| 1 | Representative Berfield offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | On page 31, line(s) 19 and 20, |
| 5 | remove: all of said lines, |
| 6 |
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| 7 | and insert: |
| 8 | Section 4. Transitional provisions.-- |
| 9 | (1) This section applies only to the Florida Hurricane |
| 10 | Catastrophe Fund's 2004-2005 contract year, and the option |
| 11 | provided in this section is available only if the selection is |
| 12 | made no later than June 1, 2004. The definitions in s. 215.555, |
| 13 | Florida Statutes, apply to the terms used in this section. |
| 14 | (2) Subject to the provisions of subsection (1), a |
| 15 | participating insurer writing covered policies shall have the |
| 16 | option, as specified in rules adopted by the board, of selecting |
| 17 | an alternative contract provision that will operate in lieu of |
| 18 | the provision in s. 215.555(4)(c), Florida Statutes, as amended |
| 19 | by this act. Under the alternative contract provision, the |
| 20 | obligation of the board to such insurer shall not exceed the |
| 21 | insurer's share of actual claims-paying capacity of the fund, |
| 22 | subject to the limitation that for purposes of this section the |
| 23 | "claims-paying capacity of the fund" as to insurers selecting |
| 24 | the alternative contract provision is limited to an aggregate |
| 25 | limit of $11 billion. This option is not available to any entity |
| 26 | created under s. 627.351, Florida Statutes. |
| 27 | (3) Nothing in this section shall be construed to provide |
| 28 | for additional claims paying capacity beyond the claims paying |
| 29 | capacity specified in s. 215.555(4)(c), Florida Statutes, as |
| 30 | amended by this act. The capacity of the fund is limited up to |
| 31 | the actual claims paying capacity provided in s. 215.555(4)(c), |
| 32 | Florida Statutes, and is not additive as a result of |
| 33 | participating insurers ability to select this option. |
| 34 | (4) Each insurer's projected payout shall be equal to the |
| 35 | insurer's share of the estimated premium which would have been |
| 36 | paid assuming all insurers selected this option, multiplied by |
| 37 | the claims-paying capacity limit as set forth in this section |
| 38 | subject to true-up provisions as set forth in the reimbursement |
| 39 | contract. |
| 40 | (5) As to each insurer choosing the alternative contract |
| 41 | provision option, the board shall calculate the retention |
| 42 | multiple for such insurer in an amount equal to $4.866 billion |
| 43 | divided by the total estimated reimbursement premium for the |
| 44 | contract year, in lieu of the calculation provided for in s. |
| 45 | 215.555(2)(e)1., Florida Statutes. Total reimbursement premium |
| 46 | for the purposes of this calculation shall be estimated using |
| 47 | the assumption that all insurers have selected the option |
| 48 | provided herein and have selected the 90-percent coverage level. |
| 49 | The existence of this option shall not affect the estimation of |
| 50 | total reimbursement premiums as provided for in s. |
| 51 | 215.555(2)(e)1., Florida Statutes. |
| 52 | (6) For those insurers that do not select this alternative |
| 53 | contract provision, each insurer's projected payout shall be |
| 54 | equal to the insurer's share of the estimated premium which |
| 55 | would have been paid assuming no insurers selected this option, |
| 56 | multiplied by the claims-paying capacity limit as set forth in |
| 57 | s. 215.555(4)(c)1., Florida Statutes, as amended by this act, |
| 58 | subject to true-up provisions as set forth in the reimbursement |
| 59 | contract. |
| 60 | (7) As to each insurer not choosing the alternative |
| 61 | contract provision option, the board shall calculate the |
| 62 | retention multiple for such insurer in accordance with s. |
| 63 | 215.555(2)(e)1., Florida Statutes, as amended by this act, |
| 64 | divided by the total estimated reimbursement premium for the |
| 65 | contract year. Total reimbursement premium for the purposes of |
| 66 | this calculation shall be estimated using the assumption that no |
| 67 | insurers have selected the option provided herein and have |
| 68 | selected the 90-percent coverage level. This calculation shall |
| 69 | not affect the estimation of total reimbursement premiums as |
| 70 | provided for in s. 215.555(2)(e)1., Florida Statutes, as amended |
| 71 | under this act. |
| 72 | Section 5. Except as otherwise provided herein, this act |
| 73 | shall take effect upon becoming a law. |
| 74 |
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| 75 | ================= T I T L E A M E N D M E N T ================= |
| 76 | On page 1, line(s) 15, insert after the semicolon: |
| 77 | providing transitional provisions; providing application; |
| 78 | providing criteria, requirements, and limitations; |