| 1 | Representative Schwartz offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 117 and 118, insert: |
| 5 | Section 3. Paragraph (b) of subsection (4) of section |
| 6 | 215.555, Florida Statutes, is amended to read: |
| 7 | 215.555 Florida Hurricane Catastrophe Fund.-- |
| 8 | (4) REIMBURSEMENT CONTRACTS.-- |
| 9 | (b)1. The contract shall contain a promise by the board to |
| 10 | reimburse the insurer for 45 percent, 75 percent, or 90 percent |
| 11 | of its losses from each covered event in excess of the insurer's |
| 12 | retention, plus 5 percent of the reimbursed losses to cover loss |
| 13 | adjustment expenses. |
| 14 | 2. The insurer must elect one of the percentage coverage |
| 15 | levels specified in this paragraph and may, upon renewal of a |
| 16 | reimbursement contract, elect a lower percentage coverage level |
| 17 | if no revenue bonds issued under subsection (6) after a covered |
| 18 | event are outstanding, or elect a higher percentage coverage |
| 19 | level, regardless of whether or not revenue bonds are |
| 20 | outstanding. All members of an insurer group must elect the same |
| 21 | percentage coverage level. Any joint underwriting association, |
| 22 | risk apportionment plan, or other entity created under s. |
| 23 | 627.351 must elect the 90-percent coverage level. |
| 24 | 3. The contract shall provide that reimbursement amounts |
| 25 | shall not be reduced by reinsurance paid or payable to the |
| 26 | insurer from other sources. |
| 27 | 4. Notwithstanding any other provision contained in this |
| 28 | section, the board shall make available to insurers that |
| 29 | purchased coverage provided by this subparagraph in 2007 2006, |
| 30 | insurers qualifying as limited apportionment companies under s. |
| 31 | 627.351(6)(c), and insurers that have been were approved to |
| 32 | participate in 2006 or that are approved in 2007 for the |
| 33 | Insurance Capital Build-Up Incentive Program pursuant to s. |
| 34 | 215.5595, a contract or contract addendum that provides an |
| 35 | additional amount of reimbursement coverage of up to $10 |
| 36 | million. The premium to be charged for this additional |
| 37 | reimbursement coverage shall be 50 percent of the additional |
| 38 | reimbursement coverage provided, which shall include one prepaid |
| 39 | reinstatement. The minimum retention level that an eligible |
| 40 | participating insurer must retain associated with this |
| 41 | additional coverage layer is 30 percent of the insurer's surplus |
| 42 | as of December 31, 2007 2006. This coverage shall be in addition |
| 43 | to all other coverage that may be provided under this section. |
| 44 | The coverage provided by the fund under this subparagraph shall |
| 45 | be in addition to the claims-paying capacity as defined in |
| 46 | subparagraph (c)1., but only with respect to those insurers that |
| 47 | select the additional coverage option and meet the requirements |
| 48 | of this subparagraph. The claims-paying capacity with respect to |
| 49 | all other participating insurers and limited apportionment |
| 50 | companies that do not select the additional coverage option |
| 51 | shall be limited to their reimbursement premium's proportionate |
| 52 | share of the actual claims-paying capacity otherwise defined in |
| 53 | subparagraph (c)1. and as provided for under the terms of the |
| 54 | reimbursement contract. Coverage provided in the reimbursement |
| 55 | contract shall will not be affected by the additional premiums |
| 56 | paid by participating insurers exercising the additional |
| 57 | coverage option allowed in this subparagraph. This subparagraph |
| 58 | expires on May 31, 2009 2008. |
| 59 |
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| 60 | ----------------------------------------------------- |
| 61 | T I T L E A M E N D M E N T |
| 62 | Remove line 17 and insert: |
| 63 | dismissed; amending s. 215.555, F.S.; extending for an |
| 64 | additional year the offer of reimbursement coverage for |
| 65 | specified insurers; revising the qualifying criteria for such |
| 66 | insurers; revising provisions to conform; providing effective |
| 67 | dates. |
| 68 |
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