Bill > H1015

Introduced Session

An act relating to insurance; amending s. 624.424, F.S.; requiring insurers and insurer groups in the state to file certain supplemental reports monthly, rather than quarterly; revising the information required to be included in such reports; amending s. 624.4305, F.S.; providing rulemaking authority; amending s. 626.9201, F.S.; prohibiting insurers from cancelling and nonrenewing certain personal residential and commercial residential property insurance policies for a specified period under certain circumstances; providing exceptions; providing construction; providing rulemaking authority; authorizing orders to be issued for a specified purpose; amending s. 627.062, F.S.; providing requirements for averaged models if such models are used for insurance rates; amending s. 627.351, F.S.; revising the property insurance policies issued by Citizens Property Insurance Corporation which are not subject to rate increase limitations; amending s. 628.011, F.S.; revising the scope of provisions relating to insurance stock insurers, mutual insurers, and captive insurers; amending s. 628.061, F.S.; revising the circumstances under which the Office of Insurance Regulation investigate certain entities; amending s. 628.801, F.S.; updating the source for requirement and standards for certain insurance registration and regulation rules; removing obsolete dates; providing rulemaking authority; creating part I of ch. 629, F.S., entitled "Reciprocal Insurers"; amending s. 629.011, F.S.; providing definitions; repealing s. 629.021, F.S., relating to the definition of "reciprocal insurer"; amending s. 629.051, F.S.; removing a nonapplicability provision; repealing s. 629.061, F.S., relating to attorney in fact of reciprocal insurers; amending s. 629.071, F.S.; providing requirements for surplus for reciprocal insurers, rather than requirements for surplus for domestic reciprocal insurers; amending s. 629.081, F.S.; providing requirements for applications to organize domestic reciprocal insurers; requiring the office to review such applications in accordance with specified provisions; authorizing a minimum number of people to apply for a reciprocal certificate of authority under certain circumstances; revising the requirements for the declarations for such applications; requiring application fees; amending s. 629.091, F.S.; requiring that reciprocal certificates of authority, rather than certificates of authority, be issued to certain entities; amending s. 629.101, F.S.; providing additional information that certain powers of attorney must provide; amending s. 629.111, F.S.; conforming a provision to changes made by the act; amending s. 629.121, F.S.; conforming a provision to changes made by the act; increasing the amount of bond that attorneys of reciprocal insurers must file with the office; amending s. 629.161, F.S.; authorizing reciprocal insurers to borrow money for specified purposes; providing construction for loan interests; prohibiting such loans and interests from forming a part of the insurers' legal liabilities; requiring such loans and interests to be shown in financial statements; requiring such loans to be approved by the office; providing requirements for the approval process; requiring the office to disapprove proposed loans and agreements under certain circumstances; providing circumstances under which such loans must be repaid; requiring such repayments to be approved by the office; providing nonapplicability; removing provisions relating to attorneys and other parties advancing funds to domestic reciprocal insurers; amending s. 629.171, F.S.; providing requirements for annual statements of reciprocal insurers to be made and filed; amending s. 629.191, F.S.; providing that rights for certain applications, contracts, and memberships are for reciprocal insurers, rather than domestic, foreign and alien reciprocal insurers; amending s. 629.201, F.S.; conforming a provision to changes made by the act; creating s. 629.225, F.S.; prohibiting specified acquisitions of certain voting securities under certain circumstances; providing exceptions; providing requirements for acquisition notices and applications with the office; prohibiting acquiring persons from making material changes during the pendency of the office's review; authorizing requests for proceedings; providing circumstances under which the office may disapprove or approve acquisitions; providing that votes in contravention of specified provisions are not valid; providing that acquisitions contrary to specified provisions are void; authorizing circuit courts to enforce specified provisions under certain circumstances; providing that certain entities are deemed to have submit themselves to the administrative jurisdiction of the office and the jurisdiction of the circuit court under certain circumstances; providing construction; authorizing filing of disclaimers of control; authorizing the office to order certain persons to cease acquisition and divest themselves of stocks and ownership interests under certain circumstances; providing penalties; creating s. 629.227, F.S.; providing requirements for background information for applications with the office to organize domestic reciprocal insurers or to request approval for securities acquisitions; amending s. 629.231, F.S.; conforming provisions to changes made by the act; authorizing the office to revoke the authorization for assessable reciprocal insurers to convert to nonassessable reciprocal insurers; amending ss. 629.241, 629.251, 629.271, and 629.281; conforming provisions to changes made by the act; amending s. 629.291, F.S.; conforming provisions to changes made by the act; prohibiting domestic stock insurers from converting to reciprocal insurers; requiring certain merging and conversion plans to be filed on forms adopted by the office; authorizing assessable reciprocal insurers to convert to nonassessable reciprocal insurers under certain circumstances; prohibiting insurers from issuing nonassessable policies and converting assessable policies to nonassessable policies under a specified circumstance; providing applicability; amending s. 629.301, F.S.; conforming a provision to changes made by the act; providing that certain insurers are proceeded against in a specified manner under certain circumstances; repealing ss. 629.401 and 629.520, F.S., relating to insurance exchange and authority of limited reciprocal insurer, respectively; creating s. 629.525, F.S.; providing rulemaking authority; creating part II of ch. 629, F.S., entitled "Insurance Exchanges"; creating s. 629.601, F.S.; providing purposes for the creation of one or more insurance exchanges; creating s. 629.602, F.S.; providing definitions; creating s. 629.603, F.S.; requiring a committee to be appointed for a specified purpose; providing membership and duties of the committee; creating s. 629.604, F.S.; providing initial Board of Governors and subsequent Board of Governors; providing memberships; creating s. 629.605, F.S.; providing the constitution and bylaws of the exchange; providing the establishment of a security fund; providing requirements for the security fund; providing construction; requiring that any amendments to the constitution and bylaws of the exchange be approved by the office; creating s. 629.606, F.S.; providing that certain insurance exchanges are not subject to taxation; providing exceptions; creating s. 629.607, F.S.; requiring the exchange to reimburse the office for certain expenses; requiring the office and the department to conduct certain examinations under certain circumstances; providing penalties; creating s. 629.608, F.S.; providing authority of examiners appointed by the office for specified purposes; providing penalties for refusing or failing to testify or for falsely testifying under certain circumstances; providing that certain persons are not exempt from certain prosecution and penalties; authorizing certain persons to expressly waive certain immunity and privilege; providing manners of serving subpoenas service and making proof of service; providing witness fees and mileage; amending s. 629.609, F.S.; requiring the office and its examiners to make written reports of examinations; providing requirements for such reports; requiring that such reports be admissible in evidence; authorizing the office to publish examinations results under certain circumstances; requiring underwriting members to file with the office certain affidavit; providing requirements for such affidavits; creating s. 629.611, F.S.; authorizing the office to employ experts to reconstruct, rewrite, post, and balance accounts and records of examined persons and entities under certain circumstances; creating s. 629.612, F.S.; providing applicability; requiring underwriting members to maintain a minimum policyholder surplus; providing investment requirements for paid-in capitals and such surpluses; requiring underwriting members to be members of the security fund of an exchange; creating s. 629.613, F.S.; providing requirements for the establishment and operation of underwriting members; creating s. 629.614, F.S.; providing requirements for notices of changes in management, ownerships, and assets of underwriting members; providing duties of the office relating to such changes; creating s. 629.615, F.S.; providing requirements for recordkeeping and annual reports for underwriting members; creating s. 629.616, F.S.; providing limitations on coverage written by underwriting members; authorizing the office to establish maximum gross and net annual premiums to be written by underwriting members under certain circumstances; providing a definition; providing construction; creating s. 629.617, F.S.; providing requirements for reserves of underwriting members; providing a definition; creating s. 629.618, F.S.; prohibiting underwriting members from distributing profits in the form of cash or other assets; providing an exception; providing limits on such payments; authorizing payments of stock dividends and lawful dividends under certain circumstances; creating s. 629.619, F.S.; authorizing underwriters to borrow money for specified purposes; authorizing limits on interests; prohibiting payments for commission and promotion expenses in connection with the loans; requiring the office's approval of use of surplus nots and repayments; prohibiting such loans and interests to form a part of the underwriting members' legal liabilities; providing an exception; requiring such loans and interests to be included in financial statements; creating s. 629.6201, F.S.; providing construction and applicability of improperly issued policies, riders, endorsements, and contracts; creating s. 629.621, F.S.; providing timeframes for the satisfaction of court judgments and decrees for the recovery of money against underwriting members; authorizing the office to prohibiting underwriting members from transacting business under certain circumstances; providing requirements for proof of satisfaction of court judgments and decrees; creating s. 629.622, F.S.; providing actions that the office may take in cases of insurer insolvency or for rehabilitation and liquidation; creating s. 629.623, F.S.; prohibiting members, associated brokers, and affiliated persons from engaging in certain conduct; providing penalties and fines; providing terms and conditions of such penalties and fines; creating s. 629.624, F.S.; providing disposition of fines; requiring members and associate brokers to be suspended under certain circumstances; creating s. 629.625, F.S.; requiring suspended members and associate brokers to be deprived of all rights and privileges; authorizing the office to proceed against such persons for offenses committed or to reinstate such persons; creating s. 629.626, F.S.; requiring the office to impose the same material obligations, prohibitions, and restrictions as those imposed by other states, jurisdictions, and countries upon the exchanges and the agents and representatives of exchanges from such states, jurisdictions, and countries; creating s. 629.627, F.S.; providing applicability of certain state laws on specified agents; providing construction and liability for underwriting members that have assumed risks as to surplus lines coverage; creating s. 629.628, F.S.; providing requirements for background information for notices of changes in management, ownership, or assets of underwriting members; creating s. 628.629, F.S.; requiring that actions, requirements, and constraints imposed by the office reduce and offset similar actions, requirements, and constraints of exchanges; creating s. 629.6301, F.S.; restricting member ownerships; creating s. 629.631, F.S.; prohibiting investments in underwriting managers by certain persons; creating s. 629.632, F.S.; prohibiting underwriting members from accepting reinsurance on an assumed basis from certain entities; prohibiting broker members and management companies from placing reinsurance from such entities with underwriting members; creating s. 629.633, F.S.; providing rulemaking authority; creating 629.634, F.S.; prohibiting Florida state security and guaranty funds from covering the performance of the contractual obligations of exchanges and their members; amending ss. 163.01, 624.45, and 626.9531, F.S.; conforming cross-references; providing effective dates for certain provisions relating to reciprocal insurer surpluses and attorney bonds; providing an effective date.

AI Summary

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Cyndi Stevenson (R)*, 

Withdrawn prior to introduction (on 01/08/2024)

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Official Document