The bill mandates the Commissioner of Insurance Regulation to initiate a compact with other states by December 31, 2027, aimed at establishing a national risk pool for property insurance specifically for natural disasters. This initiative is intended to mitigate the financial risks associated with such disasters for the state of Florida and its residents. Furthermore, the Commissioner is required to enter into this compact with a minimum of 14 other member states as soon as feasible.

The act is set to take effect on July 1, 2026, thereby providing a timeline for the implementation of this interstate collaboration on property insurance. The establishment of this compact is expected to enhance the resilience of Florida's property insurance market in the face of natural disasters.