"It found that during that period, 19 insurers based in Florida or surrounding regions funneled billions of dollars in fees to holding companies and other affiliates that were not "fair and reasonable," as defined by various industry rules. The insurers were not identified in the study. The study showed that insurers paid investors $680 million in dividends and accepted $951 million in capital contributions from affiliates, clouding regulators' abilities to determine insurers' actual financial health."
"Supporters say the measure, if enacted by the full Legislature, will save policyholders money by preventing insurers from paying excessive fees. The bill, sponsored by Pinellas County Republican Kimberly Berfield, addresses findings and recommendations in a study that surfaced last year and was later investigated by the House Insurance and Banking Subcommittee. House Bill 1399 would require insurers to submit records to the Office of Insurance Regulation every three years "demonstrating that all fees, commissions, or payments to affiliates are fair and reasonable.""
House Bill 1399 increases regulatory oversight of property insurers' payments to parent and affiliate companies to prevent the use of affiliate fees to obscure profits and justify rate increases. A study covering 2017 to 2019 found 19 insurers funneled billions in fees to holding companies and affiliates deemed not "fair and reasonable," and showed insurers paid $680 million in dividends while accepting $951 million in affiliate capital contributions that clouded regulators' abilities to assess financial health. The bill would require insurers to submit records every three years to the Office of Insurance Regulation demonstrating affiliate payments are fair and reasonable. A House committee advanced the bill unanimously.
Read at Sun Sentinel
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