HB 1653

CS

CHAMBER ACTION

1	The Committee on Insurance recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the insurance premium tax; amending s.
7	624.509, F.S.; requiring insurers to pay premium tax on
8	certain title insurance premium gross receipts; providing
9	limitations; amending s. 627.7711, F.S.; revising a
10	definition of the term "premium" for title insurance
11	purposes; providing an effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
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15	Section 1.  Subsection (1) of section 624.509, Florida
16	Statutes, is amended to read:
17	624.509  Premium tax; rate and computation.--
18	(1)  In addition to the license taxes provided for in this
19	chapter, each insurer shall also annually, and on or before
20	March 1 in each year, except as to wet marine and transportation
21	insurance taxed under s. 624.510, pay to the Department of
22	Revenue a tax on insurance premiums, premiums for title
23	insurance, or assessments, including membership fees and policy
24	fees and gross deposits received from subscribers to reciprocal
25	or interinsurance agreements, and on annuity premiums or
26	considerations, received during the preceding calendar year, the
27	amounts thereof to be determined as set forth in this section,
28	to wit:
29	(a)  An amount equal to 1.75 percent of the gross amount of
30	such receipts on account of life and health insurance policies
31	covering persons resident in this state and on account of all
32	other types of policies and contracts (except annuity policies
33	or contracts taxable under paragraph (b) and title insurance
34	policies or contracts written through affiliated and
35	nonaffiliated agencies and taxable under paragraph (c)) covering
36	property, subjects, or risks located, resident, or to be
37	performed in this state, omitting premiums on reinsurance
38	accepted, and less return premiums or assessments, but without
39	deductions:
40	1.  For reinsurance ceded to other insurers.;
41	2.  For moneys paid upon surrender of policies or
42	certificates for cash surrender value.;
43	3.  For discounts or refunds for direct or prompt payment
44	of premiums or assessments.; and
45	4.  On account of dividends of any nature or amount paid
46	and credited or allowed to holders of insurance policies;
47	certificates; or surety, indemnity, reciprocal, or
48	interinsurance contracts or agreements.; and
49	(b)  An amount equal to 1 percent of the gross receipts on
50	annuity policies or contracts paid by holders thereof in this
51	state.
52	(c)  An amount equal to 1.75 percent of the gross receipts
53	on title insurance written through affiliated and nonaffiliated
54	agencies, less the portion of the gross receipts retained by or
55	paid under contract to any title insurance agents of the
56	affiliated or nonaffiliated agencies. This reduction in the
57	insurer's total amount of title insurance premium gross receipts
58	received through affiliated and nonaffiliated agencies may not
59	exceed 70 percent of the total title insurance premium gross
60	receipts received by the insurer through affiliated and
61	nonaffiliated agencies.
62	Section 2.  Subsection (2) of section 627.7711, Florida
63	Statutes, is amended to read:
64	627.7711  Definitions.--As used in this part, the term:
65	(2)  "Premium" means the charge, as specified by rule of
66	the commission, that is made by a title insurer for a title
67	insurance policy, including the charge for performance of
68	primary title services by a title insurer or title insurance
69	agent or agency, and incurring the risks incident to such
70	policy, under the several classifications of title insurance
71	contracts and forms, and upon which charge a premium tax is paid
72	under s. 624.509. As used in this part or in any other law, with
73	respect to title insurance, the word "premium" does not include
74	a commission.
75	Section 3.  This act shall take effect January 1, 2005.

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