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 1489 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 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. 494.0026, F.S.; requiring interest earned
15 on insurance proceeds received by mortgagees and
16 assignees to be paid to insureds; amending s. 624.401,
17 F.S.; prohibiting property insurers from claiming
18 insolvency under specified circumstances; authorizing
19 persons who engage in property insurance activities in
20 other states to engage in insurance activities in this
21 state under certain circumstances; amending s.
22 627.0629, F.S.; requiring residential property
23 insurers to release specified information to insureds
24 upon request; amending s. 627.701, F.S.; prohibiting
25 property insurers from using certain defenses as
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26 claims denials; amending s. 627.715, F.S.; requiring
27 insurance agents to advise insurance applicants of
28 flood risk; creating s. 627.71555, F.S.; providing
29 duties of the Office of Insurance Regulation;
30 requiring the Department of Financial Services to
31 adopt rules regarding allegations of insurance fra ud
32 made by insurers or their employees or contractors;
33 providing requirements for such rules; providing
34 fines; requiring the Office of Program Policy Analysis
35 and Government Accountability to conduct a study of
36 the effectiveness of the property insurance mediation
37 program; providing requirements for the study;
38 requiring a report to the Legislature; amending
39 chapter 2022-268, Laws of Florida; increasing an
40 appropriation to the My Safe Florida Home Program;
41 providing an effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Section 11.91, Florida Statutes, is created to
46 read:
47 11.91 Property Insurance Commission.—
48 (1)(a) There is created the Property Insurance Commission,
49 which shall consist of six members:
50 1. Two members appointed by the President of the Senate.
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51 2. One member appointed by the Minority Leader of the
52 Senate.
53 3. Two members appointed by the Speaker of the House of
54 Representatives.
55 4. One member appointed by the House Minority Leader.
56 (b) Each member shall serve at the pleasure of the officer
57 who appointed the member. A vacancy on the commission shall be
58 filled in the same manner as the original appointment. From
59 November of each odd-numbered year through October of each even-
60 numbered year, the chair of the commission shall be appointed by
61 the President of the Senate, and the vice chair of the
62 commission shall be appointed by the Speaker of the House of
63 Representatives. From November of each even-numbered year
64 through October of each odd-numbered year, the chair of the
65 commission shall be appointed by the Speaker of the House of
66 Representatives, and the vice chair of the commission shall be
67 appointed by the President of the Senate. The terms of members
68 shall be for 2 years and shall run from the organization of one
69 Legislature to the organization of the next Legislature.
70 (2) The commission shall be governed by joint rules of the
71 Senate and the House of Representatives, which shall remain in
72 effect until repealed or amended by concurrent resolution.
73 (3) The commission may conduct its meetings through
74 teleconferences or other similar means.
75 (4) The commission shall be staffed by legislative staff
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76 members, as assigned by the President of the Senate and the
77 Speaker of the House of Representatives.
78 (5) The commission has the power and duty to:
79 (a) Review and evaluate the insurance marketplace and
80 studies of the various insurance markets.
81 (b) Review and comment on market data produced by the
82 Office of Insurance Regulation.
83 (c) Review and comment on the setting of reserve
84 requirements for insurers.
85 (d) Exercise all other powers and perform any other duties
86 prescribed by the Legislature.
87 Section 2. Paragraphs (a) and (d) of subsection (3) of
88 section 20.121, Florida Statutes, are amended to read:
89 20.121 Department of Financial Services.—There is created
90 a Department of Financial Services.
91 (3) FINANCIAL SERVICES COMMISSION.—Effective January 7,
92 2003, there is created within the Department of Financial
93 Services the Financial Services Commission, composed of the
94 Governor, the Attorney General, the Chief Financial Officer, and
95 the Commissioner of Agriculture, which shall for purposes of
96 this section be referred to as the commission. Commission
97 members shall serve as agency head of the Financial Services
98 Commission. The commission shall be a separate budget entity and
99 shall be exempt from the provisions of s. 20.052. Commission
100 action shall be by majority vote consisting of at least three
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101 affirmative votes. The commission shall not be subject to
102 control, supervision, or direction by the Department of
103 Financial Services in any manner, including purchasing,
104 transactions involving real or personal property, personnel, or
105 budgetary matters.
106 (a) Structure.—The major structural unit of the commission
107 is the office. Each office shall be headed by a director. The
108 following offices are established:
109 1. The Office of Insurance Regulation, which shall be
110 responsible for all activities concerning insurers and other
111 risk bearing entities, including licensing, rates, policy forms,
112 market conduct, claims, issuance of certificates of authority,
113 solvency, viatical settlements, premium financing, and
114 administrative supervision, as provided under the insurance code
115 or chapter 636. The head of the Office of Insurance Regulation
116 is the Director of the Office of Insurance Regulation, who may
117 also be known as the Commissioner of Insurance Regulation.
118 Beginning with the general election in 2026, the Commissioner of
119 Insurance Regulation shall be elected. The commissioner elected
120 in 2026 shall serve a term of 2 years; thereafter, the
121 commissioner shall serve a term of 4 years.
122 2. The Office of Financial Regulation, which shall be
123 responsible for all activities of the Financial Services
124 Commission relating to the regulation of banks, credit unions,
125 other financial institutions, finance companies, and the
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126 securities industry. The head of the office is the Director of
127 the Office of Financial Regulation, who may also be known as the
128 Commissioner of Financial Regulation. The Office of Financial
129 Regulation shall include a Bureau of Financial Investigations,
130 which shall function as a criminal justice agency for purposes
131 of ss. 943.045-943.08 and shall have a separate budget. The
132 bureau may conduct investigations within or outside this state
133 as the bureau deems necessary to aid in the enforcement of this
134 section. If, during an investigation, the office has reason to
135 believe that any criminal law of this state has or may have been
136 violated, the office shall refer any records tending to show
137 such violation to state or federal law enforcement or
138 prosecutorial agencies and shall provide investigative
139 assistance to those agencies as required.
140 (d) Appointment and qualification qualifications of the
141 Director of the Office of Financial Regulation directors.—The
142 commission shall appoint or remove the each Director of the
143 Office of Financial Regulation by a majority vote consisting of
144 at least three affirmative votes, with both the Governor and the
145 Chief Financial Officer on the prevailing side. The minimum
146 qualifications of the directors are as follows:
147 1. Prior to appointment as director, the Director of the
148 Office of Insurance Regulation must have had, within the
149 previous 10 years, at least 5 years of responsible private
150 sector experience working full time in areas within the scope of
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151 the subject matter jurisdiction of the Office of Insurance
152 Regulation or at least 5 years of experience as a senior
153 examiner or other senior employee of a state or federal agency
154 having regulatory responsibility over insurers or insurance
155 agencies.
156 Before 2. Prior to appointment as director, the Director
157 of the Office of Financial Regulation must have had, within the
158 previous 10 years, at least 5 years of responsible private
159 sector experience working full time in areas within the subject
160 matter jurisdiction of the Office of Financial Regulation or at
161 least 5 years of experience as a senior examiner or other senior
162 employee of a state or federal agency having regulatory
163 responsibility over financial institutions, finance companies,
164 or securities companies.
165 Section 3. Section 112.3134, Florida Statutes, is created
166 to read:
167 112.3134 Commissioner of Insurance Regulation; Office of
168 Insurance Regulation.—
169 (1) A person who has served as Commissioner of Insurance
170 Regulation may not:
171 (a) Personally represent another person or entity for
172 compensation before the Office of Insurance Regulation; or
173 (b) Serve as an employee or contractor of an entity
174 regulated by the Office of Insurance Regulation
175
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176 for a period of 7 years after vacating that office.
177 (2) A person who violates subsection (1) may be punished
178 by:
179 (a) Public censure and reprimand;
180 (b) A civil penalty not to exceed $10,000; or
181 (c) Forfeiture of any pecuniary benefits received for
182 conduct that violates this section. The amount of the pecuniary
183 benefits must be paid to the General Revenue Fund.
184 (3) The Attorney General and Chief Financial Officer are
185 independently authorized to collect any penalty imposed under
186 this section.
187 Section 4. Subsection (2) of section 494.0026, Florida
188 Statutes, is amended to read:
189 494.0026 Disposition of insurance proceeds.—The following
190 provisions apply to mortgage loans held by a mortgagee or
191 assignee that is subject to part II or part III of this chapter.
192 (2)(a) Insurance proceeds received by a mortgagee or
193 assignee that relate to compensation for damage to property or
194 contents insurance coverage in which the mortgagee or assignee
195 has a security interest must be promptly deposited into a
196 segregated account of a federally insured financial institution.
197 (b) Any interest earned on insurance proceeds received by
198 a mortgagee or assignee that relate to compensation for damage
199 to property or contents insurance coverage in which the
200 mortgagee or assignee has a security interest must be paid to
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201 the insured.
202
203 This section may not be construed to prevent an insurance
204 company from paying the insured directly for additional living
205 expenses or paying the insured directly for contents insurance
206 coverage if the mortgagee or assignee does not have a security
207 interest in the contents.
208 Section 5. Subsection (5) is added to section 624.401,
209 Florida Statutes, to read:
210 624.401 Certificate of authority required.—
211 (5)(a) A property insurer may not claim insolvency in this
212 state if the insurer still acts as an insurer, transacts
213 insurance, or otherwise engages in insurance activities in any
214 state other than this state, regardless of whether these
215 insurance activities are property insurance activities.
216