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The Committee on General Government Appropriations (Bennett)

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recommended the following amendment:

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     Senate Amendment (with title amendment)

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     On line 30

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insert:

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     Section 1.  Paragraph (b) of subsection (6) of section

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215.555, Florida Statutes, is amended to read:

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     215.555  Florida Hurricane Catastrophe Fund.--

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     (6)  REVENUE BONDS.--

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     (b)  Emergency assessments.--

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     1.  If the board determines that the amount of revenue

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produced under subsection (5) is insufficient to fund the

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obligations, costs, and expenses of the fund and the corporation,

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including repayment of revenue bonds and that portion of the debt

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service coverage not met by reimbursement premiums, the board

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shall direct the Office of Insurance Regulation to levy, by

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order, an emergency assessment on direct premiums for all

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property and casualty lines of business in this state, including

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property and casualty business of surplus lines insurers

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regulated under part VIII of chapter 626, but not including any

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workers' compensation premiums, or medical malpractice premiums,

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or nonassessable commercial property insurance as defined in s.

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627.041(11). As used in this subsection, the term "property and

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casualty business" includes all lines of business identified on

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Form 2, Exhibit of Premiums and Losses, in the annual statement

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required of authorized insurers by s. 624.424 and any rule

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adopted under this section, except for those lines identified as

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accident and health insurance and except for policies written

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under the National Flood Insurance Program. The assessment shall

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be specified as a percentage of direct written premium and is

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subject to annual adjustments by the board in order to meet debt

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obligations. The same percentage shall apply to all policies in

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lines of business subject to the assessment issued or renewed

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during the 12-month period beginning on the effective date of the

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assessment.

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     2.  A premium is not subject to an annual assessment under

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this paragraph in excess of 6 percent of premium with respect to

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obligations arising out of losses attributable to any one

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contract year, and a premium is not subject to an aggregate

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annual assessment under this paragraph in excess of 10 percent of

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premium. An annual assessment under this paragraph shall continue

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as long as the revenue bonds issued with respect to which the

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assessment was imposed are outstanding, including any bonds the

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proceeds of which were used to refund the revenue bonds, unless

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adequate provision has been made for the payment of the bonds

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under the documents authorizing issuance of the bonds.

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     3.  Emergency assessments shall be collected from

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policyholders. Emergency assessments shall be remitted by

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insurers as a percentage of direct written premium for the

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preceding calendar quarter as specified in the order from the

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Office of Insurance Regulation. The office shall verify the

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accurate and timely collection and remittance of emergency

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assessments and shall report the information to the board in a

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form and at a time specified by the board. Each insurer

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collecting assessments shall provide the information with respect

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to premiums and collections as may be required by the office to

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enable the office to monitor and verify compliance with this

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paragraph.

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     4.  With respect to assessments of surplus lines premiums,

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each surplus lines agent shall collect the assessment at the same

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time as the agent collects the surplus lines tax required by s.

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626.932, and the surplus lines agent shall remit the assessment

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to the Florida Surplus Lines Service Office created by s. 626.921

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at the same time as the agent remits the surplus lines tax to the

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Florida Surplus Lines Service Office. The emergency assessment on

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each insured procuring coverage and filing under s. 626.938 shall

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be remitted by the insured to the Florida Surplus Lines Service

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Office at the time the insured pays the surplus lines tax to the

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Florida Surplus Lines Service Office. The Florida Surplus Lines

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Service Office shall remit the collected assessments to the fund

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or corporation as provided in the order levied by the Office of

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Insurance Regulation. The Florida Surplus Lines Service Office

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shall verify the proper application of such emergency assessments

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and shall assist the board in ensuring the accurate and timely

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collection and remittance of assessments as required by the

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board. The Florida Surplus Lines Service Office shall annually

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calculate the aggregate written premium on property and casualty

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business, other than workers' compensation and medical

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malpractice, procured through surplus lines agents and insureds

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procuring coverage and filing under s. 626.938 and shall report

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the information to the board in a form and at a time specified by

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the board.

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     5.  Any assessment authority not used for a particular

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contract year may be used for a subsequent contract year. If, for

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a subsequent contract year, the board determines that the amount

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of revenue produced under subsection (5) is insufficient to fund

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the obligations, costs, and expenses of the fund and the

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corporation, including repayment of revenue bonds and that

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portion of the debt service coverage not met by reimbursement

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premiums, the board shall direct the Office of Insurance

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Regulation to levy an emergency assessment up to an amount not

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exceeding the amount of unused assessment authority from a

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previous contract year or years, plus an additional 4 percent

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provided that the assessments in the aggregate do not exceed the

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limits specified in subparagraph 2.

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     6.  The assessments otherwise payable to the corporation

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under this paragraph shall be paid to the fund unless and until

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the Office of Insurance Regulation and the Florida Surplus Lines

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Service Office have received from the corporation and the fund a

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notice, which shall be conclusive and upon which they may rely

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without further inquiry, that the corporation has issued bonds

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and the fund has no agreements in effect with local governments

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under paragraph (c). On or after the date of the notice and until

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the date the corporation has no bonds outstanding, the fund shall

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have no right, title, or interest in or to the assessments,

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except as provided in the fund's agreement with the corporation.

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     7.  Emergency assessments are not premium and are not

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subject to the premium tax, to the surplus lines tax, to any

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fees, or to any commissions. An insurer is liable for all

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assessments that it collects and must treat the failure of an

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insured to pay an assessment as a failure to pay the premium. An

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insurer is not liable for uncollectible assessments.

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     8.  When an insurer is required to return an unearned

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premium, it shall also return any collected assessment

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attributable to the unearned premium. A credit adjustment to the

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collected assessment may be made by the insurer with regard to

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future remittances that are payable to the fund or corporation,

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but the insurer is not entitled to a refund.

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     9.  When a surplus lines insured or an insured who has

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procured coverage and filed under s. 626.938 is entitled to the

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return of an unearned premium, the Florida Surplus Lines Service

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Office shall provide a credit or refund to the agent or such

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insured for the collected assessment attributable to the unearned

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premium prior to remitting the emergency assessment collected to

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the fund or corporation.

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     10.  The exemption of medical malpractice insurance premiums

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from emergency assessments under this paragraph is repealed May

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31, 2010, and medical malpractice insurance premiums shall be

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subject to emergency assessments attributable to loss events

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occurring in the contract years commencing on June 1, 2010.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     On line 2, after the semicolon,

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insert:

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amending s. 215.555, F.S.; excluding nonassessable

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commercial property insurance from emergency assessments

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for the Florida Hurricane Catastrophe Fund;

4/21/2008  9:26:00 AM     601-08105-08