The proposed amendments will update subparagraphs (4)(a)1. of both rules to conform with changes made by Chapter 2012-151, Laws of Florida, and the opinion of the Third District Court of Appeal in Fernando Subirats v. Fidelity National Property, 106 ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Consumer Services

RULE NOS.:RULE TITLES:

69J-166.002Mediation of Commercial Residential Property Insurance Claims

69J-166.031Mediation of Residential Property Insurance Claims

PURPOSE AND EFFECT: The proposed amendments will update subparagraphs (4)(a)1. of both rules to conform with changes made by Chapter 2012-151, Laws of Florida, and the opinion of the Third District Court of Appeal in Fernando Subirats v. Fidelity National Property, 106 So. 3d 997 (Fla. 3rd DCA 2013).

SUMMARY: Subparagraphs (4)(a)1. of both rules are changed to provide that the insurer must give the policyholder notice of their right to participate in the mediation program at the time the first-party claim is filed by the policyholder. The proposed amendments also substitute the word “policyholder” for “insured.”

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 Department conducted an economic analysis of the potential impact of the proposed changes and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

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), 626.9611, 627.7015(4) FS.

LAW IMPLEMENTED: 624.307(1), (2), (4), (5), 626.9541(1)(a), (e), (i), (u), 626.9561, 626.9581(1), 626.9641(1)(g), 627.7015 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: December 3, 2013, 10:00 a.m.

PLACE: Room 142, Larson Building, 200 E. Gaines Street, Tallahassee, FL

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 five days before the workshop/meeting by contacting: Tasha Carter at [phone] or [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 of Consumer Services, 200 E. Gaines Street, Tallahassee, FL 32399, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69J-166.002 Mediation of Commercial Residential Property Insurance Claims.

(1) through (3) No change.

(4) Claim Settlement.

(a) Notification of the right to mediate.

1. At the time Within five days of the insurer receiving a first-party claim which falls within the scope of this rule is filed by the policyholder, the insurer shall notify the policyholder insured of their right to participate in this program. An insurer is not required to send a notice of the right to mediate disputed claims when no payment has been made on a claim because the insurer concludes the amount of covered damages is less than the policyholder’s insured’s deductible.

(4)(a)2. through 4. No change.

(4)(b) through (c) No change.

(5) through (12) No change.

Rulemaking Authority 624.308(1), 626.9611, 627.7015(4) FS. Law Implemented 624.307(1), (2), (4), (5), 626.9541(1)(a), (e), (i), (u), 626.9561, 626.9581(1), 626.9641(1)(g), 627.7015 FS. History–New 8-30-09, Amended __________.

 

69J-166.031 Mediation of Residential Property Insurance Claims.

(1) through (3) No change.

(4) Claim Settlement.

(a) Notification of the right to mediate.

1. At the time Within five days of the insured filing a first-party claim which falls within the scope of this rule is filed by the policyholder, the insurer shall notify the policyholder insured of their right to participate in this program. An insurer is not required to send a notice of the right to mediate claims when no payment has been made for a covered loss because the insurer concludes the amount of covered loss is less than the policyholder’s insured’s deductible.

(4)(a)2. through 4. No change.

(4)(b) through (c) No change.

(5) through (12) No change.

Rulemaking Authority 624.308(1), 626.9611, 627.7015(4) FS. Law Implemented 624.307(1), (2), (4), (5), 626.9541(1)(a), (e), (i), (u), 626.9561, 626.9581(1), 626.9641(1)(g), 627.7015 FS. History–New 8-18-94, Amended 5-1-96, 4-6-00, Formerly 4-166.031, 69B-166.031, Amended 9-24-09,__________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Tasha Carter, Director, Division of Consumer Services

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 4, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 27, 2013