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 1015 2024
1 A bill to be entitled
2 An act relating to insurance; amending s. 624.424,
3 F.S.; requiring insurers and insurer groups in the
4 state to file certain supplemental reports monthly,
5 rather than quarterly; revising the information
6 required to be included in such reports; amending s.
7 624.4305, F.S.; providing rulemaking authority;
8 amending s. 626.9201, F.S.; prohibiting insurers from
9 cancelling and nonrenewing certain personal
10 residential and commercial residential property
11 insurance policies for a specified period under
12 certain circumstances; providing exceptions; providing
13 construction; providing rulemaking authority;
14 authorizing orders to be issued for a specified
15 purpose; amending s. 627.062, F.S.; providing
16 requirements for averaged models if such models are
17 used for insurance rates; amending s. 627.351, F.S.;
18 revising the property insurance policies issued by
19 Citizens Property Insurance Corporation which are not
20 subject to rate increase limitations; amending s.
21 628.011, F.S.; revising the scope of provisions
22 relating to insurance stock insurers, mutual insurers,
23 and captive insurers; amending s. 628.061, F.S.;
24 revising the circumstances under which the Office of
25 Insurance Regulation investigate certain entities;
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HB 1015 2024
26 amending s. 628.801, F.S.; updating the source for
27 requirement and standards for certain insurance
28 registration and regulation rules; removing obsolete
29 dates; providing rulemaking authority; creating part I
30 of ch. 629, F.S., entitled "Reciprocal Insurers";
31 amending s. 629.011, F.S.; providing definitions;
32 repealing s. 629.021, F.S., relating to the definition
33 of "reciprocal insurer"; amending s. 629.051, F.S.;
34 removing a nonapplicability provision; repealing s.
35 629.061, F.S., relating to attorney in fact of
36 reciprocal insurers; amending s. 629.071, F.S.;
37 providing requirements for surplus for reciprocal
38 insurers, rather than requirements for surplus for
39 domestic reciprocal insurers; amending s. 629.081,
40 F.S.; providing requirements for applications to
41 organize domestic reciprocal insurers; requiring the
42 office to review such applications in accordance with
43 specified provisions; authorizing a minimum number of
44 people to apply for a reciprocal certificate of
45 authority under certain circumstances; revising the
46 requirements for the declarations for such
47 applications; requiring application fees; amending s.
48 629.091, F.S.; requiring that reciprocal certificates
49 of authority, rather than certificates of authority,
50 be issued to certain entities; amending s. 629.101,
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51 F.S.; providing additional information that certain
52 powers of attorney must provide; amending s. 629.111,
53 F.S.; conforming a provision to changes made by the
54 act; amending s. 629.121, F.S.; conforming a provision
55 to changes made by the act; increasing the amount of
56 bond that attorneys of reciprocal insurers must file
57 with the office; amending s. 629.161, F.S.;
58 authorizing reciprocal insurers to borrow money for
59 specified purposes; providing construction for loan
60 interests; prohibiting such loans and interests from
61 forming a part of the insurers' legal liabilities;
62 requiring such loans and interests to be shown in
63 financial statements; requiring such loans to be
64 approved by the office; providing requirements for the
65 approval process; requiring the office to disapprove
66 proposed loans and agreements under certain
67 circumstances; providing circumstances under which
68 such loans must be repaid; requiring such repayments
69 to be approved by the office; providing
70 nonapplicability; removing provisions relating to
71 attorneys and other parties advancing funds to
72 domestic reciprocal insurers; amending s. 629.171,
73 F.S.; providing requirements for annual statements of
74 reciprocal insurers to be made and filed; amending s.
75 629.191, F.S.; providing that rights for certain
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76 applications, contracts, and memberships are for
77 reciprocal insurers, rather than domestic, foreign and
78 alien reciprocal insurers; amending s. 629.201, F.S.;
79 conforming a provision to changes made by the act;
80 creating s. 629.225, F.S.; prohibiting specified
81 acquisitions of certain voting securities under
82 certain circumstances; providing exceptions; providing
83 requirements for acquisition notices and applications
84 with the office; prohibiting acquiring persons from
85 making material changes during the pendency of the
86 office's review; authorizing requests for proceedings;
87 providing circumstances under which the office may
88 disapprove or approve acquisitions; providing that
89 votes in contravention of specified provisions are not
90 valid; providing that acquisitions contrary to
91 specified provisions are void; authorizing circuit
92 courts to enforce specified provisions under certain
93 circumstances; providing that certain entities are
94 deemed to have submit themselves to the administrative
95 jurisdiction of the office and the jurisdiction of the
96 circuit court under certain circumstances; providing
97 construction; authorizing filing of disclaimers of
98 control; authorizing the office to order certain
99 persons to cease acquisition and divest themselves of
100 stocks and ownership interests under certain
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101 circumstances; providing penalties; creating s.
102 629.227, F.S.; providing requirements for background
103 information for applications with the office to
104 organize domestic reciprocal insurers or to request
105 approval for securities acquisitions; amending s.
106 629.231, F.S.; conforming provisions to changes made
107 by the act; authorizing the office to revoke the
108 authorization for assessable reciprocal insurers to
109 convert to nonassessable reciprocal insurers; amending
110 ss. 629.241, 629.251, 629.271, and 629.281; conforming
111 provisions to changes made by the act; amending s.
112 629.291, F.S.; conforming provisions to changes made
113 by the act; prohibiting domestic stock insurers from
114 converting to reciprocal insurers; requiring certain
115 merging and conversion plans to be filed on forms
116 adopted by the office; authorizing assessable
117 reciprocal insurers to convert to nonassessable
118 reciprocal insurers under certain circumstances;
119 prohibiting insurers from issuing nonassessable
120 policies and converting assessable policies to
121 nonassessable policies under a specified circumstance;
122 providing applicability; amending s. 629.301, F.S.;
123 conforming a provision to changes made by the act;
124 providing that certain insurers are proceeded against
125 in a specified manner under certain circumstances;
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126 repealing ss. 629.401 and 629.520, F.S., relating to
127 insurance exchange and authority of limited reciprocal
128 insurer, respectively; creating s. 629.525, F.S.;
129 providing rulemaking authority; creating part II of
130 ch. 629, F.S., entitled "Insurance Exchanges";
131 creating s. 629.601, F.S.; providing purposes for the
132 creation of one or more insurance exchanges; creating
133 s. 629.602, F.S.; providing definitions; creating s.
134 629.603, F.S.; requiring a committee to be appointed
135 for a specified purpose; providing membership and
136 duties of the committee; creating s. 629.604, F.S.;
137 providing initial Board of Governors and subsequent
138 Board of Governors; providing memberships; creating s.
139 629.605, F.S.; providing the constitution and bylaws
140 of the exchange; providing the establishment of a
141 security fund; providing requirements for the security
142 fund; providing construction; requiring that any
143 amendments to the constitution and bylaws of the
144 exchange be approved by the office; creating s.
145 629.606, F.S.; providing that certain insurance
146 exchanges are not subject to taxation; providing
147 exceptions; creating s. 629.607, F.S.; requiring the
148 exchange to reimburse the office for certain expenses;
149 requiring the office and the department to conduct
150 certain examinations under certain circumstances;
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151 providing penalties; creating s. 629.608, F.S.;
152 providing authority of examiners appointed by the
153 office for specified purposes; providing penalties for
154 refusing or failing to testify or for falsely
155 testifying under certain circumstances; providing that
156 certain persons are not exempt from certain
157 prosecution and penalties; authorizing certain persons
158 to expressly waive certain immunity and privilege;
159 providing manners of serving subpoenas service and
160 making proof of service; providing witness fees and
161 mileage; amending s. 629.609, F.S.; requiring the
162 office and its examiners to make written reports of
163 examinations; providing requirements for such reports;
164 requiring that such reports be admissible in evidence;
165 authorizing the office to publish examinations results
166 under certain circumstances; requiring underwriting
167 members to file with the office certain affidavit;
168 providing requirements for such affidavits; creating
169 s. 629.611, F.S.; authorizing the office to employ
170 experts to reconstruct, rewrite, post, and balance
171 accounts and records of examined persons and entities
172 under certain circumstances; creating s. 629.612,
173 F.S.; providing applicability; requiring underwriting
174 members to maintain a minimum policyholder surplus;
175 providing investment requirements for paid-in capitals
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176 and such surpluses; requiring underwriting members to
177 be members of the security fund of an exchange;
178 creating s. 629.613, F.S.; providing requirements for
179 the establishment and operation of underwriting
180 members; creating s. 629.614, F.S.; providing
181 requirements for notices of changes in management,
182 ownerships, and assets of underwriting members;
183 providing duties of the office relating to such
184 changes; creating s. 629.615, F.S.; providing
185 requirements for recordkeeping and annual reports for
186 underwriting members; creating s. 629.616, F.S.;
187 providing limitations on coverage written by
188 underwriting members; authorizing the office to
189 establish maximum gross and net annual premiums to be
190 written by underwriting members under certain
191 circumstances; providing a definition; providing
192 construction; creating s. 629.617, F.S.; providing
193 requirements for reserves of underwriting members;
194 providing a definition; creating s. 629.618, F.S.;
195 prohibiting underwriting members from distributing
196 profits in the form of cash or other assets; providing
197 an exception; providing limits on such payments;
198 authorizing payments of stock dividends and lawful
199 dividends under certain circumstances; creating s.
200 629.619, F.S.; authorizing underwriters to borrow
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201 money for specified purposes; authorizing limits on
202 interests; prohibiting payments for commission and
203 promotion expenses in connection with the loans;
204 requiring t