Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. PCS for SB 1980 (070118)
Barcode 395114
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Fasano) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 On page 8, line 19, through
16 page 9, line 1, delete those lines
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18 and insert: subsection (2), paragraphs (b), (c), and (d) of
19 subsection (4), paragraph (b) of subsection (5), and paragraph
20 (b) of subsection (6) of section 215.555, Florida Statutes,
21 are amended to read:
22 215.555 Florida Hurricane Catastrophe Fund.--
23 (2) DEFINITIONS.--As used in this section:
24 (d) "Losses" means direct incurred losses under
25 covered policies, which shall include losses for additional
26 living expenses not to exceed 40 percent of the insured value
27 of a residential structure or its contents and shall exclude
28 loss adjustment expenses. "Losses" does not include losses for
29 fair rental value, loss of rent or rental income use, or
30 business interruption losses.
31 (4) REIMBURSEMENT CONTRACTS.--
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. PCS for SB 1980 (070118)
Barcode 395114
1 (b)1. The contract shall contain a promise by the
2 board to reimburse the insurer for 45 percent, 75 percent, or
3 90 percent of its losses from each covered event in excess of
4 the insurer's retention, plus 5 percent of the reimbursed
5 losses to cover loss adjustment expenses.
6 2. The insurer must elect one of the percentage
7 coverage levels specified in this paragraph and may, upon
8 renewal of a reimbursement contract, elect a lower percentage
9 coverage level if no revenue bonds issued under subsection (6)
10 after a covered event are outstanding, or elect a higher
11 percentage coverage level, regardless of whether or not
12 revenue bonds are outstanding. All members of an insurer group
13 must elect the same percentage coverage level. Any joint
14 underwriting association, risk apportionment plan, or other
15 entity created under s. 627.351 must elect the 90-percent
16 coverage level.
17 3. The contract shall provide that reimbursement
18 amounts shall not be reduced by reinsurance paid or payable to
19 the insurer from other sources.
20 4. Notwithstanding any other provision of this
21 section, the board shall make available to those insurers
22 qualifying as limited apportionment companies under s.
23 627.351(2)(b)3. a contract that cedes to the fund, after
24 retention, an amount up to $10 million reported by such
25 company as of June 1, 2006. The rate to be charged for this
26 coverage shall be 50 percent rate-on-line. The minimum
27 retention level that a carrier must retain is 30 percent of
28 surplus as of June 1, 2006. This coverage shall be in addition
29 to all other coverage that may be provided under this section.
30 This provision shall expire May 31, 2008.
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. PCS for SB 1980 (070118)
Barcode 395114
1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 On page 1, line 3, after the second semicolon,
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5 insert:
6 allowing limited apportionment companies to
7 obtain reinsurance through the Florida
8 Hurricane Catastrophe Fund for a specified
9 period of time;
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