SESSION WATCH
Died SENATE · SESSION 2026

No. SB 1268

Insurance
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SPONSOR
Davis
FILED BY
Tracie Davis — District 5, Democrat [search donations]
EFFECTIVE
7/1/2026
DIED IN
Banking and Insurance

Filed under Insurance.

PROVIDED SUMMARY

Insurance; Requiring the Department of Financial Services to take immediate enforcement actions under certain circumstances; requiring certain adjusters to complete specified continuing education courses annually; specifying requirements for such courses; revising the grounds for compulsory disciplinary actions by the department against certain insurance personnel; prohibiting insurers from excluding the public adjuster’s attorney from certain in-person meetings; requiring insurers to promptly provided third-party claimants with specified payments or assistance under certain circumstances, etc.

Full bill text →

Plain English Summary

AI-GENERATED
Revives one-way attorney fees for insureds who beat insurers in court.

Restores a repealed law letting insureds collect attorney fees when they beat insurers in court. Property insurance suits qualify only if the insured proves underpayment, wrongful denial, or bad faith, and recoverable costs now include the public adjuster's fee.

Property insurers must pay or deny claims within 30 days of notice, half the previous window. Missing full payment within 90 days makes the insurer liable for the claim plus interest plus an equal penalty, enforceable by the state.

Insurers that repair a damaged vehicle must now pay for any resulting loss in resale value, and a policy can no longer waive that requirement. Homeowner and auto insurers alike must also hand over a written repair plan and parts information before work starts.

An adjuster handling a claim without an active license now forces immediate enforcement action against both the adjuster and the insurer that used them. Adjusters licensed in other states must also complete 24 hours of Florida-specific training every year.

KEY PROVISIONS
§ 1 Revives a repealed law letting insureds recover attorney fees from insurers majors. 627.428

AIThe bill undoes the 2023 repeal of the general insurance attorney-fee statute, reinstating a rule that an insurer who loses a coverage judgment to its insured owes that insured's attorney fees.

“the repeal of section 627.428, Florida Statutes, in section 11 of chapter 2023-15, Laws of Florida, section 627.428, Florida Statutes, is revived, reenacted, and amended” bill text, line 472 →
§ 2 Limits property-suit fee-shifting to insureds who prove bad faith or wrongful denial majors. 627.428

AIFor residential and commercial property policies specifically, the revived fee right does not apply automatically. It triggers only if the policyholder wins a lawsuit on underpayment, wrongful denial, or bad faith, and the recoverable costs then include the public adjuster's fee.

“unless the insured or policyholder prevails in a lawsuit against an insurer for underpayment, wrongful claim denial, or bad faith practices” bill text, line 498 →
§ 3 Forces immediate DFS enforcement against unlicensed adjusters and their insurers majors. 626.112

AIWhenever an adjuster handles a claim without an active license or appointment, the department no longer has discretion. It must act at once against both the adjuster and the insurer that employed, contracted with, or directed that adjuster.

“the department must take immediate enforcement action against both the adjuster and the insurer employing, contracting with, or directing such adjuster” bill text, line 92 →
§ 4 Requires insurers to pay diminished value on repaired vehicles majors. 626.9743

AIWhen a covered loss is repaired rather than totaled, the insurer must now compensate the owner for the vehicle's remaining loss in resale value from its accident history, using set formulas, and a policy can no longer contract this obligation away.

“When a motor vehicle is repaired due to a covered loss, the insurer shall compensate the claimant for diminished value.” bill text, line 325 →
§ 5 Cuts the property pay-or-deny deadline to 30 days with a 90-day hard backstop majors. 627.70131

AIInsurers must pay or deny a property claim within 30 days of notice, half the current 60. If the full amount still isn't paid within 90 days, the insurer automatically owes the claim plus interest plus an equal penalty, which the department can enforce.

“the insurer has an uncontestable obligation to pay the amount owed, together with interest as provided in this subsection and an additional equal interest penalty” bill text, line 532 →
§ 6 Bars policy conditions the insurance code doesn't authorize unless regulators approve them majors. 627.418

AIInsurers can no longer slip an unauthorized condition into a policy. Any condition not grounded in the code needs prior approval from the Office of Insurance Regulation, and even an approved one must carry a bold notice plus a 10-day free cancellation right.

“An insurer may not impose or enforce any policy condition or requirement that is not authorized by this insurance code” bill text, line 402 →
§ 7 Requires prompt loss-of-use payment for third-party auto liability claimants moderates. 626.9743

AIWhen an at-fault driver's insurer clearly owes the claim, it must now promptly give the other driver payment or a rental car for the time their vehicle is out of use, on request, to the extent the policy would have covered that for its own insured.

“must promptly provide the third-party claimant with payment or assistance for loss of use of his or her motor vehicle, including reasonable temporary transportation” bill text, line 250 →
§ 8 Adds felony or misdemeanor conduct during claim handling as grounds for discipline moderates. 626.611

AIThe department may now suspend or revoke an adjuster's or agent's license for committing any felony or misdemeanor while adjusting, investigating, or handling a claim, alongside new grounds for discriminatory claims handling and knowing policy misinterpretation.

“Committing a felony or misdemeanor during the adjustment, investigation, or handling of an insurance claim.” bill text, line 123 →
TIMELINE
3/13/2026
Died in Banking and Insurance
1/13/2026
Introduced
1/12/2026
Referred to Banking and Insurance; Appropriations Committee on...
1/6/2026
Filed
STATUTES IT CHANGES
s. 626.112
+38 / −2
s. 626.2815
+62 / −0
s. 626.611
+81 / −0
s. 626.854
+18 / −0
s. 626.9541
+40 / −1
s. 626.9743
+603 / −10