House committee advances bill tightening oversight of property‑insurer affiliate transactions

Representative Webb Burfield told the Insurance & Banking Subcommittee HB 1399 would increase regulatory oversight of financial transactions between property insurers and their affiliates and close gaps identified in a prior affiliated fee analysis. "The bill increases regulatory oversight and financial transactions between property insurers and their affiliates," Burfield said, describing requirements that insurers demonstrate payments to affiliates are "fair and reasonable" and that affiliates register with the Office of Insurance Regulation.

The bill would require agreements with affiliates to include termination clauses and prevent them from running longer than three years without OIR review; insurers must notify OIR at least 30 days before pledging capital or assets to an affiliate, and OIR may prohibit arrangements it finds not in the insurer's best interest. Burfield said OIR could order affiliates to refund improper transfers to stabilize an insurer and help avoid higher premiums for policyholders.

Members pressed details on how refunds would reach insured policyholders. Representative Henson asked whether refunds would "trickle down to the property insured," and Burfield replied that OIR ordering a refund would restore an insurer's reserves and could help avoid higher rates, but does not necessarily create a direct payment channel to individual insureds. Representative Overdorf cautioned that added oversight could increase administrative costs and that some compliance costs might be passed to consumers.

Vice Chair Cassell and several members framed the measure as a transparency and consumer‑protection bill; Cassell said defining "fair and reasonable" in statute would be ‘‘life changing for consumers’’ and noted enforcement tools in the bill such as the ability to freeze funds and impose civil and criminal sanctions. Two groups, the Florida Insurance Council and APCIA, waived opposition without speaking.

After debate and closing remarks from Burfield, the committee clerk called the roll and HB 1399 was reported favorably to the next committee. The roll call was recorded as affirmative among members present; Representative Alvarez was excused.