House Bill hb0385e1

                                        CS/HB 385, First Engrossed



  1                      A bill to be entitled

  2         An act relating to minority-owned property and

  3         casualty insurers; amending s. 624.4072, F.S.;

  4         increasing a period of exemption from certain

  5         taxes and assessments for certain minority

  6         businesses; extending a future repeal; amending

  7         s. 215.555, F.S.; revising a definition;

  8         providing an 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.  Subsections (1) and (4) of section

13  624.4072, Florida Statutes, are amended to read:

14         624.4072  Minority-owned property and casualty

15  insurers; limited exemption for taxation and assessments.--

16         (1)  A minority business that is at least 51 percent

17  owned by minority persons, as defined in s. 288.703(3),

18  initially issued a certificate of authority in this state as

19  an authorized insurer after May 1, 1998, to write property and

20  casualty insurance shall be exempt, for a period not to exceed

21  10 5 years from the date of receiving its certificate of

22  authority, from the following taxes and assessments:

23         (a)  Taxes imposed under ss. 175.101, 185.08, and

24  624.509;

25         (b)  Assessments by the Florida Residential Property

26  and Casualty Joint Underwriting Association or by the Florida

27  Windstorm Underwriting Association, as provided under s.

28  627.351, except for emergency assessments collected from

29  policyholders pursuant to s. 627.351(2)(b)2.d.(III) and

30  (6)(b)3.d. Any such insurer shall be a member insurer of the

31  Florida Windstorm Underwriting Association and the Florida


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






                                        CS/HB 385, First Engrossed



  1  Residential Property and Casualty Joint Underwriting

  2  Association. The premiums of such insurer shall be included in

  3  determining, for the Florida Windstorm Underwriting

  4  Association, the aggregate statewide direct written premium

  5  for property insurance and in determining, for the Florida

  6  Residential Property and Casualty Joint Underwriting

  7  Association, the aggregate statewide direct written premium

  8  for the subject lines of business for all member insurers.

  9         (4)  This section is repealed effective December 31,

10  2010 July 1, 2003, and the tax and assessment exemptions

11  authorized by this section shall terminate on such date.

12         Section 2.  Paragraph (c) of subsection (2) of section

13  215.555, Florida Statutes, is amended to read:

14         215.555  Florida Hurricane Catastrophe Fund.--

15         (2)  DEFINITIONS.--As used in this section:

16         (c)  "Covered policy" means any insurance policy

17  covering residential property in this state, including, but

18  not limited to, any homeowner's, mobile home owner's, farm

19  owner's, condominium association, condominium unit owner's,

20  tenant's, or apartment building policy, or any other policy

21  covering a residential structure or its contents issued by any

22  authorized insurer, including any joint underwriting

23  association or similar entity created pursuant to law. The

24  term "covered policy" includes any collateral protection

25  insurance policy covering personal residences which protects

26  both the borrower's and the lender's financial interests, if

27  such insurance policy can be accurately reported as required

28  in s. 215.555(5). Additionally, covered policies include

29  policies covering the peril of wind removed from the Florida

30  Residential Property and Casualty Joint Underwriting

31  Association, created pursuant to s. 627.351(6), or from the


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                                        CS/HB 385, First Engrossed



  1  Florida Windstorm Underwriting Association, created pursuant

  2  to s. 627.351(2), by an authorized insurer under the terms and

  3  conditions of an executed assumption agreement between the

  4  authorized insurer and either such association. Each

  5  assumption agreement between either association and such

  6  authorized insurer must be approved by the Florida Department

  7  of Insurance prior to the effective date of the assumption,

  8  and the Department of Insurance must provide written

  9  notification to the board within 15 working days after such

10  approval. "Covered policy" does not include any policy that

11  excludes wind coverage or hurricane coverage or any

12  reinsurance agreement and does not include any policy

13  otherwise meeting this definition which is issued by a surplus

14  lines insurer or a reinsurer.

15         Section 3.  This act shall take effect upon becoming a

16  law.

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