CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

    hbd-32                                        Bill No. HB 3665

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
 1                                 .
                                   .
 2                                 .
                                   .
 3                                 .
                                   .
 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Lippman offered the following:

12

13         Amendment (with title amendment) 

14         On page 1, line 21,

15

16  insert:

17         Section 1.  Legislative findings; required rate

18  reductions.--

19         (1)  The Legislature finds that the capability of the

20  Florida Hurricane Catastrophe Fund established under section

21  215.555, Florida Statutes, to provide reinsurance coverage to

22  insurers is substantially enhanced by its receipt of

23  confirmation from the Internal Revenue Service that it may

24  issue tax-exempt bonds. This event results in cost savings to

25  insurers in the writing of residential property insurance. It

26  is fair and just and the interest of the public welfare

27  requires that these savings be passed on to residential

28  property insurance policyholders in the form of premium

29  reductions.

30         (2)(a)  The provisions of section 627.062, Florida

31  Statutes, to the contrary notwithstanding, within 60 days

                                  1

    File original & 9 copies    04/17/98
    hbd0022                     04:03 pm         03665-0100-531627




                                                   HOUSE AMENDMENT

    hbd-32                                        Bill No. HB 3665

    Amendment No.     (for drafter's use only)





 1  after July 1, 1998, each insurer writing residential coverage

 2  in this state as described in section 627.4025, Florida

 3  Statutes, with respect to such coverage, shall reduce its rate

 4  by a justified percentage which shall approximate a reduction

 5  within a range of 6 to 15 percent. When an insurer files to

 6  reduce its rates as required by this subsection, the insurer

 7  shall file a certification with the department that the rate

 8  adjustment has been made, together with copies of the amended

 9  rating manual pages disclosing the adjustment. In lieu of

10  filing to reduce rates by he percentage required under this

11  subsection, an insurer may elect to refile its rates, provided

12  the insurer demonstrates that the level of percentage savings

13  to be passed on to policyholders in view of the savings

14  resulting from such favorable tax ruling is justified and

15  produces a rate differential other than such range of

16  percentage reduction.

17         (b)  A rate filing made pursuant to this section shall

18  not be subject to rate arbitration under s. 627.062(6).

19         (3)  This section shall take effect upon becoming a

20  law.

21

22

23  ================ T I T L E   A M E N D M E N T ===============

24  And the title is amended as follows:

25         On page 1, line 2,

26

27  insert after the semicolon:

28         requiring insurers to reduce rates for

29         residential coverage due to a favorable ruling

30         received by the Florida Hurricane Catastrophe

31         Fund established under s. 215.555, F.S., from

                                  2

    File original & 9 copies    04/17/98
    hbd0022                     04:03 pm         03665-0100-531627




                                                   HOUSE AMENDMENT

    hbd-32                                        Bill No. HB 3665

    Amendment No.     (for drafter's use only)





 1         the Internal Revenue Service that it may issue

 2         tax-exempt bonds; providing procedures;

 3         providing for nonapplication of rate

 4         arbitration for certain rate filings; providing

 5         an effective date;

 6

 7

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  3

    File original & 9 copies    04/17/98
    hbd0022                     04:03 pm         03665-0100-531627