Title: Assignment of Benefits for Surplus Lines Insurers

Summary: Provides that prohibition against assignment of post-loss insurance benefits applies to residential & commercial property insurance policies issued by authorized insurers & eligible surplus lines insurers on or after specified date.

Full Text:
An act relating to assignment of benefits for surplus lines insurers; amending s. 627.7152, F.S.; providing that the prohibition against assignment of post-loss insurance benefits applies to residential and commercial property insurance policies issued by authorized insurers and eligible surplus lines insurers on or after a specified date; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Subsection (13) of section 627.7152, Florida Statutes, is amended, and subsection (11) of that section is republished, to read: 627.7152 Assignment agreements.-(11) This section does not apply to: (a) An assignment, transfer, or conveyance granted to a subsequent purchaser of the property with an insurable interest in the property following a loss; (b) A power of attorney under chapter that grants to a management company, family member, guardian, or similarly situated person of an insured the authority to act on behalf of an insured as it relates to a property insurance claim; or (c) Liability coverage under a property insurance policy. CS/HB 1191 2024 (13)(a) Except as provided in subsection (11), a policyholder may not ass ign, in whole or in part, any post-loss insurance benefit under any residential property insurance policy or under any commercial property insurance policy as that term is defined in s. 627.0625(1), issued on or after January 1, 2023. An attempt to assign post-loss property insurance benefits under such a policy is void, invalid, and unenforceable. (b) In addition to residential property insurance policies and commercial property insurance policies issued by authorized insurers, the prohibition under para graph (a) also applies to residential property insurance policies and commercial property insurance policies issued by an eligible surplus lines insurer on or after July 1, 2024. Section 2. This act shall take effect July 1, 2024.