SB 1340 - Insurance Legislation Summary

• Requires property insurers to conduct market conduct examinations after hurricanes for top performers based on claims ratios and complaints, rather than permitting them at discretion.

• Prohibits homeowners' and commercial property insurers from canceling, nonrenewing, or terminating policies during pending claims except for nonpayment of premium.

• Increases minimum surplus requirements for residential property insurers: from $15 million to $30 million for insurers without certificates before July 1, 2011, and to $30 million by July 1, 2023 for existing insurers.

• Expands unfair claim settlement practices to include compelling litigation through inadequate settlement offers, altering adjuster estimates without approval, failing to provide complete claim documents within 10 business days, and assigning three or more adjusters within six months on natural disaster claims.

• Eliminates the requirement that Citizens Property Insurance Corporation policyholders prove water damage was not caused by flooding; requires detailed annual reporting on closed claims by all property insurers and the Corporation.

• Restricts appraisal provisions to require claimant consent, prohibits invoking appraisal after lawsuit filing, and prevents application of roof deductibles to other losses from the same covered peril.

• Requires 48-hour notice before property inspections for insurance purposes and prohibits homeowners' insurance binders from requiring additional repairs or premium increases before policy issuance.