The proposed amendments will implement the changes made to Section 627.7015, F.S., by Section 35 of CS/CS/HB 487 in 2023, which revised the statutes governing alternative dispute resolution procedures, including mediation, ....

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-166.031Mediation of Property Insurance Claims

PURPOSE AND EFFECT: The proposed amendments will implement the changes made to Section 627.7015, F.S., by Section 35 of CS/CS/HB 487 in 2023, which revised the statutes governing alternative dispute resolution procedures, including mediation, for disputed property insurance claims. The amendments remove language from Rule 69O-166.031, F.A.C., that is now obsolete and replaces language regarding fine amounts with a reference to the controlling statute.

SUMMARY: Rule 69O-166.031, F.A.C., is being amended to remove portions of the rule that became obsolete due to changes made to Section 627.7015, F.S., by Section 35 of CS/CS/HB 487 in 2023, and to replace language regarding fine amounts with a reference to the controlling statute.

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.

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: 624.308(1), 627.7015(4), FS.

LAW IMPLEMENTED: 624.307(1), 624.418(2)(a), 624.421(1)(a), 624.4211, 626.9541(1)(i), 626.9581(1), 627.7015, FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Kama Monroe, Assistant General Counsel, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-166.031 Mediation of Property Insurance Claims.

(1) All insurers subject to Section 627.7015, F.S., shall comply with Rule 69J-166.031, F.A.C., administered by the Department of Financial Services. A violation of Rule 69J-166.031, F.A.C., is a violation of this rule and accordingly a violation of a rule of the Commission.

(2) If the insurer fails to appear at the conference without good cause the insurer shall pay the insured’s actual cash expenses incurred in attending the conference and shall pay the mediator’s fee for the rescheduled conference. Good cause here includes severe illness, injury, or other emergency which could not be controlled by the insurer and could not reasonably be remedied by the insurer prior to the conference by providing a replacement representative or otherwise. If an insurer fails to appear at conferences with such frequency as to evidence a general business practice of failure to appear, the insurer shall be subject to penalty including revocation, suspension, or a fine as specified in Section 624.4211, F.S. fine, for violation of Section 626.9541(1)(i), F.S. Such suspension of an insurer’s certificate of authority shall be for a period of 2 years. An administrative fine shall be in the amount of $2,500 per violation in cases of non-willful violation, and $20,000 per violation in cases of a knowing and willful violation. The office will mitigate these penalties based upon the following factors: Solvency of the insurer, best interests of or potential harm to insureds, and willfulness of the violation.

Rulemaking Authority 624.308(1), 627.7015(4) FS. Law Implemented 624.307(1), 624.418(2)(a), 624.421(1)(a), 624,4211(1)-(3), 626.9541(1)(i), 626.9581(1), 627.7015 FS. History–New 8-18-94, Amended 5-1-96, 4-6-00, Formerly 4-166.031, Amended 11-3-15, _________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Kama Monroe, Assistant General Counsel

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 18, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 24, 2023