Florida 2024 Regular Session

Florida House Bill H1661 Compare Versions

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

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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
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14	14	A bill to be entitled 1
15	15	An act relating to property insurer financial strength 2
16	16	ratings; amending s. 624.315, F.S.; providing 3
17	17	definitions; requiring the Office of Financial 4
18	18	Regulation's annual insurance reports to the 5
19	19	Legislature and the Governor to include the financial 6
20	20	strength ratings of property insurers against which 7
21	21	delinquency and similar proceedings were instituted; 8
22	22	requiring the office to maintain information relating 9
23	23	to financial strength ratings of property insurers and 10
24	24	to make such information available upon request; 11
25	25	providing an effective date. 12
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27	27	Be It Enacted by the Legislature of the State of Florida: 14
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29	29	Section 1. Subsections (1) through (5) of section 624.315, 16
30	30	Florida Statutes, are renumbered as subsections (2) through (6), 17
31	31	respectively, paragraph (c) of present subsection (1) and 18
32	32	present subsection (5) are amended, a new subsection (1) is 19
33	33	added, and paragraph (p) is added to present subsection (2) of 20
34	34	that section, to read: 21
35	35	624.315 Annual reports; quarterly reports. — 22
36	36	(1) As used in this section, the term: 23
37	37	(a) "Financial strength rating" means an objective 24
38	38	evaluation of the assets, liabilities, net worth, financial 25
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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
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51	51	health, performance, and risk of a property insure r as 26
52	52	determined by an independent rating agency. 27
53	53	(b) "Independent rating agency" means an entity that: 28
54	54	1. Issues financial strength ratings of insurers based on 29
55	55	an objective analysis of the insurer's financial health, 30
56	56	performance, risk, and other facto rs; 31
57	57	2. Issues unbiased and objective financial strength 32
58	58	ratings of insurers without the consent of the insurer; 33
59	59	3. Is not paid for ratings by the rated insurers directly 34
60	60	or indirectly, whether in cash or other forms of payment; 35
61	61	4. Does not permit any rated insurer to influence the 36
62	62	ratings of said insurer; 37
63	63	5. Is independent and free from outside control or 38
64	64	influence and can issue ratings objectively, without fear of 39
65	65	reprisals or loss of business; 40
66	66	6. Is empowered to begin, suspend, or end rating an 41
67	67	insurer at its discretion; and 42
68	68	7. Is not owned or controlled, in whole or in part, by any 43
69	69	insurer and does not enter into or maintain any potentially 44
70	70	related business relationships with rated insurers. 45
71	71	(2)(1) As early as reasonably possible, the office , with 46
72	72	such assistance from the department as requested, shall annually 47
73	73	prepare a report to the Speaker and Minority Leader of the House 48
74	74	of Representatives, the President and Minority Leader of the 49
75	75	Senate, the chairs of the legislative committees with 50
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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
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88	88	jurisdiction over matters of insurance, and the Governor 51
89	89	showing, with respect to the preceding calendar year: 52
90	90	(c) Names of insurers against which delinquency or similar 53
91	91	proceedings were instituted. For property insurers for which the 54
92	92	delinquency or similar proceedings were instituted, the annual 55
93	93	report must also include the date that each insurer was deemed 56
94	94	impaired of capital or surplus, as the terms impairment of 57
95	95	capital and impairment of surplus are defined in s. 631.011, or 58
96	96	insolvent, as the term insolvency is defined in s. 631.011; the 59
97	97	financial strength ratings of the property insurer issued by an 60
98	98	independent rating agency for each of the previous 8 fiscal 61
99	99	quarters before the delinquency or similar proceedings; a 62
100	100	concise statement of the circumstances that led to each 63
101	101	insurer's delinquency; a summary of the actions taken by the 64
102	102	insurer and the office to avoid delinquency; and the results or 65
103	103	status of each such proceeding. 66
104	104	(3)(2) The office shall maintain the following information 67
105	105	and make such information available upon request: 68
106	106	(p) The financial strength rating issued to each property 69
107	107	insurer by an indepe ndent rating agency each calendar quarter 70
108	108	during the reporting period, including the changes in ratings 71
109	109	from quarter to quarter, the number of downgrades in ratings 72
110	110	that occurred during the reporting period, the number of 73
111	111	downgraded companies that were sub sequently upgraded during the 74
112	112	reporting period, and the number of downgraded companies that 75
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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
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125	125	were subject to delinquency or similar proceedings. 76
126	126	(6)(5) When aggregate information includes information 77
127	127	asserted as trade secret information, the office may in clude the 78
128	128	trade secret information in the report required under subsection 79
129	129	(2) (1) or may make the trade secret information available under 80
130	130	subsection (3) (2) unless the trade secret information can be 81
131	131	individually extrapolated, in which case the trade sec ret 82
132	132	information remains protected as provided under s. 624.4213. 83
133	133	Section 2. This act shall take effect July 1, 2024. 84