House Bill 4009

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    Florida House of Representatives - 2000                HB 4009

        By the Committee on Rules & Calendar and Representative
    Bitner





  1                      A bill to be entitled

  2         An act relating to the Florida Statutes;

  3         repealing or deleting various statutory

  4         provisions that have become obsolete, have had

  5         their effect, have served their purpose, or

  6         have been impliedly repealed or superseded;

  7         repealing s. 215.555(15), F.S., relating to the

  8         definition of "collateral protection

  9         insurance"; amending s. 624.408, F.S.; deleting

10         obsolete schedule provisions relating to the

11         surplus required to be maintained by certain

12         property and casualty insurers; repealing s.

13         624.515(2)(b), F.S., relating to applicability

14         of the surcharge on policies of fire, allied

15         lines, or multiperil insurance insuring

16         commercial property; repealing s. 626.9929,

17         F.S., relating to a grace period under the

18         Viatical Settlement Act; amending s. 627.0628,

19         F.S.; deleting obsolete provisions relating to

20         adoption and revision of hurricane loss

21         projection standards and guidelines; repealing

22         s. 627.072(4)(c), F.S., relating to a directive

23         to the Insurance Commissioner on the use of a

24         methodology for establishing rates for workers'

25         compensation and employer's liability

26         insurance; amending s. 627.215, F.S.; deleting

27         an obsolete reporting requirement on the excess

28         profits law; amending s. 627.3511, F.S.;

29         deleting findings relating to the need to

30         reduce the number of Residential Property and

31         Casualty Joint Underwriting Association

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  1         policies; repealing s. 627.706(5), F.S.,

  2         relating to applicability of sinkhole insurance

  3         requirements; amending s. 629.520, F.S.;

  4         deleting obsolete provisions relating to the

  5         authority of limited reciprocal insurers;

  6         amending s. 633.41, F.S.; deleting an obsolete

  7         provision relating to firefighter certificates

  8         of tenure; repealing s. 633.537(3)(b), F.S.,

  9         relating to obsolete continuing education

10         requirements for fire protection contractors;

11         repealing s. 634.404(1)(a) and (b), F.S.,

12         relating to a phase-in period for service

13         warranty associations to meet minimum net asset

14         requirements; repealing s. 642.0262(2), F.S.,

15         relating to a phase-in period for legal expense

16         insurance corporations to meet minimum net

17         worth requirements; providing an effective

18         date.

19

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

21

22         Section 1.  Subsection (15) of section 215.555, Florida

23  Statutes, is repealed.

24         Section 2.  Paragraph (b) of subsection (1) of section

25  624.408, Florida Statutes, is amended to read:

26         624.408  Surplus as to policyholders required; new and

27  existing insurers.--

28         (1)

29         (b)  For any property and casualty insurer holding a

30  certificate of authority on December 1, 1993, the following

31

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  1  amounts apply instead of the $4 million required by

  2  subparagraph (a)5.:

  3         1.  On December 31, 1998, and until December 30, 1999,

  4  $2.25 million.

  5         2.  On December 31, 1999, and until December 30, 2000,

  6  $2.5 million.

  7         1.3.  On December 31, 2000, and until December 30,

  8  2001, $2.75 million.

  9         2.4.  On December 31, 2001, and until December 30,

10  2002, $3 million.

11         3.5.  On December 31, 2002, and until December 30,

12  2003, $3.25 million.

13         4.6.  On December 31, 2003, and until December 30,

14  2004, $3.6 million.

15         5.7.  On December 31, 2004, and thereafter, $4 million.

16         Section 3.  Paragraph (b) of subsection (2) of section

17  624.515, Florida Statutes, is repealed.

18         Section 4.  Section 626.9929, Florida Statutes, is

19  repealed.

20         Section 5.  Paragraph (d) of subsection (3) of section

21  627.0628, Florida Statutes, is amended to read:

22         627.0628  Florida Commission on Hurricane Loss

23  Projection Methodology.--

24         (3)  ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.--

25         (d)  The commission shall adopt initial actuarial

26  methods, principles, standards, models, or output ranges no

27  later than December 31, 1995. The commission shall adopt

28  revisions to such actuarial methods, principles, standards,

29  models, or output ranges at least annually thereafter.  As

30  soon as possible, but no later than July 1, 1996, the

31  commission shall adopt revised actuarial methods, principles,

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  1  standards, models, or output ranges which include

  2  specification of acceptable computer models or output ranges

  3  derived from computer models.

  4         Section 6.  Paragraph (c) of subsection (4) of section

  5  627.072, Florida Statutes, is repealed.

  6         Section 7.  Subsection (14) of section 627.215, Florida

  7  Statutes, is amended to read:

  8         627.215  Excessive profits for workers' compensation,

  9  employer's liability, commercial property, and commercial

10  casualty insurance prohibited.--

11         (14)  The application of this law to commercial

12  property and commercial casualty insurance, which includes

13  commercial umbrella liability insurance, ceases on January 1,

14  1997.  The Department of Insurance shall, no later than

15  October 1, 1995, provide a report on this law to the President

16  of the Senate and the Speaker of the House of Representatives,

17  which report includes a history of the excess profits law and

18  a year-by-year listing of excess profits returned to

19  policyholders as refunds or credits.

20         Section 8.  Subsection (1) of section 627.3511, Florida

21  Statutes, is amended to read:

22         627.3511  Depopulation of Residential Property and

23  Casualty Joint Underwriting Association.--

24         (1)  LEGISLATIVE FINDINGS AND INTENT.--The Legislature

25  finds and declares that the Residential Property and Casualty

26  Joint Underwriting Association has written an amount of

27  policies beyond legislative expectations and has become, by

28  virtue of its size, a significant impediment to the

29  restoration of a stable and competitive residential property

30  insurance market in this state; that the public policy of this

31  state requires the maintenance of a residual market for

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  1  residential property insurance; and that extraordinary

  2  measures, beyond implementation of eligibility criteria and

  3  noncompetitive rates, are required to reduce the number of

  4  policies written by the Residential Property and Casualty

  5  Joint Underwriting Association to a reasonable level. It is

  6  the intent of the Legislature to provide a variety of

  7  financial incentives to encourage the replacement of the

  8  highest possible number of Residential Property and Casualty

  9  Joint Underwriting Association policies with policies written

10  by admitted insurers at approved rates.

11         Section 9.  Subsection (5) of section 627.706, Florida

12  Statutes, is repealed.

13         Section 10.  Section 629.520, Florida Statutes, is

14  amended to read:

15         629.520  Abolition of existing Authority of the

16  department to issue a certificate of authority as a limited

17  reciprocal insurer.--On October 1, 1991, the existing

18  authority of the department to issue a certificate of

19  authority as a limited reciprocal insurer pursuant to this

20  chapter is abolished.  Existing limited reciprocal insurers

21  which continue to hold a certificate of authority after this

22  date shall have until October 1, 1992, to convert their

23  certificate of authority by meeting the requirements for a

24  certificate of authority as another type of insurer authorized

25  under this code.  All existing certificates of authority as a

26  limited reciprocal insurer not so converted shall

27  automatically terminate on October 1, 1992.  The authority of

28  any limited reciprocal insurer to accept new business or

29  renewals shall not continue beyond October 1, 1992; however,

30  such limited reciprocal insurer shall continue to service its

31  obligations previously incurred or with the approval of the

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  1  department, arrange for the transfer of these obligations to

  2  an authorized insurer. All power of the department with

  3  respect to limited reciprocal insurers shall continue

  4  undiminished.  This section does not affect any other power of

  5  the department or any other function of the department.

  6         Section 11.  Section 633.41, Florida Statutes, is

  7  amended to read:

  8         633.41  Saving clause.--Firefighters employed on July

  9  5, 1969, are not required to meet the provisions of ss. 633.34

10  and 633.35 as a condition of tenure or continued employment;

11  nor shall their failure to fulfill such requirements make them

12  ineligible for any promotional examination for which they are

13  otherwise eligible or affect in any way any pension rights to

14  which they may be entitled on July 5, 1969. Firefighters

15  employed on July 5, 1969, who have not yet been issued a

16  certificate of tenure shall make application to the Florida

17  State Fire College for such certificate no later than June 30,

18  1990, after which date no certificates of tenure will be

19  issued.

20         Section 12.  Paragraph (b) of subsection (3) of section

21  633.537, Florida Statutes, is repealed.

22         Section 13.  Paragraphs (a) and (b) of subsection (1)

23  of section 634.404, Florida Statutes, are repealed.

24         Section 14.  Subsection (2) of section 642.0262,

25  Florida Statutes, is repealed.

26         Section 15.  This act shall take effect upon becoming a

27  law.

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    Florida House of Representatives - 2000                HB 4009

    175-148-00






  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Repeals or deletes various statutory provisions that have
  4    become obsolete, have had their effect, have served their
      purpose, or have been impliedly repealed or superseded.
  5    Repeals or deletes provisions relating to the definition
      of "collateral protection insurance"; obsolete schedule
  6    provisions relating to the surplus required to be
      maintained by certain property and casualty insurers;
  7    applicability of the surcharge on policies of fire,
      allied lines, or multiperil insurance insuring commercial
  8    property; a grace period under the Viatical Settlement
      Act; obsolete provisions relating to adoption and
  9    revision of hurricane loss projection standards and
      guidelines; a directive to the Insurance Commissioner on
10    the use of a methodology for establishing rates for
      workers' compensation and employer's liability insurance;
11    an obsolete reporting requirement on the excess profits
      law; findings relating to the need to reduce the number
12    of Residential Property and Casualty Joint Underwriting
      Association policies; applicability of sinkhole insurance
13    requirements; obsolete provisions relating to the
      authority of limited reciprocal insurers; an obsolete
14    provision relating to firefighter certificates of tenure;
      obsolete continuing education requirements for fire
15    protection contractors; and phase-in periods for service
      warranty associations to meet minimum net asset
16    requirements and legal expense insurance corporations to
      meet minimum net worth requirements.
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