Florida Senate - 2011 COMMITTEE AMENDMENT Bill No. CS for SB 1816 Barcode 846588 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Budget Subcommittee on Finance and Tax (Bogdanoff) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 98 - 138 4 and insert: 5 Section 4. Section 626.9362, Florida Statutes, is created 6 to read: 7 626.9362 Multistate reciprocal agreement or compact fiscal 8 analysis.—For the purpose of carrying out the Nonadmitted and 9 Reinsurance Reform Act of 2010, 15 U.S.C. 8201 et seq., the 10 insurance commissioner, in conjunction with the Florida Surplus 11 Lines Service Office, shall conduct a fiscal analysis of the 12 impact of this state entering into the Nonadmitted Insurance 13 Multi-State Agreement and the Surplus Lines Insurance Multi 14 State Compliance Compact for determining eligibility for 15 placement of nonadmitted insurance, for payment, reporting, and 16 collection of the premium tax on nonadmitted insurance. The 17 fiscal analysis report must also include: 18 (1) The date that the Nonadmitted Insurance Multi-State 19 Agreement took effect and a copy of all rules, regulations, and 20 procedures, adopted pursuant to the agreement. 21 (2) The date that the Surplus Lines Insurance Multi-State 22 Compliance Compact took effect and a copy of all rules, 23 regulations, and procedures, adopted pursuant to the compact. 24 (3) The names of the states that have joined or agreed to 25 join the Nonadmitted Insurance Multi-State Agreement and the 26 Surplus Lines Insurance Multi-State Agreement as of the date of 27 the estimates required under subsections (5)-(8). 28 (4) The total amount of nonadmitted insurance premium and 29 the premium tax payable on such premium by each state named in 30 (3). 31 (5) An estimate of the total premium on nonadmitted 32 insurance covering properties, risks, or exposures located 33 solely in this state and an estimate of the amount of premium 34 tax payable on those properties, risks, or exposures. The 35 estimate also must include the number of policies, the number 36 and location of risks covered, the source of the information, 37 and the methods used to make the estimate. 38 (6) An estimate of the total amount of premium on 39 nonadmitted insurance covering properties, risks, or exposures 40 located in multiple states for which this state is the home 41 state, as defined in the Nonadmitted and Reinsurance Reform Act 42 of 2010, and the total amount of premium tax payable to this 43 state on those properties, risks, or exposures if this state is 44 not a member of the Nonadmitted Insurance Multi-State Agreement 45 or the Surplus Lines Insurance Multi-State Compliance Compact. 46 The estimate also must include the number of policies, the 47 number and location of risks covered, the source of the 48 information, and the methods used to make the estimate. 49 (7) An estimate of the total amount of premium on 50 nonadmitted insurance covering properties, risks, or exposures 51 located in multiple states where Florida is the home state, as 52 defined in the Nonadmitted and Reinsurance Reform Act, and the 53 total amount of premium tax payable to this state on those 54 properties, risks, or exposures payable to this state if this 55 state is a member of the Nonadmitted Insurance Multi-State 56 Agreement and if this state is a member of the Surplus Lines 57 Insurance Multi-State Compliance Compact. The estimate also must 58 include the number of policies, the number and location of risks 59 covered, the source of the information, and the methods used to 60 make the estimate. 61 (8) An estimate of the total amount of premium on 62 nonadmitted insurance covering properties, risks, or exposures 63 located in multiple states where a state other than this state 64 is the home state, as defined in the Nonadmitted Reinsurance 65 Reform Act, and the total amount of premium tax payable to this 66 state on those properties, risks, or exposures payable to this 67 state if this state is a member of the Nonadmitted Insurance 68 Multi-State Agreement and if this state is a member of the 69 Surplus Lines Insurance Multi-State Compliance Compact. The 70 estimate also must include the number of policies, the number 71 and location of risks covered, the source of the information, 72 and the methods used to make the estimate. 73 74 The insurance commissioner shall submit the fiscal analysis 75 report to the Governor, the President of the Senate, and the 76 Speaker of the House of Representatives by December 31, 2011. 77 The fiscal analysis must include the information used to 78 complete the analysis and a recommendation of whether fiscal 79 advantages to this state exist to enter into a multistate 80 reciprocal compact or agreement. 81 82 ================= T I T L E A M E N D M E N T ================ 83 And the title is amended as follows: 84 Delete lines 14 - 54 85 and insert: 86 certain circumstances; creating s. 626.9362, F.S.; 87 requiring the insurance commissioner, in conjunction 88 with the Florida Surplus Lines Service Office, to 89 conduct a fiscal analysis of the benefits this state 90 would receive by participating in the Nonadmitted 91 Insurance Multi-State Agreement or the Surplus Lines 92 Insurance Multi-State Compliance Compact; requiring 93 the findings and recommendations of the analysis to be 94 reported to the Governor and the Legislature; 95 providing for application; amending s. 626.938, F.S.; 96 requiring certain insureds or self insurers engaging 97 in specified insurance transactions with a foreign or 98 alien insurer to compute the premium tax and service 99 fees based on the gross premium under certain 100 circumstances; requiring such insureds or self 101 insurers to pay the applicable premium tax to the 102 department and the service fee to the Florida Surplus 103 Lines Service Office on or before a specified time; 104 providing an effective date. 105 106 WHEREAS, the 111th Congress passed the Nonadmitted and 107 Reinsurance Reform Act of 2010 (NRRA), and 108 WHEREAS, the NRRA provides that no state other than the 109 home state of an insured may require any premium tax payment for 110 nonadmitted insurance and defines “home state” as the state in 111 which an insured maintains its principal place of business [15 112 U.S.C. s. 8206], and 113 WHEREAS, as a result of the NRRA, premium tax payments that 114 would otherwise be paid to Florida will be paid to other states, 115 and 116 WHEREAS, the NRRA allows states to enter into a compact or 117 otherwise establish procedures to allocate among the states the 118 premium taxes paid to an insured’s home state, and 119 WHEREAS, the National Association of Insurance 120 Commissioners and the National Conference of Insurance 121 Legislators have adopted agreements or compacts for states to 122 use for that purpose, and 123 WHEREAS, a state must enter into an agreement or otherwise 124 establish procedures to allocate among the states the premium 125 taxes on nonadmitted insurance paid to an insured’s home state 126 before the expiration of a 330-day period that began on July 21, 127 2010, to apply to the payment of taxes to other states on the 128 effective date of this act, pursuant to the NRRA [15 U.S.C. s. 129 8201], NOW, THEREFORE,