Florida Governor Jeb Bush signed into law last Friday legislation that paves the way for foreign insurance companies to sell life insurance and annuity contracts from Florida to non-US residents.

The legislation, which was unanimously approved by both the Florida House and Senate in April, and will take effect on July 1 is aimed at US insurance companies with offshore affiliates; foreign insurers based in the United Kingdom, Bermuda and Canada; and other international financial services providers with an existing presence in South Florida.

The legislation is designed to make it easier for qualified offshore insurance companies to conduct business in Florida that is aimed at serving non-US residents. It eliminates the requirement that foreign insurers obtain a certificate of authority from the Florida Office of Insurance Regulation to sell life insurance policies and annuity contracts to non-US residents.

By authorising the sale of offshore insurance products to non-US residents from Florida, supporters expect the new law will facilitate the establishment of support operations in Florida by offshore insurers. An economic study conducted by the Beacon Council estimated that the new law could generate up to $2.7 billion annually through the sales of one million family policies when the administrative work is conducted in Florida.

?Florida has taken the lead in adopting legislation that can create thousands of new, high-paying jobs in Florida while elevating Florida?s stature as an international insurance centre,? said Shutts & Bowen Senior Partner Bowman Brown, who originated the idea as chairman of the Beacon Council Financial Services Task Force, Miami-Dade County?s public/private economic development agency.