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Home Source documents Meeting Packet — Insurance & Banking Subcommittee, Florida House Commerce Committee (April 3, 2025)

Meeting Packet — Insurance & Banking Subcommittee, Florida House Commerce Committee (April 3, 2025)

Summary

Meeting packet of the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee for Thursday, April 3, 2025, 8:00 AM to 11:30 AM. The agenda lists HB 929, HB 1181 and HB 1431, proposed committee substitutes for HB 881 and HB 1429, and an Insurer Affiliate Study with testimony and discussion from Jan M. Moenck of Risk & Regulatory Consulting. The bill analysis for HB 929 (Firefighter Health and Safety) states that the bill adds occupational illness and suicide to the risks the Division of State Fire Marshal must monitor. The packet closes with text of PCS for HB 1429, whose Section 32 provides an effective date of July 1, 2025.

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“Meeting Packet — Insurance & Banking Subcommittee, Florida House Commerce Committee (April 3, 2025).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-04-03-3289-insurance-banking-subcommittee-meeting-packets-fn-ibs-ba4043a767/, SHA-256 6cf9c80fcf96c7ea727d6732b0c2394a47d3f80df981b00e5962df47e23dab09.

Full text

     Insurance & Banking Subcommittee
               Thursday, April 3, 2025
                 8:00 AM - 11:30 AM
                Morris Hall (17 HOB)



                  Meeting Packet




Daniel Perez                             Bradford Yeager
Speaker                                            Chair
                    The Florida House of Representatives
                                          Commerce Committee
                                 Insurance & Banking Subcommittee
Daniel Perez                                                                                        Bradford Yeager
Speaker                                                                                                       Chair

                                               Meeting Agenda

                                          Thursday, April 3, 2025
                                            8:00 am – 11:30 am
                                           Morris Hall (17 HOB)


  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Consideration of the following bill(s):
       • HB 929 Firefighter Health and Safety by Booth, Alvarez, D.
       • HB 1181 Motor Vehicle Insurance by Alvarez, D., Weinberger
       • HB 1431 Pub. Rec./Uniform Mitigation Verification Inspection Forms by Chaney

       Consideration of the following bill(s) with proposed committee substitute(s):
       • PCS for HB 881 -- Insurance
       • PCS for HB 1429 -- Insurance Regulations

       Insurer Affiliate Study - Testimony and Discussion
          Jan M. Moenck, Risk & Regulatory Consulting

 V.    Closing Remarks

VI.    Adjournment




                   214 House Office Building, 402 South Monroe Street, Tallahassee, Fl 32399-1300
                                                   (850) 717-4870
HB 929
                                     FLORIDA HOUSE OF REPRESENTATIVES
                                               BILL ANALYSIS
       This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 929                                                          COMPANION BILL: CS/SB 1212 (DiCeglie)
TITLE: Firefighter Health and Safety                                    LINKED BILLS: None
SPONSOR(S): Booth, Alvarez, D.                                          RELATED BILLS: None
Committee References
Intergovernmental Affairs        Insurance & Banking                       State Administration                            State Affairs
         17 Y, 0 N                                                            Budget                       

SUMMARY
Effect of the Bill:
The bill revises the Florida Firefighters Occupational Safety and Health Act to add occupational illness and suicide
to the health and safety risks the Division of State Fire Marshal must monitor and develop rules, policies, and
procedures to address. The bill also requires the division to adopt rules related to establishing mental health best
practices, issuing gear that does not contain hazardous or toxic substances, notifying firefighters if gear does
contain hazardous or toxic substances, and encouraging firefighter employers to limit normally scheduled shifts to
42 hours per week.

Fiscal or Economic Impact:
The bill may have an indeterminate negative effect on state and local governments and private firefighter
employers not declared exempt by s. 633.528(2), F.S. to the extent those governments would need to purchase and
issue gear that does not contain hazardous or toxic materials.


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ANALYSIS
EFFECT OF THE BILL:
The bill amends the Florida Firefighters Occupational Safety and Health Act to include occupational illness and
suicide in the health and safety risks the Division of State Fire Marshal (Division) is required monitor and develop
rules, policies, and procedures to address. Specifically, the Division must develop a means to identify firefighter
employers with high frequencies of these conditions in addition to those identified in current law, conduct
inspections to ensure employers are complying with Division rules, and adds these conditions to the list of items
for which the Division can assess penalties. (Sections 1, 4, and 5)

The bill requires the Division to adopt rules that:
    Require firefighter employers to issue firefighting gear that does not contain hazardous or toxic chemicals
        once such gear becomes readily available commercially;
    Require firefighter employers that issue gear containing hazardous or toxic substances to provide notice to
        their firefighter employees of this information; and
    Encourage firefighter employers to implement work schedules for firefighters that limit normally
        scheduled shifts to 42 hours per week. (Section 2)

The bill adds illnesses and fatalities to the risks the Department of Financial Services must investigate and
prescribe by rule safeguards and protections to address. (Section 2)

The bill further requires that the Division adopt rules to establish mental health best practices for firefighter
employers. (Section 3)

The bill provides an effective date of July 1, 2025. (Section 6)
STORAGE NAME: h0929b.IBS
DATE: 4/1/2025
                                                                                                                                             1
RULEMAKING:
The bill requires the Division of State Fire Marshal to adopt rules related to the gear issued by firefighter
employers, notification of hazardous or toxic chemicals in gear, and to encourage firefighter employers to limit
normally scheduled firefighter shifts to 42 hours per week. The bill further requires that the Division adopt rules to
establish mental health best practices for firefighter employers. The bill would also require the Division to revise
its rules pursuant to ch. 633, F.S. to address the addition of occupational illness and suicide to the health and safety
risks the Division investigates and prescribes protective measures for by rule.

Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have an indeterminate negative effect on state government due to the provision that firefighter
employers issue gear that does not contain hazardous or toxic materials once such gear becomes readily available
commercially.

LOCAL GOVERNMENT:
The bill may have an indeterminate negative effect on local governments due to the provision that firefighter
employers issue gear that does not contain hazardous or toxic materials once such gear becomes readily available
commercially.

PRIVATE SECTOR:
The bill may have an indeterminate negative effect on private firefighter employers that are not declared exempt
by s. 633.528(2), F.S., due to the provision that firefighter employers issue gear that does not contain hazardous or
toxic materials once such gear becomes readily available commercially.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Division of State Fire Marshall
State law on fire prevention and control is provided in ch. 633, F.S. The Chief Financial Officer of the state serves as
the State Fire Marshal, operating through the Division of the State Fire Marshal (Division).1 Pursuant to this
authority, the State Fire Marshal:
     Regulates, educates or trains, and certifies fire service personnel;2
     Investigates the causes of fires;3
     Enforces arson laws;4
     Regulates the installation and maintenance of fire equipment;5
     Conducts fire safety inspections of state buildings;6
     Develops fire safety standards;7
     Provides facilities for the analysis of fire debris;8 and



1 S. 633.104(1), F.S. The Division of the State Fire Marshal is located within the DFS. See s. 20.121, F.S.
2 S. 633.128(1), F.S. Also see Ch. 633, Part IV: Fire Standards and Training, F.S.
3 Ss. 633.104(2)(e), and 633.112, F.S.
4 S. 633.104(2)(e), F.S.
5 S. 633,104(2)(b), F.S. Also see s. 633.104(2)(c), F.S., and Ch. 633, Part III: Fire Protection and Suppression, F.S.
6 S. 633.218, F.S.
7 Ch. 633, Part II: Fire Safety and Prevention, F.S.
8 S. 633.432, F.S.


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                                                                                                                                  2
        Operates the Florida State Fire College.9

Additionally, the State Fire Marshal adopts by rule the Florida Fire Prevention Code, which contains or references
all fire safety laws and rules regarding public and private buildings.10

The Division consists of the two bureaus: the Bureau of Fire Standards and Training (BFST), and the Bureau of Fire
Prevention.11 The BFST approves Florida's firefighter training curricula and certifies Florida fire service training
agencies, instructors, and members.12 The Inspections Section, under the Bureau of Fire Prevention, annually
inspects more than 14,000 state-owned buildings and facilities.13

Florida Firefighters Occupational Safety and Health Act
The Florida Firefighters Occupational Safety and Health Act14 (FFOSHA) establishes policies, procedures, practices,
rules, and standards that reduce the incidence of firefighter employee accidents, firefighter employee occupational
diseases, and firefighter employee fatalities.15 FFOSHA requires the Department of Financial Services to investigate
and prescribe by rule what safety devices, safeguards, or other protections must be adopted to prevent accidents
and injury at firefighters’ places of employment.16 FFOSHA further requires that the Division assist in making
firefighters’ places of employment17 safer and decreasing the frequency and severity of on-the-job injuries18 and
authorizes the Division to adopt rules to ensure safe working conditions.19 FFOSHA also provides for penalties for
any firefighter employers20 that violate or fail to comply with the regulations of the act or with any rule adopted by
the Division for the prevention of injuries, accidents, or occupational diseases.21

Under FFOSHA, the Division must develop a means to identify firefighter employers with a high frequency of
firefighter work-related injuries and conduct safety inspections of those employers to ensure compliance with the
Division’s rules and make recommendations for health and safety practices to reduce the number of work-related
injuries.22 Copies of any reports that result from a safety inspection must be provided to the firefighter employer
and its insurer. 23 Firefighter employers are required to submit a corrective action plan to address any issues
contained in the report. The Division must review the plan and decide on its approval within 60 days. If the
Division does not make a decision within 60 days, the plan is deemed approved. If the firefighter employer fails to
complete or implement a corrective action plan, the Division may assess penalties and the firefighter employer’s
insurance may cancel its contract for insurance.24




9 S. 633.128(1)(h)–(q), F.S. Also see ss. 633.428–633.434, F.S.
10 S. 633.202(1), F.S.
11 My Florida CFO, State Fire Marshal (last visited on Mar. 6, 2025).
12 My Florida CFO, Bureau of Fire Standards and Training (last visited Mar. 6, 2025).
13 My Florida CFO, Bureau of Fire Prevention (last visited Mar. 6, 2025).
14 S. 633.502, F.S., provides that ss. 633.502 through 633.536, F.S. constitute the Florida Firefighters Occupational Safety and

Health Act.
15 S. 633.506, F.S. In addition to FFOSHA, s. 633.408(1)(d), F.S. requires that the Division establish courses to provide training

for career and volunteer firefighters related to cancer and mental health risks within the fire service. This training is required
in order to obtain a Firefighter Certificate of Compliance, Volunteer Firefighter Certificate of Completion, or Special Certificate
of Compliance.
16 S. 633.508(7)(a), F.S.
17 S. 633.504(4), F.S., defines a firefighter’s place of employment as the physical location at which the firefighter employee is

employed or deployed.
18 S. 633.508(1), F.S.
19 S. 633.508(2), F.S.
20 S. 633.504(2), F.S., defines a firefighter employer as the state and all political subdivisions of this state, all public and quasi-

public corporations in this state, and a person carrying on any employment for this state, political subdivisions of this state,
and public and quasi-public corporations in this state which employs firefighter employees, except those appointed under s.
590.02(1)(d)., F.S.
21 S. 633.526, F.S.
22 S. 633.522(1), F.S.
23 Id.
24 Ss. 633.522(1), (6) and 633.526, F.S.


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                                                                                                                                          3
FFOSHA requires that firefighter employers with more than 20 firefighter employees establish a workplace safety
committee.25 Firefighter employers with fewer than 20 firefighter employees that the Division identifies as having
a high frequency or high severity of work-related injuries must also establish a workplace safety committee or
designate a workplace safety coordinator.26 FFOSHA requires that the Division adopt rules related to the
membership, duties, and recordkeeping of workplace safety committees.27 The duties of the workplace safety
committee or workplace safety coordinator must include, but are not limited to:
     Establishing workplace safety inspection procedures;
     Establishing procedures to investigate all workplace accidents, safety incidents, illnesses, and deaths;
     Evaluating accident prevention programs; and
     Prescribing training guidelines for committee members.28

The Division is further required to adopt rules establishing best practices for firefighter employers related to
cancer prevention.29

                                                 BILL HISTORY
                                                                                     STAFF
                                                                                   DIRECTOR/           ANALYSIS
COMMITTEE REFERENCE                          ACTION                DATE           POLICY CHIEF       PREPARED BY
Intergovernmental Affairs                    17 Y, 0 N           3/19/2025           Darden              Jones
Subcommittee
Insurance & Banking                                                                   Hamon               Schenk
Subcommittee
State Administration Budget
Subcommittee
State Affairs Committee




25 S. 633.522(2)(a), F.S.
26 S. 633.522(2)(b), F.S.
27 S. 633.522(3), F.S.
28 S. 633.522(3)(c), F.S.
29 S. 633.520(2), F.S.


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           HB 929                                                                                               2025




    1                                         A bill to be entitled
    2               An act relating to firefighter health and safety;
    3               amending s. 633.506, F.S.; revising legislative
    4               intent; amending s. 633.508, F.S.; requiring the
    5               Division of State Fire Marshal within the Department
    6               of Financial Services to adopt certain rules;
    7               requiring the division to assist in decreasing the
    8               frequency and severity of occupational illnesses and
    9               fatalities; amending s. 633.520, F.S.; requiring the
10                  division to adopt rules relating to mental health best
11                  practices; amending ss. 633.522 and 633.526, F.S.;
12                  conforming provisions to changes made by the act;
13                  providing an effective date.
14
15         Be It Enacted by the Legislature of the State of Florida:
16
17                  Section 1.        Section 633.506, Florida Statutes, is amended
18         to read:
19                  633.506      Legislative intent.—It is the intent of the
20         Legislature to enhance firefighter occupational safety and
21         health in this the state through the implementation and
22         maintenance of policies, procedures, practices, rules, work
23         schedules, and standards that reduce the incidence of
24         firefighter employee accidents, firefighter employee
25         occupational diseases, and firefighter employee fatalities

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        HB 929                                                                                               2025




26      compensable under chapter 112, chapter 440, or otherwise. The
27      Legislature further intends that the division develop a means by
28      which the division can identify individual firefighter employers
29      with a high frequency or severity of work-related injuries,
30      occupational illnesses, or suicide; conduct safety inspections
31      of those firefighter employers;, and assist those firefighter
32      employers in the development and implementation of firefighter
33      employee safety and health programs. In addition, it is the
34      intent of the Legislature that the division administer and
35      enforce this part; provide assistance to firefighter employers,
36      firefighter employees, and insurers; and enforce the policies,
37      rules, and standards set forth in this part.
38               Section 2.        Subsection (7) of section 633.508, Florida
39      Statutes, is renumbered as subsection (8), subsection (1) and
40      paragraph (a) of present subsection (7) are amended, and a new
41      subsection (7) is added to that section, to read:
42               633.508      Workplace safety; rulemaking authority; division
43      authority.—
44               (1)     The division shall assist in making the firefighter
45      employee place of employment a safer place to work and
46      decreasing the frequency and severity of on-the-job injuries,
47      occupational illnesses, and fatalities in such workplace.
48               (7)     The division shall adopt rules relating to all of the
49      following:
50               (a)     Requiring firefighter employers to issue firefighting

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        HB 929                                                                                               2025




51      gear that does not contain chemical hazards or toxic substances
52      when such gear becomes readily available on the commercial
53      market.
54               (b)     Requiring firefighter employers that issue
55      firefighting gear that contains or is manufactured with chemical
56      hazards or toxic substances to provide their firefighter
57      employees notice that the firefighting gear issued contains or
58      is manufactured with chemical hazards or toxic substances.
59               (c)     Encouraging firefighter employers to implement work
60      schedules that do not require a firefighter employee's normally
61      scheduled shifts to exceed 42 hours per workweek.
62               (8)(7)      The department shall:
63               (a)     Investigate and prescribe by rule what safety devices,
64      safeguards, or other means of protection must be adopted for the
65      prevention of accidents, illnesses, fatalities, and injuries in
66      every firefighter employee place of employment or at any fire
67      scene; determine what suitable devices, safeguards, or other
68      means of protection for the prevention of occupational diseases
69      must be adopted or followed in any or all such firefighter
70      places of employment or at any emergency fire scene; and adopt
71      reasonable rules for the prevention of accidents, the safety,
72      protection, and security of firefighter employees engaged in
73      interior firefighting, and the prevention of occupational
74      diseases and fatalities.
75               Section 3.        Subsection (2) of section 633.520, Florida

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         HB 929                                                                                               2025




76       Statutes, is amended to read:
77                633.520      Safety; firefighter employer responsibilities.—
78                (2)     The division shall adopt rules to establish:
79                (a)     Employers' cancer prevention best practices related to
80       personal protective equipment, decontamination, fire suppression
81       equipment, and fire stations.
82                (b)     Employers' mental health best practices related to
83       resiliency, stress management, peer support, and access to
84       mental healthcare.
85                Section 4.        Subsection (1), paragraph (b) of subsection
86       (2), and paragraph (c) of subsection (3) of section 633.522,
87       Florida Statutes, are amended to read:
88                633.522      Firefighter employers; high frequency of work-
89       related injuries; corrective plans; workplace safety committees
90       and coordinators; failure to implement a safety and health
91       program; cancellation.—
92                (1)     The division shall develop a means to identify
93       individual firefighter employers with a high frequency of
94       firefighter employee work-related injuries, occupational
95       illnesses, and suicide. The division shall conduct safety
96       inspections of those firefighter employers so identified to
97       ensure compliance with this part or the division's rules and
98       make recommendations based upon current safety and health
99       practices and to assist such firefighter employers in reducing
100      the number of work-related injuries, occupational illnesses, and

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         HB 929                                                                                               2025




101      suicide. The division may not assess penalties as a result of
102      such inspections. Copies of any report made as the result of
103      such an inspection shall be provided to the firefighter employer
104      and its insurer. Firefighter employers shall submit a plan for
105      the correction of any noncompliance issues to the division for
106      approval in accordance with division rule. The division shall
107      promptly review the plan submitted and approve or disapprove the
108      plan within 60 days, or such plan shall be deemed approved. Upon
109      approval by the division, the plan shall be implemented by the
110      firefighter employer. If the plan is not submitted, does not
111      provide corrective actions for all deficiencies, is not
112      complete, or is not implemented, the fire service provider shall
113      be subject to s. 633.526.
114               (2)     In order to promote health and safety in firefighter
115      employee places of employment in this state:
116               (b)     Each firefighter employer of fewer than 20 firefighter
117      employees with a high frequency or high severity of work-related
118      injuries, occupational illnesses, or suicide, as identified by
119      the division, shall establish and administer a workplace safety
120      committee or designate a workplace safety coordinator who shall
121      establish and administer workplace safety activities in
122      accordance with rules adopted under this section.
123               (3)     The division shall adopt rules:
124               (c)     Prescribing the duties and functions of the workplace
125      safety committee and workplace safety coordinator which include,

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         HB 929                                                                                               2025




126      but are not limited to:
127               1.      Establishing procedures for workplace safety
128      inspections by the committee.
129               2.      Establishing procedures for investigating all workplace
130      accidents, safety-related incidents, illnesses, and deaths.
131               3.      Evaluating accident prevention, and illness prevention,
132      and suicide prevention programs.
133               4.      Prescribing guidelines for the training of safety
134      committee members.
135               Section 5.        Section 633.526, Florida Statutes, is amended
136      to read:
137               633.526      Firefighter employer penalties.—If any firefighter
138      employer violates or fails or refuses to comply with this part,
139      or with any rule adopted by the division under such sections in
140      accordance with chapter 120 for the prevention of injuries,
141      accidents, or occupational diseases or with any lawful order of
142      the division in connection with this part, or fails or refuses
143      to furnish or adopt any safety device, safeguard, or other means
144      of protection prescribed by division rule under this part for
145      the prevention of accidents, injuries, suicide, or occupational
146      diseases, or occupational illnesses, the division may:
147               (1)      Issue an administrative cease and desist order,
148      enforceable in the circuit court in the jurisdiction where the
149      violation is occurring or has occurred.
150               (2)      Assess an administrative fine against a firefighter

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         HB 929                                                                                               2025




151      employer of not less than $100 or more than $1,000 for each
152      violation and each day a violation is committed.
153               (3)     Assess against the firefighter employer a civil
154      penalty of not less than $100 nor more than $5,000 for each day
155      the violation, omission, failure, or refusal continues after the
156      firefighter employer has been given written notice of such
157      violation, omission, failure, or refusal. The total penalty for
158      each violation shall not exceed $50,000. The division shall
159      adopt rules requiring penalties commensurate with the frequency
160      or severity of safety violations. Hearings requested under this
161      section shall be conducted in Tallahassee. All penalties
162      assessed and collected under this section shall be deposited in
163      the Insurance Regulatory Trust Fund.
164               Section 6.        This act shall take effect July 1, 2025.




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                    INSURANCE & BANKING SUBCOMMITTEE

                               HB 929 by Rep. Booth
                            Firefighter Health and Safety

                             AMENDMENT SUMMARY
                                 April 3, 2025


Amendment 1 by Rep. Booth (line 27):

  •   Removes references to “occupational illnesses” or replaces such references with
      the term “occupational disease.”
  •   Modifies a rulemaking requirement to:
         o Provide that the State Fire Marshal must adopt rules requiring firefighter
             employers to “purchase” rather than “issue” certain firefighting gear when
             it is readily available.
         o Define “readily available” to mean available from more than one
             manufacturer.
         o Provide that these rules may recommend a phased approach for gear
             replacement.
  •   Provides that rules establishing employers’ cancer prevention best practices
      must also relate to chemical hazards or toxic substance education regarding
      personal protective gear.
  •   Replaces references to “suicide” with references to “fatalities” in various
      provisions.
                                         COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 929    (2025)
       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 Booth offered the following:
4
5           Amendment (with title amendment)
6           Remove lines 30-146 and insert:
7      occupational disease, or suicide; conduct safety inspections of
8      those firefighter employers;, and assist those firefighter
9      employers in the development and implementation of firefighter
10     employee safety and health programs. In addition, it is the
11     intent of the Legislature that the division administer and
12     enforce this part; provide assistance to firefighter employers,
13     firefighter employees, and insurers; and enforce the policies,
14     rules, and standards set forth in this part.
15          Section 2.   Subsection (7) of section 633.508, Florida
16     Statutes, is renumbered as subsection (8), subsection (1) and
     088855 - h0929-line30.docx
     Published On: 4/2/2025 5:16:10 PM
                                   Page 1 of 6
                                         COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 929    (2025)
       Amendment No. 1


17     paragraph (a) of present subsection (7) are amended, and a new
18     subsection (7) is added to that section, to read:
19          633.508   Workplace safety; rulemaking authority; division
20     authority.—
21          (1)   The division shall assist in making the firefighter
22     employee place of employment a safer place to work and
23     decreasing the frequency and severity of on-the-job injuries and
24     the frequency of fatalities in such workplace.
25          (7)   The division shall adopt rules relating to all of the
26     following:
27          (a)   Requiring firefighter employers to purchase
28     firefighting gear that does not contain chemical hazards or
29     toxic substances when such gear becomes readily available on the
30     commercial market. For purposes of this paragraph, “readily
31     available” means available from more than one manufacturer.
32     Rules adopted under this paragraph may recommend a phased
33     approach for gear replacement.
34          (b)   Requiring firefighter employers that issue
35     firefighting gear that contains or is manufactured with chemical
36     hazards or toxic substances to provide their firefighter
37     employees notice that the firefighting gear issued may contain
38     or is manufactured with chemical hazards or toxic substances.
39          (c)   Encouraging firefighter employers to implement work
40     schedules that do not require a firefighter employee's normally
41     scheduled shifts to exceed 42 hours per workweek.
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                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 929     (2025)
       Amendment No. 1


42          (8)(7)    The department shall:
43          (a)   Investigate and prescribe by rule what safety devices,
44     safeguards, or other means of protection must be adopted for the
45     prevention of accidents and injuries in every firefighter
46     employee place of employment or at any fire scene; determine
47     what suitable devices, safeguards, or other means of protection
48     for the prevention of occupational diseases must be adopted or
49     followed in any or all such firefighter places of employment or
50     at any emergency fire scene; and adopt reasonable rules for the
51     prevention of accidents, the safety, protection, and security of
52     firefighter employees engaged in interior firefighting, and the
53     prevention of occupational diseases and fatalities.
54          Section 3.    Subsection (2) of section 633.520, Florida
55     Statutes, is amended to read:
56          633.520    Safety; firefighter employer responsibilities.—
57          (2)   The division shall adopt rules to establish:
58          (a)   Employers' cancer prevention best practices related to
59     personal protective equipment, chemical hazards or toxic
60     substance education regarding personal protective gear,
61     decontamination, fire suppression equipment, and fire stations.
62          (b)   Employers' mental health best practices related to
63     resiliency, stress management, peer support, and access to
64     mental healthcare.




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                                         COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 929   (2025)
       Amendment No. 1


65          Section 4.   Subsection (1), paragraph (b) of subsection
66     (2), and paragraph (c) of subsection (3) of section 633.522,
67     Florida Statutes, are amended to read:
68          633.522   Firefighter employers; high frequency of work-
69     related injuries; corrective plans; workplace safety committees
70     and coordinators; failure to implement a safety and health
71     program; cancellation.—
72          (1)   The division shall develop a means to identify
73     individual firefighter employers with a high frequency of
74     firefighter employee work-related injuries and suicide. The
75     division shall conduct safety inspections of those firefighter
76     employers so identified to ensure compliance with this part or
77     the division's rules and make recommendations based upon current
78     safety and health practices and to assist such firefighter
79     employers in reducing the number of work-related injuries and
80     suicide. The division may not assess penalties as a result of
81     such inspections. Copies of any report made as the result of
82     such an inspection shall be provided to the firefighter employer
83     and its insurer. Firefighter employers shall submit a plan for
84     the correction of any noncompliance issues to the division for
85     approval in accordance with division rule. The division shall
86     promptly review the plan submitted and approve or disapprove the
87     plan within 60 days, or such plan shall be deemed approved. Upon
88     approval by the division, the plan shall be implemented by the
89     firefighter employer. If the plan is not submitted, does not
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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                      Bill No. HB 929   (2025)
        Amendment No. 1


90      provide corrective actions for all deficiencies, is not
91      complete, or is not implemented, the fire service provider shall
92      be subject to s. 633.526.
93           (2)    In order to promote health and safety in firefighter
94      employee places of employment in this state:
95           (b)    Each firefighter employer of fewer than 20 firefighter
96      employees with a high frequency or high severity of work-related
97      injuries or a high frequency of work-related fatalities, as
98      identified by the division, shall establish and administer a
99      workplace safety committee or designate a workplace safety
100     coordinator who shall establish and administer workplace safety
101     activities in accordance with rules adopted under this section.
102          (3)    The division shall adopt rules:
103          (c)    Prescribing the duties and functions of the workplace
104     safety committee and workplace safety coordinator which include,
105     but are not limited to:
106          1.    Establishing procedures for workplace safety
107     inspections by the committee.
108          2.    Establishing procedures for investigating all workplace
109     accidents, safety-related incidents, illnesses, and deaths.
110          3.    Evaluating accident prevention, and illness prevention,
111     and suicide prevention programs.
112          4.    Prescribing guidelines for the training of safety
113     committee members.


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                                            COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 929   (2025)
        Amendment No. 1


114          Section 5.     Section 633.526, Florida Statutes, is amended
115     to read:
116          633.526   Firefighter employer penalties.—If any firefighter
117     employer violates or fails or refuses to comply with this part,
118     or with any rule adopted by the division under such sections in
119     accordance with chapter 120 for the prevention of injuries,
120     accidents, or occupational diseases or with any lawful order of
121     the division in connection with this part, or fails or refuses
122     to furnish or adopt any safety device, safeguard, or other means
123     of protection prescribed by division rule under this part for
124     the prevention of accidents, injuries, fatalities, or
125     occupational diseases, the division may:
126
127
128           -----------------------------------------------------
129                          T I T L E   A M E N D M E N T
130          Remove line 8 and insert:
131          frequency of




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                                      Page 6 of 6
HB 1181
                                     FLORIDA HOUSE OF REPRESENTATIVES
                                               BILL ANALYSIS
       This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 1181                                                         COMPANION BILL: SB 1256 (Grall)
TITLE: Motor Vehicle Insurance                                          LINKED BILLS: None
SPONSOR(S): Alvarez, D., Weinberger                                     RELATED BILLS: None
Committee References
      Civil Justice & Claims                               Insurance & Banking                                         Judiciary
             13 Y, 2 N                                                                         

SUMMARY
Effect of the Bill:
HB 1181 repeals the personal injury protection (“PIP”) coverage requirement under Florida’s Motor Vehicle No-
Fault Law and increases the minimum bodily injury liability coverage limits from $10,000 per person and $20,000
per incident to $25,000 per person and $50,000 per incident; however, the minimum property damage liability
coverage limit remains unchanged at $10,000. The bill also increases the minimum security amounts for persons
choosing self-insurance to meet the financial responsibility requirements.

Fiscal or Economic Impact:
The bill may have a fiscal impact on the state court system and the Office of Insurance Regulation (“OIR”); however,
the bill makes an appropriation of $83,651 in non-recurring funds from the Insurance Regulatory Trust Fund to
OIR to address changes made by the bill. The bill may also have an indeterminate economic impact on the private
sector. Whether such impact is positive or negative depends on whether the changes made by the bill increase or
decrease motor vehicle insurance premiums, and whether or not the elimination of PIP coverage results in the
timely and sufficient reimbursement of the medical expenses incurred by persons injured in automobile accidents.


JUMP TO                  SUMMARY                          ANALYSIS                  RELEVANT INFORMATION                    BILL HISTORY


ANALYSIS
EFFECT OF THE BILL:
Personal Injury Protection Coverage Repeal

The bill repeals Florida’s Motor Vehicle No-Fault Law, effectively eliminating the personal injury protection (“PIP”)
coverage requirement in Florida. Under the bill, such coverage would not even be optional in the state, as insurers
would be prohibited from offering the product as part of any motor vehicle insurance policy. (Sections 1, 2, and
46).

Further, by repealing PIP, the bill eliminates PIP’s tort liability limitation. Thus, under the bill, if a driver were to
cause a motor vehicle accident, he or she would be fully liable for any damages resulting therefrom; to put it
another way, a person injured in a motor vehicle accident caused by another would no longer be required to seek
recovery from his or her own insurer and could instead sue the at-fault driver for any damages he or she sustained,
regardless of the seriousness of the injury he or she suffered. Consistent with this change, the bill removes the
conditional exclusion of non-economic damages for pain, suffering, mental anguish, and inconvenience and allows
punitive damages awards; beginning July 1, 2026; the bill also makes uninsured motorist coverage insurers liable
for non-economic damages, including pain and suffering, disability or physical impairment, disfigurement, mental
anguish, inconvenience, and the loss of capacity for the enjoyment of life experienced in the past and to be
experienced in the future. (Section 44) However, the bill leaves in place the ability of a Florida driver to purchase
optional medical payments coverage, which could take the place of PIP in the event the insured is unable to recover
under another driver’s liability policy. (Section 47)

Financial Responsibility Requirements
STORAGE NAME: h1181b.IBS
DATE: 4/1/2025
                                                                                                                                             1
In conjunction with the bill’s repeal of the PIP coverage requirement, the bill modifies the coverage requirements
under the Financial Responsibility Law for persons owning or registering motor vehicles in Florida. Specifically,
the bill provides that, beginning July 1, 2026, proof of compliance with the Financial Responsibility Law as to
bodily injury (“BI”) liability coverage is required at the time of motor vehicle registration,1 instead of post-
registration or at the time of an accident as is currently required.2 (Sections 6, 12, and 15) The bill also increases
the minimum BI liability coverage limits from $10,000 per person and $20,000 per incident to $25,000 per person
and $50,000 per incident, but the minimum property damage (“PD”) liability coverage limit remains unchanged at
$10,000.3 This results in required 25/50/10 coverage in most instances. (Section 14)

Additionally, the bill increases the minimum security amounts for self-insurance in order to satisfy the financial
responsibility requirements. Specifically, the bill increases certificate of security deposit requirements for
individuals and businesses4 from $30,000 per vehicle (up to a maximum of $120,000) to $60,000 per vehicle (up to
a maximum of $240,000). (Sections 18 and 24) Additionally, self-insured persons and businesses must maintain a
motor vehicle liability policy in excess of the certificate of security deposit providing bodily injury coverage of
$125,000 per person, $250,000, per accident, and $50,000 for property damage, or $300,000 combined property
damage and bodily injury coverage. (Section 18) The bill then increases certificate of self-insurance minimum
unencumbered net worth requirements from:
     $40,000 to $100,000 for individuals; and
     $40,000 for the first vehicle and $20,000 for each additional vehicle to $100,000 and $50,000, respectively,
       for businesses.5 (Section 25)

Further, the bill:
    Increases minimum security limits for garage liability insurance from a $25,000 combined single limit for
       BI and PD to a $60,000 combined limit. (Section 8 and 9)
    Leaves for-hire passenger transportation vehicles at the current 125/250/50 coverage minimums. (Section
       19)
    Requires shared vehicle owners and shared vehicles drivers participating in a peer-to-peer car sharing
       program to have insurance policies that meet or exceed the required 25/50/10 coverage. (Section 52)
    As to commercial vehicles:
            o Increases minimum combined BI/PD coverage limits for commercial vehicles between 26,000
                pounds and 35,000 pounds from $50,000 per occurrence to $60,000 per occurrence;
            o Increases minimum combined BI/PD coverage limits for commercial vehicles 35,000 pounds or
                more but less than 44,000 pounds from $100,000 per occurrence to $120,000 per occurrence; and
            o Leaves minimum combined BI/PD coverage limits for commercial vehicles 44,000 pounds or more
                at $300,000 per occurrence. (Section 49)
    Leaves the required primary liability coverage minimum for autonomous vehicles at $1,000,000 for death,
       bodily injury, and property damage. (Section 53)
    Leaves minimum coverage limits for non-public-sector buses at the current 100/300/50 or combined 300
       amounts. (Section 13)


1 Proof of compliance with the Financial Responsibility Law at the time of registration does not change for motorcycles. However, within 30

days after receipt of a specified notice of accident involving a motorcycle within this state, under the bill, the DHSMV must suspend the
motorcycle operator’s license and all registrations of the motorcycle’s owner unless such operator or owner is found to be exempt from such
requirement or otherwise had in effect at the time of the crash a motor vehicle liability policy with respect to all of the registered
motorcycles owned by such operator or owner. For the purposes of the suspension provision, the term “motor vehicle” includes motorcycles.
(Section 20)
2 The bill also provides that a driver license or motor vehicle registration suspension for failure to maintain security under the Financial

Responsibility Law in effect before July 1, 2026, remains in full force and effect after July 1, 2026. Under the bill, a driver may reinstate such a
suspended driver license or registration after July 1, 2026, by showing proof of compliance with the amended Financial Responsibility Law
and paying a fee. (Sections 16 and 21)
3 The bill also increases the combined coverage limit minimum of $30,000 for property damage and bodily injury liability coverage to

$60,000. (Section 8)
4 The bill requires that proof of the certificate of deposit maintained in a financial institution insured by the Federal Deposit Insurance

Corporation or the National Credit Union Administration be submitted annually to the DHSMV. (Section 24)
5 In the alternative, businesses may still qualify for self-insurance by maintaining a sufficient net worth in an amount determined annually by

the DHSMV. (Section 25)

JUMP TO                    SUMMARY                         ANALYSIS                  RELEVANT INFORMATION                    BILL HISTORY
                                                                                                                                                  2
        Leaves minimum transportation network company coverage limits at 50/100/25 when logged on to the
         network but not engaged with a rider and $1 million when engaged in a prearranged ride. (Section 51)

         Coverage Transition

The bill provides for the transition of motor vehicle insurance policies from PIP coverage to BI/PD coverage if the
policies were issued before July 1, 2026, but still in force on that date and prohibits policies issued on or after July
1, 2026, from including PIP coverage. Under the bill, policies that were issued in compliance with the law in place
at the time of issuance are deemed to meet the new requirements until renewed, non-renewed, or canceled.
Insurers must also allow policyholders with PIP coverage to obtain BI coverage that complies with the changes
made by the bill without charge other than any payments for increased premium due, and refunds for decreased
premiums are also required. (Section 46)

         Notice Requirements

The bill requires insurers to give notice, by April 1, 2026, informing motor vehicle insurance policyholders that,
effective July 1, 2026:
     PIP is repealed.
     The insured is no longer required to carry PIP coverage.
     PIP is no longer available for purchase.
     New or renewal coverage will not include PIP.
     New BI requirements begin, with minimum coverage limits of 25/50/10.
     An insured may obtain uninsured/underinsured motorist coverage to protect themselves from damages
        caused by an uninsured/underinsured driver.
     Policies that comply with the requirements of law at the time of issue are deemed to meet the new
        requirements, until the policy is renewed, non-renewed, or canceled.
     Insureds may change their policies to comply with the new requirements.
     Insureds may contact the person specified in the notice at the telephone number provided with any
        questions.

The notice is subject to OIR’s approval. (Section 46)

         Rate Filings

The bill provides that insurer rate filings for motor vehicle liability submitted to OIR on or after July 1, 2026, must
be based on the new BI/PD coverage requirements and may only be approved through the file and use approval
process.6 (Section 38)

         Information Disclosure by Insurer

The bill authorizes the filing of an enforcement action if an insurer fails to comply with the information disclosure
requirements of s. 627.4137, F.S. In pertinent part, that section requires an insurer providing liability insurance
coverage to provide, within 30 days after the written request of a claimant or the claimant’s attorney, a statement,
under oath, setting forth the following information:
     The name of the insurer;
     The name of each insured;
     The limits of the liability coverage;
     A statement of any policy or coverage defense which the insurer reasonably believes it has available; and
     A copy of the policy.
Under the bill, if a court determines that an insurer violated such information disclosure requirements, a claimant
is entitled to an award of reasonable attorney fees and costs to be paid by the insurer. (Section 42)


6 In the file and use approval process, an insurer must file its proposed rates with OIR and have them approved before the rates may be

implemented. In contrast, under the use and file method, an insurer may implement new rates before getting OIR’s approval.

JUMP TO                   SUMMARY                        ANALYSIS                RELEVANT INFORMATION                  BILL HISTORY
                                                                                                                                          3
          Appropriation

The bill appropriates the sum of $83,651 in nonrecurring funds from the Insurance Regulatory Trust Fund to OIR
to implement changes made by the bill. (Section 60)

          Miscellaneous Provisions

The bill:
     Makes conforming changes to numerous sections of law.
     Provides an effective date of July 1, 2026, except as otherwise provided. (Section 61)

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have a fiscal impact on the state court system to the extent that it increases the number of tort
lawsuits filed. The bill may also have a fiscal impact on the Office of Insurance Regulation (“OIR”); however, the bill
makes an appropriation of $83,651 in non-recurring funds from the Insurance Regulatory Trust Fund to OIR to
address changes made by the bill.

PRIVATE SECTOR:
The bill may have an indeterminate economic impact on the private sector. Whether such impact is positive or
negative depends on whether the changes made by the bill increase or decrease motor vehicle insurance
premiums, and whether or not the elimination of PIP coverage results in the timely and sufficient reimbursement
of the medical expenses incurred by persons injured in automobile accidents.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
General Tort Law

The main purpose of Florida’s civil justice system is to properly and fairly redress the civil wrongs committed
throughout the state. A functioning civil justice system, when it operates justly:
     Provides a fair and equitable forum to resolve disputes;
     Discourages persons from resorting to self-help methods to redress wrongs;
     Appropriately compensates legitimately harmed persons;
     Shifts losses to responsible parties;
     Provides incentives to prevent future harm; and
     Deters undesirable behavior.7

A goal of the civil justice system is to redress tortious conduct, or “torts” – that is, wrongs for which the law
provides a remedy. Torts are generally divided into three categories, as follows:
     An intentional tort, examples of which include assault, battery, or false imprisonment.8
     Recklessness, which is behavior so careless that it is considered an extreme departure from the care a
        reasonable person would exercise in similar circumstances.9
     Negligence, which is the failure to behave with the level of care that an ordinary prudent person would
        have exercised under the same circumstances.10 To prevail in a negligence lawsuit, the plaintiff must show
        that the:
            o Defendant had a legal duty of care requiring the defendant to conform to a certain standard of
                 conduct for the protection of others, including the plaintiff, against unreasonable risks;
            o Defendant breached his or her duty of care by failing to conform to the required standard;

7 Cf. Am. Jur. 2d Torts s. 2.
8 Legal Information Institute, Intentional Tort, https://www.law.cornell.edu/wex/intentional_tort (last visited Mar. 27, 2025).
9 Legal Information Institute, Reckless, https://www.law.cornell.edu/wex/reckless (last visited Mar. 27, 2025).
10 Legal Information Institute, Negligence, https://www.law.cornell.edu/wex/negligence (last visited Mar. 27, 2025).


JUMP TO                         SUMMARY                  ANALYSIS                 RELEVANT INFORMATION                  BILL HISTORY
                                                                                                                                       4
               o    Defendant’s breach caused the plaintiff to suffer an injury; and
               o    Plaintiff suffered actual damage or loss resulting from such injury.11

Financial Responsibility Law

All states have financial responsibility laws requiring persons involved in motor vehicle accidents, or who commit
serious traffic violation, to furnish proof of bodily injury (“BI”) and property damage (“PD”) liability insurance at
the time of the accident or violation. Such insurance generally covers damages to the person or property of another
resulting from a motor vehicle accident caused by the insured, and limits the insured’s personal liability should he
or she be sued in connection with the accident to amounts exceeding the policy limits; however, required minimum
coverage amounts vary among the states.12

Florida’s Financial Responsibility Law generally requires proof of ability to pay monetary damages for BI and PD
liability arising out of a motor vehicle accident or serious traffic violation.13 Under Florida law, the owner or
operator of a motor vehicle must show proof of PD liability coverage at the time he or she registers the vehicle in
Florida.14 However, such person is generally not required to show proof of BI liability coverage at the time of
vehicle registration; instead, proof of such coverage is typically only required after an accident.15 At that time, a
driver proves financial responsibility by furnishing an active motor vehicle liability insurance policy meeting the
minimum coverage requirements, a certificate showing a qualifying security deposit made with the Department of
Highway Safety and Motor Vehicles (“DHSMV”), or proof of qualifying self-insurance.16 Where a driver does not
comply with the Financial Responsibility Law, his or her driver’s license and vehicle registration may be
suspended.17

Specifically, under the Financial Responsibility Law, a motor vehicle owner or operator must hold minimum:
    BI liability coverage of at least $10,000 in the event of the bodily injury to or death of one person and
        $20,000 in the event of the bodily injury to or death of two or more persons; and
    PD liability coverage of at least $10,000, in the event of damage to property of others; or
    $30,000 in combined BI and PD liability coverage.18

These coverage amounts are often referred to in a summary manner as $10,000/$20,000/$10,000 or
10/20/10.

Further, businesses that choose to self-insure must make a security deposit of $30,000 per vehicle, up to a
maximum of $120,000, with the DHSMV and maintain excess insurance with limits of
$125,000/$250,000/$300,000. Individuals that choose to self-insure must deposit $30,000 with the DHSMV.
Individuals and businesses can also obtain a certificate of self-insurance to satisfy the financial responsibility
requirements; however, individuals choosing this option must have an unencumbered net worth of $40,000, while
businesses choosing this option must have either an unencumbered net worth of $40,000 for the first vehicle and
$20,000 for each additional vehicle or a sufficient net worth as determined by DHSMV rule.19


11 6 Florida Practice Series s. 1.1; see Barnett v. Dept. of Fin. Serv., 303 So. 3d 508 (Fla. 2020).
12 Florida Department of Financial Services, Personal Automobile insurance Overview,

https://www.myfloridacfo.com/division/consumers/understanding-insurance/personal-automobile-insurance-overview (last visited Mar.
27, 2025).
13 “Motor vehicle” generally means every self-propelled vehicle that is designed and required to be licensed for use on the highway, but the

term does not include electric bicycles, mopeds, or farm tractors.
Ch. 324, F.S.
14 S. 320.02, F.S.
15 Exceptions apply where the person registering the motor vehicle has been found guilty of or entered a plea of guilty or no contest to a

charge of driving under the influence under s. 316.193, F.S. In such a case, the person registering the vehicle must show that he or she has
minimum BI liability coverage of $100,000 for the death of or injury to one person arising from a motor vehicle accident and $300,000 for
the death of or injury to any two or more persons arising from a motor vehicle accident. Ss. 320.02, 324.011, and 324.021, F.S.
16 Ss. 324.031, 324.061, 324.161, and 324.171, F.S.
17 S. 324.0221(2), F.S.
18 S. 324.022, F.S.
19 Currently, the applicable rule provides that $40,000 for the first vehicle and an amount less than $20,000 for each additional vehicle is

sufficient if the applicant carries excess insurance in the amounts of $25,000/$50,000/$100,000. The amount applicable to each additional
vehicle is set annually under a rule adopted by OIR. Rule 15A-3.011, F.A.C.

JUMP TO                     SUMMARY                           ANALYSIS                   RELEVANT INFORMATION           BILL HISTORY
                                                                                                                                               5
Personal Injury Protection Coverage

According to a recent survey, 14 states (including Florida) and Puerto Rico require motorists to carry, in addition
to BI and PD liability coverage, no-fault insurance known as personal injury protection (“PIP”) coverage; five states
and the District of Columbia make PIP coverage optional.20 Where it is available, PIP provides to the covered
person immediate medical, surgical, funeral, and disability insurance benefits up to the coverage limits after a
motor vehicle accident, regardless of who caused the accident.21

Florida’s Motor Vehicle No-Fault Law (“No-Fault Law”) requires all owners or registrants of motor vehicles with
four or more wheels, except school buses, limos, and taxicabs, to carry PIP insurance, which covers up to $10,000
in emergency medical and disability benefits (limited to $2,500 in medical benefits for non-emergency medical
conditions) and $5,000 in death benefits, along with 60 percent of income lost due to disability and replacement
services for household task the injured person would have handled but is now unable to perform (not to exceed
the $10,000 overall benefit limit).22 Where medical benefits are awarded, PIP covers 80 percent of reasonable
medical expenses paid to eligible medical providers; however, medical benefits are paid only if initial treatment is
received within 14 days of the accident, and massages and acupuncture are not covered.23

PIP coverage extends to the named insured, relatives of the named insured living in the same household, persons
operating the vehicle, and passengers in the vehicle, and it also protects a covered person struck and injured
outside a vehicle.24 In return for providing such benefits, the No-Fault Law limits the tort liability of an at-fault
driver in connection to a motor vehicle accident; instead, each person involved in the accident generally must seek
reimbursement of their medical expenses and related damages under their own PIP insurance, unless an exception
applies.25 Further, the No-Fault Law provides a conditional exclusion prohibiting recovery under a PIP policy for
certain non-economic damages,26 including pain and suffering, mental anguish, and inconvenience, and prohibits
the award of punitive damages.27

Critics of the No-Fault Law argue that the $10,000 PIP coverage limit, unchanged since the 1970s, is insufficient to
cover current medical costs. Further, one recent study notes that Florida currently has the highest average annual
cost for minimum motor vehicle insurance coverage, with an average premium of $1529 per vehicle per year; the
states with the next four highest averages (that is, New Jersey, Michigan, New York, and Delaware) also have
mandatory PIP coverage requirements.28


         Recent Legislative Reforms

After a statewide grand jury found evidence of rampant PIP fraud in Florida’s insurance market, the Florida
Legislature began a years-long effort to reform PIP insurance.29 Initially, in 2003, the Legislature provided for PIP

20 According to the survey, PIP is required in Delaware, Florida, Hawaii, Kansas, Kentucy, Massachusetts, Michigan, Minnesota, New Jersey,

New York, North Dakota, Oregon, Pennsylvania, Utah, and Puerto Rico; PIP is option in Arkansas, Connecticut, Maryland, Texas, Washington
State, and Washington, D.C. Penny Gusner, What Is Personal Injury Protection (PIP) And Do You Need It?,
https://www.forbes.com/advisor/car-insurance/pip-guide/ (last visited Mar. 27, 2025).
21 Id.
22 S. 627.7275, F.S.
23 Insurers may limit reimbursements to a fee schedule tied to the Medicare allowed amount. For many services, 80 percent of 200 percent

of the Medicare allowed amount is the standard reimbursement. S. 627.736(5)(a)1., F.S.
24 This includes non-resident owners who keep a vehicle in Florida for more than 90 days out of the previous 365 days. S. 627.733(2), F.S.
25 An injured person may still sue the at-fault driver if the injured person suffers significant and permanent loss of an important bodily

function; permanent injury within a reasonable degree of medical probability; significant and permanent scarring or disfigurement; or
death. Even in such suits, the injured party has no right to recover any damages for which PIP benefits are paid, or payable.
26 “Non-economic damages” are intangible harms, for which a dollar value is not readily attributable. Justia, Non-Economic Damages in

Personal Injury Lawsuits, https://www.justia.com/injury/negligence-theory/non-economic-damages/ (last visited Mar. 27, 2025).
27 “Punitive damages” are damages designed to punish a wrongdoer. Such damages are usually only awarded where the plaintiff can show

that the defendant’s misconduct was willful or wanton. Legal Information Institute, Punitive Damages,
https://www.law.cornell.edu/wex/punitive_damages (last visited Mar. 27, 2025).
28 Gusner, supra note 13.
29 The grand jury found evidence that such fraud included: 1) illegal solicitation of accident victims for the purpose of filing for PIP benefits

and motor vehicle tort claims; (2) brokering patients between doctors, lawyers, and diagnostic facilities; (3) billing insurance companies for

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                                                                                                                                                6
repeal through a sunset provision effective October 1, 2007; after the Governor vetoed a subsequent bill extending
PIP’s sunset period, PIP expired in 2007.30 However, the Legislature then revived PIP, effective January 1, 2008, in a
2007 Special Session,31 and subsequently revised the PIP law over several years.32 Revisions to PIP in these years
included:
     Establishing requirements for and limiting access to motor vehicle crash reports;
     Limiting medical services, reimbursement, and eligible providers;
     Requiring provider licensing;
     Requiring pre-suit demand letters;
     Increasing criminal penalties;
     Defining certain activities by claims handlers as unfair and deceptive trade practices;
     Limiting benefits for emergency and non-emergency medical conditions;
     Clarifying the application of the PIP medical reimbursement fee schedule;
     Allowing for the reimbursement of certain healthcare clinics for PIP-related medical services;
     Requiring rate filings with reduced PIP premiums; and
     Limiting attorney fees.33

Bills to once again repeal PIP have come before the Legislature for consideration in recent years, and in 2021, the
Legislature passed CS/CS/SB 54, which, in pertinent part, repealed the PIP coverage requirement and raised the
minimum coverage limits for motor vehicle owners and operators under the Financial Responsibility Law.
Specifically, the bill increased the minimum BI coverage limits from $10,000 per person and $20,000 per incident
to $25,000 per person and $50,000 per incident, but the minimum PD coverage limit remained unchanged at
$10,000.34 The bill also required insurers to offer medical payments coverage at limits of $5,000 and $10,000 with
no deductible, and authorized an insurer to offer medical payments coverage at limits greater than $5,000 and with
a deductible of up to $500; medical payments coverage in any amount also had to include an additional death
benefit of at least $5,000. Under the bill, a motor vehicle insurance policy was deemed to have $10,000 in med pay
coverage unless the insurer obtained the insured’s written refusal of medical payments coverage or a written
selection of medical payments coverage at a limit other than $10,000.

In conjunction with the passage of 2021 CS/CS/SB 54, OIR contracted with Pinnacle Actuarial Resources
(“Pinnacle”) to determine the impact such a repeal would have on motor vehicle insurance premiums in Florida.35
Released on June 14, 2021, the Pinnacle report estimated that, if PIP was repealed in Florida, motor vehicle
insurance premiums would see a 13.3 percent increase for all coverages combined, or $202 per vehicle annually
for the average driver; however, this estimate assumed that PIP would be replaced by opt-out medical payments
coverage with a default limit of $10,000.36 The report then went on to estimate that drivers rejecting medical
payments coverage would see an increase of 1.5 percent, or $23 per vehicle annually on the premium for all
coverages combined, while drivers electing to buy medical payments coverage with a $5,000 limit would see an 8.6
percent increase for the coverage premium, or approximately $131 per vehicle.37 The Governor ultimately vetoed
the bill, finding that “while the PIP system has flaws…[the bill] does not adequately address current issues facing
Florida drivers and may have unintended consequences that would negatively impact both the market and


treatment not rendered; (4) using phony diagnostic tests or misusing legitimate tests; (5) inflating charges for diagnostic tests or procedures
through brokers; and (6) filing fraudulent motor vehicle tort lawsuits. Fifteenth Statewide Grand Jury, Report on Insurance Fraud Related
To Personal Injury Protection, https://www.yourstpetelawyers.com/2000-statewide-grand-jury-report-on-pip-insurance-fraud-worth-
reading/ (last visited Mar. 27, 2025); Florida Supreme Court, Case Docket: Case No. SC 695746,
https://onlinedocketssc.flcourts.org/DocketResults/LTCases?CaseNumber=95746&CaseYear=1960 (last visited Mar. 27, 2025).
30 Ch. 2003-411, L.O.F.
31 Ch. 2007-324, L.O.F.
32 Ch. 2012-197, L.O.F.; ch. 2015-135, L.O.F.
33 Attorney fees in PIP disputes between an insured and an insurer were ultimately eliminated as part of a larger tort reform effort in 2023.

Ch. 2023-15, L.O.F.
34 The bill also included insurer “bad faith” reforms, a mandatory $5,000 death benefit, and a $10,000 setoff on damages where the injured

party lacked the required motor vehicle insurance. The Legislature ultimately adopted broader insurer “bad faith” reforms as part of a larger
tort reform effort in 2023. Ch. 2023-15, L.O.F.
35 Pinnacle Actuarial Resources, The Impact of Repealing Personal Injury Protection Coverage in Florida, https://fcep.org/wp-

content/uploads/2022/02/FloridaOIRPIPRepealImpactFinalReport06142021.pdf (last visited Mar. 27, 2025).
36 Id.
37 Id.


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consumers.”38 However, the instant bill does not include mandatory or opt-out medical payments coverage
provisions as 2021 CS/CS/SB 54 did, and OIR has not commissioned a study on what impact, if any, passage of this
bill would have on motor vehicle insurance premiums in Florida.

Medical Payments Coverage

Florida drivers have the option to purchase medical payments coverage, in addition to their PIP coverage, to cover
medical expenses (beyond those covered by PIP) resulting from injuries sustained in a motor vehicle accident.39
Like PIP, medical payments insurance differs from BI coverage in that it covers the medical expenses of the
insured, members of the insured’s family, and the insured’s passengers regardless of who caused the accident, and
it is available whether the covered person’s injury occurs while the covered person is in the insured’s car, in
someone else’s car, or a pedestrian.40 However, medical payments coverage is typically secondary to coverage
under any applicable health insurance policy; whether or not this is the case depends on the health insurance
policy’s terms.41

Uninsured Motorist Coverage

Florida drivers have the option to purchase uninsured motorist coverage to cover injuries and damages which they
sustain in a motor vehicle accident caused by an uninsured, or underinsured, driver; such coverage can be
important as, according to a recent study, 15.9 percent of Florida drivers lacked sufficient motor vehicle liability
insurance coverage.42 Given the risks posed by uninsured drivers, a standard motor vehicle liability insurance
policy issued in Florida comes with uninsured motorist coverage; to decline such coverage, the insured must opt
out of accepting it in writing.43 Further, an uninsured motorist coverage insurer’s legal liability does not include
non-economic damages for pain, suffering, disability or physical impairment, disfigurement, mental anguish,
inconvenience, or the loss of capacity for the enjoyment of life experienced in the past and to be experienced in the
future.44


RECENT LEGISLATION:

   YEAR             BILL #               HOUSE SPONSOR(S)                     SENATE SPONSOR                     OTHER INFORMATION

   2021          CS/CS/SB 54                       Grall                             Burgess                     Vetoed by the Governor.




38 Veto Letter of Ron DeSantis, Governor, (June 29, 2021) https://www.flgov.com/eog/sites/default/files/press/SB-54-Transmittal-

Letter.pdf (last visited Mar. 27, 2025).
39 The Florida Bar, Consumer Pamphlet: Automobile Insurance, https://www.floridabar.org/public/consumer/tip002/#Untitled%20Section

(last visited Mar. 27, 2025).
40 Id.
41 Investopedia, Medical Payments Coverage (MedPay): Overview and Examples, https://www.investopedia.com/terms/m/medical-

payments-coverage.asp (last visited Mar. 27, 2025).
42 S. 627.727, F.S.; Insurance Information Institute, Facts + Statistics: Uninsured Motorists, https://www.iii.org/fact-statistic/facts-statistics-

uninsured-motorists (last visited Mar. 27, 2025).
43 S. 627.727, F.S.
44 Id.


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                               BILL HISTORY
                                                        STAFF
                                                      DIRECTOR/       ANALYSIS
COMMITTEE REFERENCE        ACTION         DATE       POLICY CHIEF   PREPARED BY
Civil Justice & Claims     13 Y, 2 N    3/27/2025        Jones         Mawn
Subcommittee
Insurance & Banking                                     Hamon           Herrera
Subcommittee
Judiciary Committee




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           HB 1181                                                                                               2025




    1                                         A bill to be entitled
    2                An act relating to motor vehicle insurance; repealing
    3                ss. 627.730, 627.731, 627.7311, 627.732, 627.733,
    4                627.734, 627.736, 627.737, 627.739, 627.7401,
    5                627.7403, and 627.7405, F.S., which make up the
    6                Florida Motor Vehicle No-Fault Law; repealing s.
    7                627.7407, F.S., relating to application of the Florida
    8                Motor Vehicle No-Fault Law; amending s. 316.2122,
    9                F.S.; conforming a provision to changes made by the
10                   act; amending s. 316.646, F.S.; revising a requirement
11                   for proof of security on a motor vehicle and the
12                   applicability of the requirement; amending s. 318.18,
13                   F.S.; conforming a provision to changes made by the
14                   act; amending s. 320.02, F.S.; revising the motor
15                   vehicle insurance coverages that an applicant must
16                   show to register certain vehicles with the Department
17                   of Highway Safety and Motor Vehicles; conforming a
18                   provision to changes made by the act; revising
19                   construction; amending s. 320.0609, F.S.; conforming a
20                   provision to changes made by the act; amending s.
21                   320.27, F.S.; defining the term "garage liability
22                   insurance"; revising garage liability insurance
23                   requirements for motor vehicle dealer license
24                   applicants; conforming a provision to changes made by
25                   the act; making technical changes; amending s.

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        HB 1181                                                                                               2025




26                320.771, F.S.; revising garage liability insurance
27                requirements for recreational vehicle dealer license
28                applicants; amending ss. 322.251 and 322.34, F.S.;
29                conforming provisions to changes made by the act;
30                amending s. 324.011, F.S.; revising legislative
31                purpose and intent; amending s. 324.021, F.S.;
32                revising definitions; revising minimum coverage
33                requirements for proof of financial responsibility for
34                specified motor vehicles; conforming provisions to
35                changes made by the act; defining the term "for-hire
36                passenger transportation vehicle"; amending s.
37                324.022, F.S.; revising minimum liability coverage
38                requirements for motor vehicle owners or operators;
39                revising authorized methods for meeting such
40                requirements; deleting a provision relating to an
41                insurer's duty to defend certain claims; revising the
42                definition of the term "motor vehicle" to exclude some
43                vehicles; providing security requirements for certain
44                excluded vehicles; conforming provisions to changes
45                made by the act; amending s. 324.0221, F.S.; revising
46                coverages that subject a policy to certain insurer
47                reporting and notice requirements; conforming
48                provisions to changes made by the act; creating s.
49                324.0222, F.S.; providing that driver license or motor
50                vehicle registration suspensions for failure to

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        HB 1181                                                                                               2025




51                maintain required security which are in effect before
52                a specified date remain in full force and effect;
53                providing that such suspended licenses or
54                registrations may be reinstated as provided in a
55                specified section; amending s. 324.023, F.S.;
56                conforming cross-references; amending s. 324.031,
57                F.S.; specifying a method of proving financial
58                responsibility by owners or operators of motor
59                vehicles other than for-hire passenger transportation
60                vehicles; revising the amount of a certificate of
61                deposit required to elect a certain method of proof of
62                financial responsibility; revising liability coverage
63                requirements for a person electing to use such method;
64                amending s. 324.032, F.S.; revising financial
65                responsibility requirements for owners or lessees of
66                for-hire passenger transportation vehicles; amending
67                s. 324.051, F.S.; making technical changes; specifying
68                that motor vehicles include motorcycles for purposes
69                of the section; amending ss. 324.071 and 324.091,
70                F.S.; making technical changes; amending s. 324.151,
71                F.S.; revising requirements for motor vehicle
72                liability insurance policies relating to coverage, and
73                exclusion from coverage, for certain drivers and
74                vehicles; conforming provisions to changes made by the
75                act; making technical changes; defining terms;

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         HB 1181                                                                                               2025




76                 amending s. 324.161, F.S.; revising requirements for a
77                 certificate of deposit that is required if a person
78                 elects a certain method of proving financial
79                 responsibility; amending s. 324.171, F.S.; revising
80                 the minimum net worth requirements to qualify certain
81                 persons as self-insurers; conforming provisions to
82                 changes made by the act; amending s. 324.242, F.S.;
83                 conforming provisions to changes made by the act;
84                 amending s. 324.251, F.S.; revising a short title and
85                 an effective date; amending s. 400.9905, F.S.;
86                 revising the definition of the term "clinic";
87                 conforming provisions to changes made by the act;
88                 amending ss. 400.991 and 400.9935, F.S.; conforming
89                 provisions to changes made by the act; amending s.
90                 409.901, F.S.; revising the definition of the term
91                 "third-party benefit"; amending s. 409.910, F.S.;
92                 revising the definition of the term "medical
93                 coverage"; amending s. 456.057, F.S.; conforming a
94                 provision to changes made by the act; amending s.
95                 456.072, F.S.; revising specified grounds for
96                 discipline for certain health professions; defining
97                 the term "upcode"; conforming a provision to changes
98                 made by the act; amending s. 626.9541, F.S.;
99                 conforming a provision to changes made by the act;
100                revising certain prohibited acts related to specified

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         HB 1181                                                                                               2025




101                insurance coverage payment requirements; amending s.
102                626.989, F.S.; revising the definition of the term
103                "fraudulent insurance act"; amending s. 627.06501,
104                F.S.; revising coverages that may provide for a
105                reduction in motor vehicle insurance policy premium
106                charges under certain circumstances; amending s.
107                627.0651, F.S.; specifying requirements for rate
108                filings for motor vehicle liability policies that
109                implement requirements in effect on a specified date;
110                requiring that such filings be approved through a
111                certain process; amending s. 627.0652, F.S.; revising
112                coverages that must provide a premium charge reduction
113                under certain circumstances; amending s. 627.0653,
114                F.S.; revising coverages that are subject to premium
115                discounts for specified motor vehicle equipment;
116                amending s. 627.4132, F.S.; revising coverages that
117                are subject to a stacking prohibition; amending s.
118                627.4137, F.S.; requiring insurers to disclose certain
119                information at the request of a claimant's attorney;
120                authorizing a claimant to file an action under certain
121                circumstances; providing for the award of reasonable
122                attorney fees and costs under certain circumstances;
123                amending s. 627.7263, F.S.; revising coverages that
124                are deemed primary, except under certain
125                circumstances, for the lessor of a motor vehicle for

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         HB 1181                                                                                               2025




126                lease or rent; revising a notice that is required if
127                the lessee's coverage is to be primary; amending s.
128                627.727, F.S.; conforming provisions to changes made
129                by the act; revising the legal liability of an
130                uninsured motorist coverage insurer; amending s.
131                627.7275, F.S.; revising required coverages for a
132                motor vehicle insurance policy; conforming provisions
133                to changes made by the act; creating s. 627.7278,
134                F.S.; defining the term "minimum security
135                requirements"; providing a prohibition, requirements,
136                and construction relating to motor vehicle insurance
137                policies as of a certain date; requiring insurers to
138                allow certain insureds to make certain coverage
139                changes, subject to certain conditions; requiring an
140                insurer to provide, by a specified date, a specified
141                notice to policyholders relating to requirements under
142                the act; amending s. 627.728, F.S.; conforming a
143                provision to changes made by the act; amending s.
144                627.7295, F.S.; revising the definitions of the terms
145                "policy" and "binder"; revising the coverages of a
146                motor vehicle insurance policy for which a licensed
147                general lines agent may charge a specified fee;
148                conforming provisions to changes made by the act;
149                amending s. 627.7415, F.S.; revising additional
150                liability insurance requirements for commercial motor

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         HB 1181                                                                                               2025




151                vehicles; amending s. 627.747, F.S.; conforming
152                provisions to changes made by the act; amending s.
153                627.748, F.S.; revising insurance requirements for
154                transportation network company drivers; conforming
155                provisions to changes made by the act; conforming
156                cross-references; amending ss. 627.7483 and 627.749,
157                F.S.; conforming provisions to changes made by the
158                act; amending s. 627.8405, F.S.; revising coverages in
159                a policy sold in combination with an accidental death
160                and dismemberment policy which a premium finance
161                company may not finance; revising rulemaking authority
162                of the Financial Services Commission; amending ss.
163                627.915, 628.909, 705.184, and 713.78, F.S.;
164                conforming provisions to changes made by the act;
165                amending s. 817.234, F.S.; revising coverages that are
166                the basis of specified prohibited false and fraudulent
167                insurance claims; conforming provisions to changes
168                made by the act; deleting provisions relating to
169                prohibited changes in certain mental or physical
170                reports; providing an appropriation; providing
171                effective dates.
172
173      Be It Enacted by the Legislature of the State of Florida:
174
175                Section 1.       Sections 627.730, 627.731, 627.7311, 627.732,

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         HB 1181                                                                                               2025




176      627.733, 627.734, 627.736, 627.737, 627.739, 627.7401, 627.7403,
177      and 627.7405, Florida Statutes, are repealed.
178                Section 2.        Section 627.7407, Florida Statutes, is
179      repealed.
180                Section 3.       Paragraph (e) of subsection (2) of section
181      316.2122, Florida Statutes, is amended to read:
182                316.2122        Operation of a low-speed vehicle, mini truck, or
183      low-speed autonomous delivery vehicle on certain roadways.—
184                (2)     The operation of a low-speed autonomous delivery
185      vehicle on any road is authorized with the following
186      restrictions:
187                (e)     A low-speed autonomous delivery vehicle must be
188      covered by a policy of automobile insurance which provides the
189      coverage required by s. 627.749(2)(a)1. and, 2., and 3. The
190      coverage requirements of this paragraph may be satisfied by
191      automobile insurance maintained by the owner of a low-speed
192      autonomous delivery vehicle, the owner of the teleoperation
193      system, the remote human operator, or a combination thereof.
194                Section 4.       Subsection (1) of section 316.646, Florida
195      Statutes, is amended to read:
196                316.646     Security required; proof of security and display
197      thereof.—
198                (1)     A Any person required by s. 324.022, s. 324.023, s.
199      324.032, s. 627.7415, s. 627.742, s. 627.748, or s. 627.7483 to
200      maintain liability security for property damage, liability

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         HB 1181                                                                                               2025




201      security, required by s. 324.023 to maintain liability security
202      for bodily injury, or death must, or required by s. 627.733 to
203      maintain personal injury protection security on a motor vehicle
204      shall have in his or her immediate possession at all times while
205      operating a such motor vehicle proper proof of maintenance of
206      the required security.
207                (a)      Such proof must shall be in a uniform paper or
208      electronic format, as prescribed by the department, a valid
209      insurance policy, an insurance policy binder, a certificate of
210      insurance, or such other proof as may be prescribed by the
211      department.
212                (b)1.       The act of presenting to a law enforcement officer
213      an electronic device displaying proof of insurance in an
214      electronic format does not constitute consent for the officer to
215      access any information on the device other than the displayed
216      proof of insurance.
217                2.      The person who presents the device to the officer
218      assumes the liability for any resulting damage to the device.
219                Section 5.       Paragraph (b) of subsection (2) of section
220      318.18, Florida Statutes, is amended to read:
221                318.18       Amount of penalties.—The penalties required for a
222      noncriminal disposition pursuant to s. 318.14 or a criminal
223      offense listed in s. 318.17 are as follows:
224                (2)     Thirty dollars for all nonmoving traffic violations
225      and:

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         HB 1181                                                                                               2025




226                (b)     For all violations of ss. 320.0605, 320.07(1),
227      322.065, and 322.15(1). A Any person who is cited for a
228      violation of s. 320.07(1) must shall be charged a delinquent fee
229      pursuant to s. 320.07(4).
230                1.      If a person who is cited for a violation of s. 320.0605
231      or s. 320.07 can show proof of having a valid registration at
232      the time of arrest, the clerk of the court may dismiss the case
233      and may assess a dismissal fee of up to $10, from which the
234      clerk shall remit $2.50 to the Department of Revenue for deposit
235      into the General Revenue Fund. A person who finds it impossible
236      or impractical to obtain a valid registration certificate must
237      submit an affidavit detailing the reasons for the impossibility
238      or impracticality. The reasons may include, but are not limited
239      to, the fact that the vehicle was sold, stolen, or destroyed;
240      that the state in which the vehicle is registered does not issue
241      a certificate of registration; or that the vehicle is owned by
242      another person.
243                2.      If a person who is cited for a violation of s. 322.03,
244      s. 322.065, or s. 322.15 can show a driver license issued to him
245      or her and valid at the time of arrest, the clerk of the court
246      may dismiss the case and may assess a dismissal fee of up to
247      $10, from which the clerk shall remit $2.50 to the Department of
248      Revenue for deposit into the General Revenue Fund.
249                3.      If a person who is cited for a violation of s. 316.646
250      can show proof of security as required by s. 324.021(7) s.

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         HB 1181                                                                                               2025




251      627.733, issued to the person and valid at the time of arrest,
252      the clerk of the court may dismiss the case and may assess a
253      dismissal fee of up to $10, from which the clerk shall remit
254      $2.50 to the Department of Revenue for deposit into the General
255      Revenue Fund. A person who finds it impossible or impractical to
256      obtain proof of security must submit an affidavit detailing the
257      reasons for the impracticality. The reasons may include, but are
258      not limited to, the fact that the vehicle has since been sold,
259      stolen, or destroyed; that the owner or registrant of the
260      vehicle is not required by s. 627.733 to maintain personal
261      injury protection insurance; or that the vehicle is owned by
262      another person.
263                Section 6.       Paragraphs (a) and (d) of subsection (5) of
264      section 320.02, Florida Statutes, are amended to read:
265                320.02      Registration required; application for
266      registration; forms.—
267                (5)(a)      Proof that bodily injury liability coverage and
268      property damage liability coverage personal injury protection
269      benefits have been purchased if required under s. 324.022, s.
270      324.032, or s. 627.742 s. 627.733, that property damage
271      liability coverage has been purchased as required under s.
272      324.022, that bodily injury liability or death coverage has been
273      purchased if required under s. 324.023, and that combined bodily
274      liability insurance and property damage liability insurance have
275      been purchased if required under s. 627.7415 must shall be

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         HB 1181                                                                                               2025




276      provided in the manner prescribed by law by the applicant at the
277      time of application for registration of any motor vehicle that
278      is subject to such requirements. The issuing agent may not shall
279      refuse to issue registration if such proof of purchase is not
280      provided. Insurers shall furnish uniform proof-of-purchase cards
281      in a paper or electronic format in a form prescribed by the
282      department and include the name of the insured's insurance
283      company, the coverage identification number, and the make, year,
284      and vehicle identification number of the vehicle insured. The
285      card must contain a statement notifying the applicant of the
286      penalty specified under s. 316.646(4). The card or insurance
287      policy, insurance policy binder, or certificate of insurance or
288      a photocopy of any of these; an affidavit containing the name of
289      the insured's insurance company, the insured's policy number,
290      and the make and year of the vehicle insured; or such other
291      proof as may be prescribed by the department constitutes shall
292      constitute sufficient proof of purchase. If an affidavit is
293      provided as proof, it must be in substantially the following
294      form:
295
296      Under penalty of perjury, I ...(Name of insured)... do hereby
297      certify that I have ...(bodily injury liability and Personal
298      Injury Protection, property damage liability, and, if required,
299      Bodily Injury Liability)... insurance currently in effect with
300      ...(Name of insurance company)... under ...(policy number)...

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301      covering ...(make, year, and vehicle identification number of
302      vehicle).... ...(Signature of Insured)...
303
304      Such affidavit must include the following warning:
305
306      WARNING: GIVING FALSE INFORMATION IN ORDER TO OBTAIN A VEHICLE
307      REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA
308      LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS
309      SUBJECT TO PROSECUTION.
310
311      If an application is made through a licensed motor vehicle
312      dealer as required under s. 319.23, the original or a photocopy
313      photostatic copy of such card, insurance policy, insurance
314      policy binder, or certificate of insurance or the original
315      affidavit from the insured must shall be forwarded by the dealer
316      to the tax collector of the county or the Department of Highway
317      Safety and Motor Vehicles for processing. By executing the
318      aforesaid affidavit, a no licensed motor vehicle dealer is not
319      will be liable in damages for any inadequacy, insufficiency, or
320      falsification of any statement contained therein. A card must
321      also indicate the existence of any bodily injury liability
322      insurance voluntarily purchased.
323                (d)     The verifying of proof of personal injury protection
324      insurance, proof of property damage liability insurance, proof
325      of combined bodily liability insurance and property damage

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326      liability insurance, or proof of financial responsibility
327      insurance and the issuance or failure to issue the motor vehicle
328      registration under the provisions of this chapter may not be
329      construed in any court as a warranty of the reliability or
330      accuracy of the evidence of such proof or as meaning that the
331      provisions of any insurance policy furnished as proof of
332      financial responsibility comply with state law. Neither the
333      department nor any tax collector is liable in damages for any
334      inadequacy, insufficiency, falsification, or unauthorized
335      modification of any item of the proof of personal injury
336      protection insurance, proof of property damage liability
337      insurance, proof of combined bodily liability insurance and
338      property damage liability insurance, or proof of financial
339      responsibility before insurance prior to, during, or subsequent
340      to the verification of the proof. The issuance of a motor
341      vehicle registration does not constitute prima facie evidence or
342      a presumption of insurance coverage.
343                Section 7.       Paragraph (b) of subsection (1) of section
344      320.0609, Florida Statutes, is amended to read:
345                320.0609        Transfer and exchange of registration license
346      plates; transfer fee.—
347                (1)
348                (b)     The transfer of a license plate from a vehicle
349      disposed of to a newly acquired vehicle does not constitute a
350      new registration. The application for transfer must shall be

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351      accepted without requiring proof of personal injury protection
352      or liability insurance.
353                Section 8.       Subsection (3) of section 320.27, Florida
354      Statutes, is amended, and paragraph (g) is added to subsection
355      (1) of that section, to read:
356                320.27      Motor vehicle dealers.—
357                (1)     DEFINITIONS.—The following words, terms, and phrases
358      when used in this section have the meanings respectively
359      ascribed to them in this subsection, except where the context
360      clearly indicates a different meaning:
361                (g)     "Garage liability insurance" means, beginning July 1,
362      2026, combined single-limit liability coverage, including
363      property damage and bodily injury liability coverage, in the
364      amount of at least $60,000.
365                (3)     APPLICATION AND FEE.—The application for the license
366      application must shall be in such form as may be prescribed by
367      the department and is shall be subject to such rules with
368      respect thereto as may be so prescribed by the department it.
369      Such application must shall be verified by oath or affirmation
370      and must shall contain a full statement of the name and birth
371      date of the person or persons applying for the license therefor;
372      the name of the firm or copartnership, with the names and places
373      of residence of all members thereof, if such applicant is a firm
374      or copartnership; the names and places of residence of the
375      principal officers, if the applicant is a body corporate or

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376      other artificial body; the name of the state under whose laws
377      the corporation is organized; the present and former place or
378      places of residence of the applicant; and the prior business in
379      which the applicant has been engaged and its the location
380      thereof. The Such application must shall describe the exact
381      location of the place of business and must shall state whether
382      the place of business is owned by the applicant and when
383      acquired, or, if leased, a true copy of the lease must shall be
384      attached to the application. The applicant shall certify that
385      the location provides an adequately equipped office and is not a
386      residence; that the location affords sufficient unoccupied space
387      upon and within which adequately to store all motor vehicles
388      offered and displayed for sale; and that the location is a
389      suitable place where the applicant can in good faith carry on
390      such business and keep and maintain books, records, and files
391      necessary to conduct such business, which must shall be
392      available at all reasonable hours to inspection by the
393      department or any of its inspectors or other employees. The
394      applicant shall certify that the business of a motor vehicle
395      dealer is the principal business that will which shall be
396      conducted at that location. The application must shall contain a
397      statement that the applicant is either franchised by a
398      manufacturer of motor vehicles, in which case the name of each
399      motor vehicle that the applicant is franchised to sell must
400      shall be included, or an independent (nonfranchised) motor

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401      vehicle dealer. The application must shall contain other
402      relevant information as may be required by the department. The
403      applicant shall furnish, including evidence, in a form approved
404      by the department, that the applicant is insured under a garage
405      liability insurance policy or a general liability insurance
406      policy coupled with a business automobile policy having the
407      coverages and limits of garage liability insurance coverage in
408      accordance with paragraph (1)(g), which shall include, at a
409      minimum, $25,000 combined single-limit liability coverage
410      including bodily injury and property damage protection and
411      $10,000 personal injury protection. However, a salvage motor
412      vehicle dealer as defined in subparagraph (1)(c)5. is exempt
413      from the requirements for garage liability insurance and
414      personal injury protection insurance on those vehicles that
415      cannot be legally operated on roads, highways, or streets in
416      this state. Franchise dealers must submit a garage liability
417      insurance policy, and all other dealers must submit a garage
418      liability insurance policy or a general liability insurance
419      policy coupled with a business automobile policy. Such policy
420      must shall be for the license period, and evidence of a new or
421      continued policy must shall be delivered to the department at
422      the beginning of each license period. A licensee shall deliver
423      to the department, in the manner prescribed by the department,
424      within 10 calendar days after any renewal or continuation of or
425      change in such policy or within 10 calendar days after any

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426      issuance of a new policy, a copy of the renewed, continued,
427      changed, or new policy. Upon making an initial application, the
428      applicant shall pay to the department a fee of $300 in addition
429      to any other fees required by law. Applicants may choose to
430      extend the licensure period for 1 additional year for a total of
431      2 years. An initial applicant shall pay to the department a fee
432      of $300 for the first year and $75 for the second year, in
433      addition to any other fees required by law. An applicant for
434      renewal shall pay to the department $75 for a 1-year renewal or
435      $150 for a 2-year renewal, in addition to any other fees
436      required by law. Upon making an application for a change of
437      location, the applicant person shall pay a fee of $50 in
438      addition to any other fees now required by law. The department
439      shall, in the case of every application for initial licensure,
440      verify whether certain facts set forth in the application are
441      true. Each applicant, general partner in the case of a
442      partnership, or corporate officer and director in the case of a
443      corporate applicant shall, must file a set of fingerprints with
444      the department for the purpose of determining any prior criminal
445      record or any outstanding warrants. The department shall submit
446      the fingerprints to the Department of Law Enforcement for state
447      processing and forwarding to the Federal Bureau of Investigation
448      for federal processing. The actual cost of state and federal
449      processing must shall be borne by the applicant and is in
450      addition to the fee for licensure. The department may issue a

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451      license to an applicant pending the results of the fingerprint
452      investigation, which license is fully revocable if the
453      department subsequently determines that any facts set forth in
454      the application are not true or correctly represented.
455                Section 9.       Paragraph (j) of subsection (3) of section
456      320.771, Florida Statutes, is amended to read:
457                320.771     License required of recreational vehicle dealers.—
458                (3)     APPLICATION.—The application for such license shall be
459      in the form prescribed by the department and subject to such
460      rules as may be prescribed by it. The application shall be
461      verified by oath or affirmation and shall contain:
462                (j)     Evidence that the applicant is insured under a garage
463      liability insurance policy as defined in s. 320.27(1)(g), which
464      shall include, at a minimum, $25,000 combined single-limit
465      liability coverage, including bodily injury and property damage
466      protection, and $10,000 personal injury protection, if the
467      applicant is to be licensed as a dealer in, or intends to sell,
468      recreational vehicles. Such policy must be for the license
469      period. Within 10 calendar days after any renewal or
470      continuation of or material change in such policy or issuance of
471      a new policy, the licensee shall deliver to the department, in a
472      manner prescribed by the department, a copy of such renewed,
473      continued, changed, or new policy. However, a garage liability
474      policy is not required for the licensure of a mobile home dealer
475      who sells only park trailers.

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476
477      The department shall, if it deems necessary, cause an
478      investigation to be made to ascertain if the facts set forth in
479      the application are true and shall not issue a license to the
480      applicant until it is satisfied that the facts set forth in the
481      application are true.
482                Section 10.         Subsections (1) and (2) of section 322.251,
483      Florida Statutes, are amended to read:
484                322.251     Notice of cancellation, suspension, revocation, or
485      disqualification of license.—
486                (1)     All orders of cancellation, suspension, revocation, or
487      disqualification issued under the provisions of this chapter,
488      chapter 318, or chapter 324 must, or ss. 627.732-627.734 shall
489      be given either by personal delivery thereof to the licensee
490      whose license is being canceled, suspended, revoked, or
491      disqualified or by deposit in the United States mail in an
492      envelope, first class, postage prepaid, addressed to the
493      licensee at his or her last known mailing address furnished to
494      the department. Such mailing by the department constitutes
495      notification, and any failure by the person to receive the
496      mailed order will not affect or stay the effective date or term
497      of the cancellation, suspension, revocation, or disqualification
498      of the licensee's driving privilege.
499                (2)     The giving of notice and an order of cancellation,
500      suspension, revocation, or disqualification by mail is complete

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501      upon expiration of 20 days after deposit in the United States
502      mail for all notices except those issued under chapter 324 or
503      ss. 627.732–627.734, which are complete 15 days after deposit in
504      the United States mail. Proof of the giving of notice and an
505      order of cancellation, suspension, revocation, or
506      disqualification in either manner must shall be made by entry in
507      the records of the department that such notice was given. The
508      entry is admissible in the courts of this state and constitutes
509      sufficient proof that such notice was given.
510                Section 11.         Paragraph (a) of subsection (8) of section
511      322.34, Florida Statutes, is amended to read:
512                322.34      Driving while license suspended, revoked, canceled,
513      or disqualified.—
514                (8)(a)      Upon the arrest of a person for the offense of
515      driving while the person's driver license or driving privilege
516      is suspended or revoked, the arresting officer shall determine:
517                1.      Whether the person's driver license is suspended or
518      revoked, or the person is under suspension or revocation
519      equivalent status.
520                2.      Whether the person's driver license has remained
521      suspended or revoked, or the person has been under suspension or
522      revocation equivalent status, since a conviction for the offense
523      of driving with a suspended or revoked license.
524                3.      Whether the suspension, revocation, or suspension or
525      revocation equivalent status was made under s. 316.646 or s.

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526      627.733, relating to failure to maintain required security, or
527      under s. 322.264, relating to habitual traffic offenders.
528                4.      Whether the driver is the registered owner or co-owner
529      of the vehicle.
530                Section 12.         Section 324.011, Florida Statutes, is amended
531      to read:
532                324.011     Legislative intent; purpose of chapter.—
533                (1)     It is the intent of the Legislature that this chapter:
534                (a)     Ensure that the privilege of owning or operating a
535      motor vehicle in this state is exercised to recognize the
536      existing privilege to own or operate a motor vehicle on the
537      public streets and highways of this state when such vehicles are
538      used with due consideration for the safety of others and their
539      property., and to
540                (b)     Promote safety. and
541                (c)     Provide financial security requirements for such
542      owners and or operators whose responsibility it is to recompense
543      others for injury to person or property caused by the operation
544      of a motor vehicle.
545                (2)     The purpose of this chapter is to require every owner
546      or operator of a motor vehicle that is required to be registered
547      in this state to establish, maintain, Therefore, it is required
548      herein that the operator of a motor vehicle involved in a crash
549      or convicted of certain traffic offenses meeting the operative
550      provisions of s. 324.051(2) shall respond for such damages and

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551      show proof of financial ability to respond for damages arising
552      out of the ownership, maintenance, or use of a motor vehicle in
553      future accidents as a requisite to owning or operating a motor
554      vehicle in this state his or her future exercise of such
555      privileges.
556                Section 13.         Subsections (1) and (7) and paragraph (c) of
557      subsection (9) of section 324.021, Florida Statutes, are
558      amended, and subsection (12) is added to that section, to read:
559                324.021     Definitions; minimum insurance required.—The
560      following words and phrases when used in this chapter shall, for
561      the purpose of this chapter, have the meanings respectively
562      ascribed to them in this section, except in those instances
563      where the context clearly indicates a different meaning:
564                (1)     MOTOR VEHICLE.—Every self-propelled vehicle that is
565      designed and required to be licensed for use upon a highway,
566      including trailers and semitrailers designed for use with such
567      vehicles, except traction engines, road rollers, farm tractors,
568      power shovels, and well drillers, and every vehicle that is
569      propelled by electric power obtained from overhead wires but not
570      operated upon rails, but not including any personal delivery
571      device or mobile carrier as defined in s. 316.003, bicycle,
572      electric bicycle, or moped. However, the term "motor vehicle"
573      does not include a motor vehicle as defined in s. 627.732(3)
574      when the owner of such vehicle has complied with the
575      requirements of ss. 627.730-627.7405, inclusive, unless the

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576      provisions of s. 324.051 apply; and, in such case, the
577      applicable proof of insurance provisions of s. 320.02 apply.
578                (7)     PROOF OF FINANCIAL RESPONSIBILITY.—Beginning July 1,
579      2026, That proof of ability to respond in damages for liability
580      on account of crashes arising out of the ownership, maintenance,
581      or use of a motor vehicle:
582                (a)     With respect to a motor vehicle other than a
583      commercial motor vehicle, nonpublic sector bus, or for-hire
584      passenger transportation vehicle, in the amounts specified in s.
585      324.022(1). in the amount of $10,000 because of bodily injury
586      to, or death of, one person in any one crash;
587                (b)     Subject to such limits for one person, in the amount
588      of $20,000 because of bodily injury to, or death of, two or more
589      persons in any one crash;
590                (c)     In the amount of $10,000 because of injury to, or
591      destruction of, property of others in any one crash; and
592                (b)(d)      With respect to commercial motor vehicles and
593      nonpublic sector buses, in the amounts specified in s. 627.7415
594      ss. 627.7415 and 627.742, respectively.
595                (c)     With respect to nonpublic sector buses, in the amounts
596      specified in s. 627.742.
597                (d)     With respect to for-hire passenger transportation
598      vehicles, in the amounts specified in s. 324.032.
599                (9)     OWNER; OWNER/LESSOR; APPLICATION.—
600                (c)     Application.—

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601                1.      The limits on liability in subparagraphs (b)2. and 3.
602      do not apply to an owner of motor vehicles that are used for
603      commercial activity in the owner's ordinary course of business,
604      other than a rental company that rents or leases motor vehicles.
605      For purposes of this paragraph, the term "rental company"
606      includes only an entity that is engaged in the business of
607      renting or leasing motor vehicles to the general public and that
608      rents or leases a majority of its motor vehicles to persons with
609      no direct or indirect affiliation with the rental company. The
610      term "rental company" also includes:
611                a.      A related rental or leasing company that is a
612      subsidiary of the same parent company as that of the renting or
613      leasing company that rented or leased the vehicle.
614                b.      The holder of a motor vehicle title or an equity
615      interest in a motor vehicle title if the title or equity
616      interest is held pursuant to or to facilitate an asset-backed
617      securitization of a fleet of motor vehicles used solely in the
618      business of renting or leasing motor vehicles to the general
619      public and under the dominion and control of a rental company,
620      as described in this subparagraph, in the operation of such
621      rental company's business.
622                2.      Furthermore, with respect to commercial motor vehicles
623      as defined in s. 207.002 or s. 320.01(25) s. 627.732, the limits
624      on liability in subparagraphs (b)2. and 3. do not apply if, at
625      the time of the incident, the commercial motor vehicle is being

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626      used in the transportation of materials found to be hazardous
627      for the purposes of the Hazardous Materials Transportation
628      Authorization Act of 1994, as amended, 49 U.S.C. ss. 5101 et
629      seq., and that is required pursuant to such act to carry
630      placards warning others of the hazardous cargo, unless at the
631      time of lease or rental either:
632                a.      The lessee indicates in writing that the vehicle will
633      not be used to transport materials found to be hazardous for the
634      purposes of the Hazardous Materials Transportation Authorization
635      Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
636                b.      The lessee or other operator of the commercial motor
637      vehicle has in effect insurance with limits of at least $5
638      million $5,000,000 combined property damage and bodily injury
639      liability.
640                3.a.        A motor vehicle dealer, or a motor vehicle dealer's
641      leasing or rental affiliate, that provides a temporary
642      replacement vehicle at no charge or at a reasonable daily charge
643      to a service customer whose vehicle is being held for repair,
644      service, or adjustment by the motor vehicle dealer is immune
645      from any cause of action and is not liable, vicariously or
646      directly, under general law solely by reason of being the owner
647      of the temporary replacement vehicle for harm to persons or
648      property that arises out of the use, or operation, of the
649      temporary replacement vehicle by any person during the period
650      the temporary replacement vehicle has been entrusted to the

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651      motor vehicle dealer's service customer if there is no
652      negligence or criminal wrongdoing on the part of the motor
653      vehicle owner, or its leasing or rental affiliate.
654                b.      For purposes of this section, and notwithstanding any
655      other provision of general law, a motor vehicle dealer, or a
656      motor vehicle dealer's leasing or rental affiliate, that gives
657      possession, control, or use of a temporary replacement vehicle
658      to a motor vehicle dealer's service customer may not be adjudged
659      liable in a civil proceeding absent negligence or criminal
660      wrongdoing on the part of the motor vehicle dealer, or the motor
661      vehicle dealer's leasing or rental affiliate, if the motor
662      vehicle dealer or the motor vehicle dealer's leasing or rental
663      affiliate executes a written rental or use agreement and obtains
664      from the person receiving the temporary replacement vehicle a
665      copy of the person's driver license and insurance information
666      reflecting at least the minimum motor vehicle insurance coverage
667      required in the state. Any subsequent determination that the
668      driver license or insurance information provided to the motor
669      vehicle dealer, or the motor vehicle dealer's leasing or rental
670      affiliate, was in any way false, fraudulent, misleading,
671      nonexistent, canceled, not in effect, or invalid does not alter
672      or diminish the protections provided by this section, unless the
673      motor vehicle dealer, or the motor vehicle dealer's leasing or
674      rental affiliate, had actual knowledge thereof at the time
675      possession of the temporary replacement vehicle was provided.

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676                c.      For purposes of this subparagraph, the term:
677                (I)      "Control" means the power to direct the management and
678      policies of a person, whether through ownership of voting
679      securities or otherwise.
680                (II)        "Motor vehicle dealer's leasing or rental affiliate"
681      means a person who directly or indirectly controls, is
682      controlled by, or is under common control with the motor vehicle
683      dealer.
684                d.      For purposes of this subparagraph, the term "service
685      customer" does not include an agent or a principal of a motor
686      vehicle dealer or a motor vehicle dealer's leasing or rental
687      affiliate, and does not include an employee of a motor vehicle
688      dealer or a motor vehicle dealer's leasing or rental affiliate
689      unless the employee was provided a temporary replacement
690      vehicle:
691                (I)      While the employee's personal vehicle was being held
692      for repair, service, or adjustment by the motor vehicle dealer;
693                (II)        In the same manner as other customers who are
694      provided a temporary replacement vehicle while the customer's
695      vehicle is being held for repair, service, or adjustment; and
696                (III)        The employee was not acting within the course and
697      scope of his or her employment.
698                (12)        FOR-HIRE PASSENGER TRANSPORTATION VEHICLE.—Every for-
699      hire vehicle as defined in s. 320.01(15) which is offered or
700      used to provide transportation for persons, including taxicabs,

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         HB 1181                                                                                               2025




701      limousines, and jitneys.
702                Section 14.         Section 324.022, Florida Statutes, is amended
703      to read:
704                324.022     Financial responsibility requirements for property
705      damage.—
706                (1)(a)      Beginning July 1, 2026, every owner or operator of
707      a motor vehicle required to be registered in this state shall
708      establish and continuously maintain the ability to respond in
709      damages for liability on account of accidents arising out of the
710      use of the motor vehicle in the amount of:
711                1.      Twenty-five thousand dollars for bodily injury to, or
712      the death of, one person in any one crash and, subject to such
713      limits for one person, in the amount of $50,000 for bodily
714      injury to, or the death of, two or more persons in any one
715      crash; and
716                2.      Ten thousand dollars for $10,000 because of damage to,
717      or destruction of, property of others in any one crash.
718                (b)     The requirements of paragraph (a) this section may be
719      met by one of the methods established in s. 324.031; by self-
720      insuring as authorized by s. 768.28(16); or by maintaining a
721      motor vehicle liability insurance policy that an insurance
722      policy providing coverage for property damage liability in the
723      amount of at least $10,000 because of damage to, or destruction
724      of, property of others in any one accident arising out of the
725      use of the motor vehicle. The requirements of this section may

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         HB 1181                                                                                               2025




726      also be met by having a policy which provides combined property
727      damage liability and bodily injury liability coverage for any
728      one crash arising out of the ownership, maintenance, or use of a
729      motor vehicle and that conforms to the requirements of s.
730      324.151 in the amount of at least $60,000 for every owner or
731      operator subject to the financial responsibility required in
732      paragraph (a) $30,000 for combined property damage liability and
733      bodily injury liability for any one crash arising out of the use
734      of the motor vehicle. The policy, with respect to coverage for
735      property damage liability, must meet the applicable requirements
736      of s. 324.151, subject to the usual policy exclusions that have
737      been approved in policy forms by the Office of Insurance
738      Regulation. No insurer shall have any duty to defend uncovered
739      claims irrespective of their joinder with covered claims.
740                (2)      As used in this section, the term:
741                (a)      "Motor vehicle" means any self-propelled vehicle that
742      has four or more wheels and that is of a type designed and
743      required to be licensed for use on the highways of this state,
744      and any trailer or semitrailer designed for use with such
745      vehicle. The term does not include the following:
746                1.      A mobile home as defined in s. 320.01(2)(a).
747                2.      A motor vehicle that is used in mass transit and
748      designed to transport more than five passengers, exclusive of
749      the operator of the motor vehicle, and that is owned by a
750      municipality, transit authority, or political subdivision of the

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         HB 1181                                                                                               2025




751      state.
752                3.      A school bus as defined in s. 1006.25, which must
753      maintain security as required under s. 316.615.
754                4.      A commercial motor vehicle as defined in s. 207.002 or
755      s. 320.01(25), which must maintain security as required under
756      ss. 324.031 and 627.7415.
757                5.      A nonpublic sector bus, which must maintain security as
758      required under ss. 324.031 and 627.742.
759                6.4.        A vehicle providing for-hire passenger transportation
760      vehicle, which must that is subject to the provisions of s.
761      324.031. A taxicab shall maintain security as required under s.
762      324.032 s. 324.032(1).
763                7.5.        A personal delivery device as defined in s. 316.003,
764      which must maintain security as required under s. 316.2071(4).
765                (b)      "Owner" means the person who holds legal title to a
766      motor vehicle or the debtor or lessee who has the right to
767      possession of a motor vehicle that is the subject of a security
768      agreement or lease with an option to purchase.
769                (3)      Each nonresident owner or registrant of a motor
770      vehicle that, whether operated or not, has been physically
771      present within this state for more than 90 days during the
772      preceding 365 days shall maintain security as required by
773      subsection (1). The security must be that is in effect
774      continuously throughout the period the motor vehicle remains
775      within this state.

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         HB 1181                                                                                               2025




776                (4)     An The owner or registrant of a motor vehicle who is
777      exempt from the requirements of this section if she or he is a
778      member of the United States Armed Forces and is called to or on
779      active duty outside the United States in an emergency situation
780      is exempt from this section while he or she. The exemption
781      provided by this subsection applies only as long as the member
782      of the Armed Forces is on such active duty. This exemption
783      outside the United States and applies only while the vehicle
784      covered by the security is not operated by any person. Upon
785      receipt of a written request by the insured to whom the
786      exemption provided in this subsection applies, the insurer shall
787      cancel the coverages and return any unearned premium or suspend
788      the security required by this section. Notwithstanding s.
789      324.0221(2) s. 324.0221(3), the department may not suspend the
790      registration or operator's license of an any owner or registrant
791      of a motor vehicle during the time she or he qualifies for the
792      an exemption under this subsection. An Any owner or registrant
793      of a motor vehicle who qualifies for the an exemption under this
794      subsection shall immediately notify the department before prior
795      to and at the end of the expiration of the exemption.
796                Section 15.          Subsections (1) and (2) of section 324.0221,
797      Florida Statutes, are amended to read:
798                324.0221        Reports by insurers to the department; suspension
799      of driver license and vehicle registrations; reinstatement.—
800                (1)(a)      Each insurer that has issued a policy providing

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         HB 1181                                                                                               2025




801      personal injury protection coverage or property damage liability
802      coverage shall report the cancellation or nonrenewal thereof to
803      the department within 10 days after the processing date or
804      effective date of each cancellation or nonrenewal. Upon the
805      issuance of a policy providing personal injury protection
806      coverage or property damage liability coverage to a named
807      insured not previously insured by the insurer during that
808      calendar year, the insurer shall report the issuance of the new
809      policy to the department within 10 days. The report must shall
810      be in the form and format and contain any information required
811      by the department and must be provided in a format that is
812      compatible with the data processing capabilities of the
813      department. Failure by an insurer to file proper reports with
814      the department as required by this subsection constitutes a
815      violation of the Florida Insurance Code. These records may shall
816      be used by the department only for enforcement and regulatory
817      purposes, including the generation by the department of data
818      regarding compliance by owners of motor vehicles with the
819      requirements for financial responsibility coverage.
820                (b)     With respect to an insurance policy providing personal
821      injury protection coverage or property damage liability
822      coverage, each insurer shall notify the named insured, or the
823      first-named insured in the case of a commercial fleet policy, in
824      writing that any cancellation or nonrenewal of the policy will
825      be reported by the insurer to the department. The notice must

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         HB 1181                                                                                               2025




826      also inform the named insured that failure to maintain bodily
827      injury liability personal injury protection coverage and
828      property damage liability coverage on a motor vehicle when
829      required by law may result in the loss of registration and
830      driving privileges in this state and inform the named insured of
831      the amount of the reinstatement fees required by this section.
832      This notice is for informational purposes only, and an insurer
833      is not civilly liable for failing to provide this notice.
834                (2)     The department shall suspend, after due notice and an
835      opportunity to be heard, the registration and driver license of
836      any owner or registrant of a motor vehicle for with respect to
837      which security is required under s. 324.022, s. 324.023, s.
838      324.032, s. 627.7415, or s. 627.742 ss. 324.022 and 627.733
839      upon:
840                (a)     The department's records showing that the owner or
841      registrant of such motor vehicle does did not have the in full
842      force and effect when required security in full force and effect
843      that complies with the requirements of ss. 324.022 and 627.733;
844      or
845                (b)     Notification by the insurer to the department, in a
846      form approved by the department, of cancellation or termination
847      of the required security.
848                Section 16.          Section 324.0222, Florida Statutes, is created
849      to read:
850                324.0222        Application of driver license and registration

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         HB 1181                                                                                               2025




851      suspensions for failure to maintain security; reinstatement.—All
852      suspensions of driver licenses or motor vehicle registrations
853      for failure to maintain security as required by law in effect
854      before July 1, 2026, remain in full force and effect after July
855      1, 2026. A driver may reinstate a suspended driver license or
856      registration as provided under s. 324.0221.
857                Section 17.         Section 324.023, Florida Statutes, is amended
858      to read:
859                324.023     Financial responsibility for bodily injury or
860      death.—In addition to any other financial responsibility
861      required by law, every owner or operator of a motor vehicle that
862      is required to be registered in this state, or that is located
863      within this state, and who, regardless of adjudication of guilt,
864      has been found guilty of or entered a plea of guilty or nolo
865      contendere to a charge of driving under the influence under s.
866      316.193 after October 1, 2007, shall, by one of the methods
867      established in s. 324.031(1)(a) or (b) s. 324.031(1) or (2),
868      establish and maintain the ability to respond in damages for
869      liability on account of accidents arising out of the use of a
870      motor vehicle in the amount of $100,000 because of bodily injury
871      to, or death of, one person in any one crash and, subject to
872      such limits for one person, in the amount of $300,000 because of
873      bodily injury to, or death of, two or more persons in any one
874      crash and in the amount of $50,000 because of property damage in
875      any one crash. If the owner or operator chooses to establish and

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         HB 1181                                                                                               2025




876      maintain such ability by furnishing a certificate of deposit
877      pursuant to s. 324.031(1)(b) s. 324.031(2), such certificate of
878      deposit must be at least $350,000. Such higher limits must be
879      carried for a minimum period of 3 years. If the owner or
880      operator has not been convicted of driving under the influence
881      or a felony traffic offense for a period of 3 years from the
882      date of reinstatement of driving privileges for a violation of
883      s. 316.193, the owner or operator is shall be exempt from this
884      section.
885                Section 18.         Section 324.031, Florida Statutes, is amended
886      to read:
887                324.031      Manner of proving financial responsibility.—
888                (1)     The owner or operator of a taxicab, limousine, jitney,
889      or any other for-hire passenger transportation vehicle may prove
890      financial responsibility by providing satisfactory evidence of
891      holding a motor vehicle liability policy as defined in s.
892      324.021(8) or s. 324.151, which policy is issued by an insurance
893      carrier which is a member of the Florida Insurance Guaranty
894      Association. The operator or owner of a motor vehicle other than
895      a for-hire passenger transportation any other vehicle may prove
896      his or her financial responsibility by:
897                (a)(1)      Furnishing satisfactory evidence of holding a motor
898      vehicle liability policy as defined in ss. 324.021(8) and
899      324.151 which provides liability coverage for the motor vehicle
900      being operated;

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         HB 1181                                                                                               2025




901                (b)(2)      Furnishing a certificate of self-insurance showing
902      a deposit of cash in accordance with s. 324.161; or
903                (c)(3)      Furnishing a certificate of self-insurance issued
904      by the department in accordance with s. 324.171.
905                (2)      Beginning July 1, 2026, any person, including any
906      firm, partnership, association, corporation, or other person,
907      other than a natural person, electing to use the method of proof
908      specified in paragraph (1)(b) subsection (2) shall do both of
909      the following:
910                (a)     Furnish a certificate of deposit equal to the number
911      of vehicles owned times $60,000 $30,000, up to a maximum of
912      $240,000. $120,000;
913                (b)     In addition, any such person, other than a natural
914      person, shall Maintain insurance providing coverage that meets
915      the requirements of s. 324.151 and has in excess of limits of:
916                1.      At least $125,000 for bodily injury to, or the death
917      of, one person in any one crash and, subject to such limits for
918      one person, in the amount of $250,000 for bodily injury to, or
919      the death of, two or more persons in any one crash; and $50,000
920      for damage to, or destruction of, property of others in any one
921      crash; or
922                2.      At least $300,000 for combined bodily injury liability
923      and property damage liability for any one crash
924      $10,000/20,000/10,000 or $30,000 combined single limits, and
925      such excess insurance shall provide minimum limits of

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         HB 1181                                                                                               2025




926      $125,000/250,000/50,000 or $300,000 combined single limits.
927      These increased limits shall not affect the requirements for
928      proving financial responsibility under s. 324.032(1).
929                Section 19.         Section 324.032, Florida Statutes, is amended
930      to read:
931                324.032     Manner of proving Financial responsibility for;
932      for-hire passenger transportation vehicles.—Notwithstanding the
933      provisions of s. 324.031:
934                (1)     An owner or a lessee of a for-hire passenger
935      transportation vehicle that is required to be registered in this
936      state shall establish and continuously maintain the ability to
937      respond in damages for liability on account of accidents arising
938      out of the ownership, maintenance, or use of the for-hire
939      passenger transportation vehicle, in the amount of:
940                (a)     One hundred twenty-five thousand dollars for bodily
941      injury to, or the death of, one person in any one crash and,
942      subject to such limits for one person, in the amount of $250,000
943      for bodily injury to, or the death of, two or more persons in
944      any one crash; and A person who is either the owner or a lessee
945      required to maintain insurance under s. 627.733(1)(b) and who
946      operates one or more taxicabs, limousines, jitneys, or any other
947      for-hire passenger transportation vehicles may prove financial
948      responsibility by furnishing satisfactory evidence of holding a
949      motor vehicle liability policy, but with minimum limits of
950      $125,000/250,000/50,000.

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         HB 1181                                                                                               2025




951                (b)     Fifty thousand dollars for damage to, or destruction
952      of, property of others in any one crash A person who is either
953      the owner or a lessee required to maintain insurance under s.
954      324.021(9)(b) and who operates limousines, jitneys, or any other
955      for-hire passenger vehicles, other than taxicabs, may prove
956      financial responsibility by furnishing satisfactory evidence of
957      holding a motor vehicle liability policy as defined in s.
958      324.031.
959                (2)     Except as provided in subsection (3), the requirements
960      of this section must be met by the owner or lessee providing
961      satisfactory evidence of holding a motor vehicle liability
962      policy conforming to the requirements of s. 324.151 which is
963      issued by an insurance carrier that is a member of the Florida
964      Insurance Guaranty Association.
965                (3)     An owner or a lessee who is required to maintain
966      insurance under s. 324.021(9)(b) and who operates at least 300
967      taxicabs, limousines, jitneys, or any other for-hire passenger
968      transportation vehicles may provide financial responsibility by
969      complying with the provisions of s. 324.171, which must such
970      compliance to be demonstrated by maintaining at its principal
971      place of business an audited financial statement, prepared in
972      accordance with generally accepted accounting principles, and
973      providing to the department a certification issued by a
974      certified public accountant that the applicant's net worth is at
975      least equal to the requirements of s. 324.171 as determined by

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          HB 1181                                                                                               2025




976       the Office of Insurance Regulation of the Financial Services
977       Commission, including claims liabilities in an amount certified
978       as adequate by a Fellow of the Casualty Actuarial Society.
979
980       Upon request by the department, the applicant shall must provide
981       the department at the applicant's principal place of business in
982       this state access to the applicant's underlying financial
983       information and financial statements that provide the basis of
984       the certified public accountant's certification. The applicant
985       shall reimburse the requesting department for all reasonable
986       costs incurred by it in reviewing the supporting information.
987       The maximum amount of self-insurance permissible under this
988       subsection is $300,000 and must be stated on a per-occurrence
989       basis, and the applicant shall maintain adequate excess
990       insurance issued by an authorized or eligible insurer licensed
991       or approved by the Office of Insurance Regulation. All risks
992       self-insured shall remain with the owner or lessee providing it,
993       and the risks are not transferable to any other person, unless a
994       policy complying with subsections (1) and (2) subsection (1) is
995       obtained.
996                 Section 20.         Subsection (2) of section 324.051, Florida
997       Statutes, is amended, and subsection (4) is added to that
998       section, to read:
999                 324.051     Reports of crashes; suspensions of licenses and
1000      registrations.—

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          HB 1181                                                                                               2025




1001                (2)(a)      Thirty days after receipt of notice of any accident
1002      described in paragraph (1)(a) involving a motor vehicle within
1003      this state, the department shall suspend, after due notice and
1004      opportunity to be heard, the license of each operator and all
1005      registrations of the owner of the vehicles operated by such
1006      operator whether or not involved in such crash and, in the case
1007      of a nonresident owner or operator, shall suspend such
1008      nonresident's operating privilege in this state, unless such
1009      operator or owner shall, prior to the expiration of such 30
1010      days, be found by the department to be exempt from the operation
1011      of this chapter, based upon evidence satisfactory to the
1012      department that:
1013                1.      The motor vehicle was legally parked at the time of
1014      such crash.
1015                2.      The motor vehicle was owned by the United States
1016      Government, this state, or any political subdivision of this
1017      state or any municipality therein.
1018                3.      Such operator or owner has secured a duly acknowledged
1019      written agreement providing for release from liability by all
1020      parties injured as the result of said crash and has complied
1021      with one of the provisions of s. 324.031.
1022                4.      Such operator or owner has deposited with the
1023      department security to conform with s. 324.061 when applicable
1024      and has complied with one of the provisions of s. 324.031.
1025                5.      One year has elapsed since such owner or operator was

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          HB 1181                                                                                               2025




1026      suspended pursuant to subsection (3), the owner or operator has
1027      complied with one of the provisions of s. 324.031, and no bill
1028      of complaint of which the department has notice has been filed
1029      in a court of competent jurisdiction.
1030                (b)      This subsection does shall not apply:
1031                1.      To such operator or owner if such operator or owner had
1032      in effect at the time of such crash or traffic conviction a
1033      motor vehicle an automobile liability policy with respect to all
1034      of the registered motor vehicles owned by such operator or
1035      owner.
1036                2.      To such operator, if not the owner of such motor
1037      vehicle, if there was in effect at the time of such crash or
1038      traffic conviction a motor vehicle an automobile liability
1039      policy or bond with respect to his or her operation of motor
1040      vehicles not owned by him or her.
1041                3.      To such operator or owner if the liability of such
1042      operator or owner for damages resulting from such crash is, in
1043      the judgment of the department, covered by any other form of
1044      liability insurance or bond.
1045                4.      To any person who has obtained from the department a
1046      certificate of self-insurance, in accordance with s. 324.171, or
1047      to any person operating a motor vehicle for such self-insurer.
1048
1049      A No such policy or bond is not shall be effective under this
1050      subsection unless it contains limits of not less than those

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          HB 1181                                                                                               2025




1051      specified in s. 324.021(7).
1052                (4)     As used in this section, the term "motor vehicle"
1053      includes a motorcycle as defined in s. 320.01(26).
1054                Section 21.         Section 324.071, Florida Statutes, is amended
1055      to read:
1056                324.071     Reinstatement; renewal of license; reinstatement
1057      fee.—An Any operator or owner whose license or registration has
1058      been suspended pursuant to s. 324.051(2), s. 324.072, s.
1059      324.081, or s. 324.121 may effect its reinstatement upon
1060      compliance with the provisions of s. 324.051(2)(a)3. or 4., or
1061      s. 324.081(2) and (3), as the case may be, and with one of the
1062      provisions of s. 324.031 and upon payment to the department of a
1063      nonrefundable reinstatement fee of $15. Only one such fee may
1064      shall be paid by any one person regardless irrespective of the
1065      number of licenses and registrations to be then reinstated or
1066      issued to such person. All Such fees must shall be deposited in
1067      to a department trust fund. If When the reinstatement of any
1068      license or registration is effected by compliance with s.
1069      324.051(2)(a)3. or 4., the department may shall not renew the
1070      license or registration within a period of 3 years after from
1071      such reinstatement, and no nor shall any other license or
1072      registration may be issued in the name of such person, unless
1073      the operator continues is continuing to comply with one of the
1074      provisions of s. 324.031.
1075                Section 22.         Subsection (1) of section 324.091, Florida

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          HB 1181                                                                                               2025




1076      Statutes, is amended to read:
1077                324.091     Notice to department; notice to insurer.—
1078                (1)     Each owner and operator involved in a crash or
1079      conviction case within the purview of this chapter shall furnish
1080      evidence of automobile liability insurance or motor vehicle
1081      liability insurance within 14 days after the date of the mailing
1082      of notice of crash by the department in the form and manner as
1083      it may designate. Upon receipt of evidence that a an automobile
1084      liability policy or motor vehicle liability policy was in effect
1085      at the time of the crash or conviction case, the department
1086      shall forward to the insurer such information for verification
1087      in a method as determined by the department. The insurer shall
1088      respond to the department within 20 days after the notice as to
1089      whether or not such information is valid. If the department
1090      determines that a an automobile liability policy or motor
1091      vehicle liability policy was not in effect and did not provide
1092      coverage for both the owner and the operator, it must shall take
1093      action as it is authorized to do under this chapter.
1094                Section 23.         Section 324.151, Florida Statutes, is amended
1095      to read:
1096                324.151     Motor vehicle liability policies; required
1097      provisions.—
1098                (1)     A motor vehicle liability policy that serves as to be
1099      proof of financial responsibility under s. 324.031(1)(a) must s.
1100      324.031(1) shall be issued to owners or operators of motor

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          HB 1181                                                                                               2025




1101      vehicles under the following provisions:
1102                (a)     A motor vehicle An owner's liability insurance policy
1103      issued to an owner of a motor vehicle required to be registered
1104      in this state must designate by explicit description or by
1105      appropriate reference all motor vehicles for with respect to
1106      which coverage is thereby granted. The policy, must insure the
1107      person or persons owner named therein, and, unless except for a
1108      named driver excluded under s. 627.747, must insure any resident
1109      relative of a named insured other person as operator using such
1110      motor vehicle or motor vehicles with the express or implied
1111      permission of such owner against loss from the liability imposed
1112      by law for damage arising out of the ownership, maintenance, or
1113      use of any such motor vehicle or motor vehicles within the
1114      United States or the Dominion of Canada, subject to limits,
1115      exclusive of interest and costs with respect to each such motor
1116      vehicle as is provided for under s. 324.021(7). The policy must
1117      also insure any person operating an insured motor vehicle with
1118      the express or implied permission of a named insured against
1119      loss from the liability imposed by law for damage arising out of
1120      the use of any motor vehicle, unless that person was excluded
1121      under s. 627.747. However, the insurer may include provisions in
1122      its policy excluding liability coverage for a motor vehicle not
1123      designated as an insured vehicle on the policy if such motor
1124      vehicle does not qualify as a newly acquired vehicle or as a
1125      temporary substitute vehicle and was owned by the insured or was

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          HB 1181                                                                                               2025




1126      furnished for an insured's regular use for more than 30
1127      consecutive days before the event giving rise to the claim.
1128      Insurers may make available, with respect to property damage
1129      liability coverage, a deductible amount not to exceed $500. In
1130      the event of a property damage loss covered by a policy
1131      containing a property damage deductible provision, the insurer
1132      shall pay to the third-party claimant the amount of any property
1133      damage liability settlement or judgment, subject to policy
1134      limits, as if no deductible existed.
1135                (b)     A motor vehicle liability insurance policy issued to a
1136      person who does not own a An operator's motor vehicle must
1137      liability policy of insurance shall insure the person or persons
1138      named therein against loss from the liability imposed upon him
1139      or her by law for damages arising out of the use by the person
1140      of any motor vehicle not owned by him or her, with the same
1141      territorial limits and subject to the same limits of liability
1142      as referred to above with respect to an owner's policy of
1143      liability insurance.
1144                (c)     All such motor vehicle liability policies must provide
1145      liability coverage with limits, exclusive of interest and costs,
1146      greater than or equal to the limits specified under s.
1147      324.021(7) for accidents occurring within the United States and
1148      Canada. The policies must shall state the name and address of
1149      the named insured, the coverage afforded by the policy, the
1150      premium charged therefor, the policy period, and the limits of

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          HB 1181                                                                                               2025




1151      liability, and must shall contain an agreement or be endorsed
1152      that insurance is provided in accordance with the coverage
1153      defined in this chapter as respects bodily injury and death or
1154      property damage or both and is subject to all provisions of this
1155      chapter. The Said policies must shall also contain a provision
1156      that the satisfaction by an insured of a judgment for such
1157      injury or damage may shall not be a condition precedent to the
1158      right or duty of the insurance carrier to make payment on
1159      account of such injury or damage, and must shall also contain a
1160      provision that bankruptcy or insolvency of the insured or of the
1161      insured's estate does shall not relieve the insurance carrier of
1162      any of its obligations under the said policy.
1163                (2)     The provisions of This section is shall not be
1164      applicable to any motor vehicle automobile liability policy
1165      unless and until it is furnished as proof of financial
1166      responsibility for the future pursuant to s. 324.031, and then
1167      applies only from and after the date the said policy is so
1168      furnished.
1169                (3)     As used in this section, the term:
1170                (a)     "Newly acquired vehicle" means a vehicle owned by a
1171      named insured or resident relative of the named insured which
1172      was acquired no more than 30 days before an accident.
1173                (b)     "Resident relative" means a person related to a named
1174      insured by any degree by blood, marriage, or adoption, including
1175      a ward or foster child, who makes his or her home in the same

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          HB 1181                                                                                               2025




1176      family unit or residence as the named insured, regardless of
1177      whether he or she temporarily lives elsewhere.
1178                (c)     "Temporary substitute vehicle" means any motor vehicle
1179      that is not owned by the named insured and that is temporarily
1180      used with the permission of the owner as a substitute for the
1181      owned motor vehicle designated on the policy when the owned
1182      vehicle is withdrawn from normal use because of breakdown,
1183      repair, servicing, loss, or destruction.
1184                Section 24.         Section 324.161, Florida Statutes, is amended
1185      to read:
1186                324.161     Proof of financial responsibility; deposit.—If a
1187      person elects to prove his or her financial responsibility under
1188      the method of proof specified in s. 324.031(1)(b), he or she
1189      annually must obtain and submit to the department proof of a
1190      certificate of deposit in the amount required under s.
1191      324.031(2) from a financial institution insured by the Federal
1192      Deposit Insurance Corporation or the National Credit Union
1193      Administration Annually, before any certificate of insurance may
1194      be issued to a person, including any firm, partnership,
1195      association, corporation, or other person, other than a natural
1196      person, proof of a certificate of deposit of $30,000 issued and
1197      held by a financial institution must be submitted to the
1198      department. A power of attorney will be issued to and held by
1199      the department, and may be executed upon a judgment issued
1200      against such person making the deposit, for damages for because

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          HB 1181                                                                                               2025




1201      of bodily injury to or death of any person or for damages for
1202      because of injury to or destruction of property resulting from
1203      the use or operation of any motor vehicle occurring after such
1204      deposit was made. Money so deposited is shall not be subject to
1205      attachment or execution unless such attachment or execution
1206      arises shall arise out of a lawsuit suit for such damages as
1207      aforesaid.
1208                Section 25.         Subsections (1) and (2) of section 324.171,
1209      Florida Statutes, are amended to read:
1210                324.171     Self-insurer.—
1211                (1)     A Any person may qualify as a self-insurer by
1212      obtaining a certificate of self-insurance from the department.
1213      which may, in its discretion and Upon application of such a
1214      person, the department may issue a said certificate of self-
1215      insurance to an applicant who satisfies when such person has
1216      satisfied the requirements of this section. Effective July 1,
1217      2026 to qualify as a self-insurer under this section:
1218                (a)     A private individual with private passenger vehicles
1219      shall possess a net unencumbered worth of at least $100,000
1220      $40,000.
1221                (b)     A person, including any firm, partnership,
1222      association, corporation, or other person, other than a natural
1223      person, shall:
1224                1.      Possess a net unencumbered worth of at least $100,000
1225      $40,000 for the first motor vehicle and $50,000 $20,000 for each

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          HB 1181                                                                                               2025




1226      additional motor vehicle; or
1227                2.      Maintain sufficient net worth, in an amount determined
1228      by the department, to be financially responsible for potential
1229      losses. The department annually shall determine the minimum net
1230      worth sufficient to satisfy this subparagraph as determined
1231      annually by the department, pursuant to rules adopted
1232      promulgated by the department, with the assistance of the Office
1233      of Insurance Regulation of the Financial Services Commission, to
1234      be financially responsible for potential losses. The rules must
1235      consider any shall take into consideration excess insurance
1236      carried by the applicant. The department's determination must
1237      shall be based upon reasonable actuarial principles considering
1238      the frequency, severity, and loss development of claims incurred
1239      by casualty insurers writing coverage on the type of motor
1240      vehicles for which a certificate of self-insurance is desired.
1241                (c)     The owner of a commercial motor vehicle, as defined in
1242      s. 207.002 or s. 320.01(25) s. 320.01, may qualify as a self-
1243      insurer subject to the standards provided for in subparagraph
1244      (b)2.
1245                (2)     The self-insurance certificate must shall provide
1246      limits of liability insurance in the amounts specified under s.
1247      324.021(7) or s. 627.7415 and shall provide personal injury
1248      protection coverage under s. 627.733(3)(b).
1249                Section 26.         Subsections (1) and (3) of section 324.242,
1250      Florida Statutes, are amended to read:

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          HB 1181                                                                                               2025




1251                324.242     Personal injury protection and property damage
1252      Liability insurance policies; public records exemption.—
1253                (1)     The following information regarding motor vehicle
1254      personal injury protection and property damage liability
1255      insurance policies held by the department is confidential and
1256      exempt from s. 119.07(1) and s. 24(a), Art. I of the State
1257      Constitution:
1258                (a)     Personal identifying information of an insured or
1259      former insured; and
1260                (b)     An insurance policy number.
1261                (3)     The department shall provide motor vehicle personal
1262      injury protection and property damage liability insurance policy
1263      numbers to department-approved third parties that provide data
1264      collection services to an insurer of any person involved in such
1265      accident.
1266                Section 27.          Section 324.251, Florida Statutes, is amended
1267      to read:
1268                324.251      Short title.—This chapter may be cited as the
1269      "Financial Responsibility Law of 2025 1955" and is shall become
1270      effective at 12:01 a.m., July 1, 2026 October 1, 1955.
1271                Section 28.          Subsection (4) of section 400.9905, Florida
1272      Statutes, is amended to read:
1273                400.9905        Definitions.—
1274                (4)(a)      "Clinic" means an entity where health care services
1275      are provided to individuals and which tenders charges for

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          HB 1181                                                                                               2025




1276      reimbursement for such services, including a mobile clinic and a
1277      portable equipment provider. As used in this part, the term does
1278      not include and the licensure requirements of this part do not
1279      apply to:
1280                1.(a)       Entities licensed or registered by the state under
1281      chapter 395; entities licensed or registered by the state and
1282      providing only health care services within the scope of services
1283      authorized under their respective licenses under ss. 383.30-
1284      383.332, chapter 390, chapter 394, chapter 397, this chapter
1285      except part X, chapter 429, chapter 463, chapter 465, chapter
1286      466, chapter 478, chapter 484, or chapter 651; end-stage renal
1287      disease providers authorized under 42 C.F.R. part 494; providers
1288      certified and providing only health care services within the
1289      scope of services authorized under their respective
1290      certifications under 42 C.F.R. part 485, subpart B, subpart H,
1291      or subpart J; providers certified and providing only health care
1292      services within the scope of services authorized under their
1293      respective certifications under 42 C.F.R. part 486, subpart C;
1294      providers certified and providing only health care services
1295      within the scope of services authorized under their respective
1296      certifications under 42 C.F.R. part 491, subpart A; providers
1297      certified by the Centers for Medicare and Medicaid Services
1298      under the federal Clinical Laboratory Improvement Amendments and
1299      the federal rules adopted thereunder; or any entity that
1300      provides neonatal or pediatric hospital-based health care

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          HB 1181                                                                                               2025




1301      services or other health care services by licensed practitioners
1302      solely within a hospital licensed under chapter 395.
1303                2.(b)       Entities that own, directly or indirectly, entities
1304      licensed or registered by the state pursuant to chapter 395;
1305      entities that own, directly or indirectly, entities licensed or
1306      registered by the state and providing only health care services
1307      within the scope of services authorized pursuant to their
1308      respective licenses under ss. 383.30-383.332, chapter 390,
1309      chapter 394, chapter 397, this chapter except part X, chapter
1310      429, chapter 463, chapter 465, chapter 466, chapter 478, chapter
1311      484, or chapter 651; end-stage renal disease providers
1312      authorized under 42 C.F.R. part 494; providers certified and
1313      providing only health care services within the scope of services
1314      authorized under their respective certifications under 42 C.F.R.
1315      part 485, subpart B, subpart H, or subpart J; providers
1316      certified and providing only health care services within the
1317      scope of services authorized under their respective
1318      certifications under 42 C.F.R. part 486, subpart C; providers
1319      certified and providing only health care services within the
1320      scope of services authorized under their respective
1321      certifications under 42 C.F.R. part 491, subpart A; providers
1322      certified by the Centers for Medicare and Medicaid Services
1323      under the federal Clinical Laboratory Improvement Amendments and
1324      the federal rules adopted thereunder; or any entity that
1325      provides neonatal or pediatric hospital-based health care

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          HB 1181                                                                                               2025




1326      services by licensed practitioners solely within a hospital
1327      licensed under chapter 395.
1328                3.(c)       Entities that are owned, directly or indirectly, by
1329      an entity licensed or registered by the state pursuant to
1330      chapter 395; entities that are owned, directly or indirectly, by
1331      an entity licensed or registered by the state and providing only
1332      health care services within the scope of services authorized
1333      pursuant to their respective licenses under ss. 383.30-383.332,
1334      chapter 390, chapter 394, chapter 397, this chapter except part
1335      X, chapter 429, chapter 463, chapter 465, chapter 466, chapter
1336      478, chapter 484, or chapter 651; end-stage renal disease
1337      providers authorized under 42 C.F.R. part 494; providers
1338      certified and providing only health care services within the
1339      scope of services authorized under their respective
1340      certifications under 42 C.F.R. part 485, subpart B, subpart H,
1341      or subpart J; providers certified and providing only health care
1342      services within the scope of services authorized under their
1343      respective certifications under 42 C.F.R. part 486, subpart C;
1344      providers certified and providing only health care services
1345      within the scope of services authorized under their respective
1346      certifications under 42 C.F.R. part 491, subpart A; providers
1347      certified by the Centers for Medicare and Medicaid Services
1348      under the federal Clinical Laboratory Improvement Amendments and
1349      the federal rules adopted thereunder; or any entity that
1350      provides neonatal or pediatric hospital-based health care

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          HB 1181                                                                                               2025




1351      services by licensed practitioners solely within a hospital
1352      under chapter 395.
1353                4.(d)       Entities that are under common ownership, directly
1354      or indirectly, with an entity licensed or registered by the
1355      state pursuant to chapter 395; entities that are under common
1356      ownership, directly or indirectly, with an entity licensed or
1357      registered by the state and providing only health care services
1358      within the scope of services authorized pursuant to their
1359      respective licenses under ss. 383.30-383.332, chapter 390,
1360      chapter 394, chapter 397, this chapter except part X, chapter
1361      429, chapter 463, chapter 465, chapter 466, chapter 478, chapter
1362      484, or chapter 651; end-stage renal disease providers
1363      authorized under 42 C.F.R. part 494; providers certified and
1364      providing only health care services within the scope of services
1365      authorized under their respective certifications under 42 C.F.R.
1366      part 485, subpart B, subpart H, or subpart J; providers
1367      certified and providing only health care services within the
1368      scope of services authorized under their respective
1369      certifications under 42 C.F.R. part 486, subpart C; providers
1370      certified and providing only health care services within the
1371      scope of services authorized under their respective
1372      certifications under 42 C.F.R. part 491, subpart A; providers
1373      certified by the Centers for Medicare and Medicaid Services
1374      under the federal Clinical Laboratory Improvement Amendments and
1375      the federal rules adopted thereunder; or any entity that

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          HB 1181                                                                                               2025




1376      provides neonatal or pediatric hospital-based health care
1377      services by licensed practitioners solely within a hospital
1378      licensed under chapter 395.
1379                5.(e)       An entity that is exempt from federal taxation under
1380      26 U.S.C. s. 501(c)(3) or (4), an employee stock ownership plan
1381      under 26 U.S.C. s. 409 that has a board of trustees at least
1382      two-thirds of which are Florida-licensed health care
1383      practitioners and provides only physical therapy services under
1384      physician orders, any community college or university clinic,
1385      and any entity owned or operated by the federal or state
1386      government, including agencies, subdivisions, or municipalities
1387      thereof.
1388                6.(f)       A sole proprietorship, group practice, partnership,
1389      or corporation that provides health care services by physicians
1390      covered by s. 627.419, that is directly supervised by one or
1391      more of such physicians, and that is wholly owned by one or more
1392      of those physicians or by a physician and the spouse, parent,
1393      child, or sibling of that physician.
1394                7.(g)       A sole proprietorship, group practice, partnership,
1395      or corporation that provides health care services by licensed
1396      health care practitioners under chapter 457, chapter 458,
1397      chapter 459, chapter 460, chapter 461, chapter 462, chapter 463,
1398      chapter 466, chapter 467, chapter 480, chapter 484, chapter 486,
1399      chapter 490, chapter 491, or part I, part III, part X, part
1400      XIII, or part XIV of chapter 468, or s. 464.012, and that is

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          HB 1181                                                                                               2025




1401      wholly owned by one or more licensed health care practitioners,
1402      or the licensed health care practitioners set forth in this
1403      subparagraph paragraph and the spouse, parent, child, or sibling
1404      of a licensed health care practitioner if one of the owners who
1405      is a licensed health care practitioner is supervising the
1406      business activities and is legally responsible for the entity's
1407      compliance with all federal and state laws. However, a health
1408      care practitioner may not supervise services beyond the scope of
1409      the practitioner's license, except that, for the purposes of
1410      this part, a clinic owned by a licensee in s. 456.053(3)(b)
1411      which provides only services authorized pursuant to s.
1412      456.053(3)(b) may be supervised by a licensee specified in s.
1413      456.053(3)(b).
1414                8.(h)       Clinical facilities affiliated with an accredited
1415      medical school at which training is provided for medical
1416      students, residents, or fellows.
1417                9.(i)       Entities that provide only oncology or radiation
1418      therapy services by physicians licensed under chapter 458 or
1419      chapter 459 or entities that provide oncology or radiation
1420      therapy services by physicians licensed under chapter 458 or
1421      chapter 459 which are owned by a corporation whose shares are
1422      publicly traded on a recognized stock exchange.
1423                10.(j)      Clinical facilities affiliated with a college of
1424      chiropractic accredited by the Council on Chiropractic Education
1425      at which training is provided for chiropractic students.

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          HB 1181                                                                                               2025




1426                11.(k)      Entities that provide licensed practitioners to
1427      staff emergency departments or to deliver anesthesia services in
1428      facilities licensed under chapter 395 and that derive at least
1429      90 percent of their gross annual revenues from the provision of
1430      such services. Entities claiming an exemption from licensure
1431      under this subparagraph paragraph must provide documentation
1432      demonstrating compliance.
1433                12.(l)      Orthotic, prosthetic, pediatric cardiology, or
1434      perinatology clinical facilities or anesthesia clinical
1435      facilities that are not otherwise exempt under subparagraph 1.
1436      or subparagraph 11. paragraph (a) or paragraph (k) and that are
1437      a publicly traded corporation or are wholly owned, directly or
1438      indirectly, by a publicly traded corporation. As used in this
1439      subparagraph paragraph, a publicly traded corporation is a
1440      corporation that issues securities traded on an exchange
1441      registered with the United States Securities and Exchange
1442      Commission as a national securities exchange.
1443                13.(m)      Entities that are owned by a corporation that has
1444      $250 million or more in total annual sales of health care
1445      services provided by licensed health care practitioners where
1446      one or more of the persons responsible for the operations of the
1447      entity is a health care practitioner who is licensed in this
1448      state and who is responsible for supervising the business
1449      activities of the entity and is responsible for the entity's
1450      compliance with state law for purposes of this part.

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          HB 1181                                                                                               2025




1451                14.(n)      Entities that employ 50 or more licensed health
1452      care practitioners licensed under chapter 458 or chapter 459
1453      where the billing for medical services is under a single tax
1454      identification number. The application for exemption under this
1455      subsection must include shall contain information that includes:
1456      the name, residence, and business address and telephone phone
1457      number of the entity that owns the practice; a complete list of
1458      the names and contact information of all the officers and
1459      directors of the corporation; the name, residence address,
1460      business address, and medical license number of each licensed
1461      Florida health care practitioner employed by the entity; the
1462      corporate tax identification number of the entity seeking an
1463      exemption; a listing of health care services to be provided by
1464      the entity at the health care clinics owned or operated by the
1465      entity; and a certified statement prepared by an independent
1466      certified public accountant which states that the entity and the
1467      health care clinics owned or operated by the entity have not
1468      received payment for health care services under medical payments
1469      personal injury protection insurance coverage for the preceding
1470      year. If the agency determines that an entity that which is
1471      exempt under this subsection has received payments for medical
1472      services under medical payments personal injury protection
1473      insurance coverage, the agency may deny or revoke the exemption
1474      from licensure under this subsection.
1475                15.(o)      Entities that are, directly or indirectly, under

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          HB 1181                                                                                               2025




1476      the common ownership of or that are subject to common control by
1477      a mutual insurance holding company, as defined in s. 628.703,
1478      with an entity issued a certificate of authority under chapter
1479      624 or chapter 641 which has $1 billion or more in total annual
1480      sales in this state.
1481                16.(p)      Entities that are owned by an entity that is a
1482      behavioral health care service provider in at least five other
1483      states; that, together with its affiliates, have $90 million or
1484      more in total annual revenues associated with the provision of
1485      behavioral health care services; and wherein one or more of the
1486      persons responsible for the operations of the entity is a health
1487      care practitioner who is licensed in this state, who is
1488      responsible for supervising the business activities of the
1489      entity, and who is responsible for the entity's compliance with
1490      state law for purposes of this part.
1491                17.(q)      Medicaid providers.
1492                (b)     Notwithstanding paragraph (a) this subsection, an
1493      entity shall be deemed a clinic and must be licensed under this
1494      part in order to receive medical payments coverage reimbursement
1495      unless the entity is:
1496                1.      Wholly owned by a physician licensed under chapter 458
1497      or chapter 459 or by the physician and the spouse, parent,
1498      child, or sibling of the physician;
1499                2.      Wholly owned by a dentist licensed under chapter 466 or
1500      by the dentist and the spouse, parent, child, or sibling of the

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          HB 1181                                                                                               2025




1501      dentist;
1502                3.      Wholly owned by a chiropractic physician licensed under
1503      chapter 460 or by the chiropractic physician and the spouse,
1504      parent, child, or sibling of the chiropractic physician;
1505                4.      A hospital or an ambulatory surgical center licensed
1506      under chapter 395;
1507                5.      An entity that wholly owns or is wholly owned, directly
1508      or indirectly, by a hospital or hospitals licensed under chapter
1509      395;
1510                6.      A clinical facility affiliated with an accredited
1511      medical school at which training is provided for medical
1512      students, residents, or fellows;
1513                7.      Certified under 42 C.F.R. part 485, subpart H; or
1514                8.      Owned by a publicly traded corporation, either directly
1515      or indirectly through its subsidiaries, which has $250 million
1516      or more in total annual sales of health care services provided
1517      by licensed health care practitioners, if one or more of the
1518      persons responsible for the operations of the entity are health
1519      care practitioners who are licensed in this state and who are
1520      responsible for supervising the business activities of the
1521      entity and the entity's compliance with state law for purposes
1522      of this subsection under the Florida Motor Vehicle No-Fault Law,
1523      ss. 627.730-627.7405, unless exempted under s. 627.736(5)(h).
1524                Section 29.         Subsection (5) of section 400.991, Florida
1525      Statutes, is amended to read:

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          HB 1181                                                                                               2025




1526                400.991     License requirements; background screenings;
1527      prohibitions.—
1528                (5)     All agency forms for licensure application or
1529      exemption from licensure under this part must contain the
1530      following statement:
1531
1532                INSURANCE FRAUD NOTICE.—A person commits a fraudulent
1533                insurance act, as defined in s. 626.989, Florida
1534                Statutes, if the person who knowingly submits a false,
1535                misleading, or fraudulent application or other
1536                document when applying for licensure as a health care
1537                clinic, seeking an exemption from licensure as a
1538                health care clinic, or demonstrating compliance with
1539                part X of chapter 400, Florida Statutes, with the
1540                intent to use the license, exemption from licensure,
1541                or demonstration of compliance to provide services or
1542                seek reimbursement under a motor vehicle liability
1543                insurance policy's medical payments coverage the
1544                Florida Motor Vehicle No-Fault Law, commits a
1545                fraudulent insurance act, as defined in s. 626.989,
1546                Florida Statutes. A person who presents a claim for
1547                benefits under medical payments coverage personal
1548                injury protection benefits knowing that the payee
1549                knowingly submitted such health care clinic
1550                application or document commits insurance fraud, as

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          HB 1181                                                                                               2025




1551                defined in s. 817.234, Florida Statutes.
1552                Section 30.          Paragraph (g) of subsection (1) of section
1553      400.9935, Florida Statutes, is amended to read:
1554                400.9935        Clinic responsibilities.—
1555                (1)     Each clinic shall appoint a medical director or clinic
1556      director who shall agree in writing to accept legal
1557      responsibility for the following activities on behalf of the
1558      clinic. The medical director or the clinic director shall:
1559                (g)     Conduct systematic reviews of clinic billings to
1560      ensure that the billings are not fraudulent or unlawful. Upon
1561      discovery of an unlawful charge, the medical director or clinic
1562      director shall take immediate corrective action. If the clinic
1563      performs only the technical component of magnetic resonance
1564      imaging, static radiographs, computed tomography, or positron
1565      emission tomography, and provides the professional
1566      interpretation of such services, in a fixed facility that is
1567      accredited by a national accrediting organization that is
1568      approved by the Centers for Medicare and Medicaid Services for
1569      magnetic resonance imaging and advanced diagnostic imaging
1570      services and if, in the preceding quarter, the percentage of
1571      scans performed by that clinic which was billed to motor vehicle
1572      all personal injury protection insurance carriers under medical
1573      payments coverage was less than 15 percent, the chief financial
1574      officer of the clinic may, in a written acknowledgment provided
1575      to the agency, assume the responsibility for the conduct of the

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          HB 1181                                                                                               2025




1576      systematic reviews of clinic billings to ensure that the
1577      billings are not fraudulent or unlawful.
1578                Section 31.           Subsection (28) of section 409.901, Florida
1579      Statutes, is amended to read:
1580                409.901       Definitions; ss. 409.901-409.920.—As used in ss.
1581      409.901-409.920, except as otherwise specifically provided, the
1582      term:
1583                (28)        "Third-party benefit" means any benefit that is or
1584      may be available at any time through contract, court award,
1585      judgment, settlement, agreement, or any arrangement between a
1586      third party and any person or entity, including, without
1587      limitation, a Medicaid recipient, a provider, another third
1588      party, an insurer, or the agency, for any Medicaid-covered
1589      injury, illness, goods, or services, including costs of medical
1590      services related thereto, for bodily personal injury or for
1591      death of the recipient, but specifically excluding policies of
1592      life insurance policies on the recipient, unless available under
1593      terms of the policy to pay medical expenses before prior to
1594      death. The term includes, without limitation, collateral, as
1595      defined in this section;, health insurance;, any benefit under a
1596      health maintenance organization, a preferred provider
1597      arrangement, a prepaid health clinic, liability insurance,
1598      uninsured motorist insurance, or medical payments coverage; or
1599      personal injury protection coverage, medical benefits under
1600      workers' compensation;, and any obligation under law or equity

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          HB 1181                                                                                               2025




1601      to provide medical support.
1602                Section 32.           Paragraph (f) of subsection (11) of section
1603      409.910, Florida Statutes, is amended to read:
1604                409.910        Responsibility for payments on behalf of Medicaid-
1605      eligible persons when other parties are liable.—
1606                (11)        The agency may, as a matter of right, in order to
1607      enforce its rights under this section, institute, intervene in,
1608      or join any legal or administrative proceeding in its own name
1609      in one or more of the following capacities: individually, as
1610      subrogee of the recipient, as assignee of the recipient, or as
1611      lienholder of the collateral.
1612                (f)      Notwithstanding any provision in this section to the
1613      contrary, in the event of an action in tort against a third
1614      party in which the recipient or his or her legal representative
1615      is a party which results in a judgment, award, or settlement
1616      from a third party, the amount recovered shall be distributed as
1617      follows:
1618                1.      After attorney attorney's fees and taxable costs as
1619      defined by the Florida Rules of Civil Procedure, one-half of the
1620      remaining recovery shall be paid to the agency up to the total
1621      amount of medical assistance provided by Medicaid.
1622                2.      The remaining amount of the recovery shall be paid to
1623      the recipient.
1624                3.      For purposes of calculating the agency's recovery of
1625      medical assistance benefits paid, the fee for services of an

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          HB 1181                                                                                               2025




1626      attorney retained by the recipient or his or her legal
1627      representative shall be calculated at 25 percent of the
1628      judgment, award, or settlement.
1629                4.      Notwithstanding any other provision of this section to
1630      the contrary, the agency is shall be entitled to all medical
1631      coverage benefits up to the total amount of medical assistance
1632      provided by Medicaid. For purposes of this paragraph, the term
1633      "medical coverage" means any benefits under health insurance, a
1634      health maintenance organization, a preferred provider
1635      arrangement, or a prepaid health clinic, and the portion of
1636      benefits designated for medical payments under coverage for
1637      workers' compensation coverage, motor vehicle insurance
1638      coverage, personal injury protection, and casualty coverage.
1639                Section 33.         Paragraph (k) of subsection (2) of section
1640      456.057, Florida Statutes, is amended to read:
1641                456.057     Ownership and control of patient records; report
1642      or copies of records to be furnished; disclosure of
1643      information.—
1644                (2)     As used in this section, the terms "records owner,"
1645      "health care practitioner," and "health care practitioner's
1646      employer" do not include any of the following persons or
1647      entities; furthermore, the following persons or entities are not
1648      authorized to acquire or own medical records, but are authorized
1649      under the confidentiality and disclosure requirements of this
1650      section to maintain those documents required by the part or

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          HB 1181                                                                                               2025




1651      chapter under which they are licensed or regulated:
1652                (k)     Persons or entities practicing under s. 627.736(7).
1653                Section 34.           Paragraphs (ee) and (ff) of subsection (1) of
1654      section 456.072, Florida Statutes, are amended to read:
1655                456.072       Grounds for discipline; penalties; enforcement.—
1656                (1)     The following acts shall constitute grounds for which
1657      the disciplinary actions specified in subsection (2) may be
1658      taken:
1659                (ee)        With respect to making a medical payments coverage
1660      personal injury protection claim as required by s. 627.736,
1661      intentionally submitting a claim, statement, or bill that has
1662      been upcoded. As used in this paragraph, the term "upcode" means
1663      to submit a billing code that would result in a greater payment
1664      amount than would be paid using a billing code that accurately
1665      describes the services performed. The term does not include an
1666      otherwise lawful bill by a magnetic resonance imaging facility
1667      which globally combines both technical and professional
1668      components, if the amount of the global bill is not more than
1669      the components if billed separately; however, payment of such a
1670      bill constitutes payment in full for all components of such
1671      service "upcoded" as defined in s. 627.732.
1672                (ff)        With respect to making a medical payments coverage
1673      personal injury protection claim as required by s. 627.736,
1674      intentionally submitting a claim, statement, or bill for payment
1675      of services that were not rendered.

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          HB 1181                                                                                               2025




1676                Section 35.          Paragraphs (i) and (o) of subsection (1) of
1677      section 626.9541, Florida Statutes, are amended to read:
1678                626.9541        Unfair methods of competition and unfair or
1679      deceptive acts or practices defined.—
1680                (1)      UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1681      ACTS.—The following are defined as unfair methods of competition
1682      and unfair or deceptive acts or practices:
1683                (i)     Unfair claim settlement practices.—
1684                1.      Attempting to settle claims on the basis of an
1685      application, when serving as a binder or intended to become a
1686      part of the policy, or any other material document which was
1687      altered without notice to, or knowledge or consent of, the
1688      insured;
1689                2.      Making a material misrepresentation made to an insured
1690      or any other person having an interest in the proceeds payable
1691      under such contract or policy, for the purpose and with the
1692      intent of effecting settlement of such claims, loss, or damage
1693      under such contract or policy on less favorable terms than those
1694      provided in, and contemplated by, such contract or policy;
1695                3.      Committing or performing with such frequency as to
1696      indicate a general business practice any of the following:
1697                a.      Failing to adopt and implement standards for the proper
1698      investigation of claims;
1699                b.      Misrepresenting pertinent facts or insurance policy
1700      provisions relating to coverages at issue;

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          HB 1181                                                                                               2025




1701                c.      Failing to acknowledge and act promptly upon
1702      communications with respect to claims;
1703                d.      Denying claims without conducting reasonable
1704      investigations based upon available information;
1705                e.      Failing to affirm or deny full or partial coverage of
1706      claims, and, as to partial coverage, the dollar amount or extent
1707      of coverage, or failing to provide a written statement that the
1708      claim is being investigated, upon the written request of the
1709      insured within 30 days after proof-of-loss statements have been
1710      completed;
1711                f.      Failing to promptly provide a reasonable explanation in
1712      writing to the insured of the basis in the insurance policy, in
1713      relation to the facts or applicable law, for denial of a claim
1714      or for the offer of a compromise settlement;
1715                g.      Failing to promptly notify the insured of any
1716      additional information necessary for the processing of a claim;
1717                h.      Failing to clearly explain the nature of the requested
1718      information and the reasons why such information is necessary;
1719      or
1720                i.      Failing to pay personal injury protection insurance
1721      claims within the time periods required by s. 627.736(4)(b). The
1722      office may order the insurer to pay restitution to a
1723      policyholder, medical provider, or other claimant, including
1724      interest at a rate consistent with the amount set forth in s.
1725      55.03(1), for the time period within which an insurer fails to

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          HB 1181                                                                                               2025




1726      pay claims as required by law. Restitution is in addition to any
1727      other penalties allowed by law, including, but not limited to,
1728      the suspension of the insurer's certificate of authority; or
1729                j.      Altering or amending an insurance adjuster's report
1730      without:
1731                (I)      Providing a detailed explanation as to why any change
1732      that has the effect of reducing the estimate of the loss was
1733      made; and
1734                (II)        Including on the report or as an addendum to the
1735      report a detailed list of all changes made to the report and the
1736      identity of the person who ordered each change; or
1737                (III)        Retaining all versions of the report, and including
1738      within each such version, for each change made within such
1739      version of the report, the identity of each person who made or
1740      ordered such change; or
1741                4.      Failing to pay undisputed amounts of partial or full
1742      benefits owed under first-party property insurance policies
1743      within 60 days after an insurer receives notice of a residential
1744      property insurance claim, determines the amounts of partial or
1745      full benefits, and agrees to coverage, unless payment of the
1746      undisputed benefits is prevented by factors beyond the control
1747      of the insurer as defined in s. 627.70131(5).
1748                (o)     Illegal dealings in premiums; excess or reduced
1749      charges for insurance.—
1750                1.      Knowingly collecting any sum as a premium or charge for

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          HB 1181                                                                                               2025




1751      insurance, which is not then provided, or is not in due course
1752      to be provided, subject to acceptance of the risk by the
1753      insurer, by an insurance policy issued by an insurer as
1754      permitted by this code.
1755                2.      Knowingly collecting as a premium or charge for
1756      insurance any sum in excess of or less than the premium or
1757      charge applicable to such insurance, in accordance with the
1758      applicable classifications and rates as filed with and approved
1759      by the office, and as specified in the policy; or, in cases when
1760      classifications, premiums, or rates are not required by this
1761      code to be so filed and approved, premiums and charges collected
1762      from a Florida resident in excess of or less than those
1763      specified in the policy and as fixed by the insurer.
1764      Notwithstanding any other provision of law, this provision shall
1765      not be deemed to prohibit the charging and collection, by
1766      surplus lines agents licensed under part VIII of this chapter,
1767      of the amount of applicable state and federal taxes, or fees as
1768      authorized by s. 626.916(4), in addition to the premium required
1769      by the insurer or the charging and collection, by licensed
1770      agents, of the exact amount of any discount or other such fee
1771      charged by a credit card facility in connection with the use of
1772      a credit card, as authorized by subparagraph (q)3., in addition
1773      to the premium required by the insurer. This subparagraph shall
1774      not be construed to prohibit collection of a premium for a
1775      universal life or a variable or indeterminate value insurance

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          HB 1181                                                                                               2025




1776      policy made in accordance with the terms of the contract.
1777                3.a.        Imposing or requesting an additional premium for
1778      bodily injury liability coverage, property damage liability
1779      coverage a policy of motor vehicle liability, personal injury
1780      protection, medical payments coverage payment, or collision
1781      coverage in a motor vehicle liability insurance policy insurance
1782      or any combination thereof or refusing to renew the policy
1783      solely because the insured was involved in a motor vehicle
1784      accident unless the insurer's file contains information from
1785      which the insurer in good faith determines that the insured was
1786      substantially at fault in the accident.
1787                b.      An insurer which imposes and collects such a surcharge
1788      or which refuses to renew such policy shall, in conjunction with
1789      the notice of premium due or notice of nonrenewal, notify the
1790      named insured that he or she is entitled to reimbursement of
1791      such amount or renewal of the policy under the conditions listed
1792      below and will subsequently reimburse him or her or renew the
1793      policy, if the named insured demonstrates that the operator
1794      involved in the accident was:
1795                (I)      Lawfully parked;
1796                (II)        Reimbursed by, or on behalf of, a person responsible
1797      for the accident or has a judgment against such person;
1798                (III)        Struck in the rear by another vehicle headed in the
1799      same direction and was not convicted of a moving traffic
1800      violation in connection with the accident;

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          HB 1181                                                                                               2025




1801                (IV)        Hit by a "hit-and-run" driver, if the accident was
1802      reported to the proper authorities within 24 hours after
1803      discovering the accident;
1804                (V)      Not convicted of a moving traffic violation in
1805      connection with the accident, but the operator of the other
1806      automobile involved in such accident was convicted of a moving
1807      traffic violation;
1808                (VI)        Finally adjudicated not to be liable by a court of
1809      competent jurisdiction;
1810                (VII)        In receipt of a traffic citation which was dismissed
1811      or nolle prossed; or
1812                (VIII)        Not at fault as evidenced by a written statement
1813      from the insured establishing facts demonstrating lack of fault
1814      which are not rebutted by information in the insurer's file from
1815      which the insurer in good faith determines that the insured was
1816      substantially at fault.
1817                c.      In addition to the other provisions of this
1818      subparagraph, an insurer may not fail to renew a policy if the
1819      insured has had only one accident in which he or she was at
1820      fault within the current 3-year period. However, an insurer may
1821      nonrenew a policy for reasons other than accidents in accordance
1822      with s. 627.728. This subparagraph does not prohibit nonrenewal
1823      of a policy under which the insured has had three or more
1824      accidents, regardless of fault, during the most recent 3-year
1825      period.

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          HB 1181                                                                                               2025




1826                4.      Imposing or requesting an additional premium for, or
1827      refusing to renew, a policy for motor vehicle insurance solely
1828      because the insured committed a noncriminal traffic infraction
1829      as described in s. 318.14 unless the infraction is:
1830                a.      A second infraction committed within an 18-month
1831      period, or a third or subsequent infraction committed within a
1832      36-month period.
1833                b.      A violation of s. 316.183, when such violation is a
1834      result of exceeding the lawful speed limit by more than 15 miles
1835      per hour.
1836                5.      Upon the request of the insured, the insurer and
1837      licensed agent shall supply to the insured the complete proof of
1838      fault or other criteria which justifies the additional charge or
1839      cancellation.
1840                6.      No insurer shall impose or request an additional
1841      premium for motor vehicle insurance, cancel or refuse to issue a
1842      policy, or refuse to renew a policy because the insured or the
1843      applicant is a handicapped or physically disabled person, so
1844      long as such handicap or physical disability does not
1845      substantially impair such person's mechanically assisted driving
1846      ability.
1847                7.      No insurer may cancel or otherwise terminate any
1848      insurance contract or coverage, or require execution of a
1849      consent to rate endorsement, during the stated policy term for
1850      the purpose of offering to issue, or issuing, a similar or

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          HB 1181                                                                                               2025




1851      identical contract or coverage to the same insured with the same
1852      exposure at a higher premium rate or continuing an existing
1853      contract or coverage with the same exposure at an increased
1854      premium.
1855                8.      No insurer may issue a nonrenewal notice on any
1856      insurance contract or coverage, or require execution of a
1857      consent to rate endorsement, for the purpose of offering to
1858      issue, or issuing, a similar or identical contract or coverage
1859      to the same insured at a higher premium rate or continuing an
1860      existing contract or coverage at an increased premium without
1861      meeting any applicable notice requirements.
1862                9.      No insurer shall, with respect to premiums charged for
1863      motor vehicle insurance, unfairly discriminate solely on the
1864      basis of age, sex, marital status, or scholastic achievement.
1865                10.      Imposing or requesting an additional premium for motor
1866      vehicle comprehensive or uninsured motorist coverage solely
1867      because the insured was involved in a motor vehicle accident or
1868      was convicted of a moving traffic violation.
1869                11.      No insurer shall cancel or issue a nonrenewal notice
1870      on any insurance policy or contract without complying with any
1871      applicable cancellation or nonrenewal provision required under
1872      the Florida Insurance Code.
1873                12.      No insurer shall impose or request an additional
1874      premium, cancel a policy, or issue a nonrenewal notice on any
1875      insurance policy or contract because of any traffic infraction

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          HB 1181                                                                                               2025




1876      when adjudication has been withheld and no points have been
1877      assessed pursuant to s. 318.14(9) and (10). However, this
1878      subparagraph does not apply to traffic infractions involving
1879      accidents in which the insurer has incurred a loss due to the
1880      fault of the insured.
1881                Section 36.         Paragraph (a) of subsection (1) of section
1882      626.989, Florida Statutes, is amended to read:
1883                626.989      Investigation by department or Division of
1884      Investigative and Forensic Services; compliance; immunity;
1885      confidential information; reports to division; division
1886      investigator's power of arrest.—
1887                (1)      For the purposes of this section:
1888                (a)      A person commits a "fraudulent insurance act" if the
1889      person:
1890                1.      Knowingly and with intent to defraud presents, causes
1891      to be presented, or prepares with knowledge or belief that it
1892      will be presented, to or by an insurer, self-insurer, self-
1893      insurance fund, servicing corporation, purported insurer,
1894      broker, or any agent thereof, any written statement as part of,
1895      or in support of, an application for the issuance of, or the
1896      rating of, any insurance policy, or a claim for payment or other
1897      benefit pursuant to any insurance policy, which the person knows
1898      to contain materially false information concerning any fact
1899      material thereto or if the person conceals, for the purpose of
1900      misleading another, information concerning any fact material

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          HB 1181                                                                                               2025




1901      thereto.
1902                2.      Knowingly submits:
1903                a.      A false, misleading, or fraudulent application or other
1904      document when applying for licensure as a health care clinic,
1905      seeking an exemption from licensure as a health care clinic, or
1906      demonstrating compliance with part X of chapter 400 with an
1907      intent to use the license, exemption from licensure, or
1908      demonstration of compliance to provide services or seek
1909      reimbursement under a motor vehicle liability insurance policy's
1910      medical payments coverage the Florida Motor Vehicle No-Fault
1911      Law.
1912                b.      A claim for payment or other benefit under a motor
1913      vehicle liability insurance policy's medical payments coverage,
1914      pursuant to a personal injury protection insurance policy under
1915      the Florida Motor Vehicle No-Fault Law if the person knows that
1916      the payee knowingly submitted a false, misleading, or fraudulent
1917      application or other document when applying for licensure as a
1918      health care clinic, seeking an exemption from licensure as a
1919      health care clinic, or demonstrating compliance with part X of
1920      chapter 400.
1921                Section 37.         Subsection (1) of section 627.06501, Florida
1922      Statutes, is amended to read:
1923                627.06501       Insurance discounts for certain persons
1924      completing driver improvement course.—
1925                (1)      Any rate, rating schedule, or rating manual for the

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          HB 1181                                                                                                2025




1926      liability, medical payments personal injury protection, and
1927      collision coverages of a motor vehicle insurance policy filed
1928      with the office may provide for an appropriate reduction in
1929      premium charges as to such coverages if when the principal
1930      operator on the covered vehicle has successfully completed a
1931      driver improvement course approved and certified by the
1932      Department of Highway Safety and Motor Vehicles which is
1933      effective in reducing crash or violation rates, or both, as
1934      determined pursuant to s. 318.1451(5). Any discount, not to
1935      exceed 10 percent, used by an insurer is presumed to be
1936      appropriate unless credible data demonstrates otherwise.
1937                Section 38.            Subsection (15) is added to section 627.0651,
1938      Florida Statutes, to read:
1939                627.0651          Making and use of rates for motor vehicle
1940      insurance.—
1941                (15)        Rate filings for motor vehicle liability policies
1942      that implement the financial responsibility requirements of s.
1943      324.022 in effect July 1, 2026, except for commercial motor
1944      vehicle insurance policies exempt under paragraph (14)(a), must
1945      reflect such financial responsibility requirements and may be
1946      approved only through the file and use process under paragraph
1947      (1)(a).
1948                Section 39.            Subsection (1) of section 627.0652, Florida
1949      Statutes, is amended to read:
1950                627.0652          Insurance discounts for certain persons

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          HB 1181                                                                                               2025




1951      completing safety course.—
1952                (1)     Any rates, rating schedules, or rating manuals for the
1953      liability, medical payments personal injury protection, and
1954      collision coverages of a motor vehicle insurance policy filed
1955      with the office must shall provide for an appropriate reduction
1956      in premium charges as to such coverages if when the principal
1957      operator on the covered vehicle is an insured 55 years of age or
1958      older who has successfully completed a motor vehicle accident
1959      prevention course approved by the Department of Highway Safety
1960      and Motor Vehicles. Any discount used by an insurer is presumed
1961      to be appropriate unless credible data demonstrates otherwise.
1962                Section 40.          Subsections (1), (3), and (6) of section
1963      627.0653, Florida Statutes, are amended to read:
1964                627.0653        Insurance discounts for specified motor vehicle
1965      equipment.—
1966                (1)     Any rates, rating schedules, or rating manuals for the
1967      liability, medical payments personal injury protection, and
1968      collision coverages of a motor vehicle insurance policy filed
1969      with the office must shall provide a premium discount if the
1970      insured vehicle is equipped with factory-installed, four-wheel
1971      antilock brakes.
1972                (3)     Any rates, rating schedules, or rating manuals for
1973      personal injury protection coverage and medical payments
1974      coverage, if offered, of a motor vehicle insurance policy filed
1975      with the office must shall provide a premium discount if the

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          HB 1181                                                                                               2025




1976      insured vehicle is equipped with one or more air bags that which
1977      are factory installed.
1978                (6)     The Office of Insurance Regulation may approve a
1979      premium discount to any rates, rating schedules, or rating
1980      manuals for the liability, medical payments personal injury
1981      protection, and collision coverages of a motor vehicle insurance
1982      policy filed with the office if the insured vehicle is equipped
1983      with an automated driving system or electronic vehicle collision
1984      avoidance technology that is factory installed or a retrofitted
1985      system and that complies with National Highway Traffic Safety
1986      Administration standards.
1987                Section 41.          Section 627.4132, Florida Statutes, is amended
1988      to read:
1989                627.4132        Stacking of coverages prohibited.—If an insured
1990      or named insured is protected by any type of motor vehicle
1991      insurance policy providing primary bodily injury and property
1992      damage for liability, personal injury protection, or other
1993      coverage, the policy must shall provide that the insured or
1994      named insured is protected only to the extent of the coverage
1995      she or he has on the vehicle involved in the accident. However,
1996      if none of the insured's or named insured's vehicles are is
1997      involved in the accident, coverage is available only to the
1998      extent of coverage on any one of the vehicles with applicable
1999      coverage. Coverage on any other vehicles may shall not be added
2000      to or stacked upon that coverage. This section does not apply:

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          HB 1181                                                                                               2025




2001                (1)     Apply to uninsured motorist coverage that which is
2002      separately governed by s. 627.727.
2003                (2)     To Reduce the coverage available by reason of
2004      insurance policies insuring different named insureds.
2005                Section 42.          Subsection (1) of section 627.4137, Florida
2006      Statutes, is amended to read:
2007                627.4137        Disclosure of certain information required.—
2008                (1)     Each insurer which does or may provide liability
2009      insurance coverage to pay all or a portion of any claim which
2010      might be made shall provide, within 30 days after of the written
2011      request of the claimant or the claimant's attorney, a statement,
2012      under oath, of a corporate officer or the insurer's claims
2013      manager or superintendent setting forth the following
2014      information with regard to each known policy of insurance,
2015      including excess or umbrella insurance:
2016                (a)     The name of the insurer.
2017                (b)     The name of each insured.
2018                (c)     The limits of the liability coverage.
2019                (d)     A statement of any policy or coverage defense which
2020      such insurer reasonably believes is available to such insurer at
2021      the time of filing such statement.
2022                (e)     A copy of the policy.
2023
2024      In addition, the insured, or her or his insurance agent, upon
2025      written request of the claimant or the claimant's attorney,

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          HB 1181                                                                                               2025




2026      shall disclose the name and coverage of each known insurer to
2027      the claimant and shall forward such request for information as
2028      required by this subsection to all affected insurers. The
2029      insurer shall then supply the information required in this
2030      subsection to the claimant within 30 days after of receipt of
2031      such request. If an insurer fails to timely comply with this
2032      section, the claimant may file an action in a court of competent
2033      jurisdiction to enforce this section. If the court determines
2034      that the insurer violated this section, the claimant is entitled
2035      to an award of reasonable attorney fees and costs to be paid by
2036      the insurer.
2037                Section 43.          Section 627.7263, Florida Statutes, is amended
2038      to read:
2039                627.7263        Rental and leasing driver's insurance to be
2040      primary; exception.—
2041                (1)     The valid and collectible liability insurance or
2042      personal injury protection insurance providing coverage for the
2043      lessor of a motor vehicle for rent or lease is primary unless
2044      otherwise stated in at least 10-point type on the face of the
2045      rental or lease agreement. Such insurance is primary for the
2046      limits of liability and personal injury protection coverage as
2047      required under s. 324.021(7) by ss. 324.021(7) and 627.736.
2048                (2)     If the lessee's coverage is to be primary, the rental
2049      or lease agreement must contain the following language, in at
2050      least 10-point type:

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          HB 1181                                                                                               2025




2051
2052                "The valid and collectible liability insurance and
2053                personal injury protection insurance of an any
2054                authorized rental or leasing driver are is primary for
2055                the limits of liability and personal injury protection
2056                coverage required under s. 324.021(7) by ss.
2057                324.021(7) and 627.736, Florida Statutes."
2058                Section 44.         Subsections (1) and (7) of section 627.727,
2059      Florida Statutes, are amended to read:
2060                627.727     Motor vehicle insurance; uninsured and
2061      underinsured vehicle coverage; insolvent insurer protection.—
2062                (1)     A No motor vehicle liability insurance policy that
2063      which provides bodily injury liability coverage may not shall be
2064      delivered or issued for delivery in this state with respect to
2065      any specifically insured or identified motor vehicle registered
2066      or principally garaged in this state unless uninsured motor
2067      vehicle coverage is provided therein or supplemental thereto for
2068      the protection of persons insured thereunder who are legally
2069      entitled to recover damages from owners or operators of
2070      uninsured motor vehicles because of bodily injury, sickness, or
2071      disease, including death, resulting therefrom. However, the
2072      coverage required under this section is not applicable if when,
2073      or to the extent that, an insured named in the policy makes a
2074      written rejection of the coverage on behalf of all insureds
2075      under the policy. If When a motor vehicle is leased for a period

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          HB 1181                                                                                               2025




2076      of 1 year or longer and the lessor of such vehicle, by the terms
2077      of the lease contract, provides liability coverage on the leased
2078      vehicle, the lessee of such vehicle has shall have the sole
2079      privilege to reject uninsured motorist coverage or to select
2080      lower limits than the bodily injury liability limits, regardless
2081      of whether the lessor is qualified as a self-insurer pursuant to
2082      s. 324.171. Unless an insured, or a lessee having the privilege
2083      of rejecting uninsured motorist coverage, requests such coverage
2084      or requests higher uninsured motorist limits in writing, the
2085      coverage or such higher uninsured motorist limits need not be
2086      provided in or supplemental to any other policy that which
2087      renews, extends, changes, supersedes, or replaces an existing
2088      policy with the same bodily injury liability limits when an
2089      insured or lessee had rejected the coverage. When an insured or
2090      lessee has initially selected limits of uninsured motorist
2091      coverage lower than her or his bodily injury liability limits,
2092      higher limits of uninsured motorist coverage need not be
2093      provided in or supplemental to any other policy that which
2094      renews, extends, changes, supersedes, or replaces an existing
2095      policy with the same bodily injury liability limits unless an
2096      insured requests higher uninsured motorist coverage in writing.
2097      The rejection or selection of lower limits must shall be made on
2098      a form approved by the office. The form must shall fully advise
2099      the applicant of the nature of the coverage and must shall state
2100      that the coverage is equal to bodily injury liability limits

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          HB 1181                                                                                               2025




2101      unless lower limits are requested or the coverage is rejected.
2102      The heading of the form must shall be in 12-point bold type and
2103      must shall state: "You are electing not to purchase certain
2104      valuable coverage that which protects you and your family or you
2105      are purchasing uninsured motorist limits less than your bodily
2106      injury liability limits when you sign this form. Please read
2107      carefully." If this form is signed by a named insured, it will
2108      be conclusively presumed that there was an informed, knowing
2109      rejection of coverage or election of lower limits on behalf of
2110      all insureds. The insurer shall notify the named insured at
2111      least annually of her or his options as to the coverage required
2112      by this section. Such notice must shall be part of, and attached
2113      to, the notice of premium, must shall provide for a means to
2114      allow the insured to request such coverage, and must shall be
2115      given in a manner approved by the office. Receipt of this notice
2116      does not constitute an affirmative waiver of the insured's right
2117      to uninsured motorist coverage if where the insured has not
2118      signed a selection or rejection form. The coverage described
2119      under this section must shall be over and above, but may shall
2120      not duplicate, the benefits available to an insured under any
2121      workers' compensation law, personal injury protection benefits,
2122      disability benefits law, or similar law; under any automobile
2123      medical payments expense coverage; under any motor vehicle
2124      liability insurance coverage; or from the owner or operator of
2125      the uninsured motor vehicle or any other person or organization

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          HB 1181                                                                                               2025




2126      jointly or severally liable together with such owner or operator
2127      for the accident,; and such coverage must shall cover the
2128      difference, if any, between the sum of such benefits and the
2129      damages sustained, up to the maximum amount of such coverage
2130      provided under this section. The amount of coverage available
2131      under this section may shall not be reduced by a setoff against
2132      any coverage, including liability insurance. Such coverage does
2133      shall not inure directly or indirectly to the benefit of any
2134      workers' compensation or disability benefits carrier or any
2135      person or organization qualifying as a self-insurer under any
2136      workers' compensation or disability benefits law or similar law.
2137                (7)     The legal liability of an uninsured motorist coverage
2138      insurer includes does not include damages in tort for pain,
2139      suffering, disability, physical impairment, disfigurement,
2140      mental anguish, and inconvenience, and the loss of capacity for
2141      the enjoyment of life experienced in the past and to be
2142      experienced in the future unless the injury or disease is
2143      described in one or more of paragraphs (a)-(d) of s. 627.737(2).
2144                Section 45.          Section 627.7275, Florida Statutes, is amended
2145      to read:
2146                627.7275        Required coverages in motor vehicle insurance
2147      policies; availability to certain applicants liability.—
2148                (1)     A motor vehicle insurance policy providing personal
2149      injury protection as set forth in s. 627.736 may not be
2150      delivered or issued for delivery in this state for a with

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          HB 1181                                                                                               2025




2151      respect to any specifically insured or identified motor vehicle
2152      registered or principally garaged in this state must provide
2153      bodily injury liability coverage and unless the policy also
2154      provides coverage for property damage liability coverage as
2155      required under ss. 324.022 and 324.151 by s. 324.022.
2156                (2)(a)      Insurers writing motor vehicle insurance in this
2157      state shall make available, subject to the insurers' usual
2158      underwriting restrictions:
2159                1.      Coverage under policies as described in subsection (1)
2160      to an applicant for private passenger motor vehicle insurance
2161      coverage who is seeking the coverage in order to reinstate the
2162      applicant's driving privileges in this state if the driving
2163      privileges were revoked or suspended pursuant to s. 316.646 or
2164      s. 324.0221 due to the failure of the applicant to maintain
2165      required security.
2166                2.      Coverage under policies as described in subsection (1),
2167      which includes bodily injury also provides liability coverage
2168      and property damage liability coverage for bodily injury, death,
2169      and property damage arising out of the ownership, maintenance,
2170      or use of the motor vehicle in an amount not less than the
2171      minimum limits required under described in s. 324.021(7) or s.
2172      324.023 and which conforms to the requirements of s. 324.151, to
2173      an applicant for private passenger motor vehicle insurance
2174      coverage who is seeking the coverage in order to reinstate the
2175      applicant's driving privileges in this state after such

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          HB 1181                                                                                               2025




2176      privileges were revoked or suspended under s. 316.193 or s.
2177      322.26(2) for driving under the influence.
2178                (b)     The policies described in paragraph (a) must shall be
2179      issued for at least 6 months. After the insurer has issued the
2180      policy, the insurer shall notify the Department of Highway
2181      Safety and Motor Vehicles that the policy is in full force and
2182      effect. Once the provisions of the policy become effective, the
2183      bodily injury liability and property damage liability coverages
2184      for bodily injury, property damage, and personal injury
2185      protection may not be reduced below the minimum limits required
2186      under s. 324.021 or s. 324.023 during the policy period.
2187                (c)     This subsection controls to the extent of any conflict
2188      with any other section.
2189                (d)     An insurer issuing a policy subject to this section
2190      may cancel the policy if, during the policy term, the named
2191      insured, or any other operator who resides in the same household
2192      or customarily operates an automobile insured under the policy,
2193      has his or her driver license suspended or revoked.
2194                (e)     This subsection does not require an insurer to offer a
2195      policy of insurance to an applicant if such offer would be
2196      inconsistent with the insurer's underwriting guidelines and
2197      procedures.
2198                Section 46.          Effective upon this act becoming a law,
2199      section 627.7278, Florida Statutes, is created to read:
2200                627.7278        Applicability and construction; notice to

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          HB 1181                                                                                               2025




2201      policyholders.—
2202                (1)     As used in this section, the term "minimum security
2203      requirements" means security that enables a person to respond in
2204      damages for liability on account of crashes arising out of the
2205      ownership, maintenance, or use of a motor vehicle, in the
2206      amounts required by s. 324.022.
2207                (2)     Effective July 1, 2026:
2208                (a)     Motor vehicle insurance policies issued or renewed on
2209      or after July 1, 2026, may not include personal injury
2210      protection.
2211                (b)     All persons subject to s. 324.022, s. 324.032, s.
2212      627.7415, or s. 627.742 must maintain at least minimum security
2213      requirements.
2214                (c)     An existing motor vehicle insurance policy issued
2215      before July 1, 2026, which provides personal injury protection
2216      and property damage liability coverage that meets the
2217      requirements of s. 324.022 on June 30, 2026, but that does not
2218      meet minimum security requirements on or after July 1, 2026, is
2219      deemed to meet minimum security requirements until such policy
2220      is renewed, nonrenewed, or canceled on or after July 1, 2026.
2221      Sections 400.9905, 400.991, 456.057, 456.072, 626.9541(1)(i),
2222      627.7263, 627.727, 627.730-627.7405, 627.748, and 817.234,
2223      Florida Statutes 2024, remain in full force and effect for motor
2224      vehicle accidents covered under a policy issued under the
2225      Florida Motor Vehicle No-Fault Law before July 1, 2026, until

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          HB 1181                                                                                               2025




2226      the policy is renewed, nonrenewed, or canceled on or after July
2227      1, 2026.
2228                (3)     An insurer shall allow each insured who has a new or
2229      renewal policy providing personal injury protection which
2230      becomes effective before July 1, 2026, and whose policy does not
2231      meet minimum security requirements on or after July 1, 2026, to
2232      change coverages so as to eliminate personal injury protection.
2233      Any reduction in the premium must be refunded by the insurer.
2234      The insurer may not impose on the insured an additional fee or
2235      charge that applies solely to a change in coverage; however, the
2236      insurer may charge an additional required premium that is
2237      actuarially indicated.
2238                (4)     By April 1, 2026, each motor vehicle insurer shall
2239      provide notice of this section to each motor vehicle
2240      policyholder who is subject to this section. The notice is
2241      subject to approval by the office and must clearly inform the
2242      policyholder that:
2243                (a)     The Florida Motor Vehicle No-Fault Law is repealed
2244      effective July 1, 2026, and that on or after that date, the
2245      insured is no longer required to maintain personal injury
2246      protection insurance coverage, that personal injury protection
2247      coverage is no longer available for purchase in this state, and
2248      that new or renewal policies issued on or after that date will
2249      not contain that coverage.
2250                (b)     Effective July 1, 2026, a person subject to the

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          HB 1181                                                                                               2025




2251      financial responsibility requirements of s. 324.022 must
2252      maintain minimum security requirements that enable the person to
2253      respond to damages for liability on account of accidents arising
2254      out of the use of a motor vehicle in the following amounts:
2255                1.      Twenty-five thousand dollars for bodily injury to, or
2256      the death of, one person in any one crash and, subject to such
2257      limits for one person, in the amount of $50,000 for bodily
2258      injury to, or the death of, two or more persons in any one
2259      crash; and
2260                2.      Ten thousand dollars for damage to, or destruction of,
2261      the property of others in any one crash.
2262                (c)      Bodily injury liability coverage protects the insured,
2263      up to the coverage limits, against loss if the insured is
2264      legally responsible for the death of or bodily injury to others
2265      in a motor vehicle crash.
2266                (d)      The policyholder may obtain uninsured and underinsured
2267      motorist coverage that provides benefits, up to the limits of
2268      such coverage, to a policyholder or other insured entitled to
2269      recover damages for bodily injury, sickness, disease, or death
2270      resulting from a motor vehicle crash involving an uninsured or
2271      underinsured owner or operator of a motor vehicle.
2272                (e)      If the policyholder's new or renewal motor vehicle
2273      insurance policy is effective before July 1, 2026, and contains
2274      personal injury protection and property damage liability
2275      coverage as required by state law before July 1, 2026, but does

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          HB 1181                                                                                               2025




2276      not meet minimum security requirements on or after July 1, 2026,
2277      the policy is deemed to meet minimum security requirements until
2278      it is renewed, nonrenewed, or canceled on or after July 1, 2026.
2279                (f)      A policyholder whose new or renewal policy becomes
2280      effective before July 1, 2026, but does not meet minimum
2281      security requirements on or after July 1, 2026, may change
2282      coverages under the policy so as to eliminate personal injury
2283      protection and to obtain coverage providing minimum security
2284      requirements, including bodily injury liability coverage, which
2285      are effective on or after July 1, 2026.
2286                (g)      If the policyholder has any questions, he or she
2287      should contact the person named at the telephone number provided
2288      in the notice.
2289                Section 47.         Paragraph (a) of subsection (1) of section
2290      627.728, Florida Statutes, is amended to read:
2291                627.728      Cancellations; nonrenewals.—
2292                (1)      As used in this section, the term:
2293                (a)      "Policy" means the bodily injury and property damage
2294      liability, personal injury protection, medical payments,
2295      comprehensive, collision, and uninsured motorist coverage
2296      portions of a policy of motor vehicle insurance delivered or
2297      issued for delivery in this state:
2298                1.      Insuring a natural person as named insured or one or
2299      more related individuals who are residents resident of the same
2300      household; and

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          HB 1181                                                                                               2025




2301                2.      Insuring only a motor vehicle of the private passenger
2302      type or station wagon type which is not used as a public or
2303      livery conveyance for passengers or rented to others; or
2304      insuring any other four-wheel motor vehicle having a load
2305      capacity of 1,500 pounds or less which is not used in the
2306      occupation, profession, or business of the insured other than
2307      farming; other than any policy issued under an automobile
2308      insurance assigned risk plan or covering garage, automobile
2309      sales agency, repair shop, service station, or public parking
2310      place operation hazards.
2311
2312      The term "policy" does not include a binder as defined in s.
2313      627.420 unless the duration of the binder period exceeds 60
2314      days.
2315                Section 48.          Subsection (1), paragraph (a) of subsection
2316      (5), and subsections (6) and (7) of section 627.7295, Florida
2317      Statutes, are amended to read:
2318                627.7295        Motor vehicle insurance contracts.—
2319                (1)     As used in this section, the term:
2320                (a)     "Policy" means a motor vehicle insurance policy that
2321      provides bodily injury liability personal injury protection
2322      coverage and, property damage liability coverage, or both.
2323                (b)     "Binder" means a binder that provides motor vehicle
2324      bodily injury liability coverage personal injury protection and
2325      property damage liability coverage.

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          HB 1181                                                                                               2025




2326                (5)(a)      A licensed general lines agent may charge a per-
2327      policy fee of up to not to exceed $10 to cover the
2328      administrative costs of the agent associated with selling the
2329      motor vehicle insurance policy if the policy provides covers
2330      only bodily injury liability coverage personal injury protection
2331      coverage as provided by s. 627.736 and property damage liability
2332      coverage under as provided by s. 627.7275 and if no other
2333      insurance is sold or issued in conjunction with or collateral to
2334      the policy. The fee is not considered part of the premium.
2335                (6)     If a motor vehicle owner's driver license, license
2336      plate, and registration have previously been suspended pursuant
2337      to s. 316.646 or s. 627.733, an insurer may cancel a new policy
2338      only as provided in s. 627.7275.
2339                (7)     A policy of private passenger motor vehicle insurance
2340      or a binder for such a policy may be initially issued in this
2341      state only if, before the effective date of such binder or
2342      policy, the insurer or agent has collected from the insured an
2343      amount equal to at least 1 month's premium. An insurer, agent,
2344      or premium finance company may not, directly or indirectly, take
2345      any action will result resulting in the insured paying having
2346      paid from the insured's own funds an amount less than the 1
2347      month's premium required by this subsection. This subsection
2348      applies regardless of without regard to whether the premium is
2349      financed by a premium finance company or is paid pursuant to a
2350      periodic payment plan of an insurer or an insurance agent.

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          HB 1181                                                                                               2025




2351                (a)     This subsection does not apply:
2352                1.      If an insured or member of the insured's family is
2353      renewing or replacing a policy or a binder for such policy
2354      written by the same insurer or a member of the same insurer
2355      group. This subsection does not apply
2356                2.      To an insurer that issues private passenger motor
2357      vehicle coverage primarily to active duty or former military
2358      personnel or their dependents. This subsection does not apply
2359                3.      If all policy payments are paid pursuant to a payroll
2360      deduction plan, an automatic electronic funds transfer payment
2361      plan from the policyholder, or a recurring credit card or debit
2362      card agreement with the insurer.
2363                (b)     This subsection and subsection (4) do not apply if:
2364                1.      All policy payments to an insurer are paid pursuant to
2365      an automatic electronic funds transfer payment plan from an
2366      agent, a managing general agent, or a premium finance company
2367      and if the policy includes, at a minimum, bodily injury
2368      liability coverage and personal injury protection pursuant to
2369      ss. 627.730-627.7405; motor vehicle property damage liability
2370      coverage under pursuant to s. 627.7275; or and bodily injury
2371      liability in at least the amount of $10,000 because of bodily
2372      injury to, or death of, one person in any one accident and in
2373      the amount of $20,000 because of bodily injury to, or death of,
2374      two or more persons in any one accident. This subsection and
2375      subsection (4) do not apply if

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          HB 1181                                                                                               2025




2376                2.      An insured has had a policy in effect for at least 6
2377      months, the insured's agent is terminated by the insurer that
2378      issued the policy, and the insured obtains coverage on the
2379      policy's renewal date with a new company through the terminated
2380      agent.
2381                Section 49.          Section 627.7415, Florida Statutes, is amended
2382      to read:
2383                627.7415        Commercial motor vehicles; additional liability
2384      insurance coverage.—Beginning July 1, 2026, commercial motor
2385      vehicles, as defined in s. 207.002 or s. 320.01, operated upon
2386      the roads and highways of this state must shall be insured with
2387      the following minimum levels of combined bodily liability
2388      insurance and property damage liability insurance in addition to
2389      any other insurance requirements:
2390                (1)     Sixty Fifty thousand dollars per occurrence for a
2391      commercial motor vehicle with a gross vehicle weight of 26,000
2392      pounds or more, but less than 35,000 pounds.
2393                (2)      One hundred twenty thousand dollars per occurrence for
2394      a commercial motor vehicle with a gross vehicle weight of 35,000
2395      pounds or more, but less than 44,000 pounds.
2396                (3)      Three hundred thousand dollars per occurrence for a
2397      commercial motor vehicle with a gross vehicle weight of 44,000
2398      pounds or more.
2399                (4)      All commercial motor vehicles subject to regulations
2400      of the United States Department of Transportation, 49 C.F.R.

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          HB 1181                                                                                               2025




2401      part 387, subparts A and B, and as may be hereinafter amended,
2402      shall be insured in an amount equivalent to the minimum levels
2403      of financial responsibility as set forth in such regulations.
2404
2405      A violation of this section is a noncriminal traffic infraction,
2406      punishable as a nonmoving violation as provided in chapter 318.
2407                Section 50.         Subsections (1) and (3) of section 627.747,
2408      Florida Statutes, are amended to read:
2409                627.747      Named driver exclusion.—
2410                (1)     A private passenger motor vehicle policy may exclude
2411      the following coverages for all claims or suits resulting from
2412      the operation of a motor vehicle by an identified individual who
2413      is not a named insured, provided the identified individual is
2414      named on the declarations page or by endorsement and the named
2415      insured consents in writing to such exclusion:
2416                (a)     Notwithstanding the Florida Motor Vehicle No-Fault
2417      Law, the personal injury protection coverage specifically
2418      applicable to the identified individual's injuries, lost wages,
2419      and death benefits.
2420                (b)     Property damage liability coverage.
2421                (b)(c)      Bodily injury liability coverage, if required by
2422      law and purchased by the named insured.
2423                (c)(d)      Uninsured motorist coverage for any damages
2424      sustained by the identified excluded individual, if the named
2425      insured has purchased such coverage.

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          HB 1181                                                                                               2025




2426                (d)(e)      Any coverage the named insured is not required by
2427      law to purchase.
2428                (3)      A driver excluded pursuant to this section must:
2429                (a)     establish, maintain, and show proof of financial
2430      ability to respond for damages arising out of the ownership,
2431      maintenance, or use of a motor vehicle as required by chapter
2432      324; and
2433                (b)      Maintain security as required by s. 627.733.
2434                Section 51.         Paragraphs (b), (c), and (g) of subsection
2435      (7), paragraphs (a) and (b) of subsection (8), and paragraph (b)
2436      of subsection (16) of section 627.748, Florida Statutes, are
2437      amended to read:
2438                627.748      Transportation network companies.—
2439                (7)      TRANSPORTATION NETWORK COMPANY AND TNC DRIVER
2440      INSURANCE REQUIREMENTS.—
2441                (b)      The following automobile insurance requirements apply
2442      while a participating TNC driver is logged on to the digital
2443      network but is not engaged in a prearranged ride:
2444                1.      Automobile insurance that provides:
2445                a.      A primary automobile liability coverage of at least
2446      $50,000 for death and bodily injury per person, $100,000 for
2447      death and bodily injury per incident, and $25,000 for property
2448      damage; and
2449                b.      Personal injury protection benefits that meet the
2450      minimum coverage amounts required under ss. 627.730-627.7405;

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          HB 1181                                                                                               2025




2451      and
2452                c.      Uninsured and underinsured vehicle coverage as required
2453      by s. 627.727.
2454                2.      The coverage requirements of this paragraph may be
2455      satisfied by any of the following:
2456                a.      Automobile insurance maintained by the TNC driver or
2457      the TNC vehicle owner;
2458                b.      Automobile insurance maintained by the TNC; or
2459                c.      A combination of sub-subparagraphs a. and b.
2460                (c)      The following automobile insurance requirements apply
2461      while a TNC driver is engaged in a prearranged ride:
2462                1.      Automobile insurance that provides:
2463                a.      A primary automobile liability coverage of at least $1
2464      million for death, bodily injury, and property damage; and
2465                b.      Personal injury protection benefits that meet the
2466      minimum coverage amounts required of a limousine under ss.
2467      627.730-627.7405; and
2468                c.      Uninsured and underinsured vehicle coverage as required
2469      by s. 627.727.
2470                2.      The coverage requirements of this paragraph may be
2471      satisfied by any of the following:
2472                a.      Automobile insurance maintained by the TNC driver or
2473      the TNC vehicle owner;
2474                b.      Automobile insurance maintained by the TNC; or
2475                c.      A combination of sub-subparagraphs a. and b.

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          HB 1181                                                                                                2025




2476                (g)      Insurance satisfying the requirements under this
2477      subsection is deemed to satisfy the financial responsibility
2478      requirement for a motor vehicle under chapter 324 and the
2479      security required under s. 627.733 for any period when the TNC
2480      driver is logged onto the digital network or engaged in a
2481      prearranged ride.
2482                (8)      TRANSPORTATION NETWORK COMPANY AND INSURER;
2483      DISCLOSURE; EXCLUSIONS.—
2484                (a)      Before a TNC driver is allowed to accept a request for
2485      a prearranged ride on the digital network, the TNC must disclose
2486      in writing to the TNC driver:
2487                1.      The insurance coverage, including the types of coverage
2488      and the limits for each coverage, which the TNC provides while
2489      the TNC driver uses a TNC vehicle in connection with the TNC's
2490      digital network.
2491                2.      That the TNC driver's own automobile insurance policy
2492      might not provide any coverage while the TNC driver is logged on
2493      to the digital network or is engaged in a prearranged ride,
2494      depending on the terms of the TNC driver's own automobile
2495      insurance policy.
2496                3.      That the provision of rides for compensation which are
2497      not prearranged rides subjects the driver to the coverage
2498      requirements imposed under s. 324.032(1) and (2) and that
2499      failure to meet such coverage requirements subjects the TNC
2500      driver to penalties provided in s. 324.221, up to and including

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          HB 1181                                                                                                2025




2501      a misdemeanor of the second degree.
2502                (b)1.       An insurer that provides an automobile liability
2503      insurance policy under this part may exclude any and all
2504      coverage afforded under the policy issued to an owner or
2505      operator of a TNC vehicle while driving that vehicle for any
2506      loss or injury that occurs while a TNC driver is logged on to a
2507      digital network or while a TNC driver provides a prearranged
2508      ride. Exclusions imposed under this subsection are limited to
2509      coverage while a TNC driver is logged on to a digital network or
2510      while a TNC driver provides a prearranged ride. This right to
2511      exclude all coverage may apply to any coverage included in an
2512      automobile insurance policy, including, but not limited to:
2513                a.      Liability coverage for bodily injury and property
2514      damage;
2515                b.      Uninsured and underinsured motorist coverage;
2516                c.      Medical payments coverage;
2517                d.      Comprehensive physical damage coverage; and
2518                e.      Collision physical damage coverage; and
2519                f.      Personal injury protection.
2520                2.      The exclusions described in subparagraph 1. apply
2521      notwithstanding any requirement under chapter 324. These
2522      exclusions do not affect or diminish coverage otherwise
2523      available for permissive drivers or resident relatives under the
2524      personal automobile insurance policy of the TNC driver or owner
2525      of the TNC vehicle who are not occupying the TNC vehicle at the

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          HB 1181                                                                                                2025




2526      time of loss. This section does not require that a personal
2527      automobile insurance policy provide coverage while the TNC
2528      driver is logged on to a digital network, while the TNC driver
2529      is engaged in a prearranged ride, or while the TNC driver
2530      otherwise uses a vehicle to transport riders for compensation.
2531                3.      This section must not be construed to require an
2532      insurer to use any particular policy language or reference to
2533      this section in order to exclude any and all coverage for any
2534      loss or injury that occurs while a TNC driver is logged on to a
2535      digital network or while a TNC driver provides a prearranged
2536      ride.
2537                4.      This section does not preclude an insurer from
2538      providing primary or excess coverage for the TNC driver's
2539      vehicle by contract or endorsement.
2540                (16)        LUXURY GROUND TRANSPORTATION NETWORK COMPANIES.—
2541                (b)      An entity may elect, upon written notification to the
2542      department, to be regulated as a luxury ground TNC. A luxury
2543      ground TNC must:
2544                1.      Comply with all of the requirements of this section
2545      applicable to a TNC, including subsection (17), which do not
2546      conflict with subparagraph 2. or which do not prohibit the
2547      company from connecting riders to drivers who operate for-hire
2548      vehicles as defined in s. 320.01(15), including limousines and
2549      luxury sedans and excluding taxicabs.
2550                2.      Maintain insurance coverage as required by subsection

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          HB 1181                                                                                                2025




2551      (7). However, if a prospective luxury ground TNC satisfies
2552      minimum financial responsibility through compliance with s.
2553      324.032(3) s. 324.032(2) by using self-insurance when it gives
2554      the department written notification of its election to be
2555      regulated as a luxury ground TNC, the luxury ground TNC may use
2556      self-insurance to meet the insurance requirements of subsection
2557      (7), so long as such self-insurance complies with s. 324.032(3)
2558      s. 324.032(2) and provides the limits of liability required by
2559      subsection (7).
2560                Section 52.           Subsection (2) and paragraphs (a) and (c) of
2561      subsection (3) of section 627.7483, Florida Statutes, are
2562      amended to read:
2563                627.7483         Peer-to-peer car sharing; insurance
2564      requirements.—
2565                (2)      INSURANCE COVERAGE REQUIREMENTS.—
2566                (a)1.       A peer-to-peer car-sharing program shall ensure
2567      that, during each car-sharing period, the shared vehicle owner
2568      and the shared vehicle driver are insured under a motor vehicle
2569      insurance policy that provides all of the following:
2570                a.      Property damage liability coverage and bodily injury
2571      liability coverage that meet or exceed meets the minimum
2572      coverage amounts required under s. 324.022.
2573                b.      Bodily injury liability coverage limits as described in
2574      s. 324.021(7)(a) and (b).
2575                c.      Personal injury protection benefits that meet the

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          HB 1181                                                                                                2025




2576      minimum coverage amounts required under s. 627.736.
2577                d.      Uninsured and underinsured vehicle coverage as required
2578      under s. 627.727.
2579                2.      The peer-to-peer car-sharing program shall also ensure
2580      that the motor vehicle insurance policy under subparagraph 1.:
2581                a.      Recognizes that the shared vehicle insured under the
2582      policy is made available and used through a peer-to-peer car-
2583      sharing program; or
2584                b.      Does not exclude the use of a shared vehicle by a
2585      shared vehicle driver.
2586                (b)1.       The insurance described under paragraph (a) may be
2587      satisfied by a motor vehicle insurance policy maintained by:
2588                a.      A shared vehicle owner;
2589                b.      A shared vehicle driver;
2590                c.      A peer-to-peer car-sharing program; or
2591                d.      A combination of a shared vehicle owner, a shared
2592      vehicle driver, and a peer-to-peer car-sharing program.
2593                2.      The insurance policy maintained in subparagraph 1.
2594      which satisfies the insurance requirements under paragraph (a)
2595      is primary during each car-sharing period. If a claim occurs
2596      during the car-sharing period in another state with minimum
2597      financial responsibility limits higher than those limits
2598      required under chapter 324, the coverage maintained under
2599      paragraph (a) satisfies the difference in minimum coverage
2600      amounts up to the applicable policy limits.

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          HB 1181                                                                                                2025




2601                3.a.        If the insurance maintained by a shared vehicle owner
2602      or shared vehicle driver in accordance with subparagraph 1. has
2603      lapsed or does not provide the coverage required under paragraph
2604      (a), the insurance maintained by the peer-to-peer car-sharing
2605      program must provide the coverage required under paragraph (a),
2606      beginning with the first dollar of a claim, and must defend such
2607      claim, except under circumstances as set forth in subparagraph
2608      (3)(a)2.
2609                b.      Coverage under a motor vehicle insurance policy
2610      maintained by the peer-to-peer car-sharing program must not be
2611      dependent on another motor vehicle insurer first denying a
2612      claim, and another motor vehicle insurance policy is not
2613      required to first deny a claim.
2614                c.      Notwithstanding any other law, statute, rule, or
2615      regulation to the contrary, a peer-to-peer car-sharing program
2616      has an insurable interest in a shared vehicle during the car-
2617      sharing period. This sub-subparagraph does not create liability
2618      for a peer-to-peer car-sharing program for maintaining the
2619      coverage required under paragraph (a) and under this paragraph,
2620      if applicable.
2621                d.      A peer-to-peer car-sharing program may own and maintain
2622      as the named insured one or more policies of motor vehicle
2623      insurance which provide coverage for:
2624                (I)      Liabilities assumed by the peer-to-peer car-sharing
2625      program under a peer–to–peer car-sharing program agreement;

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          HB 1181                                                                                                2025




2626                (II)        Liability of the shared vehicle owner;
2627                (III)        Liability of the shared vehicle driver;
2628                (IV)        Damage or loss to the shared motor vehicle; or
2629                (V)      Damage, loss, or injury to persons or property to
2630      satisfy the personal injury protection and uninsured and
2631      underinsured motorist coverage requirements of this section.
2632                e.      Insurance required under paragraph (a), when maintained
2633      by a peer-to-peer car-sharing program, may be provided by an
2634      insurer authorized to do business in this state which is a
2635      member of the Florida Insurance Guaranty Association or an
2636      eligible surplus lines insurer that has a superior, excellent,
2637      exceptional, or equivalent financial strength rating by a rating
2638      agency acceptable to the office. A peer-to-peer car-sharing
2639      program is not transacting in insurance when it maintains the
2640      insurance required under this section.
2641                (3)      LIABILITIES AND INSURANCE EXCLUSIONS.—
2642                (a)     Liability.—
2643                1.      A peer-to-peer car-sharing program shall assume
2644      liability, except as provided in subparagraph 2., of a shared
2645      vehicle owner for bodily injury or property damage to third
2646      parties or uninsured and underinsured motorist or personal
2647      injury protection losses during the car-sharing period in an
2648      amount stated in the peer-to-peer car-sharing program agreement,
2649      which amount may not be less than those set forth in ss. 324.022
2650      and 627.727 ss. 324.021(7)(a) and (b), 324.022, 627.727, and

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          HB 1181                                                                                                2025




2651      627.736, respectively.
2652                2.      The assumption of liability under subparagraph 1. does
2653      not apply if a shared vehicle owner:
2654                a.      Makes an intentional or fraudulent material
2655      misrepresentation or omission to the peer-to-peer car-sharing
2656      program before the car-sharing period in which the loss occurs;
2657      or
2658                b.      Acts in concert with a shared vehicle driver who fails
2659      to return the shared vehicle pursuant to the terms of the peer-
2660      to-peer car-sharing program agreement.
2661                3.      The insurer, insurers, or peer-to-peer car-sharing
2662      program providing coverage under paragraph (2)(a) shall assume
2663      primary liability for a claim when:
2664                a.      A dispute exists over who was in control of the shared
2665      motor vehicle at the time of the loss, and the peer-to-peer car-
2666      sharing program does not have available, did not retain, or
2667      fails to provide the information required under subsection (5);
2668      or
2669                b.      A dispute exists over whether the shared vehicle was
2670      returned to the alternatively agreed-upon location as required
2671      under subparagraph (1)(d)2.
2672                (c)     Exclusions in motor vehicle insurance policies.—An
2673      authorized insurer that writes motor vehicle liability insurance
2674      in this state may exclude any coverage and the duty to defend or
2675      indemnify for any claim under a shared vehicle owner's motor

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          HB 1181                                                                                                2025




2676      vehicle insurance policy, including, but not limited to:
2677                1.      Liability coverage for bodily injury and property
2678      damage;
2679                2.      Personal injury protection coverage;
2680                3.      Uninsured and underinsured motorist coverage;
2681                3.4.        Medical payments coverage;
2682                4.5.        Comprehensive physical damage coverage; and
2683                5.6.        Collision physical damage coverage.
2684
2685      This paragraph does not invalidate or limit any exclusion
2686      contained in a motor vehicle insurance policy, including any
2687      insurance policy in use or approved for use which excludes
2688      coverage for motor vehicles made available for rent, sharing, or
2689      hire or for any business use. This paragraph does not
2690      invalidate, limit, or restrict an insurer's ability under
2691      existing law to underwrite, cancel, or nonrenew any insurance
2692      policy.
2693                Section 53.           Paragraph (a) of subsection (2) of section
2694      627.749, Florida Statutes, is amended to read:
2695                627.749        Autonomous vehicles; insurance requirements.—
2696                (2)      INSURANCE REQUIREMENTS.—
2697                (a)      A fully autonomous vehicle with the automated driving
2698      system engaged while logged on to an on-demand autonomous
2699      vehicle network or engaged in a prearranged ride must be covered
2700      by a policy of automobile insurance which provides:

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          HB 1181                                                                                                2025




2701                1.      Primary liability coverage of at least $1 million for
2702      death, bodily injury, and property damage.
2703                2.      Personal injury protection benefits that meet the
2704      minimum coverage amounts required under ss. 627.730-627.7405.
2705                3.      Uninsured and underinsured vehicle coverage as required
2706      by s. 627.727.
2707                Section 54.          Section 627.8405, Florida Statutes, is amended
2708      to read:
2709                627.8405        Prohibited acts; financing companies.—A No
2710      premium finance company shall, in a premium finance agreement or
2711      other agreement, may not finance the cost of or otherwise
2712      provide for the collection or remittance of dues, assessments,
2713      fees, or other periodic payments of money for the cost of:
2714                (1)      A membership in an automobile club. The term
2715      "automobile club" means a legal entity that which, in
2716      consideration of dues, assessments, or periodic payments of
2717      money, promises its members or subscribers to assist them in
2718      matters relating to the ownership, operation, use, or
2719      maintenance of a motor vehicle; however, the term this
2720      definition of "automobile club" does not include persons,
2721      associations, or corporations which are organized and operated
2722      solely for the purpose of conducting, sponsoring, or sanctioning
2723      motor vehicle races, exhibitions, or contests upon racetracks,
2724      or upon racecourses established and marked as such for the
2725      duration of such particular events. As used in this subsection,

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          HB 1181                                                                                                2025




2726      the term words "motor vehicle" has used herein have the same
2727      meaning as defined in chapter 320.
2728                (2)     An accidental death and dismemberment policy sold in
2729      combination with a policy providing only bodily injury liability
2730      coverage personal injury protection and property damage
2731      liability coverage only policy.
2732                (3)     Any product not regulated under the provisions of this
2733      insurance code.
2734
2735      This section also applies to premium financing by any insurance
2736      agent or insurance company under part XVI. The commission shall
2737      adopt rules to assure disclosure, at the time of sale, of
2738      coverages financed with personal injury protection and shall
2739      prescribe the form of such disclosure.
2740                Section 55.         Subsection (1) of section 627.915, Florida
2741      Statutes, is amended to read:
2742                627.915     Insurer experience reporting.—
2743                (1)     Each insurer transacting private passenger motor
2744      vehicle automobile insurance in this state shall report certain
2745      information annually to the office. The information will be due
2746      on or before July 1 of each year. The information must shall be
2747      divided into the following categories: bodily injury liability;
2748      property damage liability; uninsured motorist; personal injury
2749      protection benefits; medical payments; and comprehensive and
2750      collision. The information given must shall be on direct

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          HB 1181                                                                                                2025




2751      insurance writings in the state alone and shall represent total
2752      limits data. The information set forth in paragraphs (a)-(f) is
2753      applicable to voluntary private passenger and Joint Underwriting
2754      Association private passenger writings and must shall be
2755      reported for each of the latest 3 calendar-accident years, with
2756      an evaluation date of March 31 of the current year. The
2757      information set forth in paragraphs (g)-(j) is applicable to
2758      voluntary private passenger writings and must shall be reported
2759      on a calendar-accident year basis ultimately seven times at
2760      seven different stages of development.
2761                (a)     Premiums earned for the latest 3 calendar-accident
2762      years.
2763                (b)     Loss development factors and the historic development
2764      of those factors.
2765                (c)     Policyholder dividends incurred.
2766                (d)     Expenses for other acquisition and general expense.
2767                (e)     Expenses for agents' commissions and taxes, licenses,
2768      and fees.
2769                (f)     Profit and contingency factors as utilized in the
2770      insurer's automobile rate filings for the applicable years.
2771                (g)     Losses paid.
2772                (h)     Losses unpaid.
2773                (i)     Loss adjustment expenses paid.
2774                (j)     Loss adjustment expenses unpaid.
2775                Section 56.         Subsections (2) and (3) of section 628.909,

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          HB 1181                                                                                                2025




2776      Florida Statutes, are amended to read:
2777                628.909     Applicability of other laws.—
2778                (2)     The following provisions of the Florida Insurance Code
2779      apply to captive insurance companies that who are not industrial
2780      insured captive insurance companies to the extent that such
2781      provisions are not inconsistent with this part:
2782                (a)     Chapter 624, except for ss. 624.407, 624.408,
2783      624.4085, 624.40851, 624.4095, 624.411, 624.425, and 624.426.
2784                (b)     Chapter 625, part II.
2785                (c)     Chapter 626, part IX.
2786                (d)     Sections 627.730-627.7405, when no-fault coverage is
2787      provided.
2788                (e)     Chapter 628.
2789                (3)     The following provisions of the Florida Insurance Code
2790      shall apply to industrial insured captive insurance companies to
2791      the extent that such provisions are not inconsistent with this
2792      part:
2793                (a)     Chapter 624, except for ss. 624.407, 624.408,
2794      624.4085, 624.40851, 624.4095, 624.411, 624.425, 624.426, and
2795      624.609(1).
2796                (b)     Chapter 625, part II, if the industrial insured
2797      captive insurance company is incorporated in this state.
2798                (c)     Chapter 626, part IX.
2799                (d)     Sections 627.730-627.7405 when no-fault coverage is
2800      provided.

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          HB 1181                                                                                                2025




2801                (e)     Chapter 628, except for ss. 628.341, 628.351, and
2802      628.6018.
2803                Section 57.         Subsections (2), (6), and (7) of section
2804      705.184, Florida Statutes, are amended to read:
2805                705.184     Derelict or abandoned motor vehicles on the
2806      premises of public-use airports.—
2807                (2)     The airport director or the director's designee shall
2808      contact the Department of Highway Safety and Motor Vehicles to
2809      notify that department that the airport has possession of the
2810      abandoned or derelict motor vehicle and to determine the name
2811      and address of the owner of the motor vehicle, the insurance
2812      company insuring the motor vehicle, notwithstanding the
2813      provisions of s. 627.736, and any person who has filed a lien on
2814      the motor vehicle. Within 7 business days after receipt of the
2815      information, the director or the director's designee shall send
2816      notice by certified mail, return receipt requested, to the owner
2817      of the motor vehicle, the insurance company insuring the motor
2818      vehicle, notwithstanding the provisions of s. 627.736, and all
2819      persons of record claiming a lien against the motor vehicle. The
2820      notice must shall state the fact of possession of the motor
2821      vehicle, that charges for reasonable towing, storage, and
2822      parking fees, if any, have accrued and the amount thereof, that
2823      a lien as provided in subsection (6) will be claimed, that the
2824      lien is subject to enforcement pursuant to law, that the owner
2825      or lienholder, if any, has the right to a hearing as set forth

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          HB 1181                                                                                                2025




2826      in subsection (4), and that any motor vehicle which, at the end
2827      of 30 calendar days after receipt of the notice, has not been
2828      removed from the airport upon payment in full of all accrued
2829      charges for reasonable towing, storage, and parking fees, if
2830      any, may be disposed of as provided in s. 705.182(2)(a), (b),
2831      (d), or (e), including, but not limited to, the motor vehicle
2832      being sold free of all prior liens after 35 calendar days after
2833      the time the motor vehicle is stored if any prior liens on the
2834      motor vehicle are more than 5 years of age or after 50 calendar
2835      days after the time the motor vehicle is stored if any prior
2836      liens on the motor vehicle are 5 years of age or less.
2837                (6)     The airport pursuant to this section or, if used, a
2838      licensed independent wrecker company pursuant to s. 713.78 shall
2839      have a lien on an abandoned or derelict motor vehicle for all
2840      reasonable towing, storage, and accrued parking fees, if any,
2841      except that a no storage fee may not shall be charged if the
2842      motor vehicle is stored less than 6 hours. As a prerequisite to
2843      perfecting a lien under this section, the airport director or
2844      the director's designee must serve a notice in accordance with
2845      subsection (2) on the owner of the motor vehicle, the insurance
2846      company insuring the motor vehicle, notwithstanding the
2847      provisions of s. 627.736, and all persons of record claiming a
2848      lien against the motor vehicle. If attempts to notify the owner,
2849      the insurance company insuring the motor vehicle,
2850      notwithstanding the provisions of s. 627.736, or lienholders are

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          HB 1181                                                                                                2025




2851      not successful, the requirement of notice by mail is shall be
2852      considered met. Serving of the notice does not dispense with
2853      recording the claim of lien.
2854                (7)(a)      For the purpose of perfecting its lien under this
2855      section, the airport shall record a claim of lien which states
2856      shall state:
2857                1.      The name and address of the airport.
2858                2.      The name of the owner of the motor vehicle, the
2859      insurance company insuring the motor vehicle, notwithstanding
2860      the provisions of s. 627.736, and all persons of record claiming
2861      a lien against the motor vehicle.
2862                3.      The costs incurred from reasonable towing, storage, and
2863      parking fees, if any.
2864                4.      A description of the motor vehicle sufficient for
2865      identification.
2866                (b)      The claim of lien must shall be signed and sworn to or
2867      affirmed by the airport director or the director's designee.
2868                (c)      The claim of lien is shall be sufficient if it is in
2869      substantially the following form:
2870
2871                                                CLAIM OF LIEN
2872      State of ........
2873      County of ........
2874      Before me, the undersigned notary public, personally appeared
2875      ........, who was duly sworn and says that he/she is the

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          HB 1181                                                                                                2025




2876      ........ of ............, whose address is........; and that the
2877      following described motor vehicle:
2878      ...(Description of motor vehicle)...
2879      owned by ........, whose address is ........, has accrued
2880      $........ in fees for a reasonable tow, for storage, and for
2881      parking, if applicable; that the lienor served its notice to the
2882      owner, the insurance company insuring the motor vehicle
2883      notwithstanding the provisions of s. 627.736, Florida Statutes,
2884      and all persons of record claiming a lien against the motor
2885      vehicle on ...., ...(year)..., by.........
2886      ...(Signature)...
2887      Sworn to (or affirmed) and subscribed before me this .... day of
2888      ...., ...(year)..., by ...(name of person making statement)....
2889      ...(Signature of Notary Public)... ...(Print, Type, or Stamp
2890      Commissioned name of Notary Public)...
2891      Personally Known....OR Produced....as identification.
2892
2893      However, the negligent inclusion or omission of any information
2894      in this claim of lien which does not prejudice the owner does
2895      not constitute a default that operates to defeat an otherwise
2896      valid lien.
2897                (d)     The claim of lien must shall be served on the owner of
2898      the motor vehicle, the insurance company insuring the motor
2899      vehicle, notwithstanding the provisions of s. 627.736, and all
2900      persons of record claiming a lien against the motor vehicle. If

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          HB 1181                                                                                                2025




2901      attempts to notify the owner, the insurance company insuring the
2902      motor vehicle notwithstanding the provisions of s. 627.736, or
2903      lienholders are not successful, the requirement of notice by
2904      mail is shall be considered met. The claim of lien must shall be
2905      so served before recordation.
2906                (e)     The claim of lien must shall be recorded with the
2907      clerk of court in the county where the airport is located. The
2908      recording of the claim of lien is shall be constructive notice
2909      to all persons of the contents and effect of such claim. The
2910      lien attaches shall attach at the time of recordation and takes
2911      shall take priority as of that time.
2912                Section 58.         Paragraphs (a), (b), and (c) of subsection (4)
2913      of section 713.78, Florida Statutes, are amended to read:
2914                713.78      Liens for recovering, towing, or storing vehicles
2915      and vessels.—
2916                (4)(a)      A towing-storage operator who comes into possession
2917      of a vehicle or vessel pursuant to paragraph (2)(b), and who
2918      claims a lien for recovery, towing, or storage services, must
2919      give notice, by certified mail, pursuant to subsection (16), to
2920      the registered owner, the insurance company insuring the vehicle
2921      or vessel notwithstanding s. 627.736, and all persons claiming a
2922      lien thereon, as disclosed by the records in the Department of
2923      Highway Safety and Motor Vehicles or as disclosed by the records
2924      of any corresponding agency in any other state in which the
2925      vehicle or vessel is identified through a records check of the

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          HB 1181                                                                                                2025




2926      National Motor Vehicle Title Information System or an equivalent
2927      commercially available system as being titled or registered.
2928                (b)     When a law enforcement agency, county, or municipality
2929      authorizes the removal of a vehicle or vessel, or a towing
2930      service, garage, repair shop, or automotive service, storage, or
2931      parking place notifies a law enforcement agency of possession of
2932      a vehicle or vessel pursuant to s. 715.07(2)(a)2., if an
2933      approved third-party service cannot obtain the vehicle's or
2934      vessel's owner, lienholder, and insurer information or last
2935      state of record pursuant to subsection (16), then the person in
2936      charge of the towing service, garage, repair shop, or automotive
2937      service, storage, or parking place must request such information
2938      from the law enforcement agency of the jurisdiction where the
2939      vehicle or vessel is stored. The law enforcement agency to which
2940      the request was made must contact the Department of Highway
2941      Safety and Motor Vehicles, or the appropriate agency of the
2942      state of registration, if known, within 24 hours through the
2943      medium of electronic communications, giving the full description
2944      of the vehicle or vessel. Upon receipt of the full description
2945      of the vehicle or vessel, the department must search its files
2946      to determine the owner's name, the insurance company insuring
2947      the vehicle or vessel, and whether any person has filed a lien
2948      upon the vehicle or vessel as provided in s. 319.27(2) and (3)
2949      and notify the applicable law enforcement agency within 72
2950      hours. The person in charge of the towing service, garage,

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          HB 1181                                                                                                2025




2951      repair shop, or automotive service, storage, or parking place
2952      must request such information from the applicable law
2953      enforcement agency within 5 days after the date of storage and
2954      must provide the information to the approved third-party service
2955      in order to transmit notices as required under subsection (16).
2956      The department may release the insurance company information to
2957      the requestor notwithstanding s. 627.736.
2958                (c)      The notice of lien must be sent by an approved third-
2959      party service by certified mail to the registered owner, the
2960      insurance company insuring the vehicle notwithstanding s.
2961      627.736, and all other persons claiming a lien thereon within 5
2962      business days, excluding a Saturday, Sunday, or federal legal
2963      holiday, after the date of storage of the vehicle or vessel. The
2964      notice must state all of the following:
2965                1.      If the claim of lien is for a vehicle, the last 8
2966      digits of the vehicle identification number of the vehicle
2967      subject to the lien, or, if the claim of lien is for a vessel,
2968      the hull identification number of the vessel subject to the
2969      lien, clearly printed in the delivery address box and on the
2970      outside of the envelope sent to the registered owner and all
2971      other persons claiming an interest in or lien on the vehicle or
2972      vessel.
2973                2.      The name, physical address, and telephone number of the
2974      lienor, and the entity name, as registered with the Division of
2975      Corporations, of the business where the towing and storage

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          HB 1181                                                                                                2025




2976      occurred, which must also appear on the outside of the envelope
2977      sent to the registered owner and all other persons claiming an
2978      interest in or lien on the vehicle or vessel.
2979                3.      The fact of possession of the vehicle or vessel.
2980                4.      The name of the person or entity that authorized the
2981      lienor to take possession of the vehicle or vessel.
2982                5.      That a lien as provided in paragraph (2)(b) is claimed.
2983                6.      That charges have accrued and include an itemized
2984      statement of the amount thereof.
2985                7.      That the lien is subject to enforcement under law and
2986      that the owner or lienholder, if any, has the right to initiate
2987      judicial proceedings as set forth in subsection (5).
2988                8.      That any vehicle or vessel that remains unclaimed, or
2989      for which the charges for recovery, towing, or storage services
2990      remain unpaid, may be sold free of all prior liens 35 days after
2991      the vehicle or vessel is stored by the lienor if the vehicle or
2992      vessel is an older model or 57 days after the vehicle or vessel
2993      is stored by the lienor if the vehicle or vessel is a newer
2994      model.
2995                9.      The address at which the vehicle or vessel is
2996      physically located.
2997                Section 59.         Paragraph (a) of subsection (1), paragraph (c)
2998      of subsection (7), paragraphs (a), (b), and (c) of subsection
2999      (8), and subsections (9) and (10) of section 817.234, Florida
3000      Statutes, are amended to read:

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          HB 1181                                                                                                2025




3001                817.234       False and fraudulent insurance claims.—
3002                (1)(a)       A person commits insurance fraud punishable as
3003      provided in subsection (11) if that person, with the intent to
3004      injure, defraud, or deceive any insurer:
3005                1.      Presents or causes to be presented any written or oral
3006      statement as part of, or in support of, a claim for payment or
3007      other benefit pursuant to an insurance policy or a health
3008      maintenance organization subscriber or provider contract,
3009      knowing that such statement contains any false, incomplete, or
3010      misleading information concerning any fact or thing material to
3011      such claim;
3012                2.      Prepares or makes any written or oral statement that is
3013      intended to be presented to an any insurer in connection with,
3014      or in support of, any claim for payment or other benefit
3015      pursuant to an insurance policy or a health maintenance
3016      organization subscriber or provider contract, knowing that such
3017      statement contains any false, incomplete, or misleading
3018      information concerning any fact or thing material to such claim;
3019                3.a.        Knowingly presents, causes to be presented, or
3020      prepares or makes with knowledge or belief that it will be
3021      presented to an any insurer, a purported insurer, a servicing
3022      corporation, an insurance broker, or an insurance agent, or any
3023      employee or agent thereof, any false, incomplete, or misleading
3024      information or a written or oral statement as part of, or in
3025      support of, an application for the issuance of, or the rating

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          HB 1181                                                                                                2025




3026      of, any insurance policy, or a health maintenance organization
3027      subscriber or provider contract; or
3028                b.      Knowingly conceals information concerning any fact
3029      material to such application; or
3030                4.      Knowingly presents, causes to be presented, or prepares
3031      or makes with knowledge or belief that it will be presented to
3032      any insurer a claim for payment or other benefit under medical
3033      payments coverage in a motor vehicle a personal injury
3034      protection insurance policy if the person knows that the payee
3035      knowingly submitted a false, misleading, or fraudulent
3036      application or other document when applying for licensure as a
3037      health care clinic, seeking an exemption from licensure as a
3038      health care clinic, or demonstrating compliance with part X of
3039      chapter 400.
3040                (7)
3041                (c)      An insurer, or any person acting at the direction of
3042      or on behalf of an insurer, may not change an opinion in a
3043      mental or physical report prepared under s. 627.736(7) or direct
3044      the physician preparing the report to change such opinion;
3045      however, this provision does not preclude the insurer from
3046      calling to the attention of the physician errors of fact in the
3047      report based upon information in the claim file. Any person who
3048      violates this paragraph commits a felony of the third degree,
3049      punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
3050                (8)(a)      It is unlawful for any person intending to defraud

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          HB 1181                                                                                                2025




3051      any other person to solicit or cause to be solicited any
3052      business from a person involved in a motor vehicle accident for
3053      the purpose of making, adjusting, or settling motor vehicle tort
3054      claims or claims for benefits under medical payments coverage in
3055      a motor vehicle insurance policy personal injury protection
3056      benefits required by s. 627.736. Any person who violates the
3057      provisions of this paragraph commits a felony of the second
3058      degree, punishable as provided in s. 775.082, s. 775.083, or s.
3059      775.084. A person who is convicted of a violation of this
3060      subsection shall be sentenced to a minimum term of imprisonment
3061      of 2 years.
3062                (b)     A person may not solicit or cause to be solicited any
3063      business from a person involved in a motor vehicle accident by
3064      any means of communication other than advertising directed to
3065      the public for the purpose of making motor vehicle tort claims
3066      or claims for benefits under medical payments coverage in a
3067      motor vehicle insurance policy personal injury protection
3068      benefits required by s. 627.736, within 60 days after the
3069      occurrence of the motor vehicle accident. Any person who
3070      violates this paragraph commits a felony of the third degree,
3071      punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
3072                (c)     A lawyer, health care practitioner as defined in s.
3073      456.001, or owner or medical director of a clinic required to be
3074      licensed pursuant to s. 400.9905 may not, at any time after 60
3075      days have elapsed from the occurrence of a motor vehicle

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          HB 1181                                                                                                2025




3076      accident, solicit or cause to be solicited any business from a
3077      person involved in a motor vehicle accident by means of in
3078      person or telephone contact at the person's residence, for the
3079      purpose of making motor vehicle tort claims or claims for
3080      benefits under medical payments coverage in a motor vehicle
3081      insurance policy personal injury protection benefits required by
3082      s. 627.736. Any person who violates this paragraph commits a
3083      felony of the third degree, punishable as provided in s.
3084      775.082, s. 775.083, or s. 775.084.
3085                (9)     A person may not organize, plan, or knowingly
3086      participate in an intentional motor vehicle crash or a scheme to
3087      create documentation of a motor vehicle crash that did not occur
3088      for the purpose of making motor vehicle tort claims or claims
3089      for benefits under medical payments coverage in a motor vehicle
3090      insurance policy personal injury protection benefits as required
3091      by s. 627.736. Any person who violates this subsection commits a
3092      felony of the second degree, punishable as provided in s.
3093      775.082, s. 775.083, or s. 775.084. A person who is convicted of
3094      a violation of this subsection shall be sentenced to a minimum
3095      term of imprisonment of 2 years.
3096                (10)        A licensed health care practitioner who is found
3097      guilty of insurance fraud under this section for an act relating
3098      to a motor vehicle personal injury protection insurance policy
3099      must lose loses his or her license to practice for 5 years and
3100      may not receive reimbursement under medical payments coverage in

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          HB 1181                                                                                                2025




3101      a motor vehicle insurance policy for personal injury protection
3102      benefits for 10 years.
3103                Section 60.         For the 2025-2026 fiscal year, the sum of
3104      $83,651 in nonrecurring funds is appropriated from the Insurance
3105      Regulatory Trust Fund to the Office of Insurance Regulation for
3106      the purpose of implementing this act. This section shall take
3107      effect July 1, 2025.
3108                Section 61.         Except as otherwise expressly provided in this
3109      act and except for this section, which shall take effect upon
3110      this act becoming a law, this act shall take effect July 1,
3111      2026.




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HB 1431
                                     FLORIDA HOUSE OF REPRESENTATIVES
                                               BILL ANALYSIS
       This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 1431                                       COMPANION BILL: CS/SB 1658 (Collins)
TITLE: Pub. Rec./Uniform Mitigation Verification      LINKED BILLS: HB 1429 Fabricio
Inspection Forms                                      RELATED BILLS: None
SPONSOR(S): Chaney
Committee References
       Insurance & Banking                   Government Operations                   Commerce
                                                                                               

SUMMARY
Effect of the Bill:
The bill creates a public records exemption for the electronic submissions of the uniform mitigation verification
form and the policyholder’s identifying information contained therein.

Fiscal or Economic Impact:
None

Extraordinary Vote Required for Passage:
The bill requires a two-thirds vote of the members present and voting in both houses of the Legislature for final
passage.


JUMP TO                  SUMMARY                          ANALYSIS                  RELEVANT INFORMATION                    BILL HISTORY


ANALYSIS
EFFECT OF THE BILL:
The bill creates a public records exemption for the electronic filings of the uniform mitigation verification
inspection forms (“forms”) and associated data, including the policyholder’s:
     Identities;
     Telephone numbers,
     E-mail addresses;
     Insurance companies; and
     Insurance policy numbers. (Section 1).

In support of this exemption, the bill provides a public necessity statement as required by the Florida Constitution.
Therein, the bill cites to repercussions of disclosing identifying information contained in the forms. (Section 2).

Further, the bill:
    Provides that, pursuant to the Open Government Sunset Review Act, this exemption will be automatically
       repealed on October 2, 2030, unless reviewed and saved from repeal through legislative reenactment.
       (Section 1).
    Provides an effective date of July 1, 2025. (Section 3).

RELEVANT INFORMATION
SUBJECT OVERVIEW:

Public Records

STORAGE NAME: h1431.IBS
DATE: 4/1/2025
                                                                                                                                             1
Article 1, section 24 of the Florida Constitution sets forth the state’s public policy regarding access to government
records, generally guaranteeing every person a right to inspect or copy any public record of the legislative,
executive, and judicial branches of government. Similarly, ch. 119, F.S., generally guarantees every person a right to
inspect and copy any state, county, or municipal record.

Public Records Exemption

The Florida Constitution authorizes the Legislature to provide by general law an exemption from public records
requirements; in other words, the Legislature may provide that a specific record, or a portion thereof, is not subject
to the access requirements of s. 119.07(1), F.S., or article I, section 24, of the Florida Constitution.1 However, the
bill creating the exemption must pass by a two-thirds vote of each chamber and state with specificity the public
necessity justifying the exemption.2 Further, the exemption itself may be no broader than necessary to accomplish
the law’s stated public purpose.3

Open Government Sunset Review Act

The Open Government Sunset Review Act4 (“Act”) provides that a public records exemption may be created,
revised, or maintained only if it serves an identifiable public purpose and the “Legislature finds that the purpose is
sufficiently compelling to override the strong public policy of open government and cannot be accomplished
without the exemption.”5 An identifiable public purpose is served if the exemption:
     Allows the state or its political subdivisions to effectively and efficiently administer a governmental
        program, which administration would be significantly impaired without the exemption;
     Protects sensitive personal information that, if released, would be defamatory or would jeopardize an
        individual’s safety; however, only the identity of an individual may be exempted under this provision; or
     Protects trade or business secrets.6

Further, pursuant to the Act, a new public record exemption or substantial amendment of an existing public record
exemption is automatically repealed on October 2nd of the fifth year following enactment, unless the Legislature
reenacts the exemption.7

Discounts for Hurricane Mitigation

Florida law promotes mitigation by requiring insurers to offer premium discounts for properties with certain
wind-resistant features (such as fortified roofs, window protection, etc.). S. 627.711, F.S. requires that insurers
notify policyholders about available hurricane mitigation discounts and accept a Uniform Mitigation Verification
Inspection Form as proof of a home’s mitigation features.

Currently, the identifying information contained in the form is not exempt under public records law.

OTHER RESOURCES:
Uniform Mitigation Verification Inspection Form




1 Art. I, s. 24(c), Fla. Const.; s. 119.011(8), F.S.
2 Art. I, s. 24(c), Fla. Const.; art. X, s. 12(e), Fla. Const.
3 Art. I, s. 24(c), Fla. Const.
4 S. 119.15, F.S.
5 S. 119.15(6)(b), F.S.
6 Id.
7 S. 119.15(3), F.S.


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                                                                                                                         2
                            BILL HISTORY
                                                     STAFF
                                                   DIRECTOR/       ANALYSIS
COMMITTEE REFERENCE       ACTION       DATE       POLICY CHIEF   PREPARED BY
Insurance & Banking                                  Hamon          Schenk
Subcommittee
Government Operations
Subcommittee
Commerce Committee




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                                                                                3
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           HB 1431                                                                                               2025




    1                                         A bill to be entitled
    2                An act relating to public records; amending s.
    3                627.711, F.S.; providing exemptions from public
    4                records requirements for insureds' uniform mitigation
    5                verification inspection forms and associated data
    6                entered into the Office of Insurance Regulation
    7                database; providing for future legislative review and
    8                repeal of the exemptions; providing a statement of
    9                public necessity; providing a contingent effective
10                   date.
11
12         Be It Enacted by the Legislature of the State of Florida:
13
14                   Section 1.       Paragraph (e) of subsection (2) of section
15         627.711, Florida Statutes, as amended by HB 1429 or similar
16         legislation, 2025 Regular Session, is redesignated as paragraph
17         (f), and a new paragraph (e) is added to that subsection to
18         read:
19                   627.711       Notice of premium discounts for hurricane loss
20         mitigation; uniform mitigation verification inspection form.—
21                   (2)
22                   (e)1.       The electronic filings and the associated data
23         entered into the database under paragraph (d), including the
24         policyholders' identities, telephone numbers, e-mail addresses,
25         insurance companies, and insurance policy numbers, are

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        HB 1431                                                                                               2025




26      confidential and exempt from s. 119.07(1) and s. 24(a), Art. I
27      of the State Constitution.
28                2.      This paragraph is subject to the Open Government Sunset
29      Review Act in accordance with s. 119.15 and shall stand repealed
30      on October 2, 2030, unless reviewed and saved from repeal
31      through reenactment by the Legislature.
32                Section 2.       The Legislature finds that it is a public
33      necessity that a statewide uniform mitigation verification
34      inspection form submitted electronically, which reveals the
35      policyholder's name, identity, telephone number, e-mail address,
36      insurance company, and insurance policy number be confidential
37      and exempt from s. 119.07(1), Florida Statutes, and s. 24(a),
38      Article I of the State Constitution. Uniform mitigation
39      verification inspection forms reveal critical personal
40      identifying information regarding policyholders and, in
41      aggregate, can be used to identify information claimed as a
42      trade secret pursuant to s. 624.4213, Florida Statutes.
43      Disclosing identifying information contained in uniform
44      mitigation verification inspection forms significantly
45      undermines the privacy of policyholders and can result in the
46      release of otherwise exempt trade secret information protections
47      claimed by insurers. Pervasive use of the Internet and related
48      technologies abet those with malicious purposes in exploiting
49      the use of personal identifying information within uniform
50      mitigation verification inspection forms, creating ever-

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        HB 1431                                                                                               2025




51      expanding threats to privacy and security never envisioned in
52      generations past. The establishment of a statewide database to
53      be operated by the Office of Insurance Regulation will lead to a
54      single repository with a vast amount of identifying information.
55      Furthermore, the public disclosure of such information could
56      hinder the effective and efficient administration of the
57      database. Therefore, the Legislature finds that it is a public
58      necessity to make exempt from public records requirements
59      identifying information contained in the uniform mitigation
60      verification inspection form electronic submissions.
61                Section 3.       This act shall take effect on the same date
62      that HB 1429 or similar legislation takes effect, if such
63      legislation is adopted in the same legislative session or an
64      extension thereof and becomes a law.




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                                                                                                             hb1431-00
                      INSURANCE & BANKING SUBCOMMITTEE

                             HB 1431 by Rep. Chaney
             Pub. Rec./Uniform Mitigation Verification Inspection Forms

                                AMENDMENT SUMMARY
                                    April 2, 2025


Amendment 1 by Rep. Chaney (Line 27): The amendment clarifies that electronic filings and
associated data entered into the uniform mitigation verification database may be released to
another governmental entity to support that entity’s official duties and responsibilities.
                                        COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                 Bill No. HB 1431    (2025)
      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 Chaney offered the following:
4
5          Amendment
6          Remove line 27 and insert:
7     of the State Constitution. The filings and data may be released

8     to another governmental entity in furtherance of that entity’s

9     official duties and responsibilities.




    776809 - h1431-line27.docx
    Published On: 4/2/2025 5:42:49 PM
                                 Page 1 of 1
PCS for HB 881
                                     FLORIDA HOUSE OF REPRESENTATIVES
                                               BILL ANALYSIS
       This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: PCS for HB 881                              COMPANION BILL: SB 1428 (DiCegile)
TITLE: Insurance                                    LINKED BILLS: None
SPONSOR(S): Insurance & Banking Subcommittee        RELATED BILLS: None
Committee References
                                    Orig. Comm.: Insurance & Banking


SUMMARY
Effect of the Bill:
The bill:
    Defines “sufficient evidence” for precluding bad faith actions against liability insurers.
    Authorizes the Florida Department of Law Enforcement (FDLE) to process background checks for insurance
        personnel.
    Requires fair, documented affiliate compensation; mandates fee-for-service model by July 2026; requires
        the Office of Insurance Regulation (OIR) approval for payments, dividends, and capital transfers to affiliates.
    Requires all affiliate payments to comply with new standards.
    Requires public adjusters to respond to claim status requests within 14 days.
    Requires annual reports and disclosures for policyowners.
    Updates definitions, surplus and bond requirements for reciprocal insurers; regulates subscriber
        contributions, savings accounts, and distributions.
    Requires independent subscriber committees with election and oversight duties.
    Repeals outdated provisions; updates merger/conversion procedures.
    Requires reciprocal insurers to maintain unearned premium reserves.

Fiscal or Economic Impact:
The bill will have an indeterminate fiscal impact.



JUMP TO                  SUMMARY                          ANALYSIS                  RELEVANT INFORMATION                    BILL HISTORY


ANALYSIS
EFFECT OF THE BILL:
Bad Faith
The bill defines “sufficient evidence” for the purpose of precluding bad faith actions against liability insurers.
“Sufficient evidence” must include written or photographic evidence of personal or property injury, such as
accident reports, photos, medical or repair bills, or receipts. If an insurer believes the evidence is insufficient, it
must object in writing within 10 business days or waive the objection. The claimant then has 10 business days to
clarify or provide more evidence. This change clarifies what constitutes "sufficient evidence" necessary to trigger
the start of the time period within which the insurer must tender payment to avoid bad faith. (Section 1).

Background Checks
The bill authorizes the FDLE to accept and process fingerprints and exchange criminal history records for
individuals involved in the insurance industry. The bill requires background checks for a wide range of persons
associated with insurers or insurance-related entities, including organizers, officers, employees, contractors, and
others who may influence or control insurance operations. Fingerprints must be submitted to the OIR or an
authorized vendor and will be processed by both the FDLE and the Federal Bureau of Investigation. The results of
the background checks will be used by the OIR to determine whether individuals meet eligibility requirements for
STORAGE NAME: PCS0881.IBS
DATE: 4/2/2025
                                                                                                                                             1
licensure, certification, or authority to operate under the Florida Insurance Code. The bill also provides procedures
for submission, retention, and cost responsibilities associated with fingerprint processing and background checks.
(Section 2).

Affiliate Transaction Oversight
The bill provides increased regulatory oversight of financial transactions between insurers and affiliated entities,
including managing general agents (MGAs), attorneys in fact, and reciprocal insurers. The bill applies to any
insurer that contracts with or makes payments to such entities and establishes requirements to ensure those
payments are fair, reasonable, and in the insurer’s best interest.

The bill defines key terms, including "affiliated entity," which broadly includes affiliates, MGAs, attorneys in fact,
and reciprocal insurers involved in compensation or contractual arrangements with the insurer.

The bill requires insurers to submit documentation to the OIR demonstrating that all fees, commissions, or
payments to affiliated entities are fair and reasonable for each service provided. The OIR must evaluate this using
specified factors, including the actual cost of services, financial condition of the parties, debt levels, dividends or
payments exchanged, and whether the contract terms benefit the insurer.

For all agreements in effect on July 1, 2025, insurers must report by October 1, 2025, the costs incurred by
affiliates, amounts charged to the insurer, and any fees forgiven or reimbursed over the past two years. If charges
exceed costs, insurers must justify how the fees are fair and reasonable. New contracts after that date must include
similar documentation before becoming effective.

Beginning July 1, 2026, all compensation arrangements must follow a fee-for-service model, meaning fixed or
hourly rates for itemized services. Compensation may not be based on commissions, premium volume,
underwriting profits, or financial performance of the insurer. Dividends or other financial arrangements with
affiliates are still allowed but must be separately reviewed and approved by the OIR.

The bill also provides that:
    All agreements with affiliated entities must include a termination clause and may not exceed three years
        without undergoing review and reapproval by the OIR.
    The OIR must be notified at least 30 days in advance before an insurer pledges capital or assets to an
        affiliate, and the OIR may prohibit such arrangements if not in the insurer’s best interest.
    During a declared emergency, the OIR may issue orders restricting transfers of funds to affiliates without
        prior approval, for up to 90 days, with extensions allowed.
    All dividends paid to affiliates, regardless of relationship, must be approved by the OIR.
    The OIR may recover improper transfers, including those made in violation of approved arrangements or
        while the insurer was undercapitalized.

Finally, the bill authorizes the OIR to impose penalties for violations of these requirements and requires the
Financial Services Commission to adopt rules to implement these provisions. (Section 3).

Application of Dividend Requirements to Affiliated Entities
The bill expands dividend restrictions and requirements currently applicable to domestic stock insurers to include
application to affiliated entities. Additionally, the bill requires that any approval of a dividend, distribution, or
other financial arrangement comply with the affiliate transaction oversight provisions created in the bill. (Section
7).

Authority Over Affiliate Dividends
The bill gives the OIR express oversight and regulatory authority over dividends and other financial arrangements
paid to affiliates. The bill prohibits the declaration or distribution of such payments without prior approval from
the OIR. It also requires that all affiliate dividends and financial arrangements comply with the affiliate transaction
oversight provisions created in the bill. The bill authorizes the OIR to impose penalties for unauthorized
transactions and directs the OIR to adopt rules to implement the section. (Section 8).


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                                                                                                                          2
Affiliate Compensation Compliance
The bill requires that affiliate compensation arrangements comply with the provisions created in the bill, in
addition, to the existing requirement that such payments be fair and reasonable. (Section 4).

Reciprocal affiliates
The bill specifies that the attorney in fact of a reciprocal insurer is considered an affiliated entity of the reciprocal
for purposes of section 624.10, F.S., and the affiliated entity provisions created in the bill apply to reciprocal
affiliates. (Section 11).

Public Adjusters
The bill requires public adjusters to respond to claim status requests within 14 days. (Section 5).

Universal Life Insurance Policies
The bill establishes annual reporting requirements and policy disclosures for universal life insurance policies
issued in Florida. It defines key terms such as "universal life insurance policy1," "policy value2," "net cash surrender
value3," and distinguishes between fixed-premium4 and flexible-premium policies.5

The bill requires insurers to provide policyowners with a free, annual status report that includes specific
information such as policy values, credited and debited amounts, outstanding loans, current death benefits, and net
cash surrender value. The report must also include warnings when the policy’s value is projected to be insufficient
to keep the policy in force, either until the next reporting period or until contract maturity, depending on the type
of policy.

These requirements apply to all universal life insurance policies issued in the state, excluding variable contracts as
defined in s. 627.8015, F.S. (Section 6).

Reciprocal Insurers
The bill modifies the definition of a reciprocal insurer to include two new classes: assessable reciprocal insurers
and non-assessable reciprocal insurers. (Section 9).

Assessable and Non-Assessable Reciprocal Insurers
The bill amends the surplus funds required for a reciprocal insurer, with such requirements differing based on
whether the reciprocal is assessable or non-assessable. Current law requires reciprocal insurers to have $750,000
in expendable surplus when first authorized, and to maintain $250,000 in surplus funds. Under the bill:
     Assessable reciprocal insurers must have and maintain surplus funds of at least $3 million to transact
        insurance.
     Non-assessable reciprocal insurers are subject to the surplus required under 624.408, F.S., for a domestic
        stock insurer authorized to transact like kinds of insurance. (Section 10).

Attorney in Fact Bond
The bill increases the bond amount required for an attorney in fact of a domestic reciprocal insurer from $100,000
to $300,000 and clarifies that the bond must be in favor of the state for the benefit of all persons damaged by a
breach of the bond conditions. (Section 12).

1 Universal life insurance policy means any individual life insurance policy, rider, group master policy, or individual certificate, under the

provisions of which separately identified interest credits and mortality and expense charges are made to the policy. The policy, rider, or
certificate does not apply to policies, riders, group master policies, or individual certificates in connection with dividend accumulations,
premium deposit funds, or other supplementary accounts. A universal life insurance policy may provide for other credits and charges, such
as charges for the cost of benefits provided by a rider.
2 Policy value means the value of any individual life insurance policy, rider, group master policy, or individual certificate, under the

provisions of which separately identified interest credits, other than in connection with dividend accumulations, premium deposit funds, or
other supplementary accounts, and mortality and expense charges are made to the policy. A universal life insurance policy may provide for
other credits and charges, such as charges for the cost of benefits provided by a rider.
3 Net cash surrender value means the maximum amount payable to the policyowner upon surrender.
4 Fixed-premium universal life insurance policy means a universal life insurance policy other than a flexible-premium universal life

insurance policy.
5 Flexible-premium universal life insurance policy means a universal life insurance policy that allows the policyowner to vary, independently

of each other, the amount of timing of one or more premium payments or the amount of insurance.

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                                                                                                                                                 3
Subscriber Advisory Committee
The bill revises the structure and governance requirements for subscribers’ advisory committees6 of reciprocal
insurers. It requires each reciprocal insurer to establish a subscribers’ advisory committee that represents the
interests of its subscribers, with governing rules and any amendments subject to approval by the OIR.

The bill expands the committee’s duties to include supervising the insurer’s operations for compliance with all
governing documents and authorizes the committee to hire independent professionals at the insurer’s expense.
The initial committee must be appointed by the original subscribers or the attorney in fact.

At least two-thirds of the committee must be independent subscribers who are not affiliated with the attorney in
fact. These members must be elected by the subscribers within six months of the insurer receiving its certificate of
authority. The bill also requires reciprocal insurers with more than 50 subscribers to provide a platform that
enables subscribers to communicate with one another about the election process. (Section 17).

Subscriber Contributions
The bill authorizes reciprocal insurers to require subscriber contributions7 in addition to premiums, subject to
prior approval by the OIR. The bill requires reciprocal insurers to clearly disclose such contributions on the
declarations page of the policy and to provide subscribers with an annual report detailing how each dollar of the
contribution was allocated or spent. (Section 13).

Subscriber contributions may not exceed 2 percent of each individual subscribers’ policy premium for a
nonassessable reciprocal insurer and 10 percent of each individual subscribers’ policy premium for an assessable
reciprocal insurer. Subscriber contributions are allowed as assets for the purposes of determining the reciprocal’s
financial condition, except that any premium deposits delinquent for 90 days will first be charged against such
subscriber contributions. (Section 18).

Subscriber Savings Accounts
The bill authorizes reciprocal insurers to establish subscriber savings accounts 8 and sets requirements for their
use and disclosure. The bill requires insurers to inform subscribers in writing about limitations, restrictions,
distribution procedures, and calculation methods. Additionally, the bill requires that advertisements disclose
limitations and provides that, upon policy cancellation or nonrenewal, subscribers are entitled to the funds in their
accounts unless otherwise restricted by law, contract, or regulatory order. (Section 14).

Subscriber Distributions
The bill authorizes to make distributions9 to subscribers from their subscriber savings accounts. The subscribers’
advisory committee shall have sole authority to authorize distributions, subject to prior the OIR approval. Any
reciprocal that otherwise authorizes distributions but prohibits subscribers from receiving distributions for a
specified period of time, including after initial subscription, must renew the subscriber’s policy for that period of
time plus 1 additional policy year. This does not prohibit the cancellation or nonrenewal of a policy pursuant to
624.4133, F.S., or by the OIR order.

The bill provides that a reciprocal insurer may return to its subscribers any unused premiums, savings, or credits
accruing to their accounts. Such distribution may not unfairly discriminate between classes of risks or policies, or
between subscribers, but may vary as to classes of subscribers based on the experience of the classes.



6 Subscribers' advisory committee means the committee of a domestic reciprocal insurer which is formed in compliance with s. 629.201 and

represents the interests of the subscribers.
7 Subscriber contribution means any transfer of money by a subscriber of a reciprocal insurer to the reciprocal insurer in excess of the

premium approved by the office, when such money is counted as surplus for the reciprocal insurer or used to pay surplus notes.
8 Subscriber savings account means any account in which a reciprocal insurer assigns money for the benefit of an individual subscriber,

other than accounts holding money for the payment of a specific claim by or settlement of a specific legal dispute with that individual
subscriber.
9 Distribution means any transfer of money from the reciprocal insurer to subscribers other than for the payment of a claim, settlement of a

legal dispute, or return of principle.

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The bill provides that a domestic reciprocal insurer may, upon prior written OIR approval, pay to its subscribers a
portion of unassigned funds of up to 10 percent of surplus, with distribution limited to 50 percent of net income
from the previous calendar year. Such distribution may not unfairly discriminate between classes of risks or
policies, or between subscribers, but may vary as to classes of subscribers based on the experience of the classes.
(Section 15).

Annual Statement
The bill specifies that the annual statement procured by the subscribers advisory committee must be an audited
annual statement of the accounts and records of the insurer and the attorney in fact. The bill provides that:
    The insurer’s statement must be prepared by an independent auditor at the insurer’s expense, and made
        available for inspection by any subscriber, and filed by the attorney in fact.
    The statement of the attorney in fact must be prepared by an independent auditor at the expense of the
        attorney in fact, and filed with the annual statement of the reciprocal. (Section 16).

Repealed Provisions Related to Reciprocal Insurers
The bill repeals several provisions of ch. 629, F.S., relating to reciprocal insurers, including
    629.271, F.S. This section is effectively replaced by the bill’s subscriber distributions provision. (Section
        19).
    629.401, F.S. Removes a cross reference to a repealed statute. (Section 22 and 25).
    629.520, F.S. (Section 23).

Merger or Conversion
The bill makes two technical changes regarding reciprocal insurers merger or conversion.
     The Financial Services Commission, rather than the OIR, will provide the appropriate legal forms for
         merging reciprocals or conversion into a stock or mutual insurer.
     Clarifies language in statute to make it clearer that the provision is applicable in the case of either merger
         or conversion. (Section 20).

Impaired Reciprocal Insurers
The bill clarifies that the OIR issues the order for the attorney in fact to make up a deficiency or levy an assessment
and specifies that, upon liquidation, the receiver shall levy assessments on subscribers to cover all liabilities,
including liquidation costs, subject to any limits in the power of attorney, the policy, or ch. 629, F.S. (Section 21).

Unearned Premium Reserve
The bill creates s. 629.56, F.S., to require reciprocal insurers to maintain an unearned premium reserve at all times
in accordance with section 625.051, F.S. (Section 24)

Compliance Deadlines for Existing Reciprocal Insurers
The bill provides that reciprocal insurers licensed before July 1, 2025, must comply with the new subscribers’
advisory committee requirements in s. 629.201, F.S., by July 1, 2026, and with the new unearned premium reserve
requirements in s. 629.56, F.S., by July 1, 2027. (Section 26).

Except as expressly provided otherwise, the bill takes effect July 1, 2025. (Section 27).



RULEMAKING:
The bill grants rulemaking authority to the OIR to implement the affiliate transaction oversight provisions created
by the bill, and requires rulemaking to implement s. 628.372, F.S., relating to dividends and financial arrangements
with affiliates.

Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.


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FISCAL OR ECONOMIC IMPACT:

STATE GOVERNMENT:
The bill will have an indeterminate fiscal impact.



RELEVANT INFORMATION
SUBJECT OVERVIEW:
Regulation of Insurance in Florida
The Office of Insurance Regulation (OIR) regulates specified insurance products, insurers and other risk bearing
entities in Florida.10 As part of their regulatory oversight, the OIR may suspend or revoke an insurer’s certificate of
authority under certain conditions.11 The OIR is responsible for examining the affairs, transactions, accounts,
records, and assets of each insurer that holds a certificate of authority to transact insurance business in Florida.12
As part of the examination process, all persons being examined must make available to the OIR the accounts,
records, documents, files, information, assets, and matters in their possession or control that relate to the subject
of the examination.13 The OIR is also authorized to conduct market conduct examinations to determine compliance
with applicable provisions of the Insurance Code.14

Insurance companies that transact insurance in Florida or that have offices located in the state are required to
obtain a certificate of authority (COA) issued by the OIR pursuant to s. 624.401, F.S. These companies, referred to
as authorized or admitted insurers,15 are broadly regulated by the OIR under the Insurance Code as to reserves,
surplus as to policyholders, solvency, rates and forms, market conduct, permissible investments, and affiliate
relationships.16 Authorized insurers are also required to participate in a variety of government mandated
insurance programs and pay assessments levied by state guaranty funds in the event of insurer insolvencies.17

Bad Faith in Insurance
Insurance is a contract between an insurance company (“insurer”) and the insurance policy’s beneficiary (“the
insured”), in which, for specified consideration called a “premium,” the insurer agrees to pay the insured or third-
party claimants for covered losses.18 An insurer generally owes two significant contractual duties to its insured in
exchange for premium payments: the duty to indemnify and the duty to defend.19
     The “duty to indemnify” refers to the insurer’s obligation to issue payment to the insured on a valid claim.20
        For example, an insured may purchase a policy requiring the insurer to replace the insured’s vehicle in the
        event of a car accident. If a covered accident then occurs, causing the insured’s vehicle to be destroyed, the
        duty to indemnify requires the insurer to replace the insured’s vehicle.
     The “duty to defend” refers to the insurer’s duty to defend the insured in court against a third party with
        respect to a covered claim.21 For example, an insured may purchase a liability policy in the event the
        insured causes a car accident and injuries a third party. If a covered accident then occurs, causing injury to

10 s. 20.121(3)(a), F.S. The Financial Services Commission, composed of the Governor, the Attorney General, the Chief Financial Officer, and

the Commissioner of Agriculture, serves as agency head of the Office of Insurance Regulation for purposes of rulemaking. Further, the
Financial Services Commission appoints the commissioner of the Office of Insurance Regulation.
11 s. 624.418, F.S.
12 s. 624.316(1)(a), F.S.
13 s. 624.318(2), F.S.
14 s. 624.3161, F.S.
15 An “authorized” or “admitted” insurer is one duly authorized by a COA to transact insurance in this state.
16 The Insurance Code consists of chs. 624-632, 634, 635, 636, 641, 642, 648, and 651, F.S.
17 For example, Florida licensed direct writers of property and casualty insurance must be members of the Florida Insurance Guaranty

Association, which handles the claims of insolvent insurers under part II of ch. 631, F.S., and insurers offering workers’ compensation
coverage in Florida must be members of the Florida Workers’ Compensation Insurance Guaranty Association, which provides payment of
covered clander part V of ch. 631, F.S.
18 16 Williston on Contracts s. 49:103 (4th ed.).
19 Id.
20 Id.
21 Id.


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         a third-party claimant who sues the insured, the duty to defend requires the insurer to defend the insured
         against the claimant’s lawsuit.

Insurer’s Common Law and Statutory Duties
Florida courts, in applying the common law, recognize that an insurer owes its insured a duty of good faith in
negotiating settlements with third-party claimants.22 There is also a statutory duty of good faith codified in s.
624.155, F.S. Under that provision, a statutory bad faith claim may arise where the insurer:
     Does not attempt in good faith to settle claims when, under all the circumstances, it could and should have
        done so;
     Makes claim payments without a statement identifying the applicable coverage; or
     Fails to promptly settle a claim under one portion of the policy to influence settlement under another
        portion.

Florida courts have interpreted an insurer’s obligation to “act fairly” towards its insured, holding that when the
insured’s liability is clear and an excess judgment23 is likely due to the resulting damage, the insurer has an
affirmative duty to initiate settlement negotiations with third-party claimants.24 If settlement fails, the insurer has
the burden of showing that there was no realistic possibility of settling the claim within the policy limits.25

However, failure to settle a claim, without more, does not necessarily mean that an insurer has acted in bad faith,
as liability may be unclear or the damages may be minimal. Further, courts have generally indicated that merely
negligently failing to settle a claim does not rise to the level of bad faith, though a jury may consider negligence in
the larger context of whether bad faith occurred.26

First-Party vs. Third-Party Bad Faith Claims
There are two general types of bad faith claims: “first-party” claims and “third-party” claims.
     A “first-party” bad faith claim is a claim filed by the insured against his or her own insurer; these claims
        typically involve allegations that the insurer improperly denied the insured coverage under the policy,
        underpaid a covered claim, or delayed payment without adequate justification.27
     A “third-party” bad faith claim arises when the insured is exposed to liability to a third party; such a claim,
        which may be brought by either the insured or the third party, typically arises when:
            o An insurer fails to settle in good faith a third party’s claim against the insured within the policy
                 limits;
            o There is serious injury to the third-party claimant; and
            o The policy limits are minimal, thus exposing the insured to an excess judgment.28

Legislative Reforms – HB 837 (2023)
In 2023, HB 837 amended s. 624.155, F.S., to clarify that mere negligence is not sufficient to constitute bad faith
and established that the insured, third-party claimant, and any representative of either have a duty to act in good
faith when furnishing claim information, making demands, setting deadlines, or attempting to settle.29 The judge or
jury (trier of fact) may consider a failure to act in good faith by any of these parties and may reasonably reduce
damages awarded against the insurer accordingly.30

Additionally, HB 837 established a safe harbor from bad faith liability in liability insurance claims. An insurer is not
liable for bad faith under either statute or common law if it tenders the lesser of the policy limits or the amount



22 Mut. Indemnity Co. v. Shaw, 184 So. 852 (Fla. 1938).
23 An “excess judgment” is a judgment in an amount over and above the insurance policy’s coverage limits, which amount is paid out of the

insured’s own pocket.
24 Powell v. Prudential Prop. and Cas. Ins. Co., 584 So. 2d 12, 14 (Fla. 3d DCA 1991).
25 Id. at 14.
26 See DeLaune v. Liberty Mut. Ins. Co., 314 So. 2d 601, 603 (Fla. 4th DCA 1975).
27 The Florida Senate, Interim Report 2012-132: Insurance Bad Faith (Nov. 2011),

https://www.flsenate.gov/publishedcontent/session/2012/interimreports/2012-132ju.pdf (last visited March. 24, 2025).
28 Id.
29 ch. 2023-15, Laws of Fla.
30 Id.


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demanded by the claimant within 90 days after receiving actual notice of the claim along with sufficient evidence
to support the amount. If the insurer does not tender within the 90-day period, the following applies:
     The existence of the safe harbor period and the fact that no bad faith action would have accrued had
       payment been tendered are inadmissible in a subsequent bad faith action; and
     The applicable statute of limitations is extended by 90 days.31

HB 837 further provided that if multiple third-party claimants present competing claims arising out of a single
occurrence that may exceed the insured’s policy limits, the insurer is not liable beyond those limits if, within 90
days, it either:
    Files a lawsuit (interpleader action) under the Florida Rules of Civil Procedure; or
    Agrees to binding arbitration and makes the full policy limits available for distribution before a mutually
         selected arbitrator, at the insurer’s expense.32

Bad Faith Claim Pre-Suit Notice Requirement
To bring a statutory bad faith claim under s. 624.155, F.S., whether first-party or third-party, a plaintiff must first
give the insurer 60 days’ written notice of the claim by filing a civil remedy notice with Department of Financial
Services (DFS).33 The insurer then has 60 days from receiving notice from DFS to either pay the damages or correct
the circumstances giving rise to the bad faith claim, and the statutory cause of action does not accrue until the 60-
day “cure” period has run without the insurer taking such steps.34 Where the insurer timely pays the damages or
otherwise corrects the circumstances giving rise to the bad faith claim, no statutory bad faith lawsuit may be
brought.35

If a plaintiff brings a third-party common law bad faith claim, by contrast, there is no statutory pre-suit notice
requirement; thus, the insurer cannot avoid a third-party bad faith lawsuit by paying the damages or curing the
circumstances giving rise to the claim within the statutory cure period. However, after HB 837 (2023), the claimant
now has the right to offer the insurer an opportunity to cure.

Filing a Bad Faith Claim
Generally, a bad faith cause of action does not accrue until the underlying contractual claim is resolved. 36 In a first-
party context, this means the insured must prevail on their coverage claim before bringing a bad faith suit. In a
third-party context, the action usually accrues only after an excess judgment is entered against the insured. 37

Indefiniteness About What Constitutes Bad Faith
Florida law does not precisely define “bad faith,” and the determination is generally a question of fact for the jury,
based on the totality of the circumstances.38 Courts have noted that insurer liability must be based on more than a
failure to settle or negligence—there must be conduct showing a lack of fair dealing or failure to give due regard to
the insured’s interests.39

Florida Department of Law Enforcement
The Florida Department of Law Enforcement (FDLE) is a state agency created in 1969 to provide investigative,
forensic, and criminal justice services in support of Florida’s law enforcement community.40 FDLE operates under
the direction of the Florida Cabinet and maintains its headquarters in Tallahassee, with regional operations


31 Id.
32 ch. 2023-15, Laws of Fla.
33 s. 624.155(3)(a), F.S.
34 s. 624.155(3)(c), F.S.; Talat Enterprises, Inc. v. Aetna Cas. & Sur. Co., 753 So. 2d 1278, 1284 (Fla. 2000).
35 s. 624.155(3)(c), F.S.
36 Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289, 1291 (Fla. 1991).
37 Id.
38 Berges v. Infinity Ins. Co., 896 So. 2d 665 (Fla. 2004).
39 See DeLaune v. Liberty Mut. Ins. Co., 314 So. 2d 601, 603 (Fla. 4th DCA 1975) (holding that negligence alone does not amount to bad faith);

Macola v. Gov’t Emps. Ins. Co., 953 So. 2d 451, 458 (Fla. 2007) (explaining that payment of policy limits after a civil remedy notice does not
bar a common law bad faith claim); Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289, 1291 (Fla. 1991) (bad faith action does not
accrue until coverage and damages are determined); Berges v. Infinity Ins. Co., 896 So. 2d 665, 680 (Fla. 2004) (bad faith is assessed under
the totality of the circumstances and requires fair and honest treatment of the insured’s interests).
40 s. 943.03, F.S.


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throughout the state. FDLE’s mission is to promote public safety and strengthen domestic security by providing
services to local, state, and federal agencies.41

FDLE is responsible for processing criminal history background checks and fingerprint submissions for a wide
range of professions and regulatory programs, including those involving licensure and employment eligibility.42
The agency is authorized to exchange fingerprint data with the United States Department of Justice as part of
national criminal history checks.43

As part of Florida’s oversight of the insurance industry, the FDLE provides access to criminal history information to
noncriminal justice agencies, such as the Department of Financial Services (DFS), for use in evaluating insurance
licensure applications.44 Individuals applying for licenses—such as insurance agents, adjusters, and other regulated
professionals—must submit to fingerprint-based background screenings.45 Fingerprints must be submitted
electronically through a LiveScan vendor approved by FDLE.46 FDLE processes the fingerprints and transmits the
results to the appropriate licensing authority, typically DFS, to determine the applicant’s eligibility.47

Division of Insurance Agent and Agency Services
The DFS Division of Insurance Agent and Agency Services is responsible for the licensing and regulation of
insurance agents, adjusters, insurance agencies, as well as related personnel and business entities.48

No person may be, act as, or advertise, or hold himself/herself out to be an insurance agent, insurance adjuster, or
customer representative unless he or she is currently licensed by DFS and appointed by an appropriate appointing
entity or person.49 There are several types of insurance representatives. These include:
              General lines agents,
              Life insurance agents,
              Health insurance agents,
              Title insurance agents,
              Personal lines agents,
              Unaffiliated insurance agents, and
              Managing general agents.50

Life Insurance
Part III of chapter 627, Florida Statutes, governs life insurance and annuity contracts.51 "Life insurance" refers to
insurance on human lives and includes the issuance of annuity contracts.
Life insurance may:
     Provide a death benefit to an individual’s beneficiaries;
     Allow survivors to pay off debts and other expenses; and
     Serve as a source of income to replace earnings lost due to the insured’s death.52

There are two primary types of life insurance:
    Term life insurance, which provides coverage for a specified period and is generally less expensive; and
    Permanent life insurance, which provides lifelong coverage and may build cash value over time. Variations
       of permanent life insurance include universal life insurance, which is commonly marketed by life insurance
       companies and includes a savings component.53

41 FDLE, Mission Statement, https://www.fdle.state.fl.us (last visited April 1, 2025).
42 S. 943.053, F.S.
43 S. 943.054, F.S.
44 S. 943.053(3)(a), F.S.
45 S. 626.171(4), F.S.
46 Florida Department of Financial Services, Fingerprinting Information, https://www.myfloridacfo.com/division/agents/licensing/agents-

and-adjusters/fingerprinting-information. (last visited on April 2, 2025).
47 Id.
48 Ch. 626, parts I, II, III, IV, V, VI, VIII, IX, and XIII, F.S.
49 S. 626.112, F.S.
50 S. 626.015, F.S.
51 S. 624.602(1), F.S.
52 Florida Office of Insurance Regulation, Life Insurance, https://flOIR .com/life-health/life (last visited April 1, 2025).
53 Id.


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Universal Life Insurance
Universal life insurance is a type of permanent life insurance that offers lifetime coverage as long as premiums are
paid.54 It includes a cash value component and allows policyholders to adjust the amount and timing of premium
payments and the death benefit, subject to policy terms and tax law limitations.55

Policyholders may choose between interest-sensitive policies and those with guaranteed interest rates. Interest-
sensitive policies allow policyholders to accept some investment risk in exchange for the possibility of higher
returns. If the cash value becomes underfunded, the policyholder may need to make increased premium payments
to maintain coverage.56

Universal life insurance can be used to meet evolving financial obligations, such as those related to marriage,
raising a family, or estate planning.57

Managing General Agents
Some insurers operate within a holding company system that includes a managing general agent (MGA).58 An MGA
is a specialized type of insurance agent or broker that has underwriting authority from an insurer.59 MGAs can
perform certain functions that insurers typically handle, including binding coverage, underwriting and pricing,
agent appointments, and claims adjusting and settlement.60 An MGA may be an affiliate of an insurer. Section
624.10(1), F.S., defines an affiliate as an entity that exercises control over or is directly or indirectly controlled by
an insurer. MGAs must enter into contracts with the insurers they do business with, including those that are
affiliates—that is, entities that control or are controlled by the insurer.61 These contracts must specify the division
of responsibilities between the insurer and the MGA.62

There is currently no statutory limit on the duration of these contracts.

Examination of Insurers and MGAs
The OIR is responsible for examining the affairs, transactions, accounts, records, and assets of each insurer that
holds a certificate of authority to transact insurance business in Florida.63 The OIR's examination authority
extends to MGAs.64

As part of the examination process, all persons being examined must make available to the OIR the accounts,
records, documents, files, information, assets, and matters in their possession or control that relate to the subject
of the examination.65 As part of an examination, the OIR reviews contracts between insurers and MGAs, so that it
can determine how much an insurer is paying its MGA and what services the insurer is receiving for the fee it pays.
The scope of the examination of an insurer’s affiliates in a holding company system is limited to information
reasonably necessary to ascertain an insurer’s financial condition.

Reciprocal Insurers
Reciprocal insurance exchanges are a form of insurance organization in which businesses and individuals exchange
insurance contracts and spread the risks associated with such contracts among themselves.66 Policyholders of a


54 https://www.investopedia.com/terms/u/universallife (last visited April 1, 2025).
55 Id.
56 S. 627.6562(1), F.S.
57 Id.
58 See s. 628.801, F.S. An “insurance holding company system” consists of two or more affiliated persons, one or more of which is an insurer.
59 S. S. 626.015(16)(a), F.S., see also, International Risk Management Institute, https://www.irmi.com/term/insurance-

definitions/managing-general-agent (last visited Mar. 28, 2025);
60 Id.
61 S. 626.7451, F.S.
62 Id.
63 s. 624.316(1)(a), F.S.
64 Id.; S. 626.7452, F.S.
65 s. 624.318(2), F.S.
66 Julia Kagan and Eric Estevez, Reciprocal Insurance Exchange: Definition, How It Works, Example (last updated Sep. 28, 2023), Investopedia,

https://www.investopedia.com/terms/r/reciprocal-insurance-exchange.asp (last visited Mar. 28, 2024).

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reciprocal insurance exchange are known as “subscribers.”67 A reciprocal insurer operates through a common
representative known as the attorney in fact, who manages the day-to-day business and executes insurance
contracts on behalf of all subscribers.68 The authority of the attorney in fact is granted through a power of attorney
agreement signed by each subscriber.69

Chapter 629, Florida Statutes, governs the regulation of reciprocal insurers in Florida. A reciprocal insurer may
transact any type of insurance authorized under the Florida Insurance Code, except title insurance. Reciprocal
insurers must be licensed by the OIR and are subject to financial and operational requirements, including annual
reporting and minimum surplus standards.70

Reciprocal insurers are required to maintain an unearned premium reserve. This reserve represents the unearned
portion of gross premiums on in-force policies and must be calculated using a method approved by the OIR. 71

Reciprocal insurers are subject to surplus requirements based on their structure.72 Assessable reciprocal insurers
must maintain a minimum surplus of $250,000. Nonassessable reciprocals are required to maintain the same
surplus as domestic stock insurers and, when first authorized, must also hold an expendable surplus of at least
$750,000.73

Typically, an advisory board manages a reciprocal insurance company.74 The board is responsible for choosing and
monitoring the attorney-in-fact, approving rates, and providing oversight of the operations of the reciprocal.75

Reciprocal insurers are also governed by a subscribers’ advisory committee, which represents the interests of the
subscribers and is responsible for oversight of the attorney in fact and insurer operations. The advisory committee
must be selected under rules adopted by the subscribers and approved by the OIR.76 Not less than two-thirds of the
committee must consist of subscribers who are not the attorney in fact or any person employed by, representing,
or having a financial interest in the attorney in fact.77 The committee must:
     Supervise the finances of the insurer;
     Supervise the insurer’s operations to such extent as to assure conformity with the subscribers’ agreement
       and power of attorney;
     Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the
       insurer; and
     Have such additional powers and functions as may be conferred by the subscribers’ agreement.78

Impaired Reciprocal Insurers
If a reciprocal insurer becomes impaired—meaning it is unable to meet its obligations or maintain required
surplus—the Department of Financial Services may initiate rehabilitation or liquidation proceedings under ch.
631, F.S., including potential rehabilitation under s. 631.051, F.S., or liquidation under s. 631.061, F.S. 79

Mergers Involving Reciprocal Insurers
Reciprocal insurers may merge or consolidate under Part III of Chapter 628, F.S., with approval from the Office of
Insurance Regulation. The unique governance structure of reciprocals, including the attorney in fact and
subscribers’ advisory committee, must be considered in any proposed transaction.80

67 Id.
68 Verstein, supra note 4 at 264.
69 Id. at 251.
70 S. 629.041(1), F.S. Such an insurer may purchase reinsurance and may grant reinsurance as to any kind of insurance it is authorized to

transact directly. See s. 629.041(2), F.S.
71 s. 625.051, F.S.
72 S. 629.071, F.S.
73 Id.
74 S. 629.041(1), F.S. Such an insurer may purchase reinsurance and may grant reinsurance as to any kind of insurance it is authorized to

transact directly. See s. 629.041(2), F.S.
75 Id.
76 s. 629.201(1), F.S.
77 s. 629.201(2), F.S.
78 s. 629.201(3), F.S.
79 s. 629.301, F.S.


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Payments to Affiliates
Each insurer doing business in Florida that pays a fee, commission, or other financial consideration or payment to
any affiliate is required to provide, upon request of the OIR, any information the OIR deems necessary. The fee,
commission, or other financial consideration or payment to any affiliate must be fair and reasonable. In
determining whether the fee, commission, or other financial consideration or payment is fair and reasonable, the
OIR must consider, among other things, the actual cost of the service being provided.81

Public Adjusters
Florida law defines a public adjuster as someone who, for something of value, directly or indirectly, prepares,
completes, or files an insurance claim for an insured or third-party claimant, or who, for something of value, acts
on behalf of, or aids, an insured or third-party claimant in settling a claim for loss or damage covered by an
insurance contract, or who advertises for employment as an adjuster of such claims.82 In general, a claimant
executes a contract for the public adjuster to provide claims adjusting services.83

Stock vs. Mutual Insurers
In order to transact insurance in this state, the Florida Insurance Code (“Code”) states that a certificate of
authority is required.84 To qualify for and hold authority to transact insurance in this state, an insurer must
be in compliance with the Code and its charter powers, and must be an incorporated stock insurer, an
incorporated mutual insurer, or a reciprocal insurer.

The distinction between stock and mutual insurers is governed by part I, ch. 628, F.S.
    Stock insurers are defined as “incorporated insurers with its capital divided into shares and owned by its
       stockholders,” and pay dividends to their stockholders, subject to specified surplus minimums and the
       OIR’s approval.85
    Mutual insurers, on the other hand, are “incorporated insurers without permanent capital stock, the
       governing body of which is elected in accordance with this part,” and pay dividends to their policyholders,
       who are members of the insurer.86

In other words, stock insurers are investor-owned, while mutual insurers are owned by their policyholders. Mutual
insurers may apply to demutualize to become a stock insurer, and stock insurers may apply to convert to a mutual
insurer, subject to the OIR’s approval.

Dividends to Stockholders
Florida law permits domestic stock insurers to distribute dividends87 to stockholders under certain conditions.
Dividends may only be paid out of available and accumulated surplus funds that are derived from realized net
operating profits and realized capital gains.88

Without prior approval from OIR, a domestic stock insurer may pay dividends within specific thresholds, such as a
percentage of surplus or recent net income. These thresholds include, for example, the lesser of 10 percent of
surplus or net gain from operations for life and health insurers, or net income for property and casualty insurers.89
Certain carryforward provisions may also apply depending on the type of insurer.




80 s. 629.111, F.S.
81 S. 624.424(13), F.S.
82 s. 626.854, F.S., Public adjusters are regulated under ch. 626, part VI, F.S.
83 Id.
84 S. 624.401, F.S. The Florida Insurance Code consists of chs. 624, 632, 634, 635, 636, 641, 642, 648, and 651, F.S
85 Ss. 628.021and 628.371, F.S.
86 Ss. 628.431 and 628.441, F.S.
87 A dividend is a distribution of a portion of an insurer’s accumulated profits or surplus to its shareholders. In the case of a domestic stock

insurer, dividends are typically paid in cash and represent a return on the shareholders’ investment. Dividends must comply with statutory
limitations to ensure that the insurer maintains sufficient surplus to meet its obligations to policyholders and maintain financial stability.
88 s. 628.371(1), F.S.
89 s. 628.371(2), F.S.


JUMP TO                    SUMMARY                           ANALYSIS                RELEVANT INFORMATION                    BILL HISTORY
                                                                                                                                                   12
Alternatively, insurers may pay a dividend without prior approval if the dividend meets specific criteria, such as
not exceeding the greater of 10 percent of surplus or the entire net operating profits and realized capital gains
from the preceding calendar year. After the dividend is paid, the insurer must retain surplus of at least 115 percent
of the minimum required statutory surplus, and it must file notice with OIR at least 10 business days before
payment.90

The OIR may disapprove any dividend or distribution that exceeds the statutory limits if it determines that the
payment would jeopardize the financial condition of the insurer, considering factors such as asset quality, liquidity,
premium-to-surplus ratios, and investment income. 91

                                                 BILL HISTORY
                                                                                    STAFF
                                                                                  DIRECTOR/            ANALYSIS
 COMMITTEE REFERENCE                         ACTION                DATE          POLICY CHIEF        PREPARED BY
IOrig. Comm.: Insurance & Banking                                                   Hamon               Herrera
 Subcommittee




90 s. 628.371(3)(b), F.S.
91 s. 628.371(4), F.S.


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           PCS for HB 881                                                                                       2025




    1                                         A bill to be entitled
    2              An act relating to insurance; amending s. 624.155,
    3              F.S.; defining the term "sufficient evidence";
    4              providing procedures and timelines for objecting, and
    5              responding to the objections, to the sufficiency of
    6              evidence submitted by claimants to insurers; creating
    7              s. 624.341, F.S.; providing legislative findings and
    8              intent; requiring the Department of Law Enforcement to
    9              accept certain fingerprints; specifying procedures for
10                 fingerprinting; authorizing the department to exchange
11                 certain records with the Office of Insurance
12                 Regulation; specifying that fingerprints must be
13                 submitted in accordance with certain rules;
14                 authorizing that the fingerprints be submitted through
15                 a third-party vendor authorized by the department;
16                 requiring the department to conduct certain background
17                 checks; requiring that certain fingerprints be
18                 submitted and entered into a specified system;
19                 requiring the office to inform the department of any
20                 person whose fingerprints no longer must be retained;
21                 specifying who bears the costs of fingerprint
22                 processing; specifying that certain criminal records
23                 must be used by the office for certain purposes;
24                 creating s. 624.347, F.S.; providing definitions;
25                 providing applicability; establishing standards for

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        PCS for HB 881                                                                                       2025




26              compensation arrangements and oversight of affiliate
27              transactions involving insurers, managing general
28              agents, and attorneys in fact; providing penalties;
29              requiring the office to adopt rules; amending s.
30              624.424, F.S.; specifying requirements for affiliate
31              compensation arrangements; removing requirements that
32              the office consider a specified factor in determining
33              whether certain affiliate considerations and payments
34              by an insurer are fair and reasonable; amending s.
35              626.854, F.S.; requiring public adjusters, public
36              adjuster apprentices, and public adjusting firms to
37              respond to requests for claims' statuses within a
38              specified timeframe; creating s. 627.4823, F.S.;
39              providing definitions; providing reporting
40              requirements relating to universal life insurance
41              policies; providing applicability; amending s.
42              628.371, F.S.; defining the term "affiliated entity";
43              applying provisions on prohibitions against,
44              limitations on, and authority of insurers relating to
45              dividend payments and distributions to stockholders to
46              affiliated entities; providing requirements for
47              certain approvals of dividends, distributions, and
48              other financial arrangements; creating s. 628.372,
49              F.S.; providing authority of the office over affiliate
50              dividends; providing penalties; requiring the office

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        PCS for HB 881                                                                                       2025




51              to adopt rules; amending s. 629.011, F.S.; revising
52              and providing definitions; amending s. 629.071, F.S.;
53              authorizing assessable and nonassessable reciprocal
54              insurers, rather than domestic reciprocal insurers, to
55              transact insurance if they maintain specified amounts
56              of surplus funds; creating s. 629.082, F.S.; providing
57              that attorneys in fact of reciprocal insurers are
58              affiliated entities for certain purposes; amending s.
59              629.121, F.S.; providing that certain bonds filed with
60              the office as security are filed by attorneys in fact,
61              rather than attorneys, of domestic reciprocal
62              insurers; increasing the bond amount; amending s.
63              629.181, F.S; replacing surplus deposits of
64              subscribers with subscriber contributions; providing
65              limits on subscriber contributions; creating s.
66              629.162, F.S.; authorizing reciprocal insurers to
67              require subscriber contributions; providing disclosure
68              and reporting requirements for subscriber
69              contributions; creating s. 629.163, F.S.; authorizing
70              reciprocal insurers to establish subscriber savings
71              accounts; providing construction; providing
72              requirements for subscriber savings accounts; creating
73              s. 629.164, F.S.; authorizing reciprocal insurers to
74              make distributions to subscribers from subscriber
75              savings accounts; granting to subscribers' advisory

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         PCS for HB 881                                                                                       2025




76               committees sole authority to authorize distributions,
77               subject to prior written approval by the office;
78               providing requirements for reciprocal insurers that
79               prohibit subscribers from receiving distributions for
80               a specified period of time; providing construction;
81               authorizing reciprocal insurers to return to
82               subscribers unused premiums, savings, and credits
83               accruing to their accounts; authorizing domestic
84               reciprocal insurers to pay to their subscribers
85               portions of unassigned funds; providing distribution
86               limits; prohibiting distribution discrimination;
87               providing requirements for distributions and other
88               financial arrangements; amending s. 629.171, F.S.;
89               revising requirements for filing with the office
90               annual statements by reciprocal insurers; providing
91               requirements for filing annual statements of the
92               accounts and records of attorneys in fact; amending s.
93               629.201, F.S.; requiring that each domestic reciprocal
94               insurer have a subscribers' advisory committee;
95               requiring that such committee be formed in compliance
96               with specified laws; requiring that rules and
97               amendments adopted by subscribers have prior approval
98               of the office; revising subscribers' advisory
99               committees' duties and membership; providing for
100              election and terms; requiring that attorneys in fact

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         PCS for HB 881                                                                                       2025




101              provide a communication platform to subscribers under
102              certain circumstances; repealing s. 629.271, F.S.,
103              relating to distribution of savings; amending s.
104              629.291, F.S.; providing that forms filed with the
105              office for plans to merge a reciprocal insurer with
106              another reciprocal insurer or to convert a reciprocal
107              insurer to a stock or mutual insurer are adopted by
108              the Financial Services Commission rather than the
109              office; amending s. 629.301, F.S.; specifying the
110              manner in which impaired reciprocal insurers are
111              proceeded against if they cannot make up deficiencies
112              in assets; specifying the manner in which assessments
113              are levied upon subscribers if reciprocal insurers are
114              liquidated; providing that assessments are subject to
115              specified limits; repealing ss. 629.401 and 629.520,
116              F.S., relating to insurance exchange and the authority
117              of a limited reciprocal insurer, respectively;
118              creating s. 629.56, F.S.; requiring reciprocal
119              insurers to maintain unearned premium reserves at all
120              times; amending s. 624.45, F.S.; conforming a
121              provision to changes made by the act; providing
122              applicability timelines; providing effective dates.
123
124      Be It Enacted by the Legislature of the State of Florida:
125

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         PCS for HB 881                                                                                       2025




126              Section 1.         Paragraph (a) of subsection (4) of section
127      624.155, Florida Statutes, is amended to read:
128              624.155       Civil remedy.—
129              (4)(a)1.          An action for bad faith involving a liability
130      insurance claim, including any such action brought under the
131      common law, may shall not lie if the insurer tenders the lesser
132      of the policy limits or the amount demanded by the claimant
133      within 90 days after receiving actual notice of a claim which is
134      accompanied by sufficient evidence to support the amount of the
135      claim.
136              2.       For purposes of this paragraph, the term "sufficient
137      evidence" means written or photographic evidence submitted to
138      the insurer which indicates that the claimant has suffered
139      personal injury or property damage. Evidence that may satisfy
140      this requirement includes, but is not limited to:
141              a.       Accident reports.
142              b.       Photographs of an accident scene, physical injuries, or
143      property damage.
144              c.       Medical bills.
145              d.       Repair bills.
146              e.       Other receipts or copies of payments rendered.
147              3.       If an insurer does not believe that the submitted
148      evidence is sufficient evidence, the insurer must provide a
149      written notice of objection within 10 business days after
150      receipt of the submitted evidence; otherwise, any objection to

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         PCS for HB 881                                                                                       2025




151      the sufficiency of the evidence for purposes of this paragraph
152      is waived. The submitting party has an additional 10 business
153      days after receipt of a written notice of objection to provide
154      clarification or submit further evidence.
155              Section 2.         Section 624.341, Florida Statutes, is created
156      to read:
157              624.341       Authority of Department of Law Enforcement to
158      accept fingerprints of, and exchange criminal history records
159      with respect to, certain persons applying to the Office of
160      Insurance Regulation.—
161              (1)      The Legislature finds that criminal activity of
162      insurers poses a particular danger to the residents of this
163      state. Floridians rely, in good faith, on the honest conduct of
164      those who issue and manage insurance policies and other
165      insurance instruments in this state. To safeguard this state's
166      residents, the Legislature finds it necessary to ensure that
167      organizers, incorporators, subscribers, officers, employees,
168      contractors, affiliates, stockholders, directors, owners,
169      members, managers, or volunteers of, or any other persons who
170      exercise or have the ability to exercise effective control of,
171      or who influence or have the ability to influence the
172      transaction of the business of, or any other persons involved,
173      directly or indirectly, in the organization, operation, or
174      management of any insurer that is authorized to sell insurance
175      do not have a criminal background.

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         PCS for HB 881                                                                                       2025




176              (2)      The Department of Law Enforcement shall accept and
177      process fingerprints of organizers, incorporators, subscribers,
178      officers, employees, contractors, affiliates, stockholders,
179      directors, owners, members, managers, or volunteers involved,
180      directly or indirectly, in the organization, operation, or
181      management of:
182              (a)      Any insurer or proposed insurer transacting or
183      proposing to transact insurance in this state.
184              (b)      Any other entity that is examined or investigated or
185      that is eligible to be examined or investigated under the
186      Florida Insurance Code.
187              (c)      Any other person or entity subject to licensure under
188      the Florida Insurance Code.
189              (3)      A full set of fingerprints of persons described in
190      subsection (2) must be submitted to the office or to a vendor,
191      an entity, or an agency authorized by s. 943.053(13). The
192      office, vendor, entity, or agency shall forward the fingerprints
193      to the Department of Law Enforcement for state processing, and
194      the Department of Law Enforcement shall forward the fingerprints
195      to the Federal Bureau of Investigation for national processing
196      as described in s. 624.34. Fees for state and federal
197      fingerprint processing must be borne by the person submitting
198      the fingerprints. The state cost for fingerprint processing is
199      as provided in s. 943.053(3)(e).
200              (4)      The Department of Law Enforcement may, to the extent

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         PCS for HB 881                                                                                       2025




201      provided by federal law, exchange state, multistate, and federal
202      criminal history records with the office for the purpose of
203      issuance, denial, suspension, or revocation of a certificate of
204      authority, certification, or license to operate in this state.
205              (5)      Fingerprints for each person described in subsection
206      (2) must be submitted in accordance with rules adopted by the
207      commission.
208              (a)      Fingerprints may be submitted through a third-party
209      vendor authorized by the Department of Law Enforcement.
210              (b)      The Department of Law Enforcement shall conduct the
211      state criminal history background check, and a federal criminal
212      history background check shall be conducted through the Federal
213      Bureau of Investigation.
214              (c)      All fingerprints submitted to the Department of Law
215      Enforcement must be submitted and entered into the statewide
216      automated biometric identification system established in s.
217      943.05(2)(b) and available for use in accordance with s.
218      943.05(2)(g) and (h). The office shall inform the Department of
219      Law Enforcement of any person whose fingerprints are no longer
220      required to be retained.
221              (d)      The costs of fingerprint processing, including the
222      costs of retaining the fingerprints, must be borne by the person
223      subject to the background checks.
224              (e)      The office shall review the results of the state and
225      federal criminal history background checks and determine whether

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         PCS for HB 881                                                                                       2025




226      the applicant meets the requirements for the certificate of
227      authority, certification, or license to operate in this state.
228              (6)      Statewide criminal records obtained through the
229      Department of Law Enforcement, federal criminal records obtained
230      through the Federal Bureau of Investigation, and local criminal
231      records obtained through local law enforcement agencies must be
232      used by the office for the purpose of issuance, denial,
233      suspension, or revocation of certificates of authority,
234      certifications, or licenses to operate in this state.
235              Section 3.         Section 624.347, Florida Statutes, is created
236      to read:
237              624.347       Affiliate transactions; managing general agents;
238      attorneys in fact; oversight.—
239              (1)      DEFINITIONS.—As used in this section, the term:
240              (a)      "Affiliated entity" means any affiliate. The term
241      includes a managing general agent, attorney in fact, and
242      reciprocal insurer when acting in a capacity that involves
243      compensation or contractual arrangements with the insurer.
244              (b)      "Attorney in fact" has the same meaning as in s.
245      629.011.
246              (c)      "Managing general agent" has the same meaning as in s.
247      626.015.
248              (d)      "Reciprocal insurer" has the same meaning as in s.
249      629.011.
250              (2)      APPLICABILITY.—This section applies to any insurer

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         PCS for HB 881                                                                                       2025




251      that contracts with or makes payments to an affiliated entity.
252              (3)       COMPENSATION ARRANGEMENTS WITH AFFILIATED ENTITIES.—
253              (a)       Each insurer doing business in this state which pays,
254      directly or indirectly, a fee, commission, or other financial
255      consideration or payment to any affiliated entity must provide
256      to the office documentation demonstrating that such fee,
257      commission, or other financial consideration or payment is fair
258      and reasonable for each service being provided. In determining
259      whether the fee, commission, or other financial consideration or
260      payment is fair and reasonable, the office must consider all of
261      the following:
262              1.       The actual cost of each service provided by the
263      affiliated entity.
264              2.       The relative financial condition of the insurer and the
265      affiliated entity.
266              3.       The level of debt and how that debt is serviced.
267              4.       The amount and purpose of any dividends or other
268      payments exchanged between the insurer and any affiliated
269      entity, including payments made to or received from the
270      affiliated entity, and any payments between affiliated entities.
271              5.       Whether the terms of the written contract benefit the
272      insurer and are in the best interest of the insurer.
273              6.       Any other information as the office reasonably requires
274      in making the determination.
275              (b)       For each agreement with an affiliated entity in force

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         PCS for HB 881                                                                                       2025




276      on July 1, 2025, each insurer shall provide to the office no
277      later than October 1, 2025, the cost incurred by the affiliated
278      entity to provide each service, the dollar amount charged to the
279      insurer for each service, and the dollar amount of fees
280      forgiven, waived, or reimbursed by the affiliated entity for the
281      2 most recent preceding years. If the total dollar amount
282      charged to the insurer was greater than the total cost to
283      provide services for either year, the insurer must explain how
284      it determined the fee was fair and reasonable. For any proposed
285      contract with an affiliated entity effective after July 1, 2025,
286      the insurer must provide documentation to support that the fee,
287      commission, or other financial consideration or payment to the
288      affiliated entity is fair and reasonable.
289              (c)1.        All compensation arrangements between an insurer and
290      any affiliated entity entered into on or after July 1, 2026,
291      must be structured as fee for service. As used in this
292      subparagraph, the term "fee for service" means fixed amounts or
293      hourly rates for itemized services.
294              2.       Compensation may not be based on:
295              a.       Commission;
296              b.       Premium volume;
297              c.       Underwriting profit; or
298              d.       Financial results of the insurer.
299              (d)       This subsection does not prohibit an insurer from
300      paying a dividend or other financial arrangement to an

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         PCS for HB 881                                                                                       2025




301      affiliated entity if such dividend or financial arrangement is
302      separately reviewed and approved by the office pursuant to this
303      section, s. 628.372, or any other applicable law.
304              (e)      An agreement between an insurer and an affiliated
305      entity must include a termination clause and may not exceed a
306      term of 3 years. Any extension of such an agreement must be
307      approved by the office before becoming effective. An agreement
308      between an insurer and an affiliated entity may include
309      provisions for extension, but may not remain in effect for
310      longer than 3 years without a review pursuant to paragraph (a)
311      and approval by the office. If the agreement provides for
312      extension, the agreement must clearly state that the extension
313      is subject to approval by the office at least every 3 years.
314              (4)      EMERGENCY RESTRICTIONS.—
315              (a)      During a declared emergency, the office may issue
316      orders restricting fund transfers from an insurer to an
317      affiliated entity without prior approval.
318              (b)      Orders under paragraph (a) may apply to all or
319      specified insurers and may not exceed 90 days unless extended by
320      the office.
321              (5)      ADDITIONAL OVERSIGHT.—
322              (a)      Any dividend paid by an insurer to an affiliated
323      entity must be reviewed and approved by the office, regardless
324      of whether the affiliated entity is the insurer's parent,
325      subsidiary, or otherwise related entity.

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         PCS for HB 881                                                                                       2025




326              (b)      The office may recover improper affiliated entity
327      payment transfers, including, but not limited to, both of the
328      following:
329              1.       Transfers that violate the approved compensation,
330      approved dividend, or any other approved financial arrangement.
331              2.       Transfers made while the insurer was undercapitalized.
332              (c)       An insurer must provide notice to the office at least
333      30 days before any pledge of capital or assets to any affiliated
334      entity for a loan or financial obligation. Such notice must
335      include a description of the collateral, the nature of the
336      obligation, and the parties involved. The office may reject and
337      prohibit the pledge if such financial arrangement is not in the
338      best interest of the insurer.
339              (6)       ENFORCEMENT.—
340              (a)       The office may impose penalties for violations of this
341      section.
342              (b)       The office shall adopt rules to implement this
343      section.
344              Section 4.         Subsection (13) of section 624.424, Florida
345      Statutes, is amended to read:
346              624.424        Annual statement and other information.—
347              (13)         Each insurer doing business in this state which pays
348      a fee, commission, or other financial consideration or payment
349      to any affiliate directly or indirectly is required upon request
350      to provide to the office any information the office deems

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         PCS for HB 881                                                                                       2025




351      necessary. The fee, commission, or other financial consideration
352      or payment to any affiliate must be fair and reasonable.
353      Affiliate compensation arrangements must comply with s. 624.347
354      and with the requirements of this subsection In determining
355      whether the fee, commission, or other financial consideration or
356      payment is fair and reasonable, the office shall consider, among
357      other things, the actual cost of the service being provided.
358              Section 5.          Subsection (24) is added to section 626.854,
359      Florida Statutes, to read:
360              626.854         "Public adjuster" defined; prohibitions.—The
361      Legislature finds that it is necessary for the protection of the
362      public to regulate public insurance adjusters and to prevent the
363      unauthorized practice of law.
364              (24)         A public adjuster, public adjuster apprentice, or
365      public adjusting firm shall respond with specific information to
366      a written or electronic request for a claim's status from an
367      insured or claimant or his or her designated representative
368      within 14 days after receipt of the request and shall document
369      the file accordingly.
370              Section 6.          Section 627.4823, Florida Statutes, is created
371      to read:
372              627.4823           Universal life insurance policies.—
373              (1)      As used in this section, the term:
374              (a)      "Cash surrender value" means the net cash surrender
375      value, plus any outstanding amounts as policy loans.

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         PCS for HB 881                                                                                       2025




376              (b)      "Fixed-premium universal life insurance policy" means
377      a universal life insurance policy other than a flexible-premium
378      universal life insurance policy.
379              (c)      "Flexible-premium universal life insurance policy"
380      means a universal life insurance policy that allows the
381      policyowner to vary, independently of each other, the amount of
382      timing of one or more premium payments or the amount of
383      insurance.
384              (d)      "Net cash surrender value" means the maximum amount
385      payable to the policyowner upon surrender.
386              (e)      "Policy value" means the value of any individual life
387      insurance policy, rider, group master policy, or individual
388      certificate, under the provisions of which separately identified
389      interest credits, other than in connection with dividend
390      accumulations, premium deposit funds, or other supplementary
391      accounts, and mortality and expense charges are made to the
392      policy. A universal life insurance policy may provide for other
393      credits and charges, such as charges for the cost of benefits
394      provided by a rider.
395              (f)      "Universal life insurance policy" means any individual
396      life insurance policy, rider, group master policy, or individual
397      certificate, under the provisions of which separately identified
398      interest credits and mortality and expense charges are made to
399      the policy. The policy, rider, or certificate does not apply to
400      policies, riders, group master policies, or individual

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         PCS for HB 881                                                                                       2025




401      certificates in connection with dividend accumulations, premium
402      deposit funds, or other supplementary accounts. A universal life
403      insurance policy may provide for other credits and charges, such
404      as charges for the cost of benefits provided by a rider.
405              (2)(a)       A universal life insurance policy issued in this
406      state must provide that the policyowner will be sent without
407      charge, at least annually, a report that will serve to keep the
408      policyowner advised of the status of the policy. The end date of
409      the current reporting period may not be more than 3 months
410      before the date of the mailing of the report.
411              (b)       The report must include all of the following:
412              1.       The beginning and end dates of the current reporting
413      period.
414              2.       The policy value at the end of the previous reporting
415      period and at the end of the current reporting period.
416              3.       The total amounts, identified by each type, which have
417      been credited or debited to the policy value during the current
418      reporting period.
419              4.       The current death benefit at the end of the current
420      reporting period on each life covered by the policy.
421              5.       The net cash surrender value of the policy as of the
422      end of the current reporting period.
423              6.       The amount of outstanding loans, if any, as of the end
424      of the current reporting period.
425              7.       For a fixed-premium universal life insurance policy,

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         PCS for HB 881                                                                                       2025




426      if, assuming the guaranteed interest, mortality and expense
427      loads, and continued scheduled premium payment, the policy's net
428      cash surrender value is such that it would not maintain
429      insurance in force until the end of the next reporting period, a
430      notice to this effect in the report.
431              8.       For a flexible-premium universal life insurance policy,
432      if, assuming the guaranteed interest and the mortality and
433      expense loads, the policy's net cash surrender value will not
434      maintain insurance in force until the end of the next reporting
435      period unless further premium payments are made, a notice to
436      this effect in the report.
437              9.       For a fixed-premium or flexible-premium universal life
438      insurance policy, if, assuming the guaranteed interest and the
439      mortality and expense loads, the policy's net cash surrender
440      value will not maintain insurance in force until the maturity of
441      the contract, the projected date on which policy values will be
442      insufficient to continue coverage in force.
443              (3)      This section applies to all universal life insurance
444      policies except variable contracts as defined in s. 627.8015.
445              Section 7.         Section 628.371, Florida Statutes, is amended
446      to read:
447              628.371       Dividends to stockholders.—
448              (1)      As used in this section, the term "affiliated entity"
449      has the same meaning as in s. 624.347(1).
450              (2)(1)       A domestic stock insurer or an affiliated entity

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         PCS for HB 881                                                                                       2025




451      shall not pay any dividend or distribute cash or other property
452      to stockholders except out of that part of its available and
453      accumulated surplus funds which is derived from realized net
454      operating profits on its business and net realized capital
455      gains.
456              (3)(2)       Dividend payments or distributions to stockholders,
457      without prior written approval of the office, shall not exceed
458      the larger of:
459              (a)      The lesser of 10 percent of surplus or net gain from
460      operations (life and health companies) or net income (property
461      and casualty companies), not including realized capital gains,
462      plus a 2-year carryforward for property and casualty companies;
463              (b)      Ten percent of surplus, with dividends payable
464      constrained to unassigned funds minus 25 percent of unrealized
465      capital gains;
466              (c)      The lesser of 10 percent of surplus or net investment
467      income (net gain before capital gains for life and health
468      companies) plus a 3-year carryforward (2-year carryforward for
469      life and health companies) with dividends payable constrained to
470      unassigned funds minus 25 percent of unrealized capital gains.
471              (4)(3)       In lieu of the provisions in subsection (3) (2), an
472      insurer or an affiliated entity may pay a dividend or make a
473      distribution without the prior written approval of the office
474      when:
475              (a)      The dividend is equal to or less than the greater of:

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         PCS for HB 881                                                                                       2025




476              1.       Ten percent of the insurer's or the affiliated entity's
477      surplus as to policyholders derived from realized net operating
478      profits on its business and net realized capital gains; or
479              2.       The insurer's or the affiliated entity's entire net
480      operating profits and realized net capital gains derived during
481      the immediately preceding calendar year; and
482              (b)      The insurer or the affiliated entity will have surplus
483      as to policyholders equal to or exceeding 115 percent of the
484      minimum required statutory surplus as to policyholders after the
485      dividend or distribution is made; and
486              (c)      The insurer or the affiliated entity has filed notice
487      with the office at least 10 business days before prior to the
488      dividend payment or distribution, or such shorter period of time
489      as approved by the office on a case-by-case basis. Such notice
490      shall not create a right in the office to approve or disapprove
491      a dividend otherwise properly payable hereunder; and
492              (d)      The notice includes a certification by an officer of
493      the insurer or the affiliated entity attesting that after
494      payment of the dividend or distribution the insurer or the
495      affiliated entity will have at least 115 percent of required
496      statutory surplus as to policyholders.
497              (5)(4)       The office shall not approve a dividend or
498      distribution in excess of the maximum amount allowed in
499      subsection (2) (1) unless, considering the following factors, it
500      determines that the distribution or dividend would not

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         PCS for HB 881                                                                                       2025




501      jeopardize the financial condition of the insurer or the
502      affiliated entity:
503              (a)      The liquidity, quality, and diversification of the
504      insurer's assets and the effect on its ability to meet its
505      obligations.
506              (b)      Reduction of investment portfolio and investment
507      income.
508              (c)      Effects on the written premium to surplus ratios as
509      required by the Florida Insurance Code.
510              (d)      Industrywide financial conditions.
511              (e)      Prior dividend distributions of the insurer or the
512      affiliated entity.
513              (f)      Whether the dividend is only a "pass-through" dividend
514      from a subsidiary of the insurer or the affiliated entity.
515              (6)(5)       A dividend or distribution by a not-for-profit
516      insurance company subsidiary to its mutual insurance holding
517      company, directly or indirectly through one or more intermediate
518      holding companies, pursuant to part III of this chapter, which
519      meets the requirements of this section and which applies to a
520      stock insurer, is permitted under this section.
521              (7)      Approval of a dividend, distribution, or other
522      financial arrangement under this section must comply with the
523      requirements of s. 624.347.
524              Section 8.         Section 628.372, Florida Statutes, is created
525      to read:

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         PCS for HB 881                                                                                       2025




526              628.372       Authority over affiliate dividends.—
527              (1)      The office has oversight and regulatory authority over
528      the issuance of dividends or other financial arrangements paid
529      to an affiliate.
530              (2)      There may be no declaration or distribution of such
531      dividends or other financial arrangements without prior approval
532      of the office.
533              (3)      Dividends and other financial arrangements must comply
534      with the requirements of s. 624.347.
535              (4)      Any unauthorized dividend, distribution, or other
536      financial arrangement may result in penalties determined by the
537      office.
538              (5)      The office must adopt rules to implement this section.
539              Section 9.         Subsection (5) of section 629.011, Florida
540      Statutes, is amended, and subsections (6), (7), and (8) are
541      added to that section, to read:
542              629.011       Definitions.—As used in this part, the term:
543              (4)      "Distribution" means any transfer of money from the
544      reciprocal insurer to subscribers other than for the payment of
545      a claim, settlement of a legal dispute, or return of principle.
546              (6)(5)       "Reciprocal insurer" means an unincorporated
547      aggregation of subscribers operating individually and
548      collectively through an attorney in fact to provide reciprocal
549      insurance among themselves.
550              (a)      An assessable reciprocal insurer is a reciprocal

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         PCS for HB 881                                                                                       2025




551      insurer that is able to levy an assessment on its subscribers to
552      make up any shortfall in capital and surplus to cover claims and
553      expenses as specified in s. 629.231.
554              (b)      A nonassessable reciprocal insurer is a reciprocal
555      insurer authorized under s. 629.091(3) or s. 629.291(5) to issue
556      policies where there is no recourse against subscribers for any
557      shortfall in capital and surplus to cover claims and expenses.
558              (7)      "Subscriber contribution" means any transfer of money
559      by a subscriber of a reciprocal insurer to the reciprocal
560      insurer in excess of the premium approved by the office, when
561      such money is counted as surplus for the reciprocal insurer or
562      used to pay surplus notes.
563              (8)      "Subscriber savings account" means any account in
564      which a reciprocal insurer assigns money for the benefit of an
565      individual subscriber, other than accounts holding money for the
566      payment of a specific claim by or settlement of a specific legal
567      dispute with that individual subscriber.
568              (9)      "Subscribers' advisory committee" means the committee
569      of a domestic reciprocal insurer which is formed in compliance
570      with s. 629.201 and represents the interests of the subscribers.
571              Section 10.           Section 629.071, Florida Statutes, is amended
572      to read:
573              629.071       Surplus funds required.—
574              (1)      An assessable A domestic reciprocal insurer hereunder
575      formed, if it has otherwise complied with the applicable

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         PCS for HB 881                                                                                       2025




576      provisions of this code, may be authorized to transact insurance
577      if it has and thereafter maintains surplus funds of not less
578      than $3 million $250,000.
579              (2)      A nonassessable reciprocal insurer, if it has
580      otherwise complied with the applicable provisions of this code,
581      may be authorized to transact insurance if it has and thereafter
582      maintains a surplus as to policyholders which is equal to that
583      required under s. 624.408 for a domestic stock insurer
584      authorized to transact like kinds of insurance In addition to
585      the surplus required to be maintained under subsection (1), the
586      insurer shall have, when first so authorized, an expendable
587      surplus of not less than $750,000.
588              Section 11.           Section 629.082, Florida Statutes, is created
589      to read:
590              629.082       Reciprocal affiliates.—The attorney in fact of a
591      reciprocal insurer is an affiliated entity of the reciprocal
592      insurer for purposes of ss. 624.10 and 624.347.
593              Section 12.           Section 629.121, Florida Statutes, is amended
594      to read:
595              629.121       Attorney in fact Attorney's bond.—
596              (1)      Concurrently with the filing of the declaration
597      provided for in s. 629.081, the attorney in fact of a domestic
598      reciprocal insurer shall file with the office a bond in favor of
599      this state for the benefit of all persons damaged as a result of
600      breach by the attorney in fact of the conditions of his or her

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         PCS for HB 881                                                                                       2025




601      bond as set forth in subsection (2). The bond shall be executed
602      by the attorney in fact and by an authorized corporate surety
603      and shall be subject to the approval of the office.
604              (2)      The bond shall be in the sum of $300,000 $100,000,
605      aggregate in form, the bond conditioned that the attorney in
606      fact will faithfully account for all moneys and other property
607      of the insurer coming into his or her hands, and that he or she
608      will not withdraw or appropriate to his or her own use from the
609      funds of the insurer any moneys or property to which he or she
610      is not entitled under the power of attorney.
611              (3)      The bond shall provide that it is not subject to
612      cancellation unless 30 days' advance notice in writing of
613      cancellation is given to both the attorney in fact and the
614      office.
615              Section 13.           Section 629.162, Florida Statutes, is created
616      to read:
617              629.162       Subscriber contributions.—
618              (1)      Reciprocal insurers may, subject to prior approval by
619      the office, require contributions from subscribers in addition
620      to premiums approved by the office.
621              (2)      A reciprocal insurer shall clearly disclose required
622      subscriber contributions on the declarations page of any policy
623      issued by the reciprocal insurer, separate from any cost
624      associated with the premium.
625              (3)      Reciprocal insurers must provide subscribers an annual

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         PCS for HB 881                                                                                       2025




626      report detailing how each dollar of subscriber contributions was
627      allocated or spent.
628              Section 14.           Section 629.163, Florida Statutes, is created
629      to read:
630              629.163       Subscriber savings accounts.—
631              (1)      Reciprocal insurers may establish subscriber savings
632      accounts.
633              (2)      Moneys assigned to subscriber savings accounts are not
634      considered distributions under s. 629.164.
635              (3)      Subscriber savings accounts are subject to the
636      following requirements:
637              (a)      Reciprocal insurers must inform each subscriber, in
638      writing, of the limitations and restrictions imposed upon the
639      use or possession of moneys assigned to subscriber savings
640      accounts.
641              (b)      Reciprocal insurers must inform each subscriber, in
642      writing, of the procedures used to assign moneys to subscriber
643      savings accounts and any calculations used to determine the
644      amount of moneys to be assigned to subscriber savings accounts.
645              (c)      Advertisements marketing the benefits of subscriber
646      savings accounts must note the limitations and restrictions
647      imposed upon the use or possession of moneys assigned to
648      subscriber savings accounts.
649              (d)      Upon cancellation or nonrenewal of a subscriber's
650      policy or policies, the subscriber is entitled, within 60 days,

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         PCS for HB 881                                                                                       2025




651      to all moneys assigned to the subscriber's savings account,
652      except when such moneys are otherwise allocated by law or
653      contract, or when such assignment is prohibited by order of the
654      office.
655              Section 15.           Section 629.164, Florida Statutes, is created
656      to read:
657              629.164       Subscriber distributions.—
658              (1)      Reciprocal insurers may make distributions to
659      subscribers from their subscriber savings accounts.
660              (2)      The subscribers' advisory committee has the sole
661      authority to authorize distributions, subject to prior written
662      approval by the office.
663              (3)      Any reciprocal insurer that otherwise authorizes
664      distributions but prohibits subscribers from receiving
665      distributions for a specified period of time, including after
666      initial subscription, must renew the subscriber's policy for
667      that period of time plus 1 additional policy year. This
668      subsection does not prohibit the cancellation or nonrenewal of a
669      policy pursuant to s. 624.4133 or by order of the office.
670              (4)      A reciprocal insurer may return to its subscribers any
671      unused premiums, savings, or credits accruing to their accounts.
672      Such distribution may not unfairly discriminate between classes
673      of risks or policies, or between subscribers, but may vary as to
674      classes of subscribers based on the experience of the classes.
675              (5)      In addition to the option provided in subsection (4),

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         PCS for HB 881                                                                                       2025




676      a domestic reciprocal insurer may, upon the prior written
677      approval of the office, pay to its subscribers a portion of
678      unassigned funds of up to 10 percent of surplus, with
679      distribution limited to 50 percent of net income from the
680      previous calendar year. Such distribution may not unfairly
681      discriminate between classes of risks or policies, or between
682      subscribers, but may vary as to classes of subscribers based on
683      the experience of the classes.
684              (6)      Distributions and other financial arrangements must
685      comply with the requirements of s. 624.347.
686              Section 16.           Section 629.171, Florida Statutes, is amended
687      to read:
688              629.171       Annual statement.—
689              (1)      The subscribers' advisory committee shall procure an
690      audited annual statement of the accounts and records of the
691      insurer and the attorney in fact. The statement of the insurer
692      must be prepared by an independent auditor at the expense of the
693      reciprocal insurer and must be available for inspection by any
694      subscriber. The statement of the attorney in fact must be
695      prepared by an independent auditor at the expense of the
696      attorney in fact.
697              (2)(1)       The annual statement filing of a reciprocal insurer
698      must shall be submitted made and filed by its attorney in fact.
699              (3)(2)       The audited statement of the attorney in fact must
700      shall be submitted with the annual statement filing of the

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         PCS for HB 881                                                                                       2025




701      reciprocal insurer, as required under s. 624.424, and
702      supplemented by such information as may be required by the
703      office relative to the affairs and transactions of the attorney
704      in fact relating insofar as they relate to the reciprocal
705      insurer.
706              Section 17.           Section 629.201, Florida Statutes, is amended
707      to read:
708              629.201       Subscribers' advisory committee.—Each domestic
709      reciprocal insurer must have a subscribers' advisory committee
710      representing the interests of the subscribers.
711              (1)      The subscribers' advisory committee of a domestic
712      reciprocal insurer exercising the subscribers' rights must shall
713      be formed in compliance with this section and selected under
714      such rules as the subscribers adopt. Such rules, along with any
715      amendments, must be approved by the office before becoming
716      effective.
717              (2)      Not less than two-thirds of such committee shall be
718      subscribers other than the attorney, or any person employed by,
719      representing, or having a financial interest in the attorney.
720              (2)(3)       The subscribers' advisory committee shall perform
721      all of the following duties:
722              (a)      Supervise the finances of the insurer.;
723              (b)      Supervise the insurer's operations to such extent as
724      to ensure assure conformity with the subscribers' agreement, and
725      power of attorney, and other governing documents.;

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         PCS for HB 881                                                                                       2025




726              (c)      Hire independent auditors, counsel, and other experts
727      at the expense of the insurer as necessary to fulfill the
728      committee's duties. Procure the audit of the accounts and
729      records of the insurer and of the attorney at the expense of the
730      insurer; and
731              (d)      Exercise any Have such additional powers and functions
732      as may be conferred by the subscribers' agreement.
733              (3)      The initial subscribers' advisory committee must be
734      appointed by the original subscribers or the attorney in fact.
735      Within 6 months after the reciprocal insurer is authorized to
736      transact insurance, at least two-thirds of the committee members
737      must be elected as provided for in subsections (4) and (5).
738              (4)      The subscribers' advisory committee must consist of
739      subscribers of the domestic reciprocal insurer. At least two-
740      thirds of the subscribers' advisory committee must be composed
741      of subscribers who are independent of, not employed by, not
742      representing, not selected by, and without any financial
743      interest in the attorney in fact. The independent subscribers
744      must be elected by the subscribers of the domestic reciprocal
745      insurer.
746              (5)      Any rules governing the election of subscribers to the
747      subscribers' advisory committee must require all of the
748      following:
749              (a)      An electorate composed exclusively of all subscribers
750      of the reciprocal insurer.

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         PCS for HB 881                                                                                       2025




751              (b)      Terms of not more than 5 years.
752              (c)      A process that allows subscribers to nominate other
753      subscribers for election to the subscribers' advisory committee.
754              (6)      If a reciprocal insurer has more than 50 subscribers,
755      the attorney in fact must provide a platform by which
756      subscribers can communicate with each other regarding the
757      subscribers' advisory committee election process.
758              Section 18.           Subsection (1) of section 629.181, Florida
759      Statutes, is amended to read:
760              629.181       Financial condition; method of determining.—In
761      determining the financial condition of a reciprocal insurer, the
762      office shall apply the following rules:
763              (1)      Subscriber contributions are The surplus deposits of
764      subscribers shall be allowed as assets, except that any premium
765      deposits delinquent for 90 days must shall first be charged
766      against such subscriber contributions. Subscriber contributions
767      may not exceed 2 percent of each individual subscribers' policy
768      premium for a nonassessable reciprocal insurer and 10 percent of
769      each individual subscribers' policy premium for an assessable
770      reciprocal insurer surplus deposit.
771              Section 19.           Section 629.271, Florida Statutes, is
772      repealed.
773              Section 20.           Effective upon this act becoming a law,
774      subsections (1) and (2) of section 629.291, Florida Statutes,
775      are amended to read:

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         PCS for HB 881                                                                                       2025




776              629.291       Merger or conversion.—
777              (1)      A reciprocal insurer, upon affirmative vote of not
778      less than two-thirds of its subscribers who vote on such merger
779      or conversion pursuant to due notice, and subject to approval by
780      the office of the terms therefor, may merge with another
781      reciprocal insurer or be converted to a stock or mutual insurer,
782      to be thereafter governed by the applicable sections of the
783      Florida Insurance Code. However, a domestic stock insurer may
784      not convert to a reciprocal insurer.
785              (2)      A plan to merge a reciprocal insurer with another
786      reciprocal insurer or for conversion of the reciprocal insurer
787      to a stock or mutual insurer must be filed with the office on
788      forms adopted by the commission office and must contain such
789      information as the office reasonably requires to evaluate the
790      transaction.
791              Section 21.           Section 629.301, Florida Statutes, is amended
792      to read:
793              629.301       Impaired reciprocal insurers.—
794              (1)      If the assets of a domestic reciprocal insurer are at
795      any time insufficient to discharge its liabilities, other than
796      any liability on account of funds contributed by the attorney in
797      fact or others, and to maintain the required surplus, its
798      attorney in fact shall forthwith make up the deficiency or levy
799      an assessment upon the subscribers for the amount needed to make
800      up the deficiency, but subject to the limitation set forth in

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         PCS for HB 881                                                                                       2025




801      the power of attorney or policy.
802              (2)      If the attorney in fact fails to make up such
803      deficiency or to make the assessment within 30 days after the
804      office orders the attorney in fact him or her to do so, or if
805      the deficiency is not fully made up within 60 days after the
806      date the assessment was made, the insurer shall be deemed
807      insolvent and shall be proceeded against in the same manner as
808      any other insurer under chapter 631 and the insurance as
809      authorized by this code.
810              (3)      If liquidation of a reciprocal such an insurer is
811      ordered, the receiver shall levy an assessment shall be levied
812      upon the subscribers an assessment for such an amount as the
813      receiver determines to be necessary to discharge all liabilities
814      of the insurer. The liabilities must be, subject to limits as
815      provided by this chapter, as the office determines to be
816      necessary to discharge all liabilities of the insurer, exclusive
817      of any funds contributed by the attorney in fact or other
818      persons, but inclusive of including the reasonable cost of the
819      liquidation. The assessment is subject to any limits set forth
820      in the power of attorney, the subscribers’ agreement, the
821      policy, or this chapter.
822              Section 22.           Section 629.401, Florida Statutes, is
823      repealed.
824              Section 23.           Section 629.520, Florida Statutes, is
825      repealed.

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         PCS for HB 881                                                                                       2025




826              Section 24.           Section 629.56, Florida Statutes, is created
827      to read:
828              629.56       Unearned premium reserves.—A reciprocal insurer
829      must maintain an unearned premium reserve at all times and as
830      required under s. 625.051.
831              Section 25.           Subsection (2) of section 624.45, Florida
832      Statutes, is amended to read:
833              624.45       Participation of financial institutions in
834      reinsurance and in insurance exchanges.—Subject to applicable
835      laws relating to financial institutions and to any other
836      applicable provision of the Florida Insurance Code, any
837      financial institution or aggregation of such institutions may:
838              (2)      Participate, directly or indirectly, as an
839      underwriting member or as an investor in an underwriting member
840      of any insurance exchange authorized in accordance with s.
841      629.401, which underwriting member transacts only aggregate or
842      specific excess insurance over underlying self-insurance
843      coverage for self-insurance organizations authorized under the
844      Florida Insurance Code, for multiple-employer welfare
845      arrangements, or for workers' compensation self-insurance
846      trusts, in addition to any reinsurance the underwriting member
847      may transact.
848
849      Nothing in this section shall be deemed to prohibit a financial
850      institution from engaging in any presently authorized insurance

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         PCS for HB 881                                                                                       2025




851      activity.
852              Section 26.           Reciprocal insurers licensed before July 1,
853      2025, have until July 1, 2026, to comply with the changes made
854      to subscribers' advisory committees in s. 629.201, Florida
855      Statutes. Reciprocal insurers licensed before July 1, 2025, have
856      until July 1, 2027, to comply with the unearned premium reserve
857      requirements imposed under s. 629.56, Florida Statutes.
858              Section 27.           Except as otherwise expressly provided in this
859      act and except for this section, which shall take effect upon
860      this act becoming a law, this act shall take effect July 1,
861      2025.




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PCS for HB 1429
                                     FLORIDA HOUSE OF REPRESENTATIVES
                                               BILL ANALYSIS
       This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: PCS for HB 1429                             COMPANION BILL: CS/SB 1656 (Collins)
TITLE: Insurance Regulations                        LINKED BILLS: None
SPONSOR(S): Insurance & Banking Subcommittee        RELATED BILLS: None
Committee References
                                    Orig. Comm.: Insurance & Banking


SUMMARY
Effect of the Bill:
The bill addresses several matters related to the regulation of insurance in Florida. Specifically, the bill:
    Requires background checks for key insurance personnel and authorizes the Florida Department of Law
        Enforcement (FDLE) to process fingerprints.
    Requires fair, documented affiliate compensation; mandates fee-for-service model by July 2026; requires
        the Office of Insurance Regulation (OIR) approval for payments, dividends, and capital transfers to affiliates.
    Requires all affiliate payments to comply with new standards.
    Limits “use and file” rate filings to three per policy period for residential property insurers and one per
        policy period for private passenger auto insurers.
    Requires consumer-friendly rate transparency reports for property insurers beginning January 1, 2026.
    Requires full rate filings after two years of certification for residential property and private passenger auto.
    Mandates the Office of Insurance Regulation (OIR) to maintain an educational website.
    Provides certain data do not constitute trade secrets qualifying for exemption from public records.
    Overhauls rules for reciprocal insurers, including governance, surplus, and subscriber disclosures.
    Mandates cybersecurity rules for consumer insurance data.
    Allows Citizens policyholders to choose if they want to resolve disputes by arbitration through the Florida
        Division of Administrative Hearings (DOAH).
    Creates a statewide mitigation inspection database.

Fiscal or Economic Impact:
The bill will have an indeterminate fiscal impact.


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ANALYSIS
EFFECT OF THE BILL:
The bill addresses several matters related to the regulation of insurance in Florida, as discussed in detail below.

Background Checks (Section 1).
The bill authorizes the FDLE to accept and process fingerprints and exchange criminal history records for
individuals involved in the insurance industry. The bill requires background checks for a wide range of persons
associated with insurers or insurance-related entities, including organizers, officers, employees, contractors, and
others who may influence or control insurance operations. Fingerprints must be submitted to the OIR or an
authorized vendor and will be processed by both the FDLE and the Federal Bureau of Investigation. The results of
the background checks will be used by the OIR to determine whether individuals meet eligibility requirements for
licensure, certification, or authority to operate under the Florida Insurance Code. The bill also provides procedures
for submission, retention, and cost responsibilities associated with fingerprint processing and background checks.
(Section 2).

STORAGE NAME: PCS1429.IBS
DATE: 4/2/2025
                                                                                                                                             1
Affiliate Transaction Oversight (Section 2 and Section 3 and Section 11 and Section 12).
The bill provides increased regulatory oversight of financial transactions between insurers and affiliated entities,
including managing general agents (MGAs), attorneys in fact, and reciprocal insurers. The bill applies to any
insurer that contracts with or makes payments to such entities and establishes requirements to ensure those
payments are fair, reasonable, and in the insurer’s best interest.

The bill defines key terms, including "affiliated entity," which broadly includes affiliates, MGAs, attorneys in fact,
and reciprocal insurers involved in compensation or contractual arrangements with the insurer.

The bill requires insurers to submit documentation to the OIR demonstrating that all fees, commissions, or
payments to affiliated entities are fair and reasonable for each service provided. The OIR must evaluate this using
specified factors, including the actual cost of services, financial condition of the parties, debt levels, dividends or
payments exchanged, and whether the contract terms benefit the insurer.

For all agreements in effect on July 1, 2025, insurers must report by October 1, 2025, the costs incurred by
affiliates, amounts charged to the insurer, and any fees forgiven or reimbursed over the past two years. If charges
exceed costs, insurers must justify how the fees are fair and reasonable. New contracts after that date must include
similar documentation before becoming effective.

Beginning July 1, 2026, all compensation arrangements must follow a fee-for-service model, meaning fixed or
hourly rates for itemized services. Compensation may not be based on commissions, premium volume,
underwriting profits, or financial performance of the insurer. Dividends or other financial arrangements with
affiliates are still allowed but must be separately reviewed and approved by the OIR.

The bill also provides that:
    All agreements with affiliated entities must include a termination clause and may not exceed three years
        without undergoing review and reapproval by the OIR.
    The OIR must be notified at least 30 days in advance before an insurer pledges capital or assets to an
        affiliate, and the OIR may prohibit such arrangements if not in the insurer’s best interest.
    During a declared emergency, the OIR may issue orders restricting transfers of funds to affiliates without
        prior approval, for up to 90 days, with extensions allowed.
    All dividends paid to affiliates, regardless of relationship, must be approved by the OIR.
    The OIR may recover improper transfers, including those made in violation of approved arrangements or
        while the insurer was undercapitalized.

Finally, the bill authorizes the OIR to impose penalties for violations of these requirements and requires the
Financial Services Commission to adopt rules to implement these provisions. (Section 2).

Application of Dividend Requirements to Affiliated Entities
The bill expands dividend restrictions and requirements currently applicable to domestic stock insurers to include
application to affiliated entities. Additionally, the bill requires that any approval of a dividend, distribution, or
other financial arrangement comply with the affiliate transaction oversight provisions created in the bill. (Section
11).

Authority Over Affiliate Dividends
The bill gives the OIR express oversight and regulatory authority over dividends and other financial arrangements
paid to affiliates. The bill prohibits the declaration or distribution of such payments without prior approval from
the OIR. It also requires that all affiliate dividends and financial arrangements comply with the affiliate transaction
oversight provisions created in the bill. The bill authorizes the OIR to impose penalties for unauthorized
transactions and directs the OIR to adopt rules to implement the section. (Section 12).

Affiliate Compensation Compliance
The bill requires that affiliate compensation arrangements comply with the provisions created in the bill, in
addition to the existing requirement that such payments be fair and reasonable. (Section 3).


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Reciprocal affiliates
The bill specifies that the attorney in fact of a reciprocal insurer is considered an affiliated entity of the reciprocal
for purposes of section 624.10, F.S., and the affiliated entity. Provisions created in the bill apply to reciprocal
affiliates. (Section 16).

Insurance Consumer Data Security (Section 4).

The bill requires covered entities to report data breach incidents to OIR. Covered entities are defined as those
acting as insurers, transacting insurance, or otherwise engaging in insurance activities in Florida, including entities
licensed under ch. 641, F.S. The bill defines “breach of security” (breach) as unauthorized access of data in
electronic form containing personal information. Good faith access of personal information by an employee or
agent of the covered entity does not constitute a breach of security, provided that the information is not used for a
purpose unrelated to the business or subject to further unauthorized use. The bill specifies that it does not create a
private cause of action.

The bill also directs OIR and the Financial Services Commission to adopt rules relating to the cybersecurity of
consumer nonpublic insurance data provided that such rules are not more restrictive than the National Association
of Insurance Commissioners (NAIC) Data Security Model Law, adopted as of 2017 and amendments thereto. The
rules must:
     Apply not only to all entities engaging in insurance activities, but also to any entity that has been contracted
        to maintain, store, or process personal information on behalf of a covered entity.
     Require the development and implementation of an information security program as defined in the model
        law.
     Require investigation and notification of a cybersecurity event as required under the model law.
     Require that each insurer submit to the Department of Financial Services or OIR all or part of the
        information required to be reported to the department or OIR in a computer-readable form compatible
        with the electronic data processing system of the department or office.
     Require that OIR be copied on any notice provided to the Attorney General under s. 501.171, F.S.

The bill also provides that upon OIR receiving information under this section, it must review the information and
may initiate an examination or investigation under s. 624.316, F.S., s. 624.3161, F.S., or s. 626.8828, F.S.

Filing Requirements (Section 5, Section 7, and Section 8).
The bill provides that personal residential property insurers may not submit more than three “use and file” filings
affecting policyholders within a single policy period, unless the filing is exclusively related to reinsurance. (Section
5).

The bill provides that a full rate filing is required for residential property and private passenger auto insurance
after two consecutive years of certification of the insurer’s existing rate by an actuary under s. 627.0645(3)(b), F.S.
(Section 7).

The bill provides that motor vehicles insurers may not submit more than one “use and file” filing affecting
policyholders within a single policy period. (Section 8).

Residential Property Insurance Rate Transparency Reports (Section 6).
The bill requires every rate filing requesting a rate change for residential property coverage from a property
insurer to include a rate transparency report beginning January 1, 2026. Insurers must include such reports with
every offer of coverage and renewal to aid consumers. The format for rate transparency reports must be
prescribed in a uniform manner by the Financial Services Commission.

The bill provides that the rate transparency report must include the following categories of the book or program at
the cumulative level. An estimated percentage of the influence of each listed factor must be provided to equal 100
percent:
     The percentage of the total rate factor associated with the cost of reinsurance;
     The percentage of the total rate factor associated with the cost of claims;

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                                                                                                                            3
       The percentage of the total rate factor associated with the defense containment and costs;
       The percentage of the total rate factor associated with fees and commissions;
       The percentage of the rate factor associated with profit and contingency of the insurer;
       Any other categories deemed necessary by the office or commission.

The bill requires that the rate transparency report must include:
    Any major adverse findings by the office for the previous three calendar years.
    Whether the insurer uses affiliated entities or perform functions of the insurer.
    Contact information, to include a phone number, hours of service, and email address for Division of
        Consumer Services of the Department of Financial Services.
    Contact information for the Office of Insurance Regulation.
    The address for the website for public access to rate filing and affiliate information that this bill requires to
        be made available.
    Any changes in the total insured value from the last policy period.

OIR must define terms used with the rate transparency reports in concise and plain language to aid consumers.

Public Web Access to Rate Filing Information (Section 6).
The bill directs OIR to establish and maintain a comprehensive resource center on its website that uses plain
language to aid consumers in their understanding of insurance. It must include substantive information on current
and historical insurance market dynamics, data concerning the financial condition and market conduct of insurers,
and choices available to consumers. The website must include the following at minimum:
     Reports, utilizing graphical information wherever possible, outlining information about the state of the
        market and adverse and positive trends affecting it.
     Tools that aid consumers in finding insurers.
     Tools that aid consumers in their determination of the coverages beneficial to them.
     Information about mitigation credits and the My Safe Florida Home program as well as other credits
        insurers may offer beyond wind mitigation.
     Access to the rate transparency report, annual statements, market conduct information, and other
        information related to each insurer.
     Information on the Citizens Property Insurance Corporation takeout process, the clearinghouse, and
        general information as reported by OIR.
     With respect to any residential property rate filing:
            o The overall rate change requested by the insurer.
            o The rate change approved by OIR along with all of the actuary’s assumptions and recommendations
                 forming the basis of OIR’s decision.
            o Certification by OIR’s actuary that, based on the actuary’s knowledge, his or her recommendations
                 are consistent with accepted actuarial principles.
            o Whether the insurer utilizes affiliated entities to performance administrative, claims handling, or
                 other functions of the insurer and if so, the total percentage of direct written premium paid to the
                 affiliated entities by the insurer in the preceding annual calendar year.

The bill provides that the following data are not trade secrets as defined in s. 688.002, F.S., or s. 812.081(1), F.S.,
and is therefore not subject to the public records exemption for trade secrets provided in s. 119.0715, F.S., or s.
624.4213, F.S.
     The statewide average requested rate change and final approved statewide average rate change within a
        filing.
     County rating examples submitted to OIR through the rate collection system for the purposes of displaying
        rates on the OIR website.
By providing that the data are not trade secrets, it can be shared with consumers.

Citizens Arbitration Procedures (Section 9).
The bill authorizes Citizens Property Insurance Corporation (Citizens) to offer policyholders the option to resolve
claim disputes through arbitration proceedings before the Division of Administrative Hearings (DOAH). While

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                                                                                                                          4
current law allows Citizens to use DOAH, the bill clarifies that this option can be offered directly to insureds in
policy forms.

At issuance or renewal, Citizens may use forms that let insureds elect DOAH arbitration for disputes involving
coverage, scope, or value of a claim. The insured must be given written notice of this option and indicate their
choice by marking “ACCEPT” or “DECLINE” on a boldfaced 12-point disclosure immediately before the insured’s
signing. The selection applies for the entire policy term.

Uniform Mitigation Verification Inspection Form Database (Section 10).
The bill provides for OIR to contract with a Florida public university to design, operate, upgrade, and maintain a
statewide database for uniform mitigation verification inspection forms to be operated by OIR for the collection
and evaluation of mitigation features on residential property in the state.

The bill provides that beginning January 1, 2026, insurers must file an electronic copy of uniform mitigation
verification inspection forms submitted by policyholders in the database within 15 days of receipt in an electronic
format prescribed by OIR. The Financial Services Commission must adopt rules to implement these provisions.

Reciprocal Insurers (Sections 13 through 31).
The bill modifies the definition of a reciprocal insurer to include two new classes: assessable reciprocal insurers
and non-assessable reciprocal insurers. (Section 13).

Assessable and Non-Assessable Reciprocal Insurers
The bill amends the surplus funds required for a reciprocal insurer, with such requirements differing based on
whether the reciprocal is assessable or non-assessable. Current law requires reciprocal insurers to have $750,000
in expendable surplus when first authorized, and to maintain $250,000 in surplus funds. Under the bill:
     Assessable reciprocal insurers must have and maintain surplus funds of at least $3 million to transact
        insurance.
     Non-assessable reciprocal insurers are subject to the surplus required under 624.408, F.S., for a domestic
        stock insurer authorized to transact like kinds of insurance. (Section 14).

Attorney in Fact Bond
The bill increases the bond amount required for an attorney in fact of a domestic reciprocal insurer from $100,000
to $300,000 and clarifies that the bond must be in favor of the state for the benefit of all persons damaged by a
breach of the bond conditions. (Section 18).

Subscriber Advisory Committee
The bill revises the structure and governance requirements for subscribers’ advisory committees1 of reciprocal
insurers. It requires each reciprocal insurer to establish a subscribers’ advisory committee that represents the
interests of its subscribers, with governing rules and any amendments subject to approval by the OIR.

The bill expands the committee’s duties to include supervising the insurer’s operations for compliance with all
governing documents and authorizes the committee to hire independent professionals at the insurer’s expense.
The initial committee must be appointed by the original subscribers or the attorney in fact.

At least two-thirds of the committee must be independent subscribers who are not affiliated with the attorney in
fact. These members must be elected by the subscribers within six months of the insurer receiving its certificate of
authority. The bill also requires reciprocal insurers with more than 50 subscribers to provide a platform that
enables subscribers to communicate with one another about the election process. (Section 24).

Subscriber Contributions
The bill authorizes reciprocal insurers to require subscriber contributions2 in addition to premiums, subject to
prior approval by the OIR. The bill requires reciprocal insurers to clearly disclose such contributions on the


1 Subscribers' advisory committee means the committee of a domestic reciprocal insurer which is formed in compliance with s. 629.201 and

represents the interests of the subscribers.

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                                                                                                                                       5
declarations page of the policy and to provide subscribers with an annual report detailing how each dollar of the
contribution was allocated or spent. (Section 19).

Subscriber contributions may not exceed 2 percent of each individual subscribers’ policy premium for a
nonassessable reciprocal insurer and 10 percent of each individual subscribers’ policy premium for an assessable
reciprocal insurer. Subscriber contributions are allowed as assets for the purposes of determining the reciprocal’s
financial condition, except that any premium deposits delinquent for 90 days will first be charged against such
subscriber contributions. (Section 23).

Subscriber Savings Accounts
The bill authorizes reciprocal insurers to establish subscriber savings accounts 3 and sets requirements for their
use and disclosure. The bill requires insurers to inform subscribers in writing about limitations, restrictions,
distribution procedures, and calculation methods. Additionally, the bill requires that advertisements disclose
limitations and provides that, upon policy cancellation or nonrenewal, subscribers are entitled to the funds in their
accounts unless otherwise restricted by law, contract, or regulatory order. (Section 20).

Subscriber Distributions
The bill authorizes to make distributions4 to subscribers from their subscriber savings accounts. The subscribers’
advisory committee shall have sole authority to authorize distributions, subject to prior the OIR approval. Any
reciprocal that otherwise authorizes distributions but prohibits subscribers from receiving distributions for a
specified period of time, including after initial subscription, must renew the subscriber’s policy for that period of
time plus 1 additional policy year. This does not prohibit the cancellation or nonrenewal of a policy pursuant to
624.4133, F.S., or by the OIR order.

The bill provides that a reciprocal insurer may return to its subscribers any unused premiums, savings, or credits
accruing to their accounts. Such distribution may not unfairly discriminate between classes of risks or policies, or
between subscribers, but may vary as to classes of subscribers based on the experience of the classes.

The bill provides that a domestic reciprocal insurer may, upon prior written OIR approval, pay to its subscribers a
portion of unassigned funds of up to 10 percent of surplus, with distribution limited to 50 percent of net income
from the previous calendar year. Such distribution may not unfairly discriminate between classes of risks or
policies, or between subscribers, but may vary as to classes of subscribers based on the experience of the classes.
(Section 21).

Annual Statement
The bill specifies that the annual statement procured by the subscribers advisory committee must be an audited
annual statement of the accounts and records of the insurer and the attorney in fact. The bill provides that:
    The insurer’s statement must be prepared by an independent auditor at the insurer’s expense, and made
        available for inspection by any subscriber, and filed by the attorney in fact.
    The statement of the attorney in fact must be prepared by an independent auditor at the expense of the
        attorney in fact, and filed with the annual statement of the reciprocal. (Section 22).

Repealed Provisions Related to Reciprocal Insurers
The bill repeals several provisions of ch. 629, F.S., relating to reciprocal insurers, including
    629.271, F.S. This section is effectively replaced by the bill’s subscriber distributions provision. (Section
        25).
    629.401, F.S. Removes a cross reference to a repealed statute. (Section 28).
    629.520, F.S. (Section 29).

2 Subscriber contribution means any transfer of money by a subscriber of a reciprocal insurer to the reciprocal insurer in excess of the

premium approved by the office, when such money is counted as surplus for the reciprocal insurer or used to pay surplus notes.
3 Subscriber savings account means any account in which a reciprocal insurer assigns money for the benefit of an individual subscriber,

other than accounts holding money for the payment of a specific claim by or settlement of a specific legal dispute with that individual
subscriber.
4 Distribution means any transfer of money from the reciprocal insurer to subscribers other than for the payment of a claim, settlement of a

legal dispute, or return of principle.

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Merger or Conversion
The bill makes two technical changes regarding reciprocal insurers merger or conversion.
     The Financial Services Commission, rather than the OIR, will provide the appropriate legal forms for
         merging reciprocals or conversion into a stock or mutual insurer.
     Clarifies language in statute to make it clearer that the provision is applicable in the case of either merger
         or conversion. (Section 26).

Impaired Reciprocal Insurers
The bill clarifies that the OIR issues the order for the attorney in fact to make up a deficiency or levy an assessment
and specifies that, upon liquidation, the receiver shall levy assessments on subscribers to cover all liabilities,
including liquidation costs, subject to any limits in the power of attorney, the policy, or ch. 629, F.S. (Section 27).

Unearned Premium Reserve
The bill creates s. 629.56, F.S., to require reciprocal insurers to maintain an unearned premium reserve at all times
in accordance with section 625.051, F.S. (Section 30)

Compliance Deadlines for Existing Reciprocal Insurers
The bill provides that reciprocal insurers licensed before July 1, 2025, must comply with the new subscribers’
advisory committee requirements in s. 629.201, F.S., by July 1, 2026, and with the new unearned premium reserve
requirements in s. 629.56, F.S., by July 1, 2027. (Section 31).

Except as expressly provided otherwise, the bill takes effect July 1, 2025. (Section 32).


RULEMAKING:
The bill grants rulemaking authority to the OIR to implement the affiliate transaction oversight provisions created
by the bill, and requires rulemaking to implement s. 628.372, F.S., relating to dividends and financial arrangements
with affiliates. (Section 2 and Section 12).

The bill grants rulemaking authority to OIR and the Financial Services Commission to implement the bill’s
provisions relating to security of consumer insurance data. The bill requires rulemaking from the Financial
Services Commission to implement the provisions of the bill relating to a uniform inspection database and
requirements for property insurers to file certain forms in the database. (Section 4 and Section 10).
Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.

FISCAL OR ECONOMIC IMPACT:

STATE GOVERNMENT:
The bill will have an indeterminate fiscal impact.



RELEVANT INFORMATION
SUBJECT OVERVIEW:
Florida Department of Law Enforcement
The Florida Department of Law Enforcement (FDLE) is a state agency created in 1969 to provide investigative,
forensic, and criminal justice services in support of Florida’s law enforcement community.5 FDLE operates under
the direction of the Florida Cabinet and maintains its headquarters in Tallahassee, with regional operations

5 s. 943.03, F.S.


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                                                                                                                       7
throughout the state. FDLE’s mission is to promote public safety and strengthen domestic security by providing
services to local, state, and federal agencies.6

FDLE is responsible for processing criminal history background checks and fingerprint submissions for a wide
range of professions and regulatory programs, including those involving licensure and employment eligibility.7 The
agency is authorized to exchange fingerprint data with the United States Department of Justice as part of national
criminal history checks.8

As part of Florida’s oversight of the insurance industry, the FDLE provides access to criminal history information to
noncriminal justice agencies, such as the Department of Financial Services (DFS), for use in evaluating insurance
licensure applications.9 Individuals applying for licenses—such as insurance agents, adjusters, and other regulated
professionals—must submit to fingerprint-based background screenings.10 Fingerprints must be submitted
electronically through a LiveScan vendor approved by FDLE.11 FDLE processes the fingerprints and transmits the
results to the appropriate licensing authority, typically DFS, to determine the applicant’s eligibility.12

Managing General Agents
Some insurers operate within a holding company system that includes a managing general agent (MGA).13 An MGA
is a specialized type of insurance agent or broker that has underwriting authority from an insurer.14 MGAs can
perform certain functions that insurers typically handle, including binding coverage, underwriting and pricing,
agent appointments, and claims adjusting and settlement.15 An MGA may be an affiliate of an insurer. Section
624.10(1), F.S., defines an affiliate as an entity that exercises control over or is directly or indirectly controlled by
an insurer. MGAs must enter into contracts with the insurers they do business with, including those that are
affiliates—that is, entities that control or are controlled by the insurer.16 These contracts must specify the division
of responsibilities between the insurer and the MGA.17

There is currently no statutory limit on the duration of these contracts.

Examination of Insurers and MGAs
OIR is responsible for examining the affairs, transactions, accounts, records, and assets of each insurer that holds a
certificate of authority to transact insurance business in Florida.18 OIR's examination authority extends to MGAs.19

As part of the examination process, all persons being examined must make available to OIR the accounts, records,
documents, files, information, assets, and matters in their possession or control that relate to the subject of the
examination.20 As part of an examination, OIR reviews contracts between insurers and MGAs, so that it can
determine how much an insurer is paying its MGA and what services the insurer is receiving for the fee it pays. The
scope of the examination of an insurer’s affiliates in a holding company system is limited to information reasonably
necessary to ascertain an insurer’s financial condition.

Payments to Affiliates



6 FDLE, Mission Statement, https://www.fdle.state.fl.us (last visited April 1, 2025).
7 S. 943.053, F.S.
8 S. 943.054, F.S.
9 S. 943.053(3)(a), F.S.
10 S. 626.171(4), F.S.
11 Florida Department of Financial Services, Fingerprinting Information, https://www.myfloridacfo.com/division/agents/licensing/agents-

and-adjusters/fingerprinting-information. (last visited on April 2, 2025).
12 Id.
13 See s. 628.801, F.S. An “insurance holding company system” consists of two or more affiliated persons, one or more of which is an insurer.
14 S. 626.015(16)(a), F.S., see also, International Risk Management Institute, https://www.irmi.com/term/insurance-definitions/managing-

general-agent (last visited Mar. 28, 2025).
15 See supra note 14.
16 S. 626.7451, F.S.
17 Id.
18 S. 624.316(1)(a), F.S.
19 Id.; S. 626.7452, F.S.
20 S. 624.318(2), F.S.


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Each insurer doing business in Florida that pays a fee, commission, or other financial consideration or payment to
any affiliate is required to provide, upon request of the OIR, any information the OIR deems necessary. The fee,
commission, or other financial consideration or payment to any affiliate must be fair and reasonable. In
determining whether the fee, commission, or other financial consideration or payment is fair and reasonable, the
OIR must consider, among other things, the actual cost of the service being provided.21

Dividends to Stockholders
Florida law permits domestic stock insurers to distribute dividends22 to stockholders under certain conditions.
Dividends may only be paid out of available and accumulated surplus funds that are derived from realized net
operating profits and realized capital gains.23

Without prior approval from OIR, a domestic stock insurer may pay dividends within specific thresholds, such as a
percentage of surplus or recent net income. These thresholds include, for example, the lesser of 10 percent of
surplus or net gain from operations for life and health insurers, or net income for property and casualty insurers.24
Certain carryforward provisions may also apply depending on the type of insurer.

Alternatively, insurers may pay a dividend without prior approval if the dividend meets specific criteria, such as
not exceeding the greater of 10 percent of surplus or the entire net operating profits and realized capital gains
from the preceding calendar year. After the dividend is paid, the insurer must retain surplus of at least 115 percent
of the minimum required statutory surplus, and it must file notice with OIR at least 10 business days before
payment.25

The OIR may disapprove any dividend or distribution that exceeds the statutory limits if it determines that the
payment would jeopardize the financial condition of the insurer, considering factors such as asset quality, liquidity,
premium-to-surplus ratios, and investment income.26

Reciprocal Insurance Exchanges
A reciprocal insurance exchange is an insurance enterprise where subscribers enter into direct agreements with
each other, pledging to contribute proportionally to cover losses experienced by fellow members.27 The essence of
the reciprocal is (1) direct links between the insurance customers, (2) facilitated by a common agent.28 Rather than
an incorporated entity, reciprocals rely on a “thick braid of contracts [to] unite[] a circle of natural persons, each of
whom participates as part of the enterprise, with no legal entity at the contractual core.”29 Reciprocals have been
described in many ways, but a conventional description echoed by courts is as follows: “in its pure form, a
reciprocal insurance exchange is a web of contractual relationships between subscribers who agree to insure one
another, consummated through a common agent with power of attorney.”3031

21 S. 624.424(13), F.S.
22 A dividend is a distribution of a portion of an insurer’s accumulated profits or surplus to its shareholders. In the case of a

domestic stock insurer, dividends are typically paid in cash and represent a return on the shareholders’ investment. Dividends
must comply with statutory limitations to ensure that the insurer maintains sufficient surplus to meet its obligations to
policyholders and maintain financial stability.
23 S. 628.371(1), F.S.
24 S. 628.371(2), F.S.
25 S. 628.371(3)(b), F.S.
26 S. 628.371(4), F.S.
27 Andrew Verstein, Enterprise Without Entities, 116 MICH. L. REV. 247, 249 (2017),

https://repository.law.umich.edu/cgi/viewcontent.cgi?params=/context/mlr/article/1672/&path_info=Enterprise_Without_
Entities_revised_first_page.pdf. Early historic reciprocals include USAA, founded by military officers “convinced that they were
better drivers than civilians,” and Farmers, “which supposed that rural drivers were on the whole safer than urban drivers.” Id.
at 267.
28 Verstein, supra note 27 at 264.
29 Id. at 249.
30 Id. at 264, quoting True v. Robles, 571 F.3d 412, 414 (5th Cir. 2009). The definition has significant historical precedent. See

Robert J. Brennen, Inter-Insurance—Its Legal Aspects and Business Possibilities¸ 58 CENT. L.J. 323, 323 (1904) (“By inter-
insurance . . . is meant that system of insurance whereby several individuals, partnerships and corporations underwrite each
other’s risks against loss by fire or other hazard, through an attorney in fact, common to all, under an agreement that each
underwriter acts separately and severally, not jointly with any other.”). Most states have adopted a similar formulation. See,
e.g., ALA. CODE § 27-31-1 (2014); DEL. CODE ANN. tit. 18, § 5701 (West 2015); MASS. GEN. LAWS ch 175 § 94A (2014); TEX. INS. CODE
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The customers, known as subscribers, sign an agreement authorizing an agent to act as their attorney-in-fact for
the purposes of insurance.32 The effect of the power of attorney agreement is that the designated agent (the
attorney-in-fact), which is generally a management company, is authorized to sign contracts on behalf of all
subscribers.33 The function of an attorney-in-fact for a reciprocal is somewhat comparable, though not identical, to
a managing general agent (MGA) for a stock insurer.34 In both cases, the agent is empowered to bind their
delegating principal(s) to insurance contracts through agency principles.35

Subscribers pay their premiums to the attorney-in-fact, and the shared agent handles soliciting customers and
signing contracts among them to cross-indemnify risks.36 A subscriber’s claim is a claim against every policyholder
of the reciprocal.37 Unused premiums may be returned to subscribers or retained to support future claims.38 The
annual fees paid by subscribers may be substantially refunded in good years, but in bad years, subscribers may be
required to make substantial additional contributions in reciprocals empowered to levy “assessments.”39
Historically, limitations on the power to levy assessments were only permitted for reciprocal exchanges that
maintained a large capital surplus comparable to that held by a conventional entity-based insurance company.40

Subscribers are often represented by a subscribers’ advisory committee, which is somewhat comparable to a
corporate board of directors.41 The committee’s powers can vary by state and reciprocal. Some committees are
passive or controlled by the attorney-in-fact, whereas others are relatively assertive of their rights.42

Chapter 629, F.S., governs the regulation of reciprocal insurers in Florida. A reciprocal insurer may transact any
kind of insurance other than title insurance in Florida.43

In Florida, a subscribers’ advisory committee typically manages a reciprocal insurer.44 The committee is
responsible for choosing and monitoring the attorney-in-fact, approving rates, and providing oversight of the
operations of the reciprocal.45

Florida law provides that the subscribers’ advisory committee of a domestic reciprocal insurer exercising the
subscribers’ rights must be selected under such rules as the subscribers adopt.46 Not less than two-thirds of such
committee may be subscribers other than the attorney, or any person employed by, representing, or having a
financial interest in the attorney.47

ANN. § 942.001 (West 2009). The definition is not universally accepted, however. See Lee v. Interinsurance Exch. of the Auto.
Club of S. Cal., 57 Cal. Rptr. 2d 798, 804 (Ct. App. 1996) (asserting that California law rejects the notion that the subscriber is
an insurer to others).
31 Other ways reciprocal insurance exchanges have been described include: “an unincorporated association, a trust for a

purpose, a quasi-corporation, and more than a partnership and something less than an insurance corporation.” Verstein, supra
note 27 at 264 (internal quotes omitted).
32 Verstein, supra note 27 at 264.
33 Id. at 251.
34 Managing general agents can be entrusted with different functions by different insurers, but MGAs are defined by their

authority, delegated by the insurer through agency principles, to act on behalf of the insurer, particularly (though perhaps not
exclusively) in binding the insurer to insurance contracts. See INTERNATIONAL RISK MANAGEMENT INSTITUTE, managing general
agent (MGA), https://www.irmi.com/term/insurance-definitions/managing-general-agent-(mga).
35 See supra note 34.
36 Verstein, supra note 27 at 264.
37 Id.
38 Id.
39 Id. at 265.
40 Id. n. 98 and accompanying text.
41 Id.
42 Id.
43 S. 629.041(1), F.S. Such an insurer may purchase reinsurance and may grant reinsurance as to any kind of insurance it is

authorized to transact directly. S. 629.041(2), F.S.
44 See s. 629.201, F.S.
45 See id.
46 Id.
47 Id.


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The subscribers’ advisory committee must:
    Supervise the finances of the insurer;
    Supervise the insurer’s operations to such extent as to assure conformity with the subscribers’ agreement
       and power of attorney;
    Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the
       insurer; and
    Have such additional powers and functions as may be conferred by the subscribers’ agreement.48

Impaired Reciprocal Insurers
If a reciprocal insurer becomes impaired—meaning it is unable to meet its obligations or maintain required
surplus—the Department of Financial Services may initiate rehabilitation or liquidation proceedings under ch.
631, F.S., including potential rehabilitation under s. 631.051, F.S., or liquidation under s. 631.061, F.S. 49

Mergers Involving Reciprocal Insurers
Reciprocal insurers may merge or consolidate under Part III of Chapter 628, F.S., with approval from the Office of
Insurance Regulation. The unique governance structure of reciprocals, including the attorney in fact and
subscribers’ advisory committee, must be considered in any proposed transaction.50

Insurance Rate Filing
Part I of ch. 627, F.S., the Rating Law,51 governs property, casualty, and surety insurance covering the subjects of
insurance resident, located, or to be performed in this state.52 The rating law provides that the rates for all classes
of insurance it governs may not be excessive, inadequate, or unfairly discriminatory.53 Though the terms “rate” and
“premium” are often used interchangeably, the rating law specifies that “rate” is the unit charge that is multiplied
by the measure of exposure or amount of insurance specified in the policy to determine the premium, which is the
consideration paid by the consumer.54

All property and casualty insurers must utilize one of two filing methods:
     File and use. File proposed rate changes at least 90 days before the intended effective date. The insurer
        can use the rates once approved or if 90 days pass without disapproval.
     Use and file. Implement rates first, then file the rate change within 30 days after they become effective. If
        OIR later finds the rates unacceptable, the insurer may have to issue refunds to policyholders.55

Upon receiving a rate filing, the OIR reviews the filing to determine if the rate is excessive, inadequate, or unfairly
discriminatory. The OIR makes that determination in accordance with generally acceptable actuarial techniques
and considers the following:
     Past and prospective loss experience;
     Past and prospective expenses;
     The degree of competition among insurers for the risk insured;
     Investment income reasonably expected by the insurer;
     The reasonableness of the judgment reflected in the rate filing;
     Dividends, savings, or unabsorbed premium deposits returned to policyholders;
     The adequacy of loss reserves;
     The cost of reinsurance;
     Trend factors, including trends in actual losses per insured unit for the insurer;
     Conflagration and catastrophe hazards;


48 Id.
49 s. 629.301, F.S.
50 s. 629.111, F.S.
51 S. 627.011, F.S.
52 S. 627.021(1), F.S.
53 S. 627.062(1), F.S.
54 S. 627.041, F.S.
55 S. 627.062, F.S.


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        Projected hurricane losses;
        Projected flood losses, if the policy covers the risk of flood;
        The cost of medical services, if applicable;
        A reasonable margin for underwriting profit and contingencies; and
        Other relevant factors that affect the frequency or severity of claims or expenses.56

All insurers or rating organizations writing any line of property or casualty insurance to which these requirements
apply must make an annual base rate filing for each such line with OIR no later than 12 months after its previous
base rate filing, demonstrating that its rates are not inadequate.57 The annual base rate filing requirement may be
satisfied, if no rate change is proposed, by filing a certification by an actuary that the existing rate level produces
rates which are actuarially sound and which are not inadequate, as defined in s. 627.062, F.S.58

Insurer Reporting of Property Insurance Data
All insurers with a Florida certificate of authority to transact insurance business must file quarterly and annual
reports with the OIR containing various financial data, including audited financial statements, actuarial opinions,
and certain claims dates. 59 Each year, insurers must file an annual statement covering the preceding calendar year
on or before March 1. Quarterly statements covering each period ending on March 31, June 30, and September 30
must be filed within 45 days after each such date.60

Under s. 627.0621, F.S., with respect to any residential property insurance rate filings, the OIR must provide the
following information on an internet website:
     The overall rate change requested by the insurer;
     All assumptions made by an OIR actuary;
     A statement describing any assumptions that deviate from actuarial standards of the Casualty Actuarial
        Society or American Academy of Actuaries;
     All recommendations made by any OIR actuary who reviewed the rate filing;
     A certification by the OIR's actuary that based on the actuary's knowledge, that his or her
        recommendations are consistent with accepted actuarial principles; and
     The overall rate change approved by the OIR.

Insurance Data Security
In recent years, there have been several major data breaches across the U.S. involving large insurers that have
exposed and compromised the sensitive personal information of millions of insurance consumers.61

National Association of Insurance Commissioners (NAIC) Data Security Model Law

The NAIC Insurance Data Security Model Law (#668) was adopted in 2017 to establish data security standards for
regulators and insurers to mitigate the potential damage of a data breach.62 The model applies to insurers,
insurance agents, and other entities licensed by state insurance regulators.63 The U.S. Treasury Department in 2017

56 S. 627.062(2)(b), F.S.
57 S. 627.0645(1), F.S.
58 Rates are deemed inadequate if they are clearly insufficient, together with the investment income attributable to them, to

sustain projected losses and expenses in the class of business to which they apply. Section 627.062(2)(e)3., F.S. A rate shall be
deemed inadequate as to the premium charged to a risk or group of risks if discounts or credits are allowed which exceed a
reasonable reflection of expense savings and reasonably expected loss experience from the risk or group of risks. S.
627.062(2)(3)5., F.S.
59 S. 624.424, F.S.
60 S. 624.424(1)(a), F.S. The law excepts workers’ compensation and employer’s liability insurance; insurance limited to

coverage of commercial risks other than commercial residential multiperil and medical malpractice insurance; and certain
travel insurance.
61 NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, State Legislative Brief – The NAIC Insurance Data Security Model Law –

February 2025, https://content.naic.org/sites/default/files/government-affairs-brief-data-security-model-law.pdf (last visited
March 26, 2025).
62 Id.
63 Id.


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urged states to promptly adopt the model within five (5) years of the NAIC’s adoption and, if states failed to meet
the timeline, recommended that the federal administration ask Congress to preempt the states.64

The model law requires insurers and other entities licensed by state insurance regulators to develop, implement,
and maintain an information security program based on its risk assessment, with a designated employee in charge
of the information security program.65 The model phases in requirements for compliance with the information
security program and oversight of third-party service providers.66 Licensees determine the appropriate security
measures to implement based on careful, ongoing risk assessment for internal and external threats.67 The model
also requires licensees to investigate a cybersecurity event and notify the state insurance commissioner of a
cybersecurity event.68 It also grants insurance commissioners the power to examine and investigate licensees to
determine compliance with the law and provides state insurance regulators the authority to remedy data security
deficiencies they find during an examination.69 The model exempts licensees with fewer than 10 employees,
licensees compliant with the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and agents of a
licensee from Section 4 of the model.70 The model does not create a private cause of action, nor does it limit an
already-existing private right of action.71

The NAIC model law has been implemented in twenty-six (26) jurisdictions as of February 1, 2025.72

Insurance Mitigation – Uniform Mitigation Verification Inspection Forms
Florida law promotes hurricane mitigation by requiring insurers to offer premium discounts for properties with
certain wind-resistant features (such as fortified roofs, window protection, etc.). Section 627.711, F.S. requires
insurers to notify policyholders about available hurricane mitigation discounts and accept a Uniform Mitigation
Verification Inspection Form as proof of a home’s mitigation features.

Uniform Mitigation Verification Inspection Forms are standardized documents used to verify that homes have
specific hurricane and wind damage prevention features. This standard document is the uniform mitigation
verification inspection form (Form OIR-B1-1802),73 developed by the Financial Services Commission for statewide
use.

The uniform inspection form creates a consistent way to verify a structure’s windstorm mitigation features.
Homeowners can hire a qualified inspector to examine their roof construction, windows, doors, and other features
that reduce hurricane damage, and the inspector records the findings on the uniform mitigation form. Insurers
must accept a properly completed form when calculating applicable discounts or credits on windstorm insurance
premiums. Once a homeowner submits the completed Form OIR-B1-1802 to their insurer, the insurer will apply
the appropriate wind mitigation credits to the policy.

Florida law has provided by statute for premium discounts for hurricane loss mitigation since the creation of
section 627.711, F.S., in 2005. The uniform form process has been significant for Florida’s strategy to encourage
homeowners to harden their homes against hurricanes, thereby reducing overall insurance losses over time.

Citizens Property Insurance Corporation
Citizens Property Insurance Corporation (Citizens) is a state-created, not-for-profit, tax-exempt governmental
entity whose public purpose is to provide property insurance coverage to those unable to find affordable coverage

64 Id.
65 Id.
66 Id.
67 Id.
68 Id.
69 Id.
70 Id.
71 Id.
72 Id.
73 FLORIDA OFFICE OF INSURANCE REGULATION, Uniform Mitigation Verification Inspection Form¸ https://floir.com/docs-sf/default-

source/property-and-casualty/oir-b1-1802.pdf?sfvrsn=13b11cba_2; see also FLORIDA DEPARTMENT OF FINANCIAL SERVICES,
Mitigation Notices, Inspections and Forms, https://myfloridacfo.com/division/consumers/storm/mitigation-notices-
inspections-and-forms.
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in the voluntary admitted market.74 Citizens is not a private insurance company.75 Citizens was statutorily created
in 2002 when the Florida Legislature combined the state’s two insurers of last resort, the Florida Residential
Property and Casualty Joint Underwriting Association (RPCJUA) and the Florida Windstorm Underwriting
Association (FWUA).76

Citizens operates in accordance with the provisions in s. 627.351(6), F.S., and is governed by a nine-member Board
of Governors (board) that administers its Plan of Operations. The Plan of Operations is reviewed and approved by
the Financial Services Commission.77 The Governor, President of the Senate, Speaker of the House of
Representatives, and Chief Financial Officer each appoint two members to the board.78 The Governor appoints an
additional member who serves solely to advocate on behalf of the consumer.79 Citizens is subject to regulation by
the Office of Insurance Regulation (OIR).

Citizens may only appoint as its licensed agents those agents who also hold an appointment by at least three
insurers who are authorized to write and are actually writing or renewing personal lines residential property
coverage, commercial residential property coverage, or commercial nonresidential property coverage within the
state.80

The Division of Administrative Hearings (DOAH)
DOAH is a state agency that employs full-time Administrative Law Judges to conduct hearings in most cases in
which the substantial interests of a person are determined by an agency and which involve a disputed issue of
material fact.81 When a state agency proposes to take some action that is adverse to a person, the affected person is
normally entitled to request an administrative hearing to determine the matter.82 Requests for hearings are
initially made to the appropriate state agency.83 If the case does not involve disputed facts, the agency itself will
conduct a proceeding and subsequently render a decision.84 If the request for hearing indicates that the affected
person disputes facts upon which the proposed action is based, the agency ordinarily refers the case to DOAH for a
hearing.85

DOAH provides a hearing conducted by an independent and neutral Administrative Law Judge who thereafter
enters a Recommendation or Final Order, which is provided to the state agency and the parties in the case. In the
case of a Recommended Order, the agency reviews the Recommended Order and issues a Final Order which usually
adopts the Judge's factual findings, but, under certain circumstances, the agency may reject or modify certain legal
conclusions of the Judge or the recommended penalty, if any. If the Final Order is adverse to the non-agency party,
an appeal may be taken within a limited time to a District Court of Appeal.86

Integration of DOAH in Citizens’ Dispute Resolution Process

Traditionally, disputes between Citizens and its policyholders that couldn't be resolved through informal
negotiations or traditional alternative dispute resolution procedures often resulted in civil suits filed in circuit
court. In July 2022, Citizens' Board of Governors approved a policy endorsement allowing either the insurer or the
insured to direct claims disputes to DOAH. This endorsement was subsequently approved by the OIR in August
2022 and became effective for new and renewing policies on February 1, 2023. 87

74 The term “admitted market” means insurance companies licensed to transact insurance in Florida.
75 S. 627.351(6)(a)1., F.S.
76 S. 2, ch. 2002-240, Laws of Fla.
77 S. 627.351(6)(a)2., F.S.
78 S. 627.351(6)(c)4.a., F.S.
79 S. 627.351(6)(c)4., F.S.
80 S. 627.351(6)(c)13., F.S.
81 Ch. 120, F.S.
82 Section 120.68(1), F.S.
83 See Uniform Rule 28-106.201(2).
84 Section 120.57(2), F.S.
85 Section 120.57(1), F.S.
86 Section 120.68(2)(a), F.S.
87 See Insurance Journal, Citizens Insurance to Begin Using DOAH for Dispute Resolution, July 14, 2022,

https://www.insurancejournal.com/news/southeast/2022/07/14/675721.htm; Insurance Journal, Citizens Insurance Adds DOAH
Arbitration Option to Policies, Feb. 6, 2023. https://www.insurancejournal.com/news/southeast/2023/02/06/706063.htm.

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HB 799 (2023) codified Citizens’ authority to include DOAH arbitration in its policy forms and to contract with
DOAH to conduct claim-related dispute proceedings. Under current law, such proceedings are not governed by ch.
120, F.S., but are instead subject to ss. 57.105 and 768.79, F.S., allowing for attorney fee awards and settlement
procedures similar to those in circuit court.88


                                                              BILL HISTORY
                                                                                                  STAFF
                                                                                                DIRECTOR/       ANALYSIS
COMMITTEE REFERENCE                                      ACTION                     DATE       POLICY CHIEF   PREPARED BY
Orig. Comm.: Insurance & Banking                                                                  Hamon          Schenk
Subcommittee




88 Ch. 2023-172, § 5, Laws of Fla.; see also § 57.105, 768.79, Fla. Stat. (2023).


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           PCS for HB 1429                                                                                      2025




    1                                         A bill to be entitled
    2              An act relating to insurance regulations; creating s.
    3              624.341, F.S.; providing legislative findings;
    4              requiring the Department of Law Enforcement to accept
    5              and process fingerprints of specified persons who are
    6              involved in the organization, operation, or management
    7              of certain insurers or certain proposed insurers or
    8              who are subject to specified provisions of the Florida
    9              Insurance Code; requiring full sets of fingerprints of
10                 such persons to be submitted to the Office of
11                 Insurance Regulation or certain vendors, entities, or
12                 agencies; providing procedures for criminal background
13                 checks; providing fees; authorizing the department to
14                 exchange criminal background checks for specified
15                 purposes; providing guidelines for submitting
16                 fingerprints; requiring the office to use and review
17                 the criminal background checks for specified
18                 determinations; amending s. 626.9651, F.S.; requiring
19                 the Office of Insurance Regulation and the Financial
20                 Services Commission to adopt rules on cybersecurity of
21                 certain insurance data; providing requirements for
22                 such rules; providing duties of the office; creating
23                 s. 624.347, F.S.; providing definitions; providing
24                 applicability; establishing standards for compensation
25                 arrangements and oversight of affiliate transactions

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        PCS for HB 1429                                                                                      2025




26              involving insurers, managing general agents, and
27              attorneys in fact; providing penalties; requiring the
28              office to adopt rules; amending s. 624.424, F.S.;
29              specifying requirements for affiliate compensation
30              arrangements; removing requirements that the office
31              consider a specified factor in determining whether
32              certain affiliate considerations and payments by an
33              insurer are fair and reasonable; amending s. 627.062,
34              F.S.; prohibiting personal residential property
35              insurers from submitting more than three "use and
36              file" filing under certain circumstances; providing an
37              exception; amending s. 627.0621, F.S.; requiring
38              certain rate filings with the office from residential
39              property insurers to include rate transparency
40              reports; providing for acceptance or rejection by the
41              office of such reports; providing requirements for
42              such reports; requiring insurers to provide such
43              reports to consumers; requiring the office to define
44              terms used in such reports; requiring the office to
45              establish and maintain a specified center on its
46              website; providing requirements for the website;
47              amending s. 627.0645, F.S.; revising requirements of
48              rate filing with the office; amending s. 627.0651,
49              F.S.; prohibiting motor vehicle insurers from
50              submitting more than one "use and file" filing under

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        PCS for HB 1429                                                                                      2025




51              certain circumstances; amending s. 627.351, F.S.;
52              dispute resolution procedures under Citizens Property
53              Insurance Corporation; amending s. 627.711, F.S.;
54              requiring the office to contract with a state
55              university to design, operate, upgrade, and maintain a
56              specified database; requiring property insurers to
57              file certain policyholder forms in the database;
58              requiring the commission to adopt rules; amending s.
59              628.371, F.S.; defining the term "affiliated entity";
60              applying provisions on prohibitions against,
61              limitations on, and authority of insurers relating to
62              dividend payments and distributions to stockholders to
63              affiliated entities; providing requirements for
64              certain approvals of dividends, distributions, and
65              other financial arrangements; creating s. 628.372,
66              F.S.; providing authority of the office over affiliate
67              dividends; providing penalties; requiring the office
68              to adopt rules; amending s. 629.011, F.S.; revising
69              and providing definitions; amending s. 629.071, F.S.;
70              authorizing assessable and nonassessable reciprocal
71              insurers, rather than domestic reciprocal insurers, to
72              transact insurance if they maintain specified amounts
73              of surplus funds; amending s. 629.081, F.S.;
74              conforming a provision to changes made by the act;
75              creating s. 629.082, F.S.; providing that attorneys in

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         PCS for HB 1429                                                                                      2025




76               fact of reciprocals are affiliates of the reciprocals
77               for specified purposes; creating s. 629.1015, F.S.;
78               requiring documentation supporting that fees,
79               commissions, and other financial considerations and
80               payments to affiliates by reciprocal insurers are fair
81               and reasonable; providing guidelines for the office in
82               determining whether the fees, commissions, and other
83               financial considerations and payments are fair and
84               reasonable; providing requirements for documentation
85               of such fees; amending s. 629.121, F.S.; providing
86               that certain bonds filed with the office as security
87               are filed by attorneys in fact, rather than attorneys
88               of domestic reciprocal insurers; increasing the bond
89               amount; creating s. 629.162, F.S.; authorizing
90               reciprocal insurers to require subscriber
91               contributions; providing disclosure and reporting
92               requirements for subscriber contributions; creating s.
93               629.163, F.S.; authorizing reciprocal insurers to
94               establish subscriber savings accounts; providing
95               construction; providing requirements for subscriber
96               savings accounts; creating s. 629.164, F.S.;
97               authorizing reciprocal insurers to make distributions
98               to subscribers from subscriber savings accounts;
99               granting to subscribers' advisory committees sole
100              authority to authorize distributions, subject to prior

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         PCS for HB 1429                                                                                      2025




101              written approval by the office; providing requirements
102              for reciprocal insurers that prohibit subscribers from
103              receiving distributions for a specified period of
104              time; providing construction; authorizing reciprocal
105              insurers to return to subscribers unused premiums,
106              savings, and credits accruing to their accounts;
107              authorizing domestic reciprocal insurers to pay
108              portions of unassigned funds; providing distribution
109              limits; prohibiting distribution discriminations;
110              amending s. 629.171, F.S.; revising requirements for
111              filing with the office annual statements by reciprocal
112              insurers; amending s. 629.181, F.S; replacing surplus
113              deposits of subscribers with subscriber contributions;
114              providing limits on subscriber contributions; amending
115              s. 629.201, F.S.; requiring that each domestic
116              reciprocal insurer have a subscribers' advisory
117              committee; requiring that such committee be formed in
118              compliance with specified laws; requiring that rules
119              and amendments adopted by subscribers have prior
120              approval by the office; revising subscribers' advisory
121              committees' duties and membership; providing for
122              election and terms; repealing s. 629.271, F.S.,
123              relating to distribution of savings; amending s.
124              629.291, F.S.; providing that forms filed with the
125              office for plans to merge a reciprocal insurer with

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         PCS for HB 1429                                                                                      2025




126              another reciprocal insurer or to convert a reciprocal
127              insurer to a stock or mutual insurer are adopted by
128              the commission rather than the office; amending s.
129              629.301, F.S.; specifying the manner in which impaired
130              reciprocal insurers are proceeded against if they
131              cannot make up deficiencies in assets; specifying the
132              manner in which assessments are levied upon
133              subscribers if reciprocal insurers are liquidated;
134              providing that assessments are subject to specified
135              limits; repealing ss. 629.401 and 629.520, F.S.,
136              relating to insurance exchange and the authority of a
137              limited reciprocal insurer, respectively; creating s.
138              629.56, F.S.; requiring reciprocal insurers to
139              maintain unearned premium reserves at all times;
140              providing applicability dates; providing effective
141              dates.
142
143      Be It Enacted by the Legislature of the State of Florida:
144
145              Section 1.         Section 624.341, Florida Statutes, is created
146      to read:
147              624.341       Authority of Department of Law Enforcement to
148      accept fingerprints of, and exchange criminal history records
149      with respect to, certain persons applying to the Office of
150      Insurance Regulation.—

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         PCS for HB 1429                                                                                      2025




151              (1)       The Legislature finds that criminal activity of
152      insurers poses a particular danger to the residents of this
153      state. Floridians rely, in good faith, on the honest conduct of
154      those who issue and manage insurance policies and other
155      insurance instruments in this state. To safeguard this state's
156      residents, the Legislature finds it necessary to ensure that
157      organizers, incorporators, subscribers, officers, employees,
158      contractors, affiliates, stockholders, directors, owners,
159      members, managers, or volunteers, or any other persons who
160      exercise or have the ability to exercise effective control of,
161      or who influence or have the ability to influence the
162      transaction of the business of, or any other persons involved,
163      directly or indirectly, in the organization, operation, or
164      management of any insurer that is authorized to sell insurance
165      do not have a criminal background.
166              (2)       The Department of Law Enforcement shall accept and
167      process fingerprints of organizers, incorporators, subscribers,
168      officers, employees, contractors, affiliates, stockholders,
169      directors, owners, members, managers, or volunteers involved,
170      directly or indirectly, in the organization, operation, or
171      management of:
172              (a)       Any insurer or proposed insurer transacting or
173      proposing to transact insurance in this state.
174              (b)       Any other entity that is examined or investigated or
175      that is eligible to be examined or investigated under the

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         PCS for HB 1429                                                                                      2025




176      provisions of the Florida Insurance Code.
177              (c)       Any other person or entity subject to licensure under
178      the Florida Insurance Code.
179              (3)       A full set of fingerprints of persons described in
180      subsection (2) must be submitted to the office or to a vendor,
181      an entity, or an agency authorized by s. 943.053(13). The
182      office, vendor, entity, or agency shall forward the fingerprints
183      to the Department of Law Enforcement for state processing, and
184      the Department of Law Enforcement shall forward the fingerprints
185      to the Federal Bureau of Investigation for national processing
186      as described in s. 624.34. Fees for state and federal
187      fingerprint processing must be borne by the person submitting
188      the fingerprints. The state cost for fingerprint processing is
189      as provided in s. 943.053(3)(e).
190              (4)       The Department of Law Enforcement may, to the extent
191      provided by federal law, exchange state, multistate, and federal
192      criminal history records with the office for the purpose of
193      issuance, denial, suspension, or revocation of a certificate of
194      authority, certification, or license to operate in this state.
195              (5)       Fingerprints for each person described in subsection
196      (2) must be submitted in accordance with rules adopted by the
197      commission.
198              (a)       Fingerprints may be submitted through a third-party
199      vendor authorized by the Department of Law Enforcement.
200              (b)       The Department of Law Enforcement shall conduct the

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         PCS for HB 1429                                                                                      2025




201      state criminal history background check, and a federal criminal
202      history background check shall be conducted through the Federal
203      Bureau of Investigation.
204              (c)       All fingerprints submitted to the Department of Law
205      Enforcement must be submitted and entered into the statewide
206      automated fingerprint identification system established in s.
207      943.05(2)(b) and available for use in accordance with s.
208      943.05(2)(g) and (h). The office shall inform the Department of
209      Law Enforcement of any person whose fingerprints no longer must
210      be retained.
211              (d)       The costs of fingerprint processing, including the
212      cost of retaining the fingerprints, must be borne by the person
213      subject to the background checks.
214              (e)       The office shall review the results of the state and
215      federal criminal history background checks and determine whether
216      the applicant meets the requirements for the certificate of
217      authority, certification, or license to operate in this state.
218              (6)       Statewide criminal records obtained through the
219      Department of Law Enforcement, federal criminal records obtained
220      through the Federal Bureau of Investigation, and local criminal
221      records obtained through local law enforcement agencies must be
222      used by the office for the purpose of issuance, denial,
223      suspension, or revocation of certificates of authority,
224      certifications, or licenses issued to operate in this state.
225              Section 2.         Section 624.347, Florida Statutes, is created

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         PCS for HB 1429                                                                                      2025




226      to read:
227              624.347       Affiliate transactions; managing general agents;
228      attorneys in fact; oversight.—
229              (1)       DEFINITIONS.—As used in this section, the term:
230              (a)       "Affiliated entity" means any affiliate. The term
231      includes a managing general agent, attorney in fact, and
232      reciprocal insurer when acting in a capacity that involves
233      compensation or contractual arrangements with the insurer.
234              (b)       "Attorney in fact" has the same meaning as in s.
235      629.011.
236              (c)       "Managing general agent" has the same meaning as in s.
237      626.015.
238              (d)       "Reciprocal insurer" has the same meaning as in s.
239      629.011.
240              (2)       APPLICABILITY.—This section applies to any insurer
241      that contracts with or makes payments to an affiliated entity.
242              (3)       COMPENSATION ARRANGEMENTS WITH AFFILIATED ENTITIES.—
243              (a)       Each insurer doing business in this state which pays,
244      directly or indirectly, a fee, commission, or other financial
245      consideration or payment to any affiliated entity must provide
246      to the office documentation demonstrating that such fee,
247      commission, or other financial consideration or payment is fair
248      and reasonable for each service being provided. In determining
249      whether the fee, commission, or other financial consideration or
250      payment is fair and reasonable, the office must consider all of

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         PCS for HB 1429                                                                                      2025




251      the following:
252              1.      The actual cost of each service provided by the
253      affiliated entity.
254              2.      The relative financial condition of the insurer and the
255      affiliated entity.
256              3.      The level of debt and how that debt is serviced.
257              4.      The amount and purpose of any dividends or other
258      payments exchanged between the insurer and any affiliated
259      entity, including payments made to or received from the
260      affiliated entity, and any payments between affiliated entities.
261              5.      Whether the terms of the written contract benefit the
262      insurer and are in the best interest of the insurer.
263              6.      Any other information as the office reasonably requires
264      in making the determination.
265              (b)       For each agreement with an affiliated entity in force
266      on July 1, 2025, each insurer shall provide to the office no
267      later than October 1, 2025, the cost incurred by the affiliated
268      entity to provide each service, the dollar amount charged to the
269      insurer for each service, and the dollar amount of fees
270      forgiven, waived, or reimbursed by the affiliated entity for the
271      2 most recent preceding years. If the total dollar amount
272      charged to the insurer was greater than the total cost to
273      provide services for either year, the insurer must explain how
274      it determined the fee was fair and reasonable. For any proposed
275      contract with an affiliated entity effective after July 1, 2025,

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         PCS for HB 1429                                                                                      2025




276      the insurer must provide documentation to support that the fee,
277      commission, or other financial consideration or payment to the
278      affiliated entity is fair and reasonable.
279              (c)1.       All compensation arrangements between an insurer and
280      any affiliated entity entered into on or after July 1, 2026,
281      must be structured as fee for service. As used in this
282      subparagraph, the term "fee for service" means fixed amounts or
283      hourly rates for itemized services.
284              2.      Compensation may not be based on:
285              a.      Commission;
286              b.      Premium volume;
287              c.      Underwriting profit; or
288              d.      Financial results of the insurer.
289              (d)       This subsection does not prohibit an insurer from
290      paying a dividend or other financial arrangement to an
291      affiliated entity if such dividend or financial arrangement is
292      separately reviewed and approved by the office pursuant to this
293      section, s. 628.372, or any other applicable law.
294              (e)       An agreement between an insurer and an affiliated
295      entity must include a termination clause and may not exceed a
296      term of 3 years. Any extension of such an agreement must be
297      approved by the office before becoming effective. An agreement
298      between an insurer and an affiliated entity may include
299      provisions for extension, but may not remain in effect for
300      longer than 3 years without a review pursuant to paragraph (a)

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         PCS for HB 1429                                                                                      2025




301      and approval by the office. If the agreement provides for
302      extension, the agreement must clearly state that the extension
303      is subject to approval by the office at least every 3 years.
304              (4)       EMERGENCY RESTRICTIONS.—
305              (a)       During a declared emergency, the office may issue
306      orders restricting fund transfers from an insurer to an
307      affiliated entity without prior approval.
308              (b)       Orders under paragraph (a) may apply to all or
309      specified insurers and may not exceed 90 days unless extended by
310      the office.
311              (5)       ADDITIONAL OVERSIGHT.—
312              (a)       Any dividend paid by an insurer to an affiliated
313      entity must be reviewed and approved by the office, regardless
314      of whether the affiliated entity is the insurer's parent,
315      subsidiary, or otherwise related entity.
316              (b)       The office may recover improper affiliated entity
317      payment transfers, including, but not limited to, both of the
318      following:
319              1.      Transfers that violate the approved compensation,
320      approved dividend, or any other approved financial arrangement.
321              2.      Transfers made while the insurer was undercapitalized.
322              (c)       An insurer must provide notice to the office at least
323      30 days before any pledge of capital or assets to any affiliated
324      entity for a loan or financial obligation. Such notice must
325      include a description of the collateral, the nature of the

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         PCS for HB 1429                                                                                      2025




326      obligation, and the parties involved. The office may reject and
327      prohibit the pledge if such financial arrangement is not in the
328      best interest of the insurer.
329              (6)       ENFORCEMENT.—
330              (a)       The office may impose penalties for violations of this
331      section.
332              (b)       The office shall adopt rules to implement this
333      section.
334              Section 3.         Subsection (13) of section 624.424, Florida
335      Statutes, is amended to read:
336              624.424        Annual statement and other information.—
337              (13)        Each insurer doing business in this state which pays
338      a fee, commission, or other financial consideration or payment
339      to any affiliate directly or indirectly is required upon request
340      to provide to the office any information the office deems
341      necessary. The fee, commission, or other financial consideration
342      or payment to any affiliate must be fair and reasonable.
343      Affiliate compensation arrangements must comply with s. 624.347
344      and with the requirements of this subsection In determining
345      whether the fee, commission, or other financial consideration or
346      payment is fair and reasonable, the office shall consider, among
347      other things, the actual cost of the service being provided.
348              Section 4.         Section 626.9651, Florida Statutes, is amended
349      to read:
350              626.9651          Security of consumer data Privacy.—

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         PCS for HB 1429                                                                                      2025




351              (1)       The department and commission shall must each adopt
352      rules consistent with other provisions of the Florida Insurance
353      Code to govern the use of a consumer's nonpublic personal
354      financial and health information. These rules must be based on,
355      consistent with, and not more restrictive than the Privacy of
356      Consumer Financial and Health Information Regulation, adopted
357      September 26, 2000, by the National Association of Insurance
358      Commissioners; however, the rules must permit the use and
359      disclosure of nonpublic personal health information for
360      scientific, medical, or public policy research, in accordance
361      with federal law. In addition, these rules must be consistent
362      with, and not more restrictive than, the standards contained in
363      Title V of the Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-
364      102, as amended in Title LXXV of the Fixing America's Surface
365      Transportation (FAST) Act, Pub. L. No. 114-94. If the office
366      determines that a health insurer or health maintenance
367      organization is in compliance with, or is actively undertaking
368      compliance with, the consumer privacy protection rules adopted
369      by the United States Department of Health and Human Services, in
370      conformance with the Health Insurance Portability and
371      Affordability Act, that health insurer or health maintenance
372      organization is in compliance with this subsection section.
373              (2)       The office and the commission shall adopt rules
374      consistent with state law, including the Florida Insurance Code,
375      to ensure the cybersecurity of a consumer's nonpublic insurance

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         PCS for HB 1429                                                                                      2025




376      data. These rules may not be more restrictive than the National
377      Association of Insurance Commissioners Insurance Data Security
378      Model Law, adopted as of October 2017, and subsequent amendments
379      thereto if the methodology remains substantially consistent. The
380      rules must:
381              (a)       Apply to all entities acting as insurers, transacting
382      insurance, or otherwise engaging in insurance activities in this
383      state, including entities licensed under chapter 641, and any
384      entity that has been contracted to maintain, store, or process
385      personal information on behalf of a covered entity;
386              (b)       Require the development and implementation of an
387      information security program as defined in the model law;
388              (c)       Require investigation and notification of a
389      cybersecurity event as required under the model law;
390              (d)       Require that each insurer submit to the department or
391      office all or part of the information required to be reported to
392      the department or office in a computer-readable form compatible
393      with the electronic data processing system of the department or
394      office; and
395              (e)       Require that the office be copied on any notice
396      provided to the Attorney General under s. 501.171.
397              (3)       Upon receiving information under this section, the
398      office shall review the information and may initiate an
399      examination or investigation under s. 624.316, s. 624.3161, or
400      s. 626.8828.

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         PCS for HB 1429                                                                                      2025




401              (4) This section does not establish a private cause of
402      action.
403              Section 5.         Paragraph (a) of subsection (2) of section
404      627.062, Florida Statutes, is amended to read:
405              627.062       Rate standards.—
406              (2)       As to all such classes of insurance:
407              (a)       Insurers or rating organizations shall establish and
408      use rates, rating schedules, or rating manuals that allow the
409      insurer a reasonable rate of return on the classes of insurance
410      written in this state. A copy of rates, rating schedules, rating
411      manuals, premium credits or discount schedules, and surcharge
412      schedules, and changes thereto, must be filed with the office
413      under one of the following procedures:
414              1.      If the filing is made at least 90 days before the
415      proposed effective date and is not implemented during the
416      office's review of the filing and any proceeding and judicial
417      review, such filing is considered a "file and use" filing. In
418      such case, the office shall finalize its review by issuance of a
419      notice of intent to approve or a notice of intent to disapprove
420      within 90 days after receipt of the filing. If the 90-day period
421      ends on a weekend or a holiday under s. 110.117(1)(a)-(i), it
422      must be extended until the conclusion of the next business day.
423      The notice of intent to approve and the notice of intent to
424      disapprove constitute agency action for purposes of the
425      Administrative Procedure Act. Requests for supporting

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         PCS for HB 1429                                                                                      2025




426      information, requests for mathematical or mechanical
427      corrections, or notification to the insurer by the office of its
428      preliminary findings does not toll the 90-day period during any
429      such proceedings and subsequent judicial review. The rate shall
430      be deemed approved if the office does not issue a notice of
431      intent to approve or a notice of intent to disapprove within 90
432      days after receipt of the filing.
433              2.      If the filing is not made in accordance with
434      subparagraph 1., such filing must be made as soon as
435      practicable, but within 30 days after the effective date, and is
436      considered a "use and file" filing. An insurer making a "use and
437      file" filing is potentially subject to an order by the office to
438      return to policyholders those portions of rates found to be
439      excessive, as provided in paragraph (h). For purposes of this
440      subparagraph, a personal residential property insurer may not
441      submit more than three use and file filings affecting
442      policyholders within a single policy period, unless the filings
443      are exclusively related to reinsurance.
444              3.      For all property insurance filings made or submitted
445      after January 25, 2007, but before May 1, 2012, an insurer
446      seeking a rate that is greater than the rate most recently
447      approved by the office shall make a "file and use" filing. For
448      purposes of this subparagraph, motor vehicle collision and
449      comprehensive coverages are not considered property coverages.
450

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         PCS for HB 1429                                                                                      2025




451      The provisions of this subsection do not apply to workers'
452      compensation, employer's liability insurance, and motor vehicle
453      insurance.
454              Section 6.         Subsection (2) of section 627.0621, Florida
455      Statutes, is renumbered as subsection (3), present subsection
456      (2) is amended, and a new subsection (2) is added to that
457      section, to read:
458              627.0621          Transparency in rate regulation.—
459              (2)       RATE TRANSPARENCY REPORT.—
460              (a)       Beginning January 1, 2026, every rate filing
461      requesting a rate change for residential property coverage from
462      a property insurer must include a rate transparency report for
463      acceptance for use or modification by the office. The office may
464      accept the rate transparency report for filing, or if the office
465      finds that the report fails to provide the required information
466      in concise and plain language which aids consumers in their
467      understanding of insurance, or finds the report to be
468      misleading, the office shall return the rate transparency report
469      to the property insurer for modification. The office's
470      acceptance for use or modification of the report may not be
471      deemed approval pursuant to s. 627.062. The report shall be
472      compiled in a uniform format prescribed by the commission and
473      must include a graphical representation identifying a percentage
474      breakdown of rating factors anticipated of the company, book, or
475      program affected by the filing.

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         PCS for HB 1429                                                                                      2025




476              (b)       Along with an offer of coverage and upon renewal, an
477      insurer must provide the corresponding copy of the rate
478      transparency report for the consumer's offered rate to aid
479      consumers in their understanding of insurance. If the report has
480      not been accepted for use or modified by the office, the report
481      must indicate that it is preliminary and subject to modification
482      by the office.
483              (c)       The rate transparency report must include the
484      following categories of the book or program at the cumulative
485      level:
486              1.      The percentage of the total rate factor associated with
487      the cost of reinsurance.
488              2.      The percentage of the total rate factor associated with
489      the cost of claims.
490              3.      The percentage of the total rate factor associated with
491      the defense containment and costs.
492              4.      The percentage of the total rate factor associated with
493      fees and commissions.
494              5.      The percentage of the rate factor associated with
495      profit and contingency of the insurer.
496              6.      Any other categories deemed necessary by the office or
497      commission.
498
499      An estimated percentage of the influence of each listed factor
500      must be provided to equal 100 percent.

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         PCS for HB 1429                                                                                      2025




501              (d)       The insurer shall provide the rate transparency report
502      to the office upon the filing of a rate change with the office.
503              (e)       The rate transparency report must also include the
504      following information:
505              1.      Any major adverse findings by the office for the
506      previous 3 calendar years.
507              2.      Whether the insurer uses affiliated entities to perform
508      functions of the insurer.
509              3.      Contact information, to include a telephone number,
510      hours of service, and e-mail address for the Division of
511      Consumer Services of the department.
512              4.      Contact information for the office.
513              5.      Address for the website for public access to rate
514      filing and affiliate information outlined in subsection (3).
515              6.      Any changes in the total insured value from the last
516      policy period.
517              (f)       The office shall define, in concise and plain
518      language, any terms used with the rate transparency report to
519      aid consumers in their understanding of insurance.
520              (3)(2)       WEBSITE FOR PUBLIC ACCESS TO RATE FILING
521      INFORMATION.—
522              (a)       The office shall establish and maintain a
523      comprehensive resource center on its website that uses concise
524      and plain language to aid consumers in their understanding of
525      insurance. The website must include substantive information on

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         PCS for HB 1429                                                                                      2025




526      the current and historical dynamics of the market, data
527      concerning the financial condition and market conduct of
528      insurance companies available to consumers, and choices
529      available to consumers. At a minimum, the website must contain
530      the following:
531              1.      Reports, using graphical information wherever possible,
532      which outline information about the state of the market and
533      adverse and positive trends affecting it.
534              2.      Tools that aid consumers in finding insurers.
535              3.      Tools that aid consumers in selecting the coverages
536      beneficial to them.
537              4.      Information about mitigation credits and the My Safe
538      Florida Home Program, as well as other credits insurers may
539      offer beyond wind mitigation.
540              5.      Access to the rate transparency report, annual
541      statements, market conduct information, and other information
542      related to each insurer.
543              6.      Information on the Citizens Property Insurance
544      Corporation takeout process, the clearinghouse, and general
545      information as reported by the office.
546              7.(a)       With respect to any residential property rate
547      filing, the office shall provide the following information on a
548      publicly accessible Internet website:
549              a.1.        The overall rate change requested by the insurer.
550              b.2.        The rate change approved by the office along with all

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         PCS for HB 1429                                                                                      2025




551      of the actuary's assumptions and recommendations forming the
552      basis of the office's decision.
553              c.3.        Certification by the office's actuary that, based on
554      the actuary's knowledge, his or her recommendations are
555      consistent with accepted actuarial principles.
556              d.      Whether the insurer uses affiliated entities to perform
557      administrative, claims handling, or other functions of the
558      insurer and, if so, the total percentage of direct written
559      premium paid to the affiliated entities by the insurer in the
560      preceding annual calendar year.
561              (b)       For any rate filing, regardless of whether or not the
562      filing is subject to a public hearing, the office shall provide
563      on its website a means for any policyholder who may be affected
564      by a proposed rate change to send an e-mail regarding the
565      proposed rate change. Such e-mail must be accessible to the
566      actuary assigned to review the rate filing.
567              (c)       The statewide average requested rate change and final
568      approved statewide average rate change within a filing is not a
569      trade secret as defined in s. 688.002 or s. 812.081(1) and is
570      not subject to the public records exemption for trade secrets
571      provided in s. 119.0715 or s. 624.4213.
572              (d)       County rating examples submitted to the office through
573      the rate collection system for the purposes of displaying rates
574      on the office website are not a trade secret as defined in s.
575      688.002 or s. 812.081(1) and are not subject to the public

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         PCS for HB 1429                                                                                      2025




576      records exemption for trade secrets provided in s. 119.0715 or
577      s. 624.4213.
578              Section 7.         Paragraph (b) of subsection (3) of section
579      627.0645, Florida Statutes, is amended to read:
580              627.0645          Annual filings.—
581              (3)       The filing requirements of this section shall be
582      satisfied by one of the following methods:
583              (b)       If no rate change is proposed, a filing which consists
584      of a certification by an actuary that the existing rate level
585      produces rates which are actuarially sound and which are not
586      inadequate, as defined in s. 627.062. However, for residential
587      property and private passenger motor vehicle insurers, a full
588      rate filing is required after 2 consecutive years of
589      certification under this paragraph.
590              Section 8.         Paragraph (b) of subsection (1) of section
591      627.0651, Florida Statutes, is amended to read:
592              627.0651          Making and use of rates for motor vehicle
593      insurance.—
594              (1)       Insurers shall establish and use rates, rating
595      schedules, or rating manuals to allow the insurer a reasonable
596      rate of return on motor vehicle insurance written in this state.
597      A copy of rates, rating schedules, and rating manuals, and
598      changes therein, shall be filed with the office under one of the
599      following procedures:
600              (b)       If the filing is not made in accordance with the

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         PCS for HB 1429                                                                                      2025




601      provisions of paragraph (a), such filing shall be made as soon
602      as practicable, but no later than 30 days after the effective
603      date, and shall be considered a "use and file" filing. An
604      insurer making a "use and file" filing is potentially subject to
605      an order by the office to return to policyholders portions of
606      rates found to be excessive, as provided in subsection (11). For
607      purposes of this paragraph, an insurer may not submit more than
608      one "use and file" filing impacting policyholders within a
609      single policy period.
610              Section 9.         Paragraph (ll) of subsection (6) of section
611      627.351, Florida Statutes, is amended to read:
612              627.351       Insurance risk apportionment plans.—
613              (6)       CITIZENS PROPERTY INSURANCE CORPORATION.—
614              (ll)1.       In addition to any other method of alternative
615      dispute resolution authorized by state law, the corporation may
616      adopt policy forms that provide an option for the insured to
617      select, at the time of entering into the policy or upon renewal,
618      to have disputes regarding the corporation’s claim
619      determinations for the resolution of disputes regarding its
620      claim determinations, including disputes regarding coverage for,
621      or the scope and value of, a claim, resolved through arbitration
622      in a proceeding before the Division of Administrative Hearings.
623      Each insured must be notified in writing, at the time of
624      entering into a policy with the corporation and upon each
625      renewal, that the insured must decide whether to resolve

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         PCS for HB 1429                                                                                      2025




626      disputes through arbitration before the Division of
627      Administrative Hearings. Such notification must be in at least
628      12-point boldfaced type, immediately preceding the insured’s
629      signature in substantially the following form:
630
631      AN INSURED MUST CHOOSE AT THE TIME OF ENTERING INTO THIS POLICY
632      OR UPON RENEWAL WHETHER TO RESOLVE DISPUTES THROUGH ARBITRATION
633      BEFORE THE DIVISION OF ADMINISTRATIVE HEARINGS. THE INSURED MUST
634      INDICATE THIS SELECTION BY MARKING ‘ACCEPT’ OR ‘DECLINE’ BELOW.
635      THIS DECISION CANNOT BE CHANGED DURING THE TERM OF THE POLICY.
636
637      Any such policies are not subject to s. 627.70154. All
638      arbitrations before proceedings in the Division of
639      Administrative Hearings pursuant to such policies are subject to
640      ss. 57.105 and 768.79 as if filed in the courts of this state
641      and are not considered chapter 120 administrative proceedings.
642      Rule 1.442, Florida Rules of Civil Procedure, applies to any
643      offer served pursuant to s. 768.79, except that, notwithstanding
644      any provision in Rule 1.442, Florida Rules of Civil Procedure,
645      to the contrary, an offer shall not be served earlier than 10
646      days after filing the request for hearing with the Division of
647      Administrative Hearings and shall not be served later than 10
648      days before the date set for the final hearing. The
649      administrative law judge in such arbitrations proceedings shall
650      award attorney fees and other relief pursuant to ss. 57.105 and

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         PCS for HB 1429                                                                                      2025




651      768.79. The corporation may not seek, and the office may not
652      approve, a maximum hourly rate for attorney fees.
653              2.      The corporation may contract with the division to
654      conduct proceedings to resolve disputes regarding its claim
655      determinations as may be provided for in the applicable policies
656      of insurance. This subparagraph expires July 1, 2025.
657              Section 10.           Paragraphs (c), (d), and (e) are added to
658      subsection (2) of section 627.711, Florida Statutes, to read:
659              627.711       Notice of premium discounts for hurricane loss
660      mitigation; uniform mitigation verification inspection form.—
661              (2)
662              (c)       The office shall contract with a state university to
663      design, operate, upgrade, and maintain a statewide database for
664      uniform mitigation verification inspection forms. This database
665      must be managed by the office to collect and evaluate mitigation
666      features of residential properties within the state.
667              (d)       Beginning January 1, 2026, each insurer shall
668      electronically file a copy of uniform mitigation inspection
669      forms submitted by policyholders in the database created
670      pursuant to paragraph (c) within 15 business days after receipt
671      using the electronic format prescribed by the office.
672              (e)       The Financial Services Commission shall adopt rules to
673      implement this subsection.
674              Section 11.           Section 628.371, Florida Statutes, is amended
675      to read:

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         PCS for HB 1429                                                                                      2025




676              628.371       Dividends to stockholders.—
677              (1)       As used in this section, the term "affiliated entity"
678      has the same meaning as in s. 624.347(1).
679              (2)(1)       A domestic stock insurer or an affiliated entity
680      shall not pay any dividend or distribute cash or other property
681      to stockholders except out of that part of its available and
682      accumulated surplus funds which is derived from realized net
683      operating profits on its business and net realized capital
684      gains.
685              (3)(2)       Dividend payments or distributions to stockholders,
686      without prior written approval of the office, shall not exceed
687      the larger of:
688              (a)       The lesser of 10 percent of surplus or net gain from
689      operations (life and health companies) or net income (property
690      and casualty companies), not including realized capital gains,
691      plus a 2-year carryforward for property and casualty companies;
692              (b)       Ten percent of surplus, with dividends payable
693      constrained to unassigned funds minus 25 percent of unrealized
694      capital gains;
695              (c)       The lesser of 10 percent of surplus or net investment
696      income (net gain before capital gains for life and health
697      companies) plus a 3-year carryforward (2-year carryforward for
698      life and health companies) with dividends payable constrained to
699      unassigned funds minus 25 percent of unrealized capital gains.
700              (4)(3)       In lieu of the provisions in subsection (3) (2), an

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         PCS for HB 1429                                                                                      2025




701      insurer or an affiliated entity may pay a dividend or make a
702      distribution without the prior written approval of the office
703      when:
704              (a)       The dividend is equal to or less than the greater of:
705              1.      Ten percent of the insurer's or the affiliated entity's
706      surplus as to policyholders derived from realized net operating
707      profits on its business and net realized capital gains; or
708              2.      The insurer's or the affiliated entity's entire net
709      operating profits and realized net capital gains derived during
710      the immediately preceding calendar year; and
711              (b)       The insurer or the affiliated entity will have surplus
712      as to policyholders equal to or exceeding 115 percent of the
713      minimum required statutory surplus as to policyholders after the
714      dividend or distribution is made; and
715              (c)       The insurer or the affiliated entity has filed notice
716      with the office at least 10 business days before prior to the
717      dividend payment or distribution, or such shorter period of time
718      as approved by the office on a case-by-case basis. Such notice
719      shall not create a right in the office to approve or disapprove
720      a dividend otherwise properly payable hereunder; and
721              (d)       The notice includes a certification by an officer of
722      the insurer or the affiliated entity attesting that after
723      payment of the dividend or distribution the insurer or the
724      affiliated entity will have at least 115 percent of required
725      statutory surplus as to policyholders.

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         PCS for HB 1429                                                                                      2025




726              (5)(4)       The office shall not approve a dividend or
727      distribution in excess of the maximum amount allowed in
728      subsection (2) (1) unless, considering the following factors, it
729      determines that the distribution or dividend would not
730      jeopardize the financial condition of the insurer or the
731      affiliated entity:
732              (a)       The liquidity, quality, and diversification of the
733      insurer's assets and the effect on its ability to meet its
734      obligations.
735              (b)       Reduction of investment portfolio and investment
736      income.
737              (c)       Effects on the written premium to surplus ratios as
738      required by the Florida Insurance Code.
739              (d)       Industrywide financial conditions.
740              (e)       Prior dividend distributions of the insurer or the
741      affiliated entity.
742              (f)       Whether the dividend is only a "pass-through" dividend
743      from a subsidiary of the insurer or the affiliated entity.
744              (6)(5)       A dividend or distribution by a not-for-profit
745      insurance company subsidiary to its mutual insurance holding
746      company, directly or indirectly through one or more intermediate
747      holding companies, pursuant to part III of this chapter, which
748      meets the requirements of this section and which applies to a
749      stock insurer, is permitted under this section.
750              (7)       Approval of a dividend, distribution, or other

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         PCS for HB 1429                                                                                      2025




751      financial arrangement under this section must comply with the
752      requirements of s. 624.347.
753              Section 12.           Section 628.372, Florida Statutes, is created
754      to read:
755              628.372       Authority over affiliate dividends.—
756              (1)       The office has oversight and regulatory authority over
757      the issuance of dividends or other financial arrangements paid
758      to an affiliate.
759              (2)       There may be no declaration or distribution of such
760      dividends or other financial arrangements without prior approval
761      of the office.
762              (3)       Dividends and other financial arrangements must comply
763      with the requirements of s. 624.347.
764              (4)       Any unauthorized dividend, distribution, or other
765      financial arrangement may result in penalties determined by the
766      office.
767              (5)       The office must adopt rules to implement this section.
768              Section 13.           Subsection (5) of section 629.011, Florida
769      Statutes, is amended, and subsections (6), (7), and (8) are
770      added to that section, to read:
771              629.011       Definitions.—As used in this part, the term:
772              (4)       "Distribution" means any transfer of money from the
773      reciprocal insurer to subscribers other than for the payment of
774      a claim, settlement of a legal dispute, or return of principle.
775              (6)(5)       "Reciprocal insurer" means an unincorporated

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         PCS for HB 1429                                                                                      2025




776      aggregation of subscribers operating individually and
777      collectively through an attorney in fact to provide reciprocal
778      insurance among themselves.
779              (a)       An assessable reciprocal insurer is a reciprocal
780      insurer that is able to levy an assessment on its subscribers to
781      make up any shortfall in capital and surplus to cover claims and
782      expenses as specified in s. 629.231.
783              (b)       A nonassessable reciprocal insurer is a reciprocal
784      insurer authorized under s. 629.091(3) or s. 629.291(5) to issue
785      policies where there is no recourse against subscribers for any
786      shortfall in capital and surplus to cover claims and expenses.
787              (7)       "Subscriber contribution" means any transfer of money
788      by a subscriber of a reciprocal insurer to the reciprocal
789      insurer in excess of the premium approved by the office, when
790      such money is counted as surplus for the reciprocal insurer or
791      used to pay surplus notes.
792              (8)       "Subscriber savings account" means any account in
793      which a reciprocal insurer assigns money for the benefit of an
794      individual subscriber, other than accounts holding money for the
795      payment of a specific claim by or settlement of a specific legal
796      dispute with that individual subscriber.
797              (9)       "Subscribers' advisory committee" means the committee
798      of a domestic reciprocal insurer which is formed in compliance
799      with s. 629.201 and represents the interests of the subscribers.
800              Section 14.           Section 629.071, Florida Statutes, is amended

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         PCS for HB 1429                                                                                      2025




801      to read:
802              629.071       Surplus funds required.—
803              (1)       An assessable A domestic reciprocal insurer hereunder
804      formed, if it has otherwise complied with the applicable
805      provisions of this code, may be authorized to transact insurance
806      if it has and thereafter maintains surplus funds of not less
807      than $3 million $250,000.
808              (2)       A nonassessable reciprocal insurer, if it has
809      otherwise complied with the applicable provisions of this code,
810      may be authorized to transact insurance if it has and thereafter
811      maintains a surplus as to policyholders which is equal to that
812      required under s. 624.408 for a domestic stock insurer
813      authorized to transact like kinds of insurance In addition to
814      the surplus required to be maintained under subsection (1), the
815      insurer shall have, when first so authorized, an expendable
816      surplus of not less than $750,000.
817              Section 15.           Effective upon this act becoming a law,
818      subsection (3) of section 629.081, Florida Statutes, is amended
819      to read:
820              629.081       Organization of reciprocal insurer.—
821              (3)       The filing must be accompanied by the application fee
822      required by s. 624.501(1)(a).
823              Section 16.           Section 629.082, Florida Statutes, is created
824      to read:
825              629.082       Reciprocal affiliates.—The attorney in fact of a

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         PCS for HB 1429                                                                                      2025




826      reciprocal insurer is an affiliated entity of the reciprocal for
827      purposes of s. 624.10.
828              Section 17.            Section 629.1015, Florida Statutes, is created
829      to read:
830              629.1015          Affiliate fees.—
831              (1)       Each reciprocal insurer doing business in this state
832      which pays a fee, commission, or other financial consideration
833      or payment to any affiliate directly or indirectly must provide
834      to the office documentation supporting that such fee,
835      commission, or other financial consideration or payment to any
836      affiliate is fair and reasonable for each service being provided
837      by contract. In determining whether the fee, commission, or
838      other financial consideration or payment is fair and reasonable,
839      the office must consider the following:
840              (a)       The actual cost of each service provided by an
841      affiliate;
842              (b)       The relative financial condition of the reciprocal
843      insurer and of the attorney in fact;
844              (c)       The level of debt and how that debt is serviced;
845              (d)       The amount of dividends paid by the attorney in fact
846      and its affiliates and for what purpose;
847              (e)       Whether the terms of the written contract benefit the
848      reciprocal insurer and are in the best interest of the
849      subscribers; and
850              (f)       Any other such information as the office reasonably

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         PCS for HB 1429                                                                                      2025




851      requires in making this determination.
852              (2)       For each agreement with an affiliate in force on July
853      1, 2025, each domestic reciprocal insurer shall provide to the
854      office no later than October 1, 2025, the cost incurred by the
855      affiliate to provide each service, the amount charged to the
856      domestic reciprocal insurer for each service, and the dollar
857      amount of fees forgiven, waived, or reimbursed by the affiliate
858      for the 2 most recent preceding years. If the total dollar
859      amount charged to the domestic reciprocal insurer was greater
860      than the total cost to provide services for either year, the
861      domestic reciprocal insurer must explain how it determined the
862      fee was fair and reasonable. For any proposed contract with an
863      affiliate effective after July 1, 2025, the domestic reciprocal
864      insurer must provide documentation to support that the fee,
865      commission, or other financial consideration or payment to the
866      affiliate is fair and reasonable.
867              Section 18.           Section 629.121, Florida Statutes, is amended
868      to read:
869              629.121       Attorney in fact Attorney's bond.—
870              (1)       Concurrently with the filing of the declaration
871      provided for in s. 629.081, the attorney in fact of a domestic
872      reciprocal insurer shall file with the office a bond in favor of
873      this state for the benefit of all persons damaged as a result of
874      breach by the attorney in fact of the conditions of his or her
875      bond as set forth in subsection (2). The bond shall be executed

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         PCS for HB 1429                                                                                      2025




876      by the attorney in fact and by an authorized corporate surety
877      and shall be subject to the approval of the office.
878              (2)       The bond shall be in the sum of $300,000 $100,000,
879      aggregate in form, the bond conditioned that the attorney in
880      fact will faithfully account for all moneys and other property
881      of the insurer coming into his or her hands, and that he or she
882      will not withdraw or appropriate to his or her own use from the
883      funds of the insurer any moneys or property to which he or she
884      is not entitled under the power of attorney.
885              (3)       The bond shall provide that it is not subject to
886      cancellation unless 30 days' advance notice in writing of
887      cancellation is given both the attorney in fact and the office.
888              Section 19.           Section 629.162, Florida Statutes, is created
889      to read:
890              629.162       Subscriber contributions.—
891              (1)       Reciprocal insurers may, subject to prior approval by
892      the office, require contributions from subscribers in addition
893      to premiums approved by the office.
894              (2)       A reciprocal insurer shall clearly disclose required
895      subscriber contributions on the declarations page of any policy
896      issued by the reciprocal insurer, separate from any cost
897      associated with the premium.
898              (3)       Reciprocal insurers must provide subscribers an annual
899      report detailing how each dollar of subscriber contributions was
900      allocated or spent.

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         PCS for HB 1429                                                                                      2025




901              Section 20.           Section 629.163, Florida Statutes, is created
902      to read:
903              629.163       Subscriber savings accounts.—
904              (1)       Reciprocal insurers may establish subscriber savings
905      accounts.
906              (2)       Moneys assigned to subscriber savings accounts are not
907      considered distributions under s. 629.164.
908              (3)       Subscriber savings accounts are subject to the
909      following requirements:
910              (a)       Reciprocal insurers must inform each subscriber, in
911      writing, of the limitations and restrictions imposed upon the
912      use or possession of moneys assigned to subscriber savings
913      accounts.
914              (b)       Reciprocal insurers must inform each subscriber, in
915      writing, of the procedures used to assign moneys to subscriber
916      savings accounts and any calculations used to determine the
917      amount of moneys to be assigned to subscriber savings accounts.
918              (c)       Advertisements marketing the benefits of subscriber
919      savings accounts must note the limitations and restrictions
920      imposed upon the use or possession of moneys assigned to
921      subscriber savings accounts.
922              (d)       Upon cancellation or nonrenewal of a subscriber's
923      policy or policies, the subscriber is entitled, within 60 days,
924      to all moneys assigned to the subscriber's savings account,
925      except when such moneys are otherwise allocated by law or

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         PCS for HB 1429                                                                                      2025




926      contract, or when such assignment is prohibited by order of the
927      office.
928              Section 21.           Section 629.164, Florida Statutes, is created
929      to read:
930              629.164       Subscriber distributions.—
931              (1)       Reciprocal insurers may make distributions to
932      subscribers from their subscriber savings accounts.
933              (2)       The subscribers' advisory committee shall have the
934      sole authority to authorize distributions, subject to prior
935      written approval by the office.
936              (3)       Any reciprocal insurer that otherwise authorizes
937      distributions but prohibits subscribers from receiving
938      distributions for a specified period of time, including after
939      initial subscription, must renew the subscriber's policy for
940      that period of time plus 1 additional policy year. This
941      subsection does not prohibit the cancellation or nonrenewal of a
942      policy pursuant to s. 624.4133 or by order of the office.
943              (4)       A reciprocal insurer may return to its subscribers any
944      unused premiums, savings, or credits accruing to their accounts.
945      Such distribution may not unfairly discriminate between classes
946      of risks or policies, or between subscribers, but may vary as to
947      classes of subscribers based on the experience of the classes.
948              (5)       In addition to the option provided in subsection (4),
949      a domestic reciprocal insurer may, upon the prior written
950      approval of the office, pay to its subscribers a portion of

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         PCS for HB 1429                                                                                      2025




951      unassigned funds of up to 10 percent of surplus, with
952      distribution limited to 50 percent of net income from the
953      previous calendar year. Such distribution may not unfairly
954      discriminate between classes of risks or policies, or between
955      subscribers, but may vary as to classes of subscribers based on
956      the experience of the classes.
957              (6)       Distributions and other financial arrangements must
958      comply with the requirements of s. 624.347.
959              Section 22.           Section 629.171, Florida Statutes, is amended
960      to read:
961              629.171       Annual statement.—
962              (1)       The subscribers' advisory committee shall procure an
963      audited annual statement of the accounts and records of the
964      insurer and the attorney in fact. The statement of the insurer
965      must be prepared by an independent auditor at the expense of the
966      reciprocal insurer and must be available for inspection by any
967      subscriber. The statement of the attorney in fact must be
968      prepared by an independent auditor at the expense of the
969      attorney in fact.
970              (2)(1)       The annual statement filing of a reciprocal insurer
971      must shall be submitted made and filed by its attorney in fact.
972              (3)(2)       The audited statement of the attorney in fact must
973      shall be submitted with the annual statement filing of the
974      reciprocal insurer, as required under s. 624.424, and
975      supplemented by such information as may be required by the

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          PCS for HB 1429                                                                                      2025




976       office relative to the affairs and transactions of the attorney
977       in fact relating insofar as they relate to the reciprocal
978       insurer.
979               Section 23.           Subsection (1) of section 629.181, Florida
980       Statutes, is amended to read:
981               629.181       Financial condition; method of determining.—In
982       determining the financial condition of a reciprocal insurer, the
983       office shall apply the following rules:
984               (1)       Subscriber contributions are The surplus deposits of
985       subscribers shall be allowed as assets, except that any premium
986       deposits delinquent for 90 days must shall first be charged
987       against such subscriber contributions. Subscriber contributions
988       may not exceed 2 percent of each individual subscribers' policy
989       premium for a nonassessable reciprocal insurer and 10 percent of
990       each individual subscribers' policy premium for an assessable
991       reciprocal insurer surplus deposit.
992               Section 24.           Section 629.201, Florida Statutes, is amended
993       to read:
994               629.201       Subscribers' advisory committee.—Each domestic
995       reciprocal insurer must have a subscribers' advisory committee
996       representing the interests of the subscribers.
997               (1)       The subscribers' advisory committee of a domestic
998       reciprocal insurer exercising the subscribers' rights must shall
999       be formed in compliance with this section and selected under
1000      such rules as the subscribers adopt. Such rules, along with any

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          PCS for HB 1429                                                                                      2025




1001      amendments, must be approved by the office before becoming
1002      effective.
1003              (2)       Not less than two-thirds of such committee shall be
1004      subscribers other than the attorney, or any person employed by,
1005      representing, or having a financial interest in the attorney.
1006              (2)(3)       The subscribers' advisory committee shall perform
1007      all of the following duties:
1008              (a)       Supervise the finances of the insurer.;
1009              (b)       Supervise the insurer's operations to such extent as
1010      to ensure assure conformity with the subscribers' agreement, and
1011      power of attorney, and other governing documents.;
1012              (c)       Hire independent auditors, counsel, and other experts
1013      at the expense of the insurer as necessary to fulfill the
1014      committee's duties. Procure the audit of the accounts and
1015      records of the insurer and of the attorney at the expense of the
1016      insurer; and
1017              (d)       Exercise any Have such additional powers and functions
1018      as may be conferred by the subscribers' agreement.
1019              (3)       The initial subscribers' advisory committee must be
1020      appointed by the original subscribers or the attorney in fact.
1021      Within 6 months after the reciprocal insurer is authorized to
1022      transact insurance, at least two-thirds of the committee members
1023      must be elected as provided for in subsections (4) and (5).
1024              (4)       The subscribers' advisory committee must be composed
1025      of subscribers of the reciprocal insurer. At least two-thirds of

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          PCS for HB 1429                                                                                      2025




1026      the subscribers' advisory committee must be composed of
1027      subscribers who are independent of, not employed by, not
1028      representing, not selected by, and without any financial
1029      interest in the attorney in fact. The independent subscribers
1030      must be elected by the subscribers of the reciprocal insurer.
1031              (5)       Any rules governing the election of subscribers to the
1032      subscribers' advisory committee require all of the following:
1033              (a)       An electorate composed exclusively of all subscribers
1034      of the reciprocal insurer.
1035              (b)       Terms of not more than 5 years.
1036              (c)       A process that allows subscribers to nominate other
1037      subscribers for election to the subscribers' advisory committee.
1038              (6)       If a reciprocal insurer has more than 50 subscribers,
1039      the attorney in fact must provide a platform by which
1040      subscribers can communicate with each other regarding the
1041      subscribers' advisory committee election process.
1042              Section 25.           Section 629.271, Florida Statutes, is
1043      repealed.
1044              Section 26.           Effective upon this act becoming a law,
1045      subsections (1) and (2) of section 629.291, Florida Statutes,
1046      are amended to read:
1047              629.291       Merger or conversion.—
1048              (1)       A reciprocal insurer, upon affirmative vote of not
1049      less than two-thirds of its subscribers who vote on such merger
1050      or conversion pursuant to due notice, and subject to approval by

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          PCS for HB 1429                                                                                      2025




1051      the office of the terms therefor, may merge with another
1052      reciprocal insurer or be converted to a stock or mutual insurer,
1053      to be thereafter governed by the applicable sections of the
1054      Florida Insurance Code. However, a domestic stock insurer may
1055      not convert to a reciprocal insurer.
1056              (2)       A plan to merge a reciprocal insurer with another
1057      reciprocal insurer or for conversion of the reciprocal insurer
1058      to a stock or mutual insurer must be filed with the office on
1059      forms adopted by the commission office and must contain such
1060      information as the office reasonably requires to evaluate the
1061      transaction.
1062              Section 27.           Section 629.301, Florida Statutes, is amended
1063      to read:
1064              629.301       Impaired reciprocal insurers.—
1065              (1)       If the assets of a domestic reciprocal insurer are at
1066      any time insufficient to discharge its liabilities, other than
1067      any liability on account of funds contributed by the attorney in
1068      fact or others, and to maintain the required surplus, its
1069      attorney in fact must immediately forthwith make up the
1070      deficiency or levy an assessment upon the subscribers for the
1071      amount needed to make up the deficiency, but subject to the
1072      limitation set forth in the power of attorney or policy.
1073              (2)       If the attorney in fact fails to make up such
1074      deficiency or to make the assessment within 30 days after the
1075      office orders the attorney in fact him or her to do so, or if

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          PCS for HB 1429                                                                                      2025




1076      the deficiency is not fully made up within 60 days after the
1077      date the assessment was made, the insurer is deemed insolvent
1078      and must be proceeded against in the same manner as any other
1079      insurer under chapter 631 and the insurance as authorized by
1080      this code.
1081              (3)       If liquidation of a reciprocal such an insurer is
1082      ordered, the receiver must levy an assessment shall be levied
1083      upon the subscribers an assessment for such an amount as the
1084      receiver determines to be necessary to discharge all liabilities
1085      of the insurer. The liabilities must be, subject to limits as
1086      provided by this chapter, as the office determines to be
1087      necessary to discharge all liabilities of the insurer, exclusive
1088      of any funds contributed by the attorney in fact or other
1089      persons, but inclusive of including the reasonable cost of the
1090      liquidation. The assessment is subject to any limits set forth
1091      in the power of attorney, the subscribers’ agreement, the
1092      policy, or this chapter.
1093              Section 28.           Section 629.401, Florida Statutes, is
1094      repealed.
1095              Section 29.           Section 629.520, Florida Statutes, is
1096      repealed.
1097              Section 30.           Section 629.56, Florida Statutes, is created
1098      to read:
1099              629.56       Unearned premium reserves.—A reciprocal insurer
1100      must maintain an unearned premium reserve at all times and as

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          PCS for HB 1429                                                                                      2025




1101      required under s. 625.051.
1102              Section 31.           Reciprocal insurers licensed before July 1,
1103      2025, have until July 1, 2026, to comply with the changes made
1104      to subscribers' advisory committees in s. 629.201, Florida
1105      Statutes. Reciprocal insurers licensed before July 1, 2025, have
1106      until July 1, 2027, to comply with the changes made to unearned
1107      premium reserve requirements imposed under s. 629.56, Florida
1108      Statutes.
1109              Section 32.           Except as otherwise expressly provided in this
1110      act and except for this section, which shall take effect upon
1111      this act becoming a law, this act shall take effect July 1,
1112      2025.




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