Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 4-A
Barcode 660122
CHAMBER ACTION
Senate House
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01/17/2007 04:04 PM .
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11 Senator Fasano moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 81, between lines 7 and 8,
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16 insert:
17 Section 16. Section 624.4096, Florida Statutes, is
18 created to read:
19 624.4096 Florida only property subsidiaries or
20 affiliates prohibited.--
21 (1) "Florida-only property insurer" means an insurer
22 who holds a certificate of authority in this state to write
23 property business and who is a member of a holding company
24 group that includes insurers that write property insurance in
25 other states.
26 (2) An insurer or insurer group may not form or
27 acquire a subsidiary or an affiliate that is a Florida-only
28 property insurer after March 1, 2007.
29 (3) An insurer or insurer group may not operate,
30 exercise control of, or otherwise maintain a subsidiary or
31 affiliate that is a Florida-only property insurer 180 days
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 4-A
Barcode 660122
1 after Mar 1, 2007.
2 (4) Any existing Florida-only property insurer that is
3 member of a holding company subject to s. 628.801 shall cease
4 writing new policies after March 1, 2007. The Florida-only
5 property insurer shall transfer all Florida policies to an
6 affiliate that is authorized to transact property insurance in
7 other states and this state. The Florida-only property insurer
8 shall file a plan for the transfer of policies with the office
9 for approval, by June 1, 2007. The plan shall provide for the
10 transfer of all policies within eighteen months of the date
11 the plan is approved by the office. A Florida-only property
12 insurer may not cancel or renew any policy except as permitted
13 by the plan which is approved by the office, except for
14 nonpayment of premium or fraud by the policyholder. Upon
15 transfer of all policies, the Florida-only property insurer
16 shall surrender its certificate of authority.
17 (5) If the holding company or affiliated insurer does
18 not have an affiliated property and casualty insurer
19 authorized to write property and casualty policies in this
20 state, then the Florida-only insurer shall, upon approval of
21 the office, transfer its policies to another insurer. The
22 assuming insurer shall be able to count the additional
23 policies assumed for exposure reporting purposes with the
24 Florida Hurricane Catastrophe Fund.
25 (6) If no other insurer will accept the transfer of
26 policies, the Florida-only insurer may make a one-time
27 election to transfer its policies to the Citizens Property
28 Insurance Corporation by May 30, 2007. The transfer shall be
29 made by an assumption that includes the payment of all
30 unearned premium from the Florida-only insurer to Citizens for
31 the duration of the policy period. Any insurance holding
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10:56 AM 01/17/07 s0004Ac-11-e6t
Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 4-A
Barcode 660122
1 company group opting to make this one-time election shall
2 surrender the certificate of authority of its Florida-only
3 insurer within 30 days after the transfer of policies, and for
4 10 years thereafter, a member of the insurance holding company
5 group is not eligible to apply for a new certificate of
6 authority in the state of Florida.
7 (7) The commission may adopt rules necessary to
8 implement the provisions of this section.
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10 (Redesignate subsequent sections.)
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13 ================ T I T L E A M E N D M E N T ===============
14 And the title is amended as follows:
15 On page 5, line 25, after the semicolon,
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17 insert:
18 creating s. 624.4096, F.S.; providing a
19 definition for the term "Florida-only property
20 insurer; prohibiting an insurer from forming a
21 certain subsidiary or affiliate; prohibiting an
22 insurer from operating a certain subsidiary or
23 affiliate for a limited time; providing that
24 certain Florida-only property insurers to cease
25 writing new policies; requiring a Florida-only
26 property insurer to transfer policies to
27 certain affiliates; prohibiting a Florida-only
28 property insurer from canceling or renewing a
29 policy; requiring a Florida-only property
30 insurer to surrender its certificate of
31 authority; requiring a Florida-only property to
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10:56 AM 01/17/07 s0004Ac-11-e6t
Florida Senate - 2007 SENATOR AMENDMENT
Bill No. SB 4-A
Barcode 660122
1 transfer its policies to another insurer under
2 certain conditions; authorizing a Florida-only
3 insurer to make a one-time election to transfer
4 its policies to the Citizens Property Insurance
5 Corporation; authorizing the commission to
6 adopt rules;
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