Florida Senate - 2012                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 245, 1st Eng.
       
       
       
       
       
       
                                Barcode 669766                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 2/AD/2R         .         Floor: SENA2/C         
             03/05/2012 12:06 PM       .      03/06/2012 02:25 PM       
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       Senator Richter moved the following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 75 - 131
    4  and insert:
    5  under sub-subparagraph (b)3.c. (b)3.d., and assigned and pledged
    6  to or on behalf of the unit of local government for the benefit
    7  of the holders of such bonds. The funds, credit, property, and
    8  taxing power of the state or of the unit of local government
    9  shall not be pledged for the payment of such bonds.
   10         3.a. The corporation shall adopt one or more programs
   11  subject to approval by the office for the reduction of both new
   12  and renewal writings in the corporation. Beginning January 1,
   13  2008, any program the corporation adopts for the payment of
   14  bonuses to an insurer for each risk the insurer removes from the
   15  corporation shall comply with s. 627.3511(2) and may not exceed
   16  the amount referenced in s. 627.3511(2) for each risk removed.
   17  The corporation may consider any prudent and not unfairly
   18  discriminatory approach to reducing corporation writings, and
   19  may adopt a credit against assessment liability or other
   20  liability that provides an incentive for insurers to take risks
   21  out of the corporation and to keep risks out of the corporation
   22  by maintaining or increasing voluntary writings in counties or
   23  areas in which corporation risks are highly concentrated and a
   24  program to provide a formula under which an insurer voluntarily
   25  taking risks out of the corporation by maintaining or increasing
   26  voluntary writings will be relieved wholly or partially from
   27  assessments under sub-subparagraph sub-subparagraphs (b)3.a. and
   28  b. However, any “take-out bonus” or payment to an insurer must
   29  be conditioned on the property being insured for at least 5
   30  years by the insurer, unless canceled or nonrenewed by the
   31  policyholder. If the policy is canceled or nonrenewed by the
   32  policyholder before the end of the 5-year period, the amount of
   33  the take-out bonus must be prorated for the time period the
   34  policy was insured. When the corporation enters into a
   35  contractual agreement for a take-out plan, the producing agent
   36  of record of the corporation policy is entitled to retain any
   37  unearned commission on such policy, and the insurer shall
   38  either:
   39         (I) Pay to the producing agent of record of the policy, for
   40  the first year, an amount which is the greater of the insurer’s
   41  usual and customary commission for the type of policy written or
   42  a policy fee equal to the usual and customary commission of the
   43  corporation; or
   44         (II) Offer to allow the producing agent of record of the
   45  policy to continue servicing the policy for a period of not less
   46  than 1 year and offer to pay the agent the insurer’s usual and
   47  customary commission for the type of policy written. If the
   48  producing agent is unwilling or unable to accept appointment by
   49  the new insurer, the new insurer shall pay the agent in
   50  accordance with sub-sub-subparagraph (I).
   51         b. Any credit or exemption from regular assessments adopted
   52  under this subparagraph shall last no longer than the 3 years
   53  following the cancellation or expiration of the policy by the
   54  corporation. With the approval of the office, the board may
   55  extend such credits for an additional year if the insurer
   56  guarantees an additional year of renewability for all policies
   57  removed from the corporation, or for 2 additional years if the
   58  insurer guarantees 2 additional years of renewability for all
   59  policies so removed.
   60         c. There shall be no credit, limitation, exemption, or
   61  deferment from emergency assessments to be collected from
   62  policyholders pursuant to sub-subparagraph (b)3.c. (b)3.d.