Bill Summary – FastDemocracy

       Florida Senate - 2024                                     SB 102
       
       
        
       By Senator Jones
       
       
       
       
       
       34-00192-24                                            2024102__
                      A bill to be entitled                      
       An act relating to property insurance; creating s.
       11.91, F.S.; creating the Property Insurance
       Commission; providing the membership of the
       commission; providing for the appointment of the
       commission chair and vice chair; providing for the
       governance of the commission; providing powers and
       duties of the commission; amending s. 20.121, F.S.;
       providing for the election of the Commissioner of
       Insurance Regulation; providing for the term of office
       of the commissioner; conforming provisions to changes
       made by the act; creating s. 112.3134, F.S.;
       prohibiting the commissioner from engaging in certain
       activities or employment for a specified period after
       leaving office; providing sanctions for violations;
       authorizing specified entities to collect specified
       penalties; amending s. 494.0026, F.S.; requiring that
       interest earned on insurance proceeds received by
       mortgagees and assignees be paid to insureds; amending
       s. 624.401, F.S.; prohibiting property insurers from
       claiming insolvency under specified circumstances;
       specifying a condition on insurance activities engaged
       in within this state by a person who engages in
       property insurance activities in another state;
       amending s. 627.0629, F.S.; requiring residential
       property insurers to release specified information to
       insureds upon request; amending s. 627.701, F.S.;
       prohibiting property insurers from using certain
       defenses for denial of claims; amending s. 627.715,
       F.S.; requiring insurance agents to provide insurance
       applicants written notice advising flood risk;
       amending s. 627.7152, F.S.; revising requirements for
       assignment agreements; creating s. 627.7156, F.S.;
       requiring the Financial Services Commission to adopt
       certain rules; requiring the Department of Financial
       Services to adopt rules regarding its handling of
       allegations of insurance fraud made by insurers or
       their employees or contractors; providing requirements
       for such rules; providing fines; requiring the Office
       of Program Policy Analysis and Government
       Accountability (OPPAGA) to conduct a study of the
       effectiveness of the property insurance mediation
       program; providing requirements for the study;
       requiring OPPAGA to submit a report to the Legislature
       by a specified date; amending chapter 2022-268, Laws
       of Florida; specifying appropriations for the My Safe
       Florida Home Program; delaying the expiration of the
       program; conforming provisions to changes made by the
       act; providing an effective date.
        
Be It Enacted by the Legislature of the State of Florida:

       Section 1. Section 11.91, Florida Statutes, is created to
read:
       11.91 Property Insurance Commission.—
       (1)(a) There is created the Property Insurance Commission,
which shall consist of the following six members:
       1. Two members appointed by the President of the Senate.
       2. One member appointed by the Minority Leader of the
Senate.
       3. Two members appointed by the Speaker of the House of
Representatives.
       4. One member appointed by the Minority Leader of the House
of Representatives.
       (b) Each member shall serve at the pleasure of the officer
who appointed the member. A vacancy on the commission must be
filled in the same manner as the original appointment. From
November of each odd-numbered year through October of each even
numbered year, the chair of the commission shall be appointed by
the President of the Senate, and the vice chair of the
commission shall be appointed by the Speaker of the House of
Representatives. From November of each even-numbered year
through October of each odd-numbered year, the chair of the
commission shall be appointed by the Speaker of the House of
Representatives, and the vice chair of the commission shall be
appointed by the President of the Senate. The terms of members
shall be for 2 years and shall run from the organization of one
Legislature to the organization of the next Legislature.
       (2) The commission is governed by joint rules of the Senate
and the House of Representatives, which rules shall remain in
effect until repealed or amended by concurrent resolution.
       (3) The commission may conduct its meetings through
teleconferences or other similar means.
       (4) The commission must be staffed by legislative staff
members, as assigned by the President of the Senate and the
Speaker of the House of Representatives.
       (5) The commission shall:
       (a) Review and evaluate the insurance marketplace and
studies of the various insurance markets.
       (b) Review and comment on market data produced by the
Office of Insurance Regulation.
       (c) Review and comment on the setting of reserve
requirements for insurers.
       (d) Exercise any other powers and perform any other duties
prescribed by the Legislature.
       Section 2. Paragraphs (a) and (d) of subsection (3) of
section 20.121, Florida Statutes, are amended to read:
       20.121 Department of Financial Services.—There is created a
Department of Financial Services.
       (3) FINANCIAL SERVICES COMMISSION.—Effective January 7,
2003, there is created within the Department of Financial
Services the Financial Services Commission, composed of the
Governor, the Attorney General, the Chief Financial Officer, and
the Commissioner of Agriculture, which shall for purposes of
this section be referred to as the commission. Commission
members shall serve as agency head of the Financial Services
Commission. The commission shall be a separate budget entity and
shall be exempt from the provisions of s. 20.052. Commission
action shall be by majority vote consisting of at least three
affirmative votes. The commission shall not be subject to
control, supervision, or direction by the Department of
Financial Services in any manner, including purchasing,
transactions involving real or personal property, personnel, or
budgetary matters.
       (a) Structure.—The major structural unit of the commission
is the office. Each office shall be headed by a director. The
following offices are established:
       1. The Office of Insurance Regulation, which shall be
responsible for all activities concerning insurers and other
risk bearing entities, including licensing, rates, policy forms,
market conduct, claims, issuance of certificates of authority,
solvency, viatical settlements, premium financing, and
administrative supervision, as provided under the insurance code
or chapter 636. The head of the Office of Insurance Regulation
is the Director of the Office of Insurance Regulation, who may
also be known as the Commissioner of Insurance Regulation.
Beginning with the 2026 general election, the Commissioner of
Insurance Regulation must be elected. Each Commissioner of
Insurance Regulation shall serve a term of 4 years concurrent
with Cabinet officers as specified s. 5, Art. IV of the State
Constitution.
       2. The Office of Financial Regulation, which shall be
responsible for all activities of the Financial Services
Commission relating to the regulation of banks, credit unions,
other financial institutions, finance companies, and the
securities industry. The head of the office is the Director of
the Office of Financial Regulation, who may also be known as the
Commissioner of Financial Regulation. The Office of Financial
Regulation shall include a Bureau of Financial Investigations,
which shall function as a criminal justice agency for purposes
of ss. 943.045-943.08 and shall have a separate budget. The
bureau may conduct investigations within or outside this state
as the bureau deems necessary to aid in the enforcement of this
section. If, during an investigation, the office has reason to
believe that any criminal law of this state has or may have been
violated, the office shall refer any records tending to show
such violation to state or federal law enforcement or
prosecutorial agencies and shall provide investigative
assistance to those agencies as required.
       (d) Appointment and qualification qualifications of the
Director of the Office of Financial Regulation directors.—The
commission shall appoint or remove the each Director of the
Office of Financial Regulation by a majority vote consisting of
at least three affirmative votes, with both the Governor and the
Chief Financial Officer on the prevailing side. Before The
minimum qualifications of the directors are as follows:
       1. Prior to appointment as director, the Director of the
Office of Insurance Regulation must have had, within the
previous 10 years, at least 5 years of responsible private
sector experience working full time in areas within the scope of
the subject matter jurisdiction of the Office of Insurance
Regulation or at least 5 years of experience as a senior
examiner or other senior employee of a state or federal agency
having regulatory responsibility over insurers or insurance
agencies.
       2. Prior to appointment as director, the Director of the
Office of Financial Regulation must have had, within the
previous 10 years, at least 5 years of responsible private
sector experience working full time in areas within the subject
matter jurisdiction of the Office of Financial Regulation or at
least 5 years of experience as a senior examiner or other senior
employee of a state or federal agency having regulatory
responsibility over financial institutions, finance companies,
or securities companies.
       Section 3. Section 112.3134, Florida Statutes, is created
to read:
       112.3134 Commissioner of Insurance Regulation; Office of
Insurance Regulation.—
       (1) For a period of 7 years after vacating the office as
Commissioner of Insurance Regulation, a person who has served as
Commissioner of Insurance Regulation may not do any of the
following:
       (a) Personally represent another person or entity for
compensation before the Office of Insurance Regulation.
       (b) Serve as an employee or contractor of an entity
regulated by the Office of Insurance Regulation.
       (2) A violation of subsection (1) is punishable by any of
the following:
       (a) Public censure and reprimand.
       (b) A civil penalty not to exceed $10,000.
       (c) Forfeiture of any pecuniary benefits received for such
violation. The amount of the pecuniary benefits must be paid to
the General Revenue Fund.
       (3) The Attorney General and Chief Financial Officer are
independently authorized to collect any penalty imposed under
this section.
       Section 4. Subsection (2) of section 494.0026, Florida
Statutes, is amended to read:
       494.0026 Disposition of insurance proceeds.—The following
provisions apply to mortgage loans held by a mortgagee or
assignee that is subject to part II or part III of this chapter.
       (2)(a) Insurance proceeds received by a mortgagee or an
assignee which that relate to compensation for damage to
property or contents insurance coverage in which the mortgagee
or assignee has a security interest must be promptly deposited
into a segregated account of a federally insured financial
institution.
       (b) Any interest earned on insurance proceeds received by a
mortgagee or an assignee which relate to compensation for damage
to property or contents insurance coverage in which the
mortgagee or assignee has a security interest must be paid to
the insured.

This section may not be construed to prevent an insurance
company from paying the insured directly for additional living
expenses or paying the insured directly for contents insurance
coverage if the mortgagee or assignee does not have a security
interest in the contents.
       Section 5. Section 624.401, Florida Statutes, is amended to
read:
       624.401 Certificate of authority required; insurer
activities.—
       (1) No person shall act as an insurer, and no insurer or
its agents, attorneys, subscribers, or representatives shall
directly or indirectly transact insurance, in this state except
as authorized by a subsisting certificate of authority issued to
the insurer by the office, except as to such transactions as are
expressly otherwise provided for in this code.
       (2) No insurer shall from offices or by personnel or
facilities located in this state solicit insurance applications
or otherwise transact insurance in another state or country
unless it holds a subsisting certificate of authority issued to
it by the office authorizing it to transact the same kind or
kinds of insurance in this state.
       (3) This state hereby preempts the field of regulating
insurers and their agents and representatives; and no county,
city, municipality, district, school district, or political
subdivision shall require of any insurer, agent, or
representative regulated under this code any authorization,
permit, or registration of any kind for conducting transactions
lawful under the authority granted by the state under this code.
       (4)(a) Any person who acts as an insurer, transacts
insurance, or otherwise engages in insurance activities in this
state without a certificate of authority in violation of this
section commits a felony of the third degree, punishable as
provided in s. 775.082, s. 775.083, or s. 775.084.
       (b) However, any person acting as an insurer without a
valid certificate of authority who violates this section commits
insurance fraud, punishable as provided in this paragraph. If
the amount of any insurance premium collected with respect to
any violation of this section:
       1. Is less than $20,000, the offender commits a felony of
the third degree, punishable as provided in s. 775.082, s.
775.083, or s. 775.084, and the offender shall be sentenced to a
minimum term of imprisonment of 1 year.
       2. Is $20,000 or more, but less than $100,000, the offender
commits a felony of the second degree, punishable as provided in
s. 775.082, s. 775.083, or s. 775.084, and the offender shall be
sentenced to a minimum term of imprisonment of 18 months.
       3. Is $100,000 or more, the offender commits a felony of
the first degree, punishable as provided in s. 775.082, s.
775.083, or s. 775.084, and the offender shall be sentenced to a
minimum term of imprisonment of 2 years.
       (5)(a) A property insurer may not claim insolvency in this
state if the insurer still acts as an insurer, transacts
insurance, or otherwise engages in insurance activities in any
state other than this state, regardless of whether these
insurance activities are property insurance activities.
       (b) Effective January 1, 2025, any person who acts as a
property insurer, transacts property insurance, or otherwise
engages in property insurance activities in any state other than
this state may not act as an insurer, transact insurance, or
otherwise engage in insurance activities in this state unless
that person does not exclude property insurance from the
person’s insurance transactions or activities.
       Section 6. Subsection (10) is added to section 627.0629,
Florida Statutes, to read:
       627.0629 Residential property insurance; rate filings.—
       (10) An insurer must release to an insured all information
relating to an inspection or an underwriting report upon the
insured’s request.
       Section 7. Section 627.701, Florida Statutes, is amended to
read:
       627.701 Liability of insureds; coinsurance; deductibles;
prohibited denials of claims.—
       (1) A property insurer may issue an insurance policy or
contract covering either real or personal property in this state
which contains provisions requiring the insured to be liable as
a coinsurer with the insurer issuing the policy for any part of