The Florida House Commerce Committee’s Insurance Subcommittee has advanced a set of legislative bills designed to significantly alter the state’s insurance framework. Among these is a notable proposal to repeal the no-fault automobile insurance system, which has been a staple in Florida for decades. Slated for potential repeal on July 1, 2026, House Bill 1181 and its Senate equivalent would mandate that drivers carry bodily injury liability insurance. The new minimum coverage limits would be established at $25,000 per individual, $50,000 per occurrence, and $10,000 for property damage.
However, the proposed repeal faces opposition from several quarters, including industry groups and Florida Governor Ron DeSantis. Critics, such as Michael Carlson, President of the Personal Insurance Federation of Florida, caution that this legislative change could lead to an increase in insurance premiums, more uninsured drivers, and a surge in litigation. Governor DeSantis had previously vetoed a similar repeal in 2021, and subsequent efforts have not gained traction.
The subcommittee has also advanced House Bill 643, which seeks to eliminate the requirement for insurance agents to demonstrate a ‘diligent effort’ before placing policies with surplus lines insurers. Currently, this involves obtaining rejections from at least three authorized carriers.
Meanwhile, House Bill 1047 has been approved to amend general lines agent training requirements, significantly reducing mandatory coursework from 200 hours to 60 hours. The bill further clarifies what constitutes ‘sufficient evidence’ for bad faith claims against liability insurers, stipulating necessary documentation such as accident reports, medical records, or repair bills. Insurers would have a window of 10 business days to object to submitted evidence, with an additional 10 business days allowed for policyholders to respond.
Additional provisions within HB 1047 would require written proof-of-loss statements and allow insurers to cancel or non-renew policies if the insured no longer holds an insurable interest before the completion of repairs.
Efforts to obtain comments from Governor DeSantis, the Florida Association of Insurance Agents, and the bill sponsors were unsuccessful at this time.
According to BestLink, Progressive, Berkshire Hathaway, and State Farm were the leading auto insurers in Florida as of 2024, while Citizens Property Insurance Corp. dominated the homeowners market in 2023.
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