FL H1399

Creates s. 624.44101, F.S., requiring property insurers to document that all fees, commissions, and payments to affiliates are fair and reasonable, with the Office of Insurance Regulation (OIR) reviewing audited financial statements annually; contracts with affiliates executed on or after July 1, 2026, must include automatic termination after 3 years, with extensions requiring OIR approval.

Creates s. 624.44102, F.S., prohibiting property insurers from declaring or distributing dividends to affiliates without prior OIR approval (determination required within 7 days) and requiring 30 days' notice before pledging capital or assets to affiliates for loans or financial obligations, which the OIR may reject.

Creates s. 624.44103, F.S., effective January 1, 2027, requiring affiliates of property insurers to register with the OIR before doing business in Florida, with annual renewal and no registration fees; operating without registration is a first-degree misdemeanor for a first offense and a third-degree felony for subsequent offenses.

Authorizes OIR to impose administrative fines of up to $10,000 per violation, suspend or revoke insurer licenses, and requires affiliates to refund any payments deemed unfair or in violation; during a Governor-declared state of emergency, OIR may restrict fund transfers from insurers to affiliates for up to 60 days.

Amends s. 627.062, F.S., to add affiliate profits, revenues, and investment income attributable to the insurer's Florida business as a factor in rate filing review, and allows property insurance rates to be deemed excessive if they fail to reflect those affiliate financials.