HOUSE AMENDMENT

                                                  Bill No. HB 1753

    Amendment No. 2 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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11  The Committee on Insurance offered the following:

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13         Amendment 

14         On page 12, lines 21-29

15  remove from the bill:  all of said lines

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17  and insert in lieu thereof:

18         4.  The lifetime loss ratios in subparagraphs 1. and 2.

19  may be adjusted in accordance with the following formula:

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21  R' = (A - 25I) R/A

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23  where:

24  R = the loss ratio from subparagraphs 1. and 2.;

25  A = the average annualized premium per individual policy or

26  per group certificate;

27  I = (CPI-U, year N-1)/103.9;

28  R' = the adjusted loss ratio.

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30  R' cannot be more than 10 percentage points less than R nor

31  less than 50 percent, except that R' cannot be less than 45

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    File original & 9 copies    04/19/99
    hin0002                     06:15 pm         01753-in  -853515




                                                   HOUSE AMENDMENT

                                                  Bill No. HB 1753

    Amendment No. 2 (for drafter's use only)





 1  percent as to accident only non-cancellable policies. The

 2  CPI-U is the consumer price index for all urban consumers, for

 3  all items and for all regions of the U. S. combined, as

 4  determined by the U. S. Department of Labor, Bureau of

 5  Statistics as of September of each year.  Year N-1 is the

 6  calendar year immediately preceding the calendar year (N) in

 7  which the rate filing is submitted in Florida.

 8         5.  Blanket insurance is exempt from the loss ratios

 9  described in subparagraphs 1.-3. The minimum loss ratio for

10  blanket insurance is 65 percent.

11         6.  Medicare supplement and long-term-care insurance

12  are exempt from the loss ratios described in subparagraphs

13  1.-3. The minimum loss ratios for Medicare supplement

14  insurance must be established in accordance with s. 627.674.

15  The minimum loss ratios for long-term-care insurance shall be

16  established in accordance with s. 627.9407.

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    File original & 9 copies    04/19/99
    hin0002                     06:15 pm         01753-in  -853515