HB 1661 2024
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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 property insurer financial strength 2
ratings; amending s. 624.315, F.S.; providing 3
definitions; requiring the Office of Financial 4
Regulation's annual insurance reports to the 5
Legislature and the Governor to include the financial 6
strength ratings of property insurers against which 7
delinquency and similar proceedings were instituted; 8
requiring the office to maintain information relating 9
to financial strength ratings of property insurers and 10
to make such information available upon request; 11
providing an effective date. 12
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Be It Enacted by the Legislature of the State of Florida: 14
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Section 1. Subsections (1) through (5) of section 624.315, 16
Florida Statutes, are renumbered as subsections (2) through (6), 17
respectively, paragraph (c) of present subsection (1) and 18
present subsection (5) are amended, a new subsection (1) is 19
added, and paragraph (p) is added to present subsection (2) of 20
that section, to read: 21
624.315 Annual reports; quarterly reports. — 22
(1) As used in this section, the term: 23
(a) "Financial strength rating" means an objective 24
evaluation of the assets, liabilities, net worth, financial 25
HB 1661 2024
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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
health, performance, and risk of a property insure r as 26
determined by an independent rating agency. 27
(b) "Independent rating agency" means an entity that: 28
1. Issues financial strength ratings of insurers based on 29
an objective analysis of the insurer's financial health, 30
performance, risk, and other facto rs; 31
2. Issues unbiased and objective financial strength 32
ratings of insurers without the consent of the insurer; 33
3. Is not paid for ratings by the rated insurers directly 34
or indirectly, whether in cash or other forms of payment; 35
4. Does not permit any rated insurer to influence the 36
ratings of said insurer; 37
5. Is independent and free from outside control or 38
influence and can issue ratings objectively, without fear of 39
reprisals or loss of business; 40
6. Is empowered to begin, suspend, or end rating an 41
insurer at its discretion; and 42
7. Is not owned or controlled, in whole or in part, by any 43
insurer and does not enter into or maintain any potentially 44
related business relationships with rated insurers. 45
(2)(1) As early as reasonably possible, the office , with 46
such assistance from the department as requested, shall annually 47
prepare a report to the Speaker and Minority Leader of the House 48
of Representatives, the President and Minority Leader of the 49
Senate, the chairs of the legislative committees with 50
HB 1661 2024
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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
jurisdiction over matters of insurance, and the Governor 51
showing, with respect to the preceding calendar year: 52
(c) Names of insurers against which delinquency or similar 53
proceedings were instituted. For property insurers for which the 54
delinquency or similar proceedings were instituted, the annual 55
report must also include the date that each insurer was deemed 56
impaired of capital or surplus, as the terms impairment of 57
capital and impairment of surplus are defined in s. 631.011, or 58
insolvent, as the term insolvency is defined in s. 631.011; the 59
financial strength ratings of the property insurer issued by an 60
independent rating agency for each of the previous 8 fiscal 61
quarters before the delinquency or similar proceedings; a 62
concise statement of the circumstances that led to each 63
insurer's delinquency; a summary of the actions taken by the 64
insurer and the office to avoid delinquency; and the results or 65
status of each such proceeding. 66
(3)(2) The office shall maintain the following information 67
and make such information available upon request: 68
(p) The financial strength rating issued to each property 69
insurer by an indepe ndent rating agency each calendar quarter 70
during the reporting period, including the changes in ratings 71
from quarter to quarter, the number of downgrades in ratings 72
that occurred during the reporting period, the number of 73
downgraded companies that were sub sequently upgraded during the 74
reporting period, and the number of downgraded companies that 75
HB 1661 2024
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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
were subject to delinquency or similar proceedings. 76
(6)(5) When aggregate information includes information 77
asserted as trade secret information, the office may in clude the 78
trade secret information in the report required under subsection 79
(2) (1) or may make the trade secret information available under 80
subsection (3) (2) unless the trade secret information can be 81
individually extrapolated, in which case the trade sec ret 82
information remains protected as provided under s. 624.4213. 83
Section 2. This act shall take effect July 1, 2024. 84