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