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Notice of Change Statute Changed

Notice of Change Statute Changed

The legislature made two key changes to Section 627.43141 relating to the Notice of Change in Policy Terms.  These changes, set forth in HB 273, passed in the 2015 legislative session and now have been approved by the Governor.  They are reflected in Chapter Law 2015-170.

The statute has been troubling to insurers because it has suggested that sending a Notice of Change with the renewal premium notice is the only manner in which an insurer may deliver the notice.  The new law addresses this by alternatively allowing an insurer to send the Notice of Change separately as long as it is sent with the same amount of notice that would apply to a nonrenewal.

The statutory changes also provide that an insurer cannot use the Notice of Change to add an optional coverage that increases the policy premium unless the policyholder has affirmatively consented to the coverage.

The changes take effect July 1, 2015.