Senate Bill 0834

    Florida Senate - 2000                                   SB 834

    By Senator Horne





    6-693-00

  1                      A bill to be entitled

  2         An act relating to mortgage guaranty insurance;

  3         amending s. 635.011, F.S.; defining the term

  4         "surplus as to policyholders"; amending s.

  5         635.041, F.S.; providing requirements for

  6         contingency reserves required to be maintained

  7         by mortgage guaranty insurers; providing an

  8         effective date.

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

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12         Section 1.  Subsection (4) is added to section 635.011,

13  Florida Statutes, to read:

14         635.011  Definitions.--As used in this chapter, the

15  term:

16         (4)  "Surplus as to policyholders" means the aggregate

17  of capital, surplus, and contingency reserve.

18         Section 2.  Subsections (5), (6), and (7) are added to

19  section 635.041, Florida Statutes, to read:

20         635.041  Contingency reserve.--

21         (5)  Each mortgage guaranty insurer's surplus as to

22  policyholders must meet the minimum requirements of s.

23  624.408.

24         (6)  For purposes of s. 624.408, liabilities include

25  the contingency reserve liability established under this

26  section.

27         (7)  The amount established as a contingency reserve

28  under this section is considered surplus as to policyholders

29  for purposes of determining whether a mortgage guaranty

30  insurer meets the requirements of section 624.408 governing

31  the required surplus as to policyholders.

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






    Florida Senate - 2000                                   SB 834
    6-693-00




  1         Section 3.  This act shall take effect July 1, 2000.

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  4                          SENATE SUMMARY

  5    Provides that, for mortgage guaranty insurers, the
      surplus as to policyholders required for such insurers to
  6    do business in this state is the aggregate of capital,
      surplus, and contingency reserve. Provides that such
  7    surplus must meet the requirements of s. 624.408, F.S.
      Provides that for purposes of s. 624.408, F.S.,
  8    liabilities includes the contingency reserve liability
      required under s. 635.041, F.S., and contingency reserve
  9    is considered surplus as to policyholders for purposes of
      meeting the requirements of s. 624.408, F.S.
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