The bill CS/HB 881 amends various sections of Florida Statutes to enhance the regulatory framework for insurers and their affiliates. It introduces new definitions, such as "sufficient evidence" for insurance claims, and establishes timelines for insurers to respond to claimants. The Department of Law Enforcement is granted authority to conduct background checks on individuals involved in the insurance industry, ensuring that those managing insurance transactions do not have criminal backgrounds. Additionally, the bill mandates that insurers document the fairness of compensation arrangements with affiliated entities, removing previous evaluation requirements, and introduces new reporting obligations for universal life insurance policies.

Furthermore, the bill establishes a regulatory framework for reciprocal insurers, including the creation of a subscribers' advisory committee composed of independent subscribers. It sets forth requirements for the election process of this committee and allows reciprocal insurers to merge or convert to stock or mutual insurers with a two-thirds subscriber vote. The legislation also clarifies conditions for paying dividends to affiliates and mandates annual reports detailing subscriber contributions. Several sections of existing statutes are repealed, and compliance deadlines are established, with the act set to take effect on July 1, 2025, and certain provisions allowing for a grace period until 2026 and 2027.

Statutes affected:
H 881 Filed: 627.6515
H 881 c1: 624.155, 624.424, 628.371, 629.011, 629.071, 629.121, 629.171, 629.201, 629.301, 624.45