Title: Assignment of Property Insurance Benefits

Summary: Defines term "assignment agreement"; specifies assignee requirements; requires assignee to meet certain conditions before filing suit; provides acceptance of assignment agreement constitutes waiver of certain claims.

Full Text:
An act relating to the assignment of property insurance benefits; creating s. 627.7152, F.S.; defining the term "assignment agreement"; specifying requirements for an assignee; requiring an assignee to meet certain requirements as a condition precedent to filing suit under a policy; providing that acceptance of an assignment agreement constitutes a waiver of certain claims; providing applicability; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 627.7152, Florida Statutes, is created to read: 627.7152 Assignment of property insurance post-loss benefits.-(1) As used in this section, the term "assi gnment agreement" means any instrument by which post-loss property insurance benefits for services to protect, repair, restore, or replace property, or to mitigate against further damage to property, are assigned, transferred, or conveyed, regardless of how named or styled. (2) As to claims arising under an assignment agreement, the failure to comply with any provision of this subsection HB 2019 creates a presumption that the insurer is prejudiced by such failure to comply and shifts the burden in any proceeding or suit to the party seeking benefits, rights, or proceeds from the insurer to demonstrate that the insurer was not prejudiced. The assignee or transferee must do all of the following: (a) Maintain records of all services provided under the assignment ag reement; (b) Cooperate with the insurer in the investigation of a claim; (c) Provide the insurer with any and all records and documents requested by the insurer related to services provided within business days of the assignee's receipt of a written request and permit the insurer to make copies of such records or documents as may be reasonably necessary; (d) Deliver a copy of the executed assignment agreement to the insurer no later than business days after the assignment agreement is executed by all named insureds; and (e) Concurrently with any request for payment of benefits under the insurance policy, provide the insurer with a written, itemized, per-unit cost statement of services actually performed pursuant to the assignment agreement. (3) As to claims arising under an assignment agreement, an assignee must, as a condition precedent to filing a suit under the policy: (a) If required by the insurer, submit to examinations HB 2019 under oath and recorded statements conducted by the insurer or the insurer's representative which are limited to matters related to the services provided, the costs of services, and the assignment or transfer; and (b) Participate in an appraisal or other alternative dispute resolution method in accordance with the terms of the policy. (4) An activity in compliance with subsections (2) and (3) does not constitute practice as a public adjuster pursuant to part VI of chapter 626. (5) Notwithstanding any other law, the acceptance by a person of any assignment agreement co nstitutes a waiver by the assignee, and any subcontractor of the assignee or transferee, of any and all claims against all named insureds for payment arising from the specified loss, except that all named insureds remain responsible for the payment of any deductible amount provided for by the terms of the insurance policy and for the cost of any betterment ordered by all named insureds. This waiver remains in effect notwithstanding any subsequent determination that the assignment agreement is invalid. (6) This section applies to assignment agreements that are executed after July 1, 2019. Section 2. This act shall take effect July 1, 2019.