FL H1141

Residential property insurance transparency: Beginning October 1, 2025, insurers must include rate transparency reports with all residential property rate filings, showing percentage breakdowns of reinsurance costs, claims, fees, commissions, and profit; reports must be provided to consumers with coverage offers and renewals, and OIR must establish a comprehensive online resource center with market data, mitigation credits, and affiliated entity disclosures.

Rate filing restrictions and reporting: Personal residential property and motor vehicle insurers are limited to one "use and file" filing per policy period (excluding reinsurance-related filings); residential property insurers must submit annual reports by March 1, 2026 detailing policies, mitigation discounts, and resiliency trends; auto insurers must file monthly experience reports beginning January 1, 2026.

Reciprocal insurer overhaul: Minimum surplus requirements increase from $250,000 to $3 million for assessable reciprocal insurers; attorney-in-fact bond increases from $100,000 to $300,000; new frameworks established for subscriber contributions, savings accounts, and distributions; subscribers' advisory committees made mandatory with at least two-thirds elected independent members; fees and payments to affiliates must be documented as fair and reasonable.

Cybersecurity and data security: OIR and the Financial Services Commission must adopt rules on cybersecurity of consumer nonpublic insurance data, modeled on the NAIC Insurance Data Security Model Law (October 2017), applicable to all entities transacting insurance including HMOs and contracted third parties, requiring information security programs, cybersecurity event investigation and notification, and copies of breach notices sent to OIR.

Continuing care retirement community (CCRC) financial safeguards: Minimum liquid reserve accounts must be separate, unencumbered, and facility-specific with distinct account numbers; operating reserves increase to 50% for providers that are insolvent, impaired, under administrative supervision, in hazardous financial condition, or in forbearance; office forbearance periods for impairment reduced from 180 to 90 days; providers borrowing from resident funds require prior OIR approval, are capped at 10% of available funds, and must repay within 12 months.

CCRC management company regulation: New certificate of authority required to operate as a CCRC management company, with applications requiring audited financial statements showing positive net worth, fingerprint-based background checks for key individuals, and detailed business plans; companies operating as of June 30, 2025 must obtain certificates by January 1, 2026 or face fines of $10,000 per day; management companies must file annual audited, quarterly unaudited, and potentially monthly financial statements.

CCRC resident protections: Resident representatives must receive 14 days' advance notice of governing body meetings on budgets and fee changes; charitable funds collected by residents may not be controlled by providers or management companies; continuing care contracts elevated to Class 2 preferred claims in receivership, not subordinate to secured claims; providers face liability for actual damages, attorney fees, and fee refunds for disclosure violations regardless of knowledge.

Health maintenance organization (HMO) oversight expansion: HMOs brought under risk-based capital requirements, administrative supervision provisions (ss. 624.80–624.87), service of process through the CFO, and annual/quarterly financial reporting requirements aligned with insurer standards; HMOs must file annual statements by March 1 and quarterly statements within 45 days of quarter end.

Corporate and administrative modernization: Triplicate filing requirements eliminated for domestic insurer articles of incorporation and related documents; emergency order publications streamlined to require only a notice with hyperlink rather than full text; the Florida Small Employer Health Reinsurance Program is repealed; reinsurance accreditation review costs replaced with a standardized filing fee; and OIR must contract with a state university to maintain a statewide hurricane mitigation verification database, with insurer electronic filing required beginning January 1, 2026.