| 1 | Representative R. Garcia offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove line 130 and insert: |
| 5 | Section 5. Effective July 1, 2007, section 627.4108, |
| 6 | Florida Statutes, is created to read: |
| 7 | 627.4108 Credit for administrative efficiencies.--A life |
| 8 | or health insurer or health maintenance organization may offer |
| 9 | to groups a credit reflecting demonstrable administrative |
| 10 | savings resulting from efficiencies that occur when two or more |
| 11 | life or health insurance products, or a health maintenance |
| 12 | organization contract and one or more life or health insurance |
| 13 | products, are purchased from the insurer or its affiliated |
| 14 | companies or health maintenance organization. The insurer or |
| 15 | health maintenance organization shall be required to demonstrate |
| 16 | to the office that the proposed credit is reasonable, does not |
| 17 | exceed the administrative savings, and is offered in a |
| 18 | nondiscriminatory manner. Such demonstration may be submitted |
| 19 | for approval separate from any premium rate filing. In no event |
| 20 | shall such credit, resulting in reduction of revenue, be |
| 21 | reflected in the experience used in rate filings. The commission |
| 22 | may establish by rule procedures to be used in ascertaining the |
| 23 | appropriate amount and reasonableness of the credit in relation |
| 24 | to the administrative savings and to ensure that it is offered |
| 25 | in a nondiscriminatory manner. |
| 26 | Section 6. Except as otherwise expressly provided in this |
| 27 | act, this act shall take effect January 1, 2008, and |
| 28 |
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| 29 | ======= T I T L E A M E N D M E N T ======= |
| 30 | Remove line 9 and 10 and insert: |
| 31 | maintenance contracts; creating s. 627.4108, F.S.; authorizing |
| 32 | life or health insurers or health maintenance organizations to |
| 33 | offer to groups a credit reflecting demonstrable administrative |
| 34 | savings resulting from efficiencies under specified conditions; |
| 35 | providing applicability; authorizing the Financial Services |
| 36 | Commission to establish certain rules; providing effective |
| 37 | dates. |