| 1 | Representative(s) Sands offered the following: |
| 2 | Amendment (with title amendment) |
| 3 | Remove everything after the enacting clause and insert: |
| 4 | Section 1. Effective June 1, 2007, subsection (15) is |
| 5 | added to section 627.215, Florida Statutes, to read: |
| 6 | 627.215 Excessive profits for workers' compensation, |
| 7 | employer's liability, commercial property, and commercial |
| 8 | casualty insurance prohibited.-- |
| 9 | (15)(a) Each insurer group offering workers' compensation |
| 10 | or employer's liability insurance shall also file a schedule of |
| 11 | loss and loss adjustment experience in this state for each of |
| 12 | the 10 years previous to the most recent accident year. The |
| 13 | incurred losses and loss adjustment expenses shall be valued as |
| 14 | of December 31 of the first year following the latest accident |
| 15 | year to be reported, developed to an ultimate basis, and at nine |
| 16 | 12-month intervals thereafter, each developed to an ultimate |
| 17 | basis, so that a total of ten evaluations will be provided for |
| 18 | each accident year. The first year to be included shall be |
| 19 | accident year 1996, so that the reporting of 10 accident years |
| 20 | under this revised evaluation will not take place until accident |
| 21 | year 2005 data is included in the first report under this |
| 22 | subsection that shall be filed prior to July 1, 2008, and this |
| 23 | subsection shall not apply until an insurer group has 10 years |
| 24 | of loss experience in this state. For reporting purposes |
| 25 | unrelated to determining excessive profits, the loss and loss |
| 26 | adjustment experience of each accident year shall continue to be |
| 27 | reported until each accident year has been reported at eight |
| 28 | stages of development. |
| 29 | (b) For those insurer groups offering workers' |
| 30 | compensation or employer's liability insurance during the years |
| 31 | 1996 through 2005, an excessive profit has been realized if |
| 32 | underwriting gain is greater than the anticipated underwriting |
| 33 | profit plus 5 percent of earned premiums for the 10 most recent |
| 34 | calendar years for which data is to be filed under this |
| 35 | subsection. Any excess profit of an insurance company offering |
| 36 | workers' compensation or employer's liability insurance during |
| 37 | such period of time shall be returned to policyholders in the |
| 38 | form of a cash refund or a credit toward future purchase of |
| 39 | insurance. The excessive amount shall be refunded on a pro rata |
| 40 | basis in relation to the final compilation year earned premiums |
| 41 | to the workers' compensation policyholders of record of the |
| 42 | insurer group on December 31 of the final compilation year. |
| 43 | (c) As used in this subsection with respect to any 10-year |
| 44 | period, the term "anticipated underwriting profit" means the sum |
| 45 | of the dollar amounts obtained by multiplying, for each rate |
| 46 | filing of the insurer group in effect during such period, the |
| 47 | earned premiums applicable to such rate filing during such |
| 48 | period by the percentage factor included in such rate filing for |
| 49 | profit and contingencies, which factor was determined with due |
| 50 | recognition to investment income from funds generated by |
| 51 | business in this state; however, the anticipated underwriting |
| 52 | profit for the purposes of this subsection shall be calculated |
| 53 | using a profit and contingencies factor that is not less than |
| 54 | zero. Separate calculations need not be made for consecutive |
| 55 | rate filings containing the same percentage factor for profits |
| 56 | and contingencies. |
| 57 | (d) Insurer groups offering workers' compensation |
| 58 | insurance or employer's liability insurance must file only the |
| 59 | reports required under this subsection for the purposes of this |
| 60 | section. |
| 61 | Section 2. Section 627.442, Florida Statutes, is created |
| 62 | to read: |
| 63 | 627.442 Insurance contracts.--A person who requires a |
| 64 | workers' compensation insurance policy pursuant to a |
| 65 | construction contract may not reject a workers' compensation |
| 66 | insurance policy issued by a self-insurance fund that is subject |
| 67 | to part V of chapter 631 based upon the self-insurance fund not |
| 68 | being rated by a nationally recognized insurance rating service. |
| 69 | Section 3. If any provision of this act or its application |
| 70 | to any person or circumstances is held invalid, the invalidity |
| 71 | shall not affect other provisions or applications of the act |
| 72 | which can be given effect without the invalid provision or |
| 73 | application, and to this end the provisions of the act are |
| 74 | declared severable. |
| 75 | Section 4. Except as otherwise expressly provided by this |
| 76 | act, this act shall take effect upon becoming a law. |
| 77 |
|
| 78 | ========= T I T L E A M E N D M E N T ========= |
| 79 | Remove the entire title and insert: |
| 80 | A bill to be entitled |
| 81 | An act relating to insurance; amending s. 627.215, F.S.; |
| 82 | providing additional filing requirements for certain |
| 83 | insurers; providing criteria for such requirements; |
| 84 | requiring refunds of certain excessive profits under |
| 85 | certain circumstances; providing a definition; providing a |
| 86 | report filing limitation; creating s. 627.442, F.S.; |
| 87 | prohibiting the rejection of workers' compensation |
| 88 | insurance policies issued by certain self-insurance funds |
| 89 | under certain circumstances; providing severability; |
| 90 | providing effective dates. |