Meeting Packet - Insurance & Banking Subcommittee, Florida House of Representatives, January 14, 2026

Summary

A meeting packet of the Insurance & Banking Subcommittee of the Florida House of Representatives for Wednesday, January 14, 2026, 4:00 PM - 6:00 PM. The notice lists consideration of HB 645 Limited Agent Licenses and HB 863 Arbitration for Disputes with Citizens Property Insurance Corporation. The bill analysis of HB 645 states that the bill expands the scope of limited agent licenses to include eyewear insurance, covering both smart glasses and non-electronic eyewear, and extends claims processing exemptions for portable electronic device insurance claims to eyewear insurance claims, effective July 1, 2026. The packet ends with the text of HB 863, which addresses arbitrations before the Division of Administrative Hearings.

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Insurance & Banking Subcommittee
Wednesday, January 14, 2026
4:00 PM - 6:00 PM
Morris Hall (17 HOB)

Meeting Packet

Daniel Perez Bradford Yeager
Speaker Chair
Committee Meeting Notice
HOUSE OF REPRESENTATIVES

Insurance & Banking Subcommittee

Start Date and Time: Wednesday, January 14, 2026 04:00 PM

End Date and Time: Wednesday, January 14, 2026 06:00 PM

Location: Morris Hall (17 HOB)
Duration: 2.00 hrs

Consideration of the following bill(s):

HB 645 Limited Agent Licenses by Smith
HB 863 Arbitration for Disputes with Citizens Property Insurance Corporation by Benarroch

NOTICE FINALIZED on 01/12/2026 4:30PM by Young.Kimberly

01/12/2026 04:30:37PM Leagis ® Page 1 of 1
HB 645
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 645 COMPANION BILL: None
TITLE: Limited Agent Licenses LINKED BILLS: None
SPONSOR(S): Smith RELATED BILLS: SB 772 (Burgess)
Committee References
Insurance & Banking Commerce


SUMMARY
Effect of the Bill:
The bill expands the scope of limited agent licenses to include eyewear insurance, explicitly covering both smart
glasses and non-electronic eyewear. The bill also extends claims processing exemptions specifically for portable
electronic device insurance claims to eyewear insurance claims.

Fiscal or Economic Impact:
The bill may have an indeterminate fiscal impact on the state and private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill expands the scope of practice for portable electronics insurance limited agent licenses by allowing such
limited agent licensees to sell eyewear insurance. (Section 1)

The bill establishes defines “eyewear” to include “smart glasses” and “nonelectronic eyewear.” The bill also defines
“nonelectronic eyewear” to encompass “prescription and nonprescription eyeglasses and sunglasses.” (Section 1)

The bill expands claims processing exemptions for portable electronic device insurance claims to also include
eyewear insurance claims. (Section 4)

The bill provides an effective date of July 1, 2026. (Section 5)

FISCAL OR ECONOMIC IMPACT:

STATE GOVERNMENT:
There may be an indeterminate fiscal impact on the Department of Financial Services associated with the
administration and regulation of limited agent licenses for eyewear insurance.

PRIVATE SECTOR:
The bill may have an indeterminate impact on the insurance marketplace by authorizing the offering of a new
insurance product recognized under state law.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Limited Agent Licenses
STORAGE NAME: h0645.IBS
DATE: 1/12/2026
1
HB 645
Limited agent licenses are insurance licenses that allow an individual or business to sell, solicit, or service only
specific, limited classes of insurance, rather than the full range of insurance products.1 The Department of Financial
Services currently issues limited agent licenses for the following insurance types: 2
 motor vehicle physical damage and mechanical breakdown;
 industrial fire or burglary;
 travel;
 motor vehicle rental;
 credit;
 crop hail and multiple-peril crop;
 in-transit and storage personal property;
 portable electronics; and
 preneed funeral agreement.

Applicants for limited agent licenses for portable electronics insurance, travel, motor vehicle rental, credit, or in-
transit and storage of personal property are not required to pass a written examination as a condition of licensure.3
Additionally, applicants for these limited agent insurance licenses are not subject to knowledge, experience, or
instructional requirements as a condition of licensure.4 Portable electronic insurance limited agent licensees are
also exempt from fingerprinting requirements.5

Definition of Portable Electronic Devices
“Portable electronics” are defined as personal, self-contained, easily transportable, battery-operated electronic
devices used for communication, viewing, listening, recording, gaming, computing or global positioning. The term
includes, but is not limited to, cellular or satellite phones, pagers, personal global positioning units, portable
computers, portable audio -listening devices, video-viewing or recording equipment, digital cameras, video
camcorders, portable gaming systems, docking stations, automatic answering devices, and other similar devices
with their accessories and service related to the use of such devices.6

Portable Electronics Insurance Limited Agent Licenses
Portable electronics insurance limited agent licenses authorize the sale, solicitation, and servicing of property or
inland marine insurance that specifically provides coverage for the loss, theft, mechanical failure, malfunction or
damage of portable electronic devices.7

Licensure may only be issued to employees or authorized representatives of licensed general lines agents,8or the
lead business location of a retail vendor who sells portable electronics insurance and has a contract with a general
lines agent.9

Employees and authorized representatives of licensed vendors may sell or offer portable electronics insurance
without obtaining individual insurance agent licenses, provided that sales occur at licensed locations or properly
appointed branch locations.10

1S. 626.321(1), F.S.
2S. 626.321, F.S.
3S. 626.221(2)(b), F.S.
4S. 626.732(7), F.S.
5Id.
6S. 626.321(1)(h), F.S.
7Id.
8 “General lines agent” means an agent authorized to transact any one or more of the following insurances: property, casualty,

surety, health, or marine. See S. 626.311(7), F.S. They also may sell portable electronics insurance at licensed agency locations
without a separate license. S. 626.321(1)(h), F.S.
9S. 626.321(1)(h), F.S.
10“Branch location” means any physical location in Florida at which a licensee offers its products or services for sale. A location

may be authorized to transact insurance under the associated lead business location licensee. A portable electronics insurance
limited agent license is required if the location is not otherwise licensed to transact insurance. S. 626.321(1)(h), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
HB 645

Sales must be directly supervised by the issuing insurer or by a general lines agent appointed by the insurer.
Additionally, the issuing insurer or appointed general lines agent must provide oversight of the training program
for individuals engaged in soliciting insurance products.11

Individuals who are not licensed may not receive commissions based on insurance products sales. However,
licensees may incorporate incidental compensations for insurance product sales into a broader employee
compensation structure that also includes salary or wages and compensation for noninsurance product sales.12

At each point of sale, the licensee is required to make written consumer disclosures available to all prospective
clients, which may also describe related service warranties or incidental benefits.13 Written, mandatory disclosures
to consumers must: 14
 notify that coverage may duplicate insurance under homeowners, renters, or other polices;
 clarify that insurance coverage is not a condition of purchasing or leasing a portable electronic or related
service;
 summarize policy terms, including the insurer, deductibles, key coverage benefits and trigger;
 provide an outline of the claims process, including any requirements or associated fees; and
 provide a statement of the consumer’s right to cancel coverage at any time with a refund of unearned
premium.15

Licensees are authorized to bill and collect premiums. When insurance coverage is included with the purchase or
lease of portable electronic devices, the licensee must clearly disclose that coverage is included and separately
disclose the stand-alone premium cost. When coverage is optional, the premium must be separately itemized at
sale. Collected premiums must be tracked, remitted to the insurer or supervising entity within 60 days, and treated
as trust funded held for the insurer. Licensees may be compensated for billing and collection activities.16

Portable Electronics Insurance Claims Processing Exemptions
Generally, individuals need a license to handle insurance claims. However, individuals processing portable
electronics insurance claims do not need an individual license if they only collect or enter claims information, work
for a licensed insurance business, or are supervised by a licensed insurance adjuster17or agent. No more than 25
unlicensed individuals can be supervised by any one licensed adjuster or agent.18 A Canadian resident cannot
obtain a Florida nonresident adjuster license to handle portable electronics claims unless they have already
obtained an adjuster’s license in another U.S. state.19

Unlicensed individuals can use an automated claims adjudication system20 for portable electronic claims, given that
system is only used by licensed or supervised individuals, compliant with all Florida insurance code claim payment
requirements, and certified as compliant by a licensed adjuster who is an officer of the business entity.21

11 S. 626.321(1)(h), F.S.
12Id.
13Id.
14Id.
15 Policy terms provide the framework for coverage modification or termination. Required notices and correspondences can

be delivered electronically if proof of transmission is maintained and customers are informed that providing an email address
constitutes consent to electronic delivery. S. 626.321(1)(h), F.S.
16S. 626.321(1)(h), F.S.
17“Adjuster” means a public adjuster defined in s. 626.854, F.S. or an all-lines adjuster as defined in s. 626.8548, F.S.. S.

626.015(2), F.S.
18S. 626.8685(1), F.S.
19S. 626.8685(2), F.S.
20“Automated claims adjudication system” means a preprogrammed computer system designed to fully, electronically resolve

claims. See S. 626.8685(1), F.S.
21S. 626.8685(1), F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
HB 645
Eyewear Insurance vs. Current Insurance Marketplace Options
There is currently no statutory or regulatory framework establishing “eyewear insurance” as a licensed insurance
product in Florida.22 Products marketed as such are limited warranties or protection plans provided by the retailer
or manufacturer to cover defects or accidental damage under contract terms.23 As such, products do not have the
regulatory status, obligations, or consumer protections of true insurance products.

Vision insurance is designed to cover routine eye care exams and corrective eyewear.24 While coverage can vary by
plan, most plans include coverage for routine eye exams, allowances for eyeglass frames and/or prescription
lenses every 1-2 years, and allowances for contact lenses. Vision insurance typically excludes eligibility for non-
prescriptive eyeglasses, contact lenses, sunglasses, and reading glasses.25

Smart Glasses
Early research in wearable computing and optics took place in the early 1990s, with researchers developing head-
mounted devices that are largely credited to be the foundational work for smart glasses. The first widely
recognized smart glasses were released in 2013 as wearable tech with a heads-up display, voice control, and
camera.26

The following years have led to the development of prescriptive and nonprescriptive eyewear that can enable
augmented reality overlays, calls, video conferencing, and sending/receiving messages through microphones,
speakers, and Bluetooth or Wi-fi, photo and video capture through high resolution cameras, real-time digital
streaming, voice recognition controls, and AI assistance, among other features.27

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Veigle
Subcommittee
Commerce Committee

22See Ch. 626, F.S.
23See Ch. 501, F.S.
24Dawson, C., Medical Insurance vs. Vision Insurance, St. Lucie Eye, (September 25, 2024),

https://www.stlucieeye.com/medical-insurance-vs-vision-insurance/ (last visited January 7, 2026).
25Peralta, S., Vision Insurance: A guide to plans, costs, and benefits. All About Vision, (September 9, 2025),

https://www.allaboutvision.com/vision-insurance/coverage-benefits/what-is-vision-insurance (last visited January 7, 2026).
26Kelley, S., The Future of Wearables: What Are Smart Glasses? All About Vision, (November 11, 2025),

https://www.allaboutvision.com/eyewear/specialty/smart-glasses/ (last visited January 7, 2026).
27Sotech, What Do Smart Glasses Actually Do? (August 14, 2025), https://www.sotech-vision.com/What-Do-Smart-Glasses-

Actually-Do-id49482696.html? (last visited January 7, 2026).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 645 2026

1 A bill to be entitled
2 An act relating to limited agent licenses; amending s.
3 626.321, F.S.; renaming "portable electronics
4 insurance" as "portable electronics and eyewear
5 insurance" to include eyewear for purposes of
6 insurance coverages and licenses; defining the term
7 "eyewear"; removing the obsolete definition of the
8 term "portable electronics transaction"; amending ss.
9 626.221, 626.732, and 626.8685, F.S.; conforming
10 provisions to changes made by the act; providing an
11 effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (h) of subsection (1) and subsection
16 (4) of section 626.321, Florida Statutes, are amended to read:
17 626.321 Limited licenses and registration.—
18 (1) The department shall issue to a qualified applicant a
19 license as agent authorized to transact a limited class of
20 business in any of the following categories of limited lines
21 insurance:
22 (h) Portable electronics and eyewear insurance.—License
23 for property insurance or inland marine insurance that covers
24 only loss, theft, mechanical failure, malfunction, or damage for
25 portable electronics and eyewear.

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26 1. The license may be issued only to:
27 a. Employees or authorized representatives of a licensed
28 general lines agent; or
29 b. The lead business location of a retail vendor that
30 sells portable electronics and eyewear insurance. The lead
31 business location must have a contractual relationship with a
32 general lines agent.
33 2. Employees or authorized representatives of a licensee
34 under subparagraph 1. may sell or offer for sale portable
35 electronics and eyewear coverage without being subject to
36 licensure as an insurance agent if:
37 a. Such insurance is sold or offered for sale at a
38 licensed location or at one of the licensee's branch locations
39 if the branch location is appointed by the licensed lead
40 business location or its appointing insurers;
41 b. The insurer issuing the insurance directly supervises
42 or appoints a general lines agent to supervise the sale of such
43 insurance, including the development of a training program for
44 the employees and authorized representatives of vendors that are
45 directly engaged in the activity of selling or offering the
46 insurance; and
47 c. At each location where the insurance is offered,
48 brochures or other written materials that provide the
49 information required by this subparagraph are made available to
50 all prospective customers. The brochures or written materials

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HB 645 2026

51 may include information regarding portable electronics and
52 eyewear insurance, service warranty agreements, or other
53 incidental services or benefits offered by a licensee.
54 3. Individuals not licensed to sell portable electronics
55 and eyewear insurance may not be paid commissions based on the
56 sale of such coverage. However, a licensee who uses a
57 compensation plan for employees and authorized representatives
58 which includes supplemental compensation for the sale of
59 noninsurance products, in addition to a regular salary or hourly
60 wages, may include incidental compensation for the sale of
61 portable electronics and eyewear insurance as a component of the
62 overall compensation plan.
63 4. Brochures or other written materials related to
64 portable electronics and eyewear insurance must:
65 a. Disclose that such insurance may duplicate coverage
66 already provided by a customer's homeowners insurance policy,
67 renters insurance policy, or other source of coverage;
68 b. State that enrollment in insurance coverage is not
69 required in order to purchase or lease portable electronics and
70 eyewear or services;
71 c. Summarize the material terms of the insurance coverage,
72 including the identity of the insurer, the identity of the
73 supervising entity, the amount of any applicable deductible and
74 how it is to be paid, the benefits of coverage, and key terms
75 and conditions of coverage, such as whether portable electronics

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76 and eyewear may be repaired or replaced with similar make and
77 model reconditioned or nonoriginal manufacturer parts or
78 equipment;
79 d. Summarize the process for filing a claim, including a
80 description of how to return portable electronics and eyewear
81 and the maximum fee applicable if the customer fails to comply
82 with equipment return requirements; and
83 e. State that an enrolled customer may cancel coverage at
84 any time and that the person paying the premium will receive a
85 refund of any unearned premium.
86 5. A licensed and appointed general lines agent is not
87 required to obtain a portable electronics and eyewear insurance
88 license to offer or sell portable electronics and eyewear
89 insurance at locations already licensed as an insurance agency,
90 but may apply for a portable electronics and eyewear insurance
91 license for branch locations not otherwise licensed to sell
92 insurance.
93 6. A portable electronics and eyewear license authorizes
94 the sale of individual policies or certificates under a group or
95 master insurance policy. The license also authorizes the sale of
96 service warranty agreements covering only portable electronics
97 and eyewear to the same extent as if licensed under s. 634.419
98 or s. 634.420.
99 7. A licensee may bill and collect the premium for the
100 purchase of portable electronics and eyewear insurance provided

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101 that:
102 a. If the insurance is included with the purchase or lease
103 of portable electronics or eyewear or related services, the
104 licensee clearly and conspicuously discloses that insurance
105 coverage is included with the purchase. Disclosure of the stand-
106 alone cost of the premium for same or similar insurance must be
107 made on the customer's bill and in any marketing materials made
108 available at the point of sale. If the insurance is not
109 included, the charge to the customer for the insurance must be
110 separately itemized on the customer's bill.
111 b. Premiums are incidental to other fees collected, are
112 maintained in a manner that is readily identifiable, and are
113 accounted for and remitted to the insurer or supervising entity
114 within 60 days of receipt. Licensees are not required to
115 maintain such funds in a segregated account.
116 c. All funds received by a licensee from an enrolled
117 customer for the sale of the insurance are considered funds held
118 in trust by the licensee in a fiduciary capacity for the benefit
119 of the insurer. Licensees may receive compensation for billing
120 and collection services.
121 8. Notwithstanding any other provision of law, the terms
122 for the termination or modification of coverage under a policy
123 of portable electronics and eyewear insurance are those set
124 forth in the policy.
125 9. Notice or correspondence required by the policy, or

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126 otherwise required by law, may be provided by electronic means
127 if the insurer or licensee maintains proof that the notice or
128 correspondence was sent. Such notice or correspondence may be
129 sent on behalf of the insurer or licensee by the general lines
130 agent appointed by the insurer to supervise the administration
131 of the program. For purposes of this subparagraph, an enrolled
132 customer's provision of an electronic mail address to the
133 insurer or licensee is deemed to be consent to receive notices
134 and correspondence by electronic means if a conspicuously
135 located disclosure is provided to the customer indicating the
136 same.
137 10. The fingerprinting requirements in s. 626.171(4) do
138 not apply to licenses issued to qualified entities under this
139 paragraph.
140 11. A branch location that sells portable electronics and
141 eyewear insurance may, in lieu of obtaining an appointment from
142 an insurer or warranty association, obtain a single appointment
143 from the associated lead business location licensee and pay the
144 prescribed appointment fee under s. 624.501 if the lead business
145 location has a single appointment from each insurer or warranty
146 association represented and such appointment applies to the lead
147 business location and all of its branch locations. Branch
148 location appointments shall be renewed 24 months after the
149 initial appointment date of the lead business location and every
150 24 months thereafter. Notwithstanding s. 624.501, the renewal

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151 fee applicable to such branch location appointments is $30 per
152 appointment.
153 12. For purposes of this paragraph:
154 a. "Branch location" means any physical location in this
155 state at which a licensee offers its products or services for
156 sale.
157 b. "Eyewear" means smart glasses and nonelectronic
158 eyewear. As used in this sub-subparagraph, the term
159 "nonelectronic eyewear" includes prescription and
160 nonprescription eyeglasses and sunglasses.
161 c.b. "Portable electronics" means personal, self-
162 contained, easily carried by an individual, battery-operated
163 electronic communication, viewing, listening, recording, gaming,
164 computing or global positioning devices, including cell or
165 satellite phones, pagers, personal global positioning satellite
166 units, portable computers, portable audio listening, video
167 viewing or recording devices, digital cameras, video camcorders,
168 portable gaming systems, docking stations, automatic answering
169 devices, and other similar devices and their accessories, and
170 service related to the use of such devices.
171 c. "Portable electronics transaction" means the sale or
172 lease of portable electronics or a related service, including
173 portable electronics insurance.
174 (4) Except as otherwise expressly provided, a person
175 applying for or holding a limited license is subject to the same

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HB 645 2026

176 applicable requirements and responsibilities that apply to
177 general lines agents in general if licensed as to motor vehicle
178 physical damage and mechanical breakdown insurance, industrial
179 fire insurance or burglary insurance, motor vehicle rental
180 insurance, credit insurance, crop hail and multiple-peril crop
181 insurance, in-transit and storage personal property insurance,
182 or portable electronics and eyewear insurance; or as apply to
183 life agents or health agents in general, as applicable, if
184 licensed as to travel insurance.
185 Section 2. Paragraph (b) of subsection (2) of section
186 626.221, Florida Statutes, is amended to read:
187 626.221 Examination requirement; exemptions.—
188 (2) However, an examination is not necessary for any of
189 the following:
190 (b) An applicant for a limited license as agent for travel
191 insurance, motor vehicle rental insurance, credit insurance, in-
192 transit and storage personal property insurance, or portable
193 electronics and eyewear insurance under s. 626.321.
194 Section 3. Subsection (7) of section 626.732, Florida
195 Statutes, is amended to read:
196 626.732 Requirement as to knowledge, experience, or
197 instruction.—
198 (7) This section does not apply to an individual holding
199 only a limited license for travel insurance, motor vehicle
200 rental insurance, credit insurance, in-transit and storage

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201 personal property insurance, or portable electronics and eyewear
202 insurance.
203 Section 4. Section 626.8685, Florida Statutes, is amended
204 to read:
205 626.8685 Portable electronics and eyewear insurance
206 claims; exemption; licensure restriction.—
207 (1) This part does not apply to any individual who
208 collects claims information from, or furnishes claims
209 information to, insureds or claimants, and who conducts data
210 entry, including entering data into an automated claims
211 adjudication system, provided that the individual is an employee
212 of a business entity licensed under this chapter, or its
213 affiliate, and no more than 25 such persons are under the
214 supervision of one licensed independent adjuster or licensed
215 agent who is exempt from licensure pursuant to s. 626.862. For
216 purposes of this subsection, the term "automated claims
217 adjudication system" means a preprogrammed computer system
218 designed for the collection, data entry, calculation, and final
219 resolution of portable electronics and eyewear insurance claims
220 that:
221 (a) May be used only by a licensed independent adjuster,
222 licensed agent, or supervised individual operating pursuant to
223 this subsection;
224 (b) Must comply with all claims payment requirements of
225 the insurance code; and

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226 (c) Must be certified as compliant with this subsection by
227 a licensed independent adjuster that is an officer of a licensed
228 business entity under this chapter.
229 (2) Notwithstanding any other provision of law, a resident
230 of Canada may not be licensed as a nonresident independent
231 adjuster for purposes of adjusting portable electronics
232 insurance and eyewear claims unless the person has successfully
233 obtained an adjuster's license in another state.
234 Section 5. This act shall take effect July 1, 2026.

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HB 863
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 863 COMPANION BILL: None
TITLE: Arbitration for Disputes with Citizens Property LINKED BILLS: None
Insurance Corporation RELATED BILLS: None
SPONSOR(S): Benarroch
Committee References
Insurance & Banking Commerce


SUMMARY
Effect of the Bill:
The bill removes Citizens Property Insurance Corporations’ (Citizens) ability to require policyholders to resolve
claim disputes before the Division of Administrative Hearings (DOAH) without the policyholders’ consent. The bill
provides Citizens’ policyholders the option to accept or decline resolving claim disputes through binding
arbitration before DOAH. Policyholders must make this election at the issuance or renewal of their policy and it
cannot be amended mid-term. The bill also requires policyholders to receive a bold, standardized disclosure of this
election. The bill repeals the provision allowing Citizens to contract with DOAH to resolve

Fiscal or Economic Impact:
There may be an indeterminate state fiscal impact.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill repeals Citizens Property Insurance Corporations’ (Citizens) ability to require policyholders to resolve
claim disputes before the Division of Administrative Hearings (DOAH). (Section 1)

The bill authorizes Citizens to adopt policy forms that provide policyholders the option to select arbitration before
DOAH for resolving claim disputes. Under the bill, DOAH retains full authority to arbitrate claim disputes when the
policyholder elects arbitration before DOAH. However, Citizens is unable to require policyholders to use binding
arbitration to resolve claim disputes without the policyholders’ consent. (Section 1)

The bill requires each policyholder be notified in writing at policy inception and renewal that they must decide
whether or not to resolve disputes through arbitration before DOAH. The notification must be in at least 12-point
bold font immediately before the policyholder’s signature within the policy documents, and must be substantially
in the following form: (Section 1)

“AN INSURED MUST CHOOSE AT THE TIME OF ENTERING INTO THIS POLICY OR UPON
RENEWAL WHETHER TO RESOLVE DISPUTES THROUGH ARBITRATION BEFORE THE
DIVISION OF ADMINISTRATIVE HEARINGS. THE INSURED MUST INDICATE THIS
SELECTION BY MARKING "ACCEPT" OR "DECLINE" BELOW. THIS DECISION CANNOT BE
CHANGED DURING THE TERM OF THE POLICY.
[ ] ACCEPT
[ ] DECLINE”

STORAGE NAME: h0863.IBS
DATE: 1/12/2026
1
HB 863
The bill repeals the provision authorizing Citizens to contract with DOAH to resolve claim disputes. (Section 1)

The bill provides an effective date of July 1, 2026. (Section 2)

FISCAL OR ECONOMIC IMPACT:

STATE GOVERNMENT:
The bill may have an indeterminate fiscal impact on DOAH if policyholders decline arbitration. Additionally,
Citizens will no longer be able contract with DOAH to resolve claim disputes. The bill may have an indeterminate
fiscal impact on circuit courts if policyholders decline arbitration.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Citizens Property Insurance Corporation (Citizens)
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 in the voluntary market.1 Citizens was
created in 2002 by the Florida Legislature by combining the Florida Residential Property and Casualty Joint
Underwriting Association and the Florida Windstorm Underwriting Association.2

As of December 26, 2025, Citizens reports 395,912 active policies.3 By the end of 2025, Citizens’ policy count is
expected to fall to around 385,000. This would be the lowest reported policy count for Citizens since inception.4

From January 1 through September 30, 2025, Citizens was served with 4,307 lawsuits (roughly 479 suits/month).
Of these, 96% are first-party residential property suits, 1% are first-party commercial property suits, and 3% are
third-party liability suits. As of September 30, 2025, the total pending volume of lawsuits was 8,823. This is a 47%
decrease in total pending volume of 16,518 lawsuits from the same time period in 2024.5

Division of Administrative Hearings (DOAH)
DOAH is a state agency that employs full-time administrative law judges to conduct hearings in which the
substantial interests of a person are determined by an agency and involve a disputed issue of material fact.6
Generally, when a state agency proposes an action that may adversely affect an individual, that person is entitled to
request an administrative hearing.7 Requests for hearings are initially submitted to the relevant state agency.8

If the matter does not involve disputed issues of fact, the agency conducts the proceeding itself and issues a
decision.9 However, if the requesting party disputes the facts underlying the proposed agency action, the case is

1 S. 627.351(6)(a)1, F.S.
2 Florida Office of Insurance Regulation, Market Conduct Final Examination Report of Citizens Property Insurance Corporation

(January 11, 2021), https://floir.gov/docs-sf/property-casualty-libraries/market-regulation/2021/citizens-property-
insurance-corporation-1-11-2021.pdf (last visited January 5, 2026).
3 Citizens Property Insurance Corporation, Policies in Force: Current Snapshot: December 26, 2025.

https://www.citizensfla.com/policies-in-force (last visited January 5, 2026).
4 Citizens Property Insurance Corporation, Press Release (December 10, 2025), https://www.citizensfla.com/-/20251210-

citizens-recommends-rate-cuts-for-most-policyholders (last visited January 5, 2026).
5Citizens Property Insurance Corporation, Litigated Claims Update (November 20, 2025),

https://www.citizensfla.com/documents/20702/38933326/20251120+03+Litigated+Claims+Update.pdf/2626361d-17ea-
60ab-64d8-64ece4e943ff?version=1.0&t=1762966917511&d (last visited January 5, 2026).
6 Ch.120, F.S..
7 S. 120.68(1), F.S.
8 Rule 28-106.201 (1), F.A.C.
9 S. 120.57(2), F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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typically referred to DOAH for a formal hearing before an independent and neutral administrative law judge.10 As
of October 27, 2025, DOAH employs 44 administrative law judges throughout Florida.11

Following the hearing, the administrative law judge issues either a recommended order or a final order, which is
provided to the agency and the parties. When a recommended order is issued, the agency reviews it and then
enters a final order, generally adopting the judge’s factual findings (though the agency may modify or reject certain
legal conclusions or recommended penalties under limited circumstances). If the final order is averse to the non-
agency party, the party may appeal the decision to the appropriate District Court of Appeal.12

Mandatory Binding Arbitration
A property insurance policy issued in Florida, except for those issued by Citizens, may not require that a
policyholder participate in mandatory binding arbitration unless all of the following apply: 13
 The arbitration requirement is included in a separate endorsement attached to the policy.
 The policyholder’s premium reflects a credit or premium discount for accepting the arbitration
endorsement.
 The policyholder signs a form agreeing to the mandatory binding arbitration, which clearly explains the
rights they are relinquishing, including the right to a trial by jury.
 The endorsement establishes that the insurer will comply with statutory mediation provisions.
 The insurer provides the policyholder an alternative that does not require mandatory binding arbitration.

Citizens DOAH Program
Beginning in 2023, Citizens could require policyholders to resolve claim disputes through binding arbitration
before DOAH without the consent of policyholders.14 Citizens is not required to utilize DOAH, but has the option if
they choose to do so.15 Starting on October 1, 2023, Citizens was approved to insert an endorsement form entitled
“Alternative Dispute Resolution Division of Administrative Hearings” for all new and renewal non-commercial
policies.16 By virtue of its quasi-governmental status, Citizens is the only insurer permitted to conduct arbitration
before DOAH.17

Prior to 2023, disputes between Citizens and a policyholder that were not resolved via informal negotiation,
Department of Financial Services mediation, or demand appraisal, resulted in the filing of a civil suit in circuit
court.18

10 S. 120.57(1), F.S.
11 Division of Administrative Hearings v. Citizens Property Insurance Corporation and Martin A. Alvarez, No. 2D2025-2789,

Emergency Petition for Writ of Prohibition (Fla. 2d DCA Oct. 27, 2025).
12 S. 120.68(2)(a), F.S.
13 S. 627.70154, F.S.
14 Ch. 2023-175, Laws of Fla.
15 Citizens Property Insurance Corporation, Executive Summary: Division of Administrative Hearings (December 7, 2022),

https://www.citizensfla.com/documents/20702/28368994/20221207+9B+Action+Item+-
+DOAH+COMBINED.pdf/d1c3df8e-dffd-be99-f770-91d29adc8b2c?version=1.0&t=1668827787450&d (last visited January 5,
2026).
16 Citizens Property Insurance Corporation, Executive Summary: Division of Administrative Hearings (December 4, 2024),

https://www.citizensfla.com/documents/20702/31300530/20241204+09A+DOAH+Consent+Item+combined.pdf/96b3177a
-8c6e-6e64-1c4d-3f6185a56cb1?version=1.0&t=1732029217029&d (last visited January 5, 2026).
17 Citizens Property Insurance Corporation, Minutes of the Claims Committee Meeting, Thursday, November, 16, 2023 (March 28,

2024),https://www.citizensfla.com/documents/20702/30844688/20240328%2B01%2BApproval%2Bof%2BPrior%2BClai
ms%2BCommittee%2BMeeting%2BMinutes%2B11.16.23.pdf (last visited January 5, 2026).
18 Citizens Property Insurance Corporation, Minutes of the Claims Committee Meeting, Thursday, November, 16, 2023 (March 28,

2024),https://www.citizensfla.com/documents/20702/30844688/20240328%2B01%2BApproval%2Bof%2BPrior%2BClai
ms%2BCommittee%2BMeeting%2BMinutes%2B11.16.23.pdf (last visited January 5, 2026).
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Since 2014, Citizens has contracted with DOAH to provide dispute resolution services, specifically for any bid
protests.19 In July of 2022, Citizens’ Board of Governors approved pursuing alternative dispute resolutions for
claims disputes involving the use of DOAH. The Board authorized the use of up to $2,000,000 in 2023 for these
proceedings.20 In December of 2023, the Board approved extending the same $2,000,000 authorization through
2024.21 In December of 2024, Citizens and DOAH renewed the same contract for $19,300,000 to fund the
arbitration program through 2027. This $19.3 million allots for upwards of 320 claims per month in 2025, 2026,
and 2027.22

The contract provides for compensation to DOAH based on the cost of DOAH resources dedicated exclusively to
property insurance disputes.23 As of October 27, 2025, DOAH employs 12 full-time administrative law judges, as
well as other support staff, dedicated exclusively to arbitrating Citizens policy disputes.24

As of October 14, 2025, Citizens has referred 1,662 cases to DOAH in 2025, with 1,204 having been fully resolved. A
majority of cases have been resolved through voluntary settlement (80%), including 49% of cases where insureds
accept a “nominal settlement amount ($500 or less)”.25 Citizens cites that the average resolution time is 93 days in
the DOAH process as compared to 618 days in the state court process.26 The remaining 20% of cases move towards
hearings, where 9% abandon their disputes prior to final hearing, and 11% proceed.27 According to news reports,
as of July 21, 2025, Citizens has won in more than 90% of the cases that made it to a final DOAH hearing where
both sides presented their case. According to news reports, records released by Citizens showed that in traditional
circuit court trials Citizens wins around 55% of the time.28

Notable Court Activity
In 2025, several separate court cases have been filed against Citizens challenging the mandatory DOAH arbitration
clause within their policies. Plaintiffs allege the arbitration endorsement is unconstitutional, depriving them of due
process, meaningful access to courts, and jury trial rights.29

19 Citizens Property Insurance Corporation, Executive Summary: Division of Administrative Hearings (December 7, 2022)

https://www.citizensfla.com/documents/20702/28368994/20221207+9B+Action+Item+-
+DOAH+COMBINED.pdf/d1c3df8e-dffd-be99-f770-91d29adc8b2c?version=1.0&t=1668827787450&d (last visited January 5,
2026).
20 Id.
21 Citizens Property Insurance Corporation, Executive Summary: Division of Administrative Hearings (November 16, 2023),

https://www.citizensfla.com/documents/20702/30165071/20231116+06C+Division+of+Administrative+Hearings.pdf/dccfe
011-0812-3508-7f1c-333af0fb2ac5?version=1.0&t=1706019939485&d (last visited January 5, 2026).
22Citizens Property Insurance Corporation, Executive Summary: Division of Administrative Hearings (December 4, 2024),

https://www.citizensfla.com/documents/20702/31300530/20241204+09A+DOAH+Consent+Item+combined.pdf/96b3177a
-8c6e-6e64-1c4d-3f6185a56cb1?version=1.0&t=1732029217029&d (last visited January 5, 2026).
23 Id.
24 Division of Administrative Hearings v. Citizens and Alvarez, No. 2D2025-2789, Emergency Petition for Writ of Prohibition (Fla.

2d DCA Oct. 27, 2025).
25 Citizens Property Insurance Corporation, Litigated Claims Update (November 20, 2025)

https://www.citizensfla.com/documents/20702/38933326/20251120+03+Litigated+Claims+Update.pdf/2626361d-17ea-
60ab-64d8-64ece4e943ff?version=1.0&t=1762966917511&d (last visited January 5, 2026).
26 Id.
27 Id.
28 Ariza, M. A Florida Home Insurer Was Allowed to Bypass the Courts During Claim Disputes. It Won More Than 90% of the Time,

ProPublica (September 15, 2025), https://www.propublica.org/article/citizens-property-insurance-florida-arbitration-cases
(last visited December 21, 2025); Conte, A. Homeowners Are Losing 90% of Cases Against Florida’s Biggest Insurer-Here’s Why,
Realtor.com, (September 29, 2025) https://www.realtor.com/advice/finance/citizens-insurance-florida-claim-disputes-doah
(last visited January 5, 2026); Hurtibise, R. A ‘stacked deck’: Citizens’ alternative dispute system unfair to policyholders, attorneys
say, South Florida Sun-Sentinel (July 12, 2025).
29 Alvarez v. Citizens, No. 25-CA-006626, Complaint (Fla. 13th Cir. Ct. July 11, 2025); Lombana v. Citizens, No. 2025CA001675,

Complaint (Fla. 2d Cir. Ct. July 16, 2025); Williams v. Citizens, No. 1:25-cv-23097, Complaint (S.D. Fla. July 10, 2025).
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In Alvarez v. Citizens, the judge in the Thirteenth Judicial Circuit issued a temporary injunction on August 1, 2025,
halting all arbitration before DOAH on the grounds the plaintiff (Alvarez) demonstrated a substantial likelihood of
success on the merits of his claims that Citizens’ ability to require mandatory arbitration violates policyholders’
constitutional rights to due process and access to courts.30 The case was voluntarily dismissed in December 2025.31

In Lombana v. Citizens, the judge in the Second Judicial Circuit ordered DOAH to resume arbitration for 400+
pending Citizens cases on November 14, 2025. The judge ruled that the injunction issued in Alvarez was notably
broad and that the non-final determination of a single trial court lacks binding effect on other trial courts.32 The
order is currently being appealed in the First District Court of Appeal.33

Two class action lawsuits have also been filed against Citizens alleging that its arbitration endorsement is
unconstitutional by virtue of being mandatory, non-negotiable, and imposed through adhesion contracts without
reduction in premiums. The plaintiffs further allege that Citizens’ systematic invocation of DOAH proceedings
compels policyholders into an administrative forum that lacks meaningful discovery, motion practice, or judicial
review.34 No rulings have been issued to date.

RECENT LEGISLATION:

YEAR BILL #/SUBJECT HOUSE/SENATE OTHER INFORMATION
SPONSOR(S)
2025 CS/CS/HB 643/ Relating to Insurance Commerce Committee, The bill passed the House, but
Insurance & Banking died in the Senate.
Subcommittee, Synder

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking Brackett Veigle
Subcommittee
Commerce Committee

30 Alvarez v. Citizens, No. 25-CA-006626, Order Granting Plaintiff’s Petition for Temporary Injunction (Fla. 13th Cir. Ct. Aug. 1,

2025).
31 Alvarez v. Citizens, No. 25-CA-006626, Motion to Voluntarily Dismissal (Fla. 13th Cir. Ct. Dec. 8, 2025).
32 Lombana v. Citizens, 2025CA001675, Order Granting Petition for Writ of Mandamus (Fla. 2d Cir. Ct. Nov. 14, 2025).
33 Lombana v. Citizens, Division of Administrative Hearings, 1D2025-3195, Notice of Appeal (Fla. 1st DCA Dec. 4, 2025).
34 Jamie Alverio v. Citizens, No. 2025CA001978, Class-Action Complaint for Declaratory Relief (Fla. 18th Cir. Ct. Aug. 27, 2025);

Idelmis and Jesus Martinez v. Citizens, No.2025-017067-CA-01, Class-Action Complaint for Declaratory Relief (Fla. 11th Cir. Ct.
Sept. 1, 2025).
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

HB 863 2026

1 A bill to be entitled
2 An act relating to arbitration for disputes with
3 Citizens Property Insurance Corporation; amending s.
4 627.351, F.S.; requiring notification of arbitration
5 before the Division of Administrative Hearings as an
6 option for dispute resolution procedures under
7 Citizens Property Insurance Corporation; removing
8 obsolete language; providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Paragraph (ll) of subsection (6) of section
13 627.351, Florida Statutes, is amended to read:
14 627.351 Insurance risk apportionment plans.—
15 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
16 (ll)1. In addition to any other method of alternative
17 dispute resolution authorized by state law, the corporation may
18 adopt policy forms that provide an option for the insured to
19 select, at the time of entering into the policy or upon renewal,
20 to have disputes regarding the corporation's claim
21 determinations for the resolution of disputes regarding its
22 claim determinations, including disputes regarding coverage for,
23 or the scope and value of, a claim, resolved through arbitration
24 in a proceeding before the Division of Administrative Hearings.
25 Each insured must be notified in writing, at the time of

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26 entering into a policy with the corporation and upon each
27 renewal, that the insured must decide whether to resolve
28 disputes through arbitration before the Division of
29 Administrative Hearings. Such notification must be in at least
30 12-point boldfaced type, immediately preceding the insured's
31 signature, in substantially the following form:
32
33 AN INSURED MUST CHOOSE AT THE TIME OF ENTERING INTO THIS POLICY
34 OR UPON RENEWAL WHETHER TO RESOLVE DISPUTES THROUGH ARBITRATION
35 BEFORE THE DIVISION OF ADMINISTRATIVE HEARINGS. THE INSURED MUST
36 INDICATE THIS SELECTION BY MARKING "ACCEPT" OR "DECLINE" BELOW.
37 THIS DECISION CANNOT BE CHANGED DURING THE TERM OF THE POLICY.
38
39 [ ] ACCEPT
40 [ ] DECLINE
41
42 2. Any such policies are not subject to s. 627.70154. All
43 arbitrations before proceedings in the Division of
44 Administrative Hearings pursuant to such policies are subject to
45 ss. 57.105 and 768.79 as if filed in the courts of this state
46 and are not considered chapter 120 administrative proceedings.
47 Rule 1.442, Florida Rules of Civil Procedure, applies to any
48 offer served pursuant to s. 768.79, except that, notwithstanding
49 any provision in Rule 1.442, Florida Rules of Civil Procedure,
50 to the contrary, an offer shall not be served earlier than 10

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51 days after filing the request for hearing with the Division of
52 Administrative Hearings and shall not be served later than 10
53 days before the date set for the final hearing. The
54 administrative law judge in such arbitrations proceedings shall
55 award attorney fees and other relief pursuant to ss. 57.105 and
56 768.79. The corporation may not seek, and the office may not
57 approve, a maximum hourly rate for attorney fees.
58 2. The corporation may contract with the division to
59 conduct proceedings to resolve disputes regarding its claim
60 determinations as may be provided for in the applicable policies
61 of insurance. This subparagraph expires July 1, 2026.
62 Section 2. This act shall take effect July 1, 2026.

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