House Bill 883 amends Florida Statutes to enhance the regulatory framework for protected cell captive insurance companies. It introduces new definitions and requirements, including the terms "protected cell," "participant," and "sponsor," while revising existing definitions of "captive insurance company" and "special purpose captive insurance company." The bill establishes that a protected cell captive insurance company can only insure the risks of its protected cell participants and sets a minimum capital requirement of $100,000. It also outlines the formation and operational requirements, mandating an approved plan of operation, distinct management of assets and liabilities for each protected cell, and annual financial reporting to the Office of Insurance Regulation.

Additionally, the bill provides provisions for the conversion and affiliation of protected cell captive insurance companies, allowing for the conversion of protected cells into authorized forms of captive insurance companies with the office's consent. It details the necessary steps for conversion and the responsibilities of entities during transitions, including accounting and premium tax obligations. The bill also addresses the disaffiliation and merging of protected cells, ensuring that the original formation date is retained and that assets and liabilities are properly managed. These provisions are set to take effect on July 1, 2026, aiming to strengthen the operational integrity and financial stability of protected cell captive insurance companies in Florida.

Statutes affected:
H 883 Filed: 628.908, 628.909