(LATE FILED)Amendment
Bill No. 1748
Amendment No. 523233
CHAMBER ACTION
Senate House
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1Representative(s) Sands offered the following:
2
3     Amendment (with title amendment)
4     Remove everything after the enacting clause and insert:
5     Section 1.  Effective June 1, 2007, subsection (15) is
6added to section 627.215, Florida Statutes, to read:
7     627.215  Excessive profits for workers' compensation,
8employer's liability, commercial property, and commercial
9casualty insurance prohibited.--
10     (15)(a)  Each insurer group offering workers' compensation
11or employer's liability insurance shall also file a schedule of
12loss and loss adjustment experience in this state for each of
13the 10 years previous to the most recent accident year. The
14incurred losses and loss adjustment expenses shall be valued as
15of December 31 of the first year following the latest accident
16year to be reported, developed to an ultimate basis, and at nine
1712-month intervals thereafter, each developed to an ultimate
18basis, so that a total of ten evaluations will be provided for
19each accident year. The first year to be included shall be
20accident year 1996, so that the reporting of 10 accident years
21under this revised evaluation will not take place until accident
22year 2005 data is included in the first report under this
23subsection that shall be filed prior to July 1, 2008, and this
24subsection shall not apply until an insurer group has 10 years
25of loss experience in this state. For reporting purposes
26unrelated to determining excessive profits, the loss and loss
27adjustment experience of each accident year shall continue to be
28reported until each accident year has been reported at eight
29stages of development.
30     (b)  For those insurer groups offering workers'
31compensation or employer's liability insurance during the years
321996 through 2005, an excessive profit has been realized if
33underwriting gain is greater than the anticipated underwriting
34profit plus 5 percent of earned premiums for the 10 most recent
35calendar years for which data is to be filed under this
36subsection. Any excess profit of an insurance company offering
37workers' compensation or employer's liability insurance during
38such period of time shall be returned to policyholders in the
39form of a cash refund or a credit toward future purchase of
40insurance. The excessive amount shall be refunded on a pro rata
41basis in relation to the final compilation year earned premiums
42to the workers' compensation policyholders of record of the
43insurer group on December 31 of the final compilation year.
44     (c)  As used in this subsection with respect to any 10-year
45period, the term "anticipated underwriting profit" means the sum
46of the dollar amounts obtained by multiplying, for each rate
47filing of the insurer group in effect during such period, the
48earned premiums applicable to such rate filing during such
49period by the percentage factor included in such rate filing for
50profit and contingencies, which factor was determined with due
51recognition to investment income from funds generated by
52business in this state; however, the anticipated underwriting
53profit for the purposes of this subsection shall be calculated
54using a profit and contingencies factor that is not less than
55zero. Separate calculations need not be made for consecutive
56rate filings containing the same percentage factor for profits
57and contingencies.
58     (d)  Insurer groups offering workers' compensation
59insurance or employer's liability insurance must file only the
60reports required under this subsection for the purposes of this
61section.
62     Section 2.  Section 627.442, Florida Statutes, is created
63to read:
64     627.442  Insurance contracts.--A person who requires a
65workers' compensation insurance policy pursuant to a
66construction contract may not reject a workers' compensation
67insurance policy issued by a self-insurance fund that is subject
68to part V of chapter 631 based upon the self-insurance fund not
69being rated by a nationally recognized insurance rating service.
70     Section 3.  If any provision of this act or its application
71to any person or circumstances is held invalid, the invalidity
72shall not affect other provisions or applications of the act
73which can be given effect without the invalid provision or
74application, and to this end the provisions of the act are
75declared severable.
76     Section 4.  Except as otherwise expressly provided by this
77act, this act shall take effect upon becoming a law.
78
79========= T I T L E  A M E N D M E N T =========
80     Remove the entire title and insert:
81
A bill to be entitled
82An act relating to insurance; amending s. 627.215, F.S.;
83providing additional filing requirements for certain
84insurers; providing criteria for such requirements;
85requiring refunds of certain excessive profits under
86certain circumstances; providing a definition; providing a
87report filing limitation; creating s. 627.442, F.S.;
88prohibiting the rejection of workers' compensation
89insurance policies issued by certain self-insurance funds
90under certain circumstances; providing severability;
91providing effective dates.


CODING: Words stricken are deletions; words underlined are additions.