This bill amends various sections of Florida Statutes concerning insurance practices, with a primary focus on enhancing regulation and reporting requirements for insurers. It increases the basis points added to the Federal Reserve's discount rate from 400 to 800 when calculating the interest rate on judgments. Additionally, it requires the Office of Insurance Regulation to produce annual reports on the relationships and compensation of executive officers for insurers, ensuring that certain data cannot be classified as a trade secret. The bill also updates the criteria for determining whether an insurance rate is excessive or unfairly discriminatory and introduces new requirements for insurers regarding loss estimates, including the use of electronic estimating programs and the retention of all versions of loss estimates for seven years.

Moreover, the bill establishes mandatory mediation for claimants and insurers before litigation can begin and outlines the insurer's obligations to respond to claims with detailed estimates. It also introduces amendments related to property insurance disputes, requiring insurers to respond to claims with either a settlement offer or a request for appraisal or alternative dispute resolution. If these processes are not completed within 90 days of a notice of intent to initiate litigation, claimants may file suit without further notice. The bill modifies mandatory binding arbitration requirements, ensuring policyholders receive a premium discount for such endorsements, and includes penalties for violations of the new regulations. The act is set to take effect on July 1, 2025.

Statutes affected:
S 554 Filed: 55.03, 627.062, 627.70131, 627.7015, 627.70152, 627.70154