CS/HB 509 Summary

• Expands the definition of "financial guaranty insurance corporation" to include both stock and mutual insurers licensed to transact financial guaranty insurance business in Florida.

• Authorizes mutual insurance holding companies to acquire interests or assets in not-for-profit insurance companies and not-for-profit health care plans, in addition to existing stock insurance company acquisitions.

• Allows articles of incorporation and bylaws of mutual insurance holding companies to restrict voting and distribution rights of policyholders in not-for-profit health care plans when the health care plan's assets are not available for distribution.

• Permits not-for-profit insurance company subsidiaries to pay dividends or distributions to their mutual insurance holding companies (directly or through intermediate holding companies) without triggering restrictions that apply to stock insurers.

• Exempts dividends or distributions from a not-for-profit insurance company subsidiary to its mutual insurance holding company from being classified as a "distribution" under Florida's not-for-profit corporation law.