Florida Lawmakers Consider Insurance Industry Changes
- Facing intense public and media scrutiny, florida legislative leaders have committed to scrutinizing the financial structures of property insurers.
- Here's a breakdown of the critical issues Florida lawmakers are addressing in Tallahassee to mitigate the ongoing Florida insurance crisis.
- On Tuesday, House Speaker Danny Perez, R-Miami, announced a formal investigation into the relationships between property insurance carriers and their managing general agents, as well as other affiliated...
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Florida Lawmakers Tackle Insurance Crisis: Key Bills and investigations
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Facing intense public and media scrutiny, florida legislative leaders have committed to scrutinizing the financial structures of property insurers. As the 2025 legislative session commences, proposed bills aim to mandate executive pay disclosure by carriers, alongside other notable changes impacting both insurance agents and policyholders.
Here’s a breakdown of the critical issues Florida lawmakers are addressing in Tallahassee to mitigate the ongoing Florida insurance crisis.
examination into Managing General Agents (MGAs)
On Tuesday, House Speaker Danny Perez, R-Miami, announced a formal investigation into the relationships between property insurance carriers and their managing general agents, as well as other affiliated entities. This announcement follows reports by the Tampa Bay Times and Miami Herald, highlighting a 2022 analysis by the Florida Office of insurance Regulation (OIR). The analysis suggests that insurers allegedly diverted billions to affiliate companies while simultaneously claiming financial distress due to hurricanes and claims litigation.
The investigation’s potential impact on imposing new restrictions or reporting mandates on Florida carriers and MGAs remains uncertain. This issue has surfaced previously, indicating ongoing concerns about insurance regulation.
Insurance agents, industry advocates, and lobbyists have voiced opposition to the news report and the call for further investigations. They argue that MGA arrangements are already subject to OIR approval and that it would be illogical for insurance holding companies to intentionally allow a carrier to become insolvent while diverting profits.
Alan McGinnis, principal at McGinnis himmel Insurance Agency in Tallahassee, noted that the Tampa Bay Times report “glides right by the comment that many affiliated companies poured back almost $700 million to the insurance companies in order to keep them from insolvency.”
Recent legislative changes appear to be gradually improving the situation, attracting new capital and carriers to the Florida market and slowing down the pace of rate increases.
key Insurance Bills Under Consideration
despite the ongoing House investigation, insurance costs remain a primary concern for Florida homeowners, according to B.G. Murphy of the Florida Association of Insurance Agents (FAIA). Florida business leaders, insurance executives, and agents have cautioned lawmakers against altering the 2022-2023 reforms that eliminated one-way attorney fees and discouraged costly claims litigation.
This divergence in opinion has resulted in several bills that are currently under scrutiny by insurance stakeholders.
House Bill 643 (HB 643)
Sponsored by Rep. John Snyder, R-Palm Beach, HB 643 is a top priority for the FAIA. This bill aims to streamline the process for agents to move commercial and commercial residential policyholders to surplus lines and to sell Citizens Property insurance Corp. policies. The bill would eliminate the requirement for agents to make a “diligent effort” to find coverage before securing surplus lines coverage.
According to B.G.Murphy, “The diligent effort requirement serves no purpose.”
HB 643 also seeks to ease the 2024 requirement that agents be appointed with at least three carriers before writing citizens’ policies. Under the proposed changes, agents could provide a signed statement demonstrating access to primary market carriers through a broker.
Senate Bill 230 (SB 230)
Sponsored by Rep. Keith Truenow, R-Tavares, SB 230 is an omnibus bill that proposes several changes. One controversial provision would reduce the number of pre-licensing education hours for agents from 200 to 60, a move strongly opposed by the FAIA. Dave Newell of FAIA argues that this would “dumb down” the requirements for agents.
Though, SB 230 also aims to help insurers avoid bad-faith claims by clarifying the 2022 law, requiring a court finding that the policy contract was breached before extra-contractual damages can be demanded. The bill would also mandate that plaintiffs specify exact damage amounts and exclude attorney fees from damages. Insurers would have a 60-day notice period, with possible 10-day extensions, to request additional facts from policyholders.
Furthermore, SB 230 would prohibit public adjusters from engaging in adversarial conduct with insurance adjusters, including recording insurer personnel. This provision addresses concerns raised by Citizens and other carriers about public adjusters allegedly threatening insurer claims workers and obstructing inspections.
Senate Bill 592 (SB 592) and House Bill 393 (HB 393)
These bills seek to extend the My Safe Florida Condominium pilot program while clarifying that certain detached buildings would not be eligible for grants. The bills would also lower the required agreement level from 100% to 75% of unit owners to apply for the program. Eligibility would be limited to condo buildings of three stories or higher.
For single-home mitigation measures, SB 1466 and HB 851, sponsored by Rep. Chip LaMarca, propose establishing a trust fund that would allocate up to $300 million annually for the My Safe Florida Home program.The funding would come from 5% of sales tax revenue generated from hurricane-impacted counties in the two months following a storm.
Senate Bill 128 (SB 128)
Sponsored by Sen. danny Burgess, R-Zephyrhills, SB 128 aims to be consumer-pleasant amid rising concerns about insurance rates and practices.Though,it has caused
Florida Insurance Crisis: Q&A on Legislative Actions & Proposed Bills
Florida’s insurance market is facing a crisis, with rising costs and insurer instability. Lawmakers are actively working to address these challenges through new legislation and investigations. This Q&A provides insights into the key issues and proposed solutions.
General Questions About the Florida Insurance Crisis
What is the main focus of Florida lawmakers regarding the insurance crisis?
Florida lawmakers are primarily focused on scrutinizing the financial structures of property insurers and mitigating the ongoing insurance crisis through proposed bills and investigations into insurer practices. Proposed bills include mandates for executive pay disclosure by carriers and other changes impacting insurance agents and policyholders.
### What is the examination into Managing General Agents (MGAs) about?
The Florida House of Representatives, led by speaker Danny Perez, has launched a formal investigation into the relationships between property insurance carriers and their Managing General Agents (MGAs), and also other affiliated entities. This investigation follows reports suggesting that insurers allegedly diverted billions to affiliate companies while claiming financial distress. The aim is to determine if new restrictions or reporting mandates are needed for Florida carriers and MGAs.
### What concerns have insurance agents raised about the investigation into MGAs?
Insurance agents, industry advocates, and lobbyists have expressed opposition to the investigation, arguing that MGA arrangements are already subject to approval by the Office of Insurance Regulation (OIR). Thay also claim that it would be illogical for insurance holding companies to intentionally allow a carrier to become insolvent while diverting profits.
### Have recent legislative changes had any positive impacts on Florida’s insurance market?
Yes,there are indications that recent legislative changes are gradually improving the situation by attracting new capital and carriers to the florida market and slowing down the pace of rate increases.
## Key Insurance Bills Under Consideration
### What is the primary concern for Florida homeowners regarding insurance?
The primary concern for Florida homeowners remains the high cost of insurance.
### What prior reforms are insurance executives cautioning against altering?
Insurance executives, agents, and business leaders are cautioning lawmakers against altering the 2022-2023 reforms that eliminated one-way attorney fees and discouraged costly claims litigation.
### What are the Key Insurance Bills Under Consideration in Florida?
House Bill 643 (HB 643): Streamlines the process for agents to move commercial and commercial residential policyholders to surplus lines and sell Citizens Property Insurance Corp. policies.
Senate Bill 230 (SB 230): An omnibus bill that proposes changes, including reducing pre-licensing education hours for agents and clarifying the 2022 law to help insurers avoid bad-faith claims.
Senate Bill 592 (SB 592) and House Bill 393 (HB 393): seek to extend the My Safe Florida Condominium pilot program and clarify eligibility requirements.
senate Bill 1466 and House Bill 851: Propose establishing a trust fund to allocate up to $300 million annually for the My safe Florida Home program.
Senate Bill 128 (SB 128): Aims to be consumer-pleasant amid rising concerns about insurance rates and practices.
### What does House bill 643 (HB 643) aim to achieve?
HB 643, sponsored by Rep. John Snyder, aims to streamline the process for insurance agents to move commercial and commercial residential policyholders to surplus lines and making it easier to sell Citizens Property Insurance Corp. policies. It eliminates the “diligent effort” requirement for agents to find coverage before securing surplus lines coverage.
### What are the proposed changes in Senate Bill 230 (SB 230)?
SB 230, sponsored by Rep. Keith Truenow, proposes several changes, including:
Reducing the number of pre-licensing education hours for agents from 200 to 60.
Clarifying the 2022 law to help insurers avoid bad-faith claims by requiring a court finding that the policy contract was breached before extra-contractual damages can be demanded.
Mandating that plaintiffs specify exact damage amounts.
* Prohibiting public adjusters from engaging in adversarial conduct with insurance adjusters.
### What is the FAIA’s stance on reducing pre-licensing education hours for agents, as proposed in SB 230?
The FAIA (Florida Association of Insurance Agents) strongly opposes reducing the pre-licensing education hours for agents, arguing that it would “dumb down” the requirements.
### What do Senate Bill 592 (SB 592) and House Bill 393 (HB 393) seek to accomplish?
These bills seek to extend the My Safe Florida Condominium pilot program and clarify that certain detached buildings would not be eligible for grants. They also aim to lower the required agreement level from 100% to 75% of unit owners to apply for the program.Eligibility would be limited to condo buildings of three stories or higher.
### what is the purpose of Senate Bill 1466 and House Bill 851?
These bills propose establishing a trust fund that would allocate up to $300 million annually for the My Safe Florida home program. The funding would come from 5% of sales tax revenue generated from hurricane-impacted counties in the two months following a storm.
### What is the goal of Senate Bill 128 (SB 128)?
SB 128 aims to be consumer-pleasant amid rising concerns about insurance rates and practices.
## Summary Table of Key Bills
| Bill Number | Description | Key Provisions |
| :—————— | :————————————————————————————————————————————————- | :—————————————————————————————————————————————————- |
| HB 643 | Streamlines agent process for surplus lines and Citizens policies | Eliminates “diligent effort” requirement for surplus lines; eases agent appointment requirements for Citizens.|
| SB 230 | Omnibus bill with various changes | Reduces agent pre-licensing education hours (opposed by FAIA); clarifies bad-faith claims; restricts public adjuster conduct. |
| SB 592 / HB 393 | Extends my Safe Florida Condominium program | Clarifies eligibility; lowers agreement level for participation; limits eligibility to condo buildings of three stories or higher. |
| SB 1466 / HB 851 | Establishes trust fund for My Safe Florida Home program | Allocates up to $300 million annually from sales tax revenue in hurricane-impacted counties. |
| SB 128 | Aims to be consumer-pleasant | TBD |