Regulatory Roundup: Florida Revamps Surplus and Nonadmitted Insurance

State-by-state variations of laws, compliance protocols, industry transparency, and general regulatory culture can lend one the impression that keeping up with industry changes is a little bit like herding cats. So, what better way to wrangle some of the more localized insurance news than in a Regulatory Roundup?

On an ongoing basis, in no particular order or rank, we’re wrestling the various regulatory changes, compliance actions, and commissioner decisions into our roundup. As a disclaimer: There’s a lot going on at any given time in these here United States, so this isn’t a comprehensive picture of state-level action by any means. Think of it, instead, as a sampler platter of regulation. 

Also important to note: If we’re recapping interpretations of legal decisions, this is some armchair insurance speculation and not at all legal advice. If you need legal advice, get a lawyer. 

Florida rolls back regulations on surplus and nonadmitted insurance placement

It’s no secret that Florida’s been passionately engaged in an effort to make property and casualty insurance for homes and businesses affordable and profitable.

One of the recent iterations of this effort is a law that makes it easier to obtain a surplus lines policy. Thanks to Florida legislators, effective July 1, 2025, brokers selling policies on the nonadmitted market no longer have to prove that they’ve made a “diligent search effort.” 

Previously, to place a surplus policy in Florida, as in many states, brokers had to show that they had sought coverage from at least three admitted carriers for a risk before they could place it in the less regulated nonadmitted market. 

Among other things, the law also removes the requirement that any risk be placed in the admitted market as much as possible. Previously, Florida law required brokers to place as much of the risk as possible within the admitted market, and then allowed the excess to be farmed out on the nonadmitted market if necessary. 

Louisiana and Arkansas recap legislative sessions

Louisiana Commissioner Tim Temple issued a recap of the state’s legislative session. The theme of the session seemed to be systemic reform, since many bills were aimed at things like transparency in rating and changes to auto liability or driving laws that are designed to lessen risk for drivers (and, by extension, insurers).

Several bills also strengthen the state’s home hardening efforts by increasing local ordinance of roof maintenance and construction standards and increasing state tax deductions for homeowners’ roof hardening efforts.

Arkansas’ recap reveals a very busy legislature, with 65 insurance-related laws hitting the books, mostly attributable to health insurance changes. Health insurance changes range from provisions discouraging insurance-supported organ harvesting from unethical practices in China to mandatory coverage for cancer and psychological treatments.

Other notable new laws are the establishment of a new captive insurance regulation, continued tweaks to the state’s relatively new pharmacy benefit manager (PBM) regulations, and a rollout of a grant program for home hardening.

FEMA phaseout to put burden of disaster recovery squarely on states

The federal agency that coordinates national response to local disasters may be being phased out entirely based on comments by U.S. President Donald Trump, which were widely reported by news outlets in June.

As early as January, President Trump has signaled his interest in eliminating the federal program, saying “I think we’re going to recommend that FEMA go away,” when touring North Carolina after flooding. 

More recent comments have indicated that the administration will wait until after this year’s hurricane season to decommission FEMA. Currently, local organizations and state governments generally lead disaster recovery, but since 1979 FEMA has coordinated with these agencies for how to direct federal resources to recovery efforts. The program also issues individual assistance to families and businesses that rebuild after a disaster. FEMA is also the arbiter of the National Flood Insurance Program (NFIP), which is a public flood insurance program established by Congress after private flood insurance became virtually unaffordable.

Legal experts say FEMA and the NFIP are both subject to Congressional oversight, and the U.S. Congress would need to vote to disassemble either program.

Other state regulatory changes

Alabama Insurance Commissioner Mark Fowler issued a bulletin about how insurance carriers can use drone footage in claims processing, cautioning that drones must follow federal, state, and local laws; they must use recent footage; aerial images shouldn’t be the sole basis of determining a claim; and if drone footage results in a policy’s nonrenewal, the carrier must share the images with the policyholder.

California updated its list of approved surplus lines insurers to reflect that T.H.E. Insurance Company has redomesticated from Louisiana to Delaware.

Colorado issued a warning to health insurers that the Colorado Reinsurance Program will likely get far more expensive if Congress doesn’t extend the enhanced Affordable Care Act tax credits for insureds. The state estimates up to 110,000 individuals will find themselves unable to afford healthcare without the savings and subsidies, which will also mean insurers will see far less savings from the state’s reinsurance program.

Hawaii has passed legislation on pet insurance based on the National Association of Insurance Commissioners’ Pet Insurance Model Act. Residents or nonresidents who have already completed the required training to sell pet insurance in another state have satisfied Hawaii’s requirements. 

Massachusetts requires insurance carriers to terminate any producers they don’t want to renew for the upcoming year by July 14, 2025. The state invoice for appointment renewals will be open July 19 through Aug. 31, 2025.

Michigan revoked a producer’s insurance license and ordered that they pay a civil fine after discovering that they were being disciplined by FINRA for falsifying information on business submissions. It’s a good reminder for the dually licensed investment advisers and broker dealers out there that running afoul of FINRA is something you have to report to your Department of Insurance.

Montana Commissioner of Securities and Insurance James Brown announced the state joined several other state securities divisions in a settlement with five major national broker-dealer firms over unreasonable commissions.

New Mexico issued an emergency order for Grant County on June 17 thanks to several wildfires in the area. All insurance carriers with clients in the areas must be prepared to allow for late payments, abnormal prescription schedules, and an influx of P&C claims. And emergency adjusters will need to email the New Mexico Office of the Superintendent.

Oklahoma is updating ZIP codes that are eligible for the OKReady home hardening grant program. 

Washington has begun a rulemaking process for creating a registry of umpires for appraisers to select when resolving disputes about auto collision claims. Umpires are in vogue, and not just because it’s baseball season. The state is also updating its minimum standard for claims handling and investigation, and is developing rules for how to implement the state legislature’s law requiring carriers to report fire losses to the department.

FINRA filed a request with the Securities and Exchange Commission to raise the limit on gifting to institutional customers, vendors, or counterparties from $100 to $250.

Stay on top of regulatory changes with AgentSync

While these points of interest aren’t comprehensive, our knowledge of insurance producer and variable lines broker license and compliance maintenance is. See how AgentSync can help make you look smarter today; head over to the Compliance Library and wrastle up some state-by-state regulation and more jurisdictional updates. If you’re looking for a solution that builds regulations like these into your distribution channel management workflows automatically, AgentSync can help. See us in action or talk to one of our experts today.