Insurance bill tightens oversight of insurer–affiliate transactions, authorizes OIR reviews

Representative Burfield explained HB 13199 seeks to address gaps identified in an Office of Insurance Regulation (OIR) affiliate-fee analysis by increasing regulatory oversight of financial transactions between property insurers and their affiliates. The bill would require insurers to provide documentation demonstrating payments to affiliates are fair and reasonable, give OIR factors to determine fairness, require affiliate registration before doing business in Florida, require termination clauses in agreements (reviewed after three years), and authorize OIR to require refunds or prohibit arrangements deemed not in the insurer’s best interest.

Christine Ashburn from the National Association of Mutual Insurance Companies registered opposition; Amina Siphonic representing Florida for All waived in support. Representative Burfield said the bill responds to homeowners’ insurance cost pressures and urged a 'yes' vote.

Representative Chambliss, who serves on insurance-related committees, praised the bill as a considered action on a complex issue. The committee voted to report the bill favorably.