Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 1168
       
       
       
       
       
       
                                Ì960354'Î960354                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  01/23/2018           .                                
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       The Committee on Banking and Insurance (Steube) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete line 195
    4  and insert:
    5         Section 5. (1)Within 60 days after the effective date of
    6  this section, the Office of Insurance Regulation shall enter
    7  into a contract with an independent consultant to calculate the
    8  savings expected as a result of this act. The contract must
    9  require the use of generally accepted actuarial techniques and
   10  standards in determining the expected impact on losses and
   11  expenses. By September 15, 2018, the office shall submit to the
   12  Governor, the President of the Senate, and the Speaker of the
   13  House of Representatives a report concerning the results of the
   14  independent consultant’s calculations.
   15         (2)By October 1, 2018, an insurer writing property
   16  insurance in this state shall make a rate filing with the Office
   17  of Insurance Regulation. A rate certification does not satisfy
   18  this requirement. If the insurer requests a rate in excess of a
   19  10 percent reduction as applied to the current rate in its
   20  overall base rate for property insurance, the insurer must
   21  include in its rate filing a detailed explanation of the reasons
   22  for its failure to achieve a 10 percent reduction.
   23         (3)By January 1, 2020, an insurer writing property
   24  insurance in this state shall make a rate filing with the Office
   25  of Insurance Regulation. A rate certification does not satisfy
   26  this requirement. If the insurer requests a rate in excess of a
   27  25 percent reduction as applied to the rate in effect as of July
   28  1, 2018, in its overall base rate for property insurance since
   29  July 1, 2018, the insurer must include in its rate filing a
   30  detailed explanation of the reasons for its failure to achieve a
   31  25 percent reduction.
   32         (4)If an insurer fails to provide the detailed explanation
   33  required by subsection (2) or subsection (3), the Office of
   34  Insurance Regulation must order the insurer to stop writing new
   35  property insurance policies in this state until it provides the
   36  required explanation.
   37         (5)The sum of $200,000 of nonrecurring revenue is
   38  appropriated from the Insurance Regulatory Trust Fund to the
   39  Office of Insurance Regulation for the purpose of implementing
   40  the requirements of subsection (1) during the 2017-2018 fiscal
   41  year. Any unexpended balance of the appropriation at the end of
   42  the fiscal year shall be carried forward and be available for
   43  expenditure for that purpose during the 2018-2019 fiscal year.
   44  Notwithstanding s. 287.057, Florida Statutes, the office may
   45  retain an independent consultant to implement the requirements
   46  of subsection (1) without a competitive solicitation.
   47         (6)This section shall take effect upon this act becoming a
   48  law.
   49         Section 6. Except as otherwise expressly provided in this
   50  act and except for this section, which shall take effect upon
   51  this act becoming a law, this act shall take effect July 1,
   52  2018.
   53  
   54  ================= T I T L E  A M E N D M E N T ================
   55  And the title is amended as follows:
   56         Delete line 45
   57  and insert:
   58         applicability; requiring the office, within a
   59         specified timeframe, to contract with an independent
   60         consultant to calculate expected savings as a result
   61         of this act; requiring the contract to require the use
   62         of certain actuarial techniques and standards;
   63         requiring the office to submit a certain report to the
   64         Governor and the Legislature by a specified date;
   65         requiring property insurers to make rate filings with
   66         the office by specified dates; providing construction;
   67         requiring an insurer to include a certain explanation
   68         in its rate filing under certain circumstances;
   69         requiring the office to order an insurer that fails to
   70         provide such explanation to stop writing new property
   71         insurance policies until it provides the explanation;
   72         providing an appropriation; authorizing the office to
   73         retain the consultant without a competitive
   74         solicitation; providing effective dates.