Florida Senate - 2010                                    SB 2084
       
       
       
       By Senator Richter
       
       
       
       
       37-01308A-10                                          20102084__
    1                        A bill to be entitled                      
    2         An act relating to minimum surplus requirements for
    3         mortgage guaranty insurers; amending s. 635.042, F.S.;
    4         authorizing the Commissioner of Insurance Regulation
    5         to permit a temporary exception to certain
    6         requirements under certain circumstances; revising
    7         authority of the Office of Insurance Regulation to
    8         take action against a noncomplying insurer under
    9         certain circumstances; providing an effective date.
   10  
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Section 635.042, Florida Statutes, is amended to
   14  read:
   15         635.042 Minimum surplus requirement.—
   16         (1) A mortgage guaranty insurer shall maintain a minimum
   17  surplus of not less than the greater of $4 million or 10 percent
   18  of the insurer’s total outstanding liabilities other than the
   19  required contingency reserve. A mortgage guaranty insurer is not
   20  required to have a surplus as to policyholders greater than $100
   21  million.
   22         (2) A mortgage guaranty insurer must possess sufficient
   23  capital and surplus so that the total outstanding aggregate
   24  exposure net of reinsurance under mortgage guaranty policies
   25  written by the insurer does not exceed 25 times its paid-in
   26  capital, surplus, and contingency reserve combined. A mortgage
   27  guaranty insurer shall disclose in the audited financial reports
   28  required under s. 624.424(8), the total aggregate exposure net
   29  of reinsurance under mortgage guaranty policies written by the
   30  insurer. The Commissioner of Insurance Regulation may permit a
   31  temporary exception to the requirements of this subsection at
   32  the written request of a mortgage guaranty insurer upon a
   33  finding that the mortgage guaranty insurer’s financial position
   34  is reasonable in relationship to the mortgage guaranty insurer’s
   35  aggregate insured risk and financial needs.
   36         (3) If a mortgage guaranty insurer is not in compliance
   37  with this section and has not been permitted an exception as
   38  provided in subsection (2), the office may take any action
   39  against the insurer that the office may take against an insurer
   40  that is not in compliance with s. 624.408.
   41         Section 2. This act shall take effect July 1, 2010.