CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS/HB 4047
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Grant moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 3, between lines 8 and 9,
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17 Section 2. Paragraph (f) of subsection (2) of section
18 624.316, Florida Statutes, is amended to read:
19 624.316 Examination of insurers.--
20 (2)
21 (f)1.a. An examination under this section must be
22 conducted at least once every year with respect to a domestic
23 insurer that has continuously held a certificate of authority
24 for less than 3 years. The examination must cover the
25 preceding fiscal year or the period since the last examination
26 of the insurer. The department may limit the scope of the
27 examination if the insurer has demonstrated sufficient
28 compliance as determined under subparagraph 3.
29 b. The department may not accept an independent
30 certified public accountant's audit report in lieu of an
31 examination required by this subparagraph.
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1 c. An insurer may not be required to pay more than
2 $25,000 to cover the costs of any one examination under this
3 subparagraph.
4 2. An examination under this section must be conducted
5 not less frequently than once every 5 years with respect to an
6 insurer that has continuously held a certificate of authority,
7 without a change in ownership subject to s. 624.4245 or s.
8 628.461, for more than 15 years and has demonstrated
9 sufficient compliance as determined under subparagraph 3. The
10 examination must cover the preceding 5 fiscal years of the
11 insurer or the period since the last examination of the
12 insurer. This subparagraph does not limit the ability of the
13 department to conduct more frequent examinations.
14 3. The department must, by rule, adopt procedures and
15 criteria for determining if an insurer has demonstrated
16 sufficient compliance with this code and cooperation with the
17 department. The rules must include consideration of such
18 factors as financial strength, timeliness, consumer service,
19 economic and community contributions and support,
20 responsiveness to department requests, and any other relevant
21 factors. The department must annually publish and disseminate
22 a listing of those insurers found to demonstrate sufficient
23 compliance under the rules, including special recognition for
24 community contributions and support.
25 Section 3. Paragraph (a) of subsection (2) of section
26 627.7275, Florida Statutes, is amended to read:
27 627.7275 Motor vehicle property damage liability.--
28 (2)(a) Insurers writing motor vehicle insurance in
29 this state shall make available, subject to the insurers'
30 usual underwriting restrictions, coverage under policies as
31 described in subsection (1) of this section to any applicant
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Amendment No.
1 for private passenger motor vehicle insurance coverage who is
2 seeking the coverage in order to reinstate the applicant's
3 driving privileges in this state when the driving privileges
4 were revoked or suspended pursuant to s. 316.646 or s. 627.733
5 due to the failure of the applicant to maintain required
6 security. The policy shall be issued for a period of at least
7 6 months and as to the minimum coverages required under this
8 section shall not be cancelable by the insured for any reason
9 or by the insurer after a period not to exceed 30 days during
10 which the insurer must complete underwriting of the policy.
11 After the insurer has completed underwriting the policy within
12 the 30-day period, the insurer shall notify the Department of
13 Highway Safety and Motor Vehicles that the policy is in full
14 force and effect and the policy shall not be cancelable for
15 the remainder of the policy period. A premium shall be
16 collected and coverage shall be in effect for the 30-day
17 period during which the insurer is completing the underwriting
18 of the policy whether or not the person's driver license,
19 motor vehicle tag, and motor vehicle registration are in
20 effect. Once the noncancelable provisions of the policy
21 become effective, the coverage or risk shall not be changed
22 during the policy period and the premium shall be
23 nonrefundable fully earned. If, during the pendency of the
24 2-year proof of insurance period required under s. 627.733(7),
25 the insured obtains additional coverage or coverage for an
26 additional risk or changes territories, the insured then she
27 or he must obtain a new 6-month noncancelable policy in
28 accordance with the provisions of this section. However, if
29 the insured must obtain a new 6-month policy and obtains the
30 policy from the same insurer, the policyholder shall receive
31 credit on the new policy for any premium paid on the
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1 previously issued policy.
2 Section 4. Subsection (4) is added to s. 624.426,
3 Florida Statutes, to read:
4 624.426 Exceptions to resident agent and
5 countersignature law.--Section 624.425 does not apply to:
6 (4) Policies of insurance issued by insurers whose
7 agents represent only one company or group of companies under
8 common ownership if a company within one group is transferring
9 policies to another company within the same group and the
10 agent of record remains the same.
11 Section 5. Subsection (1) of section 627.9126, Florida
12 Statutes, is amended to read:
13 627.9126 Annual reports of information by liability
14 insurers required.--
15 (1) Each insurer transacting commercial multiperil,
16 products liability, commercial automobile liability, private
17 passenger automobile liability, or other line of liability
18 insurance shall maintain information as specified in this
19 section. Such information shall be maintained for each line of
20 insurance and for direct Florida business only. The department
21 may shall annually conduct a sampling of claims or actions for
22 damages for personal injury or property damage claimed to have
23 been caused by error, omission, or negligence of insureds if
24 the claim resulted in:
25 (a) A final judgment in any amount.
26 (b) A settlement in any amount.
27 (c) A final disposition not resulting in payment on
28 behalf of the insured.
29 Section 6. Section 627.913, Florida Statutes, is
30 amended to read:
31 627.913 Reports of information by products liability
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1 insurers required.--
2 (1) The department may require any insurer authorized
3 to write a policy of products liability insurance in the state
4 to shall transmit the following information specified in this
5 section, based on its statewide products liability insurance
6 writings. Upon request of the department, an insurer shall,
7 within 60 days, submit to the department a report that
8 contains the following information, to the department each
9 year in the annual report of such insurer:
10 (1)(a) Premiums written;
11 (2)(b) Premiums earned;
12 (3)(c) Unearned premiums;
13 (4)(d) The dollar amount of claims paid;
14 (5)(e) Incurred claims, not including claims incurred
15 but not reported;
16 (6)(f) Claims closed without payment, and the amount
17 reserved for such claims;
18 (7)(g) Loss reserves for all claims except claims
19 incurred but not reported;
20 (8)(h) Reserves for claims incurred but not reported;
21 (9)(i) Losses paid as a percentage of the amount
22 reserved for such losses;
23 (10)(j) Net investment gain or loss and other income
24 gain or loss allocated to products liability lines according
25 to the allocation formula used in the annual insurance expense
26 exhibit;
27 (11)(k) Underwriting income or loss;
28 (12)(l) Actual expenses in detail, including, but not
29 limited to, loss adjustment expense; commissions; general
30 expense; and advertising, home office, and defense costs;
31 (13)(m) Claims settled after a suit was filed;
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1 (14)(n) Claims paid based on a judgment; and
2 (15)(o) Judgments appealed by the insurer, together
3 with the total results of such appeals.
4 (2) The department shall provide a summary of
5 information provided pursuant to subsection (1) in its annual
6 report.
7 (3) In the first year that an insurer makes a report
8 pursuant to subsection (1), the insurer shall provide only the
9 information required by paragraphs (a) through (l) of
10 subsection (1) and shall provide such information for the
11 current year and the 3 previous years.
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13 (Redesignate subsequent sections.)
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16 ================ T I T L E A M E N D M E N T ===============
17 And the title is amended as follows:
18 On page 1, line 11, after the semicolon
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20 insert:
21 amending s. 624.316, F.S.; deleting certain
22 rulemaking authority of the Department of
23 Insurance relating to insurer compliance;
24 amending s. 627.7275, F.S.; modifying coverage
25 requirements and premiums relating to motor
26 vehicle property damage liability; amending s.
27 624.426, F.S.; providing that certain
28 transferred policies are exempt from the
29 resident agent and countersignature law;
30 amending s. 627.9126, F.S.; deleting the
31 requirement that the Department of Insurance
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Amendment No.
1 conduct an annual sampling of certain claims
2 information required to be maintained by
3 liability insurers; amending s. 627.913, F.S.;
4 deleting the requirement that insurers file
5 product liability insurance reports;
6 authorizing the department to require such
7 reports upon request;
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