Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. PCS for SB 1980 (070118)
                        Barcode 530242
                            CHAMBER ACTION
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       04/10/2006 11:44 AM         .                    
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11  The Committee on Banking and Insurance (Garcia) 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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    12:23 PM   04/06/06                            s1980c-bi40-j06

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. PCS for SB 1980 (070118) Barcode 530242 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. 31 2 12:23 PM 04/06/06 s1980c-bi40-j06
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. PCS for SB 1980 (070118) Barcode 530242 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, 4 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; 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3 12:23 PM 04/06/06 s1980c-bi40-j06