FloridaCaptive insurers may organize separate cells for participants’ risks
Starting July 1, 2026, captive insurers may set up separate cells for participants’ risks, with state approval and rules to keep each cell’s money and debts distinct.
What it does
Captive insurers may set up separate cells to cover participants’ risks, but the state insurance office must approve each cell’s operating plan first.
These companies may insure only their cell participants’ risks, and each cell’s business must have insurance backing, reinsurance, or approved financial security.
Captive insurers must meet minimum financial requirements; protected cell companies generally need at least $100,000 in capital and surplus.
A cell’s assets generally stay separate from other cells’ debts. Changing or combining a cell requires state insurance office approval and, in some cases, consent from other affected parties.
Argument forKeeping each cell’s money and debts separate could help protect one group of participants when another cell faces claims.
Argument againstCell by cell records, reports, and advance approvals could add work for insurers and delay changes to coverage or participants.
More detail
A protected cell captive insurer may create separate cells to cover participants’ risks. A protected cell captive insurance company may establish incorporated or unincorporated cells for one or more participants. The Office of Insurance Regulation must approve each cell’s operating plan in writing before the company assigns insurance obligations to that cell. The company must keep each cell’s assets and liabilities separately identifiable and assign assets worth at least its reserves and other insurance liabilities. The law takes effect July 1, 2026.
A protected cell captive insurance company may insure only the risks of its cell participants. The limit applies to protected cell captive insurance companies and the insurance they write for each protected cell. Each cell’s business must be backed by a licensed insurer, approved reinsurance, or financial security accepted by the office. Security must cover at least the reserves for liabilities that are neither insured by a fronting company nor reinsured. The law takes effect July 1, 2026.
Captive insurers must meet minimum financial requirements, including at least $100,000 in paid-in capital and surplus for protected cell companies. The requirements cover protected cell, pure, industrial insured, and special purpose captive insurance companies. A nonprofit protected cell captive insurance company must have at least $100,000 in unrestricted net assets. Different minimums apply to pure and industrial insured captive companies; the office sets the amount for special purpose companies based on their plans and risks. The law takes effect July 1, 2026.
A protected cell’s assets generally may not pay another cell’s debts, and cell conversions, affiliations, and mergers require specified approvals. These rules apply to protected cell captive insurance companies and their individual protected cells. A plan, participant contract, or earlier agreement may allow one cell’s assets to be used for another cell’s obligations. Conversions need the office’s consent; affiliations need consent from both affected companies and the office; mergers also need consent from affected owners or participants. The law takes effect July 1, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 12Chapter No. 2026-72Latest
- May 11Approved by Governor Ron DeSantisBecame Law
- Apr 30Signed by Officers and presented to GovernorTo Governor
- Mar 4Ordered enrolledMinor
- Vote recorded Third Reading. Result: pass.Upper
- Mar 4In Messages
- Mar 4CS passed; YEAS 37 NAYS 0Passed Senate
- Mar 4Read 3rd timeMinor
- Mar 4Read 2nd timeMinor
- Mar 4Substituted for SB 990
- Mar 4Placed on Calendar, on 2nd reading
- Mar 4Withdrawn from RulesMajor
- Mar 3ReceivedMinor
- Vote recorded Passage, Third Reading. Result: pass.Lower
- Mar 3Referred to RulesMinor
- Mar 3In Messages
- Mar 3CS passed; YEAS 110, NAYS 0Passed House
- Mar 3Read 3rd timeMinor
- Mar 3Added to Third Reading Calendar
- Mar 3Read 2nd timeMinor
- Feb 26Bill added to Special Order Calendar (3/3/2026)
- Feb 26Added to Second Reading Calendar
- Feb 251st Reading (Committee Substitute 2)Minor
- Feb 25Bill referred to House Calendar
- Feb 25CS FiledMinor
- Feb 25Laid on Table under Rule 7.18(a)Minor
- Feb 25Reported out of Commerce Committee
- Feb 24Favorable with CS by Commerce CommitteeMinor
- Vote recorded Favorable With Committee Substitute (Commerce Committee). Result: pass.Lower
- Feb 20Added to Commerce Committee agenda
- Feb 18Now in Commerce Committee
- Vote recorded Favorable (Civil Justice & Claims Subcommittee). Result: pass.Lower
- Feb 18Reported out of Civil Justice & Claims Subcommittee
- Feb 18Favorable by Civil Justice & Claims SubcommitteeMinor
- Feb 16Added to Civil Justice & Claims Subcommittee agenda
- Feb 12Now in Civil Justice & Claims Subcommittee
- Feb 12Referred to Commerce CommitteeMinor
- Feb 12Referred to Civil Justice & Claims SubcommitteeMinor
- Feb 111st Reading (Committee Substitute 1)Minor
- Vote recorded Favorable With Committee Substitute (Insurance & Banking Subcommittee). Result: pass.Lower
- Feb 11CS FiledMinor
- Feb 11Laid on Table under Rule 7.18(a)Minor
- Feb 11Reported out of Insurance & Banking Subcommittee
- Feb 11Favorable with CS by Insurance & Banking SubcommitteeMinor
- Feb 9Added to Insurance & Banking Subcommittee agenda
- Jan 131st Reading (Original Filed Version)Minor
- Jan 5Now in Insurance & Banking Subcommittee
- Jan 5Referred to Commerce CommitteeMinor
- Jan 5Referred to Civil Justice & Claims SubcommitteeMinor
- Jan 5Referred to Insurance & Banking SubcommitteeMinor
- 2025
- Dec 23FiledIntroduced
Consumer Protection