Important Legislative Updates Pending In Tallahassee
As the law, especially in Florida is fluid, especially with respect to insurance laws, we are providing a brief synopsis of pending legislation before the Florida legislature. Thus far, none of these bills have been passed into law in the 2025 session, but given the importance that insurance plays in a wide array of businesses, it’s important to take note, prepare and plan accordingly. We have provided some background on the pending legislation and topics. However, if you believe that any of these proposed bills or issues will impact you, it is important to consult with counsel for further guidance.
For real-time updates refer to official legislative tracking sites like www.flsenate.gov or www.myfloridahouse.gov to see how the pending bills are tracking in the legislative process. This year, the Florida legislative session convened on March 4, 2025 and will be adjourned on May 2, 2025.
Pending Bills in the Florida Senate
Senate Bill 554 (Senator Don Gaetz)
SB 554, as proposed, aims to increase transparency in insurance operations by requiring detailed reports on executive compensation and financial ties between insurers and their affiliates. This bill comes on the heels of a long unknown partial study that surveyed insurance operations in Florida, and contrary to the narrative promoted in 2022 and 2023, found that many carriers were profitable, but profits were secreted to affiliates, parent companies, executives, and others resulting in superficially low economic markers reported by the Florida subsidiaries. Unpublished Florida study reveals property insurance secrets | Miami Herald; Florida Insurers Sent Billions to Affiliates While Claiming Losses: Report – Newsweek; Florida Insurance Scandal Has ‘Huge’ Impact for Homeowners – Newsweek.
If passed, SB 451 will likely force radical changes in the structuring of carriers, policies, claims procedures and provide for further implications were the intended transparency due to regulators is not honored. Impact to premiums are far from clear, but in the event of any further regulation, should SB 554 become law, it may impact premiums and policies in the state. Enhanced and more thorough reporting with a focus on stricter oversight should promote better claim processing and reduce the potential for claims that many believe are being improperly or fraudulently delayed or denied. The bill, as currently proposed, will also provide for prevailing party attorney fees for property insurance disputes. The legislation provides for a truncated recovery of legal fees based on certain factors including, without limitation, reasonableness of pre-suit demands, the amount recovered in comparison to the amount demanded prior to filing a suit, timeliness of a carrier’s response, and in instances of abuse or fraud. Unlike prior legislation governing property and other insurance claims, the award turns on who prevails, and is not a return to one-way fees where an insured succeeds on claims against an insurance company.
SB 554 is still pending review in the Senate Banking and Insurance Committee as well as the Rules and Appropriations Committee on Agriculture, Environment, and General Government with no specific further hearing dates were noted. For more details, here is a link to the proposed legislation: Senate Bill 554 (2025) – The Florida Senate
Senate Bill 1256 (Senator Erin Grall and Senator Darryl Ervin Rouson)
SB 1256 takes aim at Florida’s no-fault (Personal Injury Protection) system and proposes to replace it with mandatory bodily injury (BI)(also referred to as personal injury (PI) or negligence) liability coverage. If passed into law, SB 1256 would shift medical cost responsibility from PIP to BI liability, which entails a prolonged process over current the PIP system where fault is irrelevant. If SB 1256 passed, drivers would need to carry BI coverage (with minimum coverage of $25,000 per person/$50,000 per accident) to register a vehicle in the State of Florida.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2026.
Advocates of SB 1256 claim that the current PIP system is plagued by fraud and inefficiencies which, in turn, drive up costs and auto insurance premiums. Discussion on this topic is quite fierce because of the broad impact on consumers (and businesses) in the state. Those in favor of the repeal believe that Florida’s current law – requiring drivers to carry $10,000 in personal injury protection benefits, which provides coverage to anyone injured regardless of fault – is a major contributor to the high auto insurance premiums Floridians foot compared to national averages. Opponents of the repeal, which include the Florida Justice Reform Institute, believe that repeal is premature because there is insufficient data to determine whether the law (PIP) or repeal would impact drivers and consumers one way or another. In light of the sweeping reforms enacted in 2022 and 2023, which were universally seen as major victories for insurance carriers, opponents to SB 1256, noting the persisting high premiums, do not want the law repealed until the full data from the impacts of prior reforms (including, HB 837, SB 2A, SB 256) come to light.
Status: Introduced in March 2023 for the 2024 session but reintroduced for 2025 consideration. As of April 2025, it is pending review in the Senate Banking and Insurance Committee and Appropriations Committee on Agriculture, General Government and Rules. No final action has been reported. Senate Bill 1256 (2025) – The Florida Senate
For those businesses that currently rely upon PIP benefits as part of their business plan and regular operations, SB 1256 should be monitored closely because of the sweeping and material impact that it will have on consumers, drivers and medical service providers in Florida.
Senate Bill 1656 (Senator Jay Collins)
Impact: Requires insurers to disclose payments to affiliate companies and report how internal costs (e.g., litigation, reinsurance) impact consumer premiums. This could indirectly affect policy pricing and claims processing by exposing cost structures that influence insurance rates. On the other hand, increased transparency may pressure carriers and adjusters to streamline claims processes to justify costs, potentially benefiting policyholders.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2025.
Status: On March 17, 2025, the Banking and Insurance Committee approved SB 1656 by 7-0. As of March 19, 2025, the bill went through its first reading in the Banking and Insurance Committee and was also under review by the Appropriations Committee on Agriculture, Environment and General Government. Senate Bill 1656 (2025) – The Florida Senate
Senate Bill 1740 (Senator Blaise Ingoglia and Senator Barbara Sharief)
Senate Bill 1740 seeks to increase required reserves for carriers that operate in the state. The bill proposed an additional $35 million in reserves and also provided language that would ban executives and attorneys from leading failed insurers for five years post-insolvency. Not only does the bill seek to hold those responsible for carrier failures accountable, but also seeks further market stabilization in the market and protect against financial and other harms that ensue following insolvencies. Proponents of the bill advocate that heightened reserves not only protect against insolvencies but should increase carriers’ abilities to pay out claims quicker.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2025.
Status: As of March 17, 2025, the bill passed the Banking and Insurance Committee by 7-0, and on March 19, 2025 was given its first reading and sent for further review by the Appropriations Committee on Agriculture, Environment and General Government. No further action was reported. Senate Bill 1740 (2025) – The Florida Senate
Pending Bills in the Florida House of Representatives
House Bill 1181 (Representative Danny Alvarez, Rep. Meg Weinberger and Rep. Susan Valdes)
HB 1181 is a companion bill to SB 1256. Like SB 1256, HB 1181 seeks to repeal Florida’s no-fault (PIP) system and replace it with mandatory BI liability coverage. The justification touted by its sponsors and proponents claim that eliminating Florida’s no-fault system will reduce auto insurance premiums by shifting medical cost responsibility and addressing PIP-related fraud. Like SB 1256, HB 1181 requires BI coverage for vehicle registration in Florida. If passed, this bill will wholly reshape auto policy claims and refocus financial liability to those found to be liable rather than a neutral policy designed to ensure prompt treatment regardless of fault.
HB 1181 would also eliminate Florida’s current tort liability limits which exist under the current PIP system absent certain carveouts. Like SB 1256, mandatory minimum coverage will be increased to $25,000 per person and $50,000 per incident, but will not increase the minimum property damage coverage from $10,000.00. Proponents tout that the new proposed limits are more in line with the costs of medical care today, rather than the $10,000 limit which has been in place since the 1970s when no-fault laws were enacted. On the other hand, groups and advocates that oppose HB 1181 and are against the repeal of no-fault laws, argue that the increased premiums (imposed from increased policy limits) will lead to more uninsured motorists, resulting in protracted litigation, delayed medical treatment, and imposing up-front out of pocket costs on those that are injured rather than the carrier(s). If passed, HB 1181 is slated to cause material disruption to medical providers that rely upon no-fault (PIP) coverage for reimbursement of treatments and supplies rendered to accident victims. Groups including the Florida Consumer Action Network have noted that policies that turn on liability are likely to reduce available medical services for those injured in accidents because of coverage, especially in multi-vehicle accidents where fault can be difficult to apportion. The sentiment is generally shared by medical associations and consumer groups which believe that the elimination of the no-fault system will disrupt available healthcare, increase financial risk and disproportionately have an adverse economic impact on those victims from low-income communities.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2026.
Status: Introduced in March 2023 for the 2024 session and reintroduced for 2025. As of April 2025, HB 1181 has received favorable votes from the Civil Justice and Claims Subcommittee (13-2, March 27, 2025) and Insurance and Banking Subcommittee (18-1, April 3, 2025). HB 1181 is now before the Judiciary Committee. No additional votes or hearings were noted. HB 1181 (2025) – Motor Vehicle Insurance | Florida House of Representatives
Relevance to PIP: Directly targets PIP repeal, potentially reshaping auto insurance claims by emphasizing liability over no-fault coverage.
House Bill 1429 (Representative Tom Fabricio)
HB 1429 is similar to SB 1656 but has some notable distinctions. Like SB 1656, HB 1429 requires insurers to disclose payments made to affiliates and report how internal costs affect premiums. While the correlation to premiums is inherently uncertain, increased oversight may, on the one hand have an impact on policy pricing, but also promote streamlined claims handling by requiring heightened transparency and accountability. While SB 1656 targets broader insurance oversight across the industry, HB 1429 is more focused on reciprocal insures and continuing care communities (CCRCs) with stated goals of providing policyholders and residents with more transparent insight into their carrier’s financial operations and claim handling.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2025.
Status: Like SB 1656, HB 1429 remains in early stages of review with no floor votes having been held yet. The bill remains in the House Insurance & Banking Subcommittee with no further specific progress reported as of yet. HB 1429 (2025) – Insurance Regulations | Florida House of Representatives
House Bill 451 (Representative Alex Andrade)
HB 451 is largely likened as a companion bill to SB 554. HB 451 includes provisions which would provide for prevailing party legal fees and costs if they successfully sue an insurer under a property insurance policy. 2022 and 2023 reforms repealed provisions which allowed an insured to recover against an insurance company, so HB 451 would provide similar, but not the same relief that existed prior to the sweeping reforms for property claims. While passage of HB 451could increase litigation against insurers, potentially raising premiums, it provides property policyholders with additional rights which militate towards a more economic balance between stakeholders instead of the staggering imbalance that exists without prevailing party fees.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2025.
Status: As of April 2025, the House is supporting changes to increase damages in personal injury/wrongful death cases and reinstate attorney fees, but the specific bill number was not identified. It is in the early stages, with limited House action reported. HB 451 (2025) – Court Judgment Interest Rates and Insurance Reports and Practices | Florida House of Representatives
House Bill 1551 (Representative Hilary Cassel and Rep. Paula Stark)
HB 1551 is aptly summarized by its sponsor, Representative Hilary Cassel:
House Bill 1551 was filed to strike a balanced approach to Florida’s insurance litigation landscape by ensuring both consumer protection and the reduction of frivolous lawsuits. This legislation aims to provide policyholders with a fair pathway to recover attorney fees when they prevail in certain disputes against insurers, thus discouraging wrongful claim denials. At the same time, it establishes clear guidelines for determining prevailing parties, ensuring that insurers are not unfairly burdened with excessive litigation costs when legitimate settlement offers are made in good faith. By fostering accountability on both sides, HB 1551 enhances the stability of Florida’s insurance market while safeguarding consumers’ rights.
While there has not been any floor votes, HB 1551 has passed the House Civil Justice and Claims Subcommittee (16-1, March 13, 2025), and the Insurance and Banking Subcommittee (15-1, March 20, 2025). It must pass at least one more hurdle, the House Judiciary Committee, to reach the House floor for a full vote. However, so far, support from the Florida Senate is uncertain, and it is generally expected to mixed views from state Senators who are generally not in favor of reversing the major aspects of the 2022 and 2023 reforms. HB 1551 (2025) – Attorney Fee Awards in Insurance Actions | Florida House of Representatives
House Bill 1437 (Representative John Snyder)
Similar to other efforts during this legislative session, HB 1437 seeks to restore economic parity between insured and insurance companies. In conjunction with SB 1840 (Senator Jonathan Martin), the bill, as proposed would largely, but not fully, restore pre-2023 reform attorney fee awards. The language provides for a strict prevailing party fee award between any “provider who rendered [] service or care [in connection with Florida’s PIP statute]” and the carrier where a lawsuit is filed, and a prevailing party determined following “judgment or decree at the trial or appellate court” inclusive of court costs. The bill seemingly responds to the impacts following HB 837 which abolished the mechanism for fees under Florida’s insurance laws, and while not as robust as the law that existed prior to the 2023 reform, protects medical providers who treat auto accident victims under Florida’s no-fault system but are improperly denied or underpaid benefits under that system. Unlike HB 1181, HB 1437 does not propose to repeal or materially modify Florida’s PIP statutes, rather, it strengthens it by virtue of reducing financial barriers (cost of legal representation) so that insureds, including treating medical providers, can enforce their rights.
Proposed Effective Date: If passed into law without modification, the slated effective date of the law would be July 1, 2025.
HB 1437 received favorable action by the House Civil Justice & Claims Subcommittee (17-1, March 20, 2025) but is still pending review by the House Insurance and Banking Subcommittee and the Judiciary Committee. It is unclear if HB 1437 will be presented to the floor for a vote during the 2025 legislative session, but should be monitored closely for those that are experiencing difficulties with carriers over reimbursement through PIP policies. HB 1437 (2025) – Attorney Fees and Costs for Motor Vehicle Personal Injury Protection Benefits | Florida House of Representatives
Disclaimer: The information provided here is for general informational purposes only and is intended to summarize recent legal developments in Florida, such as House Bill 1437. The information provided above is intended to be informative, but neither comprehensive nor applicable to any particular case or scenario. The content provided above is based upon information available as of the date of drafting, and like any other legal topic, is subject to change, whether through the legislative, executive or judicial systems, or by the passage of time. It does not constitute legal advice, nor is it a substitute for professional legal counsel. No attorney-client relationship is created by reading or relying on this information. Laws and regulations go through rigorous legislative and executive review and democratic processes, hence are subject to change, and their application depends on specific facts and circumstances. For advice tailored to your situation, or for more information about the topics identified or discussed above, please consult a licensed Florida attorney.