| 1 | Representative(s) Ross offered the following: |
| 2 |
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| 3 | Amendment (with title amendments) |
| 4 | Remove line(s) 50-95 and insert: |
| 5 | Section 1. Paragraph (e) of subsection (2) of section |
| 6 | 215.555, Florida Statutes, is amended to read: |
| 7 | 215.555 Florida Hurricane Catastrophe Fund.-- |
| 8 | (2) DEFINITIONS.--As used in this section: |
| 9 | (e) "Retention" means the amount of losses below which an |
| 10 | insurer is not entitled to reimbursement from the fund. The term |
| 11 | is comprised a one component consisting of an annual aggregate |
| 12 | retention that must be satisfied only once during any single |
| 13 | calendar year in order for an insurer to be eligible for |
| 14 | reimbursement and, in addition to the annual aggregate |
| 15 | retention, a second component consisting of a per-hurricane |
| 16 | retention that must be satisfied with respect to any hurricane |
| 17 | in order for an insurer to be eligible for reimbursement as to |
| 18 | that hurricane. |
| 19 | 1. An insurer's annual aggregate retention shall be |
| 20 | calculated as follows: |
| 21 | a.1. The board shall calculate and report to each insurer |
| 22 | the annual aggregate retention multiples for that year. For the |
| 23 | contract year beginning June 1, 2005 2004, the annual aggregate |
| 24 | retention multiple shall be equal to $3.5 $4.5 billion divided |
| 25 | by the total estimated reimbursement premium for the contract |
| 26 | year; for subsequent years, the annual aggregate retention |
| 27 | multiple shall be equal to $3.5 $4.5 billion, adjusted based |
| 28 | upon the reported exposure from the prior contract year to |
| 29 | reflect the percentage growth in exposure to the fund for |
| 30 | covered policies since 2004 2003, divided by the total estimated |
| 31 | reimbursement premium for the contract year. Total reimbursement |
| 32 | premium for purposes of the calculation under this subparagraph |
| 33 | shall be estimated using the assumption that all insurers have |
| 34 | selected the 90-percent coverage level. |
| 35 | b.2. The annual aggregate retention multiple as determined |
| 36 | under sub-subparagraph a. subparagraph 1. shall be adjusted to |
| 37 | reflect the coverage level elected by the insurer. For insurers |
| 38 | electing the 90-percent coverage level, the adjusted annual |
| 39 | aggregate retention multiple is 100 percent of the amount |
| 40 | determined under sub-subparagraph a. subparagraph 1. For |
| 41 | insurers electing the 75-percent coverage level, the adjusted |
| 42 | annual aggregate retention multiple is 120 percent of the amount |
| 43 | determined under subparagraph 1. For insurers electing the 45- |
| 44 | percent coverage level, the adjusted annual aggregate retention |
| 45 | multiple is 200 percent of the amount determined under sub- |
| 46 | subparagraph a. subparagraph 1. |
| 47 | c.3. An insurer shall determine its provisional annual |
| 48 | aggregate retention by multiplying its provisional reimbursement |
| 49 | premium by the applicable adjusted annual aggregate retention |
| 50 | multiple and shall determine its actual annual aggregate |
| 51 | retention by multiplying its actual reimbursement premium by the |
| 52 | applicable adjusted annual aggregate retention multiple. |
| 53 | d. The insurer shall be deemed to have satisfied its |
| 54 | annual aggregate retention once the insurer has reported covered |
| 55 | losses to the fund equal to the annual aggregate retention, |
| 56 | beginning with covered losses from the first hurricane of the |
| 57 | calendar year. |
| 58 | 2. An insurer's per-hurricane retention shall be |
| 59 | calculated as follows: |
| 60 | a. The board shall calculate and report to each insurer |
| 61 | the per-hurricane retention multiples for that year. The per- |
| 62 | hurricane retention multiple shall be equal to $1.5 billion |
| 63 | divided by the total estimated reimbursement premium for the |
| 64 | contract year. Total reimbursement premium for purposes of the |
| 65 | calculation under this subparagraph shall be estimated using the |
| 66 | assumption that all insurers have selected the 90-percent |
| 67 | coverage level. |
| 68 | b. The per-hurricane retention multiple as determined |
| 69 | under sub-subparagraph a. shall be adjusted to reflect the |
| 70 | coverage level elected by the insurer. For insurers electing the |
| 71 | 90-percent coverage level, the adjusted per-hurricane retention |
| 72 | multiple equals 100 percent of the amount determined under sub- |
| 73 | subparagraph a. For insurers electing the 75-percent coverage |
| 74 | level, the adjusted per-hurricane retention multiple equals 120 |
| 75 | percent of the amount determined under sub-subparagraph a. For |
| 76 | insurers electing the 45-percent coverage level, the adjusted |
| 77 | per-hurricane retention multiple equals 200 percent of the |
| 78 | amount determined under sub-subparagraph a. |
| 79 | c. An insurer shall determine its provisional per- |
| 80 | hurricane retention by multiplying its provisional reimbursement |
| 81 | premium by the applicable adjusted per-hurricane retention |
| 82 | multiple and shall determine its actual retention by multiplying |
| 83 | its actual reimbursement premium by the applicable adjusted per- |
| 84 | hurricane retention multiple. |
| 85 |
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| 86 | ================ T I T L E A M E N D M E N T ============= |
| 87 | Remove lines 2-5 and insert: |
| 88 | An act relating to property insurance; amending s. 215.555, |
| 89 | F.S.; revising the definition of the term "retention" for |
| 90 | purposes of the Florida Hurricane Catastrophe Fund; providing |
| 91 | criteria and requirements for determining the annual aggregate |
| 92 | retention component and the per-hurricane retention components |
| 93 | of retention; providing requirements for calculating, |
| 94 | satisfying, and reporting such components; |