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 1017 2024
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 the membership of the commission; providing for the
5 appointment of the commission chair and vice chair;
6 providing for the governance of the commission;
7 providing powers and duties of the commission;
8 amending s. 20.121, F.S.; providing for the election
9 of the Commissioner of Insurance Regulation; providing
10 for the term of office of the commissioner; conforming
11 provisions to changes made by the act; creating s.
12 112.3134, F.S.; prohibiting the commissioner from
13 engaging in certain activities or employment for a
14 specified period after leaving office; providing
15 sanctions for violations; authorizing specified
16 entities to collect specified penalties; amending s.
17 494.0026, F.S.; requiring that interest earned on
18 insurance proceeds received by mortgagees and
19 assignees be paid to insureds; amending s. 624.401,
20 F.S.; prohibiting property insurers from claiming
21 insolvency under specified circumstances; specifying a
22 condition on insurance activities engaged in within
23 this state by a person who engages in property
24 insurance activities in another state; amending s.
25 627.0629, F.S.; requiring residential property
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26 insurers to release specified information to insureds
27 upon request; amending s. 627.701, F.S.; prohibiting
28 property insurers from using certain defenses for
29 denial of claims; amending s. 627.715, F.S.; requiring
30 insurance agents to provide insurance applicants
31 written notice advising flood risk; amending s.
32 627.7152, F.S.; revising requirements for assignment
33 agreements; creating s. 627.7156, F.S.; requiring the
34 Financial Services Commission to adopt certain rules;
35 requiring the Department of Financial Services to
36 adopt rules regarding its handling of allegations of
37 insurance fraud made by insurers or their employees or
38 contractors; providing requirements for such rules;
39 providing fines; requiring the Office of Program
40 Policy Analysis and Government Accountability (OPPAGA)
41 to conduct a study of the effectiveness of the
42 property insurance mediation program; providing
43 requirements for the study; requiring OPPAGA to submit
44 a report to the Legislature by a specified date;
45 amending chapter 2022-268, Laws of Florida; specifying
46 appropriations for the My Safe Florida Home Program;
47 delaying the expiration of the program; conforming
48 provisions to changes made by the act; providing an
49 effective date.
50
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51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Section 11.91, Florida Statutes, is created to
54 read:
55 11.91 Property Insurance Commission.—
56 (1)(a) There is created the Property Insurance Commission,
57 which shall consist of the following six members:
58 1. Two members appointed by the President of the Senate.
59 2. One member appointed by the Minority Leader of the
60 Senate.
61 3. Two members appointed by the Speaker of the House of
62 Representatives.
63 4. One member appointed by the Minority Leader of the
64 House of Representatives.
65 (b) Each member shall serve at the pleasure of the officer
66 who appointed the member. A vacancy on the commission must be
67 filled in the same manner as the original appointment. From
68 November of each odd-numbered year through October of each even-
69 numbered year, the chair of the commission shall be appointed by
70 the President of the Senate, and the vice chair of the
71 commission shall be appointed by the Speaker of the House of
72 Representatives. From November of each even-numbered year
73 through October of each odd-numbered year, the chair of the
74 commission shall be appointed by the Speaker of the House of
75 Representatives, and the vice chair of the commission shall be
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76 appointed by the President of the Senate. The terms of members
77 shall be for 2 years and shall run from the organization of one
78 Legislature to the organization of the next Legislature.
79 (2) The commission is governed by joint rules of the
80 Senate and the House of Representatives, which rules shall
81 remain in effect until repealed or amended by concurrent
82 resolution.
83 (3) The commission may conduct its meetings through
84 teleconferences or other similar means.
85 (4) The commission must be staffed by legislative staff
86 members, as assigned by the President of the Senate and the
87 Speaker of the House of Representatives.
88 (5) The commission shall:
89 (a) Review and evaluate the insurance marketplace and
90 studies of the various insurance markets.
91 (b) Review and comment on market data produced by the
92 Office of Insurance Regulation.
93 (c) Review and comment on the setting of reserve
94 requirements for insurers.
95 (d) Exercise any other powers and perform any other duties
96 prescribed by the Legislature.
97 Section 2. Paragraphs (a) and (d) of subsection (3) of
98 section 20.121, Florida Statutes, are amended to read:
99 20.121 Department of Financial Services.—There is created
100 a Department of Financial Services.
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101 (3) FINANCIAL SERVICES COMMISSION.—Effective January 7,
102 2003, there is created within the Department of Financial
103 Services the Financial Services Commission, composed of the
104 Governor, the Attorney General, the Chief Financial Officer, and
105 the Commissioner of Agriculture, which shall for purposes of
106 this section be referred to as the commission. Commission
107 members shall serve as agency head of the Financial Services
108 Commission. The commission shall be a separate budget entity and
109 shall be exempt from the provisions of s. 20.052. Commission
110 action shall be by majority vote consisting of at least three
111 affirmative votes. The commission shall not be subject to
112 control, supervision, or direction by the Department of
113 Financial Services in any manner, including purchasing,
114 transactions involving real or personal property, personnel, or
115 budgetary matters.
116 (a) Structure.—The major structural unit of the commission
117 is the office. Each office shall be headed by a director. The
118 following offices are established:
119 1. The Office of Insurance Regulation, which shall be
120 responsible for all activities concerning insurers and other
121 risk bearing entities, including licensing, rates, policy forms,
122 market conduct, claims, issuance of certificates of authority,
123 solvency, viatical settlements, premium financing, and
124 administrative supervision, as provided under the insurance code
125 or chapter 636. The head of the Office of Insurance Regulation
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126 is the Director of the Office of Insurance Regulation, who may
127 also be known as the Commissioner of Insurance Regulation.
128 Beginning with the 2026 general election, the Commissioner of
129 Insurance Regulation must be elected. Each Commissioner of
130 Insurance Regulation shall serve a term of 4 years concurrent
131 with Cabinet officers as specified s. 5, Art. IV of the State
132 Constitution.
133 2. The Office of Financial Regulation, which shall be
134 responsible for all activities of the Financial Services
135 Commission relating to the regulation of banks, credit unions,
136 other financial institutions, finance companies, and the
137 securities industry. The head of the office is the Director of
138 the Office of Financial Regulation, who may also be known as the
139 Commissioner of Financial Regulation. The Office of Financial
140 Regulation shall include a Bureau of Financial Investigations,
141 which shall function as a criminal justice agency for purposes
142 of ss. 943.045-943.08 and shall have a separate budget. The
143 bureau may conduct investigations within or outside this state
144 as the bureau deems necessary to aid in the enforcement of this
145 section. If, during an investigation, the office has reason to
146 believe that any criminal law of this state has or may have been
147 violated, the office shall refer any records tending to show
148 such violation to state or federal law enforcement or
149 prosecutorial agencies and shall provide investigative
150 assistance to those agencies as required.
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151 (d) Appointment and qualification qualifications of the
152 Director of the Office of Financial Regulation directors.—The
153 commission shall appoint or remove the each Director of the
154 Office of Financial Regulation by a majority vote consisting of
155 at least three affirmative votes, with both the Governor and the
156 Chief Financial Officer on the prevailing side. Before The
157 minimum qualifications of the directors are as follows:
158 1. Prior to appointment as director, the Director of the
159 Office of Insurance Regulation must have had, within the
160 previous 10 years, at least 5 years of responsible private
161 sector experience working full time in areas within the scope of
162 the subject matter jurisdiction of the Office of Insurance
163 Regulation or at least 5 years of experience as a senior
164 examiner or other senior employee of a state or federal agency
165 having regulatory responsibility over insurers or insurance
166 agencies.
167 2. Prior to appointment as director, the Director of the
168 Office of Financial Regulation must have had, within the
169 previous 10 years, at least 5 years of responsible private
170 sector experience working full time in areas within the subject
171 matter jurisdiction of the Office of Financial Regulation or at
172 least 5 years of experience as a senior examiner or other senior
173 employee of a state or federal agency having regulatory
174 responsibility over financial institutions, finance companies,
175 or securities companies.
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176 Section 3. Section 112.3134, Florida Statutes, is created
177 to read:
178 112.3134 Commissioner of Insurance Regulation; Office of
179 Insurance Regulation.—
180 (1) For a period of 7 years after vacating the office as
181 Commissioner of Insurance Regulation, a person who has served as
182 Commissioner of Insurance Regulation may not do any of the
183 following:
184 (a) Personally represent another person or entity for
185 compensation before the Office of Insurance Regulation.
186 (b) Serve as an employee or contractor of an entity
187 regulated by the Office of Insurance Regulation.
188 (2) A violation of subsection (1) is punishable by any of
189 the following:
190 (a) Public censure and reprimand.
191 (b) A civil penalty not to exceed $10,000.
192 (c) Forfeiture of any pecuniary benefits received for such
193 violation. The amount of the pecuniary benefits must be paid to
194 the General Revenue Fund.
195 (3) The Attorney General and Chief Financial Officer are
196 independently authorized to collect any penalty imposed under
197 this section.
198 Section 4. Subsection (2) of section 494.0026, Florida
199 Statutes, is amended to read:
200 494.0026 Disposition of insurance proceeds.—The following
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201 provisions apply to mortgage loans held by a mortgagee or
202 assignee that is subject to part II or part III of this chapter.
203 (2)(a) Insurance proceeds received by a mortgagee or an
204 assignee which that relate to compensation for damage to
205 property or contents insurance coverage in which the mortgagee
206 or assignee has a security interest must be promptly deposited
207 into a segregated account of a federally insured financial
208 institution.
209 (b) Any interest earned on insurance proceeds received by
210 a mortgagee or an assignee which relate to compensation for
211 damage to property or contents insurance coverage in which the
212 mortgagee or assignee has a security interest must be paid to
213 the insured.
214
215 This section may not be construed to prevent an insurance
216 company from paying the insured directly for additional living
217 expense