Florida Senate - 2025                              CS for SB 888
       
       
        
       By the Committee on Banking and Insurance; and Senator Avila
       
       
       
       
       
       597-02811-25                                           2025888c1
    1                        A bill to be entitled                      
    2         An act relating to consumer transparency for
    3         homeowners’ insurance; amending s. 627.0621, F.S.;
    4         requiring that certain rate filings with the Office of
    5         Insurance Regulation from residential property
    6         insurers include rate transparency reports; providing
    7         for acceptance or rejection by the office of such
    8         reports; providing construction; providing
    9         requirements for such reports; requiring insurers to
   10         provide such reports to consumers; requiring that the
   11         report indicate that it is preliminary and subject to
   12         modification by the office under certain
   13         circumstances; requiring the office to define terms
   14         used in such reports; requiring the office to
   15         establish and maintain a comprehensive resource center
   16         on its website; providing requirements for the
   17         resource center; specifying that certain information
   18         is not a trade secret and is not subject to certain
   19         public records exemptions; providing an effective
   20         date.
   21          
   22  Be It Enacted by the Legislature of the State of Florida:
   23  
   24         Section 1. Present subsection (2) of section 627.0621,
   25  Florida Statutes, is redesignated as subsection (3) and amended,
   26  and a new subsection (2) is added to that section, to read:
   27         627.0621 Transparency in rate regulation.—
   28         (2) RATE TRANSPARENCY REPORT.—
   29         (a) Beginning October 1, 2025, every rate filing requesting
   30  a rate change for residential property coverage from a property
   31  insurer must include a rate transparency report for acceptance
   32  for use or modification by the office. The office may accept the
   33  rate transparency report for filing, or if the office finds that
   34  the report fails to provide the required information in concise
   35  and plain language that aids consumers in their understanding of
   36  insurance, or finds the report to be misleading, the office must
   37  return the rate transparency report to the property insurer for
   38  modification. The office’s acceptance of the report for use or
   39  modification may not be deemed approval pursuant to s. 627.062.
   40  The report must be compiled in a uniform format prescribed by
   41  the commission and must include a graphical representation
   42  identifying a percentage breakdown of rating factors anticipated
   43  by the company, book, or program affected by the filing.
   44         (b) Along with an offer of coverage and upon renewal, an
   45  insurer must provide the corresponding copy of the rate
   46  transparency report for the consumers offered rate to aid
   47  consumers in their understanding of insurance. If the report has
   48  not been accepted for use or modified by the office, the report
   49  must indicate that it is preliminary and subject to modification
   50  by the office.
   51         (c) The rate transparency report must include the following
   52  categories of the book or program at the cumulative level:
   53         1. The percentage of the total rate factor associated with
   54  the cost of reinsurance.
   55         2. The percentage of the total rate factor associated with
   56  the cost of claims.
   57         3. The percentage of the total rate factor associated with
   58  the defense containment and costs.
   59         4. The percentage of the total rate factor associated with
   60  fees and commissions.
   61         5. The percentage of the rate factor associated with profit
   62  and contingency of the insurer.
   63         6. Any other categories deemed necessary by the office or
   64  commission.
   65  
   66  An estimated percentage of the influence of each listed factor
   67  provided must equal 100 percent.
   68         (d) The insurer shall provide the rate transparency report
   69  to the office upon the filing of a rate change with the office.
   70         (e) In addition to the categories required in paragraph
   71  (c), the rate transparency report must also include the
   72  following information:
   73         1. Any major adverse findings by the office for the
   74  previous 3 calendar years.
   75         2. Whether the insurer uses affiliated entities to perform
   76  functions of the insurer.
   77         3. Contact information, including a telephone number, hours
   78  of service, and e-mail address, for the Division of Consumer
   79  Services of the department.
   80         4. Contact information for the office.
   81         5. Address for the website for public access to rate filing
   82  and affiliate information outlined in subsection (3).
   83         6. Any changes in the total insured value from the last
   84  policy period.
   85         (f) The office shall define, in concise and plain language,
   86  any terms used in the rate transparency report to aid consumers
   87  in their understanding of insurance.
   88         (3)(2) WEBSITE FOR PUBLIC ACCESS TO RATE FILING
   89  INFORMATION.—
   90         (a) The office shall establish and maintain a comprehensive
   91  resource center on its website which uses concise and plain
   92  language to aid consumers in their understanding of insurance.
   93  The website must include substantive information on the current
   94  and historical dynamics of the market, data concerning the
   95  financial condition and market conduct of insurance companies,
   96  and insurance options available to consumers. At a minimum, the
   97  website must contain the following:
   98         1. Reports, using graphical information whenever possible,
   99  which outline information about the state of the market and
  100  adverse and positive trends affecting it.
  101         2. Tools that aid consumers in finding insurers, including,
  102  but not limited to, a listing of all companies actively doing
  103  business in this state which includes each company’s address,
  104  website, and all phone numbers and e-mail addresses to be used
  105  by insureds and applicants for coverage.
  106         3. Tools that aid consumers in selecting the coverages
  107  beneficial to them, including, but not limited to:
  108         a.Educational materials that explain the types of coverage
  109  in residential property insurance policies; the difference
  110  between replacement cost reimbursement and actual cash value
  111  reimbursement; a glossary of common terms used in policies; and
  112  a comparison of the coverage, terms, conditions, and exclusions
  113  contained in different homeowners and dwelling fire forms.
  114         b.Answers to commonly asked questions about residential
  115  property insurance coverage.
  116         4. Information about mitigation credits and the My Safe
  117  Florida Home Program, as well as other credits and discounts
  118  insurers may offer beyond wind mitigation.
  119         5. Access to the rate transparency report, annual
  120  statements, market conduct information, and other information
  121  related to each insurer.
  122         6. Information on the Citizens Property Insurance
  123  Corporation takeout process, the clearinghouse, and general
  124  information as reported by the office.
  125         7.Information on the claims process, including, but not
  126  limited to:
  127         a.Clear, step-by-step guidance on how to file a claim,
  128  what to expect during the claim process, and timelines for
  129  resolution of a claim.
  130         b.The obligations of insurers and insureds related to
  131  claim reporting, claim handling, communications regarding
  132  claims, claim investigations, claim decisions, and claim
  133  payments.
  134         c.For each insurer with active policies in this state, the
  135  means by which to report a claim, including any phone numbers,
  136  e-mail addresses, and website addresses, used for claim
  137  reporting.
  138         8.Information on consumer protection, including, but not
  139  limited to:
  140         a.The rights of insureds under Florida law related to
  141  obtaining coverage; coverage renewals, nonrenewals, and
  142  cancellations; and mandated offers of coverage.
  143         b.Information on how to file consumer complaints with the
  144  Division of Consumer Services in the Department of Financial
  145  Services.
  146         9.Information on news and updates relevant to consumers
  147  regarding this state’s residential property insurance market,
  148  including regulatory changes, information on insurers that enter
  149  or exit the market, and industry trends.
  150         10.Disaster preparedness information directly related to
  151  insurance, prepared by the office or by the Division of
  152  Emergency Management.
  153         11.(a) With respect to any residential property rate
  154  filing, the office shall provide the following information on a
  155  publicly accessible Internet website:
  156         a.1. The overall rate change requested by the insurer.
  157         b.2. The rate change approved by the office along with all
  158  of the actuary’s assumptions and recommendations forming the
  159  basis of the office’s decision.
  160         c.3. Certification by the office’s actuary that, based on
  161  the actuary’s knowledge, his or her recommendations are
  162  consistent with accepted actuarial principles.
  163         d. Whether the insurer uses affiliated entities to perform
  164  administrative, claims handling, or other functions of the
  165  insurer and, if so, the total percentage of direct written
  166  premium paid to the affiliated entities by the insurer in the
  167  preceding calendar year.
  168         (b) For any rate filing, regardless of whether or not the
  169  filing is subject to a public hearing, the office shall provide
  170  on its website a means for any policyholder who may be affected
  171  by a proposed rate change to send an e-mail regarding the
  172  proposed rate change. Such e-mail must be accessible to the
  173  actuary assigned to review the rate filing.
  174         (c) The statewide average requested rate change and final
  175  approved statewide average rate change within a filing is not a
  176  trade secret as defined in s. 688.002 or s. 812.081(1) and is
  177  not subject to the public records exemption for trade secrets
  178  provided in s. 119.0715 or s. 624.4213.
  179         (d) County rating examples submitted to the office through
  180  the rate collection system for the purposes of displaying rates
  181  on the office website are not a trade secret as defined in s.
  182  688.002 or s. 812.081(1) and are not subject to the public
  183  records exemption for trade secrets provided in s. 119.0715 or
  184  s. 624.4213.
  185         Section 2. This act shall take effect July 1, 2025.