CS/CS/HB 821 Summary

• Creates new definitions for "affiliate," "affiliated person," and "control" in Florida Insurance Code to clarify relationships between insurers and related entities, with control presumed when any person owns 10 percent or more of voting securities.

• Revises risk-based capital calculations for insurers, changing the company action level event threshold from 3.0 to 2.5 for life and health insurers and adding trend test requirements for property and casualty insurers.

• Requires insurers' annual statements to include an actuarial opinion summary (for property and casualty insurers) and protects actuarial materials from subpoena, discovery, and use in civil actions.

• Lowers the threshold for controlling stock acquisition disclosure from 10 percent to 5 percent of voting securities and requires acquirers to file additional information including enterprise risk assessments; deletes the disclaimer of affiliation alternative.

• Expands insurance holding company registration and regulation requirements, establishes supervisory colleges to coordinate multi-regulator oversight, and applies solvency standards to health maintenance organizations and prepaid health service organizations.