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





                                                  SENATE AMENDMENT

    Bill No. CS for SB 2522

    Amendment No.    

                            CHAMBER ACTION
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11  Senator Holzendorf moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 16, between lines 20 and 21,

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16  insert:

17         Section 2.  Subsection (2) of section 624.4071, Florida

18  Statutes, is amended to read:

19         624.4071  Special purpose homeowner insurance

20  company.--

21         (2)  A special purpose homeowner insurance company must

22  have a parent company, and both companies must meet the

23  requirements of this subsection in order for the subsidiary to

24  qualify for and maintain a certificate of authority under this

25  section.

26         (a)  The parent company must be an admitted insurer in

27  at least one state in the United States and must have over $50

28  million in capital and surplus.

29         (b)  The parent company must have and maintain at least

30  51 percent of the equity and at least 51 percent of the

31  control of the special purpose homeowner insurance company.

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    10:57 AM   04/26/99                             s2522c1c-02m0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 2522

    Amendment No.    





 1         (c)  An insurer not authorized to transact business in

 2  this state, but that otherwise meets the requirements of this

 3  section, may apply as a special purpose homeowner insurance

 4  company.

 5         (d)  The special purpose homeowner insurance company

 6  must:

 7         1.  Have and maintain at least $10 million in surplus

 8  and otherwise satisfy the requirements of s. 624.4095. A

 9  special purpose homeowner insurance company that has

10  maintained a Certificate of Authority for at least one year

11  may reduce its surplus to $5 million if the special purpose

12  homeowner insurance company's ratio of actual or projected

13  annual written premiums adjusted in accordance with s.

14  624.4095(4) to current or projected surplus as to

15  policyholders as adjusted in accordance with s. 624.4095(5)

16  does not exceed 7 to 1 for gross written premiums or does not

17  exceed 3 to 1 for net written premiums.

18         2.  Be a member of the Florida Insurance Guaranty

19  Association and the Florida Hurricane Catastrophe Fund, and be

20  subject to any of their required assessments and premium

21  charges. However, a special purpose homeowner insurance

22  company may not be a member of the Florida Windstorm

23  Underwriting Association or the Florida Residential Property

24  and Casualty Joint Underwriting Association, and neither the

25  company nor its policyholders are subject to any assessments

26  by these associations except for emergency assessments

27  collected from policyholders pursuant to s.

28  627.351(2)(b)2.d.(III) and (6)(b)3.d. For the sole purpose of

29  levying and collecting emergency assessments and determining

30  the statewide written premium for property insurance, special

31  purpose homeowner insurance companies shall be considered

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    10:57 AM   04/26/99                             s2522c1c-02m0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 2522

    Amendment No.    





 1  member insurers of the Florida Windstorm Underwriting

 2  Association and the Florida Residential Property and Casualty

 3  Joint Underwriting Association. For the sole purpose of

 4  reimbursement under s. 215.555(4)(e)3., a special purpose

 5  homeowner insurance company shall be considered a limited

 6  apportionment company as defined under s. 627.351(2)(b)3.

 7         3.  Offer coverage for all perils, including windstorm,

 8  in providing residential coverage as defined in s. 627.4025. A

 9  special purpose homeowner insurance company's rates must be

10  filed with the department. After a period of 1 year from the

11  date a company receives a certificate of authority, the

12  company's rates are subject to department approval under s.

13  627.062.

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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 2, line 5, after the semicolon

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20  insert:

21         amending s. 624.4071, F.S.; providing

22         qualifications for special purpose homeowner

23         insurance companies;

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    10:57 AM   04/26/99                             s2522c1c-02m0a