Florida 2022 Regular Session Status: In Committee 2 D cosponsors

HB 951 — Domestic Surplus Lines Insurers

Last action — Died on Second Reading Calendar

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Domestic Surplus Lines Insurers; Authorizes nonadmitted insurers to transact insurance as domestic surplus lines insurers; requires such insurers to maintain minimum surplus amount; requires such insurers to be deemed eligible surplus lines insurers & to be included in list of eligible surplus lines insurers; authorizes such insurers to write only surplus lines insurance & only under specified circumstance; prohibits such insurers from holding certificate of authority to operate as admitted insurers; authorizes such insurers to write surplus lines insurance in any jurisdiction if specified requirements are met; provides such policies are subject to specified taxes but are not subject to certain other taxes.

Bill Text

What changed in the latest version

1244 added · 1214 removed

1244 line(s) added, 1214 removed.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 A bill to be entitled An act relating to domestic surplus lines insurers;
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 A bill to be entitled An act relating to domestic surplus lines insurers;
defining the term "domestic surplus lines insurer";
defining the term "domestic surplus line insurer";
authorizing such insurers to write surplus lines insurance in any jurisdiction;
requiring domestic surplus lines insurers to maintain a minimum surplus amount;
providing that such authorization is not contingent on the existence of a certificate of authority;
requiring such insurers to be deemed eligible surplus lines insurers and to be included in the list of eligible surplus lines insurers;
requiring domestic surplus lines insurers to be deemed eligible surplus lines insurers and to be included in the list of eligible surplus lines insurers;
requiring domestic surplus lines insurers to be considered unauthorized insurers for specified purposes;
requiring such insurers to be considered unauthorized insurers for specified purposes;
requiring domestic surplus lines insurers to be considered nonadmitted insurers for specified purposes;
requiring such insurers to be considered nonadmitted insurers for specified purposes;
authorizing domestic surplus lines insurers to write only surplus lines insurance;
authorizing domestic surplus lines insurers to write only surplus lines insurance under a specified circumstance;
limiting the circumstances under which such insurers may write surplus lines insurance;
prohibiting such insurers from simultaneously holding any certificate of authority to operate as admitted insurers;
providing Page 1of 44 CODING:
authorizing such insurers to write surplus lines insurance in any jurisdiction if specified Page 1of 45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 applicability of specified financial and solvency requirements to domestic surplus lines insurers;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 requirements are met;
providing applicability of specified requirements of the Florida Insurance Code to such insurers;
providing an exemption from a specified law for domestic surplus lines insurers;
providing an exemption from a specified law for such insurers;
providing that such policies are not subject to the protections and requirements of specified acts;
providing that such policies are not subject to the protections and requirements of specified acts and a specified fund;
prohibiting such insurers from issuing certain homeowners' policies under a specified circumstance;
providing nonapplicability;
prohibiting such insurers from issuing certain policies to satisfy specified laws;
(1)(4) "Diligent effort" means seeking coverage from and having been rejected by at least three authorized insurers currently writing this type of coverage and documenting these rejections.
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However, if the residential structure has a dwelling Page 2of 44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 replacement cost of $700,000 or more, the term means seeking coverage from and having been rejected by at least one authorized insurer currently writing this type of coverage and documenting this rejection.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 (1)(4) "Diligent effort" means seeking coverage from and having been rejected by at least three authorized insurers currently writing this type of coverage and documenting these rejections.
(2) "Domestic surplus lines insurer" means a nonadmitted insurer domiciled in this state that has been authorized by the office to write surplus lines insurance.
However, if the residential structure has a dwelling replacement cost of $700,000 or more, the term means seeking coverage from and having been rejected by at least one authorized insurer currently writing this type of coverage and documenting this rejection.
(2) "Domestic surplus lines insurer" means a nonadmitted insurer domiciled in this state that:
(a) Has been deemed eligible and authorized by the office to write surplus lines insurance;
and (b) May write surplus lines insurance in any jurisdiction, including this state.
The authorization to write surplus lines insurance is not contingent on the company's holding of an existing certificate of authority.
The term does not include an authorized insurer as defined in s.
624.09.
(4)(3) "Export" "To export" means to place, in an unauthorized insurer under this Surplus Lines Law, insurance covering a subject of insurance resident, located, or to be performed in this state.
(4)(3) "Export" "To export" means to place, in an Page 3of 45 CODING:
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words underlined are additions.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 unauthorized insurer under this Surplus Lines Law, insurance covering a subject of insurance resident, located, or to be performed in this state.
626.91805 Domestic surplus lines insurers.— (1) As used in this section, the term "nonadmitted Page 3of 44 CODING:
626.91805 Domestic surplus lines insurers.— (1) As used in this section, the term "nonadmitted insurer" has the same meaning as provided in the federal Nonadmitted and Reinsurance Reform Act of 2010.
Words strickenare deletions;
(2) Notwithstanding any other law, a nonadmitted insurer possessing a policyholder surplus of at least $15 million may, under a resolution by its board of directors and with the written approval of the office, be eligible to transact insurance as a domestic surplus lines insurer.
words underlined are additions.
A domestic surplus lines insurer must maintain surplus of at least $15 million at all times.
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 insurer" has the same meaning as provided in the federal Nonadmitted and Reinsurance Reform Act of 2010.
(2) Notwithstanding any other law, a nonadmitted insurer possessing a policyholder surplus of at least $15 million may, under a resolution by its board of directors and with the written approval of the office, be authorized to transact insurance as a domestic surplus lines insurer.
Such insurers are authorized to write surplus lines insurance in any jurisdiction, including this state, and such authorization is not contingent on the company's holding of an existing certificate of authority.
Eligible surplus lines insurers listed in s.
Eligible surplus lines Page 4of 45 CODING:
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words underlined are additions.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 insurers listed in s.
(6) A domestic surplus lines insurer may write only Page 4of 44 CODING:
(6) A domestic surplus lines insurer may write only surplus lines insurance in this state which is procured from a surplus lines agent pursuant to the Surplus Lines Law.
Words strickenare deletions;
Such insurer may not simultaneously hold any certificate of authority authorizing it to operate as an admitted insurer.
words underlined are additions.
(7) A domestic surplus lines insurer may write surplus lines insurance in any jurisdiction if such insurer complies with the requirements of that jurisdiction.
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 surplus lines insurance in this state and only if procured from a surplus lines agent pursuant to the Surplus Lines Law.
(8) All requirements imposed by the Florida Insurance Code on admitted domestic insurers apply to domestic surplus lines insurers unless otherwise exempted in this section.
(7) All financial and solvency requirements imposed by this state's laws on admitted domestic insurers apply to domestic surplus lines insurers unless domestic surplus lines insurers are otherwise specifically exempted.
(9) A domestic surplus lines insurer is exempt from s.
(8) A domestic surplus lines insurer is exempt from s.
(9) A surplus lines insurance policy issued by a domestic surplus lines insurer is exempt from all statutory requirements relating to insurance rating and rating plans;
(10) A surplus lines insurance policy issued by a domestic surplus lines insurer is exempt from all statutory requirements relating to insurance rating and rating plans;
premiums charged to insureds;
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words underlined are additions.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 premiums charged to insureds;
(10) Notwithstanding any other law, a policy issued by a domestic surplus lines insurer is subject to taxes assessed upon surplus lines policies issued by nonadmitted insurers, including surplus lines premium taxes, but is not subject to other taxes levied upon admitted insurers, whether domestic or foreign.
(11) Notwithstanding any other law, a policy issued by a domestic surplus lines insurer is subject to taxes assessed upon surplus lines policies issued by nonadmitted insurers, including surplus lines premium taxes, but is not subject to other taxes levied upon admitted insurers, whether domestic or foreign.
(11) A policy issued by a domestic surplus lines insurer is not subject to the protections or requirements of the Florida Insurance Guaranty Association Act, the Florida Life and Health Insurance Guaranty Association Act, or the Florida Workers' Compensation Insurance Guaranty Association Act.
(12) A policy issued by a domestic surplus lines insurer is not subject to the protections or requirements of the Florida Insurance Guaranty Association Act, the Florida Life and Health Insurance Guaranty Association Act, the Florida Workers' Compensation Insurance Guaranty Association Act, or the Florida Hurricane Catastrophe Fund.
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(13) A domestic surplus lines insurer may not issue a homeowner's policy covering a personal residential property located in this state within 12 months after the effective date of a nonrenewal or cancellation of a previous policy if the nonrenewal or cancellation of the previous policy was initiated by an affiliate of an admitted insurer.
This restriction does not apply to a nonrenewal or cancellation provided at the insured's request.
A domestic surplus lines insurer may not issue a policy designed to satisfy the motor vehicle financial responsibility requirements of this state under chapter 324, the Page 6of 45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 Section 3.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 Workers' Compensation Law under chapter 440, or any other law of this state mandating insurance coverage by an admitted insurer.
Section 3.
(2) Physicians who perform surgery in an ambulatory surgical center licensed under chapter 395 and, as a continuing Page 6of 44 CODING:
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hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 condition of hospital staff privileges, physicians who have staff privileges must also establish financial responsibility by one of the following methods:
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 (2) Physicians who perform surgery in an ambulatory surgical center licensed under chapter 395 and, as a continuing condition of hospital staff privileges, physicians who have staff privileges must also establish financial responsibility by one of the following methods:
The required coverage amount set forth in this paragraph may not be used for litigation costs or attorney's fees for the defense of any medical malpractice claim.
The required coverage amount set forth in this paragraph may not be used for litigation costs or attorney attorney's fees for the defense of any medical malpractice claim.
459.0085 Financial responsibility.— (1) As a condition of licensing and maintaining an active license, and prior to the issuance or renewal of an active Page 7of 44 CODING:
459.0085 Financial responsibility.— Page 8of 45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 license or reactivation of an inactive license for the practice of osteopathic medicine, an applicant must by one of the following methods demonstrate to the satisfaction of the board and the department financial responsibility to pay claims and costs ancillary thereto arising out of the rendering of, or the failure to render, medical care or services:
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 (1) As a condition of licensing and maintaining an active license, and prior to the issuance or renewal of an active license or reactivation of an inactive license for the practice of osteopathic medicine, an applicant must by one of the following methods demonstrate to the satisfaction of the board and the department financial responsibility to pay claims and costs ancillary thereto arising out of the rendering of, or the failure to render, medical care or services:
(b) Obtaining and maintaining professional liability coverage in an amount not less than $250,000 per claim, with a minimum annual aggregate of not less than $750,000 from an Page 8of 44 CODING:
(b) Obtaining and maintaining professional liability Page 9of 45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 authorized insurer as defined under s.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 coverage in an amount not less than $250,000 per claim, with a minimum annual aggregate of not less than $750,000 from an authorized insurer as defined under s.
464.0123 Autonomous practice by an advanced practice registered nurse.— (2) FINANCIAL RESPONSIBILITY.— (a) An advanced practice registered nurse registered under this section must, by one of the following methods, demonstrate to the satisfaction of the board and the department financial responsibility to pay claims and costs ancillary thereto arising out of the rendering of, or the failure to render, nursing care, treatment, or services:
464.0123 Autonomous practice by an advanced practice registered nurse.— (2) FINANCIAL RESPONSIBILITY.— (a) An advanced practice registered nurse registered under this section must, by one of the following methods, demonstrate to the satisfaction of the board and the department financial responsibility to pay claims and costs ancillary thereto arising out of the rendering of, or the failure to render, nursing care, Page 10 of45 CODING:
1.
Obtaining and maintaining professional liability Page 9of 44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 coverage in an amount not less than $100,000 per claim, with a minimum annual aggregate of not less than $300,000, from an authorized insurer as defined in s.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 treatment, or services:
1.
Obtaining and maintaining professional liability coverage in an amount not less than $100,000 per claim, with a minimum annual aggregate of not less than $300,000, from an authorized insurer as defined in s.
626.914 s.
626.914(3) s.
629.401 Insurance exchange.— (6) (b) In addition to the insurance laws specified in paragraph (a), the office shall regulate the exchange pursuant Page 10 of44 CODING:
629.401 Insurance exchange.— (6) Page 11 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 to the following powers, rights, and duties:
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 (b) In addition to the insurance laws specified in paragraph (a), the office shall regulate the exchange pursuant to the following powers, rights, and duties:
d.
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Full disclosure of the terms of all understandings and agreements existing or proposed for management or exclusive Page 11 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 agency contracts.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 d.
Full disclosure of the terms of all understandings and agreements existing or proposed for management or exclusive agency contracts.
As a result of the investigation, the office may require the underwriting member to replace any new directors or principal officers.
As a result of the investigation, the office may require the underwriting member to Page 13 of45 CODING:
5.
Alternate financial statement.—In lieu of any financial Page 12 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 examination, the office may accept an audited financial statement.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 replace any new directors or principal officers.
5.
Alternate financial statement.—In lieu of any financial examination, the office may accept an audited financial statement.
The statement shall contain information generally included in insurer financial statements prepared in accordance with generally accepted insurance accounting principles and practices and in a form generally utilized by insurers for financial statements, sworn to by at least two executive officers of the underwriting member.
The statement shall contain information generally included in insurer financial statements prepared in accordance with generally accepted insurance accounting principles and practices and in a form generally Page 14 of45 CODING:
The Page 13 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 form of the financial statements shall be the approved form of the National Association of Insurance Commissioners or its successor organization.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 utilized by insurers for financial statements, sworn to by at least two executive officers of the underwriting member.
The form of the financial statements shall be the approved form of the National Association of Insurance Commissioners or its successor organization.
626.914, has violated or is violating any provision of the insurance law, or upon receipt of a written complaint signed by any interested person indicating that any such violation may exist, the department shall conduct such examination as it deems necessary of the accounts, records, Page 14 of44 CODING:
626.914, has violated or is violating any provision of the insurance law, or upon receipt of a written complaint signed by any interested person indicating that any Page 15 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 documents, and transactions pertaining to or affecting the insurance affairs of such agent.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 such violation may exist, the department shall conduct such examination as it deems necessary of the accounts, records, documents, and transactions pertaining to or affecting the insurance affairs of such agent.
The office or its examiners may at any time testify and offer other proper evidence as to information secured or matters discovered during the course of an examination, whether or not a written report of the examination has been either made, furnished, or filed in the office.
The office or its examiners may at any time testify and offer other proper evidence as to information secured or matters discovered during the course of an examination, whether or not a Page 16 of45 CODING:
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hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 13.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 written report of the examination has been either made, furnished, or filed in the office.
13.
Powers of examiners.—Any examiner appointed by the office, as to the subject of any examination, investigation, or hearing being conducted by him or her, may administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence, and shall have the power to subpoena witnesses, compel their attendance and testimony, and require by Page 16 of44 CODING:
Powers of examiners.—Any examiner appointed by the office, as to the subject of any examination, investigation, or hearing being conducted by him or her, may administer oaths, examine and cross-examine witnesses, and receive oral and Page 17 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 subpoena the production of books, papers, records, files, correspondence, documents, or other evidence which the examiner deems relevant to the inquiry.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 documentary evidence, and shall have the power to subpoena witnesses, compel their attendance and testimony, and require by subpoena the production of books, papers, records, files, correspondence, documents, or other evidence which the examiner deems relevant to the inquiry.
If any person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being conducted by the office or its examiner, on the ground that the testimony or Page 17 of44 CODING:
If any person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any Page 18 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 evidence required of the person may tend to incriminate him or her or subject him or her to a penalty or forfeiture, and the person notwithstanding is directed to give such testimony or produce such evidence, he or she shall, if so directed by the office and the Department of Legal Affairs, nonetheless comply with such direction;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 examination, hearing, or investigation being conducted by the office or its examiner, on the ground that the testimony or evidence required of the person may tend to incriminate him or her or subject him or her to a penalty or forfeiture, and the person notwithstanding is directed to give such testimony or produce such evidence, he or she shall, if so directed by the office and the Department of Legal Affairs, nonetheless comply with such direction;
Any such individual may execute, acknowledge, and file with the office a statement expressly waiving such immunity or privilege in respect to any transaction, matter, or thing specified in such statement, and thereupon the testimony of such individual or such evidence in relation to such transaction, Page 18 of44 CODING:
Any such individual may execute, acknowledge, and file with the office a statement expressly waiving such immunity or privilege in respect to any transaction, matter, or thing Page 19 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 specified in such statement, and thereupon the testimony of such individual or such evidence in relation to such transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise;
Capitalization.—An underwriting member approved on or after July 2, 1987, shall provide an initial paid-in capital and surplus of $3 million and thereafter shall maintain a minimum Page 19 of44 CODING:
Capitalization.—An underwriting member approved on or Page 20 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 policyholder surplus of $2 million in order to be permitted to write insurance.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 after July 2, 1987, shall provide an initial paid-in capital and surplus of $3 million and thereafter shall maintain a minimum policyholder surplus of $2 million in order to be permitted to write insurance.
Any risk or portion of any risk which shall have been reinsured in an assuming reinsurer authorized or approved to do such business in this Page 20 of44 CODING:
Any risk or portion of Page 21 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 state shall be deducted in determining the limitation of risk prescribed in this section.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 any risk which shall have been reinsured in an assuming reinsurer authorized or approved to do such business in this state shall be deducted in determining the limitation of risk prescribed in this section.
Surplus as to policyholders.—For the purpose of determining the limitation on coverage written, surplus as to policyholders shall be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law and shall be determined from the last sworn statement of such underwriting member with the office, or by the last report or examination filed by the office, whichever is more recent at Page 21 of44 CODING:
Surplus as to policyholders.—For the purpose of determining the limitation on coverage written, surplus as to policyholders shall be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law and shall be determined from the last sworn statement of Page 22 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 the time of assumption of such risk.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 such underwriting member with the office, or by the last report or examination filed by the office, whichever is more recent at the time of assumption of such risk.
In calculating the foregoing reserves, the amount of the attorney's bond, as filed with the office and as required by s.
In calculating the foregoing reserves, Page 23 of45 CODING:
629.121, shall be included in such reserves.
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hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 If at any time the unearned premium reserves are less than the foregoing requirements, the subscribers, or the attorney in fact, shall advance funds to make up the deficiency.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 the amount of the attorney's bond, as filed with the office and as required by s.
629.121, shall be included in such reserves.
If at any time the unearned premium reserves are less than the foregoing requirements, the subscribers, or the attorney in fact, shall advance funds to make up the deficiency.
Stock dividends.—A stock dividend may be paid by an underwriting member out of any available surplus funds in excess of the aggregate amount of surplus advanced to the underwriting Page 23 of44 CODING:
Stock dividends.—A stock dividend may be paid by an Page 24 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 member under subparagraph 29.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 underwriting member out of any available surplus funds in excess of the aggregate amount of surplus advanced to the underwriting member under subparagraph 29.
Money so borrowed, together with any interest thereon if so stipulated in the agreement, shall not form a part of the underwriting member's legal liabilities except as to its surplus in excess of the amount thereof stipulated in the agreement, nor Page 24 of44 CODING:
Money so borrowed, together with any interest thereon if so stipulated in the agreement, shall not form a part of the Page 25 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 be the basis of any setoff;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 underwriting member's legal liabilities except as to its surplus in excess of the amount thereof stipulated in the agreement, nor be the basis of any setoff;
c.
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Conduct detrimental to the welfare of an exchange.
d.
Unethical or improper practices or conduct, Page 25 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 inconsistent with just and equitable principles of trade as set forth in, but not limited to, ss.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 c.
Conduct detrimental to the welfare of an exchange.
d.
Unethical or improper practices or conduct, inconsistent with just and equitable principles of trade as set forth in, but not limited to, ss.
Any member which has an affiliated person who is found to have engaged in prohibited conduct shall be subject to involuntary withdrawal or in addition thereto may be subject to suspension, reprimand, censure, and/or a fine not exceeding Page 26 of44 CODING:
Any member which has an affiliated person who is found to have engaged in prohibited conduct shall be subject to Page 27 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 $25,000.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 involuntary withdrawal or in addition thereto may be subject to suspension, reprimand, censure, and/or a fine not exceeding $25,000.
Changes in ownership or assets.—In the event of a major change in the ownership or a major change in the assets of an underwriting member, the underwriting member shall report such change in writing to the office within 30 days of the effective date thereof.
Changes in ownership or assets.—In the event of a major change in the ownership or a major change in the assets of an underwriting member, the underwriting member shall report Page 28 of45 CODING:
The report shall set forth the details Page 27 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 of the change.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 such change in writing to the office within 30 days of the effective date thereof.
The report shall set forth the details of the change.
b.
Page 29 of45 CODING:
Any tax, license, or other obligation imposed by any city, county, or other political subdivision or agency of a Page 28 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 state, jurisdiction, or foreign country on an exchange, or on the agents or representatives on an exchange, shall be deemed to be imposed by such state, jurisdiction, or foreign country within the meaning of sub-subparagraph a.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 b.
Any tax, license, or other obligation imposed by any city, county, or other political subdivision or agency of a state, jurisdiction, or foreign country on an exchange, or on the agents or representatives on an exchange, shall be deemed to be imposed by such state, jurisdiction, or foreign country within the meaning of sub-subparagraph a.
Premium payments and other requirements.—If an underwriting member has assumed the risk as to a surplus lines coverage and if the premium therefor has been received by the surplus lines agent who placed such insurance, then in all questions thereafter arising under the coverage as between the underwriting member and the insured, the underwriting member shall be deemed to have received the premium due to it for such Page 29 of44 CODING:
Premium payments and other requirements.—If an underwriting member has assumed the risk as to a surplus lines coverage and if the premium therefor has been received by the surplus lines agent who placed such insurance, then in all questions thereafter arising under the coverage as between the Page 30 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 coverage;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 underwriting member and the insured, the underwriting member shall be deemed to have received the premium due to it for such coverage;
Any insurance contract delivered or issued for delivery in this state governing a subject or subjects of insurance resident, located, or to be performed in this state which, pursuant to the provisions of this section, the underwriting Page 30 of44 CODING:
Any insurance contract delivered or issued for delivery in this state governing a subject or subjects of insurance Page 31 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 member may not lawfully insure under such a contract shall be cancelable at any time by the underwriting member, any provision of the contract to the contrary notwithstanding;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 resident, located, or to be performed in this state which, pursuant to the provisions of this section, the underwriting member may not lawfully insure under such a contract shall be cancelable at any time by the underwriting member, any provision of the contract to the contrary notwithstanding;
If the judgment or decree is not satisfied as required under sub-subparagraph a., and proof of such failure to satisfy is made by filing with the office a certified transcript of the docket of the judgment or the decree together with a certificate by the clerk of the court wherein the judgment or decree remains unsatisfied, in whole or in part, after the time provided in Page 31 of44 CODING:
If the judgment or decree is not satisfied as required under sub-subparagraph a., and proof of such failure to satisfy is made by filing with the office a certified transcript of the docket of the judgment or the decree together with a certificate Page 32 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 sub-subparagraph a., the office shall forthwith prohibit the underwriting member from transacting business.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 by the clerk of the court wherein the judgment or decree remains unsatisfied, in whole or in part, after the time provided in sub-subparagraph a., the office shall forthwith prohibit the underwriting member from transacting business.
and, if the acquisition is to be made by or on behalf of a corporation, association, or trust, the identity of and background information on each director, officer, trustee, or other natural person performing duties similar to those of a director, officer, or trustee for the corporation, association, or trust.
and, if the acquisition is to be made by or on behalf of a corporation, association, or trust, the identity of and background information on each director, officer, trustee, or other natural person performing duties similar to those of a Page 33 of45 CODING:
Page 32 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 b.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 director, officer, or trustee for the corporation, association, or trust.
b.
(II) In violation of an order of the office issued pursuant to sub-subparagraph j., fails to divest himself or herself of any stock obtained in violation of this subparagraph, or fails to divest himself or herself of any direct or indirect control of such stock, within 25 days after such order;
(II) In violation of an order of the office issued pursuant to sub-subparagraph j., fails to divest himself or herself of any stock obtained in violation of this subparagraph, Page 34 of45 CODING:
or Page 33 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 (III) In violation of an order issued by the office pursuant to sub-subparagraph j., acquires additional stock of the underwriting member or controlling company, or direct or indirect control of such stock, without complying with this subparagraph.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 or fails to divest himself or herself of any direct or indirect control of such stock, within 25 days after such order;
or (III) In violation of an order issued by the office pursuant to sub-subparagraph j., acquires additional stock of the underwriting member or controlling company, or direct or indirect control of such stock, without complying with this subparagraph.
or (B) To liquidate any controlling company, sell its assets, or merge or consolidate it with any person, or to make any major Page 34 of44 CODING:
or Page 35 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 change in its business or corporate structure or management which would have an effect upon the underwriting member is fair and free of prejudice to the policyholders of the underwriting member or to the public;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 (B) To liquidate any controlling company, sell its assets, or merge or consolidate it with any person, or to make any major change in its business or corporate structure or management which would have an effect upon the underwriting member is fair and free of prejudice to the policyholders of the underwriting member or to the public;
(VII) The management of the underwriting member after the acquisition will be competent and trustworthy and will possess sufficient managerial experience so as to make the proposed operation of the underwriting member not hazardous to the insurance-buying public;
(VII) The management of the underwriting member after the acquisition will be competent and trustworthy and will possess sufficient managerial experience so as to make the proposed operation of the underwriting member not hazardous to the Page 36 of45 CODING:
(VIII) The management of the underwriting member after the Page 35 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 acquisition will not include any person who has directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations unlawfully manipulated the assets, accounts, finances, or books of any insurer or underwriting member or otherwise acted in bad faith with respect thereto;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 insurance-buying public;
(VIII) The management of the underwriting member after the acquisition will not include any person who has directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations unlawfully manipulated the assets, accounts, finances, or books of any insurer or underwriting member or otherwise acted in bad faith with respect thereto;
There shall be a private right of action in favor of the underwriting member or controlling company to enforce the provisions of this subparagraph.
There shall be a private right of action in favor of the underwriting member or controlling Page 37 of45 CODING:
No demand upon the office that it perform its functions shall be Page 36 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 required as a prerequisite to any suit by the underwriting member or controlling company against any other person, and in no case shall the office be deemed a necessary party to any action by such underwriting member or controlling company to enforce the provisions of this subparagraph.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 company to enforce the provisions of this subparagraph.
No demand upon the office that it perform its functions shall be required as a prerequisite to any suit by the underwriting member or controlling company against any other person, and in no case shall the office be deemed a necessary party to any action by such underwriting member or controlling company to enforce the provisions of this subparagraph.
Upon notification to the office by the underwriting member or a controlling company that any person or any affiliated person of such person has acquired 5 percent or more of the outstanding voting securities of the underwriting member Page 37 of44 CODING:
Upon notification to the office by the underwriting member or a controlling company that any person or any Page 38 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 or controlling company without complying with the provisions of this subparagraph, the office shall order that the person and any affiliated person of such person cease acquisition of any further securities of the underwriting member or controlling company;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 affiliated person of such person has acquired 5 percent or more of the outstanding voting securities of the underwriting member or controlling company without complying with the provisions of this subparagraph, the office shall order that the person and any affiliated person of such person cease acquisition of any further securities of the underwriting member or controlling company;
(B) That is controlled, directly or indirectly, by any person or any affiliated person of such person who, in violation Page 38 of44 CODING:
Page 39 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 of this subparagraph, has obtained control of an underwriting member or controlling company;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 (B) That is controlled, directly or indirectly, by any person or any affiliated person of such person who, in violation of this subparagraph, has obtained control of an underwriting member or controlling company;
(D) Any person 5 percent or more of the outstanding voting securities of which are directly or indirectly owned or controlled, or held with power to vote, by such other person;
(D) Any person 5 percent or more of the outstanding voting Page 40 of45 CODING:
Page 39 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 (E) Any person or group of persons who directly or indirectly control, are controlled by, or are under common control with such other person;
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 securities of which are directly or indirectly owned or controlled, or held with power to vote, by such other person;
(E) Any person or group of persons who directly or indirectly control, are controlled by, or are under common control with such other person;
Background information.—The information as to the background and identity of each person about whom information is required to be furnished pursuant to sub-subparagraph 43.a.
Background information.—The information as to the background and identity of each person about whom information is Page 41 of45 CODING:
shall include, but shall not be limited to:
Page 40 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 a.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 required to be furnished pursuant to sub-subparagraph 43.a.
shall include, but shall not be limited to:
a.
Whether, during such 10-year period, such person has been enjoined, either temporarily or permanently, by a court of competent jurisdiction from violating any federal or state law regulating the business of insurance, securities, or banking, or Page 41 of44 CODING:
Whether, during such 10-year period, such person has been enjoined, either temporarily or permanently, by a court of Page 42 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 from carrying out any particular practice or practices in the course of the business of insurance, securities, or banking, together with details of any such event.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 competent jurisdiction from violating any federal or state law regulating the business of insurance, securities, or banking, or from carrying out any particular practice or practices in the course of the business of insurance, securities, or banking, together with details of any such event.
After December 31, 1987, the aggregate percent of the total investment in such member by any broker, agent, or intermediary and the aggregate percent of the total investment in any such broker, agent, or intermediary by any member, directly or indirectly, shall not exceed 15 percent.
After December 31, 1987, the aggregate percent of the total investment in such member by any broker, agent, or intermediary and the aggregate percent of the total investment in any such broker, agent, or intermediary by any member, directly or indirectly, Page 43 of45 CODING:
After June 30, 1988, such aggregate percent shall not exceed 10 percent and after December 31, 1988, Page 42 of44 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 such aggregate percent shall not exceed 5 percent.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 shall not exceed 15 percent.
After June 30, 1988, such aggregate percent shall not exceed 10 percent and after December 31, 1988, such aggregate percent shall not exceed 5 percent.
Prohibition of underwriting manager investment.—Any direct or indirect investment in any underwriting manager by a broker member or any affiliated person of a broker member or any direct or indirect investment in a broker member by an underwriting manager or any affiliated person of an underwriting Page 43 of44 CODING:
Prohibition of underwriting manager investment.—Any direct or indirect investment in any underwriting manager by a broker member or any affiliated person of a broker member or any Page 44 of45 CODING:
hb0951-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB951 2022 manager is prohibited.
hb0951-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB951 2022 direct or indirect investment in a broker member by an underwriting manager or any affiliated person of an underwriting manager is prohibited.
Page 44 of44 CODING:
Page 45 of45 CODING:
hb0951-00
hb0951-01-c1
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Action History

  1. Died on Second Reading Calendar

  2. Indefinitely postponed and withdrawn from consideration

  3. Added to Second Reading Calendar

  4. 1st Reading (Committee Substitute 1)

  5. Bill referred to House Calendar

  6. CS Filed

  7. Laid on Table under Rule 7.18(a)

  8. Reported out of Commerce Committee

  9. Favorable with CS by Commerce Committee

  10. Added to Commerce Committee agenda

  11. Now in Commerce Committee

  12. Reported out of Ways & Means Committee

  13. Favorable by Ways & Means Committee

  14. Added to Ways & Means Committee agenda

  15. Now in Ways & Means Committee

  16. Reported out of Insurance & Banking Subcommittee

  17. Favorable by Insurance & Banking Subcommittee

  18. Added to Insurance & Banking Subcommittee agenda

  19. 1st Reading (Original Filed Version)

  20. Now in Insurance & Banking Subcommittee

  21. Referred to Commerce Committee

  22. Referred to Ways & Means Committee

  23. Referred to Insurance & Banking Subcommittee

  24. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 1 co-sponsors · 157 not signed on · 1 voted No

Sponsors (2)

Co-sponsors (1)

Not signed on (157)

157 members have not signed on to this bill.

Show all 157 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Favorable With Committee Substitute (Commerce Committee)

Passed 18 Yea · 4 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 8001
Unaffiliated 8401
Democrat 2000
Total 18402
% of votes cast 75%17%0%8%
How each member voted (24)
Member Party Vote
Clemons — Yea
Drake — Yea
Geller — Nay
Grieco — Nay
Hage — Yea
Ingoglia — Yea
Latvala — Not Voting
Omphroy — Yea
Rommel — Yea
Silvers — Yea
Tomkow — Yea
Willhite — Nay
Thompson, Geraldine F. "Geri" — Nay
Daley, Dan Democrat Yea
Nixon, Angela "Angie" Democrat Yea
Barnaby, Webster Republican Yea
DiCeglie, Nick Republican Yea
Fabricio, Tom Republican Yea
Maggard, Randall Scott "Randy" Republican Yea
McClure, Lawrence Republican Yea
McFarland, Fiona Republican Yea
Plakon, Rachel Saunders Republican Yea
Plasencia, Susan Republican Yea
Shoaf, Jason Republican Not Voting

Official roll call →

Favorable (Ways & Means Committee)

Passed 17 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 10001
Republican 5000
Democrat 2000
Total 17001
% of votes cast 94%0%0%6%
How each member voted (18)
Member Party Vote
Altman — Yea
Caruso — Yea
Casello — Not Voting
Clemons — Yea
Grieco — Yea
Killebrew — Yea
Payne — Yea
Sabatini — Yea
Silvers — Yea
Slosberg-King — Yea
Zika — Yea
Eskamani, Dr. Anna V. Democrat Yea
Hart-Lowman, Dianne "Ms Dee" Democrat Yea
DiCeglie, Nick Republican Yea
Maggard, Randall Scott "Randy" Republican Yea
McClain, Stan Republican Yea
Shoaf, Jason Republican Yea
Sirois, Tyler I. Republican Yea

Official roll call →

Favorable (Insurance & Banking Subcommittee)

Passed 15 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 6002
Unaffiliated 5001
Democrat 4000
Total 15003
% of votes cast 83%0%0%17%
How each member voted (18)
Member Party Vote
Brown — Yea
Fetterhoff — Yea
Hage — Not Voting
Toledo — Yea
Willhite — Yea
Zika — Yea
Driskell, Fentrice Democrat Yea
Hunschofsky, Christine Democrat Yea
Rayner, Michele K. Democrat Yea
Tant, Allison Democrat Yea
Barnaby, Webster Republican Not Voting
DiCeglie, Nick Republican Yea
Fabricio, Tom Republican Yea
Giallombardo, Mike Republican Yea
Koster, Traci Republican Yea
Maggard, Randall Scott "Randy" Republican Yea
Smith, David Republican Yea
Snyder, John Republican Not Voting

Official roll call →

Subjects

finance
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Frequently asked questions

What does HB 951 do?
Domestic Surplus Lines Insurers; Authorizes nonadmitted insurers to transact insurance as domestic surplus lines insurers; requires such insurers to maintain minimum surplus amount; requires such insurers to be deemed eligible surplus lines insurers & to be included in list of eligible surplus lines insurers; authorizes such insurers to write only surplus lines insurance & only under specified circumstance; prohibits such insurers from holding certificate of authority to operate as admitted insurers; authorizes such insurers to write surplus lines insurance in any jurisdiction if specified requirements are met; provides such policies are subject to specified taxes but are not subject to certain other taxes.
Who sponsors HB 951?
HB 951 is sponsored by Commerce Committee, Driskell, Fentrice (Democrat), and Gregory, Emily (Democrat).
What is the current status of HB 951?
This bill died with 2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 951?
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