Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. PCS for SB 1980 (070118)
                        Barcode 234240
                            CHAMBER ACTION
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11  The Committee on Banking and Insurance (Alexander) recommended
12  the following amendment:
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14         Senate Amendment (with title amendment) 
15         On page 60, lines 1-9, delete those line
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17  and insert:  
18         (m)(d)1.a.  It is the intent of the Legislature that
19  the Rates for coverage provided by the corporation shall be
20  actuarially sound and not competitive with approved rates
21  charged in the admitted voluntary market, so that the
22  corporation functions as a residual market mechanism to
23  provide insurance only when the insurance cannot be procured
24  in the voluntary market.
25         b.  In any review of a rate filing of the corporation,
26  the Office of Insurance Regulation shall have the burden of
27  proving that the corporation's filed rates are excessive or
28  unfairly discriminatory, and the corporation shall have the
29  burden of proving that the corporation's filed rates are not
30  inadequate.
31         c.  Rates shall include an appropriate catastrophe
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    10:33 PM   04/06/06                            s1980c-bi17-j17


    Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. PCS for SB 1980 (070118)
                        Barcode 234240
 1  loading factor that reflects the actual catastrophic exposure
 2  of the corporation.
 3         d.  Rates shall include an assessment-reduction factor
 4  for the purpose of providing the corporation with additional
 5  capital resources unless the board determines that the
 6  corporation has sufficient cash, Florida Hurricane Catastrophe
 7  Fund coverage, and reinsurance coverage to enable the
 8  corporation to cover a 100-year probable maximum loss without
 9  sustaining a deficit.
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12  ================ T I T L E   A M E N D M E N T ===============
13  And the title is amended as follows:
14         On page 4, line 18, after the semicolon,
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16  insert:
17         specifying the burden of proof in reviews of
18         corporation rate filings; providing for an
19         additional assessment-reduction factor in
20         rates;
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    10:33 PM   04/06/06                            s1980c-bi17-j17