Bill Text: FL S0814 | 2017 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Florida Life and Health Insurance Guaranty Association
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-03 - Laid on Table, companion bill(s) passed, see CS/HB 307 (Ch. 2017-131) [S0814 Detail]
Download: Florida-2017-S0814-Introduced.html
Bill Title: Florida Life and Health Insurance Guaranty Association
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-05-03 - Laid on Table, companion bill(s) passed, see CS/HB 307 (Ch. 2017-131) [S0814 Detail]
Download: Florida-2017-S0814-Introduced.html
Florida Senate - 2017 SB 814 By Senator Broxson 1-00852-17 2017814__ 1 A bill to be entitled 2 An act relating to the Florida Life and Health 3 Insurance Guaranty Association; amending s. 631.713, 4 F.S.; revising applicability of the Florida Life and 5 Health Insurance Guaranty Association Act as to 6 specified annuity contracts; amending s. 631.717, 7 F.S.; revising the association’s maximum aggregate 8 liability for the contractual obligations of an 9 insolvent insurer with respect to one life; specifying 10 the association’s maximum liability as to certain 11 health insurance policies; amending s. 631.718, F.S.; 12 revising the maximum limit of a certain annual 13 assessment levied on member insurers by the 14 association’s board of directors; providing an 15 effective date. 16 17 Be It Enacted by the Legislature of the State of Florida: 18 19 Section 1. Paragraph (l) of subsection (3) of section 20 631.713, Florida Statutes, is amended to read: 21 631.713 Application of part.— 22 (3) This part does not apply to: 23 (l) Any annuity contract or group annuity contract that is 24 not issued to and owned by an individual, except to the extent 25 of any annuity benefits: 26 1. Guaranteed directly and not through an intermediary to 27 an individual by an insurer under such contract or certificate;.28 2. Under an annuity issued by an insurer under 26 U.S.C. s. 29 408(b); or 30 3. Under an annuity issued by an insurer and held by a 31 custodian or trustee in accordance with 26 U.S.C. 408(a). 32 33 This paragraph applies to every insolvency regardless of its 34 date of inception, and an assessment base may not include 35 premiums for such excluded products. 36 Section 2. Subsection (9) of section 631.717, Florida 37 Statutes, is amended to read: 38 631.717 Powers and duties of the association.— 39 (9) The association’s liability for the contractual 40 obligations of the insolvent insurer mustshallbe as great as, 41 but no greater than, the contractual obligations of the insurer 42 in the absence of such insolvency, unless such obligations are 43 reduced as permitted by subsection (4), but the aggregate 44 liability of the association with respect to one life mayshall45 not exceed the following: 46 (a) For life insurance, $100,000 in net cash surrender and 47 net cash withdrawal values.for life insurance,48 (b) For deferred annuity contracts, $250,000 in net cash 49 surrender and net cash withdrawal values.for deferred annuity50contracts, or51 (c) For all benefits, $300,000,for all benefitsincluding 52 cash values, except as provided in paragraph (d)with respect to53any one life. 54 (d) For basic hospital expense health insurance policies, 55 basic medical-surgical health insurance policies, or major 56 medical expense health insurance policies, $500,000. 57 58 In no event isshallthe associationbeliable for any penalties 59 or interest. 60 Section 3. Paragraph (a) of subsection (3) of section 61 631.718, Florida Statutes, is amended to read: 62 631.718 Assessments.— 63 (3)(a) The amount of any Class A assessment mustshallbe 64 determined by the board and may be made on a non-pro rata basis. 65 The assessment may not be credited against future insolvency 66 assessments and may not exceed $500$250per member insurer in 67 any one calendar year. 68 Section 4. This act shall take effect July 1, 2017.