FL
Florida House Bill H0881

Florida 2025 Regular Session

Florida House Bill H0881 Compare Versions

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1010 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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1414 A bill to be entitled 1
15-An act relating to insurance; amending s. 624.155, 2
16-F.S.; defining the term "sufficient evidence"; 3
17-providing procedures and timelines for objecting, and 4
18-responding to the objections, to the sufficiency of 5
19-evidence submitted by claimants to insurers; creatin g 6
20-s. 624.341, F.S.; providing legislative findings and 7
21-intent; requiring the Department of Law Enforcement to 8
22-accept certain fingerprints; specifying procedures for 9
23-fingerprinting; authorizing the department to exchange 10
24-certain records with the Office of I nsurance 11
25-Regulation; specifying that fingerprints must be 12
26-submitted in accordance with certain rules; 13
27-authorizing that the fingerprints be submitted through 14
28-a third-party vendor authorized by the department; 15
29-requiring the department to conduct certain back ground 16
30-checks; requiring that certain fingerprints be 17
31-submitted and entered into a specified system; 18
32-requiring the office to inform the department of any 19
33-person whose fingerprints no longer must be retained; 20
34-specifying who bears the costs of fingerprint 21
35-processing; specifying that certain criminal records 22
36-must be used by the office for certain purposes; 23
37-creating s. 624.347, F.S.; providing definitions; 24
38-providing applicability; establishing standards for 25
15+An act relating to insurer accountability to insureds; 2
16+amending s. 626.854, F.S.; requiring public adjusters, 3
17+public adjuster apprentices, and public adjusting 4
18+firms to respond to requests for claims' statuses 5
19+within a specified timeframe; creating s. 627. 4823, 6
20+F.S.; providing definitions; providing reporting 7
21+requirements relating to universal life insurance 8
22+policies; providing applicability; amending s. 9
23+627.6515, F.S.; providing applicability of specified 10
24+provisions relating to group health insurance 11
25+policies; creating s. 627.7293, F.S.; requiring 12
26+certain motor vehicle insurers that provide towing and 13
27+labor coverage to disclose certain language when a 14
28+towing or labor claim is made; requiring such insurers 15
29+to obtain express consent from claimants before 16
30+submission of claims; proving applicability; creating 17
31+s. 627.7431, F.S.; providing definitions; requiring 18
32+motor vehicle insurers to pay or to deny or partially 19
33+deny first-party claims under private passenger motor 20
34+vehicle insurance policies within a specified 21
35+timeframe; providing exceptions; requiring written 22
36+explanations for the insurers' decisions relating to 23
37+claims payments; providing for interest on claims; 24
38+prohibiting specified provisions on claims and 25
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4747 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-compensation arrangements and oversight of affiliate 26
52-transactions involving insurers, managing general 27
53-agents, and attorneys in fact; providing penalties; 28
54-requiring the office to adopt rules; amending s. 29
55-624.424, F.S.; specifying requirements for affiliate 30
56-compensation arrangements; removing requirements that 31
57-the office consider a specified factor in determining 32
58-whether certain affiliate considerations and payments 33
59-by an insurer are fair and reasonable; amending s. 34
60-626.854, F.S.; requiring public adjusters, public 35
61-adjuster apprentices, and public adjusting fir ms to 36
62-respond to requests for claims' statuses within a 37
63-specified timeframe; creating s. 627.4823, F.S.; 38
64-providing definitions; providing reporting 39
65-requirements relating to universal life insurance 40
66-policies; providing applicability; amending s. 41
67-628.371, F.S.; defining the term "affiliated entity"; 42
68-applying provisions on prohibitions against, 43
69-limitations on, and authority of insurers relating to 44
70-dividend payments and distributions to stockholders to 45
71-affiliated entities; providing requirements for 46
72-certain approvals of dividends, distributions, and 47
73-other financial arrangements; creating s. 628.372, 48
74-F.S.; providing authority of the office over affiliate 49
75-dividends; providing penalties; requiring the office 50
51+interest from being waived, voided, or nullified; 26
52+providing circumstances under which requirements for 27
53+claims and interest on claims are tolled; providing 28
54+applicability; providing an effective date. 29
55+ 30
56+Be It Enacted by the Legislature of the State of Florida: 31
57+ 32
58+ Section 1. Subsection (24) is added to sect ion 626.854, 33
59+Florida Statutes, to read: 34
60+ 626.854 "Public adjuster" defined; prohibitions. —The 35
61+Legislature finds that it is necessary for the protection of the 36
62+public to regulate public insurance adjusters and to prevent the 37
63+unauthorized practice of law. 38
64+ (24) A public adjuster, public adjuster apprentice, or 39
65+public adjusting firm shall respond with specific information to 40
66+a written or electronic request for a claim's status from an 41
67+insured or claimant or his or her designated representative 42
68+within 14 days after receipt of the request and shall document 43
69+the file accordingly. 44
70+ Section 2. Section 627.4823, Florida Statutes, is created 45
71+to read: 46
72+ 627.4823 Universal life insurance policies. — 47
73+ (1) As used in this section, the term: 48
74+ (a) "Cash surrender valu e" means the net cash surrender 49
75+value, plus any outstanding amounts as policy loans. 50
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8484 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-to adopt rules; amending s. 628.461, F.S.; specifying 51
89-the method of sending notifications regarding 52
90-transactions or proposed transactions of voting 53
91-securities of stock insurers or controlling companies; 54
92-revising the method of filing certain statements; 55
93-amending s. 629.011, F.S.; revising and providing 56
94-definitions; amending s. 629.071, F.S.; authorizing 57
95-assessable and nonassessable reciprocal insurers, 58
96-rather than domestic reciprocal insurers, to transact 59
97-insurance if they maintain specified amounts of 60
98-surplus funds; creating s. 629.082, F.S.; providing 61
99-that attorneys in fact of reciprocal insurers are 62
100-affiliated entities for certain purposes; amending s. 63
101-629.121, F.S.; providing that certain bonds filed with 64
102-the office as security are filed by attorneys in fact, 65
103-rather than attorneys, of domestic reciprocal 66
104-insurers; increasing the bond amount; creating s. 67
105-629.162, F.S.; authorizing reciprocal insurers to 68
106-require subscriber contributions; providing disclosure 69
107-and reporting requirements for subscriber 70
108-contributions; creating s. 629.163, F.S.; authorizing 71
109-reciprocal insurers to establish subscriber savings 72
110-accounts; providing construction; providing 73
111-requirements for subscriber savings accounts; creating 74
112-s. 629.164, F.S.; authorizing reciprocal insurers to 75
88+ (b) "Fixed-premium universal life insurance policy" means 51
89+a universal life insurance policy other than a flexible -premium 52
90+universal life insurance policy. 53
91+ (c) "Flexible-premium universal life insurance policy" 54
92+means a universal life insurance policy that allows the 55
93+policyowner to vary, independently of each other, the amount of 56
94+timing of one or more premium payments or the amount of 57
95+insurance. 58
96+ (d) "Net cash surrender value" means the maximum amount 59
97+payable to the policyowner upon surrender. 60
98+ (e) "Policy value" means the value of any individual life 61
99+insurance policy, rider, group master policy, or individual 62
100+certificate, under the provisions of which separately identif ied 63
101+interest credits, other than in connection with dividend 64
102+accumulations, premium deposit funds, or other supplementary 65
103+accounts, and mortality and expense charges are made to the 66
104+policy. A universal life insurance policy may provide for other 67
105+credits and charges, such as charges for the cost of benefits 68
106+provided by a rider. 69
107+ (f) "Universal life insurance policy" means any individual 70
108+life insurance policy, rider, group master policy, or individual 71
109+certificate, under the provisions of which separately ide ntified 72
110+interest credits and mortality and expense charges are made to 73
111+the policy. The policy, rider, or certificate does not apply to 74
112+policies, riders, group master policies, or individual 75
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121121 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-make distributions to subscribers from subscriber 76
126-savings accounts; granting to subscribers' advisory 77
127-committees sole authority to authorize distributions, 78
128-subject to prior written approval by the office; 79
129-providing requirements for reciprocal insurers that 80
130-prohibit subscribers from receiving distributions for 81
131-a specified period of time; providing construction; 82
132-authorizing reciprocal insurers to return to 83
133-subscribers unused premiums, savings, and credits 84
134-accruing to their accounts; authorizing domestic 85
135-reciprocal insurers to pay to their subscribers 86
136-portions of unassign ed funds; providing distribution 87
137-limits; prohibiting distribution discrimination; 88
138-providing requirements for distributions and other 89
139-financial arrangements; amending s. 629.171, F.S.; 90
140-revising requirements for filing with the office 91
141-annual statements by re ciprocal insurers; providing 92
142-requirements for filing annual statements of the 93
143-accounts and records of attorneys in fact; amending s. 94
144-629.201, F.S.; requiring that each domestic reciprocal 95
145-insurer have a subscribers' advisory committee; 96
146-requiring that such committee be formed in compliance 97
147-with specified laws; requiring that rules and 98
148-amendments adopted by subscribers have prior approval 99
149-of the office; revising subscribers' advisory 100
125+certificates in connection with dividend accumulations, premium 76
126+deposit funds, or other supplementary accounts. A universal life 77
127+insurance policy may provide for other credits and charges, such 78
128+as charges for the cost of benefits provided by a rider. 79
129+ (2)(a) A universal life insurance policy issued in this 80
130+state must provide that the policyowner will be sent without 81
131+charge, at least annually, a report that will serve to keep the 82
132+policyowner advised of the status of the policy. The end date of 83
133+the current reporting period may not be more than 3 months 84
134+before the date of the mailing of the report. 85
135+ (b) The report must include all of the following: 86
136+ 1. The beginning and end dates of the current reporting 87
137+period. 88
138+ 2. The policy value at the end of the previous reporting 89
139+period and at the end of the current reporting peri od. 90
140+ 3. The total amounts, identified by each type, which have 91
141+been credited or debited to the policy value during the current 92
142+reporting period. 93
143+ 4. The current death benefit at the end of the current 94
144+reporting period on each life covered by the policy. 95
145+ 5. The net cash surrender value of the policy as of the 96
146+end of the current reporting period. 97
147+ 6. The amount of outstanding loans, if any, as of the end 98
148+of the current reporting period. 99
149+ 7. For a fixed-premium universal life insurance policy, 100
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158158 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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162-committees' duties and membership; providing for 101
163-election and terms; requiri ng that attorneys in fact 102
164-provide a communication platform to subscribers under 103
165-certain circumstances; repealing s. 629.271, F.S., 104
166-relating to distribution of savings; amending s. 105
167-629.291, F.S.; providing that forms filed with the 106
168-office for plans to merge a reciprocal insurer with 107
169-another reciprocal insurer or to convert a reciprocal 108
170-insurer to a stock or mutual insurer are adopted by 109
171-the Financial Services Commission rather than the 110
172-office; amending s. 629.301, F.S.; specifying the 111
173-manner in which impaire d reciprocal insurers are 112
174-proceeded against if they cannot make up deficiencies 113
175-in assets; specifying the manner in which assessments 114
176-are levied upon subscribers if reciprocal insurers are 115
177-liquidated; providing that assessments are subject to 116
178-specified limits; repealing ss. 629.401 and 629.520, 117
179-F.S., relating to insurance exchange and the authority 118
180-of a limited reciprocal insurer, respectively; 119
181-creating s. 629.56, F.S.; requiring reciprocal 120
182-insurers to maintain unearned premium reserves at all 121
183-times; amending s. 624.45, F.S.; conforming a 122
184-provision to changes made by the act; providing 123
185-applicability timelines; providing effective dates. 124
186- 125
162+if, assuming the guaranteed interest, mortality and expense 101
163+loads, and continued scheduled premium payment, the policy's net 102
164+cash surrender value is such that it would not maintain 103
165+insurance in force until the end of the next reporting period, a 104
166+notice to this effec t in the report. 105
167+ 8. For a flexible-premium universal life insurance policy, 106
168+if, assuming the guaranteed interest and the mortality and 107
169+expense loads, the policy's net cash surrender value will not 108
170+maintain insurance in force until the end of the next rep orting 109
171+period unless further premium payments are made, a notice to 110
172+this effect in the report. 111
173+ 9. For a fixed-premium or flexible-premium universal life 112
174+insurance policy, if, assuming the guaranteed interest and the 113
175+mortality and expense loads, the polic y's net cash surrender 114
176+value will not maintain insurance in force until the maturity of 115
177+the contract, the projected date on which policy values will be 116
178+insufficient to continue coverage in force. 117
179+ (3) This section applies to all universal life insurance 118
180+policies except variable contracts as defined in s. 627.8015. 119
181+ Section 3. Paragraph (c) of subsection (2) of section 120
182+627.6515, Florida Statutes, is amended to read: 121
183+ 627.6515 Out-of-state groups.— 122
184+ (2) Except as otherwise provided in this part, this pa rt 123
185+does not apply to a group health insurance policy issued or 124
186+delivered outside this state under which a resident of this 125
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195195 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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199-Be It Enacted by the Legislature of the State of Florida: 126
200- 127
201- Section 1. Paragraph (a) of subsection (4) of section 128
202-624.155, Florida Statutes, is amended to read: 129
203- 624.155 Civil remedy. — 130
204- (4)(a)1. An action for bad faith involving a liability 131
205-insurance claim, including any such action brought under the 132
206-common law, may shall not lie if the insurer tenders the lesser 133
207-of the policy limits or the amount demanded by the claimant 134
208-within 90 days after receiving actual notice of a claim which is 135
209-accompanied by sufficient evidence to support the amount of the 136
210-claim. 137
211- 2. For purposes of this paragraph, the term "sufficient 138
212-evidence" means written or photographic evidence submitted to 139
213-the insurer which indicates that the claimant has suffered 140
214-personal injury or property damage. Evidence that may satisfy 141
215-this requirement includes, but is not limited to: 142
216- a. Accident reports. 143
217- b. Photographs of an accident scene, physical injuries, or 144
218-property damage. 145
219- c. Medical bills. 146
220- d. Repair bills. 147
221- e. Other receipts or copies of payments rendered. 148
222- 3. If an insurer does not believe that the submitted 149
223-evidence is sufficient evidence, the insurer must provide a 150
199+state is provided coverage if: 126
200+ (c) The policy provides the benefits specified in ss. 127
201+627.419, 627.6562, 627.6574, 627.6575, 627.657 9, 627.6612, 128
202+627.66121, 627.66122, 627.6613, 627.667, 627.6675, 627.6691, and 129
203+627.66911, and complies with the requirements of s. 627.66996. 130
204+ Section 4. Section 627.7293, Florida Statutes, is created 131
205+to read: 132
206+ 627.7293 Towing and labor mandatory disclo sure.— 133
207+ (1) A motor vehicle insurer that provides towing and labor 134
208+coverage as a filed claim must disclose substantially the 135
209+following language on any web -based or electronic platform 136
210+through which a towing or labor claim is made or verbally state 137
211+such language to the claimant if the claim is being made over 138
212+the telephone: 139
213+ 140
214+"YOUR MOTOR VEHICLE INSURANCE POLICY PROVIDES COVERAGE FOR 141
215+TOWING AND LABOR. USE OF THIS COVERAGE REQUIRES A FILING OF A 142
216+CLAIM. SUCH CLAIM FILING WILL REMAIN IN YOUR CLAIMS HISTORY FOR 143
217+USE OF FUTURE UNDERWRITING OF ANY INITIAL OR RENEWAL OFFER MADE 144
218+BY THIS INSURER OR ANY OTHER INSURER." 145
219+ 146
220+ (2) The motor vehicle insurer must obtain express consent 147
221+from the claimant before the submission of a claim. 148
222+ (3) The disclosure requirement under s ubsection (1) does 149
223+not apply if the towing and labor claim is part of a claim for 150
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232232 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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236-written notice of objection within 10 business days after 151
237-receipt of the submitted evidence; otherwise, any objection to 152
238-the sufficiency of the evidence for purposes of this paragraph 153
239-is waived. The submitting party has an additiona l 10 business 154
240-days after receipt of a written notice of objection to provide 155
241-clarification or submit further evidence. 156
242- Section 2. Section 624.341, Florida Statutes, is created 157
243-to read: 158
244- 624.341 Authority of Department of Law Enforcement to 159
245-accept fingerprints of, and exchange criminal history records 160
246-with respect to, certain persons applying to the Office of 161
247-Insurance Regulation. — 162
248- (1) The Legislature finds that criminal activity of 163
249-insurers poses a particular danger to the residents of this 164
250-state. Floridians rely, in good faith, on the honest conduct of 165
251-those who issue and manage insurance policies and other 166
252-insurance instruments i n this state. To safeguard this state's 167
253-residents, the Legislature finds it necessary to ensure that 168
254-organizers, incorporators, subscribers, officers, employees, 169
255-contractors, affiliates, stockholders, directors, owners, 170
256-members, managers, or volunteers of, or any other persons who 171
257-exercise or have the ability to exercise effective control of, 172
258-or who influence or have the ability to influence the 173
259-transaction of the business of, or any other persons involved, 174
260-directly or indirectly, in the organization, opera tion, or 175
236+damages resulting from a crash. 151
237+ Section 5. Section 627.7431, Florida Statutes, is created 152
238+to read: 153
239+ 627.7431 Payment of first -party claims under private 154
240+passenger motor vehicle insurance policies. — 155
241+ (1) As used in this section, the term: 156
242+ (a) "Claim" means any first -party claim made under an 157
243+insurance policy providing coverage for a private passenger 158
244+motor vehicle, as defined in s. 627.732(3)(a). 159
245+ (b) "Factors beyond the control of the insurer" means: 160
246+ 1. Any of the following events which is the basis for the 161
247+office issuing an order finding that such event renders all or 162
248+specified motor vehicle insurers reasonably unable to meet the 163
249+requirements of this section in specified locations and ordering 164
250+that such insurers have additional time as specified by the 165
251+office to comply with the requirements of this section: 166
252+ a. A state of emergency declared by the Governor under s. 167
253+252.36. 168
254+ b. A breach of security that must be reported under s. 169
255+501.171(3). 170
256+ c. An information technology issue. 171
257+ 2. An action by the policyholder or the policyholder's 172
258+representative which constitutes fraud, lack of cooperation, or 173
259+intentional misrepresentation regarding the claim for which 174
260+benefits are owed when such action reasonabl y prevents the 175
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269269 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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273-management of any insurer that is authorized to sell insurance 176
274-do not have a criminal background. 177
275- (2) The Department of Law Enforcement shall accept and 178
276-process fingerprints of organizers, incorporators, subscribers, 179
277-officers, employees, contrac tors, affiliates, stockholders, 180
278-directors, owners, members, managers, or volunteers involved, 181
279-directly or indirectly, in the organization, operation, or 182
280-management of: 183
281- (a) Any insurer or proposed insurer transacting or 184
282-proposing to transact insurance in this state. 185
283- (b) Any other entity that is examined or investigated or 186
284-that is eligible to be examined or investigated under the 187
285-Florida Insurance Code. 188
286- (c) Any other person or entity subject to licensure under 189
287-the Florida Insurance Code. 190
288- (3) A full set of fingerprints of persons described in 191
289-subsection (2) must be submitted to the office or to a vendor, 192
290-an entity, or an agency authorized by s. 943.053(13). The 193
291-office, vendor, entity, or agency shall forward the fingerprints 194
292-to the Department of Law Enf orcement for state processing, and 195
293-the Department of Law Enforcement shall forward the fingerprints 196
294-to the Federal Bureau of Investigation for national processing 197
295-as described in s. 624.34. Fees for state and federal 198
296-fingerprint processing must be borne by the person submitting 199
297-the fingerprints. The state cost for fingerprint processing is 200
273+insurer from complying with any requirement of this section. 176
274+ 3. An action by any repair company which constitutes 177
275+fraud, lack of cooperation, or intentional misrepresentation 178
276+regarding the claim for which benefits are owed when such action 179
277+reasonably prevents the insurer from complying with any 180
278+requirement of this section. 181
279+ 4. Inaccessibility to or delay in the arrival of parts 182
280+necessary for the repair of the vehicle. 183
281+ (2)(a) Within 60 days after a motor vehicle insurer 184
282+receives notice of an initial, reopened, or supplemental first -185
283+party physical damage insurance claim from a policyholder, the 186
284+insurer shall pay or deny the claim or a portion of the claim 187
285+unless the failure to pay or deny is caused by factors beyond 188
286+the control of the insur er. In any of the events described in 189
287+subparagraph (1)(b)1., the office may extend the period for 190
288+payment or denial of a claim up to 30 additional days. 191
289+ (b) The insurer shall provide a reasonable explanation in 192
290+writing to the policyholder of the basis in the insurance 193
291+policy, in relation to the facts or applicable law, for the 194
292+payment, denial, or partial denial of a claim. If the insurer's 195
293+claim payment is less than specified in any insurer's detailed 196
294+estimate of the amount of the loss, the insurer must p rovide a 197
295+reasonable explanation in writing of the difference to the 198
296+policyholder. Any payment of an initial or supplemental claim or 199
297+portion of such claim made 60 days after the insurer receives 200
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306306 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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310-as provided in s. 943.053(3)(e). 201
311- (4) The Department of Law Enforcement may, to the extent 202
312-provided by federal law, exchange state, multistate, and federal 203
313-criminal history records with the office for the purpose of 204
314-issuance, denial, suspension, or revocation of a certificate of 205
315-authority, certification, or license to operate in this state. 206
316- (5) Fingerprints for each person described in subsection 207
317-(2) must be submitted i n accordance with rules adopted by the 208
318-commission. 209
319- (a) Fingerprints may be submitted through a third -party 210
320-vendor authorized by the Department of Law Enforcement. 211
321- (b) The Department of Law Enforcement shall conduct the 212
322-state criminal history background check, and a federal criminal 213
323-history background check shall be conducted through the Federal 214
324-Bureau of Investigation. 215
325- (c) All fingerprints submitted to the Department of Law 216
326-Enforcement must be submitted and entered into the statewide 217
327-automated biometric identification system established in s. 218
328-943.05(2)(b) and available for use in accordance with s. 219
329-943.05(2)(g) and (h). The office shall inform the Department of 220
330-Law Enforcement of any person whose fingerprints are no longer 221
331-required to be retained. 222
332- (d) The costs of fingerprint processing, including the 223
333-costs of retaining the fingerprints, must be borne by the person 224
334-subject to the background checks. 225
310+notice of the claim, or made after the expiration of any 201
311+additional timeframe to pay or deny a claim or a portion of a 202
312+claim authorized pursuant to an order of the office finding 203
313+factors beyond the control of the insurer, whichever is later, 204
314+bears interest at the rate set forth in s. 55.03. Interest 205
315+begins to accrue from the date the insurer receives notice of 206
316+the claim. 207
317+ (c) The provisions of this subsection may not be waived, 208
318+voided, or nullified by the terms of the insurance policy. If 209
319+there is a right to prejudgment interest, the insured must 210
320+select whether to receive prejudgment interest or interest under 211
321+this subsection. Interest is payable when the claim or a portion 212
322+of the claim is paid. Failure to comply with this subsection 213
323+constitutes a violation of the Florida Insurance Code. However, 214
324+failure to comply wi th this subsection does not form the sole 215
325+basis for a private cause of action. 216
326+ (3) The requirements of this section are tolled: 217
327+ (a) During the pendency of any mediation proceeding under 218
328+s. 627.745 or any alternative dispute resolution proceeding 219
329+provided for in the insurance contract. The tolling period ends 220
330+upon the end of the mediation or alternative dispute resolution 221
331+proceeding. 222
332+ (b) Upon the failure of a policyholder or a representative 223
333+of the policyholder to provide material claims information 224
334+requested by the insurer within 10 days after the request was 225
335335
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343343 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
344344
345345
346346
347- (e) The office shall review the results of the state and 226
348-federal criminal history background checks an d determine whether 227
349-the applicant meets the requirements for the certificate of 228
350-authority, certification, or license to operate in this state. 229
351- (6) Statewide criminal records obtained through the 230
352-Department of Law Enforcement, federal criminal records obt ained 231
353-through the Federal Bureau of Investigation, and local criminal 232
354-records obtained through local law enforcement agencies must be 233
355-used by the office for the purpose of issuance, denial, 234
356-suspension, or revocation of certificates of authority, 235
357-certifications, or licenses to operate in this state. 236
358- Section 3. Section 624.347, Florida Statutes, is created 237
359-to read: 238
360- 624.347 Affiliate transactions; managing general agents; 239
361-attorneys in fact; oversight. — 240
362- (1) DEFINITIONS.—As used in this section, the term : 241
363- (a) "Affiliated entity" means any affiliate. The term 242
364-includes a managing general agent, attorney in fact, and 243
365-reciprocal insurer when acting in a capacity that involves 244
366-compensation or contractual arrangements with the insurer. 245
367- (b) "Attorney in fact " has the same meaning as in s. 246
368-629.011. 247
369- (c) "Managing general agent" has the same meaning as in s. 248
370-626.015. 249
371- (d) "Reciprocal insurer" has the same meaning as in s. 250
372-
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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-
382-
383-
384-629.011. 251
385- (2) APPLICABILITY.—This section applies to any insurer 252
386-that contracts with or makes payments to an affiliated entity. 253
387- (3) COMPENSATION ARRANGEMENTS WITH AFFILIATED ENTITIES. — 254
388- (a) Each insurer doing business in this state which pays, 255
389-directly or indirectly, a fee, commission, or other financial 256
390-consideration or payment to any af filiated entity must provide 257
391-to the office documentation demonstrating that such fee, 258
392-commission, or other financial consideration or payment is fair 259
393-and reasonable for each service being provided. In determining 260
394-whether the fee, commission, or other finan cial consideration or 261
395-payment is fair and reasonable, the office must consider all of 262
396-the following: 263
397- 1. The actual cost of each service provided by the 264
398-affiliated entity. 265
399- 2. The relative financial condition of the insurer and the 266
400-affiliated entity. 267
401- 3. The level of debt and how that debt is serviced. 268
402- 4. The amount and purpose of any dividends or other 269
403-payments exchanged between the insurer and any affiliated 270
404-entity, including payments made to or received from the 271
405-affiliated entity, and any payments between affiliated entities. 272
406- 5. Whether the terms of the written contract benefit the 273
407-insurer and are in the best interest of the insurer. 274
408- 6. Any other information as the office reasonably requires 275
409-
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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
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419-
420-
421-in making the determination. 276
422- (b) For each agreement with an affiliated entity in force 277
423-on July 1, 2025, each insurer shall provide to the office no 278
424-later than October 1, 2025, the cost incurred by the affiliated 279
425-entity to provide each service, the dollar amount charged to the 280
426-insurer for each service, and the dollar amount of fees 281
427-forgiven, waived, or reimbursed by the affiliated entity for the 282
428-2 most recent preceding years. If the total dollar amount 283
429-charged to the insurer was greater than the total cost to 284
430-provide services for eithe r year, the insurer must explain how 285
431-it determined the fee was fair and reasonable. For any proposed 286
432-contract with an affiliated entity effective after July 1, 2025, 287
433-the insurer must provide documentation to support that the fee, 288
434-commission, or other finan cial consideration or payment to the 289
435-affiliated entity is fair and reasonable. 290
436- (c)1. All compensation arrangements between an insurer and 291
437-any affiliated entity entered into on or after July 1, 2026, 292
438-must be structured as fee for service. As used in this 293
439-subparagraph, the term "fee for service" means fixed amounts or 294
440-hourly rates for itemized services. 295
441- 2. Compensation may not be based on: 296
442- a. Commission; 297
443- b. Premium volume; 298
444- c. Underwriting profit; or 299
445- d. Financial results of the insurer. 300
446-
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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-
456-
457-
458- (d) This subsection does not prohibit an insurer from 301
459-paying a dividend or other financial arrangement to an 302
460-affiliated entity if such dividend or financial arrangement is 303
461-separately reviewed and approved by the office pursuant to this 304
462-section, s. 628.372, or any other applicable law. 305
463- (e) An agreement between an insurer and an affiliated 306
464-entity must include a termination clause and may not exceed a 307
465-term of 3 years. Any extension of such an agreement must be 308
466-approved by the office before becoming effective. An agr eement 309
467-between an insurer and an affiliated entity may include 310
468-provisions for extension, but may not remain in effect for 311
469-longer than 3 years without a review pursuant to paragraph (a) 312
470-and approval by the office. If the agreement provides for 313
471-extension, the agreement must clearly state that the extension 314
472-is subject to approval by the office at least every 3 years. 315
473- (4) EMERGENCY RESTRICTIONS. — 316
474- (a) During a declared emergency, the office may issue 317
475-orders restricting fund transfers from an insurer to an 318
476-affiliated entity without prior approval. 319
477- (b) Orders under paragraph (a) may apply to all or 320
478-specified insurers and may not exceed 90 days unless extended by 321
479-the office. 322
480- (5) ADDITIONAL OVERSIGHT. — 323
481- (a) Any dividend paid by an insurer to an affiliated 324
482-entity must be reviewed and approved by the office, regardless 325
483-
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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-
493-
494-
495-of whether the affiliated entity is the insurer's parent, 326
496-subsidiary, or otherwise related entity. 327
497- (b) The office may recover improper affiliated entity 328
498-payment transfers, including, but not l imited to, both of the 329
499-following: 330
500- 1. Transfers that violate the approved compensation, 331
501-approved dividend, or any other approved financial arrangement. 332
502- 2. Transfers made while the insurer was undercapitalized. 333
503- (c) An insurer must provide notice to the office at least 334
504-30 days before any pledge of capital or assets to any affiliated 335
505-entity for a loan or financial obligation. Such notice must 336
506-include a description of the collateral, the nature of the 337
507-obligation, and the parties involved. The office may re ject and 338
508-prohibit the pledge if such financial arrangement is not in the 339
509-best interest of the insurer. 340
510- (6) ENFORCEMENT.— 341
511- (a) The office may impose penalties for violations of this 342
512-section. 343
513- (b) The office shall adopt rules to implement this 344
514-section. 345
515- Section 4. Subsection (13) of section 624.424, Florida 346
516-Statutes, is amended to read: 347
517- 624.424 Annual statement and other information. — 348
518- (13) Each insurer doing business in this state which pays 349
519-a fee, commission, or other financial consideration or p ayment 350
520-
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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
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530-
531-
532-to any affiliate directly or indirectly is required upon request 351
533-to provide to the office any information the office deems 352
534-necessary. The fee, commission, or other financial consideration 353
535-or payment to any affiliate must be fair and reasonable. 354
536-Affiliate compensation arrangements must comply with s. 624.347 355
537-and with the requirements of this subsection In determining 356
538-whether the fee, commission, or other financial consideration or 357
539-payment is fair and reasonable, the office shall consider, among 358
540-other things, the actual cost of the service being provided . 359
541- Section 5. Subsection (24) is added to section 626.854, 360
542-Florida Statutes, to read: 361
543- 626.854 "Public adjuster" defined; prohibitions. —The 362
544-Legislature finds that it is necessary for the protection o f the 363
545-public to regulate public insurance adjusters and to prevent the 364
546-unauthorized practice of law. 365
547- (24) A public adjuster, public adjuster apprentice, or 366
548-public adjusting firm shall respond with specific information to 367
549-a written or electronic request f or a claim's status from an 368
550-insured or claimant or his or her designated representative 369
551-within 14 days after receipt of the request and shall document 370
552-the file accordingly. 371
553- Section 6. Section 627.4823, Florida Statutes, is created 372
554-to read: 373
555- 627.4823 Universal life insurance policies. — 374
556- (1) As used in this section, the term: 375
557-
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565-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
566-
567-
568-
569- (a) "Cash surrender value" means the net cash surrender 376
570-value, plus any outstanding amounts as policy loans. 377
571- (b) "Fixed-premium universal life insurance policy" means 378
572-a universal life insurance policy other than a flexible -premium 379
573-universal life insurance policy. 380
574- (c) "Flexible-premium universal life insurance policy" 381
575-means a universal life insurance policy that allows the 382
576-policyowner to vary, independently of each other, the amount of 383
577-timing of one or more premium payments or the amount of 384
578-insurance. 385
579- (d) "Net cash surrender value" means the maximum amount 386
580-payable to the policyowner upon surrender. 387
581- (e) "Policy value" means the value of any individual life 388
582-insurance policy, rider, group master policy, or individual 389
583-certificate, under the provisions of which separately identified 390
584-interest credits, other than in connection with dividend 391
585-accumulations, premium deposit funds, or other supplementary 392
586-accounts, and mortality and exp ense charges are made to the 393
587-policy. A universal life insurance policy may provide for other 394
588-credits and charges, such as charges for the cost of benefits 395
589-provided by a rider. 396
590- (f) "Universal life insurance policy" means any individual 397
591-life insurance policy, rider, group master policy, or individual 398
592-certificate, under the provisions of which separately identified 399
593-interest credits and mortality and expense charges are made to 400
594-
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602-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
603-
604-
605-
606-the policy. The policy, rider, or certificate does not apply to 401
607-policies, riders, group master policies, or individual 402
608-certificates in connection with dividend accumulations, premium 403
609-deposit funds, or other supplementary accounts. A universal life 404
610-insurance policy may provide for other credits and charges, such 405
611-as charges for the cost o f benefits provided by a rider. 406
612- (2)(a) A universal life insurance policy issued in this 407
613-state must provide that the policyowner will be sent without 408
614-charge, at least annually, a report that will serve to keep the 409
615-policyowner advised of the status of the policy. The end date of 410
616-the current reporting period may not be more than 3 months 411
617-before the date of the mailing of the report. 412
618- (b) The report must include all of the following: 413
619- 1. The beginning and end dates of the current reporting 414
620-period. 415
621- 2. The policy value at the end of the previous reporting 416
622-period and at the end of the current reporting period. 417
623- 3. The total amounts, identified by each type, which have 418
624-been credited or debited to the policy value during the current 419
625-reporting period. 420
626- 4. The current death benefit at the end of the current 421
627-reporting period on each life covered by the policy. 422
628- 5. The net cash surrender value of the policy as of the 423
629-end of the current reporting period. 424
630- 6. The amount of outstanding loans, if any, as of the end 425
631-
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639-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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641-
642-
643-of the current reporting period. 426
644- 7. For a fixed-premium universal life insurance policy, 427
645-if, assuming the guaranteed interest, mortality and expense 428
646-loads, and continued scheduled premium payment, the policy's net 429
647-cash surrender value is such that it wou ld not maintain 430
648-insurance in force until the end of the next reporting period, a 431
649-notice to this effect in the report. 432
650- 8. For a flexible-premium universal life insurance policy, 433
651-if, assuming the guaranteed interest and the mortality and 434
652-expense loads, the policy's net cash surrender value will not 435
653-maintain insurance in force until the end of the next reporting 436
654-period unless further premium payments are made, a notice to 437
655-this effect in the report. 438
656- 9. For a fixed-premium or flexible-premium universal life 439
657-insurance policy, if, assuming the guaranteed interest and the 440
658-mortality and expense loads, the policy's net cash surrender 441
659-value will not maintain insurance in force until the maturity of 442
660-the contract, the projected date on which policy values will be 443
661-insufficient to continue coverage in force. 444
662- (3) This section applies to all universal life insurance 445
663-policies except variable contracts as defined in s. 627.8015. 446
664- Section 7. Section 628.371, Florida Statutes, is amended 447
665-to read: 448
666- 628.371 Dividends to s tockholders.— 449
667- (1) As used in this section, the term "affiliated entity" 450
668-
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676-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
677-
678-
679-
680-has the same meaning as in s. 624.347(1). 451
681- (2)(1) A domestic stock insurer or an affiliated entity 452
682-shall not pay any dividend or distribute cash or other property 453
683-to stockholders except out of that part of its available and 454
684-accumulated surplus funds which is derived from realized net 455
685-operating profits on its business and net realized capital 456
686-gains. 457
687- (3)(2) Dividend payments or distributions to stockholders, 458
688-without prior written app roval of the office, shall not exceed 459
689-the larger of: 460
690- (a) The lesser of 10 percent of surplus or net gain from 461
691-operations (life and health companies) or net income (property 462
692-and casualty companies), not including realized capital gains, 463
693-plus a 2-year carryforward for property and casualty companies; 464
694- (b) Ten percent of surplus, with dividends payable 465
695-constrained to unassigned funds minus 25 percent of unrealized 466
696-capital gains; 467
697- (c) The lesser of 10 percent of surplus or net investment 468
698-income (net gain before capital gains for life and health 469
699-companies) plus a 3-year carryforward (2 -year carryforward for 470
700-life and health companies) with dividends payable constrained to 471
701-unassigned funds minus 25 percent of unrealized capital gains. 472
702- (4)(3) In lieu of the provisions in subsection (3) (2), an 473
703-insurer or an affiliated entity may pay a dividend or make a 474
704-distribution without the prior written approval of the office 475
705-
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713-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
714-
715-
716-
717-when: 476
718- (a) The dividend is equal to or less than the greater of: 477
719- 1. Ten percent of the insurer's or the affiliated entity's 478
720-surplus as to policyholders derived from realized net operating 479
721-profits on its business and net realized capital gains; or 480
722- 2. The insurer's or the affiliated entity's entire net 481
723-operating profits and realized net capital gains derived during 482
724-the immediately preceding calendar year; and 483
725- (b) The insurer or the affiliated entity will have surplus 484
726-as to policyholders equal to or exceeding 115 percent of the 485
727-minimum required statutory surplus as to policyholders after the 486
728-dividend or distribution is made; and 487
729- (c) The insurer or the affiliated entity has filed notice 488
730-with the office at least 10 business days before prior to the 489
731-dividend payment or distribution, or such shorter period of time 490
732-as approved by the office on a case -by-case basis. Such notice 491
733-shall not create a right in the office to approve or disapprove 492
734-a dividend otherwise properly payable hereunder; and 493
735- (d) The notice includes a certification by an officer of 494
736-the insurer or the affiliated entity attesting that after 495
737-payment of the dividend or distribution the insurer or the 496
738-affiliated entity will have at least 115 percent of required 497
739-statutory surplus as to policyholders. 498
740- (5)(4) The office shall not approve a dividend or 499
741-distribution in excess of the maximum amount allowed in 500
742-
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750-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
751-
752-
753-
754-subsection (2) (1) unless, considering the following factors, it 501
755-determines that the distribution or dividend would not 502
756-jeopardize the financial condition of the insurer or the 503
757-affiliated entity: 504
758- (a) The liquidity, quality, and diversification of the 505
759-insurer's assets and the effect on its ability to meet its 506
760-obligations. 507
761- (b) Reduction of investment portfolio and investment 508
762-income. 509
763- (c) Effects on the written premium to surplus ratios as 510
764-required by the Flori da Insurance Code. 511
765- (d) Industrywide financial conditions. 512
766- (e) Prior dividend distributions of the insurer or the 513
767-affiliated entity. 514
768- (f) Whether the dividend is only a "pass -through" dividend 515
769-from a subsidiary of the insurer or the affiliated entity . 516
770- (6)(5) A dividend or distribution by a not -for-profit 517
771-insurance company subsidiary to its mutual insurance holding 518
772-company, directly or indirectly through one or more intermediate 519
773-holding companies, pursuant to part III of this chapter, which 520
774-meets the requirements of this section and which applies to a 521
775-stock insurer, is permitted under this section. 522
776- (7) Approval of a dividend, distribution, or other 523
777-financial arrangement under this section must comply with the 524
778-requirements of s. 624.347. 525
779-
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787-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
788-
789-
790-
791- Section 8. Section 628.372, Florida Statutes, is created 526
792-to read: 527
793- 628.372 Authority over affiliate dividends. — 528
794- (1) The office has oversight and regulatory authority over 529
795-the issuance of dividends or other financial arrangements paid 530
796-to an affiliate. 531
797- (2) There may be no declaration or distribution of such 532
798-dividends or other financial arrangements without prior approval 533
799-of the office. 534
800- (3) Dividends and other financial arrangements must comply 535
801-with the requirements of s. 624.347. 536
802- (4) Any unauthorized dividend, distri bution, or other 537
803-financial arrangement may result in penalties determined by the 538
804-office. 539
805- (5) The office must adopt rules to implement this section. 540
806- Section 9. Paragraph (a) of subsection (1) and paragraph 541
807-(b) of subsection (4) of section 628.461, Flo rida Statutes, are 542
808-amended to read: 543
809- 628.461 Acquisition of controlling stock. — 544
810- (1) A person may not, individually or in conjunction with 545
811-any affiliated person of such person, acquire directly or 546
812-indirectly, conclude a tender offer or exchange offer for , enter 547
813-into any agreement to exchange securities for, or otherwise 548
814-finally acquire 10 percent or more of the outstanding voting 549
815-securities of a domestic stock insurer or of a controlling 550
816-
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824-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
825-
826-
827-
828-company, unless: 551
829- (a) The person or affiliated person has filed wit h the 552
830-office and sent by registered mail to the principal office of 553
831-the insurer and controlling company a letter of notification 554
832-regarding the transaction or proposed transaction within 5 days 555
833-after any form of tender offer or exchange offer is proposed, o r 556
834-within 5 days after the acquisition of the securities if no 557
835-tender offer or exchange offer is involved. The notification 558
836-must be provided on forms prescribed by the commission 559
837-containing information determined necessary to understand the 560
838-transaction and identify all purchasers and owners involved; 561
839- 562
840-A filing required under this subsection must be made for any 563
841-acquisition that equals or exceeds 10 percent of the outstanding 564
842-voting securities. 565
843- (4) 566
844- (b) Any corporation, association, or trust filing the 567
845-statement required by this section shall give all required 568
846-information that is within the knowledge of the directors, 569
847-officers, or trustees (or others performing functions similar to 570
848-those of a director, officer, or trustee) of the corporation, 571
849-association, or trust making the filing and of any person 572
850-controlling either directly or indirectly such corporation, 573
851-association, or trust. A copy of the statement and any 574
852-amendments to the statement shall be se nt by registered mail to 575
853-
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861-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
862-
863-
864-
865-the insurer at its principal office within the state and to any 576
866-controlling company at its principal office. If any material 577
867-change occurs in the facts set forth in the statement filed with 578
868-the office and sent to such insurer or co ntrolling company 579
869-pursuant to this section, an amendment setting forth such 580
870-changes shall be filed immediately with the office and sent 581
871-immediately to such insurer and controlling company. 582
872- Section 10. Subsection (5) of section 629.011, Florida 583
873-Statutes, is amended, and subsections (6), (7), and (8) are 584
874-added to that section, to read: 585
875- 629.011 Definitions. —As used in this part, the term: 586
876- (5) "Reciprocal insurer" means an unincorporated 587
877-aggregation of subscribers operating individually and 588
878-collectively through an attorney in fact to provide reciprocal 589
879-insurance among themselves. 590
880- (a) An assessable reciprocal insurer is a reciprocal 591
881-insurer that is able to levy an assessment on its subscribers to 592
882-make up any shortfall in capital and surplus to cover cla ims and 593
883-expenses as specified in s. 629.231. 594
884- (b) A nonassessable reciprocal insurer is a reciprocal 595
885-insurer authorized under s. 629.091(3) or s. 629.291(5) to issue 596
886-policies when there is no recourse against subscribers for any 597
887-shortfall in capital and s urplus to cover claims and expenses. 598
888- (6) "Subscriber contribution" means any transfer of money 599
889-by a subscriber of a reciprocal insurer to the reciprocal 600
890-
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898-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
899-
900-
901-
902-insurer in excess of the premium approved by the office, when 601
903-such money is counted as surplus for th e reciprocal insurer or 602
904-used to pay surplus notes. 603
905- (7) "Subscriber savings account" means any account in 604
906-which a reciprocal insurer allocates money to be held in whole 605
907-or in part for the benefit of an individual subscriber, other 606
908-than accounts holding m oney for the payment of a specific claim 607
909-by or settlement of a specific legal dispute with that 608
910-individual subscriber. 609
911- (8) "Subscribers' advisory committee" means the governing 610
912-committee of a reciprocal insurer which is formed in compliance 611
913-with s. 629.201 and represents the interests of the subscribers. 612
914- Section 11. Section 629.071, Florida Statutes, is amended 613
915-to read: 614
916- 629.071 Surplus funds required. — 615
917- (1) An assessable A domestic reciprocal insurer hereunder 616
918-formed, if it has otherwise complied w ith the applicable 617
919-provisions of this code, may be authorized to transact insurance 618
920-if it has and thereafter maintains surplus funds of not less 619
921-than $3 million $250,000. 620
922- (2) A nonassessable reciprocal insurer, if it has 621
923-otherwise complied with the appli cable provisions of this code, 622
924-may be authorized to transact insurance if it has and thereafter 623
925-maintains a surplus as to policyholders which is equal to that 624
926-required under s. 624.408 for a domestic stock insurer 625
927-
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935-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
936-
937-
938-
939-authorized to transact like kinds of insur ance In addition to 626
940-the surplus required to be maintained under subsection (1), the 627
941-insurer shall have, when first so authorized, an expendable 628
942-surplus of not less than $750,000 . 629
943- Section 12. Section 629.082, Florida Statutes, is created 630
944-to read: 631
945- 629.082 Reciprocal affiliates. —The attorney in fact of a 632
946-reciprocal insurer is an affiliated entity of the reciprocal 633
947-insurer for purposes of ss. 624.10 and 624.347. 634
948- Section 13. Section 629.121, Florida Statutes, is amended 635
949-to read: 636
950- 629.121 Attorney in fact Attorney's bond.— 637
951- (1) Concurrently with the filing of the declaration 638
952-provided for in s. 629.081, the attorney in fact of a domestic 639
953-reciprocal insurer shall file with the office a bond in favor of 640
954-this state for the benefit of all persons damaged as a result of 641
955-breach by the attorney in fact of the conditions of his or her 642
956-bond as set forth in subsection (2). The bond shall be executed 643
957-by the attorney in fact and by an authorized corporate surety 644
958-and shall be subject to the approval of the office. 645
959- (2) The bond shall be in the sum of $300,000 $100,000, 646
960-aggregate in form, the bond conditioned that the attorney in 647
961-fact will faithfully account for all moneys and other property 648
962-of the insurer coming into his or her hands, and that he or she 649
963-will not withdraw or appropriate to his or her own use from the 650
964-
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972-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
973-
974-
975-
976-funds of the insurer any moneys or property to which he or she 651
977-is not entitled under the power of attorney. 652
978- (3) The bond shall provide that it is not subject to 653
979-cancellation unless 30 days' advance notic e in writing of 654
980-cancellation is given to both the attorney in fact and the 655
981-office. 656
982- Section 14. Section 629.162, Florida Statutes, is created 657
983-to read: 658
984- 629.162 Subscriber contributions. — 659
985- (1) Reciprocal insurers may, subject to prior approval by 660
986-the office, require contributions from subscribers in addition 661
987-to premiums approved by the office. 662
988- (2) A reciprocal insurer shall clearly disclose required 663
989-subscriber contributions on the declarations page of any policy 664
990-issued by the reciprocal insurer, sepa rate from any cost 665
991-associated with the premium. 666
992- (3) Reciprocal insurers must provide subscribers an annual 667
993-report detailing how each dollar of subscriber contributions was 668
994-allocated or spent. 669
995- Section 15. Section 629.163, Florida Statutes, is created 670
996-to read: 671
997- 629.163 Subscriber savings accounts. — 672
998- (1) Reciprocal insurers may establish subscriber savings 673
999-accounts. 674
1000- (2) Moneys placed in subscriber savings accounts are not 675
1001-
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1009-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
1010-
1011-
1012-
1013-considered distributions under s. 629.164. 676
1014- (3) Subscriber savings accounts are subject to the 677
1015-following requirements: 678
1016- (a) Reciprocal insurers must inform each subscriber, in 679
1017-writing, of the limitations and restrictions imposed upon the 680
1018-use or possession of moneys held in subscriber savings accounts. 681
1019- (b) Reciprocal insurers mu st inform each subscriber, in 682
1020-writing, of the procedures used to distribute moneys to 683
1021-subscriber savings accounts and any calculations used to 684
1022-determine the amount of moneys to be distributed to subscriber 685
1023-savings accounts. 686
1024- (c) Advertisements marketing t he benefits of subscriber 687
1025-savings accounts must note the limitations and restrictions 688
1026-imposed upon the use or possession of moneys held in subscriber 689
1027-savings accounts. 690
1028- (d) Upon cancellation or nonrenewal of a subscriber's 691
1029-policy, the subscriber is entitl ed to all moneys held in the 692
1030-subscriber's savings account, except when such moneys are 693
1031-otherwise allocated by law or contract, or when such 694
1032-distribution is prohibited by order of the office. 695
1033- Section 16. Section 629.164, Florida Statutes, is created 696
1034-to read: 697
1035- 629.164 Subscriber distributions. — 698
1036- (1) Reciprocal insurers may make distributions to 699
1037-subscribers from their subscriber savings accounts. 700
1038-
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1046-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
1047-
1048-
1049-
1050- (2) The subscribers' advisory committee has the sole 701
1051-authority to authorize distributions, subject to prior written 702
1052-approval by the office. 703
1053- (3) Any reciprocal insurer that otherwise authorizes 704
1054-distributions but prohibits subscribers from receiving 705
1055-distributions for a specified period of time, including after 706
1056-initial subscription, must renew the subscriber's p olicy for 707
1057-that period of time plus 1 additional policy year. This 708
1058-subsection does not prohibit the cancellation or nonrenewal of a 709
1059-policy pursuant to s. 624.4133 or by order of the office. 710
1060- (4) A reciprocal insurer may return to its subscribers any 711
1061-unused premiums, savings, or credits accruing to their accounts. 712
1062-Such distribution may not unfairly discriminate between classes 713
1063-of risks or policies, or between subscribers, but may vary as to 714
1064-classes of subscribers based on the experience of the classes. 715
1065- (5) In addition to the option provided in subsection (4), 716
1066-a domestic reciprocal insurer may, upon the prior written 717
1067-approval of the office, pay to its subscribers a portion of 718
1068-unassigned funds of up to 10 percent of surplus, with 719
1069-distribution limited to 50 pe rcent of net income from the 720
1070-previous calendar year. Such distribution may not unfairly 721
1071-discriminate between classes of risks or policies, or between 722
1072-subscribers, but may vary as to classes of subscribers based on 723
1073-the experience of the classes. 724
1074- (6) Distributions and other financial arrangements must 725
1075-
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1083-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
1084-
1085-
1086-
1087-comply with the requirements of s. 624.347. 726
1088- Section 17. Section 629.171, Florida Statutes, is amended 727
1089-to read: 728
1090- 629.171 Annual statement. — 729
1091- (1) The subscribers' advisory committee shall procure an 730
1092-audited annual statement of the accounts and records of the 731
1093-insurer and the attorney in fact. The statement of the insurer 732
1094-must be prepared by an independent auditor at the expense of the 733
1095-reciprocal insurer and must be available for inspection by any 734
1096-subscriber. The statement of the attorney in fact must be 735
1097-prepared by an independent auditor at the expense of the 736
1098-attorney in fact. 737
1099- (2)(1) The annual statement filing of a reciprocal insurer 738
1100-must shall be submitted made and filed by its attorney in fact. 739
1101- (3)(2) The audited statement of the attorney in fact must 740
1102-shall be submitted with the annual statement filing of the 741
1103-reciprocal insurer, as required under s. 624.424, and 742
1104-supplemented by such information as may be required by the 743
1105-office relative to the affairs an d transactions of the attorney 744
1106-in fact relating insofar as they relate to the reciprocal 745
1107-insurer. 746
1108- Section 18. Section 629.201, Florida Statutes, is amended 747
1109-to read: 748
1110- 629.201 Subscribers' advisory committee. —Each domestic 749
1111-reciprocal insurer must have a subscribers' advisory committee 750
1112-
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1120-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
1121-
1122-
1123-
1124-representing the interests of the subscribers. 751
1125- (1) The subscribers' advisory committee of a domestic 752
1126-reciprocal insurer exercising the subscribers' rights must shall 753
1127-be formed in compliance with this section and selected under 754
1128-such rules as the subscribers adopt. Such rules, along with any 755
1129-amendments, must be approved by the office before becoming 756
1130-effective. 757
1131- (2) Not less than two -thirds of such committee shall be 758
1132-subscribers other than the attorney, or any person employed by, 759
1133-representing, or having a financial interest in the attorney. 760
1134- (2)(3) The subscribers' advisory committee shall perform 761
1135-all of the following duties : 762
1136- (a) Supervise the finances of the insurer .; 763
1137- (b) Supervise the insurer's operations to such extent as 764
1138-to ensure assure conformity with the subscribers' agreement , and 765
1139-power of attorney, and other governing documents. ; 766
1140- (c) Hire independent auditors, counsel, and other experts 767
1141-at the expense of the insurer a s necessary to fulfill the 768
1142-committee's duties. Procure the audit of the accounts and 769
1143-records of the insurer and of the attorney at the expense of the 770
1144-insurer; and 771
1145- (d) Exercise any Have such additional powers and functions 772
1146-as may be conferred by the subsc ribers' agreement. 773
1147- (3) The initial subscribers' advisory committee must be 774
1148-appointed by the original subscribers or the attorney in fact. 775
1149-
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1157-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
1158-
1159-
1160-
1161-Within 6 months after the reciprocal insurer is authorized to 776
1162-transact insurance, at least two -thirds of the committee members 777
1163-must be elected as provided for in subsections (4) and (5). 778
1164- (4) The subscribers' advisory committee must consist of 779
1165-subscribers of the domestic reciprocal insurer. At least two -780
1166-thirds of the subscribers' advisory committee must consist of 781
1167-subscribers who are independent of, not employed by, not 782
1168-representing, not selected by, and without any financial 783
1169-interest in the attorney in f act. The independent subscribers 784
1170-must be elected by the subscribers of the domestic reciprocal 785
1171-insurer. 786
1172- (5) Any rules governing the election of subscribers to the 787
1173-subscribers' advisory committee must require all of the 788
1174-following: 789
1175- (a) An electorate co mposed exclusively of all subscribers 790
1176-of the reciprocal insurer. 791
1177- (b) Terms of not more than 5 years. 792
1178- (c) A process that allows subscribers to nominate other 793
1179-subscribers for election to the subscribers' advisory committee. 794
1180- (6) If a reciprocal insurer has more than 50 subscribers, 795
1181-the attorney in fact must provide a platform by which 796
1182-subscribers can communicate with each other regarding the 797
1183-subscribers' advisory committee election process. 798
1184- Section 19. Section 629.271, Florida Statutes, is 799
1185-repealed. 800
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1194-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
1195-
1196-
1197-
1198- Section 20. Effective upon this act becoming a law, 801
1199-subsections (1) and (2) of section 629.291, Florida Statutes, 802
1200-are amended to read: 803
1201- 629.291 Merger or conversion. — 804
1202- (1) A reciprocal insurer, upon affirmative vote of not 805
1203-less than two-thirds of its subscribers who vote on such merger 806
1204-or conversion pursuant to due notice, and subject to approval by 807
1205-the office of the terms therefor, may merge with another 808
1206-reciprocal insurer or be converted to a stock or mutual insurer, 809
1207-to be thereafter governed by the applicable sections of the 810
1208-Florida Insurance Code. However, a domestic stock insurer may 811
1209-not convert to a reciprocal insurer. 812
1210- (2) A plan to merge a reciprocal insurer with another 813
1211-reciprocal insurer or for conversion of the reciprocal insurer 814
1212-to a stock or mutual insurer must be filed with the office on 815
1213-forms adopted by the commission office and must contain such 816
1214-information as the office reasonably requires to evaluate the 817
1215-transaction. 818
1216- Section 21. Section 629.301, Florida Statutes, is amended 819
1217-to read: 820
1218- 629.301 Impaired reciprocal insurers. — 821
1219- (1) If the assets of a domestic reciprocal insurer are at 822
1220-any time insufficient to discharge its liabilities, other than 823
1221-any liability on account of funds contributed by the attorney in 824
1222-fact or others, and to maintain the required surplus, its 825
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1231-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
1232-
1233-
1234-
1235-attorney in fact shall forthwith make up the deficiency or levy 826
1236-an assessment upon the subscribers for the amount needed to make 827
1237-up the deficiency, but subject to the limitation set forth in 828
1238-the power of attorney or policy . 829
1239- (2) If the attorney in fact fails to make up such 830
1240-deficiency or to make the assessment within 30 days after the 831
1241-office orders the attorney in fact him or her to do so, or if 832
1242-the deficiency is not fully made up within 60 days after the 833
1243-date the assessment was made, the insurer shall be deemed 834
1244-insolvent and shall be proceeded against in the same manner as 835
1245-any other insurer under chapter 631 and the insurance as 836
1246-authorized by this code. 837
1247- (3) If liquidation of a reciprocal such an insurer is 838
1248-ordered, the receiver shall levy an assessment shall be levied 839
1249-upon the subscribers an assessment for such an amount as the 840
1250-receiver determines to be necessary to discharge al l liabilities 841
1251-of the insurer. The liabilities must be , subject to limits as 842
1252-provided by this chapter, as the office determines to be 843
1253-necessary to discharge all liabilities of the insurer, exclusive 844
1254-of any funds contributed by the attorney in fact or other 845
1255-persons, but inclusive of including the reasonable cost of the 846
1256-liquidation. The assessment is subject to any limits set forth 847
1257-in the power of attorney, the policy, or this chapter. 848
1258- Section 22. Section 629.401, Florida Statutes, is 849
1259-repealed. 850
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1268-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
1269-
1270-
1271-
1272- Section 23. Section 629.520, Florida Statutes, is 851
1273-repealed. 852
1274- Section 24. Section 629.56, Florida Statutes, is created 853
1275-to read: 854
1276- 629.56 Unearned premium reserves. —A reciprocal insurer 855
1277-must maintain an unearned premium reserve at all times and as 856
1278-required under s. 625.051. 857
1279- Section 25. Subsection (2) of section 624.45, Florida 858
1280-Statutes, is amended to read: 859
1281- 624.45 Participation of financial institutions in 860
1282-reinsurance and in insurance exchanges. —Subject to applicable 861
1283-laws relating to financial institutions a nd to any other 862
1284-applicable provision of the Florida Insurance Code, any 863
1285-financial institution or aggregation of such institutions may: 864
1286- (2) Participate, directly or indirectly, as an 865
1287-underwriting member or as an investor in an underwriting member 866
1288-of any insurance exchange authorized in accordance with s. 867
1289-629.401, which underwriting member transacts only aggregate or 868
1290-specific excess insurance over underlying self -insurance 869
1291-coverage for self-insurance organizations authorized under the 870
1292-Florida Insurance Code , for multiple-employer welfare 871
1293-arrangements, or for workers' compensation self -insurance 872
1294-trusts, in addition to any reinsurance the underwriting member 873
1295-may transact. 874
1296- 875
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1305-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
1306-
1307-
1308-
1309-Nothing in this section shall be deemed to prohibit a financial 876
1310-institution from engagin g in any presently authorized insurance 877
1311-activity. 878
1312- Section 26. Reciprocal insurers licensed before July 1, 879
1313-2025, have until July 1, 2026, to comply with the changes made 880
1314-to subscribers' advisory committees in s. 629.201, Florida 881
1315-Statutes. Reciprocal ins urers licensed before July 1, 2025, have 882
1316-until July 1, 2027, to comply with the unearned premium reserve 883
1317-requirements imposed under s. 629.56, Florida Statutes. 884
1318- Section 27. Except as otherwise expressly provided in this 885
1319-act and except for this section, which shall take effect upon 886
1320-this act becoming a law, this act shall take effect July 1, 887
1321-2025. 888
347+received. The tolling period ends upon the insurer's receipt of 226
348+the requested information. Tolling under this paragraph applies 227
349+only to requests sent by the insurer to the policyholder or a 228
350+representative of the policyholder at least 15 days before the 229
351+insurer is required to pay or deny the claim or a portion of the 230
352+claim under subsection (2). 231
353+ (4) This section does not apply to any of the following: 232
354+ (a) An insurance policy providing coverage fo r a 233
355+commercial motor vehicle, as defined in s. 627.732(3)(b). 234
356+ (b) Any portion of a claim covered if the portion of the 235
357+claim is based on coverage for: 236
358+ 1. Personal injury protection. 237
359+ 2. Property damage liability. 238
360+ 3. Bodily injury. 239
361+ 4. Uninsured motorists or underinsured motorists. 240
362+ 5. Medical payments. 241
363+ Section 6. This act shall take effect July 1, 2025. 242