Senate Bill 1560

    Florida Senate - 2000                                  SB 1560

    By Senator Horne





    6-1158-00                                          See HB 1115

  1                      A bill to be entitled

  2         An act relating to bail bond premiums; creating

  3         s. 624.4094, F.S.; requiring reporting of net

  4         amounts of certain bail bond premiums;

  5         providing a minimum requirement for direct

  6         written premiums for bail bonds; providing

  7         application; providing reporting requirements

  8         for assumed premiums; requiring recordkeeping;

  9         requiring disclosure of certain information in

10         annual statements; providing an effective date.

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12  Be It Enacted by the Legislature of the State of Florida:

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14         Section 1.  Section 624.4094, Florida Statutes, is

15  created to read:

16         624.4094  Bail bond premiums.--

17         (1)  The Legislature finds that a significant portion

18  of bail bond premiums is retained by the licensed bail bond

19  agents or licensed managing general agents. For purposes of

20  reporting in financial statements required to be filed with

21  the department pursuant to s. 624.424, direct written premiums

22  for bail bonds by a domestic insurer in this state shall be

23  reported net of any amounts retained by licensed bail bond

24  agents or licensed managing general agents. However, in no

25  case shall the direct written premiums for bail bonds be less

26  than 6.5 percent of the total consideration received by the

27  agent for all bail bonds written by the agent. This subsection

28  also applies to any determination of compliance with s.

29  624.4095.

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






    Florida Senate - 2000                                  SB 1560
    6-1158-00                                          See HB 1115




  1         (2)  Premiums assumed by a domestic insurer shall be

  2  reported consistent with subsections (1) and (4) for purposes

  3  of filing financial statements with the department.

  4         (3)  Each domestic bail bond insurer shall keep

  5  complete and accurate records of the total consideration paid

  6  for all bail bonds written by such insurer.

  7         (4)  Each domestic bail bond insurer shall disclose the

  8  following information in the notes to the financial statement

  9  in the insurer's annual statement filed with the department.

10         (a)  The gross bail bond premiums written in each state

11  by agents for the company.

12         (b)  The amount of premium taxes incurred by the

13  company in each state.

14         (c)  Total consideration withheld by agents and not

15  reported as an expense by the insurer in financial statements

16  filed with the department.

17         Section 2.  This act shall take effect October 1, 2000.

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20                          HOUSE SUMMARY

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      Requires direct written premiums for bail bonds by a
22    domestic insurer in this state to be reported net of any
      amounts retained by licensed bail bond agents or licensed
23    managing general agents and requires direct written
      premiums for bail bonds to be not less than 6.5 percent
24    of the total consideration received by the agent for all
      bail bonds written by the agent. Specifies reporting
25    requirements and information to be disclosed in annual
      statements.
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