PCS for HB 1429 (2025): An act relating to insurance regulations
Summary
PCS for HB 1429 2025 is a bill to be entitled an act relating to insurance regulations. It creates a section requiring the Department of Law Enforcement to accept and process fingerprints of persons involved in the organization, operation or management of certain insurers, and directs the Office of Insurance Regulation and the Financial Services Commission to adopt cybersecurity rules. It sets standards for compensation arrangements and oversight of affiliate transactions involving insurers, managing general agents and attorneys in fact, and requires residential property insurers' rate filings to include rate transparency reports. Section 30 creates a section requiring a reciprocal insurer to maintain an unearned premium reserve at all times.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“PCS for HB 1429 (2025): An act relating to insurance regulations.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-3289-insurance-banking-subcommittee-proposed-committee-bills-pcbs-1901b026e2/
, SHA-256 c4503271f785679afe7efa31d4a20ccdc34a896643515a73a06b534043a2940c.Full text
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 1 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 2 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 3 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 4 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 5 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.—
Page 6 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 7 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 8 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 9 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 10 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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,
Page 11 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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)
Page 12 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 13 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.—
Page 14 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 15 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.
Page 16 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 17 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 18 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.
Page 19 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.
Page 20 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 21 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 22 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 23 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 24 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 25 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 26 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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:
Page 27 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 28 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.
Page 29 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 30 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 31 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 32 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 33 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 34 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 35 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.
Page 36 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 37 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 38 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 39 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 40 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 41 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 42 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 43 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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
Page 44 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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.
Page 45 of 45
CODING: Words stricken are deletions; words underlined are additions.
PCS for HB 1429
File and source
- File
- 2025_3289_insurance-banking-subcommittee_proposed-committee-bills-pcbs_fn-pcs-for-hb-1429.pdf
- Size
- 299,737 bytes
- SHA-256
- c4503271f785679afe7efa31d4a20ccdc34a896643515a73a06b534043a2940c
- Our copy
- 2025_3289_insurance-banking-subcommittee_proposed-committee-bills-pcbs_fn-pcs-for-hb-1429.pdf
- Original
- No public link identified.