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





                                                   HOUSE AMENDMENT

                                                Bill No. CS/HB 247

    Amendment No. 1 (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) Waters offered the following:

12

13         Amendment (with title amendment) 

14         On page 2, between lines 10 & 11 of the bill

15

16  insert:

17         Section 1.  Paragraphs (a) and (d) of subsection (4) of

18  section 215.555, Florida Statutes, are amended to read:

19         215.555  Florida Hurricane Catastrophe Fund.--

20         (4)  REIMBURSEMENT CONTRACTS.--

21         (a)  The board shall enter into a contract with each

22  insurer writing covered policies in this state to provide to

23  the insurer the reimbursement described in paragraph (b) and

24  (d), in exchange for the reimbursement premium paid into the

25  fund under subsection (5). As a condition of doing business in

26  this state, each such insurer shall enter into such a

27  contract.

28         (d)1.  For purposes of determining potential liability

29  and to aid in the sound administration of the fund, the

30  contract shall require each insurer to report such insurer's

31  losses from each covered event on an interim basis, as

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    File original & 9 copies    04/03/00
    hin0002                     12:56 pm         00247-0051-163937




                                                   HOUSE AMENDMENT

                                                Bill No. CS/HB 247

    Amendment No. 1 (for drafter's use only)





 1  directed by the board.  The contract shall require the insurer

 2  to report to the board no later than December 31 of each year,

 3  and quarterly thereafter, its reimbursable losses from covered

 4  events for the year. The contract shall require the board to

 5  determine and pay, as soon as practicable after receiving

 6  these reports of reimbursable losses, the initial amount of

 7  reimbursement due and adjustments to this amount based on

 8  later loss information. The adjustments to reimbursement

 9  amounts shall require the board to pay, or the insurer to

10  return, amounts reflecting the most recent calculation of

11  losses.

12         2.  In determing reimbursements pursuant to this

13  subsection, the contract shall provide that If the board

14  determines that the projected year-end balance of the fund,

15  together with the amount that the board determines that it is

16  possible to raise through revenue bonds issued under

17  subsection (6) and through other borrowing and financing

18  arrangements under paragraph (7)(b), are insufficient to pay

19  reimbursement to all insurers at the level promised in the

20  contract, the board shall:

21         a.  First reimburse insurers writing covered policies,

22  which insurers are in full compliance with this section and

23  have petitioned the Department of Insurance and qualified as

24  limited apportionment companies under s. 627.351(2)(b)3.  The

25  amount of such reimbursement shall be the lesser of $10

26  million or an amount equal to 10 times the insurer's

27  reimbursement premium for the current year.  The amount of

28  reimbursement paid under this sub-subparagraph may not exceed

29  the full amount of reimbursement promised in the reimbursement

30  contract. This sub-subparagraph does not apply with respect to

31  any contract year in which the year-end projected cash balance

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    File original & 9 copies    04/03/00
    hin0002                     12:56 pm         00247-0051-163937




                                                   HOUSE AMENDMENT

                                                Bill No. CS/HB 247

    Amendment No. 1 (for drafter's use only)





 1  of the fund, exclusive of any bonding capacity of the fund,

 2  exceeds $2 billion. Only one member of any insurer group may

 3  receive reimbursement under this sub-subparagraph.

 4         b.  Next pay to each insurer such insurer's projected

 5  payout, which is the amount of reimbursement it is owed, up to

 6  an amount equal to the insurer's share of the actual premium

 7  paid for that contract year, multiplied by the actual

 8  claims-paying capacity available for that contract year;

 9  provided, entities created pursuant to s. 627.351 shall be

10  further reimbursed in accordance with sub-subparagraph c.

11         c.  Thereafter, establish, based on reimbursable

12  losses, the prorated reimbursement level at the highest level

13  for which any remaining fund balance or bond proceeds are

14  sufficient to reimburse entities created pursuant to s.

15  627.351 for losses exceeding the amounts payable pursuant to

16  sub-subparagraph b. for the current contract year.

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

20  And the title is amended as follows:

21         On page 1, line 2

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23  after the semicolon, insert:

24         amending s. 215.555, F.S., revising the method

25         of determining reimbursement to insurers by the

26         Florida Hurricane Catastrophe Fund;

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    File original & 9 copies    04/03/00
    hin0002                     12:56 pm         00247-0051-163937