Florida Senate - 2015 CS for CS for SB 600 By the Committees on Commerce and Tourism; and Banking and Insurance; and Senator Richter 577-02330-15 2015600c2 1 A bill to be entitled 2 An act relating to insurance guaranty associations; 3 amending s. 625.012, F.S.; revising the definition of 4 the term “asset” to include Florida Insurance Guaranty 5 Association assessments, under certain conditions, for 6 purposes of determining the financial condition of an 7 insurer; amending ss. 631.717 and 631.737, F.S.; 8 transferring a provision relating to the obligation of 9 the Florida Life and Health Insurance Guaranty 10 Association to pay valid claims under certain 11 circumstances; providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Subsections (15) and (16) of section 625.012, 16 Florida Statutes, are redesignated as subsections (16) and (17), 17 respectively, and a new subsection (15) is added to that 18 section, to read: 19 625.012 “Assets” defined.—In any determination of the 20 financial condition of an insurer, there shall be allowed as 21 “assets” only such assets as are owned by the insurer and which 22 consist of: 23 (15)(a) Assessments levied under s. 631.57(3)(a) and (e) 24 which are paid before policy surcharges are collected and result 25 in a receivable for policy surcharges to be collected in the 26 future. This amount, to the extent it is likely that it will be 27 realized, meets the definition of an admissible asset as 28 specified in the National Association of Insurance 29 Commissioners’ Statement of Statutory Accounting Principles No. 30 4. The asset shall be established and recorded separately from 31 the liability regardless of whether it is based on a 32 retrospective or prospective premium-based assessment. If an 33 insurer is unable to fully recoup the amount of the assessment 34 because of a reduction in writings or withdrawal from the 35 market, the amount recorded as an asset shall be reduced to the 36 amount reasonably expected to be recouped. 37 (b) Assessments levied as monthly installments under s. 38 631.57(3)(e)1.c. which are paid after policy surcharges are 39 collected so that the recognition of assets is based on actual 40 premium written offset by the obligation to the Florida 41 Insurance Guaranty Association. 42 Section 2. Subsection (11) of section 631.717, Florida 43 Statutes, is amended to read: 44 631.717 Powers and duties of the association.— 45 (11) The association is
shallnot beliable for any civil 46 action under s. 624.155 arising from any acts alleged to have 47 been committed by a member insurer before prior toits 48 liquidation. This subsection does not affect the association’s49 obligation to pay valid insurance policy or contract claims if50 warranted after its independent de novo review of the policies,51 contracts, and claims presented to it, whether domestic or52 foreign, after a Florida domestic rehabilitation or a53 liquidation.54 Section 3. Section 631.737, Florida Statutes, is amended to 55 read: 56 631.737 Rescission and review generally.—The association 57 shall review claims and matters regarding covered policies based 58 upon the record available to it on and after the date of 59 liquidation. Notwithstanding any other provision of this part, 60 in order to allow for orderly claims administration by the 61 association, entry of a liquidation order by a court of 62 competent jurisdiction tolls shall be deemed to tollfor 1 year 63 any rescission or noncontestable period allowed by the contract, 64 the policy, or by law. The association’s obligation is to pay 65 any valid insurance policy or contract claims, if warranted, 66 after its independent de novo review of the policies, contracts, 67 and claims presented to it, whether domestic or foreign, 68 following a rehabilitation or a liquidation. 69 Section 4. This act shall take effect July 1, 2015.