Senate Bill 1560c1

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



    Florida Senate - 2000                           CS for SB 1560

    By the Committee on Banking and Insurance; and Senator Horne





    311-1754-00

  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                           CS for SB 1560
    311-1754-00




  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         (d)  The amount of bail bond premium included on the

18  surety line of the annual statement filed with the department.

19         (5)  This section does not affect the reporting or

20  payment of insurance premium taxes under ss. 624.509,

21  624.5091, and 624.5092, and the insurance premium tax and

22  related excise taxes shall continue to be calculated using

23  gross bail bond premiums.

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

25  and shall apply to premiums written for calendar year 2000 and

26  thereafter.

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






    Florida Senate - 2000                           CS for SB 1560
    311-1754-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       Committee Substitute for
  2                         Senate Bill 1560

  3

  4  1.    Requires insurers to report in the notes of the
          financial statements the amount of bail bond premium
  5        included on the surety line of the annual statement
          filed with the Department of Insurance.  The reporting
  6        of this information is necessary for calculating the
          premium tax liability.
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    2.    Specifies that the bill does not affect the reporting or
  8        payment of insurance premium taxes under ss. 624.509,
          624.5091, and 624.5092, and the insurance premium tax
  9        and related excise taxes would continue to be calculated
          using the gross bail bond premiums.
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    3.    Specifies that the act would apply to premiums written
11        for calendar year 2000 and thereafter.

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