SPB 7052 — Insurer Accountability

Summary

Insurer Accountability; Authorizing electronic responses to certain requests from the Division of Consumer Services of the Department of Financial Services concerning consumer complaints; specifying reporting requirements for the Office of Insurance Regulation’s internal auditor in the office’s annual report relating to the enforcement of insurer compliance; specifying requirements for the office to report quarterly to the Legislature relating to the enforcement of insurer compliance; providing that authorized property insurers must, rather than may, be subject to an additional market conduct examination after a hurricane if specified conditions are met, etc.

Bill Text

• S 7052 pb View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill updates various accountability and reporting requirements for insurers in Florida, including changes to response times for consumer complaints, reporting mandates for the Office of Insurance Regulation, and provisions related to examinations of insurers.

• 624.307

  14 → 20

  The response time for insurers to reply to consumer complaints has increased from 14 days to 20 days.

• 624.307

  $5,000 → $2,500

  The maximum administrative penalty for licensed entities for non-compliance with consumer complaint requests has been reduced from $5,000 to $2,500.

• 624.315

  The internal auditor of the office shall detail all actions of the office to enforce insurer compliance during the previous year.

  A new requirement mandates the internal auditor to provide detailed reports on enforcement actions against insurers.

• 624.315

  For each of the following, the report must detail the insurer or other licensee or registrant against whom such action was taken; whether the office found any violation of law or rule by such party, and, if so, detail such violation; and the resolution of such action, including any penalties imposed by the office.

  The reporting requirements for the internal auditor now include more specific details on violations and resolutions related to insurer compliance.

• 624.3152

  Each quarter, the office shall create a report detailing all actions of the office to enforce insurer compliance.

  A new requirement mandates the Office of Insurance Regulation to report quarterly on their enforcement activities related to insurer compliance.

• 624.316

  The office shall create a risk-based selection methodology for scheduling examinations of insurers.

  The Office of Insurance Regulation is required to establish a risk-based methodology for scheduling insurer examinations.

• 624.3161

  may → must

  Authorized property insurers are now required to undergo additional market conduct examinations after a hurricane if certain conditions are met, removing the discretion previously allowed.

• 626.207

  revising a condition for disqualification of an insurance representative applicant or licensee;

  The bill adds a revision to the conditions under which an insurance representative can be disqualified.

• 626.9521

  revising and specifying applicable fines for unfair methods of competition and unfair or deceptive acts or practices;

  The bill specifies and revises the fines applicable for unfair competition methods and deceptive practices in the insurance industry.

• 627.701

  if a roof deductible is applied under a personal lines residential property insurance policy, no other deductible under the policy may be applied to any other loss to the property caused by the same covered peril;

  The bill stipulates that multiple deductibles cannot be applied to different losses caused by the same event under certain residential insurance policies.

• 627.782

  the commission → the office

  The responsibility for reviewing premium rates is shifted from the commission to the office for title insurers.

Action History

1. April 05, 2023

   Submitted as Committee Bill and Reported Favorably by Banking and Insurance; YEAS 8 NAYS 0

2. March 31, 2023

   On Committee agenda-- Banking and Insurance, 04/05/23, 8:30 am, 412 Knott Building

3. March 31, 2023

   Submitted for consideration by Banking and Insurance

Sponsors

• Banking and Insurance · Primary

Subjects