Bill Amendment: FL S1046 | 2013 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Appropriations_Committee_Amendment_391808.html
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Appropriations_Committee_Amendment_391808.html
Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. CS for SB 1046 Barcode 391808 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/22/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Richter) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Between lines 241 and 242 4 insert: 5 Section 1. Paragraph (b) of subsection (6) of section 6 215.555, Florida Statutes, is amended to read: 7 215.555 Florida Hurricane Catastrophe Fund.— 8 (6) REVENUE BONDS.— 9 (b) Emergency assessments— 10 1. If the board determines that the amount of revenue 11 produced under subsection (5) is insufficient to fund the 12 obligations, costs, and expenses of the fund and the 13 corporation, including repayment of revenue bonds and that 14 portion of the debt service coverage not met by reimbursement 15 premiums, the board shall direct the Office of Insurance 16 Regulation to levy, by order, an emergency assessment on direct 17 premiums for all property and casualty lines of business in this 18 state, including property and casualty business of surplus lines 19 insurers regulated under part VIII of chapter 626, but not 20 including any workers’ compensation premiums or medical 21 malpractice premiums. As used in this subsection, the term 22 “property and casualty business” includes all lines of business 23 identified on Form 2, Exhibit of Premiums and Losses, in the 24 annual statement required of authorized insurers by s. 624.424 25 and any rule adopted under this section, except for those lines 26 identified as accident and health insurance and except for 27 policies written under the National Flood Insurance Program. The 28 assessment shall be specified as a percentage of direct written 29 premium and is subject to annual adjustments by the board in 30 order to meet debt obligations. The same percentage applies 31shall applyto all policies in lines of business subject to the 32 assessment issued or renewed during the 12-month period 33 beginning on the effective date of the assessment. 34 2. A premium is not subject to an annual assessment under 35 this paragraph in excess of 6 percent of premium with respect to 36 obligations arising out of losses attributable to any one 37 contract year, and a premium is not subject to an aggregate 38 annual assessment under this paragraph in excess of 10 percent 39 of premium. An annual assessment under this paragraph continues 40shall continueas long as the revenue bonds issued with respect 41 to which the assessment was imposed are outstanding, including 42 any bonds the proceeds of which were used to refund the revenue 43 bonds, unless adequate provision has been made for the payment 44 of the bonds under the documents authorizing issuance of the 45 bonds. 46 3. Emergency assessments shall be collected from 47 policyholders. Emergency assessments shall be remitted by 48 insurers as a percentage of direct written premium for the 49 preceding calendar quarter as specified in the order from the 50 Office of Insurance Regulation. The office shall verify the 51 accurate and timely collection and remittance of emergency 52 assessments and shall report the information to the board in a 53 form and at a time specified by the board. Each insurer 54 collecting assessments shall provide the information with 55 respect to premiums and collections as may be required by the 56 office to enable the office to monitor and verify compliance 57 with this paragraph. 58 4. With respect to assessments of surplus lines premiums, 59 each surplus lines agent shall collect the assessment at the 60 same time as the agent collects the surplus lines tax required 61 by s. 626.932, and the surplus lines agent shall remit the 62 assessment to the Florida Surplus Lines Service Office created 63 by s. 626.921 at the same time as the agent remits the surplus 64 lines tax to the Florida Surplus Lines Service Office. The 65 emergency assessment on each insured procuring coverage and 66 filing under s. 626.938 shall be remitted by the insured to the 67 Florida Surplus Lines Service Office at the time the insured 68 pays the surplus lines tax to the Florida Surplus Lines Service 69 Office. The Florida Surplus Lines Service Office shall remit the 70 collected assessments to the fund or corporation as provided in 71 the order levied by the Office of Insurance Regulation. The 72 Florida Surplus Lines Service Office shall verify the proper 73 application of such emergency assessments and shall assist the 74 board in ensuring the accurate and timely collection and 75 remittance of assessments as required by the board. The Florida 76 Surplus Lines Service Office shall annually calculate the 77 aggregate written premium on property and casualty business, 78 other than workers’ compensation and medical malpractice, 79 procured through surplus lines agents and insureds procuring 80 coverage and filing under s. 626.938 and shall report the 81 information to the board in a form and at a time specified by 82 the board. 83 5. Any assessment authority not used for a particular 84 contract year may be used for a subsequent contract year. If, 85 for a subsequent contract year, the board determines that the 86 amount of revenue produced under subsection (5) is insufficient 87 to fund the obligations, costs, and expenses of the fund and the 88 corporation, including repayment of revenue bonds and that 89 portion of the debt service coverage not met by reimbursement 90 premiums, the board shall direct the Office of Insurance 91 Regulation to levy an emergency assessment up to an amount not 92 exceeding the amount of unused assessment authority from a 93 previous contract year or years, plus an additional 4 percent 94 provided that the assessments in the aggregate do not exceed the 95 limits specified in subparagraph 2. 96 6. The assessments otherwise payable to the corporation 97 under this paragraph shall be paid to the fund unlessand until98 the Office of Insurance Regulation and the Florida Surplus Lines 99 Service Officehavereceived a notice from the corporation and 100 the funda notice, which shall be conclusive and upon which they 101 may rely without further inquiry, that the corporation has 102 issued bonds and the fund has no agreements in effect with local 103 governments under paragraph (c). On or after the date of the 104 notice and until the date the corporation has no bonds 105 outstanding, the fund shall have no right, title, or interest in 106 or to the assessments, except as provided in the fund’s 107 agreement with the corporation. 108 7. Emergency assessments are not premium and are not 109 subject to the premium tax, to the surplus lines tax, to any 110 fees, or to any commissions. An insurer is liable for all 111 assessments that it collects and must treat the failure of an 112 insured to pay an assessment as a failure to pay the premium. An 113 insurer is not liable for uncollectible assessments. 114 8. IfWhenan insurer is required to return an unearned 115 premium, it shall also return any collected assessment 116 attributable to the unearned premium. A credit adjustment to the 117 collected assessment may be made by the insurer with regard to 118 future remittances that are payable to the fund or corporation, 119 but the insurer is not entitled to a refund. 120 9. IfWhena surplus lines insured or an insured who has 121 procured coverage and filed under s. 626.938 is entitled to the 122 return of an unearned premium, the Florida Surplus Lines Service 123 Office shall provide a credit or refund to the agent or such 124 insured for the collected assessment attributable to the 125 unearned premium beforeprior toremitting the emergency 126 assessment collected to the fund or corporation. 127 10. The exemption of medical malpractice insurance premiums 128 from emergency assessments under this paragraph is repealed May 129 31, 20162013, and medical malpractice insurance premiums shall 130 be subject to emergency assessments attributable to loss events 131 occurring in the contract years commencing on June 1, 20162013. 132 133 ================= T I T L E A M E N D M E N T ================ 134 And the title is amended as follows: 135 Delete line 2 136 and insert: 137 An act relating to insurance; amending s. 215.555, 138 F.S.; postponing the date that repeals the Florida 139 Hurricane Catastrophe Fund emergency assessment 140 exemption for medical malpractice insurance premiums; 141 amending s. 316.646,