Here is the first bill regarding Assignment of Benefits for the 2018 Florida Legislative Session – Senate Bill 62. Keep in mind, this is only a filed bill in the Senate. There have been no votes or meetings on this bill.

The entire text is set forth below and I have highlighted some important language:

Florida Senate2018                                    SB 62

By Senator Hukill

14-00042-18                                             201862__

1                       A bill to be entitled

2         An act relating to the assignment of property

3         insurance benefits; creating s. 627.7152, F.S.;

4         defining the term “assignment agreement”; prohibiting

5         certain awards of attorney fees to certain persons or

6         entities in suits based on claims arising under

7         property insurance policies; providing that an

8         assignment agreement is not valid unless specified

9         requirements are met; prohibiting certain provisions

10         in an assignment agreement; specifying requirements

11         for an assignee or transferee; requiring an assignee

12         to meet certain requirements as a condition precedent

13         to filing suit under a policy; providing construction;

14         providing applicability; providing an effective date.


16 Be It Enacted by the Legislature of the State of Florida:


18         Section 1. Section 627.7152, Florida Statutes, is created

19 to read:

20         627.7152 Assignment of property insurance post-loss

21 benefits.—

22         (1) As used in this section, the term “assignment

23 agreement” means any instrument by which post-loss property

24 insurance benefits for services to protect, repair, restore, or

25 replace property, or to mitigate against further damage to

26 property, are assigned, transferred, or conveyed, regardless of

27 how named or styled.

28         (2) Notwithstanding any other law, as to suits based on

29 claims arising under property insurance policies, attorney fees

30 may not be awarded under s. 626.9373 or s. 627.428 in favor of

31 any person or entity seeking relief against the insurer pursuant

32 to an assignment agreement.

33         (3) An assignment agreement is not valid unless it meets

34 all of the following requirements:

35         (a) The assignment agreement is in writing and is executed

36 by all named insureds;

37         (b) The assignment agreement contains a provision that

38 permits all named insureds to rescind the assignment agreement

39 without any penalty or rescission or cancellation fee within 7

40 business days after the date the assignment agreement is

41 executed by all named insureds;

42         (c) The assignment agreement contains a provision requiring

43 the assignee or transferee to provide a copy of the executed

44 assignment agreement to the insurer no later than 3 business

45 days after the assignment agreement is executed by any named

46 insured; and

47         (d) The assignment agreement contains a written, itemized,

48 per-unit cost estimate of the work to be performed by the

49 assignee or transferee.

50         (4) The following provisions may not be included in an

51 assignment agreement and are deemed to be invalid and

52 unenforceable against the property insurer or named insureds:

53         (a) A penalty or fee for rescission of the assignment

54 agreement pursuant to subsection (3);

55         (b) A check or mortgage processing fee;

56         (c) A penalty or fee for cancellation of the assignment

57 agreement pursuant to subsection (3); or

58         (d) An administrative fee.

59         (5) As to claims arising under an assignment agreement, the

60 failure to comply with any provision of this subsection creates

61 a presumption that the insurer is prejudiced by such failure to

62 comply and shifts the burden in any proceeding or suit to the

63 party seeking benefits, rights, or proceeds from the insurer to

64 demonstrate that the insurer was not prejudiced. The assignee or

65 transferee must do all of the following:

66         (a) Maintain records of all services provided under the

67 assignment agreement;

68         (b) Cooperate with the insurer in the investigation of a

69 claim;

70         (c) Provide the insurer with any and all records and

71 documents requested related to services provided and permit the

72 insurer to make copies;

73         (d) Deliver a copy of the executed assignment agreement to

74 the insurer no later than 3 business days after the assignment

75 agreement is executed by all named insureds; and

76         (e) Concurrently with any request for payment of benefits

77 under the insurance policy, provide the insurer with a written,

78 itemized, per-unit cost statement of services actually performed

79 pursuant to the assignment agreement.

80         (6) As to claims arising under an assignment agreement, an

81 assignee must, as a condition precedent to filing a suit under

82 the policy:

83         (a) If required by the insurer, submit to examinations

84 under oath and recorded statements conducted by the insurer or

85 the insurer’s representative which are limited to matters

86 related to the services provided, the costs of services, and the

87 assignment or transfer; and

88         (b) Participate in an appraisal or other alternative

89 dispute resolution method in accordance with the terms of the

90 policy.

91         (7) An activity in compliance with subsections (5) and (6)

92 does not constitute practice as a public adjuster pursuant to

93 part VI of chapter 626.

94         (8) Notwithstanding any other law, the acceptance by a

95 person of any assignment agreement constitutes a waiver by the

96 assignee or transferee, and any subcontractor of the assignee or

97 transferee, of any and all claims against all named insureds for

98 payment arising from the specified loss, except that all named

99 insureds remain responsible for the payment of any deductible

100 amount provided for by the terms of the insurance policy and for

101 the cost of any betterment ordered by all named insureds. This

102 waiver remains in effect notwithstanding any subsequent

103 determination that the assignment agreement is invalid or the

104 rescission of the assignment agreement by all named insureds.

105         (9) This section does not permit an assignment agreement to

106 modify or eliminate any term, condition, or defense relating to

107 any managed repair arrangement provided for in the insurance

108 policy to which the assignment agreement relates.

109         (10) This section does not apply to:

110         (a) An assignment, transfer, or conveyance granted to a

111 subsequent purchaser of property who acquires an insurable

112 interest in the property following a loss;

113         (b) A power of attorney granted to a management company,

114 family member, guardian, or similarly situated person which

115 complies with chapter 709 and which may include, as part of the

116 authority granted, the authority to act on behalf of a principal

117 as it relates to a property insurance claim; or

118         (c) Liability coverage under a property insurance policy.

119         (11) This section applies to assignment agreements that are

120 executed after July 1, 2018.

121         Section 2. This act shall take effect July 1, 2018.