FL H0029

Requires insurers paying fees, commissions, or other financial consideration to affiliates to provide documentation to the Office of Insurance Regulation supporting that payments are fair and reasonable.

Establishes six minimum factors the office must consider when determining fairness: actual cost of services, comparable nonaffiliate costs, relative financial condition of insurer and managing general agent, holding company debt levels, dividend amounts and purposes, and whether contract terms benefit the insurer and policyholders.

Mandates insurers with existing affiliate agreements as of July 1, 2024 to report to the office by October 1, 2024 the affiliate's cost to provide services, amounts charged to the insurer, and fees forgiven or waived for the prior two years.

Requires insurers to explain how they determined fees were fair and reasonable if total charges exceeded total costs in either of the two preceding years.

Allows insurers to submit proposals from unaffiliated third parties for comparison services to support fairness determinations for new affiliate contracts effective after July 1, 2024; bill takes effect July 1, 2024.