SB 1622 — Insurance

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 that specified plans be filed with the office and that such plans contain certain information;

providing an effective dates.date.

440.02, or other organization of insurers which engages in joint Pageunderwriting 6or joint reinsurance, the attorney in fact of 45each CODING:reciprocal insurer, and each authorized insurer transacting in this state any class of insurance to which the provisions of chapter 627 are applicable.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 underwriting or joint reinsurance, the attorney in fact of each reciprocal insurer, and each authorized insurer transacting in this state any class of insurance to which the provisions of chapter 627 are applicable.

Paragraph (a) of subsection (10) of section 624.424,Page Florida6 Statutes,of is43 amendedCODING: to read:

624.424Words Annualstricken statementare anddeletions; other information.— (10)(a) By January 1, 2025, and each month thereafter, each insurer or insurer group doing business in this state shall file on a monthly quarterly basis in conjunction with financial reports required by paragraph (1)(a) a supplemental report on an individual and group basis on a form prescribed by the commission with information on personal lines and commercial lines residential property insurance policies in this state.

Thewords supplementalunderlined reportare mustadditions. shall include separate information for personal lines property policies and for commercial lines property policies and totals for each item specified, including premiums written for each of the property lines of business as described in ss.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 624.424, Florida Statutes, is amended to read:

624.424 Annual statement and other information.— (10)(a) Each insurer or insurer group doing business in this state shall file on a monthly quarterly basis in conjunction with financial reports required by paragraph (1)(a) a supplemental report on an individual and group basis on a form prescribed by the commission with information on personal lines and commercial lines residential property insurance policies in this state.

The supplemental report shall include separate information for personal lines property policies and for commercial lines property policies and totals for each item specified, including premiums written for each of the property lines of business as described in ss.

The report must shall include the following information for each zip code county on a monthly basis:

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 5.

Number of claims in which either the insurer or insured invokedPage any7 form of alternative43 disputeCODING: resolution, and specifying which form of alternative dispute resolution was used.

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 invoked any form of alternative dispute resolution, and specifying which form of alternative dispute resolution was used.

EffectiveParagraph upon becoming a law, paragraph (d) of subsection (1) of section 624.46226, Florida Statutes, is amended to read:

Pageexemption 8for taxation and assessments.— (1) Notwithstanding any other provision of 45law, CODING:any two or more public housing authorities in the state as defined in chapter 421 may form a self-insurance fund for the purpose of pooling and spreading liabilities of its members as to any one or combination of casualty risk or real or personal property risk of every kind and every interest in such property against loss or damage from any hazard or cause and against any loss consequential to such loss or damage, provided the self- insurance fund that is created:

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 exemption(d) forMaintains taxationa andcontinuing assessments.—program (1) Notwithstanding any other provision of law,excess anyinsurance twocoverage or more public housing authorities in the state as defined in chapter 421 may form a self-insurance fund for the purpose of pooling and spreadingreinsurance liabilitiesreserve ofevaluation its members as to anyprotect onethe orfinancial combinationstability of casualtythe riskfund orin realan oramount personal property risk of every kind and everymanner interestdetermined inby sucha propertyqualified against loss or damage from any hazard or cause and againstindependent anyactuary. loss consequential to such loss or damage, provided the self- insurance fund that is created:

(d) Maintains a continuing program of excess insurance coverage and reinsurance reserve evaluation to protect the financial stability of the fund in an amount and manner determined by a qualified and independent actuary.

A for-profit or not-for-profit corporation, limited liability Pagecompany, 9or ofother 45similar CODING:business entity in which a public housing authority holds an ownership interest or participates in its governance under s.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 company, or other similar business entity in which a public housing authority holds an ownership interest or participates in its governance under s.

626.9201Page Notice9 of cancellation43 orCODING: nonrenewal.— (2) An insurer issuing a policy providing coverage for property, casualty, surety, or marine insurance must give the named insured written notice of cancellation or termination other than nonrenewal at least 45 days before the effective date of the cancellation or termination, including in the written notice the reasons for the cancellation or termination, except that:

(a) If cancellation is for nonpayment of premium, at least 10 days’ written notice of cancellation accompanied by the reason for cancellation must be given.

As used in this paragraph, the term “nonpayment of premium” means the failure of the named insured to discharge when due any of his or her obligations in connection with the payment of premiums on a policy or an installment of such a premium, whether the premium or installment is payable directly to the insurer or its agent or indirectly under any plan for financing premiums or extension of credit or the failure of the named insured to maintain membership in an organization if such membership is a condition Page 10 of 45 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 precedent626.9201 toNotice of cancellation or nonrenewal.— (2) An insurer issuing a policy providing coverage for property, casualty, surety, or marine insurance coverage.must give the named insured written notice of cancellation or termination other than nonrenewal at least 45 days before the effective date of the cancellation or termination, including in the written notice the reasons for the cancellation or termination, except that:

(a) If cancellation is for nonpayment of premium, at least 10 days’ written notice of cancellation accompanied by the reason for cancellation must be given.

As used in this paragraph, the term “nonpayment of premium” means the failure of the named insured to discharge when due any of his or her obligations in connection with the payment of premiums on a policy or an installment of such a premium, whether the premium or installment is payable directly to the insurer or its agent or indirectly under any plan for financing premiums or extension of credit or the failure of the named insured to maintain membership in an organization if such membership is a condition precedent to insurance coverage.

If a correctly dishonored check represents payment of the initial premium, the contract and all contractual obligations are void ab initio unless the nonpayment is cured within the earlier of 5 days after actual notice by certified mail is received by the applicant or 15 days after notice is sent to the applicant by certifiedPage mail10 orof registered43 mail,CODING: and, if the contract is void, any premium received by the insurer from a third party must shall be refunded to that party in full;

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 certified mail or registered mail, and, if the contract is void, any premium received by the insurer from a third party must shall be refunded to that party in full;

252.36 and the filing of an order by the Commissioner of Insurance Regulation, an insurer may not cancel or nonrenew a personal residential or commercial residential property insurance policy covering a dwelling or residential property located in this state which has been damaged as a result of a hurricane or wind loss that is the subject of the declaration of emergency for 90 days after the dwelling or residential property Pagehas 11been ofrepaired. 45 CODING:

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 has been repaired.

However, an insurer or its agent may cancel or nonrenew such a policy before the repair of the dwelling or residential property:

(I) For a material misstatement or fraud related to the claim;Page 11 of 43 CODING:

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 claim;

(III) If the insurer or its agent makes a reasonable written inquiry to the insured as to the status of repairs, sent by certified mail, return receipt requested, and the insured fails within 30 calendar days to provide information that is responsive to the inquiry to either the address or e-maile- mail account designated by the insurer;

This paragraph does not prevent the insurer from canceling or nonrenewing the policy 90 days after the repair is completed for the same reasons the insurer would otherwise have Pagecanceled 12or nonrenewed the policy but for the limitations of 45subparagraph CODING:1.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 canceled or nonrenewed the policy but for the limitations of subparagraph 1.

1.Page 12 of 43 CODING:

MustWords accountstricken forare mitigationdeletions; measures undertaken by policyholders to reduce hurricane losses and windstorm losses.

words underlined are additions.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 1.

must account for mitigation measures undertaken by policyholders to reduce hurricane losses and windstorm losses.

If an averaged model is used under this section, the same averaged model must be used throughout this state.

If a weighted average is used, the insurer must provide the office with an actuarial justification for using the weighted average which shows that the weighted average results in a rate that is reasonable, adequate, and fair.

Page627.351 13Insurance ofrisk 45apportionment CODING:plans.— (6) CITIZENS PROPERTY INSURANCE CORPORATION.— (n)1.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 627.351 Insurance risk apportionment plans.— (6) CITIZENS PROPERTY INSURANCE CORPORATION.— (n)1.

The corporation may not pursue an administrative challengePage or13 judicial review of the43 finalCODING: order of the office.

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 challenge or judicial review of the final order of the office.

The corporation may use the public model results in combination with the results of private models to calculate rates for the windstorm portion of the Pagecorporation’s 14rates. of 45 CODING:

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 corporation’s rates.

The corporation may also implement an increase to reflectPage the14 effect on the corporation of the43 cashCODING: buildup factor pursuant to s.

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 reflect the effect on the corporation of the cash buildup factor pursuant to s.

The following New or renewal personal lines policies that do not cover a primary residence written on or after PageNovember 151, of2023, 45are CODING:not subject to the rate increase limitations in subparagraph 5., but may not be charged more than 50 percent above, nor less than, the prior year’s established rate for the corporation:

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 November 1, 2023, are not subject to the rate increase limitations in subparagraph 5., but may not be charged more than 50 percent above, nor less than, the prior year’s established rate for the corporation:

As used in this paragraph, the term “primary residence” meansPage the15 dwelling that is the policyholder’s primary home or is a rental property that is the primary home of the43 tenant,CODING: and which the policyholder or tenant occupies for more than 9 months of each year.

Section 8.

Paragraph (a) of subsection (5) of section 627.7011, Florida Statutes, is amended to read:

627.7011 Homeowners’ policies;

offer of replacement cost coverage and law and ordinance coverage.— (5)(a) As used in this subsection, the term “authorized inspector” means an inspector who is approved by the insurer and who is:

1.

A home inspector licensed under s.

468.8314;

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Florida Senate - 2024 CS for CSSB 1622 597-02596-24 20241622c1 means the dwelling that is the policyholder’s primary home or is a rental property that is the primary home of the tenant, and which the policyholder or tenant occupies for SBmore 1622than 594-03833-249 20241622c2months 2.of each year.

ASection building8. code inspector certified under s.

468.607;

3.

A general, building, or residential contractor licensed under s.

489.111 or a roofing contractor;

4.

A professional engineer licensed under s.

471.015;

5.

A professional architect licensed under s.

481.213;

or 6.

Any other individual or entity recognized by the insurer as possessing the necessary qualifications to properly complete a general inspection of a residential structure insured with a homeowner’s insurance policy.

Section 9.

Section 10.9.

(3) The character, financial responsibility, business experience, and standing of the proposed stockholders and Pagedirectors, 17including the stockholders and directors of 45any CODING:attorney in fact.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 directors, including the stockholders and directors of any attorney in fact.

Section 11.

regulation.—Page (1)16 An insurer that is authorized to do business in this state and that is a member of an43 insuranceCODING: holding company shall, on or before April 1 of each year, register with the office and file a registration statement and be subject to regulation with respect to its relationship to the holding company as provided by law or rule.

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 regulation.— (1) An insurer that is authorized to do business in this state and that is a member of an insurance holding company shall, on or before April 1 of each year, register with the office and file a registration statement and be subject to regulation with respect to its relationship to the holding company as provided by law or rule.

Page(2) 18Effective January 1, 2015, The ultimate controlling person of 45every CODING:insurer subject to registration shall also file an annual enterprise risk report on or before April 1.

As used in this subsection, the term “ultimate controlling person” means a person who is not controlled by any other person.

The report Page 17 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 (2)must, Effectiveto Januarythe 1,best 2015,of Thethe ultimate controlling personperson’s ofknowledge everyand insurerbelief, subjectmust toidentify registrationthe shallmaterial alsorisks filewithin anthe annualinsurance enterpriseholding riskcompany reportsystem onthat orcould beforepose Aprilenterprise 1.risk to the insurer.

As used in this subsection, the term “ultimate controlling person” means a person who is not controlled by any other person.

The report must, to the best of the ultimate controlling person’s knowledge and belief, must identify the material risks within the insurance holding company system that could pose enterprise risk to the insurer.

(c) The commission may adopt rules for filing the annual enterprise risk report in accordance with the Insurance Holding PageCompany 19System Regulatory Act and the Insurance Holding Company System Model Regulation of 45the CODING:NAIC, as adopted in December 2020.

(5) Effective January 1, 2015, The failure to file a registration statement, or a summary of the registration Page 18 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 Companystatement, Systemor Regulatorythe Actenterprise andrisk thefiling Insurancereport Holdingrequired Companyby Systemthis Modelsection Regulationwithin of the NAIC,time asspecified adoptedfor infiling Decemberis 2020.a violation of this section.

(5)Section Effective11. January 1, 2015, The failure to file a registration statement, or a summary of the registration statement, or the enterprise risk filing report required by this section within the time specified for filing is a violation of this section.

Section 12.

(f) A director, an officer, a trustee, a partner, an owner, Pagea 20manager, a joint venturer, an employee, or other person performing duties similar to those of 45persons CODING:in such positions.

(g) If the other person is an investment company, any investment adviser of such company or any member of an advisory board of such company.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 a(h) manager,If athe jointother venturer,person is an employee,unincorporated orinvestment othercompany personnot performinghaving dutiesa similarboard toof thosedirectors, ofthe personsdepositor inof such positions.company.

(g) If the other person is an investment company, any investment adviser of such company or any member of an advisory board of such company.

(h) If the other person is an unincorporated investment company not having a board of directors, the depositor of such company.

(4) “Reciprocal insurance” means is that resulting from an interexchange among persons, known as “subscribers,” of reciprocal agreements of indemnity, the interexchange being effectuated through an “attorney in fact” common to all such Pagepersons. 21 of 45 CODING:

(5) “Reciprocal insurer” means unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 persons.Section 12.

(5) “Reciprocal insurer” means unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves.

Section 13.

Section 14.13.

Section 15.14.

Page(c) 22The kinds of 45insurance CODING:proposed to be transacted.;

(d) The names and addresses of the original 25 or more subscribers.;

(e) The proposed designation and appointment of the proposed attorney in fact and a copy of the proposed power of Page 21 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 (c)attorney.; The kinds of insurance proposed to be transacted.;

(d) The names and addresses of the original 25 or more subscribers.;

(e) The proposed designation and appointment of the proposed attorney in fact and a copy of the proposed power of attorney.;

(j) A statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the Pagepolicy 23applied for, for a term of 45not CODING:less than 6 months at an adequate rate theretofore filed with and approved by the office;

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 policy applied for, for a term of not less than 6 months at an adequate rate theretofore filed with and approved by the office;

and (j)(l)Page A22 copy of each43 policy,CODING: endorsement, and application form the insurer it then proposes to issue or use.

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 (j)(l) A copy of each policy, endorsement, and application form the insurer it then proposes to issue or use.

624.501(1)(a)624.501(1)(a)and and such other pertinent information and documents as reasonably requested by the office.

628.061628.061, and628.071, 628.071 and other relevant provisions of the code.

Section 16.15.

(a) Executed copies of any proposed or draft documents Pagerequired 24as part of 45the CODING:permit application.

(b) A statement affirming that all moneys paid to the reciprocal insurer shall, after deducting therefrom any sum payable to the attorney in fact, be held in the name of the insurer and for the purposes specified in the subscribers’ Page 23 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 requiredagreement. as part of the permit application.

(b) A statement affirming that all moneys paid to the reciprocal insurer shall, after deducting therefrom any sum payable to the attorney in fact, be held in the name of the insurer and for the purposes specified in the subscribers’ agreement.

(3) If the reciprocal insurer intends to issue nonassessable policies upon the receipt of a certificate of authority, and the office determines that the reciprocal insurer meets the legal requirements to issue nonassessable policies, including the surplus requirements, the office mustshall grant authorization tofor issuea nonassessablecertificate policies.of authority.

If the surplus of the reciprocal insurer becomes impaired, the insurer may no longer issue or renew nonassessable policies or convert assessable policies to nonassessable policies, and the provisions of s.

629.301 shall apply.

Section 17.16.

629.094 Continued eligibility for certificate of Page 2524 of 4543 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 629.094 Continued eligibility for certificate of authority.—In order to maintain its eligibility for a certificate of authority, a domestic reciprocal insurer shall continue to meet all applicable conditions required for receiving the initial permit and certificate of authority under this code and the rules adopted thereunder.

Section 18.17.

629.101 Power of attorney.—attorney in fact.— (1) The rights and powers of the attorney in fact of a reciprocal insurer are shall be as provided in the power of attorney given it by the subscribers.

(a) The powers of the attorneyattorney.; in fact.;

(b) That the attorney in fact is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged.;

(c) The placegeneral whereservices theto officebe ofperformed by the attorneyattorney.; in fact is maintained.

(d) TheThat generalthe servicesattorney toin befact performedhas bya fiduciary duty to the attorneysubscribers inof fact.;the reciprocal insurer.

(e)(e)(d) ThatThe themaximum attorneyamount into factbe hasdeducted afrom fiduciaryadvance dutypremiums or deposits to be paid to the subscribersattorney ofand the reciprocalgeneral insurer.items of expense in addition to losses, to be paid by the insurer.;

(f)(d)and The(f)(e) maximumExcept amountas to benonassessable deductedpolicies, froma advanceprovision premiumsfor ora depositscontingent toseveral beliability paidof toeach thesubscriber attorney in facta andspecified theamount, generalwhich itemsamount ofshall expensebe innot additionless tothan losses,5 tonor bemore paidthan by10 times the insurer.;premium or premium deposit stated in the policy.

and(3) (g)(e)The Exceptpower as to nonassessable policies, a provision for Page 26 of 45attorney CODING:may:

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 a(a) contingentProvide severalfor liabilitythe right of eachsubstitution subscriberof inthe aattorney specifiedand amount,revocation whichof amount may shall be not be less than 5 or nor more than 10 times the premiumpower orof premiumattorney depositand statedrights inthereunder; the policy.

(3)(b) TheImpose powersuch restrictions upon the exercise of attorneythe maypower doas allare ofagreed upon by the following:subscribers;

(a)(c) Provide for the rightexercise of substitutionany ofright thereserved attorneyto in fact and revocation of the powersubscribers ofdirectly attorneyor andthrough rightstheir thereunder.;advisory committee;

(b)and Impose(d) suchContain restrictionsother uponlawful theprovisions exercisedeemed ofadvisable. the power as are agreed upon by the subscribers.;

(c)(4) ProvideThe forterms theof exerciseany power of anyattorney rightor reservedagreement tocollateral thethereto subscribersshall directlybe reasonable and equitable, and no such power or throughagreement theirshall advisorybe committee.;used or be effective in this state unless filed with the office.

andSection (4)(d)18. The power of attorney must contain other lawful provisions deemed advisable.

(5)(4) The terms of any power of attorney or agreement collateral thereto must shall be reasonable and equitable, and no such power or agreement may shall be used or be effective in this state unless filed with the office.

Section 19.

(1) A person may not, individually or in conjunction with any affiliated person of such person, directly or indirectly, conclude a tender offer or exchange offer for, enter into any agreement to exchange securities for, or otherwise finally acquire, 10 percent or more of the outstanding voting securities of an attorney in fact which is a stock corporation or of a Pagecontrolling 27company of 45an CODING:attorney in fact which is a stock corporation;

or conclude an acquisition of, or otherwise finally acquire, 10 percent or more of the ownership interest of an attorney in fact which is not a stock corporation or of a controlling company of an attorney which is not a stock corporation, unless all of the following conditions are met:

(a) The person or affiliated person has filed with the Page 26 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 office and sent to the principal office of the attorney in fact, and any controlling company of anthe attorney in factfact, whichthe subscribers’ advisory committee, and the domestic reciprocal insurer a letter of notification regarding the transaction or proposed transaction no later than 5 days after any form of tender offer or exchange offer is proposed, or no later than 5 days after the acquisition of the securities or ownership interest if a stocktender corporation;offer or exchange offer is not involved.

or conclude an acquisition of, or otherwise finally acquire, 10 percent or more of the ownership interest of an attorney in fact which is not a stock corporation or of a controlling company of an attorney which is not a stock corporation, unless all of the following conditions are met:

(a) The person or affiliated person has filed with the office and sent to the principal office of the attorney in fact, and any controlling company of the attorney in fact, the subscribers’ advisory committee, and the domestic reciprocal insurer a letter of notification regarding the transaction or proposed transaction no later than 5 days after any form of tender offer or exchange offer is proposed, or no later than 5 days after the acquisition of the securities or ownership interest if a tender offer or exchange offer is not involved.

The application must be completed and filed within 30 days after any form of tender offer or Pageexchange 28offer is proposed, or after the acquisition of 45the CODING:securities if a tender offer or exchange offer is not involved.

(d) The office has approved the tender offer or exchange offer, or acquisition if a tender offer or exchange offer is not involved.

(2) This section does not apply to any acquisition of voting securities or ownership interest of an attorney in fact Page 27 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 exchangeor offerof isa proposed,controlling orcompany afterby any person who is the acquisitionowner of a majority of the voting securities ifor aownership tenderinterest offerwith orthe exchangeapproval offerof isthe notoffice involved.under this section or s.

(d) The office has approved the tender offer or exchange offer, or acquisition if a tender offer or exchange offer is not involved.

(2) This section does not apply to any acquisition of voting securities or ownership interest of an attorney in fact or of a controlling company by any person who is the owner of a majority of the voting securities or ownership interest with the approval of the office under this section or s.

Page(a) 29The ofidentity 45and CODING:background information specified in s.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 (a) The identity and background information specified in s.

Any person who controls, directly or indirectly, such other person, including each director, officer, trustee, partner, owner, manager, or joint venturer, or other person performingPage duties28 similar to those of persons43 inCODING: such positions, for the person.

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Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 performing duties similar to those of persons in such positions, for the person.

(f) Information as to any contract, arrangement, or understanding with any party with respect to any of the securities of the attorney in fact or controlling company, Pageincluding, 30but not limited to, information relating to the transfer of 45any CODING:of the securities, option arrangements, puts or calls, or the giving or withholding of proxies, which information names the party with whom the contract, arrangement, or understanding has been entered into and gives the details thereof.

(g) The filing must be accompanied by the fee required Page 29 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 including,under buts. not limited to, information relating to the transfer of any of the securities, option arrangements, puts or calls, or the giving or withholding of proxies, which information names the party with whom the contract, arrangement, or understanding has been entered into and gives the details thereof.

(g) The filing must be accompanied by the fee required under s.

Any written request for a proceeding must be filed with the office within 10 days after the date notice of the filing is given, or 10 days after notice of the filing is sent to the subscribers by the subscribers’subscribers advisory committee, whichever is later.

During the pendency of the proceeding or review period by the office, any person or affiliated person complying with the filing requirements of this section may proceed and take all steps necessary to conclude the acquisition Pageso 31long ofas 45the CODING:acquisition becoming final is conditioned upon obtaining office approval.

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Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 so long as the acquisition becoming final is conditioned upon obtaining office approval.

(b)Page During30 the pendency of the43 office’sCODING: review of any acquisition subject to the provisions of this section, the acquiring person may not make any material change in the operation of the attorney in fact or controlling company unless the office has specifically approved the change, nor shall the acquiring person make any material change in the management of the attorney in fact unless advance written notice of the change in management is furnished to the office.

The term “material change in the operation of the attorney in fact” means a transaction that disposes of or obligates 5 percent or more of the capital and surplus of the attorney in fact or of any domestic reciprocal insurer.

The term “material change in the management of the attorney in fact” means any change in management involving officers or directors of the attorney in fact or any person of the attorney or controlling company having authority to dispose of or obligate 5 percent or more of the attorney in fact’s capital or surplus.

The office shall approve a material change in operations if it finds the applicable provisions of subsection (8) have been met.

The office may disapprove a material change in management if it finds that the applicable provisions of subsection (8) have not been met and in such case the attorney in fact shall promptly change management Page 32 of 45 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 as(b) acceptableDuring the pendency of the office’s review of any acquisition subject to the provisions of this section, the acquiring person may not make any material change in the operation of the attorney in fact or controlling company unless the office has specifically approved the change, nor shall the acquiring person make any material change in the management of the attorney in fact unless advance written notice of the change in management is furnished to the office.

The term “material change in the operation of the attorney in fact” means a transaction that disposes of or obligates 5 percent or more of the capital and surplus of the attorney in fact or of any domestic reciprocal insurer.

The term “material change in the management of the attorney in fact” means any change in management involving officers or directors of the attorney in fact or any person of the attorney or controlling company having authority to dispose of or obligate 5 percent or more of the attorney in fact’s capital or surplus.

The office shall approve a material change in operations if it finds the applicable provisions of subsection (7) have been met.

The office may disapprove a material change in management if it finds that the applicable provisions of subsection (7) have not been met and in such case the attorney in fact shall promptly change management as acceptable to the office.

A final order shall be issued within 20 days after the date of the recommended order or, if exceptionsPage to31 theof recommended43 orderCODING: are filed, within 20 days after the date the exceptions are filed.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 exceptions to the recommended order are filed, within 20 days after the date the exceptions are filed.

Page(a) 33The financial condition of 45the CODING:acquiring person or persons will not jeopardize the financial stability of the attorney in fact or prejudice the interests of the reciprocal insurer’s subscribers or the public.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 (a) The financial condition of the acquiring person or persons will not jeopardize the financial stability of the attorney in fact or prejudice the interests of the reciprocal insurer’s subscribers or the public.

To liquidate the attorney in fact, sell its assets, or mergePage or32 consolidate it with any person, or to make any other major change in its business or corporate structure or management, is fair and free of prejudice43 toCODING: the reciprocal insurer’s subscribers or to the public;

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 merge or consolidate it with any person, or to make any other major change in its business or corporate structure or management is fair and free of prejudice to the reciprocal insurer’s subscribers or to the public;

(e) The directors and officers, if such attorney in fact or Pagecontrolling 34company is a stock corporation, or the trustees, partners, owners, managers, joint venturers, or other persons performing duties similar to those of 45persons CODING:in such positions, if such attorney in fact or controlling company is not a stock corporation, to be employed after the acquisition have sufficient insurance experience and ability to assure reasonable promise of successful operation.

Page 33 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 controlling(f) companyThe ismanagement aof stockthe corporation,attorney orin thefact trustees,after partners,the owners,acquisition managers,will jointbe venturers,competent, ortrustworthy, otherand personswill performingpossess dutiessufficient similarmanagerial toexperience thoseso ofas personsto inmake suchthe positions,proposed ifoperation suchof the attorney in fact or controlling company is not ahazardous stock corporation, to be employed after the acquisitioninsurance-buying havepublic. sufficient insurance experience and ability to assure reasonable promise of successful operation.

(f)(g) The management of the attorney in fact after the acquisition willshall benot competentinclude andany trustworthyperson andwho willhas possessdirectly sufficientor managerialindirectly experiencethrough soownership, ascontrol, toreinsurance maketransactions, or other insurance or business relations unlawfully manipulated the proposedassets, operationaccounts, finances, or books of theany attorneyinsurer inor factotherwise notacted hazardousin tobad thefaith insurance-buyingwith public.respect thereto.

(g) The management of the attorney in fact after the acquisition does 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 otherwise acted in bad faith with respect thereto.

Upon the petition of the attorney in fact, any or the Pagecontrolling 35company, or the reciprocal insurer the circuit court for the county in which the principal office of 45the CODING:attorney in fact is located may, without limiting the generality of its authority, order the issuance or entry of an injunction or other order to enforce this section.

There shall be a private right of action in favor of the attorney in fact, or controlling company, to enforce this section.

A demand upon the office that it Page 34 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 controllingperforms company,its orfunctions themay reciprocalnot insurer,be therequired circuitas courta forprerequisite theto countyany insuit whichby the principalattorney officein offact theor attorneycontrolling incompany factagainst isany locatedother may,person, withoutand limitingin no case shall the generalityoffice ofbe itsdeemed authority,a ordernecessary theparty issuanceto orany entryaction ofby anthe injunctionattorney in fact or othercontrolling ordercompany to enforce this section.

There shall be a private right of action in favor of the attorney in fact, or controlling company, to enforce this section.

A demand upon the office that it performs its functions may not be required as a prerequisite to any suit by the attorney in fact or controlling company against any other person, and in no case shall the office be deemed a necessary party to any action by the attorney in fact or controlling company to enforce this section.

The statute of limitations period for the prosecution of an Pageoffense 36committed ofunder 45this CODING:subsection is 5 years.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 offense committed under this subsection is 5 years.

In lieu of such form, a person or acquiring party mayPage file35 with the office a copy of a43 ScheduleCODING: 13G filed with the Securities and Exchange Commission pursuant to Rule 13d-1(b) or (c), 17 C.F.R.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 may file with the office a copy of a Schedule 13G filed with the Securities and Exchange Commission pursuant to Rule 13d-1(b) or (c), 17 C.F.R.

(13)(a) The office must,shall, if necessary to protect the public interest, suspend or revoke the certificate of authority of the reciprocal insurer whose attorney in fact or controlling company Pageis 37acquired in violation of 45this CODING:section.

(b) If any reciprocal insurer is subject to suspension or revocation pursuant to paragraph (a), any other reciprocal insurer using the same attorney in fact shall also be subject to suspension or revocation.

In such case, the office may offer any affected reciprocal insurer, through its subscriber representatives, the ability to cure any suspension or Page 36 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 isrevocation acquiredby procuring another attorney in violationfact ofacceptable thisto section.the office or taking any other action agreed to by the office.

(b)Section If19. any reciprocal insurer is subject to suspension or revocation pursuant to paragraph (a), any other reciprocal insurer using the same attorney in fact is also subject to suspension or revocation.

In such case, the office may offer any affected reciprocal insurer, through its subscriber representatives, the ability to cure any suspension or revocation by procuring another attorney in fact acceptable to the office or taking any other action agreed to by the office.

Section 20.

(1) A sworn biographical statement,statement on forms adopted by the commission,commission whichthat mustshall include, but need not be limited to, the following information:

(b) Whether the person was, at any time during asuch 10-year period, convicted of any crime other than a traffic violation.

(c) Whether the person has been, during asuch 10-year period, the subject of any proceeding for the revocation of any license and, if so, the nature of the proceeding and the disposition of the proceeding.

(d) Whether, during asuch 10-year period, the person has been Pagethe 38subject of 45any CODING:proceeding under the federal Bankruptcy Act.

(e) Whether, during such 10-year period, any person or other business or organization in which the person was a director, officer, trustee, partner, owner, manager, or other official has been subject of any proceeding under the federal Bankruptcy Act, either during the time of that person’s tenure Page 37 of 43 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 with the subjectbusiness ofor anyorganization proceedingor underwithin the12 federalmonths Bankruptcythereafter. Act.

(e)(f) Whether, during asuch 10-year period, anythe person orhas otherbeen businessenjoined, temporarily or organizationpermanently, inby whicha thecourt personof wascompetent ajurisdiction director,from officer,violating trustee,any partner,federal owner, manager, or otherstate officiallaw hasregulating been the subjectbusiness of anyinsurance, proceedingsecurities, underor thebanking, federalor Bankruptcyfrom Act,carrying eitherout duringany theparticular timepractice ofor thatpractices person’sin tenurethe withcourse of the business orof organizationinsurance, securities, or withinbanking, 12together monthswith thereafter.details as to any such event.

(f)(g) Whether, during asuch 10-year20-year period, the person hasserved beenas enjoined,the temporarilyattorney orin permanently,fact, by a courtsubscribers’ ofadvisory competentcommittee jurisdictionmember, fromor violating any federalother manager or stateofficer law regulating the business of insurance,a securities,reciprocal orinsurer banking, or froman carryinginsurer outthat anybecame particularinsolvent practice or practiceshad inits thecertificate course of theauthority businesssuspended of insurance, securities, or banking,revoked. together with details as to any such event.

(g)(2) Whether,Fingerprints during a 20-year period, the person served as the attorney in fact, a subscribers’ advisory committee member, or any other manager or officer of aeach reciprocalperson. insurer or an insurer that became insolvent or had its certificate of authority suspended or revoked.

(2)(3) AAuthority fullfor setrelease of fingerprints,information whichin mustregard be provided to the departmentinvestigation orof tosuch aperson’s vendor,background. entity, or agency authorized by s.

943.053(13).

The department, vendor, entity, or agency shall forward the fingerprints to the Department of Law Enforcement for state processing and the Department of Law Enforcement shall forward the fingerprints to the Federal Bureau of Investigation for national processing as described in s.

624.34.

Fees for state and federal fingerprint processing must be borne by the individual.

The state cost for fingerprint processing is as provided in s.

943.053(3)(e).

Page 39 of 45 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 (3) Authority for release of information in regard to the investigation of such person’s background.

Section 21.20.

629.229 Attorney in fact, officers, and directors of insolvent reciprocal insurers or other insurers.—Any person who served as an attorney in fact, or as an officer, director, or manager of an attorney in fact, any member of a subscribers’ advisory committee of a reciprocal insurer doing business in thisPage state,38 or an officer or director of any43 otherCODING: insurer doing business in this state, and who served in that capacity within the 2-year period before the date the insurer or reciprocal insurer became insolvent, for any insolvency that occurs on or after July 1, 2024, may not thereafter:

(1) Serve as an attorney in fact, or as an officer, director, or manager of an attorney in fact, or a member of a subscribers’ advisory committee of a reciprocal insurer doing business in this state, or an officer or director of any other insurer doing business in this state;

or (2) Have direct or indirect control over the selection or appointment of an attorney in fact, or of an officer, director, or manager of an attorney in fact, or a member of the subscribers’ advisory committee of a reciprocal insurer doing business in this state, or an officer or director of any insurer Page 40 of 45 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 this state, or an officer or director of any other insurer doing business in this state, throughand contract,who trust,served orin bythat operationcapacity ofwithin law,the unless2-year theperiod individualbefore demonstratesthe thatdate histhe insurer or herreciprocal personalinsurer actionsbecame orinsolvent, omissionsfor wereany notinsolvency athat significantoccurs contributingon causeor toafter theJuly insolvency.1, 2024, may not thereafter:

Section(1) 22.Serve as an attorney in fact, or as an officer, director, or manager of an attorney in fact, or a member of a subscribers advisory committee of a reciprocal insurer doing business in this state, or an officer or director of any other insurer doing business in this state;

or (2) Have direct or indirect control over the selection or appointment of an attorney in fact, or of an officer, director, or manager of an attorney in fact, or a member of the subscribers committee of a reciprocal insurer doing business in this state, or an officer or director of any insurer doing business in this state, through contract, trust, or by operation of law, unless the individual demonstrates that his or her personal actions or omissions were not a significant contributing cause to the insolvency.

Section 21.

629.091(3)629.291(5) or s.

629.291(5).629.091(3).

Upon(1) revocationIf ofa the authority to issue nonassessable policies, the reciprocal insurer mayhas nota issuesurplus oras renewto nonassessablepolicyholders policiesrequired orof converta assessabledomestic policiesstock insurer authorized to nonassessablePage policies,39 andof s.43 CODING:

629.301 applies to such insurer.

(1) If a reciprocal insurer has a surplus as to policyholders required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers’ advisory committee the office shall issue its certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for so long as all such surplus remains unimpaired.

(2) Upon impairment of such surplus, the office shall forthwith revoke the certificate.

Such revocation does shall not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has Page 41 of 45 CODING:

Florida Senate - 2024 CS for CSSB 1622 597-02596-24 20241622c1 transact like kinds of insurance, upon application of the attorney and as approved by the subscribers’ advisory committee the office shall issue its certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state and to omit provisions imposing contingent liability in all policies delivered or issued for SBdelivery 1622in 594-03833-24this 20241622c2state theretoforefor beenso paid;long as all such surplus remains unimpaired.

(2) Upon impairment of such surplus, the office shall forthwith revoke the certificate.

Such revocation does shall not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has theretofore been paid;

Section 23.22.

629.291Page Merger40 or conversion.— (1) A domestic reciprocal insurer, upon affirmative vote of not43 lessCODING: than two-thirds of its subscribers who vote on such merger pursuant to due notice, and subject to the approval by of the office of the terms therefor, may merge with another reciprocal insurer or be converted to a stock or mutual insurer, to be thereafter governed by the applicable sections of the insurance code.

However, a domestic stock insurer may not convert to a reciprocal insurer.

(2) A plan to merge a reciprocal insurer with another reciprocal insurer or for conversion of the reciprocal insurer to a stock or mutual insurer must be filed on forms adopted by Page 42 of 45 CODING:

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24597-02596-24 20241622c220241622c1 the629.291 officeMerger andor containconversion.— such(1) informationA asdomestic thereciprocal officeinsurer, reasonablyupon requiresaffirmative tovote evaluateof thenot transactionless Suchthan atwo-thirds stockof orits mutualsubscribers insurerwho shallvote beon such merger pursuant to due notice, and subject to the sameapproval capitalby orof surplusthe requirementsoffice andof shallthe haveterms thetherefor, samemay rightsmerge aswith another reciprocal insurer or be converted to a likestock domesticor insurermutual transactinginsurer, liketo kindsbe thereafter governed by the applicable sections of insurance.the insurance code.

However, a domestic stock insurer may not convert to a reciprocal insurer.

(2) A plan to merge a reciprocal insurer with another reciprocal insurer or for conversion of the reciprocal insurer to a stock or mutual insurer shall be filed on forms adopted by the office and contain such information as the office reasonably requires to evaluate the transaction Such a stock or mutual insurer shall be subject to the same capital or surplus requirements and shall have the same rights as a like domestic insurer transacting like kinds of insurance.

(5)(a) An assessable reciprocal insurer may convert to a nonassessablePage reciprocal41 insurerof if:43 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 nonassessable reciprocal insurer if:

Page2. 43 of 45 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 2.

Section(c) 24.If the surplus of the reciprocal insurer becomes impaired, the insurer may no longer issue nonassessable policies or convert assessable policies to nonassessable policies, and the provisions of s.

629.301 shall apply.

Section 23.

Section 25.24.

Paragraph (h) of subsection (3) of section 163.01,Page Florida42 Statutes,of is43 amendedCODING: to read:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 1622 597-02596-24 20241622c1 163.01, Florida Statutes, is amended to read:

Section 26.25.

626.9531 Identification of insurers, agents, and insurance contracts.— Page(3) 44For the purposes of 45this CODING:section, the term “risk bearing entity” means a reciprocal insurer as defined in s.

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for CS for SB 1622 594-03833-24 20241622c2 (3) For the purposes of this section, the term “risk bearing entity” means a reciprocal insurer as defined in s.

Section 27.26.

ExceptThis as otherwise expressly provided in this act and except for this section, which shall take effect upon this act becoming a law, this act shall take effect July 1, 2024.

Page 4543 of 4543 CODING: