The proposed bill introduces significant regulatory changes to the insurance industry in Florida, focusing on background checks for individuals managing insurance companies and oversight of affiliate transactions. It establishes Section 624.341, which requires the Department of Law Enforcement to process fingerprints from key stakeholders in the insurance sector, including incorporators and officers, and mandates background checks through the Federal Bureau of Investigation. The bill also facilitates the exchange of criminal history records between the Department of Law Enforcement and the Office of Insurance Regulation to ensure that individuals involved in insurance operations have no criminal backgrounds. Additionally, Section 624.347 is created to set standards for compensation arrangements between insurers and affiliated entities, requiring documentation of fair and reasonable payments and introducing penalties for violations.

Moreover, the bill amends existing statutes related to the eligibility for export of insurance coverage and the dispute resolution process for claims made to the Citizens Property Insurance Corporation. It establishes new criteria for insurance coverage to be eligible for export, ensuring that such coverage is not generally available from authorized insurers in the state. The bill also modifies the acknowledgment requirements for insured individuals regarding surplus lines coverage and allows the Citizens Property Insurance Corporation to offer policy forms that include an arbitration option for dispute resolution. Insured individuals must be notified in writing about this option and indicate their choice regarding arbitration. The act is set to take effect on July 1, 2025.

Statutes affected:
H 643 Filed: 626.913, 626.914, 626.916, 627.4085, 627.701, 627.70131, 627.70132, 627.70152, 627.952, 626.931, 627.351, 626.918, 626.9325, 626.9541, 626.935, 627.715
H 643 c1: 626.914, 627.351
H 643 c2: 624.424, 626.732, 626.914, 627.351