Florida Auto Insurance Excess Profits: How the Refund Law Works
$46,246,666. That's how much one auto insurer has been ordered to hand back to Florida policyholders because its private passenger auto business made more money from 2023 through 2025 than state law allows. The Florida Office of Insurance Regulation (OIR) announced it on November 2, 2026, and said the refunds go out within 60 days.
The rule behind it is an old one. Section 627.066 of the Florida Statutes dates to 1977 and caps how much underwriting profit an auto insurer group can keep over a rolling three-year window. After the 2023 reforms and a run of falling loss ratios, OIR now says other auto insurers are approaching the statutory threshold.
Below: how the test works, who actually gets the money under the statute, what happens to refunds nobody cashes, and what I'd do if you think you might be owed one. I'm not naming the insurer here; this is about the rule, not a company.
What OIR ordered on November 2
The OIR release says the commissioner "secured over $46 million in excess profits that will be returned to policyholders," covering the calendar and accident years 2023, 2024 and 2025. The underlying final order, OIR Case No. 403430-26-FO, puts the exact figure at $46,246,666, with losses valued as of March 31, 2026. The order is linked from OIR's Nov. 2 news release.
The paper trail is short. The insurer filed its excess-profit data with OIR on June 30, 2026, one day before the annual deadline. OIR reviewed it, sent a notice in early October, and gave the insurer the usual chance to ask for an administrative hearing. The insurer waived the hearing, and the final order followed.
| Date (2026) | Step |
|---|---|
| June 30 | Insurer files its excess-profit report with OIR (due by July 1 under s. 627.915(1)) |
| On or about Oct. 5 | OIR notice: preliminary finding of $46,246,666 in excess profit |
| Oct. 9 | Insurer receives the notice (21 days to request a hearing) |
| Oct. 12 | Insurer waives its right to a hearing |
| Oct. 22 | Final order filed: refunds or renewal credits within 60 days |
| Nov. 2 | OIR announces the refund publicly |
| Dec. 21 | 60 days after the Oct. 22 order (my arithmetic, not a date OIR published) |
Source: Florida OIR news release, Nov. 2, 2026; OIR Final Order, Case No. 403430-26-FO (filed Oct. 22, 2026).
The order also tells the insurer to try to find anyone whose refund check is returned, and to turn any money it can't deliver over to the state as unclaimed property under Chapter 717. Once the payments are done, the insurer has to certify to OIR that the refunds were made. More on the unclaimed piece below, because that's where people quietly lose money.
How the excess-profit test works
Here's the rule in one sentence, straight from s. 627.066(3)(a): an insurer group has realized excessive profit "if there has been an underwriting gain for the 3 most recent calendar-accident years combined which is greater than the anticipated underwriting profit plus 5 percent of earned premiums for those calendar-accident years."
Three pieces of that sentence do the work.
Underwriting gain. This is premium minus the cost of providing the coverage, with no investment income counted. The statute spells it out: calendar-year earned premium, minus accident-year losses and loss adjustment expenses (valued as of March 31 of the following year and developed to an ultimate basis), minus administrative and selling expenses, minus policyholder dividends.
Anticipated underwriting profit. Every auto rate filing an insurer makes with OIR includes a "profit and contingencies" factor, a percentage built into the rate. The anticipated profit is simply the earned premium under each filing multiplied by that filing's factor, added up over the three years. In plain terms: the profit the insurer told the regulator it planned to make.
The 5% cushion. On top of the planned profit, the insurer can keep up to another 5% of earned premium before anything counts as excessive. Only the amount above that line has to go back.
And the test only covers private passenger auto: policies written for personal use, not commercial auto. The figures are for the insurer group, consolidated across its companies, and include both voluntary business and any joint underwriting association business.
| Step | What the statute says | Where |
|---|---|---|
| 1. File the data | Each private passenger auto insurer group files premium, losses, expenses and dividends with OIR before July 1 every year | s. 627.066(2); s. 627.915(1) |
| 2. Value the losses | Losses for each accident year valued as of March 31 of the next year, developed to ultimate, then re-evaluated twice at 12-month intervals | s. 627.066(4) |
| 3. Compute the gain | Earned premium minus losses and loss adjustment expense, admin and selling expenses, and dividends | s. 627.066(5) |
| 4. Compare | 3-year gain vs. anticipated profit (from the rate filings) plus 5% of earned premium | s. 627.066(3), (6) |
| 5. Order the refund | OIR orders the excess returned after a chance for a hearing; required unless it would make the insurer financially impaired or insolvent | s. 627.066(7) |
| 6. Pay it out | Pro rata to voluntary policyholders of record on Dec. 31 of the final year, as cash or a renewal credit | s. 627.066(8), (9) |
| 7. Deadline | Cash within 60 days of the final order; renewal credits on notices sent more than 60 days after it | s. 627.066(11) |
| 8. Certify | Insurer certifies to OIR that refunds or credits were made | s. 627.066(11)(b) |
Source: s. 627.066, Florida Statutes; s. 627.915, Florida Statutes.
Two details people miss. First, the window rolls: every July the oldest year drops off and a new one comes in, so a group that clears the bar one year can trip it the next. Second, any refund or renewal credit paid under the statute is counted as a policyholder dividend in the year it's paid, which lowers the underwriting gain in later tests. My read of s. 627.066(12): a refund paid now counts against the gain in later windows, so the same profit shouldn't trigger a second refund.
A worked example (hypothetical numbers)
Say an insurer group earned $1,000 million in Florida private passenger auto premium over three calendar-accident years combined. Every rate filing it had in effect used a 5% profit and contingencies factor.
- Anticipated underwriting profit: $1,000M × 5% = $50M
- Plus 5% of earned premium: $1,000M × 5% = $50M
- Threshold: $50M + $50M = $100M
Now the actual results. Losses and loss adjustment expense came to $620M, administrative and selling expenses to $240M, and it paid no policyholder dividends. Underwriting gain: $1,000M − $620M − $240M − $0 = $140M.
$140M is above the $100M threshold, so the excess is $140M − $100M = $40M. That $40M is what goes back to policyholders. The group keeps the other $100M of gain.
Source: Hypothetical, calculated under s. 627.066, Florida Statutes, subsections (3) and (5)
Show the numbers
| Amount | |
|---|---|
| Planned profit | $50M |
| + 5% cushion | $50M |
| Threshold | $100M |
| Actual gain | $140M |
| Excess to refund | $40M |
Flip one number and the answer changes. If that same group's three-year gain had been $90M instead, it would sit under the $100M line and owe nothing, even though it made more than the $50M it planned. The cushion is real money, and that's by design.
What one policyholder would get
The statute splits the excess pro rata by each policyholder's earned premium in the final year of the window. Keep going with the example: suppose the group earned $360M in that final year, and you were a policyholder of record on December 31 with $2,400 of earned premium that year.
$40,000,000 × $2,400 ÷ $360,000,000 = $266.67. The law lets insurers round cash refunds to the nearest dollar, so that's a $267 check or a $267 credit on your renewal.
| Line | Amount |
|---|---|
| Excess profit (group) | $40,000,000 |
| Group earned premium, final year | $360,000,000 |
| Your earned premium, final year | $2,400 |
| Your share of final-year premium | 0.00067% |
| Your refund (exact) | $266.67 |
| Your refund (rounded, if the insurer rounds) | $267 |
Source: hypothetical, calculated under s. 627.066, Florida Statutes, subsections (8) and (10).
Real refunds vary with what each person paid, and I have no way to tell you what any particular check will be. OIR's release gave the total, not a per-policy figure.
Who gets the refund under the statute
This is the part that decides whether you see any money, and it's narrower than headlines make it sound. Under s. 627.066(8), the excess goes "to the voluntary private passenger automobile policyholders of record of the insurer group on December 31 of the final compilation year."
For the November 2026 order, the window is 2023 to 2025, so the final compilation year is 2025. Reading the statute plainly, that points to people who had a voluntary private passenger auto policy with that insurer group on December 31, 2025. If you left before then, the statute doesn't direct a share to you, even if you paid premium in 2023 or 2024. The insurer's own notice to you is what controls how your refund is handled.
| Your situation | What s. 627.066 says |
|---|---|
| Insured with the group on Dec. 31 of the final year | Eligible for a pro rata share based on that final year's earned premium |
| Left the insurer before Dec. 31 of the final year | Not among the policyholders of record the statute names |
| Insurer pays by check | Cash refund due within 60 days of the final order |
| Insurer chooses renewal credits | Credit on renewal notices sent more than 60 days after the order |
| Insurer chose credits, then you cancel or let the policy lapse | Insurer owes you a cash refund within 60 days after coverage ends |
| Commercial auto policy | Not covered; the statute applies to private passenger (personal use) auto |
| Check is returned undeliverable | Insurer tries to locate you; undeliverable money goes to the state as unclaimed property (per the order) |
Source: s. 627.066, Florida Statutes, subsections (1), (8), (9) and (11); OIR Final Order, Case No. 403430-26-FO.
One thing that trips people up: the statute looks at who was a policyholder of record on December 31 of the final year, not at who is insured with that company today. And if the insurer chose to pay through renewal credits and you then cancel or let the policy lapse, subsection (11) says it owes you cash within 60 days after your coverage ends. If you've switched insurers and aren't sure how that applies to you, ask the insurer that covered you on that date.
If a refund check goes unclaimed
A refund based on who was insured on a date almost a year earlier will miss some people. They moved, changed phone numbers, or the check sat in a pile of mail that looked like a marketing piece. The final order makes the insurer try to find anyone whose check comes back, and if it can't, the money is handled as unclaimed or abandoned property under Chapter 717 of the Florida Statutes.
That money doesn't vanish. Florida's Department of Financial Services (DFS) holds unclaimed property for the owner, and you search it at ClaimYourCashFL.gov. In September 2026 DFS gave the program a new public name, Claim Your Cash Florida, with a new website. DFS's own unclaimed property guide says there is no cost to search or to claim; its phone line is 1-888-258-2253. Claims need ID, such as a copy of your driver license, under s. 717.124.
Don't expect to see an uncashed refund there next month, though. Under s. 717.102, the general dormancy period before property is presumed abandoned is 5 years from when it becomes payable, unless another law sets a different period. So the realistic move is to watch for the check now, and keep ClaimYourCashFL.gov in mind for later.
Why this is happening now
Short version: Florida auto insurers' costs fell faster than their rates. OIR's own numbers show the swing. The state's five largest auto insurance groups, about 78% of the market, raised rates an average of 31.7% in 2023, then 4.3% in 2024. After that, the direction reversed.
- Up
- Down
Source: Florida OIR news releases of July 29, 2025 and March 5, 2026
Show the numbers
| Year | Average rate change |
|---|---|
| 2023 | +31.7% |
| 2024 | +4.3% |
| 2025 (requested) | −7.4% |
| 2026 YTD, Feb (indicated) | −8.0% |
Losses dropped even harder. OIR reports Florida's personal auto liability loss ratio fell from 80.5% in 2022 to 52.5% in 2025, and the physical damage loss ratio from 112.0% to 49.5%. A loss ratio is losses as a share of premium. When it falls that far while rates were set for a costlier world, the gap shows up as underwriting profit, and the excess-profit statute is what forces some of it back.
- Liability
- Physical damage
Source: Florida OIR news releases of July 29, 2025 (liability, 2022 to 2024) and March 5, 2026 (liability 2025; physical damage, all years)
Show the numbers
| Liability | Physical damage | |
|---|---|---|
| 2022 | 80.5% | 112.0% |
| 2023 | 74.5% | 70.3% |
| 2024 | 53.3% | 66.7% |
| 2025 | 52.5% | 49.5% |
OIR credits the change largely to Florida's legislative reforms, including HB 837 (Ch. 2023-15), which repealed one-way attorney fees against insurers and shortened the negligence lawsuit deadline from four years to two. Our Florida tort reform explainer walks through what changed. OIR has also pointed to strong national underwriting results, and its releases don't split out how much came from each.
This isn't the first large return either. In October 2025, OIR said another large auto insurer had recorded about $950 million as a policyholder credit expense, its estimate of profit for the three calendar years ending December 31, 2025, with credits expected for active policyholders as of that date (roughly 2.7 million Florida personal auto policyholders, by the insurer's estimate). A month later the commissioner said he would keep reminding auto insurers of their obligation to return excess profits. And in January 2026, OIR said 42 companies writing personal auto had filed for rate decreases in the prior year.
Will more orders follow? OIR says it expects more refund announcements. That's the regulator's expectation, not a promise, and whether a given insurer crosses the line depends on its own three-year numbers. For more on where premiums stand, see Florida car insurance rates: what the regulator data shows, and for this year's rule changes, new Florida car insurance laws for 2026.
What to do if you think you're owed a refund
- Check who insured you on December 31, 2025. Pull up your declarations page or the renewal notice covering that date. That's the date the statute uses for the 2023 to 2025 window.
- Update your mailing address with that insurer, even if you've since switched. A refund mailed to an old address is an easy way for this money to end up in unclaimed property.
- Open the mail from insurers for the next couple of months. Refund checks and credit notices from insurance companies are easy to mistake for advertising.
- Look at your next renewal notice. If the insurer chose credits, it should show up there instead of a check. If you cancelled after the credit election, you're owed cash within 60 days of the policy ending.
- Ask the insurer or your agent directly if you're unsure whether your policy is included. The insurer has the list of policyholders of record.
- Call the DFS Insurance Consumer Helpline, 1-877-693-5236, if you think you were left out or a refund isn't arriving, or contact DFS consumer services online.
- Search ClaimYourCashFL.gov down the road for refunds that never reached you. It costs nothing to search.
And one honest caveat: a refund under s. 627.066 is not a rate cut, and it doesn't tell you anything about what your next premium will be. It's a one-time correction for past years. If your goal is a lower bill going forward, compare your current coverage and price at renewal; our Florida auto insurance page covers the coverages that drive the price, and if you also own a home here, the same reform era touched Florida home insurance too. Questions about your own situation are welcome through our contact page.
FAQ
What is the excess profits law for auto insurance in Florida?
Section 627.066, Florida Statutes, says an auto insurer group has excessive profit when its underwriting gain over the 3 most recent calendar-accident years combined is greater than the profit built into its rate filings plus 5% of earned premium. OIR then orders the excess returned to policyholders.
Who gets a Florida auto insurance excess profit refund?
Under s. 627.066(8), the refund is split pro rata by final-year earned premium among the insurer group's voluntary private passenger auto policyholders of record on December 31 of the final year of the 3-year window. For the November 2026 order covering 2023 to 2025, that final year is 2025.
How long does an insurer have to pay excess profit refunds?
A cash refund must be completed within 60 days of OIR's final order. If the insurer chooses renewal credits, they go on renewal notices sent more than 60 days after the order, and anyone who cancels instead gets cash within 60 days after coverage ends.
What happens if I never receive or cash my refund check?
The insurer must try to locate you. Money it cannot deliver is reported as unclaimed property under Chapter 717, which you can search and claim at no cost through ClaimYourCashFL.gov, run by the Florida Department of Financial Services.
Your own policy wording, your insurer's refund notice and Florida law control. Confirm your situation with a licensed agent, the Florida Office of Insurance Regulation or the Department of Financial Services, or, for legal questions, an attorney.
Sources
- Florida OIR: Commissioner secures $46 million in excess profits from auto insurer (Nov 2, 2026; links Final Order, Case No. 403430-26-FO)
- Florida Statutes s. 627.066: Excessive profits for motor vehicle insurance prohibited
- Florida Statutes s. 627.915: Insurer experience reporting
- Florida Statutes s. 717.102: Property presumed abandoned; general rule
- Florida Statutes s. 717.124: Abandoned property claims
- Florida DFS: Unclaimed property guide (PDF)
- Florida DFS: Claim Your Cash Florida unclaimed property search
- Florida DFS: CFO launches Claim Your Cash Florida (Sept 15, 2026)
- Florida DFS: Personal automobile insurance overview (Consumer Helpline)
- Florida OIR: Lower auto insurance rates announcement (July 29, 2025)
- Florida OIR: ICYMI, $1 billion in auto insurance refunds announced (Oct 23, 2025)
- Florida OIR: Continued auto insurance market strength (Nov 18, 2025)
- Florida OIR: More auto rate cuts for consumers in 2026 (Jan 28, 2026)
- Florida OIR: Auto rate decreases for Florida's top 5 auto insurance groups (Mar 5, 2026)
- Laws of Florida Ch. 2023-15 (HB 837)
This article is for general educational purposes only and is not legal, tax or insurance advice. Coverage depends on the actual policy, its terms, conditions and exclusions, and state law. Maru Insurance · WA License (WAOIC) #1365574 · FL License #G363233 · NPN 22261820.