Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for SB 2498
                        Barcode 534590
                            CHAMBER ACTION
              Senate                               House
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 3         Floor: 9/AD/2R          .                    
       05/01/2007 03:10 PM         .                    
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11  Senator Deutch moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 1, between lines 17 and 18,
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16  insert:  
17         Section 1.  Paragraph (b) of subsection (6) of section
18  215.555, Florida Statutes, as amended by chapter 2007-1, Laws
19  of Florida, is amended to read:
20         215.555  Florida Hurricane Catastrophe Fund.--
21         (6)  REVENUE BONDS.--
22         (b)  Emergency assessments.--
23         1.  If the board determines that the amount of revenue
24  produced under subsection (5) is insufficient to fund the
25  obligations, costs, and expenses of the fund and the
26  corporation, including repayment of revenue bonds and that
27  portion of the debt service coverage not met by reimbursement
28  premiums, the board shall direct the Office of Insurance
29  Regulation to levy, by order, an emergency assessment on
30  direct premiums for all property and casualty lines of
31  business in this state, including property and casualty
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    10:23 AM   05/01/07                            s2498c1c-30-e3p

Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for SB 2498 Barcode 534590 1 business of surplus lines insurers regulated under part VIII 2 of chapter 626, but not including any workers' compensation 3 premiums or medical malpractice premiums. As used in this 4 subsection, the term "property and casualty business" includes 5 all lines of business identified on Form 2, Exhibit of 6 Premiums and Losses, in the annual statement required of 7 authorized insurers by s. 624.424 and any rule adopted under 8 this section, except for those lines identified as accident 9 and health insurance and except for policies written under the 10 National Flood Insurance Program. The assessment shall be 11 specified as a percentage of direct written premium and is 12 subject to annual adjustments by the board in order to meet 13 debt obligations. The same percentage shall apply to all 14 policies in lines of business subject to the assessment issued 15 or renewed during the 12-month period beginning on the 16 effective date of the assessment. 17 2. A premium is not subject to an annual assessment 18 under this paragraph in excess of 6 percent of premium with 19 respect to obligations arising out of losses attributable to 20 any one contract year, and a premium is not subject to an 21 aggregate annual assessment under this paragraph in excess of 22 10 percent of premium. An annual assessment under this 23 paragraph shall continue as long as the revenue bonds issued 24 with respect to which the assessment was imposed are 25 outstanding, including any bonds the proceeds of which were 26 used to refund the revenue bonds, unless adequate provision 27 has been made for the payment of the bonds under the documents 28 authorizing issuance of the bonds. 29 3. Emergency assessments shall be collected from 30 policyholders. Emergency assessments shall be remitted by 31 insurers as a percentage of direct written premium for the 2 10:23 AM 05/01/07 s2498c1c-30-e3p
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for SB 2498 Barcode 534590 1 preceding calendar quarter as specified in the order from the 2 Office of Insurance Regulation. The office shall verify the 3 accurate and timely collection and remittance of emergency 4 assessments and shall report the information to the board in a 5 form and at a time specified by the board. Each insurer 6 collecting assessments shall provide the information with 7 respect to premiums and collections as may be required by the 8 office to enable the office to monitor and verify compliance 9 with this paragraph. 10 4. With respect to assessments of surplus lines 11 premiums, each surplus lines agent shall collect the 12 assessment at the same time as the agent collects the surplus 13 lines tax required by s. 626.932, and the surplus lines agent 14 shall remit the assessment to the Florida Surplus Lines 15 Service Office created by s. 626.921 at the same time as the 16 agent remits the surplus lines tax to the Florida Surplus 17 Lines Service Office. The emergency assessment on each insured 18 procuring coverage and filing under s. 626.938 shall be 19 remitted by the insured to the Florida Surplus Lines Service 20 Office at the time the insured pays the surplus lines tax to 21 the Florida Surplus Lines Service Office. The Florida Surplus 22 Lines Service Office shall remit the collected assessments to 23 the fund or corporation as provided in the order levied by the 24 Office of Insurance Regulation. The Florida Surplus Lines 25 Service Office shall verify the proper application of such 26 emergency assessments and shall assist the board in ensuring 27 the accurate and timely collection and remittance of 28 assessments as required by the board. The Florida Surplus 29 Lines Service Office shall annually calculate the aggregate 30 written premium on property and casualty business, other than 31 workers' compensation and medical malpractice, procured 3 10:23 AM 05/01/07 s2498c1c-30-e3p
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for SB 2498 Barcode 534590 1 through surplus lines agents and insureds procuring coverage 2 and filing under s. 626.938 and shall report the information 3 to the board in a form and at a time specified by the board. 4 5. Any assessment authority not used for a particular 5 contract year may be used for a subsequent contract year. If, 6 for a subsequent contract year, the board determines that the 7 amount of revenue produced under subsection (5) is 8 insufficient to fund the obligations, costs, and expenses of 9 the fund and the corporation, including repayment of revenue 10 bonds and that portion of the debt service coverage not met by 11 reimbursement premiums, the board shall direct the Office of 12 Insurance Regulation to levy an emergency assessment up to an 13 amount not exceeding the amount of unused assessment authority 14 from a previous contract year or years, plus an additional 4 15 percent provided that the assessments in the aggregate do not 16 exceed the limits specified in subparagraph 2. 17 6. The assessments otherwise payable to the 18 corporation under this paragraph shall be paid to the fund 19 unless and until the Office of Insurance Regulation and the 20 Florida Surplus Lines Service Office have received from the 21 corporation and the fund a notice, which shall be conclusive 22 and upon which they may rely without further inquiry, that the 23 corporation has issued bonds and the fund has no agreements in 24 effect with local governments under paragraph (c). On or after 25 the date of the notice and until the date the corporation has 26 no bonds outstanding, the fund shall have no right, title, or 27 interest in or to the assessments, except as provided in the 28 fund's agreement with the corporation. 29 7. Emergency assessments are not premium and are not 30 subject to the premium tax, to the surplus lines tax, to any 31 fees, or to any commissions. An insurer is liable for all 4 10:23 AM 05/01/07 s2498c1c-30-e3p
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for SB 2498 Barcode 534590 1 assessments that it collects and must treat the failure of an 2 insured to pay an assessment as a failure to pay the premium. 3 An insurer is not liable for uncollectible assessments. 4 8. When an insurer is required to return an unearned 5 premium, it shall also return any collected assessment 6 attributable to the unearned premium. A credit adjustment to 7 the collected assessment may be made by the insurer with 8 regard to future remittances that are payable to the fund or 9 corporation, but the insurer is not entitled to a refund. 10 9. When a surplus lines insured or an insured who has 11 procured coverage and filed under s. 626.938 is entitled to 12 the return of an unearned premium, the Florida Surplus Lines 13 Service Office shall provide a credit or refund to the agent 14 or such insured for the collected assessment attributable to 15 the unearned premium prior to remitting the emergency 16 assessment collected to the fund or corporation. 17 10. The exemption of medical malpractice insurance 18 premiums from emergency assessments under this paragraph is 19 repealed May 31, 2010 May 31, 2007, and medical malpractice 20 insurance premiums shall be subject to emergency assessments 21 attributable to loss events occurring in the contract years 22 commencing on June 1, 2010 June 1, 2007. 23 24 (Redesignate subsequent sections.) 25 26 27 ================ T I T L E A M E N D M E N T =============== 28 And the title is amended as follows: 29 On page 1, line 2, after the semicolon, 30 31 insert: 5 10:23 AM 05/01/07 s2498c1c-30-e3p
Florida Senate - 2007 SENATOR AMENDMENT Bill No. CS for SB 2498 Barcode 534590 1 amending s. 215.555, F.S.; revising the dates 2 regarding an exemption from emergency 3 assessments for medical malpractice insurance 4 premiums; 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6 10:23 AM 05/01/07 s2498c1c-30-e3p