FL S0234

Requires insurers paying fees or commissions to affiliates to annually report detailed cost analyses, benchmarking studies comparing rates to unaffiliated vendors, and total affiliate payments as both dollar amounts and percentage of gross written premiums

Mandates certification that affiliate fees do not exceed 20% of gross written premiums, or if exceeded, requires justification and disclosure of dividends and officer/director compensation paid during the same period

Extends similar reporting requirements to payments made to managing general agents, including certification regarding the 20% threshold

Requires the Office of Insurance Regulation to contract annually with an independent third-party entity to review affiliate and managing general agent transactions, with a report due by February 1 identifying transactions that are not fair and reasonable

Prohibits insurers from engaging in transactions with affiliates that misrepresent financial condition, including fee forgiveness to manipulate financial position, and bars dividend payments to shareholders or executive bonuses when insurers are in hazardous financial condition or materially affected by high affiliate fees