in the notice of intent, a premium finance
company may mail the insurer a request for cancellation as provided in Section
627.848(1)(a)2., F.S.
3.
Upon receipt of a request for cancellation from a premium finance company after
the grace period specified in an Emergency Order expires, the insurer will
process the cancellation in accordance with paragraph (3)(h).
4. Any insurer who is unable to cancel
because it has received a claim under a policy for which it receives a notice
of cancellation from a premium finance company will offset the balance owed the
premium finance company, as disclosed in the notice of cancellation, from the
first claim payments made under the policy.
5. No late charges shall be assessed for any
insured who qualifies for protection under this rule.
(o) This rule shall not apply to life
insurance policies or annuity contracts that are owned by a person other than
the insured or the annuitant or where the premium payer under such policy is a
person other than the insured or annuitant and such owner or premium payer does
not reside in the referenced areas.
(p) Any insurer that becomes impaired or
insolvent due to a hurricane or natural disaster or the operation of subsequent
rules and orders has a duty to report the resulting financial condition to the
Office as soon as possible. Notwithstanding any other provisions contained
herein, an insurer may file a petition pursuant to Section
120.542, F.S. if compliance with
this rule may be reasonably expected to result in such insurer being subject to
financial regulatory action levels by the Office.
(q) The provisions of this rule shall be
liberally construed to effectuate the intent and purposes expressed therein and
to afford maximum consumer protection.
This subsection does not apply to major medical health
insurance policies subject to regulation by the Patient Protection and
Affordable Care Act, Pub.
L. No. 111-148, as amended by the Health Care and
Education Reconciliation Act of 2010,
Pub. L. No.
111-152, and regulations adopted pursuant to those
acts, to the extent this requirement would result in a violation of federal
law.
Rulemaking Authority 624.308, 627.7019 FS. Law Implemented
624.307(1), 624.319, 624.424, 627.7019
FS.
New 6-12-07, Amended 7-30-17,
2-22-21.
