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
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5 ORIGINAL STAMP BELOW
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11 Representative(s) Lippman offered the following:
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13 Amendment (with title amendment)
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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
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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.
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24 And the title is amended as follows:
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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
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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;
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File original & 9 copies 04/17/98
hbd0022 04:03 pm 03665-0100-531627