Office of Insurance Regulation

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A bill to be entitled 1
An act relating to the Office of Insurance Regulation; 2
amending s. 20.121, F.S.; providing that the Office of 3
Insurance Regulation is responsible for all activities 4
concerning entities under its jurisdiction; amending 5
s. 501.171, F.S.; requiring covered entities under the 6
office's jurisdiction to copy the office on certain 7
notices and provide certain information, upon request, 8
to the office; amending s. 624.310, F.S.; authorizing 9
the Department of Financial Services and the office to 10
issue and deliver cease and desist orders for certain 11
activities; authorizing the department and the office 12
to seek an injunction for enforcement of such order; 13
amending s. 624.316, F.S.; removing a provision 14
authorizing the Financial Services Commission to adopt 15
the Market Conduct Examiners Handbook; amending s. 16
624.3161, F.S.; requiring the office to examine 17
administrators under certain circumstances; 18
authorizing the commission to adopt by rule the Market 19
Conduct Examiners Handbook; creating s. 624.341, F.S.; 20
requiring the Department of Law Enforcement to accept 21
and process fingerprints taken of certain persons; 22
providing applicability; specifying procedures for 23
fingerprinting; specifying that fingerprints must be 24
submitted in accordance with certain rules; requiring 25

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the Department of Law Enforcement and the Federal 26
Bureau of Investigation to conduct certain background 27
checks; requiring that certain fingerprints be 28
submitted and entered into a specified system; 29
specifying who bears the costs of fingerprint 30
processing; requiring the office to review criminal 31
history background checks and make certain 32
determinations; authorizing the Department of Law 33
Enforcement to exchange certain records with the 34
office; specifying that certain criminal records be 35
used by the office for certain purposes; amending s. 36
627.062, F.S.; revising the factors that the office 37
must consider in determining if insurance rates are 38
excessive, inadequate, or discriminatory; amending s. 39
627.0628, F.S.; requiring private passenger automobile 40
insurance to be adequately projected; amending s. 41
627.0629, F.S.; requiring the office to determine 42
minimum rate differentials for windstorm damage 43
mitigation techniques that meet or exceed the minimum 44
requirements of the Florida Building Code; authorizing 45
insurers to seek additional rate differentials; 46
amending s. 627.0645, F.S.; revising requirements of 47
rate filing with the office for certain insurers; 48
amending s. 627.711, F.S.; requiring that certain 49
discount notification forms for personal lines 50

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residential property insurance policies be sent to 51
insureds at the time of policy issuance and renewal; 52
requiring the office to contract with a state 53
university to design, operate, upgrade, and maintain a 54
specified database; requiring property insurers to 55
file certain policyholder forms within a specified 56
timeframe in the database beginning on a specified 57
date; requiring the commission to adopt rules; 58
amending s. 627.7152, F.S.; removing a provision 59
requiring insurers to report on residential and 60
commercial property insurance claims paid in a certain 61
year; amending s. 627.915, F.S.; requiring private 62
passenger automobile insurers to file specified 63
monthly reports beginning on a specified date; 64
requiring the commission to adopt rules; removing the 65
requirement for certain insurers to submit such 66
report; removing an exemption for certain insurers; 67
creating s. 628.8011, F.S.; providing definitions; 68
requiring certain persons to file a group capital 69
calculation report annually by a specified date; 70
providing requirements for such report; exempting 71
certain insurance holding company systems from filing 72
such report; requiring certain non-United States-based 73
insurance holding company systems to file a group 74
capital calculation report; authorizing the office to 75

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exempt certain persons from filing such report under 76
certain circumstances; authorizing the filing of a 77
limited group capital filing instead of the group 78
capital calculation report under certain 79
circumstances; authorizing the office to require 80
certain insurance holding company systems to file such 81
report despite qualifying for an exemption under 82
certain circumstances; requiring the office to 83
establish certain criteria and publish certain 84
information on its website; authorizing the commission 85
to adopt certain rules; creating s. 628.8012, F.S.; 86
providing definitions; requiring certain persons to 87
annually file results of a liquidity stress test in 88
compliance with specified instructions; providing an 89
exemption; authorizing the office to adopt rules; 90
creating s. 628.8013, F.S.; providing that a certain 91
report and test are for specified purposes; 92
prohibiting certain representations or statements by 93
certain persons; authorizing an insurer to rebut 94
certain information in a written publication under 95
certain circumstances; creating s. 629.53, F.S.; 96
requiring attorneys in fact of reciprocal insurers to 97
obtain a registration; providing requirements for the 98
application of such registration; prohibiting fees for 99
registration and registration application; requiring 100

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the office to investigate applicants; authorizing the 101
office to issue registrations to applicants under 102
certain circumstances; creating s. 629.54, F.S.; 103
providing for automatic renewal of the registration of 104
an attorney in fact; creating s. 629.55, F.S.; 105
authorizing the office to deny, suspend, revoke, or 106
refuse to renew the registration of an attorney in 107
fact under certain circumstances; creating s. 629.56, 108
F.S.; providing for when an order of suspension or 109
revocation of a registration is effected; authorizing 110
the office to publish certain notice in newspapers of 111
general circulation; creating s. 629.57, F.S.; 112
providing a limitation on the period of suspension of 113
an attorney in fact registration; providing that a 114
registration is automatically reinstated after the 115
suspension ends; creating s. 629.58, F.S.; authorizing 116
the office to issue administrative fines in lieu of 117
suspension or revocation; prohibiting a fine from 118
being borne by an insurer; amending ss. 634.141, 119
634.314, and 634.416, F.S.; conforming cross-120
references; providing an effective date. 121
122
Be It Enacted by the Legislature of the State of Florida: 123
124
Section 1. Paragraph (a) of subsection (3) of section 125

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20.121, Florida Statutes, is amended to read: 126
20.121 Department of Financial Services.—There is created 127
a Department of Financial Services. 128
(3) FINANCIAL SERVICES COMMISSION.—Effective January 7, 129
2003, there is created within the Department of Financial 130
Services the Financial Services Commission, composed of the 131
Governor, the Attorney General, the Chief Financial Officer, and 132
the Commissioner of Agriculture, which shall for purposes of 133
this section be referred to as the commission. Commission 134
members shall serve as agency head of the Financial Services 135
Commission. The commission shall be a separate budget entity and 136
shall be exempt from the provisions of s. 20.052. Commission 137
action shall be by majority vote consisting of at least three 138
affirmative votes. The commission shall not be subject to 139
control, supervision, or direction by the Department of 140
Financial Services in any manner, including purchasing, 141
transactions involving real or personal property, personnel, or 142
budgetary matters. 143
(a) Structure.—The major structural unit of the commission 144
is the office. Each office shall be headed by a director. The 145
following offices are established: 146
1. The Office of Insurance Regulation, which shall be 147
responsible for all activities concerning insurers, and other 148
risk bearing entities, and other entities under its 149
jurisdiction, including licensing, rates, policy forms, market 150

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conduct, claims, issuance of certificates of authority, 151
solvency, viatical settlements, premium financing, and 152
administrative supervision, as provided under the insurance code 153
or chapter 636. The head of the Office of Insurance Regulation 154
is the Director of the Office of Insurance Regulation, who may 155
also be known as the Commissioner of Insurance Regulation. 156
2. The Office of Financial Regulation, which shall be 157
responsible for all activities of the Financial Services 158
Commission relating to the regulation of banks, credit unions, 159
other financial institutions, finance companies, and the 160
securities industry. The head of the office is the Director of 161
the Office of Financial Regulation, who may also be known as the 162
Commissioner of Financial Regulation. The Office of Financial 163
Regulation shall include a Bureau of Financial Investigations, 164
which shall function as a criminal justice agency for purposes 165
of ss. 943.045-943.08 and shall have a separate budget. The 166
bureau may conduct investigations within or outside this state 167
as the bureau deems necessary to aid in the enforcement of this 168
section. If, during an investigation, the office has reason to 169
believe that any criminal law of this state has or may have been 170
violated, the office shall refer any records tending to show 171
such violation to state or federal law enforcement or 172
prosecutorial agencies and shall provide investigative 173
assistance to those agencies as required. 174
Section 2. Paragraph (f) is added to subsection (3) of 175

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section 501.171, Florida Statutes, to read: 176
501.171 Security of confidential personal information.— 177
(3) NOTICE TO DEPARTMENT OF SECURITY BREACH.— 178
(f) If a covered entity is subject to the jurisdiction of 179
the Office of Insurance Regulation, the covered entity must copy 180
the office on the notice provided to the department. The covered 181
entity must provide any information listed in paragraph (c) to 182
the office upon its request. 183
Section 3. Paragraph (g) is added to subsection (5) of 184
section 624.310, Florida Statutes, to read: 185
624.310 Enforcement; cease and desist orders; removal of 186
certain persons; fines.— 187
(5) ADMINISTRATIVE FINES; ENFORCEMENT.— 188
(g) If the department or office has probable cause to 189
believe that a person is performing activities that require a 190
license, registration, certificate of authority, or any other 191
form of authorization from the department or office and the 192
person performing such activities does not hold the required 193
license, registration, certificate of authority, or other form 194
of authorization, the department or office may issue and deliver 195
to such person a notice to cease and desist from such violation 196
of the insurance code. In addition, the department or office may 197
issue and deliver a notice to cease and desist to any person who 198
aids and abets the person violating the insurance code. For the 199
purpose of enforcing a cease and desist order under this 200

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paragraph, the department or office may file an action for a 201
court proceeding in the name of this state seeking the issuance 202
of an injunction against a person who violates any provision of 203
the cease and desist order. 204
Section 4. Paragraph (c) of subsection (1) of section 205
624.316, Florida Statutes, is amended to read: 206
624.316 Examination of insurers.— 207
(1) 208
(c) The office shall examine each insurer according to 209
accounting procedures designed to fulfill the requirements of 210
generally accepted insurance accounting principles and practices 211
and good internal control and in keeping with generally accepted 212
accounting forms, accounts, records, methods, and practices 213
relating to insurers. To facilitate uniformity in examinations, 214
the commission may adopt, by rule, the Market Conduct Examiners 215
Handbook and the Financial Condition Examiners Handbook of the 216
National Association of Insurance Commissioners, 2002, and may 217
adopt subsequent amendments thereto, if the examination 218
methodology remains substantially consistent. 219
Section 5. Subsections (2) through (9) of section 220
624.3161, Florida Statutes, are renumbered as subsections (3) 221
through (10), respectively, subsection (1), paragraph (e) of 222
present subsection (8), and paragraph (a) of present subsection 223
(9) are amended, and a new subsection (2) is added to that 224
section, to read: 225

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624.3161 Market conduct examinations.— 226
(1) As often as it deems necessary, the office shall 227
examine each licensed rating organization, each advisory 228
organization, administrator, each group, association, carrier, 229
as defined in s. 440.02, or other organization of insurers which 230
engages in joint underwriting or joint reinsurance, the attorney 231
in fact of each reciprocal insurer, and each authorized insurer 232
transacting in this state any class of insurance to which 233
chapter 627 is applicable. The examination must be for the 234
purpose of ascertaining compliance by the person examined with 235
the applicable provisions of this chapter and chapters 440, 626, 236
627, and 635. 237
(2) To facilitate uniformity in examinations, the 238
commission may adopt, by rule, the Market Conduct Examiners 239
Handbook of the National Association of Insurance Commissioners, 240
2024, and may adopt subsequent amendments thereto, if the 241
examination methodology remains substantially consistent. 242
(9)(8) The office shall create, and the commission shall 243
adopt by rule, a selection methodology for scheduling and 244
conducting market conduct examinations of insurers and other 245
entities regulated by the office. This requirement does not 246
restrict the authority of the office to conduct market conduct 247
examinations as often as it deems necessary. Such selection 248
methodology must prioritize market conduct examinations of 249
insurers and other entities regulated by the office to whom any 250

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of the following conditions applies: 251
(e) The insurer meets the criteria in subsection (8) (7). 252
253
The office shall present the proposed rule required by this 254
subsection to the commission no later than October 1, 2023. In 255
addition to the methodology required by this subsection, the 256
rule must provide criteria for how the office, in coordination 257
with the department, will determine what constitutes a 258
disproportionate number of claims-handling complaints described 259
in paragraph (b). 260
(10)(9) If the office concludes through an examination 261
pursuant to this section that an insurer providing liability 262
coverage in this state exhibits a pattern or practice of 263
violations of the Florida Insurance Code during any 264
investigation or examination of the insurer, the office must 265
review the insurer's claims-handling practices to determine if 266
the insurer should be subject to the enhanced enforcement 267
penalties of this subsection. 268
(a) A liability insurer may be subject to enhanced 269
enforcement penalties if the office reviews the insurer's 270
claims-handling practices and finds a pattern or practice of the 271
insurer failing to do the following when responding to covered 272
liability claims under an insurance policy, after receiving 273
actual notice of such claims: 274
1. Assign a licensed and appointed insurance adjuster to 275

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investigate whether coverage is provided under the policy and 276
diligently attempt to resolve any questions concerning the 277
extent of the insured's coverage. 278
2. Evaluate the claim fairly, honestly, and with due 279
regard for the interests of the insured based on available 280
information. 281
3. Request from the insured or claimant additional 282
relevant information the insurer reasonably deems necessary to 283
evaluate whether to settle a claim. 284
4. Conduct all oral and written communications with the 285
insured with honesty and candor. 286
5. Make reasonable efforts to explain to persons not 287
represented by counsel matters requiring expertise beyond the 288
level normally expected of a layperson with no training in 289
insurance or claims-handling issues. 290
6. Retain all written and recorded communications and 291
create and retain a summary of all verbal communications in a 292
reasonable manner for a period of not less than 2 years after 293
the later of the entry of a final judgment against the insured 294
in excess of policy limits or, if an extracontractual claim is 295
made, the conclusion of that claim and any related appeals. 296
7. Within 30 days after a request, provide the insured 297
with all communications related to the insurer's handling of the 298
claim which are not privileged as to the insured. 299
8. Provide, upon request and at the insurer's expense, 300

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reasonable accommodations necessary to communicate effectively 301
with an insured covered under the Americans with Disabilities 302
Act. 303
9. When handling a third-party claim, communicate each of 304
the following to the insured: 305
a. The identity of any other person or entity the insurer 306
has reason to believe may be liable. 307
b. The insurer's final and completed estimate of the 308
claim. 309
c. The possibility of an excess judgment. 310
d. The insured's right to secure personal counsel at his 311
or her own expense. 312
e. That the insured should cooperate with the insurer, 313
including providing information required by the insurer because 314
of a settlement opportunity or in accordance with the policy. 315
f. Any formal settlement demands or offers to settle by 316
the claimant and any offers to settle on behalf of the insured. 317
10. Respond to any request for insurance information in 318
compliance with s. 626.9372 or s. 627.4137, as applicable. 319
11. Seek to obtain a general release of each insured in 320
making any settlement offer to a third-party claimant. 321
12. Take reasonable measures to preserve any documentary, 322
photographic, and forensic evidence as needed for the defense of 323
the liability claim if it appears likely that the insured's 324
liability exposure is greater than policy limits and the insurer 325

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fails to secure a general release in favor of the insured. 326
13. Comply with subsections (1) and (3) (2), if 327
applicable. 328
14. Comply with the Unfair Insurance Trade Practices Act. 329
Section 6. Section 624.341, Florida Statutes, is created 330
to read: 331
624.341 Authority of Department of Law Enforcement to 332
accept fingerprints of, and exchange criminal history records 333
with respect to, certain persons applying to the Office of 334
Insurance Regulation.— 335
(1) The Department of Law Enforcement must accept 336
fingerprints from key managerial personnel with authority over 337
the financial and operational decisions of the entities 338
licensed, certified, registered, or holding a certificate of 339
authority under the Florida Insurance Code. This section applies 340
to the following persons as required by the office: 341
(a) Incorporators, stockholders, officers, directors, and 342
attorneys in fact under ss. 624.404(3)(c), 628.071(1)(c), 343
629.091(2), 632.638(3), and 641.22(6)(c). 344
(b) Individuals responsible for the management of and 345
conduct of the management of an arrangement including all 346
trustees, officers, and directors under s. 624.439(2). 347
(c) Individuals employed or retained by an administrator 348
who are responsible for the conduct of the affairs of the 349
administrator, including members of the board of directors, 350

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board of trustees, executive committee, other governing board or 351
committee, and the principal officers in the case of a 352
corporation or the partners or members in the case of a 353
partnership or association of the administrator under s. 354
626.8805(2)(c). 355
(d) Individuals who are responsible for a viatical 356
settlement provider's affairs including but not limited to any 357
member of the viatical settlement provider's board of directors, 358
board of trustees, executive committee, or other governing board 359
or committee and any other person or entity owning or having the 360
right to acquire ten percent or more of the voting securities of 361
the viatical settlement provider under s. 626.9912(3)(d). 362
(e) Managers of a company under ss. 627.829(1), 363
627.832(1)(g) and (j). 364
(f) Directors, officers, trustees, or other natural 365
persons performing duties similar to those of a director, 366
officer, or trustee for the corporation, association, or trust 367
under s. 628.461(3)(a). 368
(g) Directors, officers, trustees, partners, owners, 369
managers, or joint venturers, or others performing functions 370
similar to those of a director, officer, or trustee under s. 371
628.4615(5)(a)7. 372
(h) Managers of a company under ss. 634.041(2), 373
634.304(2), and 634.404(2). 374
(i) Members of the board of directors, board of trustees, 375

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executive committee, other governing board or committee, 376
officers, contracted management company personnel, and any other 377
person or entity owning or having the right to acquire ten 378
percent or more of the voting securities under ss. 636.008(3) 379
and 636.204(2)(c). 380
(j) Persons who are to be responsible for the conduct of 381
the affairs of a clinic including all members of the governing 382
body, the officers and directors in the case of a corporation, 383
and the partners or associates in the case of a partnership or 384
association under s. 641.405(2)(c). 385
(k) All natural persons who are directors and officers, 386
and each shareholder who owns or controls ten percent or more of 387
the shares of the corporation under ss. 642.021, and 642.032. 388
(l) Members, shareholders, and persons in charge of 389
providing care under a certificate of authority subject to s. 390
651.022(2)(c). 391
(2) The Department of Law Enforcement shall accept and 392
process fingerprints of individuals identified by the office in 393
subsection (1). 394
(3) Each person required to submit fingerprints to the 395
office must provide a full set of fingerprints to the office or 396
to a vendor, an entity, or an agency authorized by s. 397
943.053(13). The office, vendor, entity, or agency shall forward 398
the fingerprints to the Department of Law Enforcement for state 399
processing, and the Department of Law Enforcement shall forward 400

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the fingerprints to the Federal Bureau of Investigation for 401
national processing. Fees for state and federal fingerprint 402
processing must be borne by the person submitting the 403
fingerprints. The state cost for fingerprint processing is as 404
provided in s. 943.053(3)(e). 405
(a) Fingerprints may be submitted through a third-party 406
vendor authorized by the Department of Law Enforcement. 407
(b) The Department of Law Enforcement shall conduct the 408
state criminal history background check, and a federal criminal 409
history background check shall be conducted through the Federal 410
Bureau of Investigation. 411
(c) All fingerprints submitted to the Department of Law 412
Enforcement must be submitted and entered into the statewide 413
automated biometric identification system established in s. 414
943.05(2)(b) and available for use in accordance with s. 415
943.05(2)(g) and (h). 416
(d) The costs of fingerprint processing, including the 417
cost of retaining the fingerprints, must be borne by the person 418
subject to the background checks. 419
(e) The office shall review the results of the state and 420
federal criminal history background checks and determine whether 421
the applicant meets the requirements for the certificate of 422
authority, certification, registration, or license to operate in 423
this state. 424
(4) The Department of Law Enforcement may, to the extent 425

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provided by federal law, exchange any state or national criminal 426
history records with the office for the purpose of issuance or 427
continuation of a certificate of authority, certification, 428
registration, or license to operate in this state. 429
(5) Statewide criminal records obtained through the 430
Department of Law Enforcement, federal criminal records obtained 431
through the Federal Bureau of Investigation, and local criminal 432
records obtained through local law enforcement agencies must be 433
used by the office for the purpose of issuance or continuation 434
of certificates of authority, certifications, registrations, or 435
licenses issued to operate in this state. 436
(6) Fingerprints must be submitted in accordance with 437
rules adopted by the commission. 438
Section 7. Paragraph (b) of subsection (2) of section 439
627.062, Florida Statutes, is amended to read: 440
627.062 Rate standards.— 441
(2) As to all such classes of insurance: 442
(b) Upon receiving a rate filing, the office shall review 443
the filing to determine if a rate is excessive, inadequate, or 444
unfairly discriminatory. In making that determination, the 445
office shall, in accordance with generally accepted and 446
reasonable actuarial techniques, consider the following factors: 447
1. Past and prospective loss experience within and without 448
this state. 449
2. Past and prospective expenses. 450

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3. The degree of competition among insurers for the risk 451
insured. 452
4. Investment income reasonably expected by the insurer, 453
consistent with the insurer's investment practices, from 454
investable premiums anticipated in the filing, plus any other 455
expected income from currently invested assets representing the 456
amount expected on unearned premium reserves and loss reserves. 457
The commission may adopt rules using reasonable techniques of 458
actuarial science and economics to specify the manner in which 459
insurers calculate investment income attributable to classes of 460
insurance written in this state and the manner in which 461
investment income is used to calculate insurance rates. Such 462
manner must contemplate allowances for an underwriting profit 463
factor and full consideration of investment income that produces 464
a reasonable rate of return; however, investment income from 465
invested surplus may not be considered. 466
5. The reasonableness of the judgment reflected in the 467
filing. 468
6. Dividends, savings, or unabsorbed premium deposits 469
allowed or returned to policyholders, members, or subscribers in 470
this state. 471
7. The adequacy of loss reserves. 472
8. The cost of reinsurance. The office may not disapprove 473
a rate as excessive solely due to the insurer having obtained 474
catastrophic reinsurance to cover the insurer's estimated 250-475

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year probable maximum loss or any lower level of loss. 476
9. Trend factors, including trends in actual losses per 477
insured unit for the insurer making the filing. 478
10. Conflagration and catastrophe hazards, if applicable. 479
11. Projected hurricane losses, if applicable, which must 480
be estimated using a model or method found to be acceptable or 481
reliable by the Florida Commission on Hurricane Loss Projection 482
Methodology, and as further provided in s. 627.0628. 483
12. Projected flood losses for personal residential 484
property insurance, if applicable, which must may be estimated 485
using a model or method, or a straight average of model results 486
or output ranges, independently found to be acceptable or 487
reliable by the Florida Commission on Hurricane Loss Projection 488
Methodology and as further provided in s. 627.0628 for filings 489
submitted to the office after January 1, 2027. 490
13. For filings submitted to the office after January 1, 491
2027, projected comprehensive losses, if applicable, used to 492
determine a hurricane catastrophe load for private passenger 493
automobile insurance, which must be estimated using a model or 494
method found to be acceptable or reliable by the Florida 495
Commission on Hurricane Loss Projection Methodology under s. 496
627.0628. 497
14.13. A reasonable margin for underwriting profit and 498
contingencies. 499
15.14. The cost of medical services, if applicable. 500

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16.15. Other relevant factors that affect the frequency or 501
severity of claims or expenses. 502
503
The provisions of this subsection do not apply to workers' 504
compensation, employer's liability insurance, and motor vehicle 505
insurance. 506
Section 8. Paragraph (a) of subsection (1) and paragraph 507
(a) of subsection (3) of section 627.0628, Florida Statutes, are 508
amended to read: 509
627.0628 Florida Commission on Hurricane Loss Projection 510
Methodology; public records exemption; public meetings 511
exemption.— 512
(1) LEGISLATIVE FINDINGS AND INTENT.— 513
(a) Reliable projections of hurricane losses are necessary 514
in order to ensure assure that rates for residential property 515
insurance and private passenger automobile insurance meet the 516
statutory requirement that rates be neither excessive nor 517
inadequate. The ability to accurately project hurricane losses 518
has been enhanced greatly in recent years through the use of 519
computer modeling. It is the public policy of this state to 520
encourage the use of the most sophisticated actuarial methods to 521
ensure assure that consumers are charged lawful rates for 522
residential property insurance and private passenger automobile 523
insurance coverage. 524
(3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.— 525

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(a) The commission shall consider any actuarial methods, 526
principles, standards, models, or output ranges that have the 527
potential for improving the accuracy of or reliability of the 528
hurricane loss projections used in residential property 529
insurance and private passenger automobile insurance rate 530
filings and flood loss projections used in rate filings for 531
personal lines residential flood insurance coverage. The 532
commission shall, from time to time, adopt findings as to the 533
accuracy or reliability of particular methods, principles, 534
standards, models, or output ranges. 535
Section 9. Subsection (1) of section 627.0629, Florida 536
Statutes, is amended to read: 537
627.0629 Residential property insurance; rate filings.— 538
(1) It is the intent of the Legislature that insurers 539
provide savings to consumers who install or implement windstorm 540
damage mitigation techniques, alterations, or solutions to their 541
properties to prevent windstorm losses. A rate filing for 542
residential property insurance must include actuarially 543
reasonable discounts, credits, or other rate differentials, or 544
appropriate reductions in deductibles, for properties on which 545
fixtures or construction techniques demonstrated to reduce the 546
amount of loss in a windstorm have been installed or 547
implemented. The fixtures or construction techniques must 548
include, but are not limited to, fixtures or construction 549
techniques that enhance wind uplift prevention, roof strength, 550

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roof covering performance, roof-to-wall strength, wall-to-floor-551
to-foundation strength, opening protection, and window, door, 552
and skylight strength. Credits, discounts, or other rate 553
differentials, or appropriate reductions in deductibles, for 554
fixtures and construction techniques that meet or exceed the 555
minimum requirements of the Florida Building Code must be 556
included in the rate filing. The office shall determine the 557
minimum discounts, credits, other rate differentials, and 558
appropriate reductions in deductibles that reflect the full 559
actuarial value of such fixtures and construction techniques. 560
The office's determination may not prohibit an insurer from 561
seeking additional actuarily justified credits, discounts or 562
other rate differentials, or appropriate reductions in 563
deductibles for fixtures and construction techniques that meet 564
or exceed the minimum requirements of the Florida Building Code 565
revaluation, which may be used by insurers in rate filings. 566
Effective October 1, 2023, each insurer subject to the 567
requirements of this section must provide information on the 568
insurer's website describing the hurricane mitigation discounts 569
available to policyholders. Such information must be accessible 570
on, or through a hyperlink located on, the home page of the 571
insurer's website or the primary page of the insurer's website 572
for property insurance policyholders or applicants for such 573
coverage in this state. On or before January 1, 2025, and every 574
5 years thereafter, the office shall reevaluate and update the 575

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fixtures or construction techniques demonstrated to reduce the 576
amount of loss in a windstorm and the discounts, credits, other 577
rate differentials, and appropriate reductions in deductibles 578
that reflect the full actuarial value of such fixtures or 579
construction techniques. The office shall adopt rules and forms 580
necessitated by such reevaluation. 581
Section 10. Paragraph (b) of subsection (3) of section 582
627.0645, Florida Statutes, is amended to read: 583
627.0645 Annual filings.— 584
(3) The filing requirements of this section shall be 585
satisfied by one of the following methods: 586
(b) If no rate change is proposed, a filing which consists 587
of a certification by an actuary that the existing rate level 588
produces rates which are actuarially sound and which are not 589
inadequate, as defined in s. 627.062. However, for residential 590
property and private passenger automobile insurers, a full rate 591
filing is required after 2 consecutive years of certification 592
under this paragraph. 593
Section 11. Subsection (1) of section 627.711, Florida 594
Statutes, is amended, and paragraphs (c), (d), and (e) are added 595
to subsection (2) of that section, to read: 596
627.711 Notice of premium discounts for hurricane loss 597
mitigation; uniform mitigation verification inspection form.— 598
(1) Using a form prescribed by the Office of Insurance 599
Regulation, the insurer shall clearly notify the applicant or 600

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policyholder of any personal lines residential property 601
insurance policy, at the time of the issuance of the policy and 602
at each renewal, of the availability and the range of each 603
premium discount, credit, other rate differential, or reduction 604
in deductibles, and combinations of discounts, credits, rate 605
differentials, or reductions in deductibles, for properties on 606
which fixtures or construction techniques demonstrated to reduce 607
the amount of loss in a windstorm can be or have been installed 608
or implemented. The prescribed form shall describe generally 609
what actions the policyholders may be able to take to reduce 610
their windstorm premium. The prescribed form and a list of such 611
ranges approved by the office for each insurer licensed in the 612
state and providing such discounts, credits, other rate 613
differentials, or reductions in deductibles for properties 614
described in this subsection shall be available for electronic 615
viewing and download from the Department of Financial Services' 616
or the Office of Insurance Regulation's Internet website. The 617
prescribed form must also notify the applicant or policyholder 618
if the insurer offers an enhanced discount for a roof system 619
that uses a secondary water resistance, and the form must 620
generally list the amount of discount by type of secondary water 621
resistance. The Financial Services Commission may adopt rules to 622
implement this subsection. 623
(2) 624
(c) The office shall contract with a state university to 625

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design, operate, upgrade, and maintain a statewide database for 626
uniform mitigation verification inspection forms. This database 627
must be managed by the office to collect and evaluate mitigation 628
features of residential properties within this state. 629
(d) Beginning January 1, 2027, each insurer must 630
electronically file within 15 business days after receipt a copy 631
of each uniform mitigation inspection form submitted by a 632
policyholder in the database created under paragraph (c) using 633
the electronic format prescribed by the office. 634
(e) The Financial Services Commission shall adopt rules to 635
implement this subsection. 636
Section 12. Subsection (12) of section 627.7152, Florida 637
Statutes, is amended, to read: 638
627.7152 Assignment agreements.— 639
(12) The office shall require each insurer to report by 640
January 30, 2022, and each year thereafter data on each 641
residential and commercial property insurance claim paid in the 642
prior calendar year under an assignment agreement. The Financial 643
Services Commission shall adopt by rule a list of the data 644
required, which must include specific data about claims 645
adjustment and settlement timeframes and trends, grouped by 646
whether litigated or not litigated and by loss adjustment 647
expenses. 648
Section 13. Subsections (2) and (5) of section 627.915, 649
Florida Statutes, are amended to read: 650

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627.915 Insurer experience reporting.— 651
(2)(a) Beginning January 1, 2027, each insurer transacting 652
private passenger automobile insurance in this state must file 653
monthly with the office a report addressing all of the following 654
areas: 655
1. Policy coverage categories, including policies in force 656
and total direct premiums earned and written. 657
2. The type, location, and limits of writings in this 658
state. 659
3. Claims reporting requirements. 660
4. Any other information deemed necessary by the 661
commission to provide the office with the ability to track 662
trends occurring in the private passenger automobile insurance 663
market. 664
(b) The commission shall adopt rules specifying the 665
information required to be reported under this subsection and 666
the format required for the reports fire, homeowner's multiple 667
peril, commercial multiple peril, medical malpractice, products 668
liability, workers' compensation, private passenger automobile 669
liability, commercial automobile liability, private passenger 670
automobile physical damage, commercial automobile physical 671
damage, officers' and directors' liability insurance, or other 672
liability insurance shall report, for each such line of 673
insurance, the information specified in this subsection to the 674
office. The information shall be reported for direct Florida 675

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business only and shall be reported on a calendar-year basis 676
annually by April 1 for the preceding calendar year: 677
(a) Direct premiums written. 678
(b) Direct premiums earned. 679
(c) Loss reserves for all known claims: 680
1. At beginning of the year. 681
2. At end of the year. 682
(d) Reserves for losses incurred but not reported: 683
1. At beginning of the year. 684
2. At end of the year. 685
(e) Allocated loss adjustment expense: 686
1. Reserve at beginning of the year. 687
2. Reserve at end of the year. 688
3. Paid during the year. 689
(f) Unallocated loss adjustment expense: 690
1. Reserve at beginning of the year. 691
2. Reserve at end of the year. 692
3. Paid during the year. 693
(g) Direct losses paid. 694
(h) Underwriting income or loss. 695
(i) Commissions and brokerage fees. 696
(j) Taxes, licenses, and fees. 697
(k) Other acquisition costs. 698
(l) General expenses. 699
(m) Policyholder dividends. 700

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(n) Net investment gain or loss and other income gain or 701
loss allocated pro rata by earned premium to Florida business 702
utilizing the investment allocation formula contained in the 703
National Association of Insurance Commissioner's Profitability 704
Report by line by state. 705
(5) Any insurer or insurer group which does not write at 706
least 0.5 percent of the Florida market based on premiums 707
written shall not have to file any report required by subsection 708
(2) other than a report indicating its percentage of the market 709
share. That percentage shall be calculated by dividing the 710
current premiums written by the preceding year's total premiums 711
written in the state for that line of insurance. 712
Section 14. Section 628.8011, Florida Statutes, is created 713
to read: 714
628.8011 Group capital calculation reports.— 715
(1) As used in this section, the term: 716
(a) "Group capital calculation instructions" means the 717
group capital calculation instructions adopted by the NAIC, as 718
amended from time to time, in accordance with the procedures 719
adopted by the NAIC if the methodology remains substantially 720
consistent. 721
(b) "Groupwide supervisor" means the regulatory official 722
authorized to engage in conducting and coordinating groupwide 723
supervision activities who is determined or acknowledged by the 724
commissioner to have sufficient contacts with an internationally 725

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active insurance group. As used in this paragraph, the term 726
"internationally active insurance group" means an insurance 727
holding company system that includes an insurer registered under 728
s. 628.801(1) and that meets all of the following criteria: 729
1. An insurer within the insurance holding company system 730
writes premiums in at least three countries. 731
2. The percentage of gross premiums written outside of the 732
United States is at least 10 percent of the insurance holding 733
company system's total gross written premiums. 734
3. Based on a 3-year rolling average, the total assets of 735
the insurance holding company system are at least $50 billion or 736
the total gross written premiums of the insurance holding 737
company system are at least $10 billion. 738
(2) Except as provided in paragraph (a), the ultimate 739
controlling person of every insurer subject to registration 740
under s. 628.801 must concurrently file with the registration an 741
annual group capital calculation report on or before April 1. 742
The report must be completed in accordance with the group 743
capital calculation instructions, which permit the office to 744
allow a controlling person who is not the ultimate controlling 745
person to file the group capital calculation report. The report 746
must be filed with the lead state regulator of the insurance 747
holding company system as determined by the office in accordance 748
with the procedures within the Financial Analysis Handbook 749
adopted by the NAIC. 750

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(a) The following insurance holding company systems are 751
exempt from filing a group capital calculation report: 752
1. An insurance holding company system that has only one 753
insurer within its holding company structure, is licensed and 754
writing business only in its domestic state, and does not assume 755
business from any other insurer. 756
2. An insurance holding company system that is required to 757
perform a group capital calculation specified by the United 758
States Federal Reserve Board. The office shall request the 759
calculation from the Federal Reserve Board under the terms of 760
information sharing agreements in effect. If the Federal Reserve 761
Board cannot share the calculation with the office, the 762
exemption under this paragraph does not apply to the insurance 763
holding company system. 764
3. An insurance holding company system in which a non-765
United States groupwide supervisor is located within a 766
reciprocal jurisdiction as described in s. 624.610(4)(a) which 767
recognizes the United States state regulatory approach to group 768
supervision and group capital. 769
4. An insurance holding company system that meets the 770
following criteria: 771
a. It provides information to the lead state that meets 772
the requirements for accreditation under the NAIC financial 773
standards and accreditation program, either directly or 774
indirectly, through the groupwide supervisor who has determined 775

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such information is satisfactory to allow the lead state to 776
comply with the NAIC group supervision approach, as detailed in 777
the Financial Analysis Handbook adopted by the NAIC. 778
b. A non-United States groupwide supervisor of the 779
insurance holding company system who is not in a reciprocal 780
jurisdiction recognizes and accepts, as specified by the office 781
in regulation, the group capital calculation as the worldwide 782
group capital assessment for United States insurance groups that 783
operate in such jurisdiction. 784
(b) Notwithstanding subparagraphs (a)3. and (a)4., the 785
office shall require the group capital calculation report for 786
United States operations of any non-United States-based 787
insurance holding company system in which, after any necessary 788
consultation with other supervisors or officials, it is deemed 789
appropriate by the office for prudential oversight and solvency 790
monitoring purposes or for ensuring the competitiveness of the 791
insurance marketplace. 792
(c) Notwithstanding the exemptions provided in 793
subparagraphs (a)1.-4., the office may exempt the ultimate 794
controlling person from filing the annual group capital 795
calculation report or may accept a group capital filing or 796
report in accordance with criteria as specified in paragraphs 797
(e) and (f). 798
(d) If the office determines that an insurance holding 799
company system no longer meets one or more of the requirements 800

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for an exemption from filing the group capital calculation 801
report under subsection (a), the ultimate controlling person 802
must file the group capital calculation report at the next 803
annual filing date unless the office provides an extension based 804
on reasonable grounds shown. 805
(e) If an insurance holding company system has previously 806
filed the annual group capital calculation report at least once, 807
the office may exempt the ultimate controlling person from 808
filing the annual group capital calculation report if the office 809
determines based upon the previous filing that the insurance 810
holding company system meets all of the following criteria: 811
1. It has annual direct and unaffiliated assumed premium, 812
including international direct and assumed premium, of less than 813
$1 billion. For purposes of this subparagraph, premiums 814
reinsured with the Federal Crop Insurance Corporation and 815
Federal Flood Program are excluded from the annual direct and 816
unaffiliated assumed premium. 817
2. It does not have insurers within its holding company 818
structure which are domiciled outside of the United States or 819
one of its territories. 820
3. It does not have a banking, depository or other 821
financial entity that is subject to an identified regulatory 822
capital framework within its holding company structure. 823
4. It attests that there are no material changes in the 824
transactions between insurers and noninsurers in the group which 825

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have occurred since the last filing of the annual group capital 826
calculation report. 827
5. The noninsurers within the insurance holding company 828
system do not pose a material financial risk to the insurer's 829
ability to honor policyholder obligations. 830
(f) If an insurance holding company system has previously 831
filed the annual group capital calculation report at least once, 832
the office may accept a limited group capital filing in lieu of 833
the annual group capital calculation report if: 834
1. The insurance holding company system has annual direct 835
written and unaffiliated assumed premium, including 836
international direct and assumed premium, of less than $1 837
billion. For purposes of this subparagraph, premiums reinsured 838
with the Federal Crop Insurance Corporation and Federal Flood 839
Program are excluded. 840
2. The insurance holding company system does not have 841
insurers within its holding company structure who are domiciled 842
outside of the United States or one of its territories. 843
3. The insurance holding company system does not include a 844
banking, depository, or other financial entity that is subject 845
to an identified regulatory capital framework. 846
4. The insurance holding company system attests that there 847
are no material changes in transactions between insurers and 848
noninsurers in the group which have occurred since the last 849
filing of the report to the office and the noninsurers within 850

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the holding company system do not pose a material financial risk 851
to the insurer's ability to honor policyholder obligations. 852
(g) If an insurance holding company system that has 853
previously had an exemption with respect to the group capital 854
calculation report under paragraph (e) or paragraph (f), the 855
office may require at any time the ultimate controlling person 856
to file an annual group capital calculation report, completed in 857
accordance with the group capital calculation instructions, if 858
any of the following criteria are met: 859
1. An insurer within the insurance holding company system 860
is in a risk-based capital action level event as set forth in s. 861
624.4085 or a similar standard for a non-United States insurer. 862
2. An insurer within the insurance holding company system 863
meets one or more of the standards of an insurer deemed to be in 864
a hazardous financial condition as provided in s. 624.805. 865
3. An insurer within the insurance holding company system 866
otherwise exhibits qualities of a troubled insurer as determined 867
by the office based on unique circumstances including, but not 868
limited to, the type and volume of business written, ownership 869
and organizational structure, federal agency requests, and 870
international supervisor requests. 871
(h) The office shall establish by rule criteria for 872
satisfying when a non-United States jurisdiction is considered 873
to "recognize and accept" the group capital calculation report. 874
(i) The office must publish on its website a list of non-875

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United States jurisdictions that "recognize and accept" the 876
group capital calculation report. 877
(j) The commission may adopt rules for filing the annual 878
group capital calculation report in accordance with the 879
Insurance Holding Company System Regulatory Act of the NAIC and 880
the Insurance Holding Company System Model Regulation of the 881
NAIC, as adopted in December 2020. 882
Section 15. Section 628.8012, Florida Statutes, is created 883
to read: 884
628.8012 Liquidity Stress Test Framework.— 885
(1) As used in this section, the term: 886
(a) "Liquidity Stress Test Framework" means the NAIC 887
Liquidity Stress Test Framework for Life Insurers Meeting the 888
Scope Criteria, the scope criteria applicable for a specific 889
data year, and the liquidity stress test instructions and 890
reporting templates for a specific data year. The term includes 891
amended versions of these documents if the methodology remains 892
substantially consistent. 893
(b) "Scope criteria" means the designated exposure bases 894
along with minimum magnitudes thereof for the specified data 895
year used to establish a preliminary list of insurers considered 896
scoped into the Liquidity Stress Test Framework, and as amended 897
if the methodology remains substantially consistent, for that 898
data year. 899
(c) "Scoped" means meeting at least one threshold of the 900

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scope criteria and being subject to the requirements of the 901
Liquidity Stress Test Framework. 902
(2)(a) The ultimate controlling person of every insurer 903
subject to registration and also scoped into the Liquidity 904
Stress Test Framework shall annually file the results of a 905
specific year's liquidity stress test on or before April 1. The 906
results must be filed with the office as the lead state 907
regulator of the insurance holding company system as determined 908
by the procedures within the Financial Analysis Handbook adopted 909
by the NAIC. 910
(b) Scoped insurers are exempt from the requirement under 911
paragraph (a) if the office, in consultation with the NAIC 912
Financial Stability Task Force or its successor, determines the 913
insurer should not be scoped into the Liquidity Stress Test 914
Framework for that data year. 915
(c) The performance of, and filing of the results from, a 916
specific year's liquidity stress test must comply with the 917
Liquidity Stress Test Framework's instructions and reporting 918
templates for that year and any office determinations, in 919
conjunction with the NAIC Financial Stability Task Force or its 920
successor, provided within the Liquidity Stress Test Framework. 921
(d) The office may adopt rules for filing the results of 922
the liquidity stress test in accordance with the Insurance 923
Holding Company System Regulatory Act of the NAIC and the 924
Insurance Holding Company System Model Regulation of the NAIC, 925

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as adopted in December 2020. 926
Section 16. Section 628.8013, Florida Statutes, is created 927
to read: 928
628.8013 Rebuttal of materially false statements.— 929
(1) The group capital calculation report and resulting 930
group capital ratio and the liquidity stress test, as provided 931
in s. 628.8012, along with its results and supporting 932
disclosures required under this section are regulatory tools for 933
assessing group risks and capital adequacy and group liquidity 934
risks, respectively, and are not intended as a means to rank 935
insurers or insurance holding company systems generally. 936
(2) Any representation or statement by any insurer, 937
broker, or other person engaged in any manner in the business of 938
insurance is prohibited with regard to an insurer's or insurer's 939
group's: 940
(a) Group capital calculation report. 941
(b) Group capital ratio. 942
(c) Liquidity stress test results. 943
(d) Supporting disclosures for the liquidity stress test. 944
(e) Any component derived in the group capital 945
calculation. 946
(3) If a representation or statement prohibited under 947
subsection (2) is published in a written publication and if the 948
insurer can demonstrate to the office with substantial proof the 949
falsity or inappropriateness, as the case may be, of such 950

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representation or statement, the insurer may publish 951
announcements in a written publication if the sole purpose of 952
the announcement is to rebut the materially false representation 953
or statement. 954
Section 17. Section 629.53, Florida Statutes, is created 955
to read: 956
629.53 Application for registration to operate as an 957
attorney in fact.— 958
(1) It is unlawful for any person to operate as an 959
attorney in fact of a reciprocal insurer without first having 960
obtained a registration from the office. 961
(2) The application for an attorney in fact registration 962
must be made, under oath, to the office by the applicant on a 963
form prescribed by the commission. The office may not require an 964
applicant to pay a fee for the registration or for filing an 965
application for such registration. 966
(3) In the application, the applicant must provide all of 967
the following information: 968
(a) All basic organizational documents, and any amendments 969
to such documents, of the applicant dated within the last year 970
and appropriately certified. 971
(b) The bylaws, rules, and regulations or similar 972
documents regulating the conduct of the internal affairs of the 973
applicant, other applicable documents, and all amendments to 974
those documents, dated within the last year and appropriately 975

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certified. 976
(c) A copy of the most recent financial statement of the 977
applicant, verified under oath by at least two of the 978
applicant's principal officers. 979
(d) A detailed plan of operation. 980
(e) An e-mail address at which the applicant agrees to 981
accept electronic service from the office. 982
(f) The background information specified in s. 629.227 for 983
each individual who is responsible for the conduct of the 984
applicant's affairs, including, but not limited to, any manager, 985
member, member of a board of directors, board of trustees, 986
executive committee, or other governing board or committee and 987
any other person or entity owning or having the right to acquire 988
10 percent or more of the voting securities or ownership 989
interest of the applicant. 990
(g) Any other information as the office reasonably 991
requires. 992
(4) Upon the filing of a sworn application, the office 993
must investigate each applicant and may issue the applicant a 994
registration if the office finds that the applicant: 995
(a) Is competent and trustworthy and intends to act in 996
good faith in the business authorized by the registration for 997
which the applicant applied. 998
(b) Has management that has a good business reputation and 999
has had experience, training, or education that qualifies the 1000

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applicant to conduct the business authorized by the registration 1001
for which the applicant applied. 1002
(c) Has a business plan that is consistent with the 1003
interests of potential insureds and the public. 1004
Section 18. Section 629.54, Florida Statutes, is created 1005
to read: 1006
629.54 Registration expiration; renewal.—Each registration 1007
for an attorney in fact issued under this chapter automatically 1008
renews on March 1 of each year, provided the attorney in fact 1009
remains qualified under this chapter. The office may not require 1010
an attorney in fact to pay a fee for the renewal of the 1011
registration. 1012
Section 19. Section 629.55, Florida Statutes, is created 1013
to read: 1014
629.55 Grounds for denial, suspension, or revocation of 1015
registration.—The office may deny, suspend, revoke, or refuse to 1016
renew the registration of an attorney in fact if the office 1017
determines that the attorney in fact: 1018
(1) Has violated any lawful rule or order of the 1019
commission or office or any applicable provision of the 1020
insurance code. 1021
(2) Has used or is using methods or practices in the 1022
conduct of its business which render its further transaction of 1023
business in this state hazardous or injurious to insured persons 1024
or the public. 1025

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(3) Has refused to be examined or to produce its accounts, 1026
records, and files for examination, or if any of its officers, 1027
or persons in similar positions, have refused to give 1028
information with respect to its affairs or has refused to 1029
perform any other legal obligation as to such examination when 1030
required by the office. 1031
(4) Is or was affiliated with and under the same general 1032
management or interlocking directorate or ownership as another 1033
attorney in fact who transacts business in this state without 1034
having a registration required by this chapter. 1035
(5) At any time fails to meet any qualification for which 1036
issuance of the registration could have been refused had such 1037
failure then existed and been known to the office. 1038
(6) Is under suspension or revocation in this or any other 1039
state for any license relating to the business of insurance 1040
which the attorney in fact holds. 1041
(7) A proceeding for receivership, conservatorship, 1042
rehabilitation, or other delinquency proceeding regarding the 1043
attorney in fact, or an insurer with which the attorney in fact 1044
has a contractual relationship, has been commenced in any state. 1045
(8) The financial condition or business practices of the 1046
attorney in fact otherwise pose an imminent threat to the 1047
health, safety, or welfare of the residents of this state. 1048
Section 20. Section 629.56, Florida Statutes, is created 1049
to read: 1050

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629.56 Order of suspension or revocation of registration; 1051
notice.— 1052
(1) The suspension or revocation of a registration of an 1053
attorney in fact is effected by order of the office when such 1054
order is mailed to the attorney in fact by registered or 1055
certified mail and sent electronically to the e-mail address 1056
maintained by the attorney in fact with the office for such 1057
purpose. 1058
(2) The office may publish notice of any such revocation 1059
or suspension in one or more newspapers of general circulation 1060
published in this state. 1061
Section 21. Section 629.57, Florida Statutes, is created 1062
to read: 1063
629.57 Period of suspension; obligations during 1064
suspension; reinstatement.— 1065
(1) The registration of an attorney in fact is suspended 1066
for the time period provided in the order of suspension, which 1067
may not exceed 1 year, unless such suspension or the order upon 1068
which the suspension is based is modified, rescinded, or 1069
reversed. 1070
(2) Upon expiration of the suspension period, the 1071
registration is automatically reinstated as long as the 1072
registration has not otherwise terminated, unless the reasons 1073
for the suspension have not been remedied. 1074
Section 22. Section 629.58, Florida Statutes, is created 1075

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to read: 1076
629.58 Administrative fine in lieu of suspension, 1077
revocation, or nonrenewal.— 1078
(1) If the office finds that one or more grounds exist for 1079
the suspension, revocation, or nonrenewal of the registration of 1080
an attorney in fact issued under this chapter, the office may, 1081
in lieu of suspension or revocation, impose a fine upon the 1082
attorney in fact. 1083
(2) With respect to any nonwillful violation, the office 1084
may impose a fine upon the attorney in fact in an amount up to 1085
$5,000 for each violation. However, a fine may not exceed an 1086
aggregate amount of $50,000 for all nonwillful violations 1087
arising out of the same action. 1088
(3) With respect to any knowing and willful violation, the 1089
office may impose a fine upon the attorney in fact in an amount 1090
up to $25,000 for each violation. However, a fine may not exceed 1091
an aggregate amount of $250,000 for all knowing and willful 1092
violations arising out of the same action. 1093
(4) With respect to a knowing and willful violation of a 1094
lawful order or rule of the office or commission or of a 1095
provision of this code during a period in which the Governor 1096
declared a state of emergency pursuant to s. 252.36, the office 1097
may impose a $200,000 fine upon an attorney in fact for each 1098
violation, up to an aggregate amount of $1 million for all 1099
knowing and willful violations arising out of the same action 1100

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relating to a covered loss or claim caused by the emergency. 1101
(5) A fine imposed by the office on the attorney in fact 1102
may not be borne by the insurer. 1103
Section 23. Subsection (1) of section 634.141, Florida 1104
Statutes, is amended to read: 1105
634.141 Examination of companies.— 1106
(1) Motor vehicle service agreement companies licensed 1107
under this part may be subject to periodic examination by the 1108
office in the same manner and subject to the same terms and 1109
conditions as apply to insurers under part II of chapter 624. 1110
The office is not required to conduct periodic examinations 1111
pursuant to this section, but may examine a service agreement 1112
company at its discretion. An examination conducted pursuant to 1113
this section may cover a period of only the most recent 5 years. 1114
The costs of examinations conducted pursuant to ss. 1115
624.316(2)(e) and 624.3161(4) ss. 624.316(2)(e) and 624.3161(3) 1116
may not exceed 10 percent of the companies' reported net income 1117
for the prior year. The commission may by rule establish 1118
provisions whereby a company may be exempted from examination. 1119
Section 24. Section 634.314, Florida Statutes, is amended 1120
to read: 1121
634.314 Examination of associations.—Home warranty 1122
associations licensed under this part may be subject to periodic 1123
examinations by the office, in the same manner and subject to 1124
the same terms and conditions as apply to insurers under part II 1125

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of chapter 624 of the insurance code. The office is not required 1126
to conduct periodic examinations pursuant to this section, but 1127
may examine a home warranty company at its discretion. An 1128
examination conducted pursuant to this section may cover a 1129
period of only the most recent 5 years. The costs of 1130
examinations conducted pursuant to ss. 624.316(2)(e) and 1131
624.3161(4) ss. 624.316(2)(e) and 624.3161(3) may not exceed 10 1132
percent of the companies' reported net income for the prior 1133
year. 1134
Section 25. Subsection (1) of section 634.416, Florida 1135
Statutes, is amended to read: 1136
634.416 Examination of associations.— 1137
(1) Service warranty associations licensed under this part 1138
may be subject to periodic examination by the office, in the 1139
same manner and subject to the same terms and conditions that 1140
apply to insurers under part II of chapter 624. The office is 1141
not required to conduct periodic examinations pursuant to this 1142
section, but may examine a service warranty company at its 1143
discretion. An examination conducted pursuant to this section 1144
may cover a period of only the most recent 5 years. The costs of 1145
examinations conducted pursuant to ss. 624.316(2)(e) and 1146
624.3161(4) ss. 624.316(2)(e) and 624.3161(3) may not exceed 10 1147
percent of the companies' reported net income for the prior 1148
year. 1149
Section 26. This act shall take effect July 1, 2026. 1150