1 | Representative Berfield offered the following: |
2 |
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3 | Amendment |
4 | On page 15, line 12, through page 16, line 28, |
5 | remove: all of said lines, |
6 |
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7 | and insert: |
8 | Section 2. Effective June 1, 2004, paragraph (e) of |
9 | subsection (2), paragraph (c) of subsection (4), and subsection |
10 | (6) of section 215.555, Florida Statutes, as amended by this |
11 | act, are amended to read: |
12 | 215.555 Florida Hurricane Catastrophe Fund.-- |
13 | (2) DEFINITIONS.--As used in this section: |
14 | (e) "Retention" means the amount of losses below which an |
15 | insurer is not entitled to reimbursement from the fund. An |
16 | insurer's retention shall be calculated as follows: |
17 | 1. The board shall calculate and report to each insurer |
18 | the retention multiples for that year. For the contract year |
19 | beginning June 1, 2004 1995, the retention multiple shall be |
20 | equal to $4.5 $3 billion divided by the total estimated |
21 | reimbursement premium for the contract year; for subsequent |
22 | years, the retention multiple shall be equal to $4.5 $3 billion, |
23 | adjusted based upon the reported exposure from the prior |
24 | contract year to reflect the percentage growth in exposure to |
25 | the fund for covered policies since 2003 1998, divided by the |
26 | total estimated reimbursement premium for the contract year. |
27 | Total reimbursement premium for purposes of the calculation |
28 | under this subparagraph shall be estimated using the assumption |
29 | that all insurers have selected the 90-percent coverage level. |
30 | 2. The retention multiple as determined under subparagraph |
31 | 1. shall be adjusted to reflect the coverage level elected by |
32 | the insurer. For insurers electing the 90-percent coverage |
33 | level, the adjusted retention multiple is 100 percent of the |
34 | amount determined under subparagraph 1. For insurers electing |
35 | the 75-percent coverage level, the retention multiple is 120 |
36 | percent of the amount determined under subparagraph 1. For |
37 | insurers electing the 45-percent coverage level, the adjusted |
38 | retention multiple is 200 percent of the amount determined under |
39 | subparagraph 1. |
40 | 3. An insurer shall determine its provisional retention by |
41 | multiplying its provisional reimbursement premium by the |
42 | applicable adjusted retention multiple and shall determine its |
43 | actual retention by multiplying its actual reimbursement premium |
44 | by the applicable adjusted retention multiple. |
45 | (4) REIMBURSEMENT CONTRACTS.-- |
46 | (c)1. The contract shall also provide that the obligation |
47 | of the board with respect to all contracts covering a particular |
48 | contract year shall not exceed the actual claims-paying capacity |
49 | of the fund up to a limit of $15 $11 billion for that contract |
50 | year adjusted based upon the reported exposure from the prior |
51 | contract year to reflect the percentage growth in exposure to |
52 | the fund for covered policies since 2003, provided the dollar |
53 | growth in the limit may |