Florida 2024 Regular Session

Florida House Bill H1489 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	HB 1489 2024
4	4
5	5
6	6
7	7	CODING: Words stricken are deletions; words underlined are additions.
8	8	hb1489-00
9	9	Page 1 of 15
10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11	11
12	12
13	13
14	14	A bill to be entitled 1
15	15	An act relating to insurance; creating s. 11.91, F.S.; 2
16	16	creating the Property Insurance Commission; providing 3
17	17	membership of the commission; providing powers and 4
18	18	duties of the commission; amending s. 20.121, F.S.; 5
19	19	providing for the election of the Commission er of 6
20	20	Insurance Regulation; providing terms for the 7
21	21	commissioner; conforming provisions to changes made by 8
22	22	the act; creating s. 112.3134, F.S.; prohibiting the 9
23	23	commissioner from engaging in certain activities or 10
24	24	employment for a specified period after leav ing 11
25	25	office; providing sanctions for violations; 12
26	26	authorizing specified entities to collect penalties; 13
27	27	amending s. 494.0026, F.S.; requiring interest earned 14
28	28	on insurance proceeds received by mortgagees and 15
29	29	assignees to be paid to insureds; amending s. 624.40 1, 16
30	30	F.S.; prohibiting property insurers from claiming 17
31	31	insolvency under specified circumstances; authorizing 18
32	32	persons who engage in property insurance activities in 19
33	33	other states to engage in insurance activities in this 20
34	34	state under certain circumstances; amen ding s. 21
35	35	627.0629, F.S.; requiring residential property 22
36	36	insurers to release specified information to insureds 23
37	37	upon request; amending s. 627.701, F.S.; prohibiting 24
38	38	property insurers from using certain defenses as 25
39	39
40	40	HB 1489 2024
41	41
42	42
43	43
44	44	CODING: Words stricken are deletions; words underlined are additions.
45	45	hb1489-00
46	46	Page 2 of 15
47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
48	48
49	49
50	50
51	51	claims denials; amending s. 627.715, F.S.; re quiring 26
52	52	insurance agents to advise insurance applicants of 27
53	53	flood risk; creating s. 627.71555, F.S.; providing 28
54	54	duties of the Office of Insurance Regulation; 29
55	55	requiring the Department of Financial Services to 30
56	56	adopt rules regarding allegations of insurance fra ud 31
57	57	made by insurers or their employees or contractors; 32
58	58	providing requirements for such rules; providing 33
59	59	fines; requiring the Office of Program Policy Analysis 34
60	60	and Government Accountability to conduct a study of 35
61	61	the effectiveness of the property insurance m ediation 36
62	62	program; providing requirements for the study; 37
63	63	requiring a report to the Legislature; amending 38
64	64	chapter 2022-268, Laws of Florida; increasing an 39
65	65	appropriation to the My Safe Florida Home Program; 40
66	66	providing an effective date. 41
67	67	42
68	68	Be It Enacted by the Legislature of the State of Florida: 43
69	69	44
70	70	Section 1. Section 11.91, Florida Statutes, is created to 45
71	71	read: 46
72	72	11.91 Property Insurance Commission. — 47
73	73	(1)(a) There is created the Property Insurance Commission, 48
74	74	which shall consist of six members: 49
75	75	1. Two members appointed by the President of the Senate. 50
76	76
77	77	HB 1489 2024
78	78
79	79
80	80
81	81	CODING: Words stricken are deletions; words underlined are additions.
82	82	hb1489-00
83	83	Page 3 of 15
84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
85	85
86	86
87	87
88	88	2. One member appointed by the Minority Leader of the 51
89	89	Senate. 52
90	90	3. Two members appointed by the Speaker of the House of 53
91	91	Representatives. 54
92	92	4. One member appointed by the House Minority Leader. 55
93	93	(b) Each member shall serve at the pleasure of the officer 56
94	94	who appointed the member. A vacancy on the commission shall be 57
95	95	filled in the same manner as the original appointment. From 58
96	96	November of each odd -numbered year through October of each even -59
97	97	numbered year, the c hair of the commission shall be appointed by 60
98	98	the President of the Senate, and the vice chair of the 61
99	99	commission shall be appointed by the Speaker of the House of 62
100	100	Representatives. From November of each even -numbered year 63
101	101	through October of each odd -numbered year, the chair of the 64
102	102	commission shall be appointed by the Speaker of the House of 65
103	103	Representatives, and the vice chair of the commission shall be 66
104	104	appointed by the President of the Senate. The terms of members 67
105	105	shall be for 2 years and shall run from the or ganization of one 68
106	106	Legislature to the organization of the next Legislature. 69
107	107	(2) The commission shall be governed by joint rules of the 70
108	108	Senate and the House of Representatives, which shall remain in 71
109	109	effect until repealed or amended by concurrent resolution . 72
110	110	(3) The commission may conduct its meetings through 73
111	111	teleconferences or other similar means. 74
112	112	(4) The commission shall be staffed by legislative staff 75
113	113
114	114	HB 1489 2024
115	115
116	116
117	117
118	118	CODING: Words stricken are deletions; words underlined are additions.
119	119	hb1489-00
120	120	Page 4 of 15
121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
122	122
123	123
124	124
125	125	members, as assigned by the President of the Senate and the 76
126	126	Speaker of the House of Representatives. 77
127	127	(5) The commission has the power and duty to: 78
128	128	(a) Review and evaluate the insurance marketplace and 79
129	129	studies of the various insurance markets. 80
130	130	(b) Review and comment on market data produced by the 81
131	131	Office of Insurance Regulation. 82
132	132	(c) Review and comment on the setting of reserve 83
133	133	requirements for insurers. 84
134	134	(d) Exercise all other powers and perform any other duties 85
135	135	prescribed by the Legislature. 86
136	136	Section 2. Paragraphs (a) and (d) of subsection (3) of 87
137	137	section 20.121, Florida Statutes, are amende d to read: 88
138	138	20.121 Department of Financial Services. —There is created 89
139	139	a Department of Financial Services. 90
140	140	(3) FINANCIAL SERVICES COMMISSION. —Effective January 7, 91
141	141	2003, there is created within the Department of Financial 92
142	142	Services the Financial Services C ommission, composed of the 93
143	143	Governor, the Attorney General, the Chief Financial Officer, and 94
144	144	the Commissioner of Agriculture, which shall for purposes of 95
145	145	this section be referred to as the commission. Commission 96
146	146	members shall serve as agency head of the Fin ancial Services 97
147	147	Commission. The commission shall be a separate budget entity and 98
148	148	shall be exempt from the provisions of s. 20.052. Commission 99
149	149	action shall be by majority vote consisting of at least three 100
150	150
151	151	HB 1489 2024
152	152
153	153
154	154
155	155	CODING: Words stricken are deletions; words underlined are additions.
156	156	hb1489-00
157	157	Page 5 of 15
158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
159	159
160	160
161	161
162	162	affirmative votes. The commission shall not be subje ct to 101
163	163	control, supervision, or direction by the Department of 102
164	164	Financial Services in any manner, including purchasing, 103
165	165	transactions involving real or personal property, personnel, or 104
166	166	budgetary matters. 105
167	167	(a) Structure.—The major structural unit of the commi ssion 106
168	168	is the office. Each office shall be headed by a director. The 107
169	169	following offices are established: 108
170	170	1. The Office of Insurance Regulation, which shall be 109
171	171	responsible for all activities concerning insurers and other 110
172	172	risk bearing entities, including lic ensing, rates, policy forms, 111
173	173	market conduct, claims, issuance of certificates of authority, 112
174	174	solvency, viatical settlements, premium financing, and 113
175	175	administrative supervision, as provided under the insurance code 114
176	176	or chapter 636. The head of the Office of In surance Regulation 115
177	177	is the Director of the Office of Insurance Regulation, who may 116
178	178	also be known as the Commissioner of Insurance Regulation. 117
179	179	Beginning with the general election in 2026, the Commissioner of 118
180	180	Insurance Regulation shall be elected. The commiss ioner elected 119
181	181	in 2026 shall serve a term of 2 years; thereafter, the 120
182	182	commissioner shall serve a term of 4 years. 121
183	183	2. The Office of Financial Regulation, which shall be 122
184	184	responsible for all activities of the Financial Services 123
185	185	Commission relating to the reg ulation of banks, credit unions, 124
186	186	other financial institutions, finance companies, and the 125
187	187
188	188	HB 1489 2024
189	189
190	190
191	191
192	192	CODING: Words stricken are deletions; words underlined are additions.
193	193	hb1489-00
194	194	Page 6 of 15
195	195	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
196	196
197	197
198	198
199	199	securities industry. The head of the office is the Director of 126
200	200	the Office of Financial Regulation, who may also be known as the 127
201	201	Commissioner of Financial Regulation. The Office of Financial 128
202	202	Regulation shall include a Bureau of Financial Investigations, 129
203	203	which shall function as a criminal justice agency for purposes 130
204	204	of ss. 943.045-943.08 and shall have a separate budget. The 131
205	205	bureau may conduct investigations within or ou tside this state 132
206	206	as the bureau deems necessary to aid in the enforcement of this 133
207	207	section. If, during an investigation, the office has reason to 134
208	208	believe that any criminal law of this state has or may have been 135
209	209	violated, the office shall refer any records te nding to show 136
210	210	such violation to state or federal law enforcement or 137
211	211	prosecutorial agencies and shall provide investigative 138
212	212	assistance to those agencies as required. 139
213	213	(d) Appointment and qualification qualifications of the 140
214	214	Director of the Office of Financi al Regulation directors.—The 141
215	215	commission shall appoint or remove the each Director of the 142
216	216	Office of Financial Regulation by a majority vote consisting of 143
217	217	at least three affirmative votes, with both the Governor and the 144
218	218	Chief Financial Officer on the prevail ing side. The minimum 145
219	219	qualifications of the directors are as follows: 146
220	220	1. Prior to appointment as director, the Director of the 147
221	221	Office of Insurance Regulation must have had, within the 148
222	222	previous 10 years, at least 5 years of responsible private 149
223	223	sector experience working full time in areas within the scope of 150
224	224
225	225	HB 1489 2024
226	226
227	227
228	228
229	229	CODING: Words stricken are deletions; words underlined are additions.
230	230	hb1489-00
231	231	Page 7 of 15
232	232	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
233	233
234	234
235	235
236	236	the subject matter jurisdiction of the Office of Insurance 151
237	237	Regulation or at least 5 years of experience as a senior 152
238	238	examiner or other senior employee of a state or federal agency 153
239	239	having regulatory respo nsibility over insurers or insurance 154
240	240	agencies. 155
241	241	Before 2. Prior to appointment as director, the Director 156
242	242	of the Office of Financial Regulation must have had, within the 157
243	243	previous 10 years, at least 5 years of responsible private 158
244	244	sector experience working f ull time in areas within the subject 159
245	245	matter jurisdiction of the Office of Financial Regulation or at 160
246	246	least 5 years of experience as a senior examiner or other senior 161
247	247	employee of a state or federal agency having regulatory 162
248	248	responsibility over financial inst itutions, finance companies, 163
249	249	or securities companies. 164
250	250	Section 3. Section 112.3134, Florida Statutes, is created 165
251	251	to read: 166
252	252	112.3134 Commissioner of Insurance Regulation; Office of 167
253	253	Insurance Regulation. — 168
254	254	(1) A person who has served as Commissioner of Insurance 169
255	255	Regulation may not: 170
256	256	(a) Personally represent another person or entity for 171
257	257	compensation before the Office of Insurance Regulation; or 172
258	258	(b) Serve as an employee or contractor of an entity 173
259	259	regulated by the Office of Insurance Regulation 174
260	260	175
261	261
262	262	HB 1489 2024
263	263
264	264
265	265
266	266	CODING: Words stricken are deletions; words underlined are additions.
267	267	hb1489-00
268	268	Page 8 of 15
269	269	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
270	270
271	271
272	272
273	273	for a period of 7 years after vacating that office. 176
274	274	(2) A person who violates subsection (1) may be punished 177
275	275	by: 178
276	276	(a) Public censure and reprimand; 179
277	277	(b) A civil penalty not to exceed $10,000; or 180
278	278	(c) Forfeiture of any pecuniary benefits received for 181
279	279	conduct that violates this section. The amount of the pecuniary 182
280	280	benefits must be paid to the General Revenue Fund. 183
281	281	(3) The Attorney General and Chief Financial Officer are 184
282	282	independently authorized to collect any penalty imposed under 185
283	283	this section. 186
284	284	Section 4. Subsection (2) of section 494.0026, Florida 187
285	285	Statutes, is amended to read: 188
286	286	494.0026 Disposition of insurance proceeds. —The following 189
287	287	provisions apply to mortgage loans held by a mortgagee or 190
288	288	assignee that is subject to part II or part III of this chapter. 191
289	289	(2)(a) Insurance proceeds received by a mortgagee or 192
290	290	assignee that relate to compensation for damage to property or 193
291	291	contents insurance coverage in which the mortgagee or assignee 194
292	292	has a security interest must be promptly deposited into a 195
293	293	segregated account of a federally insured financial institution. 196
294	294	(b) Any interest earned on insurance proceeds received by 197
295	295	a mortgagee or assignee that relate to compensation for damage 198
296	296	to property or contents insurance coverage in which the 199
297	297	mortgagee or assignee has a security interest must be paid to 200
298	298
299	299	HB 1489 2024
300	300
301	301
302	302
303	303	CODING: Words stricken are deletions; words underlined are additions.
304	304	hb1489-00
305	305	Page 9 of 15
306	306	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
307	307
308	308
309	309
310	310	the insured. 201
311	311	202
312	312	This section may not be construed to prevent an insurance 203
313	313	company from paying the insured directly for additional living 204
314	314	expenses or paying the insured directly for contents insurance 205
315	315	coverage if the mortgagee or assignee does not have a security 206
316	316	interest in the contents. 207
317	317	Section 5. Subsection (5) is added to section 624.401, 208
318	318	Florida Statutes, to read: 209
319	319	624.401 Certificate of authority required. — 210
320	320	(5)(a) A property insurer may not claim insolvency in this 211
321	321	state if the insurer still acts as an insurer, transacts 212
322	322	insurance, or otherwise engages in insurance activities in any 213
323	323	state other than this state, regardless of whether these 214
324	324	insurance activities are property insurance activities. 215
325	325	(b) Effective January 1, 2025, any person who acts as a 216
326	326	property insurer, transacts property insurance, or otherwise 217
327	327	engages in property insurance activities in any state other than 218
328	328	this state may act as an insurer, transact insurance, or 219
329	329	otherwise engage in insurance activities in this state only if 220
330	330	that person does not exclude property insurance from the 221
331	331	person's insurance transactions or activities. 222
332	332	Section 6. Subsection (10) is added to section 627.0629, 223
333	333	Florida Statutes, to read: 224
334	334	627.0629 Residential property insurance; rate filings.— 225
335	335
336	336	HB 1489 2024
337	337
338	338
339	339
340	340	CODING: Words stricken are deletions; words underlined are additions.
341	341	hb1489-00
342	342	Page 10 of 15
343	343	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
344	344
345	345
346	346
347	347	(10) An insurer must release to an insured all information 226
348	348	relating to an inspection or an underwriting report upon the 227
349	349	insured's request. 228
350	350	Section 7. Subsection (11) is added to section 627.701, 229
351	351	Florida Statutes, to read: 230
352	352	627.701 Liability of insureds; coinsurance; deductibles ; 231
353	353	prohibited denials of claims .— 232
354	354	(11) A property insurer that issues or renews an insurance 233
355	355	policy or contract covering real property in this state on or 234
356	356	after January 1, 2025, may not use a property's preexis ting 235
357	357	condition, a date of loss that predates the date of a claim, or 236
358	358	faulty installation or workmanship as a defense for denying a 237
359	359	claim. 238
360	360	Section 8. Subsection (8) of section 627.715, Florida 239
361	361	Statutes, is amended to read: 240
362	362	627.715 Flood insurance. —An authorized insurer may issue 241
363	363	an insurance policy, contract, or endorsement providing personal 242
364	364	lines residential coverage for the peril of flood or excess 243
365	365	coverage for the peril of flood on any structure or the contents 244
366	366	of personal property contained therei n, subject to this section. 245
367	367	This section does not apply to commercial lines residential or 246
368	368	commercial lines nonresidential coverage for the peril of flood. 247
369	369	An insurer may issue flood insurance policies, contracts, 248
370	370	endorsements, or excess coverage on a stan dard, preferred, 249
371	371	customized, flexible, or supplemental basis. 250
372	372
373	373	HB 1489 2024
374	374
375	375
376	376
377	377	CODING: Words stricken are deletions; words underlined are additions.
378	378	hb1489-00
379	379	Page 11 of 15
380	380	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
381	381
382	382
383	383
384	384	(8)(a) An agent must provide a written notice to be signed 251
385	385	by every the applicant advising the applicant of flood risk. 252
386	386	(b) If before the agent places flood insurance coverage 253
387	387	with an admitted or surplus lines insurer for a property 254
388	388	receiving flood insurance under the National Flood Insurance 255
389	389	Program, the agent must also provide to the applicant, before 256
390	390	placing new flood coverage for the property, a written . the 257
391	391	notice notifying must notify the applicant that, if the 258
392	392	applicant discontinues coverage under the National Flood 259
393	393	Insurance Program which is provided at a subsidized rate, the 260
394	394	full risk rate for flood insurance may apply to the property if 261
395	395	the applicant later seeks to reinstate coverage under the 262
396	396	program. 263
397	397	Section 9. Section 627.71555, Florida Statutes, is created 264
398	398	to read: 265
399	399	627.71555 Office rulemaking. —By January 1, 2025, the 266
400	400	office must adopt rules: 267
401	401	(1) Requiring that, each time legislation creating or 268
402	402	amending law to reform prope rty insurance takes effect, property 269
403	403	insurers must offer mandatory premium rate reduction for their 270
404	404	insureds. 271
405	405	(2) Ensuring that insurance fraud committed by any person 272
406	406	can be easily reported, investigated, and, if necessary, 273
407	407	prosecuted. 274
408	408	(3) Redetermining flood zones statewide for use when 275
409	409
410	410	HB 1489 2024
411	411
412	412
413	413
414	414	CODING: Words stricken are deletions; words underlined are additions.
415	415	hb1489-00
416	416	Page 12 of 15
417	417	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
418	418
419	419
420	420
421	421	assigning flood risks. 276
422	422	Section 10. The Department of Financial Services shall, no 277
423	423	later than October 1, 2025, adopt rules regarding any allegation 278
424	424	made by an insurer or an employee or contractor thereof of 279
425	425	insurance fraud in violation of any provision listed in s. 280
426	426	626.9892(2), Florida Statutes. Such rules must include 281
427	427	requirements that: 282
428	428	(1) The Division of Investigative and Forensic Services in 283
429	429	the Department of Financial Services must be informed by an 284
430	430	insurer of any such allegation. 285
431	431	(2) The department shall promptly investigate such 286
432	432	allegations. 287
433	433	(3) If the department determines that there was no fraud, 288
434	434	the insurer alleging such fraud may be appropriately sanctioned 289
435	435	by a fine of up to $100,000. 290
436	436	(4) All documents relating to such sanctions shall be 291
437	437	public records. 292
438	438	Section 11. (1) The Office of Program Policy Analysis and 293
439	439	Government Accountability (OPPAGA) shall conduct a study to 294
440	440	evaluate the effectiveness of the property insurance mediation 295
441	441	program provided pursuant to s. 627.7015, Florida Statutes. The 296
442	442	study's scope must include, but need not be limited to: 297
443	443	(a) Improvements in the public's awareness of the program 298
444	444	and the advantages of participation in the program. 299
445	445	(b) Program resource needs. 300
446	446
447	447	HB 1489 2024
448	448
449	449
450	450
451	451	CODING: Words stricken are deletions; words underlined are additions.
452	452	hb1489-00
453	453	Page 13 of 15
454	454	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
455	455
456	456
457	457
458	458	(2) The study must include recommendations for any changes 301
459	459	needed to improve the efficiency of the program to maximize its 302
460	460	usefulness as an alternative to litigation. 303
461	461	(3) In conducting the study, OPPAGA shall consult with the 304
462	462	Department of Financial Services , insurers, and organizations 305
463	463	representing insurance consumers. 306
464	464	(4) OPPAGA shall submit a report on its findings to the 307
465	465	President of the Senate and the Speaker of the House of 308
466	466	Representatives by December 1, 2025. 309
467	467	Section 12. Section 4 of chapter 2022 -268, Laws of 310
468	468	Florida, is amended to read: 311
469	469	Section 4. (1) For the 2024-2025 2022-2023 fiscal year, 312
470	470	the sum of $300 $150 million in nonrecurring funds is 313
471	471	appropriated from the General Revenue Fund to the Department of 314
472	472	Financial Services for the My Safe Florida Home Program. The 315
473	473	funds shall be placed in reserve. The department shall submit 316
474	474	budget amendments requesting release of the funds held in 317
475	475	reserve pursuant to chapter 216, Florida Statutes. The budget 318
476	476	amendments shall include a detailed spending pl an. 319
477	477	(2) The funds shall be allocated as follows: 320
478	478	(a) Fifty Twenty-five million dollars for hurricane 321
479	479	mitigation inspections. 322
480	480	(b) Two hundred thirty One hundred fifteen million dollars 323
481	481	for mitigation grants. 324
482	482	(c) Eight Four million dollars for education and consumer 325
483	483
484	484	HB 1489 2024
485	485
486	486
487	487
488	488	CODING: Words stricken are deletions; words underlined are additions.
489	489	hb1489-00
490	490	Page 14 of 15
491	491	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
492	492
493	493
494	494
495	495	awareness. 326
496	496	(d) Two One million dollars for public outreach for 327
497	497	contractors and real estate brokers and sales associates. 328
498	498	(e) Ten Five million dollars for administrative costs. 329
499	499	(3) Any unexpended balance of funds from this 330
500	500	appropriation remaining on June 30, 2025 2023, shall revert and 331
501	501	is appropriated to the Department of Financial Services for the 332
502	502	2025-2026 2023-2024 fiscal year for the same purpose. 333
503	503	(4) The department may adopt emergency rules pursuant to 334
504	504	s. 120.54, Florida Statutes, at any time, as are necessary to 335
505	505	implement this section and s. 215.5586, Florida Statutes, as 336
506	506	amended by this act. The Legislature finds that such emergency 337
507	507	rulemaking authority is necessary to address a critical need in 338
508	508	the state's problematic property insurance market. The 339
509	509	Legislature further finds that the uniquely short timeframe 340
510	510	needed to effectively implement this section for the 2024-2025 341
511	511	2022-2023 fiscal year requires that the department adopt rules 342
512	512	as quickly as practi cable. Therefore, in adopting such emergency 343
513	513	rules, the department need not make the findings required by s. 344
514	514	120.54(4)(a), Florida Statutes. Emergency rules adopted under 345
515	515	this section are exempt from s. 120.54(4)(c), Florida Statutes, 346
516	516	and shall remain in e ffect until replaced by rules adopted under 347
517	517	the nonemergency rulemaking procedures of chapter 120, Florida 348
518	518	Statutes, which must occur no later than July 1, 2025 2023. 349
519	519	(5) This section shall expire on October 1, 2026 2024. 350
520	520
521	521	HB 1489 2024
522	522
523	523
524	524
525	525	CODING: Words stricken are deletions; words underlined are additions.
526	526	hb1489-00
527	527	Page 15 of 15
528	528	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
529	529
530	530
531	531
532	532	Section 13. This act shall t ake effect July 1, 2024. 351