This bill amends Florida Statutes to enhance the regulatory framework for protected cell captive insurance companies by introducing new definitions and operational requirements. It defines "protected cell captive insurance company" as one that insures the risks of separate participants through participant contracts while segregating assets and liabilities into protected cells. The bill establishes minimum capital and surplus requirements of at least $100,000 for these companies and mandates that they can only insure the risks of their protected cell participants. Additionally, it outlines the formation and operational requirements, including the need for approval from the Office of Insurance Regulation for establishing protected cells and the submission of detailed operational plans.

The legislation also introduces provisions for the management and conversion of protected cell captive insurance companies. It allows for the conversion of protected cells into authorized forms of captive insurance companies with regulatory consent, ensuring that all assets and liabilities are retained. The bill permits the disaffiliation and merging of protected cells between companies, provided there is consent from the involved parties and the regulatory office. It emphasizes strict accounting and administrative procedures to maintain the separation of assets and liabilities, prohibits asset transfers between cells without consent, and addresses insolvency scenarios. The act is set to take effect on July 1, 2026.

Statutes affected:
S 990 Filed: 628.908, 628.909