FL H1429

Cybersecurity requirements established: The Office of Insurance Regulation and Financial Services Commission must adopt rules for cybersecurity of consumer nonpublic insurance data, aligned with but no more restrictive than the NAIC Insurance Data Security Model Law (October 2017), requiring all insurance entities to develop information security programs, investigate and report cybersecurity events, and copy the office on breach notifications sent to the Attorney General.

Rate transparency for residential property insurance: Beginning October 1, 2025, every residential property rate filing must include a rate transparency report with a graphical breakdown of rating factors (reinsurance costs, claims costs, fees/commissions, profit, etc.) totaling 100%, which insurers must provide to consumers at offer and renewal. The office must maintain a comprehensive online resource center with market reports, insurer-specific rate filings, affiliated entity disclosures, and mitigation information.

Rate filing restrictions: Personal residential property and motor vehicle insurers are prohibited from submitting more than one "use and file" filing affecting policyholders within a single policy period, and a full rate filing is required after two consecutive years of actuarial certification with no rate change.

Expanded insurer reporting requirements: Beginning March 1, 2026, residential property insurers must file annual reports detailing policy types, coverages, deductibles, mitigation discounts, and claims data; beginning January 1, 2026, private passenger auto insurers must file monthly reports on policies in force, premiums, and market trends; and insurers must electronically file uniform mitigation inspection forms within 15 business days of receipt into a new statewide database operated by a contracted state university.

Reciprocal insurer overhaul: Minimum surplus for assessable reciprocal insurers increased from $250,000 to $3 million; attorney-in-fact bond increased from $100,000 to $300,000; new frameworks created for subscriber contributions, subscriber savings accounts, and distributions (with subscribers' advisory committee having sole distribution authority subject to office approval); advisory committees must be at least two-thirds independent of the attorney in fact; and affiliate fee payments must be documented as fair and reasonable.

Continuing care facility financial safeguards strengthened: The "control" ownership threshold is lowered from 25% to 10%; minimum liquid reserve accounts must be separate, unencumbered, and facility-specific; operating reserves increase to 50% for impaired or financially distressed providers; the grace period for impaired providers is reduced from 180 to 90 days; and the office may order immediate transfer of up to 100% of reserve funds to department custody for impaired, insolvent, or non-compliant providers.

New management company regulation for continuing care facilities: Beginning January 1, 2026, CCRC management companies must hold a certificate of authority, with violations subject to $10,000 per day fines; applicants must submit audited financial statements, business plans, biographical data, fingerprints, and background checks; and management companies must file annual audited and quarterly unaudited financial statements.

Resident protections for continuing care communities: Providers are prohibited from borrowing resident funds for operations without prior office approval, limited to 10% of available funds with full repayment within 12 months; charitable/benevolent funds collected by residents may not be controlled by the provider; continuing care contracts are elevated to Class 2 preferred claims in receivership (superior to all claims except Class 1); and providers face liability for actual damages and attorney fees for incomplete or misleading disclosure documents.

Service of process and administrative modernization: The Chief Financial Officer is designated as agent for service of process for HMOs, with a new secure online portal as the sole method for accepting service; emergency order publication shifts to hyperlink-based notices; triplicate filing requirements for domestic insurer incorporation are eliminated; and HMOs are brought under administrative supervision provisions and updated financial reporting standards.

Elimination of outdated programs and provisions: The Florida Small Employer Health Reinsurance Program is repealed; the insurance exchange statute and limited reciprocal insurer authority are repealed; assignment agreement reporting requirements for property insurers are removed; and the former detailed annual experience reporting system covering multiple insurance lines is replaced with the new targeted reporting framework.