The period of time that an insurer has to contact an insured after notice of a request to have a neutral evaluation of a sinkhole claim is increased from 3 days to 5 days. The amendment also clarifies that failure to comply with the 5-day ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Consumer Services

RULE NOS.:RULE TITLES:

69J-8.008Selection of Neutral Evaluator

69J-8.009Evaluation Process

69J-8.011Neutral Evaluator's Report

PURPOSE AND EFFECT: The period of time that an insurer has to contact an insured after notice of a request to have a neutral evaluation of a sinkhole claim is increased from 3 days to 5 days. The amendment also clarifies that failure to comply with the 5-day requirement does not invalidate a party’s right to neutral evaluation or to disqualify proposed evaluators without cause.

SUMMARY: An insurer must contact a policyholder or the policyholder agent within five (5) days of notification of a request for neutral evaluation of a sinkhole insurance claim. However, failure to comply with the five (5) day time limit does not negate the insurer’s right to neutral evaluation or its right to disqualify evaluators.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The agency has performed an analysis and found the impact is not significant because the amounts of insurance required are not changing from what was previously required on the now repealed form.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 627.7074(18) FS.

LAW IMPLEMENTED: 627.7074 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: January 28, 2016, 10:30 a.m.

PLACE: Conference Room 142, Larson Bldg., 200 East Gaines Street, Tallahassee

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Tasha Carter, telephone: [phone], e-mail: [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Tasha Carter, Director, Division Consumer Services, Department of Financial Services, address: 200 East Gaines Street, Room 518A, Larson Building, Tallahassee Florida 32399-0321, telephone: [phone], email: [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69J-8.008 Selection of Neutral Evaluator.

(1) No change.

(2) The insurer shall contact the policyholder or its representative, and the parties shall attempt to reach an agreement on selection of a neutral evaluator. The insurer shall contact the policyholder or its representative to attempt to reach an agreement in writing within 5 3 business days upon receipt of the notification of the date notified of the neutral evaluation request. The insurer shall provide a copy of its written correspondence to the Department department at the same time written contact is made to the policyholder or its representative. If the parties come to mutual agreement on the selection of a neutral evaluator, both parties shall so inform the Department department, in writing, by emailing such information to the following email address: [e-mail]. Failure of the insurer to contact the policyholder or its representative in writing within 5 business days does not invalidate either party’s right to neutral evaluation or to disqualify evaluators with or without cause.

(3) through (9) No change.

Rulemaking Authority 627.7074(18) FS. Law Implemented 627.7074 FS. History–New 11-4-07, Amended 12-26-13, 7-27-15, __________.

 

69J-8.009 Evaluation Process.

(1) No change.

(2) The evaluation proceeding shall take the form of an informal conference, and shall not be subject to rules of procedure or evidence applicable in a court or administrative proceeding. The neutral evaluator, all approved professionals utilized in accordance with subsection 627.7074(11), F.S., and all representatives of the parties must be allowed reasonable access to the interior and exterior of insured structures to be evaluated or for which a claim has been made.

(3) through (9) No change.

Rulemaking Authority 627.7074(18) FS. Law Implemented 627.7074 FS. History–New 11-4-07, Amended 12-26-13, 7-27-15, ___________.

 

69J-8.011 Neutral Evaluator’s Report.

Within 14 days after the conclusion of the conference, the neutral evaluator shall submit a report which shall contain the information required by subsection 627.7074(2), F.S. The neutral evaluator shall complete the Neutral Evaluator’s Report, Form Number DFS-I4-1785, http://www.flrules.org/Gateway/reference.asp?No=Ref-03424 (Revised: 11/2015) (Revised: 10/2013), online at the following website: http://www.myfloridacfo.com/Division/Consumers/understandingCoverage/Guides/documents/NeutralEvaluatorReportDFS-I4-1785.pdf, which is hereby incorporated by reference. Once the neutral evaluator has completed the report, the neutral evaluator shall print the report and provide it to the parties within the required 14 days.

Rulemaking Authority 627.7074(18) FS. Law Implemented 627.7074 FS. History–New 11-4-07, Amended 12-26-13, _________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Tasha Carter

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer, Department of Financial Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 7, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 28, 2015