SENATE AMENDMENT

    Bill No. CS for SB 994

    Amendment No.    

                            CHAMBER ACTION
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11  Senator Silver moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 6, line 19, delete that line

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16  and insert:

17         Section 6.  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)  The provisions of section 627.062, Florida

31  Statutes, to the contrary notwithstanding, within 60 days

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 994

    Amendment No.    





 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 be within the range of a

 5  6 to 15 percent reduction. When an insurer files to reduce its

 6  rates as required by this subsection, the insurer shall file a

 7  certification with the department that the rate adjustment has

 8  been made, together with copies of the amended rating manual

 9  pages disclosing the adjustment. In lieu of filing to reduce

10  rates by the percentage required under this subsection, an

11  insurer may elect to refile its rates, provided the insurer

12  demonstrates that the level of percentage savings to be passed

13  on to policyholders in view of the savings resulting from such

14  favorable tax ruling is justified and produces a rate

15  differential other than such range of percentage reduction.

16         (3)  This section shall take effect July 1, 1998.

17         Section 7.  Except for this section and section 6,

18  which shall take effect July 1, 1998, this act shall take

19  effect October 1, 1998.

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

23  And the title is amended as follows:

24         On page 1, line 2, after the semicolon,

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26  and insert:

27         requiring insurers to reduce rates for

28         residential coverage due to a favorable ruling

29         received by the Florida Hurricane Catastrophe

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

31         the Internal Revenue Service that it may issue

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 994

    Amendment No.    





 1         tax-exempt bonds; providing procedures;

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