Meeting Packet — Insurance & Banking Subcommittee (Florida House, February 14, 2023)

Summary

Meeting Packet of the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee for Tuesday, February 14, 2023, 1:30 PM to 3:30 PM in Morris Hall. The agenda lists consideration of an HB titled Motor Vehicle Liability Policies by Truenow, and an overview presentation by Austin Stowers, Director of Legislative Affairs, Department of Financial Services. The packet includes a House of Representatives staff analysis, which states that the bill amends Florida's Financial Responsibility Law to permit risk retention groups to provide required motor vehicle coverage to group members. The analysis states that the bill has an effective date of July 1, 2023, and an unknown but likely insignificant negative fiscal impact on state government.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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Insurance & Banking Subcommittee
Tuesday, February 14, 2023
1:30 PM - 3:30 PM
Morris Hall (17 HOB)

Meeting Packet

Paul Renner Wyman Duggan
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Paul Renner Wyman Duggan
Speaker Chair

Meeting Agenda

Tuesday, February 14, 2023
1:30 PM – 3:30 PM
Morris Hall (17 HOB)

I. Call to Order

II. Roll Call

III. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

• HB 57 Motor Vehicle Liability Policies by Truenow

V. Presentation:

• Overview – Department of Financial Services
Austin Stowers, Director of Legislative Affairs

VI. Closing Remarks

VII. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 57
HOUSE OF REPRESENTATIVES STAFF ANALYSIS

BILL #: HB 57 Motor Vehicle Liability Policies
SPONSOR(S): Truenow
TIED BILLS: IDEN./SIM. BILLS: SB 516

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF

1) Insurance & Banking Subcommittee Herendeen Lloyd

2) Commerce Committee

SUMMARY ANALYSIS
Owners or operators of motor vehicles must insure against losses from liability for bodily injury, death, and
property damage. They may do so by purchasing auto insurance from an insurance carrier authorized to do
business in Florida by the Office of Insurance Regulation (OIR), or by obtaining a certificate of self-insurance
from the Florida Department of Highway Safety and Motor Vehicles (HSMV) after demonstrating the ability to
cover potential losses arising out of the ownership, maintenance, or use of a motor vehicle. HSMV does not
recognize insurance issued by a risk retention group as a method of proving financial responsibility.

The bill amends Florida’s Financial Responsibility Law to permit risk retention groups, which are authorized by
federal law, to provide the required motor vehicle coverage to group members. Unlike state-authorized
insurers, risk retention groups only sell insurance to eligible members, do not submit rate and form filings to
state regulators, and are not members of state guaranty associations that manage claims if an insurer becomes
insolvent.

Specifically, the bill permits risk retention groups that have strong ratings from A.M. Best Company (an “A” or
higher rating for financial strength and “VIII” or higher for financial size) to provide commercial auto insurance
coverage to their members and shareholders.

The bill has an unknown but likely insignificant negative fiscal impact on state government and no impact on
local governments.

The bill has an effective date of July 1, 2023.

FULL ANALYSIS

This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/10/2023
I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:

Current Situation

Florida’s Financial Responsibility Law

Chapter 324, F.S., sets forth the financial responsibility laws for owners or operators of motor vehicles,
whether they be used for personal or commercial purposes.

In general, the owner or operator of a motor vehicle must insure against losses from liability for bodily
injury, death, and property damage by 1) purchasing auto insurance from an insurance carrier authorized
by OIR to do business in Florida;1 or 2) obtaining a certificate of self-insurance from HSMV after
demonstrating the ability to cover potential losses arising out of the ownership, maintenance, or use of a
motor vehicle.2

OIR licenses insurance carriers and reviews policy contracts and premium rates of its licensees. 3 An
insurance carrier may not deliver an auto insurance policy in Florida unless the policy includes coverages
for both personal injury and property damage.4

HSMV administers the Financial Responsibility Law by requiring all licensed insurance companies to
provide electronic notification of all policies that are issued or cancelled. 5 Vehicle owners must show
proof of personal injury protection and property damage liability coverage to register a vehicle,6 and must
provide proof of bodily injury liability coverage if they are involved in an accident and charged with a
moving violation.7 A vehicle owner who fails to maintain continuous coverage may have his or her driver’s
license and registration suspended for up to three years. 8

Required coverages vary based on the use of a motor vehicle.

For individual motorists, the law requires $10,000 in personal injury protection and $10,000 for property
damage.9 However, if a driver of a private passenger vehicle has caused an accident involving bodily
injury or death, the required minimum bodily injury liability coverage is $10,000 per person and $20,000
per accident.10 Additionally, if a driver has been convicted of driving under the influence of alcohol, the
motorist must maintain minimum bodily injury liability coverage of $10,000 per person and $20,000 per
accident for three years after the license is reinstated.11

For leased motor vehicles, the lessor is not liable for the actions of a lessee so long as the lease requires
$100,000/$300,000 bodily injury liability and $50,000 property damage liability or not less than $500,000
combined property damage and bodily injury liability.12

1 S. 324.021(8), F.S.
2 Ss. 324.161 and 324.171, F.S. Also see Florida Department of Highway Safety and Motor Vehicles, Self-Insuranc e,
https://www.flhsmv.gov/ins urance/self-insurance/firm/ (last visited Feb. 10, 2023).
3 Ss. 624.404, 627.062, 627.410, and 627.4102.
4 S. 627.7275, F.S.
5 Ss. 324.0221, 324.252, and Rules 15A-3.007, and 15A-3.012, F.A.C.
6 Ss. 324.022, 324.023, and Rule 15A-3.006, F.A.C.
7 S. 324.021, F.S. Also see, Florida Highway Safety and Motor Vehicles, Florida Insurance Requirements ,

https://www.flhsmv.gov/ins urance/ (last visited Feb. 10, 2023).
8 S. 324.0221, F.S.
9 Ss. 324.021(7), § 324.022, and 627.736, F.S.
10 Ss. 324.051, 324.031, 324.061, F.S.
11 S. 324.023, F.S.
12 S. 324.021(9), F.S.
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For-hire passenger vehicles like taxicabs and limousines must have bodily injury liability coverage of
$125,000 per person and $250,000 per occurrence; and $50,000 property damage coverage.13

Commercial motor vehicles operating on Florida’s highways are subject to state and federal regulations
related to size and weight limits, safety standards, and registration requirements. Commercial vehicles
that weigh 10,001 pounds or more, and engage in interstate commerce or haul hazardous materials, are
subject to federal law, where required coverages range from $750,000 to $5 million. 14 Commercial
vehicles that weigh 26,001 pounds or more, operate only within Florida, and do not transport hazardous
materials are subject to Florida law, where required coverages range from $50,000 to $300,000. 15

Voluntary coverages include collision (repairs the motor vehicle), comprehensive (losses from events
other than collision, like fire or theft or wind or vandalism), uninsured motorist (losses that exceed no-
fault coverage when an at-fault driver has no liability insurance or inadequate liability insurance), medical
(for losses that exceed no-fault coverage), rental reimbursement, and accidental death or
dismemberment.

When the owner or operator of a motor vehicle purchases liability insurance to satisfy the financial
responsibility law, the policy must be issued by an insurance company authorized to do business in
Florida.16

When an owner or operator self-insures a vehicle or fleet of vehicles, the owner or operator must provide
audited financial statements to HSMV showing an unencumbered net worth that satisfies the Financial
Responsibility Law.17

Risk Retention Groups

Federal law treats risk retention groups – which may sell insurance only to eligible members – differently
than traditional insurance companies.

Authorized insurers must be licensed in every state in which they operate and the domicile state serves
as the primary regulator. Risk retention groups need to be licensed as a liability insurer in only one state;
further, those that were chartered prior to 1985 may operate under the laws of Bermuda or the Cayman
Islands.18

State regulators may require risk retention groups to comply with state laws relating to claim settlement
and false or fraudulent acts, pay premium taxes, register with the designated state agent for service of
process, and submit to financial exams if such exam has not been completed by the state in which the
risk retention group is chartered.19

States may not require a risk retention group to participate in any insolvency guaranty association. 20
However, states may require notice that insurance provided by a risk retention group is not protected by
an insolvency guaranty association.21 Unlike authorized insurers, risk retention groups do not submit rate
and form filings with a state regulator. Instead, risk retention groups apportion risk among their members;
thus, rates are based on an actuarial analysis of the membership and policies can be tailored to suit the
needs of the membership.22

13 Ss. 322.032, 324.021(8), and 324.151, F.S.
14 49 CFR § 387.9 (2022).
15 Ss. 207.002(1), 320.01(25), and 627.7415, F.S.
16 S. 324.021(8), F.S.
17 S. 324.171, F.S.
18 15 U.S.C. § 3901(a)(4) and s. 627.942(9), F.S.
19 15 U.S.C. § 3902(a)(1).
20 15 U.S.C. § 3902(a)(2).
21 15 U.S.C. § 3902(a)(1).
22 National Association of Insurance Commissioners, Risk Retention Groups, Risk Retention Groups (naic.org) (last

visited Feb. 10, 2023).
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Members of a risk retention group must be engaged in similar businesses or activities that have similar
exposures due to the type of business, trade, product, service, premises, or operations.23

Risk retention groups may only provide liability insurance; the law defines liability insurance as coverage
for liability for damages to persons or property arising out of any business, trade, product, profess ional
service, premise, operation, or activity of a state or local government. 24 Liability insurance does not
include an employer’s liability to its employees; thus, risk retention groups may not issue workers’
compensation insurance policies to their members.25

Risk retention groups may operate in Florida if they obtain a certificate of authority as a liability insurer,
or are licensed in another state and provide a copy of their business plan and annual financial statement
to OIR and designate the Chief Financial Officer as agent for service of process. 26 According to OIR, 140
risk retention groups are licensed in a state other than Florida and registered to do business in Florida. 27

Risk retention groups licensed in Florida pay the same premium taxes as Florida-licensed insurers.28
Risk retention groups registered to operate in Florida but licensed in another state pay the same premium
taxes as surplus lines insurers that are allowed to sell lines of insurance that consumers cannot obtain
from Florida-licensed insurers.29 All risk retention groups operating in Florida must use agents who are
licensed and appointed in Florida. 30

American Contractors Insurance Group

American Contractors Insurance Group Ltd. of Bermuda (ACIG) is a risk retention group that is owned
by 41 construction companies and affiliated with American Contractors Insurance Company Risk
Retention Group (ACIG RRG) of Texas which writes general liability and auto coverages for its members
and is registered to do business in Florida. According to company representatives, ACIG provides auto
liability insurance for 17 of its 41 member companies, including 7 member companies that have active
operations in Florida.

ACIG is also affiliated with ACIG Insurance Company of Illinois, which writes workers’ compensation
coverages; ACIG Insurance Agency, Inc. of Texas, which coordinates customer service); and American
Contractors Risk Purchasing Group, Inc., of Texas, which acts as a purchasing group for professional,
pollution, and cyber liability coverages.31

The International Risk Management Institute describes “fronting” as the use of a licensed, admitted
insurer to issue an insurance policy on behalf of a self-insured organization or captive insurer without
transferring any risk. The risk of loss under the policy remains with the self-insured entity or captive
insurer, but the authorized insurer (and, in the event of insolvency, the guaranty association the insurer
belongs to) assumes a credit risk because it would be required to honor the policy if the insured fails to
do so. This provides proof of coverage that is needed to satisfy financial responsibility laws.

23 15 U.S.C. §3901(a)(4)(F) and s. 627.942(9), F.S.
24 15 U.S.C. 3901(a)(2)(A) and s. 627.942(9)(g), F.S.
25 15 U.S.C. 3901(a)(2)(B) and s. 627.942(4), F.S.
26 Ss. 627.943 and 627.944, F.S.
27 Florida Office of Insurance Regulation, Active Company Search, https://companysearch.myfloridacfo.gov/ (last visited

Feb. 10, 2023).
28 S. 627.943(4), F.S. Pursuant to s. 624.509, F.S., premium taxes (typically 1.75 percent of the premium) are collected by

the licensed insurer and paid to the Department of Revenue on or before March 1 of each year.
29 S. 627.944 (3), F.S. Pursuant to s. 626.932, F.S., premium taxes (4.94 percent of the premium) are collected by the

licensed insurance agent and paid to the Department of Financial Services on a quarterly basis; premiums are also
reported to the Florida Surplus Lines Service Office (FSLSO) which oversees the reporting requirements of eligible
surplus lines insurers. The FSLSO website is https://www.fslso.com/.
30 Ss. 627.943(5) and 627.944(12), F.S.
31 American Contractors Insurance Group, Organization Chart – Construction Industry Shareholders,

https://www.acig.com/assets/docs/ACIG_Organization_Chart.pdf (last visited Feb. 10, 2023).
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The Florida Insurance Code32 describes a “fronting company” as “an authorized insurer which by
reinsurance or otherwise generally transfers more than 50 percent to one unauthorized insurer which
does not meet the requirements” to be an accredited or trusteed reinsurer in Florida. 33

Further, s. 624.404(4)(a), F.S., states: “No authorized insurer shall act as a fronting company for any
unauthorized insurer which is not an approved reinsurer.”

Florida law explicitly prohibits:

 An authorized insurer or licensed motor vehicle service agreement company from acting as a
fronting company for any unauthorized insurer or unlicensed motor vehicle service agreement
company.34
 An authorized insurer or licensed home warranty association from acting as a fronting company
for any unauthorized insurer or unlicensed home warranty association.35
 An authorized insurer or licensed service warranty association from acting as a fronting company
for any unauthorized insurer or unlicensed service warranty association. 36

The Insurance Code does not contemplate the situation presented by ACIG RRG, where an authorized
insurer acts as a fronting company for a risk retention group.

Representatives of ACIG stated that ACIG RRG must use a fronting policy to write auto liability insurance
for Florida members, so they can provide evidence of auto liability coverage. According to documentation
provided by company representatives, ACIG retains the entirety of its $5 million auto liability limit by
reinsuring the fronting insurer at 100 percent.

Each of the 7 ACIG members with operations in Florida pays a fronting fee of $25,000 annually. This
creates a $175,000 annual expense that would be avoided if ACIG RRG were permitted to directly issue
auto liability policies to its Florida members. Collectively, the 7 companies insure about 975 vehicles and
pay annual auto liability premiums of $1,954,944.

ACIG has an “A” rating from A.M. Best, in category VIII, which applies to companies with a policyholder
surplus of $100 million-$250 million.

Effect of the Bill

The bill permits the owner or operator of a motor vehicle to provide proof of financial responsibility by
obtaining an insurance policy from a risk retention group that: 1) has an “A” or higher rating for financial
strength, and “VIII” or higher for financial size by the A.M. Best Company, and 2) only provides
commercial coverage to its members and shareholders.

The bill would permit ACIG RRG to directly provide commercial auto insurance to its Florida members,
annually saving each of the 7 Florida members $25,000 each.

It is unclear whether other similarly situated RRGs would be able to write auto insurance policies for
Florida members; additional information from OIR is expected but was not immediately available.

B. SECTION DIRECTORY:

Section 1. Amends s. 324.021, F.S.

32 Chapters 624-632, 634, 635, 636, 641, 642, 648, and 651 constitute the “Florida Insurance Code.”
33 S. 624.404(4)(b),F.S.
34 S. 634.241, F.S.
35 S. 634.326, F.S.
36 S. 634.429, F.S.

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Section 2. Provides an effective date of July 1, 2023

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
If adopted, HSMV will have to engage in structural testing to confirm successful file transfers with
any risk retention group that directly insures its members in Florida. This is needed to ensure that
HSMV receives timely insurance information about policies that are issued or cancelled. This
administrative cost would be absorbed within current resources.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill benefits 7 Florida-based construction companies that are members of American Contractors
Insurance Group Ltd. of Bermuda (ACIG), and obtain auto insurance through American Contractors
Insurance Company Risk Retention Group of Texas (ACIG RRG). Each company would save $25,000
per year because they would no longer pay a “fronting” fee to obtain auto insurance through a Florida-
authorized insurer.

D. FISCAL COMMENTS:

None.III. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.

2. Other:

None.

B. RULE-MAKING AUTHORITY:
None provided by the bill

C. DRAFTING ISSUES OR OTHER COMMENTS:

None.

IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES

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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

HB 57 2023

1 A bill to be entitled
2 An act relating to motor vehicle liability policies;
3 amending s. 324.021, F.S.; revising the definition of
4 the term "motor vehicle liability policy" to include
5 certain policies issued by specified risk retention
6 groups; defining the term "risk retention group";
7 providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (8) of section 324.021, Florida
12 Statutes, is amended, and subsection (12) is added to that
13 section, to read:
14 324.021 Definitions; minimum insurance required.—The
15 following words and phrases when used in this chapter shall, for
16 the purpose of this chapter, have the meanings respectively
17 ascribed to them in this section, except in those instances
18 where the context clearly indicates a different meaning:
19 (8) MOTOR VEHICLE LIABILITY POLICY.—Any owner's or
20 operator's policy of liability insurance furnished as proof of
21 financial responsibility pursuant to s. 324.031, insuring such
22 owner or operator against loss from liability for bodily injury,
23 death, and property damage arising out of the ownership,
24 maintenance, or use of a motor vehicle in not less than the
25 limits described in subsection (7) and conforming to the

Page 1 of 2

CODING: Words stricken are deletions; words underlined are additions.
hb0057-00
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

HB 57 2023

26 requirements of s. 324.151, issued by any insurance company
27 authorized to do business in this state or by a risk retention
28 group described in subsection (12). The owner, registrant, or
29 operator of a motor vehicle is exempt from providing such proof
30 of financial responsibility if he or she is a member of the
31 United States Armed Forces and is called to or on active duty
32 outside this state or the United States, or if the owner of the
33 vehicle is the dependent spouse of such active duty memb er and
34 is also residing with the active duty member at the place of
35 posting of such member, and the vehicle is primarily maintained
36 at such place of posting. The exemption provided by this
37 subsection applies only as long as the member of the armed
38 forces is on such active duty outside this state or the United
39 States and the owner complies with the security requirements of
40 the state of posting or any possession or territory of the
41 United States.
42 (12) RISK RETENTION GROUP.—A risk retention group
43 operating in accordance with s. 627.943 or s. 627.944 which is
44 rated "A" or higher for financial strength and "VIII" or higher
45 for financial size category by A.M. Best Company and which only
46 provides commercial coverage for its members and shareholders.
47 Section 2. This act shall take effect July 1, 2023.

Page 2 of 2

CODING: Words stricken are deletions; words underlined are additions.
hb0057-00
INSURANCE & BANKING SUBCOMMITTEE

HB 57 by Rep. Truenow
Motor Vehicle Liability Policies

AMENDMENT SUMMARY
February 14, 2023

Amendment 1 (barcode 869305) by Rep. Truenow (Line 46): The amendment:

• Increases the minimum required bodily injury and property damage coverage for certain
commercial motor vehicles to $1 million per occurrence.
• The increased minimum coverage applies to commercial motor vehicles (basically
vehicles over 26,000 pounds) of a contractor or subcontractor working on a public
transportation-related construction or maintenance project.

• Currently, commercial motor vehicle coverage requirements are:
o Under state law – ranges from $50,000 to $300,000, depending on the weight of
the vehicle.
o Under federal law – ranges from $750,000 to $5 million (those that operate
across state lines or carry hazardous materials).
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 57 (2023)
Amendment No.1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Truenow offered the following:
4
5 Amendment (with title amendment)
6 Between lines 46 and 47, insert:
7 Section 2. Subsection (5) is added to section 627.7415,
8 Florida Statutes, to read:
9 627.7415 Commercial motor vehicles; additional liability
10 insurance coverage.—Commercial motor vehicles, as defined in s.
11 207.002 or s. 320.01, operated upon the roads and highways of
12 this state shall be insured with the following minimum levels of
13 combined bodily liability insurance and property damage
14 liability insurance in addition to any other insurance
15 requirements:

869305 - H0057Line46.docx
Published On: 2/13/2023 7:20:14 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 57 (2023)
Amendment No.1

16 (5) Notwithstanding subsections (1), (2), (3), and (4), one
17 million dollars per occurrence for a commercial motor vehicle of
18 an entity under contract to a governmental entity, or as a
19 subcontractor or supplier to an entity under contract to a
20 government entity, for a project involving construction or
21 maintenance of a transportation facility, bridge, road, street,
22 highway, or railroad, and services incidental thereto, if the
23 commercial motor vehicle is furnishing equipment or materials to
24 said project.
25
26 A violation of this section is a noncriminal traffic infraction,
27 punishable as a nonmoving violation as provided in chapter 318.
28
29
30 -----------------------------------------------------
31 T I T L E A M E N D M E N T
32 Remove line 7 and insert:
33 amending s. 627.7415, F.S.; creating a requirement for
34 commercial motor vehicles of contractors that provide equipment
35 or materials to certain projects for a government entity;
36 providing an effective date.

869305 - H0057Line46.docx
Published On: 2/13/2023 7:20:14 PM
Page 2 of 2
Department of
Financial Services
- - - - - - - DEPARTMENT OF FINANCIAL SERVICES - - - - - - . _ , .

Department of Financial
Services (DFS)
House Insurance and Banking Subcommittee
February 14, 2023

.._______ c F O JIM MY PATRON Is -----___. 1
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Department Overview

• Chief Financial Officer and State Fire Marshal.

• 13 Divisions

• More than 2,500 FTE, including the Office of Financial Regulation and
Office of Insurance Regulation.

....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
2
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Financial Services Commission
• Consists of Florida’s Governor and Cabinet
• Appoints two officials to handle the regulation of banking, securities
and insurance.
• Office of Financial Regulation (OFR)
• Office of Insurance Regulation (OIR)
• OFR and OIR are administratively housed within DFS.

....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
3
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

DFS Organization
• Consumer Protection • Law Enforcement
• Consumer Services • Investigative and Forensic Services
• Insurance Agent and Agency • Public Assistance Fraud
Services • State Fire Marshal
• Rehabilitation and Liquidation • Workers’ Compensation
• Unclaimed Property

• Finance • Operations
• Accounting and Auditing • Administration
• Treasury • Funeral, Cemetery and Consumer
Services
• Risk Management

....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
4
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Consumer Protection
Consumer Services Insurance Agent and Agency
Services
• Insurance and financial consumer • Licenses and investigates insurance
advocacy. agents, agencies, adjusters, and
• Insurance Consumer Helpline: other representatives.
1-877-MYFLCFO (1-877-693- • Total License & Registration Types:
5236) 97.
• Financial Literacy • Total Number of Active Licenses
• Mediation Programs and Registrations: 1,143,834.
• Disaster Response • Number of investigations and
audits completed in 2022: 2,852.
....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
5
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Consumer Protection
Unclaimed Property Rehabilitation and Liquidation

• Recovers and safeguards unclaimed • Serves as court-appointed Receiver of
property accounts of Floridians. any insurer placed into receivership in
• FLTreasureHunt.gov Florida and plans, coordinates, and
directs the receivership processes on
• Since July 1, 2017: behalf of the Department.
• Unclaimed Funds Recovered:
$2,955,526,527
• Funds Returned to Florida • FY 2021-22 - Division distributed a
residents and businesses: total of over $142 million to
$1,879,473,609 claimants.

....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
6
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Finance
Accounting and Auditing Treasury

Underlying mission is making sure • Ensure that cash and other assets
the state’s bills are paid accurately held for safekeeping within the
and on time. Treasury are accurately accounted
• The Bureau of Auditing. for, effectively invested, and
competently protected.
• The Bureau of Financial Reporting
The Bureau of State Payrolls. • Treasury Investment Portfolio:
$59.6 Billion (As of December 31, 2022)
• The Bureau of Vendor Relations.
• $2.8 Billion in Distributed Income
(FY 18-19 – Current)

....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
7
i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Law Enforcement
Investigative and Forensic Public Assistance Fraud
Services
• DFS law enforcement and forensic • Investigates suspected fraud and
services units investigate fraudulent misuse of public assistance benefits by
and criminal acts, including: recipients, program administrators, or
others who transact business using
• Fire, Arson, and Explosives public assistance dollars.
Investigations
• Fire and Explosives Sample • FY 2021-22 Fraud Uncovered:
Analysis
• Insurance Fraud $13,651,365
• Theft/Misuse of State Funds • FY 2021-22 Benefits Halted
• Workers’ Compensation Fraud
from Being Issued: $19,191,892
....__ _ _ _ _ CFO JIM MY PATRON IS - - - - - - - - - -
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i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Law Enforcement
State Fire Marshal Workers’ Compensation
• Works to protect life, property, and • Ensures the self-execution of the state’s
environment from the devastation of fire workers’ compensation system by:
through education, engineering, and • Educating system participants of
enforcement. their rights and responsibilities,
• Florida Fire Incident Reporting System • Leveraging data to deliver
• Bureau of Fire Prevention exceptional value, and
• Bureau of Fire Standards and Training • Holding participants accountable for
• Florida State Fire College fulfilling their obligations.
• Disaster Response

• Certified Firefighters: 46,861
• Certified Volunteer Firefighters: 3,500

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i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Operations
Risk Management Funeral, Cemetery, and Consumer
Services
• Providing self-insurance, purchase of • Protecting health, safety and welfare of the
insurance, claims handling assistance in public, the division licenses and regulates the
managing risk for participating state agencies death care industry in Florida.
and universities. • Licenses: 9,400
• Coverages:
• Inspections: 1,601
• Workers’ Compensation
• Examinations: 76
• Property
• Automobile Liability • Investigations: 331
• General Liability
• Federal Civil Rights/Employment
Discrimination
• Firefighter Cancer Benefits
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i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Other Programs
Florida PALM My Safe Florida Home Program

• The Florida Planning, Accounting, and • May 2022 - Florida Legislature
Ledger Management Project was reinstituted the MSFH Program by
established in 2014 to replace FLAIR. appropriating $150 million in non-
• The Florida PALM Project is replacing recurring General Revenue.
the State of Florida’s current • Purpose - to assist homeowners with
accounting and cash management reducing their insurance premiums by
systems with an integrated, enterprise providing grant funds to mitigate their
financial management solution that homes against future wind damage.
will allow the State to organize, • Slated to expire October 1, 2024.
define, and standardize its financial
management processes.
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i.:========= DEPARTMENT OF FINANCIAL SERVICES - - - - - -......

Questions?
Austin Stowers, Legislative Affairs Director
DFS Legislative Affairs Office: (850) 413-2863

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Jimmy
Patron1s
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