Florida SB 1240: Mental Health of Students

Bill Text

1240 
Insurance Regulation 
2026-01-06T10:54:23Z 
Making clarifying changes regarding the definition of residential coverage; prohibiting insurers from imposing or enforcing certain policy conditions or requirements; revising the conditions under which liability insurers may deny coverage based on a particular coverage defense; revising the timeframe in which insurers must pay or deny claims, etc. 
Original Filed Version 
2026 
S 
2026-07-01T00:00:00Z 
GB 
General Bill 
__ 

 Florida Senate - 2026 SB 1240 

 By Senator Davis 

 5-01562-26 20261240__ 
 1 A bill to be entitled 
 2 An act relating to insurance regulation; amending s. 
 3 627.4025, F.S.; making clarifying changes regarding 
 4 the definition of residential coverage; amending s. 
 5 627.418, F.S.; prohibiting insurers from imposing or 
 6 enforcing certain policy conditions or requirements; 
 7 providing an exception; specifying that such 
 8 conditions or requirements are void; requiring 
 9 insurers to make certain disclosures and allow the 
 10 insured to cancel the policy under certain 
 11 circumstances; amending s. 627.426, F.S.; revising the 
 12 conditions under which liability insurers may deny 
 13 coverage based on a particular coverage defense; 
 14 amending s. 627.70131, F.S.; revising the timeframe in 
 15 which insurers must pay or deny claims; revising 
 16 requirements for the explanation for the payment, 
 17 denial, or partial payment; specifying that insurers 
 18 have an obligation to pay a specified amount under 
 19 certain circumstances; authorizing the Department of 
 20 Financial Services to enforce such obligation; making 
 21 a clarifying change regarding interest payments; 
 22 providing an effective date. 
 23 
 24 Be It Enacted by the Legislature of the State of Florida: 
 25 
 26 Section 1. Subsection (1) of section 627.4025, Florida 
 27 Statutes, is amended to read: 
 28 627.4025 Residential coverage and hurricane coverage 
 29 defined.— 
 30 (1) Residential coverage includes both personal lines and 
 31 commercial lines coverage. Personal lines residential coverage 
 32 includes residential coverage, which consists of the type of 
 33 coverage provided by homeowner, mobile home owner, dwelling, 
 34 tenant, condominium unit owner, cooperative unit owner, and 
 35 similar personal lines residential policies., and Commercial 
 36 lines residential coverage includes, which consists of the type 
 37 of coverage provided by condominium association, cooperative 
 38 association, apartment building, and similar commercial lines 
 39 residential policies, including policies covering the common 
 40 elements of a homeowners association. Residential coverage for 
 41 personal lines and commercial lines as set forth in this section 
 42 includes policies that provide coverage for particular perils 
 43 such as windstorm and hurricane or coverage for insurer 
 44 insolvency or deductibles. 
 45 Section 2. Subsection (3) is added to section 627.418, 
 46 Florida Statutes, to read: 
 47 627.418 Validity of noncomplying contracts.— 
 48 (3) An insurer may not impose or enforce any policy 
 49 condition or requirement that is not authorized by this 
 50 insurance code unless the condition or requirement has been 
 51 submitted to and approved by the office. Any such unauthorized 
 52 condition or requirement is void and unenforceable. If a policy 
 53 contains any condition or requirement not authorized by this 
 54 insurance code but approved by the office, the insurer must 
 55 clearly disclose such provision to the insured at the time of 
 56 issuance along with necessary definitions to understand the 
 57 provisions of the policy and the steps required for compliance 
 58 with the provisions of the policy, using plain language, and 
 59 must allow the insured to cancel the policy within 10 days after 
 60 receipt at no cost. The disclosure must include the following 
 61 notice, printed in bold type: 
 62 
 63 IMPORTANT NOTICE: SOME PROVISIONS IN THIS POLICY ARE 
 64 NOT ESTABLISHED BY FLORIDA STATUTES. FAILURE TO MEET 
 65 THESE CONTRACTUAL REQUIREMENTS MAY AFFECT YOUR 
 66 COVERAGE OR RESULT IN CLAIM DELAY OR DENIAL. YOU HAVE 
 67 RIGHTS UNDER FLORIDA LAW. YOU MAY CANCEL THIS POLICY 
 68 WITHIN 10 DAYS AFTER RECEIPT AT NO COST. 
 69 Section 3. Subsection (2) of section 627.426, Florida 
 70 Statutes, is amended to read: 
 71 627.426 Claims administration.— 
 72 (2) A liability insurer may shall not be permitted to deny 
 73 coverage based on a particular coverage defense unless all of 
 74 the following conditions are met: 
 75 (a)1. Within 30 days after the liability insurer knew or 
 76 should have known of the coverage defense, written notice of 
 77 reservation of rights to assert a coverage defense is given to 
 78 the named insured by United States postal proof of mailing, 
 79 registered or certified mail, or other mailing using the 
 80 Intelligent Mail barcode or other similar tracking method used 
 81 or approv