Florida Senate - 2025 SB 1740 By Senator Ingoglia 11-01248B-25 20251740__ Page 1 of 16 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to insurance; amending s. 215.5586, 2 F.S.; revising legislative intent; specifying that 3 hurricane mitigation grants funded through the My Safe 4 Florida Home Program may be awarded only under certain 5 circumstances; requiring the Department of Financial 6 Services to require that certain mitigation 7 improvements be made as a condition of reimbursing a 8 homeowner approved for a grant; amending ss. 624.407 9 and 624.408, F.S.; revising the surplus required for 10 certain insurers applying for their original 11 certificates of authority and to maintain their 12 certificates of authority, respectively; amending s. 13 624.4073, F.S.; specifying prohibitions for persons 14 who were officers or directors of an insolvent 15 insurer, attorneys in fact of a reciprocal insurer, or 16 officers or directors of an attorney in fact of a 17 reciprocal insurer; providing applicability; requiring 18 the Office of Insurance Regulation to prohibit 19 insurers or reciprocal insurers from paying any 20 compensation to certain persons for certain violations 21 until a specified time; providing an effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25

Section

Section 215.5586, Florida Statutes, is amended 26 to read: 27 215.5586 My Safe Florida Home Program.— There is 28 established within the Department of Financial Services the My 29

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 2 of 16 CODING: Words stricken are deletions; words underlined are additions. Safe Florida Home Program. The department shall provide fiscal 30 accountability, contract management, and strategic leadership 31 for the program, consistent with this section. This

section does 32 not create an entitlement for property owners or obligate the 33 state in any way to fund the inspection or retrofitting of 34 residential property in this state. Implementation of this 35 program is subject to annual legislative appropriations.

It is 36 the intent of the Legislature that, subject to the availability 37 of funds, the My Safe Florida Home Program provide licensed 38 inspectors to perform hurricane mitigation inspections of 39 eligible homes and grants to fund hurricane mitigation projects 40 that result in property insurance credits, discounts, or other 41 rate differentials on those homes.

The department shall 42 implement the program in such a manner that the total amount of 43 funding requested by accepted applications, whether for 44 inspections, grants, or other services or assistance, does not 45 exceed the total amount of available funds. If, after 46 applications are processed and approved, funds remain available, 47 the department may accept applications up to the available 48 amount. The program shall develop and implement a comprehensive 49 and coordinated approach for hurricane damage mitigation 50 pursuant to the requirements provided in this section. 51

(1) HURRICANE MITIGATION INSPECTIONS.— 52 (

a) To be eligible for a hurricane mitigation inspection 53 under the program: 54 1. A home must be a single-family, detached residential 55 property or a townhouse as defined in s. 481.203; 56 2. A home must be site-built and owner-occupied; and 57 3. The homeowner must have been granted a homestead 58

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 3 of 16 CODING: Words stricken are deletions; words underlined are additions. exemption on the home under

chapter 196. 59 (b)1. An application for a hurricane mitigation inspection 60 must contain a signed or electronically verified statement made 61 under penalty of perjury that the applicant has submitted only 62 one inspection application on the home or that the application 63 is allowed under subparagraph 2., and the application must have 64 documents attached which demonstrate that the applicant meets 65 the requirements of paragraph (a). 66 2. An applicant may submit a subsequent hurricane 67 mitigation inspection application for the same home only if: 68 a.

The original hurricane mitigation inspection application 69 has been denied or withdrawn because of errors or omissions in 70 the application; 71 b. The original hurricane mitigation inspection application 72 was denied or withdrawn because the home did not meet the 73 eligibility criteria for an inspection at the time of the 74 previous application, and the homeowner reasonably believes the 75 home now is eligible for an inspection; or 76 c.

The program’s eligibility requirements for an inspection 77 have changed since the original application date, and the 78 applicant reasonably believes the home is eligible under the new 79 requirements. 80 (

c) An applicant meeting the requirements of paragraph (a) 81 may receive an inspection of a home under the program without 82 being eligible for a grant under subsection (2) or applying for 83 such grant. 84 (

d) Licensed inspectors are to provide home inspections of 85 eligible homes to determine what mitigation measures are needed, 86 what insurance premium discounts may be available, and what 87

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 4 of 16 CODING: Words stricken are deletions; words underlined are additions. improvements to existing residential properties are needed to 88 reduce the property’s vulnerability to hurricane damage. An 89 inspector may inspect a townhouse as defined in s. 481.203 to 90 determine if opening protection mitigation as listed in 91 subparagraph (2)(e)1. would provide improvements to mitigate 92 hurricane damage. 93 (

e) The department shall contract with wind certification 94 entities to provide hurricane mitigation inspections. The 95 inspections provided to homeowners, at a minimum, must include: 96 1. A home inspection and report that summarizes the results 97 and identifies recommended improvements a homeowner may take to 98 mitigate hurricane damage. 99 2. A range of cost estimates regarding the recommended 100 mitigation improvements. 101 3. Information regarding estimated premium discounts, 102 correlated to the current mitigation features and the 103 recommended mitigation improvements identified by the 104 inspection. 105 (

f) To qualify for selection by the department as a wind 106 certification entity to provide hurricane mitigation 107 inspections, the entity must, at a minimum, meet the following 108 requirements: 109 1. Use hurricane mitigation inspectors who are licensed or 110 certified as: 111 a. A building inspector under s. 468.607; 112 b. A general, building, or residential contractor under s. 113 489.111; 114 c. A professional engineer under s. 471.015; 115 d. A professional architect under s. 481.213; or 116

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 5 of 16 CODING: Words stricken are deletions; words underlined are additions. e. A home inspector under s. 468.8314 and who have 117 completed at least 3 hours of hurricane mitigation training 118 approved by the Construction Industry Licensing Board, which 119 training must include hurricane mitigation techniques, 120 compliance with the uniform mitigation verification form, and 121 completion of a proficiency exam. 122 2. Use hurricane mitigation inspectors who also have 123 undergone drug testing and a background screening.

The 124 department may conduct criminal record checks of inspectors used 125 by wind certification entities. Inspectors must submit a set of 126 fingerprints to the department for state and national criminal 127 history checks and must pay the fingerprint processing fee set 128 forth in s. 624.501. The fingerprints must be sent by the 129 department to the Department of Law Enforcement and forwarded to 130 the Federal Bureau of Investigation for processing. The results 131 must be returned to the department for screening.

The 132 fingerprints must be taken by a law enforcement agency, 133 designated examination center, or other department-approved 134 entity. 135 3. Provide a quality assurance program including a 136 reinspection component. 137

(2) HURRICANE MITIGATION GRANTS.—Financial grants shall be 138 used by homeowners to make improvements recommended by an 139 inspection which increase resistance to hurricane damage. 140 (

a) A homeowner is eligible for a hurricane mitigation 141 grant if all of the following criteria are met: 142 1. The home must be eligible for an inspection under 143 subsection (1). 144 2. The home must be a dwelling with an insured value of 145

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 6 of 16 CODING: Words stricken are deletions; words underlined are additions. $700,000 or less. Homeowners who are low-income persons, as 146 defined in s. 420.0004(11), are exempt from this requirement. 147 3. The home must undergo an acceptable hurricane mitigation 148 inspection as provided in subsection (1). 149 4. The building permit application for initial construction 150 of the home must have been made before January 1, 2008. 151 5.

The homeowner must agree to make his or her home 152 available for inspection once a mitigation project is completed. 153 6. The homeowner must agree to provide to the department 154 information received from the homeowner’s insurer identifying 155 the discounts realized by the homeowner because of the 156 mitigation improvements funded through the program. 157 (b)1.

An application for a grant must contain a signed or 158 electronically verified statement made under penalty of perjury 159 that the applicant has submitted only one grant application or 160 that the application is allowed under subparagraph 2., and the 161 application must have documents attached demonstrating that the 162 applicant meets the requirements of paragraph (a). 163 2. An applicant may submit a subsequent grant application 164 if: 165 a. The original grant application was denied or withdrawn 166 because the application contained errors or omissions; 167 b.

The original grant application was denied or withdrawn 168 because the home did not meet the eligibility criteria for a 169 grant at the time of the previous application, and the homeowner 170 reasonably believes that the home now is eligible for a grant; 171 or 172 c. The program’s eligibility requirements for a grant have 173 changed since the original application date, and the applicant 174

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 7 of 16 CODING: Words stricken are deletions; words underlined are additions. reasonably believes that he or she is an eligible homeowner 175 under the new requirements. 176 3. A grant application must include a statement from the 177 homeowner which contains the name and state license number of 178 the contractor that the homeowner acknowledges as the intended 179 contractor for the mitigation work. The program must 180 electronically verify that the contractor’s state license number 181 is accurate and up to date before grant approval. 182 (

c) All grants must be matched on the basis of $1 provided 183 by the applicant for $2 provided by the state up to a maximum 184 state contribution of $10,000 toward the actual cost of the 185 mitigation project, except as provided in paragraph (h). 186 (

d) All hurricane mitigation performed under the program 187 must be based upon the securing of all required local permits 188 and inspections and must be performed by properly licensed 189 contractors. 190 (

e) When recommended by a hurricane mitigation inspection, 191 grants for eligible homes may be used for the following 192 improvements: 193 1. Opening protection, including exterior doors, garage 194 doors, windows, and skylights. 195 2. Reinforcing roof-to-wall connections. 196 3. Improving the strength of roof-deck attachments. 197 4. Secondary water resistance for roof. 198 (

f) When recommended by a hurricane mitigation inspection, 199 grants for townhouses, as defined in s. 481.203, may only be 200 used for opening protection. 201 (

g) A grant may be awarded only for each mitigation 202 improvement that, when applied to the home, will result in a 203

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 8 of 16 CODING: Words stricken are deletions; words underlined are additions. property insurance mitigation credit, discount, or other rate 204 differential. If necessary for the home to qualify for a 205 mitigation credit, discount, or other rate differential, the 206 department must may require that improvements be made to all 207 openings, including exterior doors, garage doors, windows, and 208 skylights, as a condition of reimbursing a homeowner approved 209 for a grant. The department may adopt, by rule, the maximum 210 grant allowances for any improvement allowable under paragraph 211 (

e) or paragraph (f). 212 (

h) Low-income homeowners, as defined in s. 420.0004(11), 213 who otherwise meet the applicable requirements of this 214 subsection are eligible for a grant of up to $10,000 and are not 215 required to provide a matching amount to receive the grant. 216 (i)1.

The department shall develop a process that ensures 217 the most efficient means to collect and verify inspection 218 applications and grant applications to determine eligibility. 219 The department may direct hurricane mitigation inspectors to 220 collect and verify grant application information or use the 221 Internet or other electronic means to collect information and 222 determine eligibility. 223 2. The department shall prioritize the review and approval 224 of such inspection applications and grant applications in the 225 following order: 226 a.

First, applications from low-income persons, as defined 227 in s. 420.0004, who are at least 60 years old; 228 b. Second, applications from all other low-income persons, 229 as defined in s. 420.0004; 230 c. Third, applications from moderate-income persons, as 231 defined in s. 420.0004, who are at least 60 years old; 232

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 9 of 16 CODING: Words stricken are deletions; words underlined are additions. d. Fourth, applications from all other moderate-income 233 persons, as defined in s. 420.0004; and 234 e. Last, all other applications. 235 3. The department shall start accepting inspection 236 applications and grant applications no earlier than the 237 effective date of a legislative appropriation funding 238 inspections and grants, as follows: 239 a. Initially, from applicants prioritized under sub-240 subparagraph 2.a.; 241 b.

From applicants prioritized under sub-subparagraph 2.b., 242 beginning 15 days after the program initially starts accepting 243 applications; 244 c. From applicants prioritized under sub-subparagraph 2.c., 245 beginning 30 days after the program initially starts accepting 246 applications; 247 d. From applicants described in sub-subparagraph 2.d., 248 beginning 45 days after the program initially starts accepting 249 applications; and 250 e. From all other applicants, beginning 60 days after the 251 program initially starts accepting applications. 252 4.

The program may accept a certification directly from a 253 low-income homeowner or moderate-income homeowner who meets the 254 requirements of s. 420.0004(11) or (12), respectively, if the 255 homeowner provides such certification in a signed or 256 electronically verified statement made under penalty of perjury. 257 (

j) A homeowner who receives a grant shall finalize 258 construction and request a final inspection, or request an 259 extension for an additional 6 months, within 1 year after grant 260 approval. If a homeowner fails to comply with this paragraph, 261

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 10 of 16 CODING: Words stricken are deletions; words underlined are additions. his or her application is deemed abandoned and the grant money 262 reverts to the department. 263

(3) REQUESTS FOR INFORMATION.—The department may request 264 that an applicant provide additional information. An application 265 is deemed withdrawn by the applicant if the department does not 266 receive a response to its request for additional information 267 within 60 days after the notification of any apparent error or 268 omission. 269

(4) EDUCATION, CONSUMER AWARENESS, AND OUTREACH.— 270 (

a) The department may undertake a statewide multimedia 271 public outreach and advertising campaign to inform consumers of 272 the availability and benefits of hurricane inspections and of 273 the safety and financial benefits of residential hurricane 274 damage mitigation. The department may seek out and use local, 275 state, federal, and private funds to support the campaign. 276 (

b) The program may develop brochures for distribution to 277 Citizens Property Insurance Corporation and other licensed 278 entities or nonprofits that work with the department to educate 279 the public on the benefits of the program. Citizens Property 280 Insurance Corporation must distribute the brochure to 281 policyholders of the corporation each year the program is 282 funded. The brochures may be made available electronically. 283

(5) FUNDING.—The department may seek out and leverage 284 local, state, federal, or private funds to enhance the financial 285 resources of the program. 286

(6) RULES.—The department shall adopt rules pursuant to ss. 287 120.536(1) and 120.54 to govern the program; implement the 288 provisions of this section; including rules governing hurricane 289 mitigation inspections and grants, mitigation contractors, and 290

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 11 of 16 CODING: Words stricken are deletions; words underlined are additions. training of inspectors and contractors; and carry out the duties 291 of the department under this section. 292

(7) HURRICANE MITIGATION INSPECTOR LIST.—The department 293 shall develop and maintain as a public record a current list of 294 hurricane mitigation inspectors authorized to conduct hurricane 295 mitigation inspections pursuant to this section. 296

(8) CONTRACT MANAGEMENT.— 297 (

a) The department may contract with third parties for 298 grants management, inspection services, contractor services for 299 low-income homeowners, information technology, educational 300 outreach, and auditing services. Such contracts are considered 301 direct costs of the program and are not subject to 302 administrative cost limits. The department shall contract with 303 providers that have a demonstrated record of successful business 304 operations in areas directly related to the services to be 305 provided and shall ensure the highest accountability for use of 306 state funds, consistent with this section. 307 (

b) The department shall implement a quality assurance and 308 reinspection program that determines whether initial inspections 309 and home improvements are completed in a manner consistent with 310 the intent of the program. The department may use valid random 311 sampling in order to perform the quality assurance portion of 312 the program. 313

(9) INTENT.—It is the intent of the Legislature that grants 314 made to residential property owners under this

section shall be 315 considered disaster-relief assistance within the meaning of s. 316 139 of the Internal Revenue Code of 1986, as amended. 317

(10) REPORTS.—The department shall make an annual report on 318 the activities of the program that shall account for the use of 319

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 12 of 16 CODING: Words stricken are deletions; words underlined are additions. state funds and indicate the number of inspections requested, 320 the number of inspections performed, the number of grant 321 applications received, the number and value of grants approved, 322 and the estimated average annual amount of insurance premium 323 discounts and total estimated annual amount of insurance premium 324 discounts homeowners received from insurers as a result of 325 mitigation funded through the program.

The report must be 326 delivered to the President of the Senate and the Speaker of the 327 House of Representatives by February 1 of each year. 328

Section 2. Subsection (1) of

section 624.407, Florida 329 Statutes, is amended to read: 330 624.407 Surplus required; new insurers.— 331

(1) To receive authority to transact any one kind or 332 combinations of kinds of insurance, as defined in

part V of this 333 chapter, an insurer applying for its original certificate of 334 authority in this state shall possess surplus as to 335 policyholders at least the greater of: 336 (

a) For a property and casualty insurer, $5 million, or 337 $2.5 million for any other insurer; 338 (

b) For life insurers, 4 percent of the insurer’s total 339 liabilities; 340 (

c) For life and health insurers, 4 percent of the 341 insurer’s total liabilities, plus 6 percent of the insurer’s 342 liabilities relative to health insurance; 343 (

d) For all insurers other than life insurers and life and 344 health insurers, 10 percent of the insurer’s total liabilities; 345 (

e) Notwithstanding paragraph (

a) or paragraph (d), for a 346 domestic insurer that transacts residential property insurance 347 and is: 348

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 13 of 16 CODING: Words stricken are deletions; words underlined are additions. 1. Not a wholly owned subsidiary of an insurer domiciled in 349 any other state, $35 $15 million. 350 2. A wholly owned subsidiary of an insurer domiciled in any 351 other state, $50 million; 352 (

f) Notwithstanding paragraphs (a), (d), and (e), for a 353 domestic insurer that only transacts limited sinkhole coverage 354 insurance for personal lines residential property pursuant to s. 355 627.7151, $10 $7.5 million; or 356 (

g) Notwithstanding paragraphs (a), (d), and (e), for an 357 insurer that only transacts residential property insurance in 358 the form of renter’s insurance, tenant’s coverage, cooperative 359 unit owner insurance, or any combination thereof, $12.5 $10 360 million. 361

Section

Section 624.4073, Florida Statutes, is amended 362 to read: 363 624.4073 Officers and directors or attorneys in fact of 364 insolvent insurers.— 365

(1) Any person who was an officer or director of an insurer 366 doing business in this state and who served in that capacity 367 within the 2-year period before the date the insurer became 368 insolvent, for any insolvency that occurs on or after July 1, 369 2002, but before July 1, 2025, may not thereafter serve as an 370 officer or director of an insurer authorized in this state or 371 have direct or indirect control over the selection or 372 appointment of an officer or director through contract, trust, 373 or by operation of law. 374

(2) Any person who was an officer or director of an insurer 375 doing business in this state, was the attorney in fact of a 376 reciprocal insurer doing business in this state, or was an 377

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 14 of 16 CODING: Words stricken are deletions; words underlined are additions. officer or director of an attorney in fact of a reciprocal 378 insurer doing business in this state and who served in that 379 capacity within the 5-year period before the date such insurer 380 or reciprocal insurer became insolvent, for any insolvency that 381 occurs on or after July 1, 2025, may not thereafter do any of 382 the following: 383 (

a) Serve as an officer or a director of an insurer 384 authorized in this state. 385 (

b) Serve as an officer or a director of a managing general 386 agent of an insurer authorized in this state. 387 (

c) Serve as an attorney in fact or as an officer or a 388 director of the attorney in fact of a reciprocal insurer 389 authorized in this state. 390 (

d) Serve as an officer or a director of an affiliate of an 391 insurer authorized in this state which provides services to such 392 insurer. 393 (

e) Exercise direct or indirect control through contract, 394 trust, or by operation of law over the selection or appointment 395 of any position specified in paragraphs (a)-(d), unless the 396 officer or director demonstrates that his or her personal 397 actions or omissions were not a significant contributing cause 398 to the insolvency. 399 (3)(

a) The prohibitions in subsections (1) and (2) do not 400 apply if the officer, director, or attorney in fact 401 demonstrates, and the office determines, that his or her 402 personal actions or omissions were not a significant 403 contributing cause to the insolvency. 404 (

b) For any violation of paragraph (2)(b), paragraph 405 (2)(c), or paragraph (2)(d), the office shall prohibit an 406

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 15 of 16 CODING: Words stricken are deletions; words underlined are additions. insurer or reciprocal insurer authorized in this state from 407 paying any compensation to a managing general agent, affiliate, 408 or attorney in fact that has an officer or director or is an 409 attorney in fact that engaged in such violation until the office 410 determines the violation has been remedied. 411

Section 4. Paragraphs (

f) through (

i) of subsection (1) of 412

section 624.408, Florida Statutes, are amended to read: 413 624.408 Surplus required; current insurers.— 414

(1) To maintain a certificate of authority to transact any 415 one kind or combinations of kinds of insurance, as defined in 416

part V of this chapter, an insurer in this state must at all 417 times maintain surplus as to policyholders at least the greater 418 of: 419 (

f) For residential property insurers not holding a 420 certificate of authority before July 1, 2025 2011, $35 $15 421 million. 422 (

g) For residential property insurers holding a certificate 423 of authority before July 1, 2025 2011, and until June 30, 2030 424 2016, $15 $5 million; on or after July 1, 2030 2016, and until 425 June 30, 2035 2021, $25 $10 million; on or after July 1, 2035 426 2021, $35 $15 million. 427 (

h) Notwithstanding paragraphs (e), (f), and (g), for a 428 domestic insurer that only transacts limited sinkhole coverage 429 insurance for personal lines residential property pursuant to s. 430 627.7151:, $7.5 million. 431 1. For such an insurer that does not hold a certificate of 432 authority before July 1, 2025, $10 million. 433 2. For such an insurer holding a certificate of authority 434 before July 1, 2025, and until June 30, 2030, $7.5 million; on 435

Florida Senate - 2025 SB 1740 11-01248B-25 20251740__ Page 16 of 16 CODING: Words stricken are deletions; words underlined are additions. or after July 1, 2030, and until June 30, 2035, $8.75 million; 436 on or after July 1, 2035, $10 million. 437 (

i) Notwithstanding paragraphs (a), (d), and (e), for an 438 insurer that only transacts residential property insurance in 439 the form of renter’s insurance, tenant’s coverage, cooperative 440 unit owner insurance, or any combination thereof:, $10 million. 441 1. For such an insurer that does not hold a certificate of 442 authority before July 1, 2025, $12.5 million. 443 2. For such an insurer holding a certificate of authority 444 before July 1, 2025, and until June 30, 2030, $10 million; on or 445 after July 1, 2030, and until June 30, 2035, $11.25 million; on 446 or after July 1, 2035, $12.5 million. 447 448 The office may reduce the surplus requirement in paragraphs (f) 449 and (

g) if the insurer is not writing new business, has premiums 450 in force of less than $1 million per year in residential 451 property insurance, or is a mutual insurance company. 452

Section 5. This act shall take effect July 1, 2025. 453