House Bill 0093
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 93
By Representative Starks
1 A bill to be entitled
2 An act relating to title insurance reserve;
3 amending s. 625.111, F.S.; providing a formula
4 for releasing unearned premium reserve over a
5 period of years; providing an effective date.
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7 Be It Enacted by the Legislature of the State of Florida:
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9 Section 1. Subsections (1) and (2) of section 625.111,
10 Florida Statutes, are amended to read:
11 625.111 Title insurance reserve.--In addition to an
12 adequate reserve as to outstanding losses, as required under
13 s. 625.041, a title insurer shall establish, segregate, and
14 maintain a guaranty fund or unearned premium reserve as
15 hereinafter provided. The sums hereinafter required to be
16 reserved for unearned premiums on title guarantees and
17 policies at all times and for all purposes shall be considered
18 and constitute unearned portions of the original premiums and
19 shall be charged as a reserve liability of such insurer in
20 determining its financial condition. While such sums are so
21 reserved, they shall be withdrawn from the use of the insurer
22 for its general purposes, impressed with a trust in favor of
23 the holders of title guarantees and policies, and held
24 available for reinsurance of the title guarantees and policies
25 in the event of the insolvency of the insurer. Nothing herein
26 contained shall preclude such insurer from investing such
27 reserve in investments authorized by law for such an insurer,
28 and the income from such invested reserve shall be included in
29 the general income of the insurer to be used by such insurer
30 for any lawful purpose.
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CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 93
204-199-99
1 (1) This unearned premium reserve shall consist of not
2 less than an amount computed as follows:
3 (a) The amount of the unearned premium reserve on June
4 30, 1999 1992; and
5 (b) A sum equal to 30 cents for each $1,000 of net
6 retained liability under each title insurance policy on a
7 single risk written on or after July 1, 1999 1992.
8 (2)(a) The adequacy of the unearned premium reserve
9 existing on December 31, 1999 1992, shall be determined in
10 accordance with the unearned premium reserve requirements
11 existing on July 1, 1999 1992, and said unearned premium
12 reserve shall be released from the reserve and restored to net
13 profits over a period of 20 years in 12 equal annual
14 installments, beginning with calendar year 2000, as follows:
15 30 percent of the aggregate sum on July 1 of the year next
16 succeeding the year of addition; 15 percent of the aggregate
17 sum on July 1 of the next succeeding year; 10 percent of the
18 aggregate sum on July 1 of each of the next 2 succeeding
19 years; 5 percent of the aggregate sum on July 1 of each of the
20 next 2 succeeding years; 3 percent of the aggregate sum on
21 July 1 of each of the next 2 succeeding years; 2 percent of
22 the aggregate sum on July 1 of each of the next 7 succeeding
23 years; and 1 percent of the aggregate sum on July 1 of the
24 next 5 succeeding years 1993.
25 (b) With respect to amounts reserved under this
26 section on or after January 1, 2000 1993, the insurer shall
27 release over a period of 20 years and restore to net profits
28 amounts reserved during a particular calendar year in 12 equal
29 annual installments, beginning in the subsequent calendar
30 year, as follows: 30 percent of the aggregate sum on July 1 of
31 such subsequent year; 15 percent of the aggregate sum on July
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CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 93
204-199-99
1 1 of the next succeeding year; 10 percent of the aggregate sum
2 on July 1 of each of the next 2 succeeding years; 5 percent of
3 the aggregate sum on July 1 of each of the next 2 succeeding
4 years; 3 percent of the aggregate sum on July 1 of each of the
5 next 2 succeeding years; 2 percent of the aggregate sum on
6 July 1 of each of the next 7 succeeding years; and 1 percent
7 of the aggregate sum on July 1 of the next 5 succeeding years.
8 Section 2. This act shall take effect July 1, 1999.
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11 HOUSE SUMMARY
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Provides a formula for releasing and restoring to net
13 profits unearned premium reserve over a period of 20
years beginning in calendar year 2000. See bill for
14 details.
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