summary
Introduced
02/14/2025
02/14/2025
In Committee
04/25/2025
04/25/2025
Crossed Over
04/25/2025
04/25/2025
Passed
Dead
06/16/2025
06/16/2025
Introduced Session
2025 Regular Session
Bill Summary
An act relating to insurance; creating s. 624.341, F.S.; providing legislative findings; requiring the Department of Law Enforcement to accept and process certain fingerprints; specifying procedures for submitting and processing fingerprints; providing fees for fingerprinting; authorizing the department to exchange certain records with the Office of Insurance Regulation for certain purposes; specifying that fingerprints must be submitted in accordance with certain rules; authorizing fingerprints to be submitted through a third-party vendor authorized by the department; requiring the department to conduct certain background checks; requiring certain background checks to be conducted through the Federal Bureau of Investigation; requiring that fingerprints be submitted and entered into a specified system; specifying who bears the costs of fingerprint processing; requiring the office to review certain background checks results and to make certain determination; requiring that certain criminal history records be used by the office for certain purposes; creating s. 624.347, F.S.; providing definitions; providing applicability; establishing standards for compensation arrangements and oversight of affiliate hb643-02-c2 transactions involving insurers, reciprocal insurers, managing general agents, and attorneys in fact; providing penalties; authorizing the office to issue orders restricting certain fund transfers under specified circumstances; providing applicability of and limitations on such orders; requiring the office to adopt rules; amending s. 624.424, F.S.; specifying requirements for affiliate compensation arrangements; removing a requirement that the office consider a specified factor in determining whether certain affiliate considerations and payments by an insurer are fair and reasonable; amending s. 626.732, F.S.; revising the requirements for qualifications or licenses as general lines agents; amending s. 626.914, F.S.; removing the definition of the term "diligent effort"; amending s. 626.916, F.S.; revising the conditions under which insurance coverage is eligible for export; amending s. 627.351, F.S.; requiring notification of arbitration before the Division of Administrative Hearings as an option for dispute resolution procedures under Citizens Property Insurance Corporation; removing obsolete language; providing an effective date.
AI Summary
This bill introduces several key changes to insurance regulations in Florida, focusing on enhancing oversight and transparency in the insurance industry. It creates new requirements for fingerprint background checks for individuals involved in insurance organizations, mandating that the Department of Law Enforcement process fingerprints for incorporators, officers, employees, and other key personnel of insurers to ensure they do not have criminal backgrounds. The bill also establishes stringent standards for affiliate transactions, requiring insurers to provide detailed documentation demonstrating that fees, commissions, and payments to affiliated entities are fair and reasonable. Specifically, insurers must now document the actual cost of services, consider factors like financial condition and debt, and ensure that compensation arrangements are structured as fee-for-service with fixed amounts or hourly rates. Additionally, the bill modifies several existing statutes, including reducing the required insurance coursework hours for general lines agents from 200 to 60, removing the definition of "diligent effort" in surplus lines insurance, and providing Citizens Property Insurance Corporation policyholders with a more explicit option to choose arbitration for claim disputes. The legislation aims to improve transparency, reduce potential financial misconduct, and provide clearer guidelines for insurance-related transactions and licensing, with most provisions set to take effect on July 1, 2025.
Committee Categories
Business and Industry, Justice
Sponsors (1)
Other Sponsors (2)
Commerce Committee (House), Insurance & Banking Subcommittee (House)
Last Action
Died in Rules, companion bill(s) passed, see CS/HB 1549 (Ch. 2025-145) (on 06/16/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.flsenate.gov/Session/Bill/2025/643 |
| Analysis - Commerce Committee (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2025/643/Analyses/h0643c.COM.PDF |
| BillText | https://www.flsenate.gov/Session/Bill/2025/643/BillText/c2/PDF |
| Analysis - Civil Justice & Claims Subcommittee (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2025/643/Analyses/h0643b.CIV.PDF |
| Analysis - Civil Justice & Claims Subcommittee (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2025/643/Analyses/h0643a.CIV.PDF |
| BillText | https://www.flsenate.gov/Session/Bill/2025/643/BillText/c1/PDF |
| Analysis - Insurance & Banking Subcommittee (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2025/643/Analyses/h0643.IBS.PDF |
| BillText | https://www.flsenate.gov/Session/Bill/2025/643/BillText/Filed/PDF |
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