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 1477 2023
1 A bill to be entitled
2 An act relating to insurance; creating s. 11.91, F.S.;
3 creating the Property Insurance Commission; providing
4 membership of the commission; providing powers and
5 duties of the commission; amending s. 20.121, F.S.;
6 providing for the election of the Commissioner of
7 Insurance Regulation; providing terms for the
8 commissioner; conforming provisions to changes made by
9 the act; creating s. 112.3134, F.S.; prohibiting the
10 commissioner from engaging in certain activities or
11 employment for a specified period after leaving
12 office; providing sanctions for violations;
13 authorizing specified entities to collect penalties;
14 amending s. 215.5586, F.S.; revising homeowners'
15 eligibility criteria for mitigation grants under the
16 My Safe Florida Home Program; amending s. 494.0026,
17 F.S.; requiring interest earned on insurance proceeds
18 received by mortgagees and assignees to be paid to
19 insureds; amending s. 624.401, F.S.; prohibiting
20 property insurers from claiming insolvency under
21 specified circumstances; authorizing persons who
22 engage in property insurance activities in other
23 states to engage in insurance activities in this state
24 under certain circumstances; amending s. 627.0629,
25 F.S.; requiring residential property insurers to
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26 release specified information to insureds upon
27 request; amending s. 627.701, F.S.; prohibiting
28 property insurers from using certain defenses as
29 claims denials; amending s. 627.715, F.S.; requiring
30 insurance agents to advise insurance applicants of
31 flood risk; amending s. 627.7152, F.S.; revising
32 requirements for risk assignment agreements; creating
33 s. 627.7155, F.S.; providing duties of the Office of
34 Insurance Regulation; requiring the Department of
35 Financial Services to adopt rules regarding
36 allegations of insurance fraud made by insurers or
37 their employees or contractors; providing requirements
38 for such rules; providing fines; requiring the Office
39 of Program Policy Analysis and Government
40 Accountability to conduct a study of the effectiveness
41 of the property insurance mediation program; providing
42 requirements for the study; requiring a report to the
43 Legislature; amending chapter 2022-268, Laws of
44 Florida; increasing an appropriation to the My Safe
45 Florida Home Program; providing an effective date.
46
47 Be It Enacted by the Legislature of the State of Florida:
48
49 Section 1. Section 11.91, Florida Statutes, is created to
50 read:
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51 11.91 Property Insurance Commission.—
52 (1)(a) There is created the Property Insurance Commission,
53 which shall consist of six members:
54 1. Two members appointed by the President of the Senate.
55 2. One member appointed by the Minority Leader of the
56 Senate.
57 3. Two members appointed by the Speaker of the House of
58 Representatives.
59 4. One member appointed by the House Minority Leader.
60 (b) Each member shall serve at the pleasure of the officer
61 who appointed the member. A vacancy on the commission shall be
62 filled in the same manner as the original appointment. From
63 November of each odd-numbered year through October of each even-
64 numbered year, the chair of the commission shall be appointed b y
65 the President of the Senate, and the vice chair of the
66 commission shall be appointed by the Speaker of the House of
67 Representatives. From November of each even-numbered year
68 through October of each odd-numbered year, the chair of the
69 commission shall be appointed by the Speaker of the House of
70 Representatives, and the vice chair of the commission shall be
71 appointed by the President of the Senate. The terms of members
72 shall be for 2 years and shall run from the organization of one
73 Legislature to the organization of the next Legislature.
74 (2) The commission shall be governed by joint rules of the
75 Senate and the House of Representatives, which shall remain in
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76 effect until repealed or amended by concurrent resolution.
77 (3) The commission may conduct its meetings through
78 teleconferences or other similar means.
79 (4) The commission shall be staffed by legislative staff
80 members, as assigned by the President of the Senate and the
81 Speaker of the House of Representatives.
82 (5) The commission has the power and duty to:
83 (a) Review and evaluate the insurance marketplace and
84 studies of the various insurance markets.
85 (b) Review and comment on market data produced by the
86 Office of Insurance Regulation.
87 (c) Review and comment on the setting of reserve
88 requirements for insurers.
89 (d) Exercise all other powers and perform any other duties
90 prescribed by the Legislature.
91 Section 2. Paragraphs (a) and (d) of subsection (3) of
92 section 20.121, Florida Statutes, are amended to read:
93 20.121 Department of Financial Services.—There is created
94 a Department of Financial Services.
95 (3) FINANCIAL SERVICES COMMISSION.—Effective January 7,
96 2003, there is created within the Department of Financial
97 Services the Financial Services Commission, composed of the
98 Governor, the Attorney General, the Chief Financial Officer, and
99 the Commissioner of Agriculture, which shall for purposes of
100 this section be referred to as the commission. Commission
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101 members shall serve as agency head of the Financial Services
102 Commission. The commission shall be a separate budget entity and
103 shall be exempt from the provisions of s. 20.052. Commission
104 action shall be by majority vote consisting of at least three
105 affirmative votes. The commission shall not be subject to
106 control, supervision, or direction by the Department of
107 Financial Services in any manner, including purchasing,
108 transactions involving real or personal property, personnel, or
109 budgetary matters.
110 (a) Structure.—The major structural unit of the commission
111 is the office. Each office shall be headed by a director. The
112 following offices are established:
113 1. The Office of Insurance Regulation, which shall be
114 responsible for all activities concerning insurers and other
115 risk bearing entities, including licensing, rates, policy forms,
116 market conduct, claims, issuance of certificates of authority,
117 solvency, viatical settlements, premium financing, and
118 administrative supervision, as provided under the insurance code
119 or chapter 636. The head of the Office of Insurance Regulation
120 is the Director of the Office of Insurance Regulation, who may
121 also be known as the Commissioner of Insurance Regulation.
122 Beginning with the General Election in 2024, the Commissioner of
123 Insurance Regulation shall be elected. The commissioner elected
124 in 2024 shall serve a term of 2 years; thereafter, the
125 commissioner shall serve a term of 4 years.
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126 2. The Office of Financial Regulation, which shall be
127 responsible for all activities of the Financial Services
128 Commission relating to the regulation of banks, credit unions,
129 other financial institutions, finance companies, and the
130 securities industry. The head of the office is the Director of
131 the Office of Financial Regulation, who may also be known as the
132 Commissioner of Financial Regulation. The Office of Financial
133 Regulation shall include a Bureau of Financial Investigations,
134 which shall function as a criminal justice agency for purposes
135 of ss. 943.045-943.08 and shall have a separate budget. The
136 bureau may conduct investigations within or outside this state
137 as the bureau deems necessary to aid in the enforcement of this
138 section. If, during an investigation, the office has reason to
139 believe that any criminal law of this state has or may have been
140 violated, the office shall refer any records tending to show
141 such violation to state or federal law enforcement or
142 prosecutorial agencies and shall provide investigative
143 assistance to those agencies as required.
144 (d) Appointment and qualification qualifications of the
145 Director of the Office of Financial Regulation directors.—The
146 commission shall appoint or remove the each Director of the
147 Office of Financial Regulation by a majority vote consisting of
148 at least three affirmative votes, with both the Governor and the
149 Chief Financial Officer on the prevailing side. The minimum
150 qualifications of the directors are as follows:
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151 1. Prior to appointment as director, the Director of the
152 Office of Insurance Regulation must have had, within the
153 previous 10 years, at least 5 years of responsible private
154 sector experience working full time in areas within the sc ope of
155 the subject matter jurisdiction of the Office of Insurance
156 Regulation or at least 5 years of experience as a senior
157 examiner or other senior employee of a state or federal agency
158 having regulatory responsibility over insurers or insurance
159 agencies.
160 Before 2. Prior to appointment as director, the Director
161 of the Office of Financial Regulation must have had, within the
162 previous 10 years, at least 5 years of responsible private
163 sector experience working full time in areas within the subject
164 matter jurisdiction of the Office of Financial Regulation or at
165 least 5 years of experience as a senior examiner or other senior
166 employee of a state or federal agency having regulatory
167 responsibility over financial institutions, finance companies,
168 or securities companies.
169 Section 3. Section 112.3134, Florida Statutes, is created
170 to read:
171 112.3134 Commissioner of Insurance Regulation; Office of
172 Insurance Regulation.—
173 (1) A person who has served as Commissioner of Insurance
174 Regulation may not:
175 (a) Personally represent another person or entity for
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176 compensation before the Office of Insurance Regulation; or
177 (b) Serve as an employee or contractor of an entity
178 regulated by the Office of Insurance Regulation
179
180 for a period of 7 years after vacating that office.
181 (2) A person who violates subsection (1) may be punished
182 by:
183 (a) Public censure and reprimand;
184 (b) A civil penalty not to exceed $10,000; or
185 (c) Forfeiture of any pecuniary benefits received for
186 conduct that violates this section. The amount of the pe cuniary
187 benefits must be paid to the General Revenue Fund.
188 (3) The Attorney General and Chief Financial Officer are
189 independently authorized to collect any penalty imposed under
190 this section.
191 Section 4. Paragraph (a) of subsection (2) of section
192 215.5586, Florida Statutes, is amended to read:
193 215.5586 My Safe Florida Home Program.—There is
194 established within the Department of Financial Services the My
195 Safe Florida Home Program. The department shall provide fiscal
196 accountability, contract management, and strategic leadership
197 for the program, consistent with this section. This section does
198 not create an entitlement for property owners or obligate the
199 state in any way to fund the inspection or retrofitting of
200 residential property in this state. Implementation of this
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201 program is subject to annual legislative appropriations. It is
202 the intent of the Legislature that the My Safe Florida Home
203 Program provide trained and certified inspectors to perform
204 inspections for owners of site-built, single-family, residential
205 properties and grants to eligible applicants as funding allows.
206 The program shall develop and implement a comprehensive and
207 coordinated approach for hurricane damage mitigation that may
208 include the following:
209 (2) MITIGATION GRANTS.—Financial grants shall be used to
210 encourage single-family, site-built, owner-occupied, residential
211 property owners to retrofit their properties to make them less
212 vulnerable to hurricane damage.
213 (a) For a homeowner to be eligible for a grant, the
214 following criteria mu