Florida Senate - 2013                                     SB 356
       
       
       
       By Senator Abruzzo
       
       
       
       
       25-00322-13                                            2013356__
    1                        A bill to be entitled                      
    2         An act relating to financial guaranty insurance
    3         corporations; amending ss. 627.971 and 627.972, F.S.;
    4         providing that such corporations include licensed
    5         mutual insurers as well as licensed stock insurers;
    6         providing an effective date.
    7  
    8  Be It Enacted by the Legislature of the State of Florida:
    9  
   10         Section 1. Subsection (6) of section 627.971, Florida
   11  Statutes, is amended to read:
   12         627.971 Definitions.—As used in this part:
   13         (6) “Financial guaranty insurance corporation” means a
   14  stock or mutual insurer licensed to transact financial guaranty
   15  insurance business in this state.
   16         Section 2. Subsection (1) of section 627.972, Florida
   17  Statutes, is amended to read:
   18         627.972 Organization; financial requirements.—
   19         (1) A financial guaranty insurance corporation must be
   20  organized and licensed in the manner prescribed in this code for
   21  stock or mutual property and casualty insurers except that:
   22         (a) A corporation organized to transact financial guaranty
   23  insurance may, subject to the provisions of this code, be
   24  licensed to transact:
   25         1. Residual value insurance, as defined by s. 624.6081;
   26         2. Surety insurance, as defined by s. 624.606;
   27         3. Credit insurance, as defined by s. 624.605(1)(i); and
   28         4. Mortgage guaranty insurance as defined in s. 635.011 if,
   29  provided that the provisions of chapter 635 are met.
   30         (b)1. Prior to the issuance of a license, a corporation
   31  must submit to the office for approval, a plan of operation
   32  detailing:
   33         a. The types and projected diversification of guaranties to
   34  be issued;
   35         b. The underwriting procedures to be followed;
   36         c. The managerial oversight methods;
   37         d. The investment policies; and
   38         e. Any other matters prescribed by the office.;
   39         2. An insurer that which is writing only the types of
   40  insurance allowed under this part on July 1, 1988, and otherwise
   41  meets the requirements of this part, is exempt from the
   42  requirements of this paragraph.
   43         (c) An insurer transacting financial guaranty insurance is
   44  subject to all provisions of this code which that are applicable
   45  to property and casualty insurers to the extent that those
   46  provisions are not inconsistent with this part.
   47         (d) The investments of an insurer transacting financial
   48  guaranty insurance in any entity insured by the corporation may
   49  not exceed 2 percent of its admitted assets as of the end of the
   50  prior calendar year.
   51         (e) An insurer transacting financial guaranty insurance may
   52  only assume those lines of insurance for which it is licensed to
   53  write direct business.
   54         Section 3. This act shall take effect upon becoming a law.