HOUSE AMENDMENT

                                                Bill No. CS/HB 397

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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11  Representative(s) Rayson and Cosgrove offered the following:

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13         Substitute Amendment for Amendment (121769) (with title

14  amendment) 

15         On page 1, between lines 14 & 15 of the bill

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17  insert:

18         Section 1.  Subsection (3) is added to section

19  627.402,Florida Statutes, to read:

20         627.402  Definitions; specified certificates not

21  included.--As used in this part, the term:

22         (3)  "Insurer conduct" means the following actions or

23  inactions of an insurer with respect to a policy form which

24  have resulted in inadequate rates and the need for

25  extraordinary rate increases:

26         (a)  Failure to make a filing in compliance with s.

27  627.410(7) or s. 627.6745(2);

28         (b)  Failure to correct a rate filing when the

29  department presented information to the company at the time

30  the filing was approved that suggested the rates were

31  inadequate and the company did not adequately resolve the

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    File original & 9 copies    04/11/00
    hmo0006                     02:49 pm         00397-0090-795165




                                                   HOUSE AMENDMENT

                                                Bill No. CS/HB 397

    Amendment No.     (for drafter's use only)





 1  department's concerns;

 2         (c)  Violation of applicable actuarial standards of

 3  practice at the time of a filing;

 4         (d)  Failure to have implemented the underwriting

 5  standards assumed in the pricing assumptions of the form; or

 6         (e)  The use of pricing assumptions that have resulted

 7  in a demonstrated pattern of product underpricing.

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

11  And the title is amended as follows:

12         On page 1, line 2

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14  after the semicolon, insert:

15         s. 627.402, F.S., creating a definition for

16         insurer conduct;

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    File original & 9 copies    04/11/00
    hmo0006                     02:49 pm         00397-0090-795165