The bill CS/HB 881 amends various sections of Florida Statutes to enhance the regulation of insurance practices, particularly focusing on the interactions between insurers and their affiliated entities. It introduces a definition for "sufficient evidence" in insurance claims, requiring insurers to respond to evidence from claimants within specified timelines and to provide written notice of any objections. The bill also mandates the Department of Law Enforcement to accept fingerprints from individuals in the insurance industry to ensure that those managing insurance entities do not have criminal backgrounds. Additionally, it establishes standards for compensation arrangements, requiring documentation to demonstrate fairness and reasonableness, and prohibits performance-based payments for agreements made after July 1, 2026.

Moreover, the bill introduces new requirements for universal life insurance policies, including annual reports to policyholders, and allows for emergency restrictions on fund transfers between insurers and affiliates. It also establishes a subscribers' advisory committee for reciprocal insurers, with specific election processes and responsibilities, and increases the minimum surplus requirements for assessable reciprocal insurers. The act aims to improve oversight, transparency, and accountability within the insurance sector, ultimately protecting policyholders' interests and maintaining the financial integrity of insurers. The bill is set to take effect on July 1, 2025, with certain compliance deadlines extending into 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