1 | The Committee on Insurance recommends the following: |
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3 | Committee Substitute |
4 | Remove the entire bill and insert: |
5 | A bill to be entitled |
6 | An act relating to insurance guaranty associations; |
7 | amending ss. 631.54 and 631.904, F.S.; revising the |
8 | definition of covered claim; excluding certain claims |
9 | rejected by another state's guaranty fund under certain |
10 | circumstances; denying member insurers any right to |
11 | indemnification or contribution sought through third |
12 | parties; providing an effective date. |
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14 | Be It Enacted by the Legislature of the State of Florida: |
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16 | Section 1. Subsection (3) of section 631.54, Florida |
17 | Statutes, is amended to read: |
18 | 631.54 Definitions.--As used in this part: |
19 | (3) "Covered claim" means an unpaid claim, including one |
20 | of unearned premiums, which arises out of, and is within the |
21 | coverage, and not in excess of, the applicable limits of an |
22 | insurance policy to which this part applies, issued by an |
23 | insurer, if such insurer becomes an insolvent insurer after |
24 | October 1, 1970, and the claimant or insured is a resident of |
25 | this state at the time of the insured event or the property from |
26 | which the claim arises is permanently located in this state. |
27 | "Covered claim" shall not include: |
28 | (a) Any amount due any reinsurer, insurer, insurance pool, |
29 | or underwriting association, sought directly or indirectly |
30 | through a third party, as subrogation, contribution, |
31 | indemnification, or otherwise; or |
32 | (b) Any claim that would otherwise be a covered claim |
33 | under this part that has been rejected by any other state |
34 | guaranty fund on the grounds that an insured's net worth is |
35 | greater than that allowed under that state's guaranty law. |
36 | Member insurers shall have no right of subrogation, |
37 | contribution, indemnification, or otherwise, sought directly or |
38 | indirectly through a third party, against the insured of any |
39 | insolvent member. |
40 | Section 2. Subsection (2) of section 631.904, Florida |
41 | Statutes, is amended to read: |
42 | 631.904 Definitions.--As used in this part, the term: |
43 | (2) "Covered claim" means an unpaid claim, including a |
44 | claim for return of unearned premiums, which arises out of, is |
45 | within the coverage of, and is not in excess of the applicable |
46 | limits of, an insurance policy to which this part applies, which |
47 | policy was issued by an insurer and which claim is made on |
48 | behalf of a claimant or insured who was a resident of this state |
49 | at the time of the injury. The term "covered claim" does not |
50 | include any amount sought as a return of premium under any |
51 | retrospective rating plan; any amount due any reinsurer, |
52 | insurer, insurance pool, or underwriting association, as |
53 | subrogation recoveries or otherwise; any claim that would |
54 | otherwise be a covered claim that has been rejected by any other |
55 | state guaranty fund on the grounds that the insured's net worth |
56 | is greater than that allowed under that state's guaranty fund or |
57 | liquidation law; or any return of premium resulting from a |
58 | policy that was not in force on the date of the final order of |
59 | liquidation. Member insurers have no right of subrogation |
60 | against the insured of any insolvent insurer. This provision |
61 | shall be applied retroactively to cover claims of an insolvent |
62 | self-insurance fund resulting from accidents or losses incurred |
63 | prior to January 1, 1994, regardless of the date the petition in |
64 | circuit court was filed alleging insolvency and the date the |
65 | court entered an order appointing a receiver. |
66 | Section 3. This act shall take effect upon becoming a law. |