Florida Statutes, Rules and Regulations Pertinent to Property and Casualty — practice questions

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Hurricane deductibles, claim deadlines, presuit notice, bad faith, UM and no-fault — about 24 of the 160 scored questions, tied for the largest domain. Nearly every figure here was touched between 2021 and 2023, and the wrong answer is almost always the pre-reform rule.

Where people lose points

• Crediting the wrong special session. SB 2-D (ch. 2022-268, May 2022) created the separate roof deductible in s. 627.701(10), F.S. and the roof-age underwriting limits in s. 627.7011(5), F.S. SB 2-A (ch. 2022-271, December 2022) is the one that cut the claim-notice bar dates in s. 627.70132, F.S. to 1 year and 18 months and voided post-loss assignment of benefits under s. 627.7152(13), F.S. for policies issued on or after January 1, 2023.
• Still expecting one-way attorney fees. HB 837 (ch. 2023-15) repealed ss. 627.428 and 626.9373, F.S. What replaced them is deliberately narrow: s. 86.121, F.S. awards fees only to a named insured, omnibus insured or named beneficiary who obtains a declaratory judgment on coverage after a total coverage denial, and the right cannot be assigned. Narrower still: s. 86.121(2) excludes any action arising under a residential or commercial property insurance policy, so on the property side nothing replaced the one-way fee at all.
• Blurring the two bad-faith clocks. Section 624.155(3), F.S. makes the civil remedy notice a condition precedent and gives the insurer 60 days to pay the damages or correct the circumstances. Section 624.155(4), F.S., added by HB 837, is a separate 90-day safe harbour: tender the lesser of the policy limits or the amount demanded within 90 days of actual notice supported by sufficient evidence and no bad-faith action lies at all.
• Getting the hurricane window backwards. Under s. 627.4025(2)(c), F.S. the hurricane occurrence begins only when a hurricane WARNING is issued for any part of Florida, but it does not end until 72 hours after the last hurricane WATCH OR WARNING for any part of Florida is terminated. A watch alone never starts the clock; a watch alone is enough to hold it open at the tail end.
• Skipping the presuit notice. Section 627.70152, F.S. makes a notice of intent to initiate litigation, filed with the Department of Financial Services on the department's system at least 10 business days before suit, a condition precedent — and it may not be filed before the insurer has made a coverage determination under s. 627.70131, F.S. The insurer must respond in writing within 10 business days.
• Accepting an oral UM rejection. Section 627.727(1), F.S. attaches uninsured motorist coverage at the bodily injury liability limits purchased unless the named insured rejects it or elects lower limits in writing on a form approved by the Office; a named insured's signature on that form is conclusively presumed to be an informed, knowing rejection on behalf of all insureds. Non-stacked coverage under s. 627.727(8) — renumbered from the old subsection (9) by the 2023 reform — requires a filed premium reduction of at least 20%.

Questions and answers, explained

All 10 questions above, with the correct answer and why it is correct. Everything here is on florida statutes, rules and regulations pertinent to property and casualty.

1. A homeowner replaces her roof covering to current code, adds secondary water resistance, and installs impact-rated windows and doors. She asks her agent what her insurer is obligated to do at renewal. The correct answer is that the insurer must:

   • AProvide actuarially reasonable discounts, credits, or other rate differentials for the mitigation features she installedCorrect
   • BReduce her hurricane deductible to $500 at the next renewal
   • CReduce her premium by a flat 10 percent, the discount set by statute
   • DNothing, because Florida mitigation credits are voluntary and vary by company

   Why: Section 627.0629, F.S., requires residential property insurance rate filings to include actuarially reasonable discounts, credits, or other rate differentials — or appropriate reductions in deductibles — for properties with fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm. Named categories include improved roof strength, roof covering performance, roof-to-wall strength, wall-to-floor-to-foundation strength, opening protection, and window, door, and skylight strength. The credit is actuarially determined for each filing rather than fixed by statute, which is why C is wrong, and it is mandatory rather than optional, which is why D is wrong. Insurers must also post hurricane mitigation discount information on their websites.

   Reference s. 627.0629, F.S.

2. A homeowner whose HO-3 policy was issued in March 2024 signs a document assigning her post-loss water damage benefits to a mitigation contractor. The document contains a 14-day rescission clause and an itemized estimate, and the contractor delivers a copy to the insurer within 3 business days. Is the assignment enforceable?

   • AYes, because it satisfies every content requirement for a valid assignment agreement
   • BYes, but only up to $3,000 or 1 percent of the policy limit for emergency mitigation services
   • CNo, because post-loss benefits under a residential property policy issued on or after January 1, 2023 may not be assignedCorrect
   • DNo, because the contractor failed to serve a notice of intent to initiate litigation

   Why: Section 627.7152(13), F.S., provides that a policyholder may not assign, in whole or in part, any post-loss insurance benefit under any residential or commercial property insurance policy issued on or after January 1, 2023, and that any such assignment is void, invalid, and unenforceable. Because this 2024 policy falls squarely inside that prohibition, the careful drafting described in the stem is irrelevant. The detailed content requirements — written agreement, 14-day rescission right, itemized estimate, delivery to the insurer within 3 business days, the bold-type consumer warning — still matter, but only for assignments under policies issued before that date. Option D describes the separate pre-suit notice requirement in s. 627.70152, F.S., which is a litigation prerequisite rather than a validity requirement.

   Reference s. 627.7152(13), F.S.

3. An attorney representing a homeowner is preparing to sue her residential property insurer over a disputed claim on which the insurer has already made a coverage determination. Under s. 627.70152, F.S., what must occur before the lawsuit may be filed?

   • AA demand for appraisal must be served on the insurer at least 20 days before filing suit
   • BThe claimant must first complete DFS mediation and obtain a written certificate of impasse
   • CNothing further, since that presuit notice requirement reaches only commercial property policies
   • DNotice of intent to initiate litigation must be filed with DFS at least 10 business days before suitCorrect

   Why: Section 627.70152, F.S., makes a written notice of intent to initiate litigation, filed with the Department of Financial Services on the department's form, a condition precedent to filing suit under a residential or commercial property insurance policy. The notice must be given at least 10 business days before suit, it may not be filed before the insurer has made a coverage determination under s. 627.70131, F.S., and the insurer must respond in writing within 10 business days of receiving it. Option A is the tempting one because appraisal is a real dispute-resolution route in property policies, but appraisal is a policy provision, not a statutory prerequisite to suit. One nuance about SB 2-A: what it repealed in December 2022 was the fee-AWARD formula in former subsection (8), not the fee calculation itself. Section 627.70152(2)(c), F.S., still defines the presuit settlement demand as one stating the claimant's reasonable and necessary attorney fees and costs, calculated by multiplying the number of hours actually worked on the claim as of the date of the notice by a reasonable hourly rate, and s. 627.70152(3)(a)5.a. still requires the demand to itemize the damages, attorney fees and costs.

   Reference s. 627.70152, F.S.

4. A Florida private passenger auto policy carries comprehensive coverage with a $500 deductible. A rock strikes the windshield on I-95 and the windshield must be replaced. How does the deductible apply to the windshield claim?

   • AIt applies in full, because a windshield is ordinary comprehensive glass damage
   • BIt applies at half value, because the statute halves deductibles on glass claims
   • CIt does not apply if the insured uses the insurer's preferred glass installer
   • DIt does not apply, because a comprehensive deductible cannot apply to a windshieldCorrect

   Why: Section 627.7288, F.S., states that the deductible provisions of any motor vehicle policy delivered or issued in Florida by an authorized insurer providing comprehensive coverage or combined additional coverage are not applicable to damage to the windshield. The insured therefore pays nothing toward the windshield replacement. Option C is the tempting distractor because insurers do maintain preferred glass networks, but the statutory waiver is unconditional and does not depend on which shop performs the work. Note the limits of the rule: it reaches the windshield specifically, not side or rear glass, and it applies only where comprehensive or combined additional coverage was purchased.

   Reference s. 627.7288, F.S.

5. A windstorm damages an insured home on May 4. The policyholder wants to know how long she has to give her insurer notice of the loss. Under s. 627.70132, F.S., what are the outside deadlines for an initial claim and for a supplemental claim?

   • A1 year after the date of loss for the initial claim, and 18 months for a supplemental claimCorrect
   • B2 years for the initial claim, and 3 years after the date of loss for a supplemental claim
   • C18 months for the initial claim, and 2 years after the date of loss for a supplemental claim
   • D3 years after the date of loss for both the initial claim and any supplemental claim

   Why: Section 627.70132, F.S., bars a claim, reopened claim, or supplemental claim under a property insurance policy unless notice was given to the insurer within 1 year after the date of loss, except that a supplemental claim gets 18 months after the date of loss. Since SB 2-A (December 2022) the bar date runs from the date of loss for damage caused by any peril, not just hurricane or windstorm. Option D is the trap: 3 years was the old hurricane and windstorm notice deadline and it still appears in study manuals printed before 2023. Keep this notice bar separate from the limitation period for suing: s. 95.11(2)(e), F.S., gives 5 years from the date of loss to file suit on a property insurance contract, but blowing the 1-year notice deadline defeats the claim long before the 5 years run out. Three years is not dead inside this statute, though: s. 627.70132(4), F.S., added by ch. 2024-139, sets 3 years after the date of loss as the outside limit for notice of a claim under a condominium or cooperative unit owner's loss assessment coverage, with an inner deadline of the later of 1 year after the date of loss or 90 days after the association votes to levy the assessment. That subsection does not reach a single-family dwelling claim like this one. Subsection (2) also tolls the 1-year and 18-month bars for a servicemember deployed to a combat zone.

   Reference s. 627.70132, F.S.

6. An insurer renews a homeowner's policy with a new exclusion added, but never sends a Notice of Change in Policy Terms. A loss then occurs that the new exclusion would bar. What is the effect?

   • AThe new exclusion applies, since the insured accepted the renewal policy as issued
   • BThe original policy terms remain in effect, so the new exclusion cannot be appliedCorrect
   • CThe exclusion applies, but the insurer owes the insured a full return of the premium
   • DThe renewal is void from inception and the risk must be placed with Citizens instead

   Why: Section 627.43141, F.S., defines a change in policy terms as the modification, addition, or deletion of any term, coverage, duty, or condition from the previous policy, and requires the insurer to give the named insured a Notice of Change in Policy Terms within the same timeframe the Insurance Code requires for a notice of nonrenewal on that line — 120 days for personal lines residential property under s. 627.4133(2). A sample must go to the agent before or at the same time. If the insurer fails to give proper notice, the statute says the original policy terms remain in effect until the next renewal and proper service of the notice, or until the effective date of replacement coverage the insured obtains, whichever comes first. Option A is the intuitive answer under ordinary contract acceptance principles, but the statute overrides them: silence by the insured does not cure the insurer's missing notice.

   Reference s. 627.43141, F.S.

7. After an at-fault crash involving bodily injury, a Florida driver must furnish proof of financial responsibility. What minimum liability limits satisfy s. 324.021(7), F.S.?

   • A$10,000 per person, $20,000 per crash bodily injury, and $10,000 property damageCorrect
   • B$25,000 per person, $50,000 per crash bodily injury, and $10,000 property damage
   • C$10,000 personal injury protection and $10,000 property damage liability only
   • D$15,000 per person, $30,000 per crash bodily injury, and $25,000 for property damage

   Why: Section 324.021(7), F.S., defines proof of financial responsibility as the ability to respond in damages of at least $10,000 for bodily injury to or death of one person in any one crash, $20,000 for bodily injury to or death of two or more persons in any one crash, and $10,000 for injury to or destruction of the property of others in any one crash — the familiar 10/20/10. Section 324.022(1), F.S., allows an alternative of a $30,000 combined single limit for bodily injury and property damage liability. Option C is the trap that catches most candidates because it is true of a different obligation: to register a vehicle in Florida a driver needs only $10,000 of PIP and $10,000 of property damage liability, with no bodily injury liability at all. Bodily injury limits become compulsory only when the financial responsibility law is triggered, such as after an at-fault crash causing injury or certain convictions.

   Reference ss. 324.021(7) and 324.022(1), F.S.

8. A Florida roofing contractor employs 2 workers. A retail shop down the street employs 3. Neither is an agricultural employer. Which of them must carry workers' compensation coverage?

   • AThe roofing contractor only, because construction employers are covered at 1 employeeCorrect
   • BThe retail shop only, because non-construction employers are covered at 3 employees
   • CBoth, because Florida requires coverage from the first employee in every industry
   • DNeither, because both fall below the 4-employee threshold applied to all employers

   Why: Section 440.02(20), F.S., defines employment to include all private employment in which four or more employees are employed by the same employer, and, with respect to the construction industry, all private employment in which one or more employees are employed by the same employer. A roofing contractor with 2 employees is therefore squarely covered, while a retail shop with 3 is not. Mind the numbering, because older manuals still cite the employment definition as s. 440.02(17); subsection (17) now defines a domestic individual self-insurer. Option B is the trap because it uses the right idea with the wrong number — the non-construction threshold is four employees, not three. Two related points frequently tested: sole proprietors and partners in the construction industry are treated as employees unless a valid exemption is on file, and agricultural labor is excluded only where a bona fide farmer employs 5 or fewer regular employees and fewer than 12 other employees at one time for seasonal agricultural labor completed in less than 30 days, provided that seasonal employment does not exceed 45 days in the same calendar year — a farm above those figures is back inside the act.

   Reference s. 440.02(20), F.S.

9. A policyholder's attorney intends to sue a residential property insurer over a disputed claim under the policy. Under s. 627.70152, F.S., what is the condition precedent to filing that suit?

   • ANotice of intent to initiate litigation must be served at least 10 business days before suitCorrect
   • BA demand for appraisal must be served and refused at least 20 business days earlier
   • CThe dispute must first go through department mediation, which both parties are required to attend
   • DNothing further, because the 2023 tort reform repealed this presuit notice requirement

   Why: Section 627.70152(3), F.S., makes written notice of intent to initiate litigation a condition precedent to filing suit under a residential or commercial property insurance policy. The notice must be served on the insurer at least 10 business days before suit, must be filed with the Department of Financial Services through the department's online system, and must state the alleged acts or omissions, the presuit settlement demand, and an estimate of damages where coverage was denied. The insurer must respond in writing within 10 business days. Option D is the most tempting because HB 837 (2023) did gut insurance fee-shifting by repealing the one-way attorney fee statutes, ss. 627.428 and 626.9373, F.S. — but it left the presuit notice machinery of s. 627.70152 standing. Appraisal in option B is a policy provision, not a statutory prerequisite, and mediation under s. 627.7015, F.S., is a voluntary alternative rather than a gate to the courthouse.

   Reference s. 627.70152, F.S.

10. A covered fire causes a partial loss to a Florida dwelling insured on a replacement cost basis. Repairs will cost $60,000, depreciation is $12,000, and the deductible is $2,500. Under s. 627.7011(3), F.S., how must the insurer handle payment?

    • APay at least actual cash value less the deductible now, and the rest as work is performedCorrect
    • BPay the full replacement cost immediately, less only the policy deductible
    • CPay nothing until the insured completes the repairs and submits invoices
    • DPay actual cash value only, since replacement cost applies to total losses

    Why: Section 627.7011(3), F.S., sets the sequence for a dwelling loss adjusted on a replacement cost basis: the insurer must initially pay at least the actual cash value of the insured loss less any applicable deductible, and must then pay any remaining amounts necessary to perform the repairs as the work is performed. That protects the insured from having to finance the entire repair out of pocket, which is why C is wrong, while still tying the recoverable depreciation to actual repair, which is why B is wrong. Option D is the most tempting near-miss because it half-remembers a real rule in the opposite direction: on a TOTAL loss the insurer must pay the replacement cost coverage without reservation or holdback of any depreciation in value. Note the different treatment of contents — for personal property the insurer must offer coverage that pays replacement cost without holdback whether or not the insured actually replaces the property.

    Reference s. 627.7011(3), F.S.

Topics inside this domain

• Florida's hurricane deductible
• Florida's separate roof deductible
• Catastrophic ground cover collapse vs sinkhole coverage
• Florida's Valued Policy Law
• Florida property claim deadlines
• HO forms compared: HO-2 through HO-8

Drill other domains

• Types of Property Policies (14%)
• Property Insurance Terms and Related Concepts (9.5%)
• Property Policy Provisions and Contract Law (8%)
• Types of Casualty Policies, Bonds, and Related Terms (15%)
• Casualty Insurance Terms and Related Concepts (9.5%)
• Casualty Policy Provisions (8%)

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