The bill CS/HB 881 amends various sections of the 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 in the insurance industry, ensuring that those involved do not have criminal backgrounds. Additionally, the bill outlines standards for compensation arrangements between insurers and affiliated entities, requiring documentation to demonstrate that payments are fair and reasonable, while removing previous evaluation factors.

Moreover, the bill sets forth new requirements for universal life insurance policies, mandating annual reports to policyholders and clarifying conditions for dividend payments to stockholders, which must receive prior approval to maintain financial stability. It also introduces a new section regulating affiliate dividends, requiring prior approval for any financial arrangements. The governance of reciprocal insurers is further addressed by establishing a subscribers' advisory committee and setting term limits for its members. The act is designed to improve oversight, transparency, and accountability within the insurance sector, with an effective date of July 1, 2025, and specific compliance deadlines for existing insurers.

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