Florida Senate - 2012 COMMITTEE AMENDMENT Bill No. SB 578 Barcode 914512 LEGISLATIVE ACTION Senate . House Comm: FAV . 12/07/2011 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Richter) recommended the following: 1 Senate Amendment 2 3 Delete lines 168 - 202 4 and insert: 5 (III) In order to obtain approval for a plan, the surplus 6 lines insurer must file the following with the office: 7 (A) Information requested by the office to demonstrate 8 compliance with s. 624.404(3), including biographical 9 affidavits, fingerprint cards, and the results of a criminal 10 history records checks for officers and directors of the insurer 11 and its parent or holding company; 12 (B) A service-of-process consent and agreement form 13 executed by the insurer; 14 (C) Proof that the insurer has been an eligible or 15 authorized insurer for not less than 3 years; 16 (D) A duly authenticated copy of the insurer’s current 17 audited financial statement, in English, with all monetary 18 values therein expressed in United States dollars, at an 19 exchange rate then current and shown in the statement, in the 20 case of statements originally made in the currencies of other 21 countries, and with such any additional information relative to 22 the insurer as the office may request; 23 (E) A complete certified copy of the latest official 24 financial statement required by the insurer’s domiciliary state, 25 if different from sub-sub-sub-subparagraph (D); and 26 (F) A copy of the United States trust account agreement, if 27 applicable. 28 29 This sub-sub-subparagraph does not subject any surplus lines 30 insurer to requirements in addition to part VIII of chapter 626. 31 Surplus lines brokers making an offer of coverage under this 32 sub-subparagraph are not required to comply with s. 33 626.916(1)(a), (b), (c), and (e). 34 (IV) Within 10 days after the date of assumption, the 35 surplus lines insurer assuming policies from the corporation 36 must remit a special deposit equal to the unearned premium net 37 of unearned commissions on the assumed block of business to the 38 Bureau of Collateral Securities within the Department of 39 Financial Services. The surplus lines insurer must submit to the 40 office, along with the initial deposit, an accounting of the 41 policies assumed and the amount of unearned premium for such 42 policies and a sworn affidavit attesting to its accuracy by an 43 officer of the surplus lines insurer. Thereafter, the surplus 44 lines insurer must make a filing within 10 days after each 45 calendar quarter attesting to the unearned premium in force for 46 the previous quarter on policies assumed from the corporation, 47 and must submit additional funds if the special deposit is 48 insufficient to cover the unearned premium on assumed policies, 49 or must receive a return of funds within 60 days if the special 50 deposit exceeds the amount of unearned premium required for 51 assumed policies. The special deposit is an asset of the surplus 52 lines insurer which is held by the department for the benefit of 53 state policyholders of the surplus lines insurer in the event of 54 the insolvency of the surplus lines insurer. If an order of 55 liquidation is entered in any state against the surplus lines 56 insurer, the department may use the special deposit for payment 57 of unearned premium or policy claims, return all or part of the 58 deposit to the domiciliary receiver, or use the funds in 59 accordance with any action authorized under part I of chapter 60 631 or in compliance with any order of a court having 61 jurisdiction over the insolvency. 62 (V) Surplus lines brokers representing a surplus lines