PCS for HB 1263 (2026): An act relating to the Office of Insurance Regulation
Summary
PCS for HB 1263 (2026), a bill to be entitled “An act relating to the Office of Insurance Regulation.” The title lists providing that the Office of Insurance Regulation is responsible for all activities concerning entities under its jurisdiction, authorizing the Department of Financial Services and the office to issue cease and desist orders for unlicensed activity, granting the office the authority to examine administrators, and authorizing the commission to adopt by rule the Market Conduct Examiners Handbook. It also lists requiring the Department of Law Enforcement to accept and process fingerprints taken of certain persons. Section 26 states that the act takes effect July 1, 2026.
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“PCS for HB 1263 (2026): An act relating to the Office of Insurance Regulation.”
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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
PCS for HB 1263 ORIGINAL 2026
1 A bill to be entitled
2 An act relating to the Office of Insurance Regulation;
3 amending s. 20.121, F.S.; providing that the Office of
4 Insurance Regulation is responsible for all activities
5 concerning entities under its jurisdiction; amending
6 s. 501.171, F.S.; requiring entities under the
7 office's jurisdiction to copy the office on certain
8 notices and provide certain information, upon request,
9 to the Department of Legal Affairs; amending s.
10 624.310, F.S.; authorizing the Department of Financial
11 Services and the office to issue cease and desist
12 orders for unlicensed activity; authorizing the
13 department and the office to seek an injunction for
14 enforcement of such order; amending s. 624.316, F.S.;
15 removing a provision allowing the Financial Services
16 Commission to adopt the Market Conduct Examiners
17 Handbook; amending s. 624.3161, F.S.; granting the
18 office the authority to examine administrators;
19 authorizing the commission to adopt by rule the Market
20 Conduct Examiners Handbook; creating s. 624.341, F.S.;
21 providing legislative findings and intent; requiring
22 the Department of Law Enforcement to accept and
23 process fingerprints taken of certain persons;
24 specifying procedures for fingerprinting; authorizing
25 the Department of Law Enforcement to exchange certain
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26 records with the office; specifying that fingerprints
27 must be submitted in accordance with certain rules;
28 requiring the Department of Law Enforcement and the
29 Federal Bureau of Investigation to conduct certain
30 background checks; requiring that certain fingerprints
31 be submitted and entered into a specified system;
32 requiring the office to inform the Department of Law
33 Enforcement of any person whose fingerprints no longer
34 need to be retained; specifying who bears the costs of
35 fingerprint processing; requiring the office to review
36 criminal history background checks and make certain
37 determinations; specifying that certain criminal
38 records be used by the office for certain purposes;
39 amending s. 627.062, F.S.; requiring, rather than
40 authorizing, the office to estimate projected flood
41 losses for residential property insurance using a
42 certain model; requiring the office to consider
43 projected comprehensive losses for certain private
44 passenger automobile insurance using a model approved
45 by the Florida Commission on Hurricane Loss Projection
46 Methodology; amending s. 627.0628, F.S.; requiring
47 private passenger automobile insurance to be
48 adequately projected; amending s. 627.0629, F.S.;
49 requiring the office to determine minimum rate
50 differentials for windstorm damage mitigation
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51 techniques that meet or exceed the minimum
52 requirements of the Florida Building Code; authorizing
53 insurers to seek additional rate differentials;
54 amending s. 627.0645, F.S.; revising requirements of
55 rate filing with the office for certain insurers;
56 amending s. 627.711, F.S.; requiring the notification
57 form sent to insureds at the time of issuance of the
58 insurance policy and renewal to notify the insured of
59 certain discounts; requiring the office to contract
60 with a state university to design, operate, upgrade,
61 and maintain a specified database; requiring property
62 insurers to file certain policyholder forms within a
63 specified timeframe in the database beginning on a
64 specified date; requiring the commission to adopt
65 rules; amending s. 627.7152, F.S.; removing a
66 provision requiring insurers to report on residential
67 and commercial property insurance claims paid in a
68 certain year; amending s. 627.915, F.S.; requiring
69 private passenger automobile insurers to file
70 specified monthly reports beginning on a specified
71 date; requiring the commission to adopt rules;
72 removing the requirement for certain insurers to
73 submit such report; removing an exemption for certain
74 insurers; creating s. 628.8011, F.S.; providing
75 definitions; requiring certain persons to file a group
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76 capital calculation report annually by a specified
77 date; providing requirements for such report;
78 exempting certain insurance holding company systems
79 from filing such report; requiring certain non-United
80 States-based insurance holding company systems to file
81 a group capital calculation report; authorizing the
82 office to exempt certain persons from filing such
83 report under certain circumstances; authorizing the
84 filing of a limited group capital filing instead of
85 the group capital calculation report under certain
86 circumstances; authorizing the office to require
87 certain insurance holding company systems to file such
88 report despite qualifying for an exemption under
89 certain circumstances; requiring the office to adopt
90 certain criteria and publish certain information on
91 its website; authorizing the office to adopt certain
92 rules; creating s. 628.8012, F.S.; providing
93 definitions; requiring certain persons to annually
94 file results of a liquidity stress test in compliance
95 with specified instructions; providing an exemption;
96 authorizing the office to adopt rules; creating s.
97 628.8013, F.S.; providing that a certain report and
98 test are for specified purposes; prohibiting certain
99 representations or statements by certain persons;
100 authorizing an insurer to rebut certain information in
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101 a written publication under certain circumstances;
102 creating s. 629.53, F.S.; requiring attorneys in fact
103 of reciprocal insurers to obtain a registration;
104 providing requirements for the application of such
105 registration; requiring the office to investigate
106 applicants and issue registrations to applicants under
107 certain circumstances; creating s. 629.54, F.S.;
108 providing for automatic renewal of the registration of
109 an attorney in fact; creating s. 629.55, F.S.;
110 authorizing the office to deny, suspend, revoke, or
111 refuse to renew the registration of an attorney in
112 fact under certain circumstances; creating s. 629.56,
113 F.S.; providing for when an order of suspension or
114 revocation of a registration is effected; authorizing
115 the office to publish certain notice in newspapers of
116 general circulation; creating s. 629.57, F.S.;
117 providing a limitation to how long the registration of
118 an attorney in fact may be suspended; providing that a
119 registration is automatically reinstated after the
120 suspension ends; creating s. 629.58, F.S.; authorizing
121 the office to issue administrative fines in lieu of
122 suspension or revocation; prohibiting a fine to be
123 borne by an insurer; amending ss. 634.141, 634.314,
124 and 634.416, F.S.; conforming cross-references;
125 providing an effective date.
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126
127 Be It Enacted by the Legislature of the State of Florida:
128
129 Section 1. Paragraph (a) of subsection (3) of section
130 20.121, Florida Statutes, is amended to read:
131 20.121 Department of Financial Services.—There is created
132 a Department of Financial Services.
133 (3) FINANCIAL SERVICES COMMISSION.—Effective January 7,
134 2003, there is created within the Department of Financial
135 Services the Financial Services Commission, composed of the
136 Governor, the Attorney General, the Chief Financial Officer, and
137 the Commissioner of Agriculture, which shall for purposes of
138 this section be referred to as the commission. Commission
139 members shall serve as agency head of the Financial Services
140 Commission. The commission shall be a separate budget entity and
141 shall be exempt from the provisions of s. 20.052. Commission
142 action shall be by majority vote consisting of at least three
143 affirmative votes. The commission shall not be subject to
144 control, supervision, or direction by the Department of
145 Financial Services in any manner, including purchasing,
146 transactions involving real or personal property, personnel, or
147 budgetary matters.
148 (a) Structure.—The major structural unit of the commission
149 is the office. Each office shall be headed by a director. The
150 following offices are established:
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151 1. The Office of Insurance Regulation, which shall be
152 responsible for all activities concerning insurers, and other
153 risk bearing entities, and other entities under its
154 jurisdiction, including licensing, rates, policy forms, market
155 conduct, claims, issuance of certificates of authority,
156 solvency, viatical settlements, premium financing, and
157 administrative supervision, as provided under the insurance code
158 or chapter 636. The head of the Office of Insurance Regulation
159 is the Director of the Office of Insurance Regulation, who may
160 also be known as the Commissioner of Insurance Regulation.
161 2. The Office of Financial Regulation, which shall be
162 responsible for all activities of the Financial Services
163 Commission relating to the regulation of banks, credit unions,
164 other financial institutions, finance companies, and the
165 securities industry. The head of the office is the Director of
166 the Office of Financial Regulation, who may also be known as the
167 Commissioner of Financial Regulation. The Office of Financial
168 Regulation shall include a Bureau of Financial Investigations,
169 which shall function as a criminal justice agency for purposes
170 of ss. 943.045-943.08 and shall have a separate budget. The
171 bureau may conduct investigations within or outside this state
172 as the bureau deems necessary to aid in the enforcement of this
173 section. If, during an investigation, the office has reason to
174 believe that any criminal law of this state has or may have been
175 violated, the office shall refer any records tending to show
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176 such violation to state or federal law enforcement or
177 prosecutorial agencies and shall provide investigative
178 assistance to those agencies as required.
179 Section 2. Paragraph (f) is added to subsection (3) of
180 section 501.171, Florida Statutes, to read:
181 501.171 Security of confidential personal information.—
182 (3) NOTICE TO DEPARTMENT OF SECURITY BREACH.—
183 (f) If a covered entity is subject to the jurisdiction of
184 the Office of Insurance Regulation, the covered entity must copy
185 the office on the notice provided to the department. The covered
186 entity must provide any information listed in paragraph (c) to
187 the office upon its request.
188 Section 3. Paragraph (g) is added to subsection (5) of
189 section 624.310, Florida Statutes, to read:
190 624.310 Enforcement; cease and desist orders; removal of
191 certain persons; fines.—
192 (5) ADMINISTRATIVE FINES; ENFORCEMENT.—
193 (g) If the department or office has probable cause to
194 believe that a person is performing activities that require a
195 license, registration, certificate of authority, or any other
196 form of authorization from the department or office, and the
197 person performing such activities does not hold the required
198 license, registration, certificate of authority, or other form
199 of authorization, the department or office may issue and deliver
200 to such person a notice to cease and desist from such violation
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201 of the insurance code. In addition, the department or office may
202 issue and deliver a notice to cease and desist to any person who
203 aids and abets the person violating the insurance code. For the
204 purpose of enforcing a cease and desist order under this
205 paragraph, the department or office may file an action for a
206 court proceeding in the name of this state seeking the issuance
207 of an injunction against a person who violates any provision of
208 the cease and desist order.
209 Section 4. Paragraph (c) of subsection (1) of section
210 624.316, Florida Statutes, is amended to read:
211 624.316 Examination of insurers.—
212 (1)
213 (c) The office shall examine each insurer according to
214 accounting procedures designed to fulfill the requirements of
215 generally accepted insurance accounting principles and practices
216 and good internal control and in keeping with generally accepted
217 accounting forms, accounts, records, methods, and practices
218 relating to insurers. To facilitate uniformity in examinations,
219 the commission may adopt, by rule, the Market Conduct Examiners
220 Handbook and the Financial Condition Examiners Handbook of the
221 National Association of Insurance Commissioners, 2002, and may
222 adopt subsequent amendments thereto, if the examination
223 methodology remains substantially consistent.
224 Section 5. Subsections (2) through (9) of section
225 624.3161, Florida Statutes, are renumbered as subsections (3)
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226 through (10), respectively, subsection (1), paragraph (e) of
227 present subsection (8), and paragraph (a) of present subsection
228 (9) are amended, and a new subsection (2) is added to that
229 section, to read:
230 624.3161 Market conduct examinations.—
231 (1) As often as it deems necessary, the office shall
232 examine each licensed rating organization, each advisory
233 organization, administrator, each group, association, carrier,
234 as defined in s. 440.02, or other organization of insurers which
235 engages in joint underwriting or joint reinsurance, the attorney
236 in fact of each reciprocal insurer, and each authorized insurer
237 transacting in this state any class of insurance to which
238 chapter 627 is applicable. The examination must be for the
239 purpose of ascertaining compliance by the person examined with
240 the applicable provisions of this chapter and chapters 440, 626,
241 627, and 635.
242 (2) To facilitate uniformity in examinations, the
243 commission may adopt, by rule, the Market Conduct Examiners
244 Handbook of the National Association of Insurance Commissions,
245 2024, and may adopt subsequent amendments thereto, if the
246 examination methodology remains substantially consistent.
247 (9)(8) The office shall create, and the commission shall
248 adopt by rule, a selection methodology for scheduling and
249 conducting market conduct examinations of insurers and other
250 entities regulated by the office. This requirement does not
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251 restrict the authority of the office to conduct market conduct
252 examinations as often as it deems necessary. Such selection
253 methodology must prioritize market conduct examinations of
254 insurers and other entities regulated by the office to whom any
255 of the following conditions applies:
256 (e) The insurer meets the criteria in subsection (8) (7).
257
258 The office shall present the proposed rule required by this
259 subsection to the commission no later than October 1, 2023. In
260 addition to the methodology required by this subsection, the
261 rule must provide criteria for how the office, in coordination
262 with the department, will determine what constitutes a
263 disproportionate number of claims-handling complaints described
264 in paragraph (b).
265 (10)(9) If the office concludes through an examination
266 pursuant to this section that an insurer providing liability
267 coverage in this state exhibits a pattern or practice of
268 violations of the Florida Insurance Code during any
269 investigation or examination of the insurer, the office must
270 review the insurer's claims-handling practices to determine if
271 the insurer should be subject to the enhanced enforcement
272 penalties of this subsection.
273 (a) A liability insurer may be subject to enhanced
274 enforcement penalties if the office reviews the insurer's
275 claims-handling practices and finds a pattern or practice of the
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276 insurer failing to do the following when responding to covered
277 liability claims under an insurance policy, after receiving
278 actual notice of such claims:
279 1. Assign a licensed and appointed insurance adjuster to
280 investigate whether coverage is provided under the policy and
281 diligently attempt to resolve any questions concerning the
282 extent of the insured's coverage.
283 2. Evaluate the claim fairly, honestly, and with due
284 regard for the interests of the insured based on available
285 information.
286 3. Request from the insured or claimant additional
287 relevant information the insurer reasonably deems necessary to
288 evaluate whether to settle a claim.
289 4. Conduct all oral and written communications with the
290 insured with honesty and candor.
291 5. Make reasonable efforts to explain to persons not
292 represented by counsel matters requiring expertise beyond the
293 level normally expected of a layperson with no training in
294 insurance or claims-handling issues.
295 6. Retain all written and recorded communications and
296 create and retain a summary of all verbal communications in a
297 reasonable manner for a period of not less than 2 years after
298 the later of the entry of a final judgment against the insured
299 in excess of policy limits or, if an extracontractual claim is
300 made, the conclusion of that claim and any related appeals.
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301 7. Within 30 days after a request, provide the insured
302 with all communications related to the insurer's handling of the
303 claim which are not privileged as to the insured.
304 8. Provide, upon request and at the insurer's expense,
305 reasonable accommodations necessary to communicate effectively
306 with an insured covered under the Americans with Disabilities
307 Act.
308 9. When handling a third-party claim, communicate each of
309 the following to the insured:
310 a. The identity of any other person or entity the insurer
311 has reason to believe may be liable.
312 b. The insurer's final and completed estimate of the
313 claim.
314 c. The possibility of an excess judgment.
315 d. The insured's right to secure personal counsel at his
316 or her own expense.
317 e. That the insured should cooperate with the insurer,
318 including providing information required by the insurer because
319 of a settlement opportunity or in accordance with the policy.
320 f. Any formal settlement demands or offers to settle by
321 the claimant and any offers to settle on behalf of the insured.
322 10. Respond to any request for insurance information in
323 compliance with s. 626.9372 or s. 627.4137, as applicable.
324 11. Seek to obtain a general release of each insured in
325 making any settlement offer to a third-party claimant.
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326 12. Take reasonable measures to preserve any documentary,
327 photographic, and forensic evidence as needed for the defense of
328 the liability claim if it appears likely that the insured's
329 liability exposure is greater than policy limits and the insurer
330 fails to secure a general release in favor of the insured.
331 13. Comply with subsections (1) and (3) (2), if
332 applicable.
333 14. Comply with the Unfair Insurance Trade Practices Act.
334 Section 6. Section 624.341, Florida Statutes, is created
335 to read:
336 624.341 Authority of Department of Law Enforcement to
337 accept fingerprints of, and exchange criminal history records
338 with respect to, certain persons applying to the Office of
339 Insurance Regulation.—
340 (1) The Legislature finds that criminal activity of
341 insurers poses a particular danger to the residents of this
342 state. Floridians rely, in good faith, on the honest conduct of
343 those who issue and manage insurance policies and other
344 insurance instruments in this state. To safeguard the residents
345 of this state, the Legislature finds it necessary to ensure that
346 organizers, incorporators, officers, employees, contractors,
347 stockholders, directors, owners, managers, or volunteers
348 involved in the organization, operation, or management of any
349 insurer authorized to sell insurance do not have a criminal
350 record.
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351 (2) The Department of Law Enforcement shall accept and
352 process fingerprints taken of organizers, incorporators,
353 officers, employees, contractors, stockholders, directors,
354 owners, managers, or volunteers involved, directly or
355 indirectly, in the organization, operation, or management of
356 any:
357 (a) Insurer or proposed insurer transacting or proposing
358 to transact insurance in this state.
359 (b) Other entity that is examined or investigated, or is
360 eligible to be examined or investigated, under the office's
361 jurisdiction.
362 (c) Other person or entity subject to licensure under the
363 office's jurisdiction.
364 (3) A full set of fingerprints of persons or entities
365 described in subsection (2) must be submitted to the office or
366 to a vendor, an entity, or an agency authorized under s.
367 943.053(13). The office, vendor, entity, or agency shall forward
368 the fingerprints to the Department of Law Enforcement for state
369 processing, and the Department of Law Enforcement shall forward
370 the fingerprints to the Federal Bureau of Investigation for
371 national processing pursuant to s. 624.34(5). Fees for state and
372 federal fingerprint processing must be borne by the person
373 submitting them. The state cost for fingerprint processing is as
374 provided in s. 943.053(3)(e).
375 (4) The Department of Law Enforcement may, to the extent
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376 authorized by federal law, exchange state, multistate, and
377 federal criminal history records with the office for the purpose
378 of the issuance, denial, suspension, or revocation of a
379 certificate of authority, certification, or license to operate
380 in this state.
381 (5) Fingerprints for each person or entity described in
382 subsection (2) must be submitted in accordance with rules
383 adopted by the commission.
384 (a) Fingerprints may be submitted through a third-party
385 vendor authorized by the Department of Law Enforcement.
386 (b) The Department of Law Enforcement shall conduct the
387 state criminal history background check and a federal criminal
388 history background check must be conducted through the Federal
389 Bureau of Investigation.
390 (c) All fingerprints submitted to the Department of Law
391 Enforcement must be submitted and entered into the statewide
392 automated biometric identification system established in s.
393 943.05(2)(b) and be available for use in accordance with s.
394 943.05(2)(g) and (h). The office shall inform the Department of
395 Law Enforcement the name of any person whose fingerprints no
396 longer need to be retained.
397 (d) The costs of fingerprint processing, including the
398 cost of retaining the fingerprints, must be borne by the person
399 subject to the background check.
400 (e) The office shall review the results of the state and
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401 federal criminal history background checks and determine whether
402 the applicant meets the requirements for a certificate of
403 authority, certification, registration, or license to operate in
404 this state.
405 (6) Statewide criminal records obtained through the
406 Department of Law Enforcement, federal criminal records obtained
407 through the Federal Bureau of Investigation, and local criminal
408 records obtained through local law enforcement agencies must be
409 used by the office for the purpose of issuance, denial,
410 suspension, or revocation of certificates of authority,
411 certifications, registrations, or licenses required to operate
412 in this state.
413 Section 7. Paragraph (b) of subsection (2) of section
414 627.062, Florida Statutes, is amended to read:
415 627.062 Rate standards.—
416 (2) As to all such classes of insurance:
417 (b) Upon receiving a rate filing, the office shall review
418 the filing to determine if a rate is excessive, inadequate, or
419 unfairly discriminatory. In making that determination, the
420 office shall, in accordance with generally accepted and
421 reasonable actuarial techniques, consider the following factors:
422 1. Past and prospective loss experience within and without
423 this state.
424 2. Past and prospective expenses.
425 3. The degree of competition among insurers for the risk
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426 insured.
427 4. Investment income reasonably expected by the insurer,
428 consistent with the insurer's investment practices, from
429 investable premiums anticipated in the filing, plus any other
430 expected income from currently invested assets representing the
431 amount expected on unearned premium reserves and loss reserves.
432 The commission may adopt rules using reasonable techniques of
433 actuarial science and economics to specify the manner in which
434 insurers calculate investment income attributable to classes of
435 insurance written in this state and the manner in which
436 investment income is used to calculate insurance rates. Such
437 manner must contemplate allowances for an underwriting profit
438 factor and full consideration of investment income that produces
439 a reasonable rate of return; however, investment income from
440 invested surplus may not be considered.
441 5. The reasonableness of the judgment reflected in the
442 filing.
443 6. Dividends, savings, or unabsorbed premium deposits
444 allowed or returned to policyholders, members, or subscribers in
445 this state.
446 7. The adequacy of loss reserves.
447 8. The cost of reinsurance. The office may not disapprove
448 a rate as excessive solely due to the insurer having obtained
449 catastrophic reinsurance to cover the insurer's estimated 250-
450 year probable maximum loss or any lower level of loss.
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451 9. Trend factors, including trends in actual losses per
452 insured unit for the insurer making the filing.
453 10. Conflagration and catastrophe hazards, if applicable.
454 11. Projected hurricane losses, if applicable, which must
455 be estimated using a model or method found to be acceptable or
456 reliable by the Florida Commission on Hurricane Loss Projection
457 Methodology, and as further provided in s. 627.0628.
458 12. Projected flood losses for personal residential
459 property insurance, if applicable, which must may be estimated
460 using a model or method, or a straight average of model results
461 or output ranges, independently found to be acceptable or
462 reliable by the Florida Commission on Hurricane Loss Projection
463 Methodology and as further provided in s. 627.0628 for filings
464 submitted to the office after January 1, 2027.
465 13. For filings submitted to the office after January 1,
466 2027, projected comprehensive losses, if applicable, used to
467 determine a hurricane catastrophe load for private passenger
468 automobile insurance, which must be estimated using a model or
469 method found to be acceptable or reliable by the Florida
470 Commission on Hurricane Loss Projection Methodology under s.
471 627.0628.
472 14.13. A reasonable margin for underwriting profit and
473 contingencies.
474 15.14. The cost of medical services, if applicable.
475 16.15. Other relevant factors that affect the frequency or
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476 severity of claims or expenses.
477
478 The provisions of this subsection do not apply to workers'
479 compensation, employer's liability insurance, and motor vehicle
480 insurance.
481 Section 8. Paragraph (a) of subsection (1) and paragraph
482 (a) of subsection (3) of section 627.0628, Florida Statutes, are
483 amended to read:
484 627.0628 Florida Commission on Hurricane Loss Projection
485 Methodology; public records exemption; public meetings
486 exemption.—
487 (1) LEGISLATIVE FINDINGS AND INTENT.—
488 (a) Reliable projections of hurricane losses are necessary
489 in order to assure that rates for residential property insurance
490 and private passenger automobile insurance meet the statutory
491 requirement that rates be neither excessive nor inadequate. The
492 ability to accurately project hurricane losses has been enhanced
493 greatly in recent years through the use of computer modeling. It
494 is the public policy of this state to encourage the use of the
495 most sophisticated actuarial methods to assure that consumers
496 are charged lawful rates for residential property insurance and
497 private passenger automobile insurance coverage.
498 (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.—
499 (a) The commission shall consider any actuarial methods,
500 principles, standards, models, or output ranges that have the
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501 potential for improving the accuracy of or reliability of the
502 hurricane loss projections used in residential property
503 insurance and private passenger automobile insurance rate
504 filings and flood loss projections used in rate filings for
505 personal lines residential flood insurance coverage. The
506 commission shall, from time to time, adopt findings as to the
507 accuracy or reliability of particular methods, principles,
508 standards, models, or output ranges.
509 Section 9. Subsection (1) of section 627.0629, Florida
510 Statutes, is amended to read:
511 627.0629 Residential property insurance; rate filings.—
512 (1) It is the intent of the Legislature that insurers
513 provide savings to consumers who install or implement windstorm
514 damage mitigation techniques, alterations, or solutions to their
515 properties to prevent windstorm losses. A rate filing for
516 residential property insurance must include actuarially
517 reasonable discounts, credits, or other rate differentials, or
518 appropriate reductions in deductibles, for properties on which
519 fixtures or construction techniques demonstrated to reduce the
520 amount of loss in a windstorm have been installed or
521 implemented. The fixtures or construction techniques must
522 include, but are not limited to, fixtures or construction
523 techniques that enhance wind uplift prevention, roof strength,
524 roof covering performance, roof-to-wall strength, wall-to-floor-
525 to-foundation strength, opening protection, and window, door,
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526 and skylight strength. Credits, discounts, or other rate
527 differentials, or appropriate reductions in deductibles, for
528 fixtures and construction techniques that meet or exceed the
529 minimum requirements of the Florida Building Code must be
530 included in the rate filing. The office shall determine the
531 minimum discounts, credits, other rate differentials, and
532 appropriate reductions in deductibles that reflect the full
533 actuarial value of such fixtures and construction techniques.
534 The office's determination may not prohibit an insurer from
535 seeking additional actuarily justified credits, discounts or
536 other rate differentials, or appropriate reductions in
537 deductibles for fixtures and construction techniques that meet
538 or exceed the minimum requirements of the Florida Building Code
539 revaluation, which may be used by insurers in rate filings.
540 Effective October 1, 2023, each insurer subject to the
541 requirements of this section must provide information on the
542 insurer's website describing the hurricane mitigation discounts
543 available to policyholders. Such information must be accessible
544 on, or through a hyperlink located on, the home page of the
545 insurer's website or the primary page of the insurer's website
546 for property insurance policyholders or applicants for such
547 coverage in this state. On or before January 1, 2025, and every
548 5 years thereafter, the office shall reevaluate and update the
549 fixtures or construction techniques demonstrated to reduce the
550 amount of loss in a windstorm and the discounts, credits, other
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551 rate differentials, and appropriate reductions in deductibles
552 that reflect the full actuarial value of such fixtures or
553 construction techniques. The office shall adopt rules and forms
554 necessitated by such reevaluation.
555 Section 10. Paragraph (b) of subsection (3) of section
556 627.0645, Florida Statutes, is amended to read:
557 627.0645 Annual filings.—
558 (3) The filing requirements of this section shall be
559 satisfied by one of the following methods:
560 (b) If no rate change is proposed, a filing which consists
561 of a certification by an actuary that the existing rate level
562 produces rates which are actuarially sound and which are not
563 inadequate, as defined in s. 627.062. However, for residential
564 property and private passenger automobile insurers, a full rate
565 filing is required after 2 consecutive years of certification
566 under this paragraph.
567 Section 11. Subsection (1) is amended and paragraphs (c),
568 (d), and (e) are added to subsection (2) of section 627.711,
569 Florida Statutes, to read:
570 627.711 Notice of premium discounts for hurricane loss
571 mitigation; uniform mitigation verification inspection form.—
572 (1) Using a form prescribed by the Office of Insurance
573 Regulation, the insurer shall clearly notify the applicant or
574 policyholder of any personal lines residential property
575 insurance policy, at the time of the issuance of the policy and
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576 at each renewal, of the availability and the range of each
577 premium discount, credit, other rate differential, or reduction
578 in deductibles, and combinations of discounts, credits, rate
579 differentials, or reductions in deductibles, for properties on
580 which fixtures or construction techniques demonstrated to reduce
581 the amount of loss in a windstorm can be or have been installed
582 or implemented. The prescribed form shall describe generally
583 what actions the policyholders may be able to take to reduce
584 their windstorm premium. The prescribed form and a list of such
585 ranges approved by the office for each insurer licensed in the
586 state and providing such discounts, credits, other rate
587 differentials, or reductions in deductibles for properties
588 described in this subsection shall be available for electronic
589 viewing and download from the Department of Financial Services'
590 or the Office of Insurance Regulation's Internet website. The
591 prescribed form must also notify the applicant or policyholder
592 if the insurer offers an enhanced discount for a roof system
593 that uses a secondary water resistance, and the form must
594 generally list the amount of discount by type of secondary water
595 resistance. The Financial Services Commission may adopt rules to
596 implement this subsection.
597 (2)
598 (c) The office shall contract with a state university to
599 design, operate, upgrade, and maintain a statewide database for
600 uniform mitigation verification inspection forms. This database
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601 must be managed by the office to collect and evaluate mitigation
602 features of residential properties within this state.
603 (d) Beginning January 1, 2027, each insurer must
604 electronically file within 15 business days after receipt a copy
605 of each uniform mitigation inspection form submitted by a
606 policyholder in the database created under paragraph (c) using
607 the electronic format prescribed by the office.
608 (e) The Financial Services Commission shall adopt rules to
609 implement this subsection.
610 Section 12. Subsection (13) of section 627.7152, Florida
611 Statutes, is renumbered as subsection (12), and subsection (12)
612 of that section is amended, to read:
613 627.7152 Assignment agreements.—
614 (12) The office shall require each insurer to report by
615 January 30, 2022, and each year thereafter data on each
616 residential and commercial property insurance claim paid in the
617 prior calendar year under an assignment agreement. The Financial
618 Services Commission shall adopt by rule a list of the data
619 required, which must include specific data about claims
620 adjustment and settlement timeframes and trends, grouped by
621 whether litigated or not litigated and by loss adjustment
622 expenses.
623 Section 13. Subsections (2) and (5) of section 627.915,
624 Florida Statutes, are amended to read:
625 627.915 Insurer experience reporting.—
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626 (2)(a) Beginning January 1, 2027, each insurer transacting
627 private passenger automobile insurance in this state must file
628 monthly with the office a report addressing all of the following
629 areas:
630 1. Policy coverage categories, including policies in force
631 and total direct premiums earned and written.
632 2. The type, location, and limits of writings in this
633 state.
634 3. Claims reporting requirements.
635 4. Any other information deemed necessary by the
636 commission to provide the office with the ability to track
637 trends occurring in the private passenger automobile insurance
638 market.
639 (b) The commission shall adopt rules specifying the
640 information required to be reported under this subsection and
641 the format required for the reports fire, homeowner's multiple
642 peril, commercial multiple peril, medical malpractice, products
643 liability, workers' compensation, private passenger automobile
644 liability, commercial automobile liability, private passenger
645 automobile physical damage, commercial automobile physical
646 damage, officers' and directors' liability insurance, or other
647 liability insurance shall report, for each such line of
648 insurance, the information specified in this subsection to the
649 office. The information shall be reported for direct Florida
650 business only and shall be reported on a calendar-year basis
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651 annually by April 1 for the preceding calendar year:
652 (a) Direct premiums written.
653 (b) Direct premiums earned.
654 (c) Loss reserves for all known claims:
655 1. At beginning of the year.
656 2. At end of the year.
657 (d) Reserves for losses incurred but not reported:
658 1. At beginning of the year.
659 2. At end of the year.
660 (e) Allocated loss adjustment expense:
661 1. Reserve at beginning of the year.
662 2. Reserve at end of the year.
663 3. Paid during the year.
664 (f) Unallocated loss adjustment expense:
665 1. Reserve at beginning of the year.
666 2. Reserve at end of the year.
667 3. Paid during the year.
668 (g) Direct losses paid.
669 (h) Underwriting income or loss.
670 (i) Commissions and brokerage fees.
671 (j) Taxes, licenses, and fees.
672 (k) Other acquisition costs.
673 (l) General expenses.
674 (m) Policyholder dividends.
675 (n) Net investment gain or loss and other income gain or
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676 loss allocated pro rata by earned premium to Florida business
677 utilizing the investment allocation formula contained in the
678 National Association of Insurance Commissioner's Profitability
679 Report by line by state.
680 (5) Any insurer or insurer group which does not write at
681 least 0.5 percent of the Florida market based on premiums
682 written shall not have to file any report required by subsection
683 (2) other than a report indicating its percentage of the market
684 share. That percentage shall be calculated by dividing the
685 current premiums written by the preceding year's total premiums
686 written in the state for that line of insurance.
687 Section 14. Section 628.8011, Florida Statutes, is created
688 to read:
689 628.8011 Group capital calculation reports.—
690 (1) As used in this section, the term:
691 (a) "Group capital calculation instructions" means the
692 group capital calculation instructions adopted by the NAIC, as
693 amended from time to time, in accordance with the procedures
694 adopted by the NAIC if the methodology remains substantially
695 consistent.
696 (b) "Group-wide supervisor" means the regulatory official
697 authorized to engage in conducting and coordinating group-wide
698 supervision activities who is determined or acknowledged by the
699 commissioner to have sufficient contacts with an internationally
700 active insurance group. As used in this paragraph, the term
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701 "internationally active insurance group" means an insurance
702 holding company system that includes an insurer registered under
703 s. 628.801(1) and which meets all of the following criteria:
704 1. Premiums written in at least three countries.
705 2. The percentage of gross premiums written outside of the
706 United States is at least 10 percent of the insurance holding
707 company system's total gross written premiums.
708 3. Based on a 3-year rolling average, the total assets of
709 the insurance holding company system are at least $50 billion or
710 the total gross written premiums of the insurance holding
711 company system are at least $10 billion.
712 (2) Except as provided in paragraph (a), the ultimate
713 controlling person of every insurer subject to registration
714 under s. 628.801 must concurrently file with the registration an
715 annual group capital calculation report on or before April 1.
716 The report must be completed in accordance with the group
717 capital calculation instructions, which permit the office to
718 allow a controlling person who is not the ultimate controlling
719 person to file the group capital calculation report. The report
720 must be filed with the lead state regulator of the insurance
721 holding company system as determined by the office in accordance
722 with the procedures within the Financial Analysis Handbook
723 adopted by the NAIC.
724 (a) The following insurance holding company systems are
725 exempt from filing a group capital calculation report:
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726 1. An insurance holding company system that has only one
727 insurer within its holding company structure, is only licensed
728 and writing business in its domestic state, and does not assume
729 business from any other insurer.
730 2. An insurance holding company system that is required to
731 perform a group capital calculation specified by the United
732 States Federal Reserve Board. The office shall request the
733 calculation from the Federal Reserve Board under the terms of
734 information sharing agreements in effect. If the Federal Reserve
735 Board cannot share the calculation with the office, the
736 exemption under this paragraph does not apply to the insurance
737 holding company system.
738 3. An insurance holding company system in which a non-
739 United States group-wide supervisor is located within a
740 reciprocal jurisdiction as described in s. 624.610(4)(a) which
741 recognizes the United States state regulatory approach to group
742 supervision and group capital.
743 4. An insurance holding company system that meets the
744 following criteria:
745 a. It provides information to the lead state that meets
746 the requirements for accreditation under the NAIC financial
747 standards and accreditation program, either directly or
748 indirectly, through the group-wide supervisor who has determined
749 such information is satisfactory to allow the lead state to
750 comply with the NAIC group supervision approach, as detailed in
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751 the NAIC Financial Analysis Handbook.
752 b. A non-United States group-wide supervisor of the
753 insurance holding company system who is not in a reciprocal
754 jurisdiction recognizes and accepts, as specified by the office
755 in regulation, the group capital calculation as the world-wide
756 group capital assessment for United States insurance groups that
757 operate in such jurisdiction.
758 (b) Notwithstanding subparagraphs (a)3. and (a)4., the
759 office shall require the group capital calculation report for
760 United States operations of any non-United States-based
761 insurance holding company system in which, after any necessary
762 consultation with other supervisors or officials, it is deemed
763 appropriate by the office for prudential oversight and solvency
764 monitoring purposes or for ensuring the competitiveness of the
765 insurance marketplace.
766 (c) Notwithstanding the exemptions provided in
767 subparagraphs (a)1.-4., the office may exempt the ultimate
768 controlling person from filing the annual group capital
769 calculation report or may accept a group capital filing or
770 report in accordance with criteria as specified in paragraphs
771 (e) and (f).
772 (d) If the office determines that an insurance holding
773 company system no longer meets one or more of the requirements
774 for an exemption from filing the group capital calculation
775 report under subsection (a), the ultimate controlling person
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776 must file the group capital calculation report at the next
777 annual filing date unless the office provides an extension based
778 on reasonable grounds shown.
779 (e) If an insurance holding company system has previously
780 filed the annual group capital calculation report at least once,
781 the office may exempt the ultimate controlling person from
782 filing the annual group capital calculation report if the office
783 determines based upon the previous filing that the insurance
784 holding company system meets all of the following criteria:
785 1. It has annual direct and unaffiliated assumed premium,
786 including international direct and assumed premium, of less than
787 $1 billion. For purposes of this subparagraph, premiums
788 reinsured with the Federal Crop Insurance Corporation and
789 Federal Flood Program are excluded from the annual direct and
790 unaffiliated assumed premium.
791 2. It does not have insurers within its holding company
792 structure which are domiciled outside of the United States or
793 one of its territories.
794 3. It does not have a banking, depository or other
795 financial entity that is subject to an identified regulatory
796 capital framework within its holding company structure.
797 4. It attests that there are no material changes in the
798 transactions between insurers and noninsurers in the group which
799 have occurred since the last filing of the annual group capital
800 calculation report.
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801 5. The noninsurers within the holding company system do
802 not pose a material financial risk to the insurer's ability to
803 honor policyholder obligations.
804 (f) If an insurance holding company system has previously
805 filed the annual group capital calculation report at least once,
806 the office may accept a limited group capital filing in lieu of
807 the annual group capital calculation report if:
808 1. The insurance holding company system has annual direct
809 written and unaffiliated assumed premium, including
810 international direct and assumed premium, of less than $1
811 billion. For purposes of this subparagraph, premiums reinsured
812 with the Federal Crop Insurance Corporation and Federal Flood
813 Program are excluded.
814 2. The insurance holding company system does not have
815 insurers within its holding company structure who are domiciled
816 outside of the United States or one of its territories.
817 3. The insurance holding company system does not include a
818 banking, depository, or other financial entity that is subject
819 to an identified regulatory capital framework.
820 4. The insurance holding company system attests that there
821 are no material changes in transactions between insurers and
822 noninsurers in the group which have occurred since the last
823 filing of the report to the office and the noninsurers within
824 the holding company system do not pose a material financial risk
825 to the insurer's ability to honor policyholder obligations.
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826 (g) If an insurance holding company system that has
827 previously had an exemption with respect to the group capital
828 calculation report under paragraph (e) or paragraph (f), the
829 office may require at any time the ultimate controlling person
830 to file an annual group capital calculation report, completed in
831 accordance with the group capital calculation instructions, if
832 any of the following criteria are met:
833 1. An insurer within the insurance holding company system
834 is in a risk-based capital action level event as set forth in s.
835 624.4085 or a similar standard for a non-United States insurer.
836 2. An insurer within the insurance holding company system
837 meets one or more of the standards of an insurer deemed to be in
838 a hazardous financial condition as provided in s. 624.805.
839 3. An insurer within the insurance holding company system
840 otherwise exhibits qualities of a troubled insurer as determined
841 by the office based on unique circumstances including, but not
842 limited to, the type and volume of business written, ownership
843 and organizational structure, federal agency requests, and
844 international supervisor requests.
845 (h) The office shall establish by rule criteria for
846 satisfying when a non-United States jurisdiction is considered
847 to "recognize and accept" the group capital calculation report.
848 (i) The office must publish on its website a list of non-
849 United States jurisdictions that "recognize and accept" the
850 group capital calculation report.
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851 (j) The commission may adopt rules for filing the annual
852 group capital calculation report in accordance with the
853 Insurance Holding Company System Regulatory Act of the NAIC and
854 the Insurance Holding Company System Model Regulation of the
855 NAIC, as adopted in December 2020.
856 Section 15. Section 628.8012, Florida Statutes, is created
857 to read:
858 628.8012 Liquidity Stress Test Framework.—
859 (1) As used in this section, the term:
860 (a) "Liquidity Stress Test Framework" means the NAIC
861 Liquidity Stress Test Framework for Life Insurers Meeting the
862 Scope Criteria, the scope criteria applicable for a specific
863 data year, and the liquidity stress test instructions and
864 reporting templates for a specific data year. The term includes
865 amended versions of these documents if the methodology remains
866 substantially consistent.
867 (b) "Scope criteria" means the designated exposure bases
868 along with minimum magnitudes thereof for the specified data
869 year used to establish a preliminary list of insurers considered
870 scoped into the Liquidity Stress Test Framework, and as amended
871 if the methodology remains substantially consistent, for that
872 data year.
873 (c) "Scoped" means meeting at least one threshold of the
874 scope criteria and being subject to the requirements of the
875 Liquidity Stress Test Framework.
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876 (2)(a) The ultimate controlling person of every insurer
877 subject to registration and also scoped into the Liquidity
878 Stress Test Framework shall annually file the results of a
879 specific year's liquidity stress test on or before April 1. The
880 results must be filed with the office as the lead state
881 regulator of the insurance holding company system as determined
882 by the procedures within the Financial Analysis Handbook adopted
883 by the NAIC.
884 (b) Scoped insurers are exempt from the requirement under
885 paragraph (a) if the office, in consultation with the NAIC
886 Financial Stability Task Force or its successor, determines the
887 insurer should not be scoped into the Liquidity Stress Test
888 Framework for that data year.
889 (c) The performance of, and filing of the results from, a
890 specific year's liquidity stress test must comply with the
891 Liquidity Stress Test Framework's instructions and reporting
892 templates for that year and any office determinations, in
893 conjunction with the NAIC Financial Stability Task Force or its
894 successor, provided within the Liquidity Stress Test Framework.
895 (d) The office may adopt rules for filing the results of
896 the liquidity stress test in accordance with the Insurance
897 Holding Company System Regulatory Act of the NAIC and the
898 Insurance Holding Company System Model Regulation of the NAIC,
899 as adopted in December 2020.
900 Section 16. Section 628.8013, Florida Statutes, is created
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901 to read:
902 628.8013 Rebuttal of materially false statements.—
903 (1) The group capital calculation report and resulting
904 group capital ratio and the liquidity stress test, as provided
905 in s. 628.8012, along with its results and supporting
906 disclosures required under this section are regulatory tools for
907 assessing group risks and capital adequacy and group liquidity
908 risks, respectively, and are not intended as a means to rank
909 insurers or insurance holding company systems generally.
910 (2) Any representation or statement by any insurer,
911 broker, or other person engaged in any manner in the business of
912 insurance is prohibited with regard to an insurer’s or insurer's
913 group's:
914 (a) Group capital calculation report.
915 (b) Group capital ratio.
916 (c) Liquidity stress test results.
917 (d) Supporting disclosures for the liquidity stress test.
918 (e) Any component derived in the group capital
919 calculation.
920 (3) If a representation or statement prohibited under
921 subsection (2) is published in a written publication and the
922 insurer is able to demonstrate to the office with substantial
923 proof the falsity or inappropriateness, as the case may be, of
924 such representation or statement then the insurer may publish
925 announcements in a written publication if the sole purpose of
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926 the announcement is to rebut the materially false representation
927 or statement.
928 Section 17. Section 629.53, Florida Statutes, is created
929 to read:
930 629.53 Application for registration to operate as an
931 attorney in fact.—
932 (1) It is unlawful for any person to operate as an
933 attorney in fact of a reciprocal insurer without first having
934 obtained a registration from the office.
935 (2) The application for an attorney in fact registration
936 must be made, under oath, to the office by the applicant on a
937 form prescribed by the commission. The office may not require an
938 applicant to pay a fee for the registration or for filing an
939 application for such registration.
940 (3) In the application, the applicant must provide all of
941 the following information:
942 (a) All basic organizational documents, and any amendments
943 to such documents, of the applicant dated within the last year
944 and appropriately certified.
945 (b) The bylaws, rules, and regulations or similar
946 documents regulating the conduct of the internal affairs of the
947 applicant, other applicable documents, and all amendments to
948 those documents, dated within the last year and appropriately
949 certified.
950 (c) A copy of the most recent financial statement of the
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951 applicant, verified under oath by at least two of the
952 applicant's principal officers.
953 (d) A detailed plan of operation.
954 (e) An e-mail address at which the applicant agrees to
955 accept electronic service from the office.
956 (f) The background information specified in s. 629.227 for
957 each individual who is responsible for the conduct of the
958 applicant's affairs, including, but not limited to, any manager,
959 member, member of a board of directors, board of trustees,
960 executive committee, or other governing board or committee and
961 any other person or entity owning or having the right to acquire
962 10 percent or more of the voting securities or ownership
963 interest of the applicant.
964 (g) Any other information as the office reasonably
965 requires.
966 (4) Upon the filing of a sworn application, the office
967 must investigate each applicant and may issue the applicant a
968 registration if the office finds that the applicant:
969 (a) Is competent and trustworthy and intends to act in
970 good faith in the business authorized by the registration for
971 which the applicant applied.
972 (b) Has management that has a good business reputation and
973 has had experience, training, or education that qualifies the
974 applicant to conduct the business authorized by the registration
975 for which the applicant applied.
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976 (c) Has a business plan that is consistent with the
977 interests of potential insureds and the public.
978 Section 18. Section 629.54, Florida Statutes, is created
979 to read:
980 629.54 Registration expiration; renewal.—Each registration
981 for an attorney in fact issued under this chapter automatically
982 renews on March 1 of each year, provided the attorney in fact
983 remains qualified under this chapter. The office may not require
984 an attorney in fact to pay a fee for the renewal of the
985 registration.
986 Section 19. Section 629.55, Florida Statutes, is created
987 to read:
988 629.55 Grounds for denial, suspension, or revocation of
989 registration.—The office may deny, suspend, revoke, or refuse to
990 renew the registration of an attorney in fact if the office
991 determines that the attorney in fact:
992 (1) Has violated any lawful rule or order of the
993 commission or office or any applicable provision of the
994 insurance code.
995 (2) Has used or is using methods or practices in the
996 conduct of its business which render its further transaction of
997 business in this state hazardous or injurious to insured persons
998 or the public.
999 (3) Has refused to be examined or to produce its accounts,
1000 records, and files for examination, or if any of its officers,
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1001 or persons in similar positions, have refused to give
1002 information with respect to its affairs or has refused to
1003 perform any other legal obligation as to such examination when
1004 required by the office.
1005 (4) Is or was affiliated with and under the same general
1006 management or interlocking directorate or ownership as another
1007 attorney in fact who transacts business in this state without
1008 having a registration required by this chapter.
1009 (5) At any time fails to meet any qualification for which
1010 issuance of the registration could have been refused had such
1011 failure then existed and been known to the office.
1012 (6) Is under suspension or revocation in this or any other
1013 state for any license relating to the business of insurance
1014 which the attorney in fact holds.
1015 (7) A proceeding for receivership, conservatorship,
1016 rehabilitation, or other delinquency proceeding regarding the
1017 attorney in fact, or an insurer with which the attorney in fact
1018 has a contractual relationship, has been commenced in any state.
1019 (8) The financial condition or business practices of the
1020 attorney in fact otherwise pose an imminent threat to the
1021 health, safety, or welfare of the residents of this state.
1022 Section 20. Section 629.56, Florida Statutes, is created
1023 to read:
1024 629.56 Order of suspension or revocation of registration;
1025 notice.—
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1026 (1) The suspension or revocation of a registration of an
1027 attorney in fact is effected by order of the office when such
1028 order is mailed to the attorney in fact by registered or
1029 certified mail and sent electronically to the e-mail address
1030 maintained by the attorney in fact with the office for such
1031 purpose.
1032 (2) The office may publish notice of any such revocation
1033 or suspension in one or more newspapers of general circulation
1034 published in this state.
1035 Section 21. Section 629.57, Florida Statutes, is created
1036 to read:
1037 629.57 Period of suspension; obligations during
1038 suspension; reinstatement.—
1039 (1) The registration of an attorney in fact is suspended
1040 for the time period provided in the order of suspension, which
1041 may not exceed 1 year, unless such suspension or the order upon
1042 which the suspension is based is modified, rescinded, or
1043 reversed.
1044 (2) Upon expiration of the suspension period the
1045 registration is automatically reinstated as long as the
1046 registration has not otherwise terminated, unless the reasons
1047 for the suspension have not been remedied.
1048 Section 22. Section 629.58, Florida Statutes, is created
1049 to read:
1050 629.58 Administrative fine in lieu of suspension,
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1051 revocation, or nonrenewal.—
1052 (1) If the office finds that one or more grounds exist for
1053 the suspension, revocation, or nonrenewal of the registration of
1054 an attorney in fact issued under this chapter, the office may,
1055 in lieu of suspension or revocation, impose a fine upon the
1056 attorney in fact.
1057 (2) With respect to any nonwillful violation, the office
1058 may impose a fine upon the attorney in fact in an amount up to
1059 $5,000 for each violation. However, a fine may not exceed an
1060 aggregate amount of $50,000 for all nonwillful violations
1061 arising out of the same action.
1062 (3) With respect to any knowing and willful violation, the
1063 office may impose a fine upon the attorney in fact in an amount
1064 up to $25,000 for each violation. However, a fine may not exceed
1065 an aggregate amount of $250,000 for all knowing and willful
1066 violations arising out of the same action.
1067 (4) With respect to a knowing and willful violation of a
1068 lawful order or rule of the office or commission or of a
1069 provision of this code during a period in which the Governor
1070 declared a state of emergency pursuant to s. 252.36, the office
1071 may impose a $200,000 fine upon an attorney in fact for each
1072 violation, up to an aggregate amount of $1 million for all
1073 knowing and willful violations arising out of the same action
1074 relating to a covered loss or claim caused by the emergency.
1075 (5) A fine imposed by the office on the attorney in fact
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1076 may not be borne by the insurer.
1077 Section 23. Subsection (1) of section 634.141, Florida
1078 Statutes, is amended to read:
1079 634.141 Examination of companies.—
1080 (1) Motor vehicle service agreement companies licensed
1081 under this part may be subject to periodic examination by the
1082 office in the same manner and subject to the same terms and
1083 conditions as apply to insurers under part II of chapter 624.
1084 The office is not required to conduct periodic examinations
1085 pursuant to this section, but may examine a service agreement
1086 company at its discretion. An examination conducted pursuant to
1087 this section may cover a period of only the most recent 5 years.
1088 The costs of examinations conducted pursuant to ss.
1089 624.316(2)(e) and 624.3161(4) ss. 624.316(2)(e) and 624.3161(3)
1090 may not exceed 10 percent of the companies' reported net income
1091 for the prior year. The commission may by rule establish
1092 provisions whereby a company may be exempted from examination.
1093 Section 24. Section 634.314, Florida Statutes, is amended
1094 to read:
1095 634.314 Examination of associations.—Home warranty
1096 associations licensed under this part may be subject to periodic
1097 examinations by the office, in the same manner and subject to
1098 the same terms and conditions as apply to insurers under part II
1099 of chapter 624 of the insurance code. The office is not required
1100 to conduct periodic examinations pursuant to this section, but
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1101 may examine a home warranty company at its discretion. An
1102 examination conducted pursuant to this section may cover a
1103 period of only the most recent 5 years. The costs of
1104 examinations conducted pursuant to ss. 624.316(2)(e) and
1105 624.3161(4) ss. 624.316(2)(e) and 624.3161(3) may not exceed 10
1106 percent of the companies' reported net income for the prior
1107 year.
1108 Section 25. Subsection (1) of section 634.416, Florida
1109 Statutes, is amended to read:
1110 634.416 Examination of associations.—
1111 (1) Service warranty associations licensed under this part
1112 may be subject to periodic examination by the office, in the
1113 same manner and subject to the same terms and conditions that
1114 apply to insurers under part II of chapter 624. The office is
1115 not required to conduct periodic examinations pursuant to this
1116 section, but may examine a service warranty company at its
1117 discretion. An examination conducted pursuant to this section
1118 may cover a period of only the most recent 5 years. The costs of
1119 examinations conducted pursuant to ss. 624.316(2)(e) and
1120 624.3161(4) ss. 624.316(2)(e) and 624.3161(3) may not exceed 10
1121 percent of the companies' reported net income for the prior
1122 year.
1123 Section 26. This act shall take effect July 1, 2026.
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