summary
Introduced
02/28/2025
02/28/2025
In Committee
03/07/2025
03/07/2025
Crossed Over
Passed
Dead
06/16/2025
06/16/2025
Introduced Session
2025 Regular Session
Bill Summary
An act relating to insurance; amending s. 215.5586, F.S.; revising legislative intent; specifying that hurricane mitigation grants funded through the My Safe Florida Home Program may be awarded only under certain circumstances; requiring the Department of Financial Services to require that certain mitigation improvements be made as a condition of reimbursing a homeowner approved for a grant; amending ss. 624.407 and 624.408, F.S.; revising the surplus required for certain insurers applying for their original certificates of authority and to maintain their certificates of authority, respectively; amending s. 624.4073, F.S.; specifying prohibitions for persons who were officers or directors of an insolvent insurer, attorneys in fact of a reciprocal insurer, or officers or directors of an attorney in fact of a reciprocal insurer; providing applicability; requiring the Office of Insurance Regulation to prohibit insurers or reciprocal insurers from paying any compensation to certain persons for certain violations until a specified time; amending s. 627.062, F.S.; prohibiting the office from requesting an insurer waive a deemed approval for residential property insurance rate filing under certain circumstances; prohibiting the office from issuing a notice of intent to disapprove a residential property insurance rate filing under certain circumstances; creating s. 627.4263, F.S.; defining terms; requiring that insurers’ decisions to deny claims be made by qualified human professionals; specifying the duties of qualified human professionals; requiring an insurer to maintain certain records; prohibiting using artificial intelligence, machine learning systems, or algorithms as the sole basis for determining whether to deny a claim; requiring insurers to include certain information in denial communications to claimants; requiring that certain insurers detail certain information in its claims handling manual; authorizing the office to conduct market conduct examinations and investigations under certain circumstances; providing an effective date.
AI Summary
This bill makes several significant changes to Florida's insurance regulations. It modifies the My Safe Florida Home Program to specify that hurricane mitigation grants can only be awarded for improvements that result in property insurance credits or rate differentials, and requires the Department of Financial Services to potentially mandate comprehensive improvements to qualify for grants. The bill increases surplus requirements for various types of insurers, with staggered increases for residential property and specialty insurers through 2035. It also introduces new restrictions on officers and directors of insolvent insurers, expanding prohibitions on future roles in the insurance industry. Additionally, the bill creates new regulations around claims handling, requiring that claim denials be made by qualified human professionals and prohibiting artificial intelligence or algorithms from being the sole basis for claim decisions. Insurers must now maintain detailed records of claim decisions, identify human professionals involved in claim denials, and ensure that any technological systems used in claims processing are transparently documented. The Office of Insurance Regulation is given expanded authority to conduct market conduct examinations to verify compliance with these new requirements. The bill aims to increase consumer protections, improve insurance company financial stability, and ensure more transparent and human-driven claims processes.
Committee Categories
Budget and Finance
Sponsors (2)
Other Sponsors (1)
Banking and Insurance (Senate)
Last Action
Died in Appropriations Committee on Agriculture, Environment, and General Government (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/2025/1740 |
| BillText | https://www.flsenate.gov/Session/Bill/2025/1740/BillText/c1/HTML |
| Analysis - Banking and Insurance (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2025/1740/Analyses/2025s01740.bi.PDF |
| https://www.flsenate.gov/Session/Bill/2025/1740/Amendment/937706/HTML | |
| Analysis - Banking and Insurance (Pre-Meeting) | https://www.flsenate.gov/Session/Bill/2025/1740/Analyses/2025s01740.pre.bi.PDF |
| BillText | https://www.flsenate.gov/Session/Bill/2025/1740/BillText/Filed/HTML |
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