FL S1240

Reduces the timeframe for insurers to pay or deny property insurance claims from 60 days to 30 days after receiving notice, with interest accruing on late payments and an additional equal interest penalty if full payment is not made within 90 days

Prohibits insurers from imposing policy conditions not authorized by the insurance code unless approved by the Office of Insurance Regulation; unauthorized conditions are void and unenforceable

Requires insurers to provide clear written disclosure of any non-statutory policy provisions in plain language, including a mandatory notice informing policyholders of their right to cancel within 10 days at no cost

Expands requirements for reservation of rights notices from liability insurers, mandating they include specific factual issues, plain language explanations, documentation needed, investigative timelines, and any fraud concerns

Strengthens claims explanation requirements, mandating insurers provide clear written reasoning that applies policy provisions to claim facts rather than merely reciting policy language