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





                                                   HOUSE AMENDMENT

                                                   Bill No. HB 775

    Amendment No. 29 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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10                                                                

11  Representative(s) Byrd and Feeney offered the following:

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13         Substitute Amendment for Amendment (031483) (with title

14  amendment) 

15         On page 35, line 3, of the bill

16

17  insert:

18         Section 22.  (1)  The Department of Insurance shall,

19  after issuing a request for proposals, contract with a

20  national independent actuarial firm to conduct an actuarial

21  analysis, consistent with generally accepted actuarial

22  practices, of the expected reduction in liability judgments,

23  settlements, and related costs resulting from the provisions

24  of this act. The analysis must be based on credible loss-cost

25  data derived from the settlement or adjudication of liability

26  claims, other than liability claims insured under private

27  passenger automobile insurance or personal lines residential

28  property insurance, accruing after October 1, 1999. The

29  analysis must include an estimate of the percentage decrease

30  in such judgments, settlements, and costs by type of coverage

31  affected by this act, including the time period when such

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    File original & 9 copies    03/08/99
    hju0004                     04:59 pm         00775-0062-395301




                                                   HOUSE AMENDMENT

                                                   Bill No. HB 775

    Amendment No. 29 (for drafter's use only)





 1  savings or reductions are expected.

 2         (2)  The report must be completed and submitted to the

 3  Department of Insurance by March 1, 2001.

 4         (3)  After March 1, 2001, the Department of Insurance

 5  shall review the filed rates of insurers and underwriting

 6  profits and losses for Florida liability insurance businesses

 7  and shall require any prospective rate modifications that the

 8  department deems necessary, consistent with the applicable

 9  rating law, in order to cause the rates of any specific

10  insurer to comply with the applicable rating law. The

11  department shall require each liability insurer's first rate

12  filing after March 1, 2001, other than rate filings for

13  private passenger automobile insurance or personal lines

14  residential property insurance, to include specific data on

15  the impact of this act on the insurer's liability judgments,

16  settlements, and costs for the purpose of enabling the

17  department and the Legislature to accurately monitor and

18  evaluate the effects of this act.

19         (4)  The report under subsection (1) is admissible in

20  any proceedings relating to a liability insurance rate filing

21  if the actuary who prepared the report is made available by

22  the department to testify regarding the report's preparation

23  and validity. Each party shall otherwise bear its own cost of

24  any such proceeding.

25         (5)  This section does not limit the authority of the

26  department to order an insurer to refund excessive profits, as

27  provided in sections 627.066 and 627.215, Florida Statutes.

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

31  And the title is amended as follows:

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    File original & 9 copies    03/08/99
    hju0004                     04:59 pm         00775-0062-395301




                                                   HOUSE AMENDMENT

                                                   Bill No. HB 775

    Amendment No. 29 (for drafter's use only)





 1         On page 4, line 15, after the word, "employment;",

 2

 3  insert:

 4         requiring the Department of Insurance to

 5         contract with an actuarial firm to conduct an

 6         actuarial analysis of expected reductions in

 7         judgments and related costs resulting from

 8         litigation reforms; specifying the basis and

 9         due date for the actuarial report; providing

10         for a review of rate filings by certain types

11         of insurers after a specified date; providing

12         that such provisions do not limit the refund of

13         excessive profits by certain insurers;

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    File original & 9 copies    03/08/99
    hju0004                     04:59 pm         00775-0062-395301