SB 708 Includes July 1 Effective Dates
Senate Bill 708, now Chapter Law 2014-86, is perhaps best known for the Homeowners Claims Bill of Rights that personal lines residential insurers will be required to send to policyholders within 14 days of receiving claims. However, the Bill of Rights requirement does not take effect until October 1, 2014. In the meantime, other aspects of the bill become effective as of July 1.
As of July 1, a residential property insurer cannot deny a claim on a policy that is in effect more than 90 days based upon credit information available in public records. Similarly, an insurer cannot cancel or terminate a policy in effect more than 90 days based on credit information in public records.
In addition, the new law creates grounds upon which an insurer or policyholder can challenge the impartiality of umpires in the appraisal process. The law also gives the Department of Financial Services authority to deny applications from neutral evaluators, or to suspend or revoke existing certifications, for several reasons relating to their qualifications or conduct.