Florida SB 234: Working Floridians Tax Rebate Program

Bill Text

234 
Insurers’ Financial Transactions 
2025-10-17T05:53:59Z 
Requiring certain insurers to annually provide specified information to the Office of Insurance Regulation; requiring the office to contract annually with a specified entity to conduct a review of certain transactions; prohibiting an insurer from engaging in certain transactions with affiliates; prohibiting an insurer from declaring or paying dividends to shareholders or issuing executive bonuses under certain circumstances, etc. 
Original Filed Version 
2026 
S 
2026-07-01T00:00:00Z 
GB 
General Bill 
__ 

 Florida Senate - 2026 SB 234 

 By Senator Smith 

 17-00289A-26 2026234__ 
 1 A bill to be entitled 
 2 An act relating to insurers’ financial transactions; 
 3 amending s. 624.424, F.S.; requiring certain insurers 
 4 to annually provide specified information to the 
 5 Office of Insurance Regulation; defining the term 
 6 “managing general agent”; requiring the office to 
 7 contract annually with a specified entity to conduct a 
 8 review of certain transactions; specifying a 
 9 requirement of such contract; requiring insurers to 
 10 post certain information on their websites; specifying 
 11 that certain information is not considered a trade 
 12 secret and is subject to public disclosure; creating 
 13 s. 624.4244, F.S.; prohibiting an insurer from 
 14 engaging in certain transactions with affiliates; 
 15 specifying prohibited transactions; prohibiting an 
 16 insurer from declaring or paying dividends to 
 17 shareholders or issuing executive bonuses under 
 18 certain circumstances; providing an effective date. 
 19 
 20 Be It Enacted by the Legislature of the State of Florida: 
 21 
 22 Section 1. Subsection (13) of section 624.424, Florida 
 23 Statutes, is amended to read: 
 24 624.424 Annual statement and other information.— 
 25 (13)(a) Each insurer doing business in this state which 
 26 pays a fee, commission, or other financial consideration or 
 27 payment to any affiliate directly or indirectly shall annually 
 28 is required upon request to provide to the office all of the 
 29 following any information: the office deems necessary. The fee, 
 30 commission, or other financial consideration or payment to any 
 31 affiliate must be fair and reasonable. In determining whether 
 32 the fee, commission, or other financial consideration or payment 
 33 is fair and reasonable, the office shall consider, among other 
 34 things, the actual cost of the service being provided. 
 35 1. A description and cost analysis of each service provided 
 36 by an affiliate, including the actual cost of the service, the 
 37 amount charged to the insurer, the basis used to determine the 
 38 amount charged to the insurer, and any profit margin included in 
 39 the amount charged. 
 40 2. A benchmarking study demonstrating that the fee, 
 41 commission, or other financial consideration is comparable to 
 42 the rates ordinarily payable to vendors independent of and 
 43 unaffiliated with the insurer. 
 44 3. The total amount of affiliate fees, commissions, or 
 45 other financial considerations for the reporting period, whether 
 46 paid by the insurer or forgiven by the affiliate, reported both 
 47 in dollars and as a percentage of the insurer’s gross written 
 48 premiums for that period. 
 49 4. A certification that the percentage reported in 
 50 subparagraph 3. does not exceed 20 percent, or a certification 
 51 that any amount exceeding 20 percent is necessary for the 
 52 insurer’s operations, including the specific reasons why such 
 53 fees, commissions, or other financial considerations are 
 54 necessary. If the percentage reported in subparagraph 3. exceeds 
 55 20 percent, the insurer must also report the total amount of any 
 56 dividends and officer and director compensation paid during the 
 57 same period. 
 58 (b) As used in this paragraph, the term “managing general 
 59 agent” has the same meaning as provided in s. 626.015. Each 
 60 insurer doing business in this state which pays a fee, 
 61 commission, or other financial consideration or payment to a 
 62 managing general agent shall annually provide to the office all 
 63 of the following information: 
 64 1. The total amount of managing general agent fees, 
 65 commissions, or other financial considerations for the reporting 
 66 period, whether paid by the insurer or forgiven by the managing 
 67 general agent, reported both in dollars and as a percentage of 
 68 the insurer’s gross written premiums for that period. 
 69 2. A certification that the percentage reported under 
 70 subparagraph 1. does not exceed 20 percent, or a certification 
 71 that any amount exceeding 20 percent is necessary for the 
 72 insurer’s operations, including the specific reasons why such 
 73 fees, commissions, or other financial considerations are 
 74 necessary. If the percentage reported in subparagraph 1. exceeds 
 75 20 percent, the insurer must also report the total amount of any