The proposed bill introduces new regulations for property insurance affiliates in Florida by adding three sections to the Florida Statutes. Section 624.44101 requires property insurers to provide documentation to the Office of Insurance Regulation (OIR) to ensure that financial transactions with affiliates are fair and reasonable, considering factors such as service costs and the financial condition of both parties. Contracts between insurers and affiliates executed after July 1, 2026, must include a termination clause and undergo annual reviews. The OIR is also empowered to restrict fund transfers during declared states of emergency and impose penalties for any violations.

Section 624.44102 mandates prior approval from the OIR for dividends paid to affiliates, prohibiting any distributions that could distort the insurer's financial standing. Insurers must notify the OIR before pledging capital or assets to affiliates. Section 624.44103 establishes a registration requirement for affiliates, detailing the application process, necessary documentation, and annual renewal without fees. The bill also amends existing statutes regarding insurance rate filings, requiring the OIR to consider a wider range of factors, including the financial performance of affiliates, when assessing whether rates are excessive or unfairly discriminatory. The bill is scheduled to take effect on July 1, 2026.