S 1664

Florida Senate - 2026  SB 1664
By Senator Sharief
35-00303A-26  20261664__
1A bill to be entitled
2An act relating to property insurer financial strength
3ratings; amending s. 624.315, F.S.; providing
4definitions; requiring certain annual insurance
5reports prepared by the Office of Insurance Regulation
6for the Legislature and the Governor to include the
7financial strength ratings of property insurers
8against which delinquency and similar proceedings were
9instituted; requiring the office to maintain and make
10available upon request information relating to
11financial strength ratings of property insurers;
12providing an effective date.
13
14Be It Enacted by the Legislature of the State of Florida:
15
16Section 1. Present subsections (1) through (5) of section
17624.315, Florida Statutes, are redesignated as subsections (2)
18through (6), respectively, a new subsection (1) is added to that
19section, paragraph (p) is added to present subsection (2) of
20that section, and paragraph (c) of present subsection (1) and
21present subsection (5) of that section are amended, to read:
22624.315 Annual reports; quarterly reports.—
23(1)As used in this section, the term:
24(a)“Financial strength rating” means an objective
25evaluation of the assets, liabilities, net worth, financial
26health, performance, and risk of a property insurer as
27determined by an independent rating agency.
28(b)“Independent rating agency” means an entity that meets
29all of the following requirements:
301.Issues unbiased and objective financial strength ratings
31of insurers without the consent of the insurer.
322.Is not paid for ratings by the rated insurers, directly
33or indirectly, whether in cash or other forms of payment.
343.Does not permit any rated insurer to influence the
35ratings of that insurer.
364.Is independent and free from outside control or
37influence and can issue ratings objectively, without fear of
38reprisals or loss of business.
395.May begin, suspend, or end rating an insurer at its
40discretion.
416.Is not owned or controlled, in whole or in part, by any
42insurer and does not enter into or maintain any potentially
43related business relationships with rated insurers.
44(2)[(1)] As early as reasonably possible, the office, with
45such assistance from the department as requested, shall annually
46prepare a report to the Speaker and Minority Leader of the House
47of Representatives, the President and Minority Leader of the
48Senate, the chairs of the legislative committees with
49jurisdiction over matters of insurance, and the Governor
50showing, with respect to the preceding calendar year:
51(c) Names of insurers against which delinquency or similar
52proceedings were instituted. For property insurers for which the
53delinquency or similar proceedings were instituted, the annual
54report must also include the date that each insurer was deemed
55impaired of capital or surplus, as the terms impairment of
56capital and impairment of surplus are defined in s. 631.011, or
57insolvent, as the term insolvency is defined in s. 631.011; the
58financial strength ratings of the insurer issued by an
59independent rating agency for each of the previous 8 fiscal
60quarters before the delinquency or similar proceedings; a
61concise statement of the circumstances that led to each
62insurer’s delinquency; a summary of the actions taken by the
63insurer and the office to avoid delinquency; and the results or
64status of each such proceeding.
65(3)[(2)] The office shall maintain the following information
66and make such information available upon request:
67(p)The financial strength rating issued to each property
68insurer by an independent rating agency each calendar quarter
69during the reporting period, including the changes in ratings
70from quarter to quarter, the number of downgrades in ratings
71which occurred during the reporting period, the number of
72downgraded companies that were subsequently upgraded during the
73reporting period, and the number of downgraded companies that
74were subject to delinquency or similar proceedings.
75(6)[(5)] When aggregate information includes information
76asserted as trade secret information, the office may include the
77trade secret information in the report required under subsection
78(2) [(1)] or may make the trade secret information available under
79subsection (3) [(2)] unless the trade secret information can be
80individually extrapolated, in which case the trade secret
81information remains protected as provided under s. 624.4213.
82Section 2. This act shall take effect July 1, 2026.