ENROLLED
       2009 Legislature                   CS for SB 28-A, 1st Engrossed
       
       
       
       
       
       
                                                              200928Aer
    1                                                                   
    2         An act relating to the Insurance Capital Build-Up
    3         Incentive Program; amending s. 215.5595, F.S.;
    4         requiring that repayments made by property insurers of
    5         surplus notes issued under the program be deposited
    6         into the General Revenue Fund; providing an effective
    7         date.
    8         
    9  Be It Enacted by the Legislature of the State of Florida:
   10         
   11         Section 1. Paragraph (f) of subsection (2) of section
   12  215.5595, Florida Statutes, is amended to read:
   13         215.5595 Insurance Capital Build-Up Incentive Program.—
   14         (2) The purpose of this section is to provide funds in
   15  exchange for surplus notes to be issued by new or existing
   16  authorized residential property insurers under the Insurance
   17  Capital Build-Up Incentive Program administered by the State
   18  Board of Administration, under the following conditions:
   19         (f)1. The surplus note must be repayable to the state with
   20  a term of 20 years. The surplus note shall accrue interest on
   21  the unpaid principal balance at a rate equivalent to the 10-year
   22  U.S. Treasury Bond rate, require the payment only of interest
   23  during the first 3 years, and include such other terms as
   24  approved by the board. The board may charge late fees up to 5
   25  percent for late payments or other late remittances. Payment of
   26  principal, interest, or late fees by the insurer on the surplus
   27  note must be approved by the Commissioner of Insurance, who
   28  shall approve such payment unless the commissioner determines
   29  that such payment will substantially impair the financial
   30  condition of the insurer. If such a determination is made, the
   31  commissioner shall approve such payment that will not
   32  substantially impair the financial condition of the insurer.
   33         2. Within 30 days after receiving principal, interest, and
   34  late fees from insurers, the board shall deposit such moneys
   35  into the General Revenue Fund.
   36         Section 2. This act shall take effect upon becoming a law.