FL S1536

Requires mortgagees or assignees holding insurance proceeds pending completion of damage repairs to notify insureds of each requirement the insured must fulfill for release of the proceeds.

Notice must be delivered by written or electronic means no later than the 10th business day after the mortgagee or assignee endorses the check, draft, or other negotiable instrument for the proceeds.

Maintains existing requirement that insurance proceeds relating to property or contents damage be promptly deposited into a segregated account at a federally insured financial institution.

Does not prevent insurance companies from paying insureds directly for additional living expenses or contents insurance coverage when the mortgagee or assignee has no security interest.

Effective July 1, 2023.