Newly approved Florida legislation demands new insurer solvency requirements, disclosure requirements and requirements for individuals to disclose information about any affiliated company. Some of the more noteworthy changes include:
- Effective January 1, 2015, the ultimate controlling person of every Florida domiciled insurer subject to registration must also file an annual enterprise risk report on or before April 1.The report must identify and disclose, to the best of the ultimate controlling person’s knowledge and belief, all material risks within the insurance holding company system that could pose enterprise risk to the insurer.
- Each insurer doing business in Florida that reinsures through a captive insurance company as defined in s. 628.901, but without regard to domiciliary status, shall, in conjunction with the annual financial statement required under paragraph (1)(a) of s.628.901, file a report with the Florida Office of Insurance Regulation containing financial information specific to reinsurance assumed by each captive.
- Revised definition of a controlling person is one having 10 percent of the ownership or interest in an insurer. Previously, the “controlling person” needed to have 25 percent ownership or interest of an insurer.
- Clarification that production of documents does not waive the attorney-client or work-product privileges.
- Adopted new principles-based approach to evaluate a life insurance company’s reserves to ensure appropriate reserve levels are established for various life insurance products.
For more information on this topic, or to learn how Baker Tilly insurance industry specialists can help, contact our team.