Florida Senate - 2014 SENATOR AMENDMENT
Bill No. CS for HB 375
Ì153228+Î153228
LEGISLATIVE ACTION
Senate . House
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Floor: 1/RE/3R .
04/25/2014 03:05 PM .
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Senator Smith moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Paragraphs (b) and (c) of subsection (9) of
6 section 440.49, Florida Statutes, are amended to read:
7 440.49 Limitation of liability for subsequent injury
8 through Special Disability Trust Fund.—
9 (9) SPECIAL DISABILITY TRUST FUND.—
10 (b)1. The Special Disability Trust Fund shall be maintained
11 by annual assessments upon the insurance companies writing
12 compensation insurance in this the state, the commercial self
13 insurers under ss. 624.462 and 624.4621, the assessable mutuals
14 as defined in s. 628.6011, and the self-insurers under this
15 chapter, which assessments shall become due and must be paid
16 quarterly at the same time and in addition to the assessments
17 provided under in s. 440.51.
18 1. Pursuant to this paragraph, the department shall
19 estimate annually estimate in advance the amount necessary for
20 the administration of this subsection and the maintenance of the
21 this fund and shall make such assessment in the manner
22 hereinafter provided. By July 1 of each year, the department
23 shall calculate the assessment rate, which must be based on the
24 net premiums written by carriers and self-insurers, the amount
25 of premiums calculated by the department for self-insured
26 employers, the sum of the anticipated disbursements and expenses
27 of the fund for the next calendar year, and the expected fund
28 balance for the next calendar year. Such assessment rate shall
29 take effect January 1 of the next calendar year. Such amount
30 shall be prorated among insurance companies writing workers’
31 compensation insurance in the state, self-insurers, and self
32 insured employers.
33 2. A reimbursement request that has been approved but
34 remains unpaid as of June 30, 2014, must be paid by October 31,
35 2014. The annual assessment shall be calculated to produce
36 during the next calendar year an amount which, when combined
37 with that part of the balance anticipated to be in the fund on
38 December 31 of the current calendar year which is in excess of
39 $100,000, is equal to the average of:
40 a. The sum of disbursements from the fund during the
41 immediate past 3 calendar years, and
42 b. Two times the disbursements of the most recent calendar
43 year.
44 c. Such assessment rate shall first apply on a calendar
45 year basis for the period beginning January 1, 2012, and shall
46 be included in workers’ compensation rate filings approved by
47 the office which become effective on or after January 1, 2012.
48 The assessment rate effective January 1, 2011, shall also apply
49 to the interim period from July 1, 2011, through December 31,
50 2011, and shall be included in workers’ compensation rate
51 filings, whether regular or amended, approved by the office
52 which become effective on or after July 1, 2011. Thereafter, the
53 annual assessment rate shall take effect January 1 of the next
54 calendar year and shall be included in workers’ compensation
55 rate filings approved by the office which become effective on or
56 after January 1 of the next calendar year. Assessments shall
57 become due and be paid quarterly.
58
59 Such amount shall be prorated among the insurance companies
60 writing compensation insurance in the state and the self
61 insurers.
62 3. The net premiums written by the companies for workers’
63 compensation in this state and the net premium written
64 applicable to the self-insurers in this state are the basis for
65 computing the amount to be assessed as a percentage of net
66 premiums. Such payments shall be made by each carrier and self
67 insurer to the department for the Special Disability Trust Fund
68 in accordance with such regulations as the department
69 prescribes.
70 3.4. The Chief Financial Officer is authorized to receive
71 and shall credit to the such Special Disability Trust fund any
72 sum or sums that may at any time be contributed to the state by
73 the United States under an any Act of Congress, or otherwise, to
74 which the state is may be or become entitled by reason of any
75 payments made out of the such fund.
76 (c) Notwithstanding the Special Disability Trust fund
77 assessment rate calculated pursuant to paragraph (b) this
78 section, the rate assessed may shall not exceed 2.5 4.52
79 percent.
80 Section 2. Subsection (1) of section 624.425, Florida
81 Statutes, is amended to read:
82 624.425 Agent countersignature required, property,
83 casualty, surety insurance.—
84 (1) Except as stated in s. 624.426, no authorized property,
85 casualty, or surety insurer shall assume direct liability as to
86 a subject of insurance resident, located, or to be performed in
87 this state unless the policy or contract of insurance is issued
88 by or through, and is countersigned by, an agent who is
89 regularly commissioned and licensed currently as an agent and
90 appointed as an agent for the insurer under this code. However,
91 the absence of a countersignature does not affect the validity
92 of the policy or contract. If two or more authorized insurers
93 issue a single policy of insurance against legal liability for
94 loss or damage to person or property caused by a the nuclear
95 energy hazard, or a single policy insuring against loss or
96 damage to property by radioactive contamination, whether or not
97 also insuring against one or more other perils that may be
98 insured proper to insure against in this state, such policy if
99 otherwise lawful may be countersigned on behalf of all of the
100 insurers by a licensed and appointed agent of the any insurer
101 appearing thereon. The producing agent shall receive on each
102 policy or contract the full and usual commission allowed and
103 paid by the insurer to its agents on business written or
104 transacted by them for the insurer.
105 Section 3. Subsection (2) of section 627.902, Florida
106 Statutes, is amended to read:
107 627.902 Premium financing by an insurer or subsidiary.—
108 (2) Nothing in This part or in part XV of this chapter does
109 not disallow disallows or otherwise apply applies to:
110 (a) Installment payment arrangements offered by an insurer
111 if such arrangements do not involve the advancement of funds
112 which would constitute financing and do not exceed the service
113 charges provided under s. 627.901; or
114 (b) A discount for an any insured who pays the entire
115 premium for the entire policy term at the inception of the term
116 if the discount is found to be actuarially justified by the
117 office and approved by the office pursuant to the provisions of
118 part I of this chapter. Such actuarially justified and approved
119 discount may shall not be deemed a component of or related to
120 premium financing.
121 Section 4. Subsection (2) of section 627.94072, Florida
122 Statutes, is amended to read:
123 627.94072 Mandatory offers.—
124 (2) An insurer that offers a long-term care insurance
125 policy, certificate, or rider in this state shall must offer a
126 nonforfeiture protection provision providing reduced paid-up
127 insurance, extended term, shortened benefit period, or any other
128 benefit benefits approved by the office if all or part of a
129 premium is not paid. A nonforfeiture provision may also be
130 offered in the form of a return of premium on the death of the
131 insured, or on the complete surrender or cancellation of the
132 policy or contract. Nonforfeiture benefits and any additional
133 premium for such benefits must be computed in an actuarially
134 sound manner, using a methodology that has been filed with and
135 approved by the office.
136 Section 5. Section 629.271, Florida Statutes, is amended to
137 read:
138 629.271 Distribution of savings.—
139 (1) A reciprocal insurer may from time to time return to
140 its subscribers any unused premiums, savings, or credits
141 accruing to their accounts. Any Such distribution may shall not
142 unfairly discriminate between classes of risks, or policies, or
143 between subscribers, but such distribution may vary as to
144 classes of subscribers based on upon the experience of such
145 classes.
146 (2) In addition to the option provided in subsection (1), a
147 domestic reciprocal insurer may, upon the prior written approval
148 of the office, pay to its subscribers a portion of unassigned
149 funds of up to 10 percent of surplus with distribution limited
150 to 50 percent of net income from the previous calendar year.
151 Such distribution may not unfairly discriminate between classes
152 of risks, or policies, or between subscribers, but may vary as
153 to classes of subscribers based on the experience of such
154 classes.
155 Section 6. Subsections (2) through (9) of section 631.54,
156 Florida Statutes, are renumbered as subsections (3) through
157 (10), respectively, and a new subsection (2) is added to that
158 section to read:
159 631.54 Definitions.—As used in this part, the term:
160 (2) “Assessment year” means the 12-month period, which may
161 begin on the first day of any calendar quarter, whether January
162 1, April 1, July 1, or October 1, as specified in an order
163 issued by the office directing insurers to pay an assessment to
164 the association. Upon entry of the order, insurers may begin
165 collecting assessments from policyholders for the assessment
166 year.
167 Section 7. Subsections (3) and (4) of section 631.57,
168 Florida Statutes, are amended to read:
169 631.57 Powers and duties of the association.—
170 (3)(a) To the extent necessary to secure the funds for the
171 respective accounts for the payment of covered claims, to pay
172 the reasonable costs to administer such accounts the same, and
173 to the extent necessary to secure the funds for the account
174 specified in s. 631.55(2)(b) or to retire indebtedness,
175 including, without limitation, the principal, redemption
176 premium, if any, and interest on, and related costs of issuance
177 of, bonds issued under s. 631.695 and the funding of any
178 reserves and other payments required under the bond resolution
179 or trust indenture pursuant to which such bonds have been
180 issued, the office, upon certification of the board of
181 directors, shall levy assessments initially estimated in the
182 proportion that each insurer’s net direct written premiums in
183 this state in the classes protected by the account bears to the
184 total of said net direct written premiums received in this state
185 by all such insurers for the preceding calendar year for the
186 kinds of insurance included within such account. Assessments
187 shall be remitted to and administered by the board of directors
188 in the manner specified by the approved plan and paragraph (f).
189 Each insurer so assessed shall have at least 30 days’ written
190 notice as to the date the initial assessment payment is due and
191 payable. Every assessment shall be made as a uniform percentage
192 applicable to the net direct written premiums of each insurer in
193 the kinds of insurance included within the account in which the
194 assessment is made. The assessments levied against any insurer
195 may shall not exceed in any one year more than 2 percent of that
196 insurer’s net direct written premiums in this state for the
197 kinds of insurance included within such account during the
198 calendar year next preceding the date of such assessments.
199 (b) If sufficient funds from such assessments, together
200 with funds previously raised, are not available in any one year
201 in the respective account to make all the payments or
202 reimbursements then owing to insurers, the funds available shall
203 be prorated and the unpaid portion shall be paid as soon
204 thereafter as funds become available.
205 (c) The Legislature finds and declares that all assessments
206 paid by an insurer or insurer group as a result of a levy by the
207 office, including assessments levied pursuant to paragraph (a)
208 and emergency assessments levied pursuant to paragraph (e),
209 constitute advances of funds from the insurer to the
210 association. An insurer may fully recoup such advances by
211 applying the uniform assessment percentage levied by the office
212 to all a separate recoupment factor to the premium of policies
213 of the same kind or line as were considered by the office in
214 determining the assessment liability of the insurer or insurer
215 group as set forth in paragraph (f).
216 1. Assessments levied under subparagraph (f)1. are paid
217 before policy surcharges are collected and result in a
218 receivable for policy surcharges collected in the future. This
219 amount, to the extent it is likely that it will be realized,
220 meets the definition of an admissible asset as specified in the
221 National Association of Insurance Commissioners’ Statement of
222 Statutory Accounting Principles No. 4. The asset shall be
223 established and recorded separately from the liability
224 regardless of whether it is based on a retrospective or
225 prospective premium-based assessment. If an insurer is unable to
226 fully recoup the amount of the assessment because of a reduction
227 in writings or withdrawal from the market, the amount recorded
228 as an asset shall be reduced to the amount reasonably expected
229 to be recouped.
230 2. Assessments levied under subparagraph (f)2. are paid
231 after policy surcharges are collected so that the recognition of
232 assets is based on actual premium written offset by the
233 obligation to the association.
234 (d) No State funds may not of any kind shall be allocated
235 or paid to the said association or any of its accounts.
236 (e)1.a. In addition to assessments otherwise authorized in
237 paragraph (a), and to the extent necessary to secure the funds
238 for the account specified in s. 631.55(2)(b) for the direct
239 payment of covered claims of insurers rendered insolvent by the
240 effects of a hurricane and to pay the reasonable costs to
241 administer such claims, or to retire indebtedness, including,
242 without limitation, the principal, redemption premium, if any,
243 and interest on, and related costs of issuance of, bonds issued
244 under s. 631.695 and the funding of any reserves and other
245 payments required under the bond resolution or trust indenture
246 pursuant to which such bonds have been issued, the office, upon
247 certification of the board of directors, shall levy emergency
248 assessments upon insurers holding a certificate of authority.
249 The emergency assessments payable under this paragraph by any
250 insurer may shall not exceed in any single year more than 2
251 percent of that insurer’s direct written premiums, net of
252 refunds, in this state during the preceding calendar year for
253 the kinds of insurance within the account specified in s.
254 631.55(2)(b).
255 2.b. Any Emergency assessments authorized under this
256 paragraph shall be levied by the office upon insurers referred
257 to in subparagraph 1. sub-subparagraph a., upon certification as
258 to the need for such assessments by the board of directors. If
259 In the event the board of directors participates in the issuance
260 of bonds in accordance with s. 631.695, emergency assessments
261 shall be levied in each year that bonds issued under s. 631.695
262 and secured by such emergency assessments are outstanding, in
263 such amounts up to such 2 percent 2-percent limit as required in
264 order to provide for the full and timely payment of the
265 principal of, redemption premium, if any, and interest on, and
266 related costs of issuance of, such bonds. The emergency
267 assessments provided for in this paragraph are assigned and
268 pledged to the municipality, county, or legal entity issuing
269 bonds under s. 631.695 for the benefit of the holders of such
270 bonds, in order to enable such municipality, county, or legal
271 entity to provide for the payment of the principal of,
272 redemption premium, if any, and interest on such bonds, the cost
273 of issuance of such bonds, and the funding of any reserves and
274 other payments required under the bond resolution or trust
275 indenture pursuant to which such bonds have been issued, without
276 the necessity of any further action by the association, the
277 office, or any other party. If To the extent bonds are issued
278 under s. 631.695 and the association determines to secure such
279 bonds by a pledge of revenues received from the emergency
280 assessments, such bonds, upon such pledge of revenues, shall be
281 secured by and payable from the proceeds of such emergency
282 assessments, and the proceeds of emergency assessments levied
283 under this paragraph shall be remitted directly to and
284 administered by the trustee or custodian appointed for such
285 bonds.
286 3.c. Emergency assessments used to defease bonds issued
287 under this part paragraph may be payable in a single payment or,
288 at the option of the association, may be payable in 12 monthly
289 installments with the first installment being due and payable at
290 the end of the month after an emergency assessment is levied and
291 subsequent installments being due by not later than the end of
292 each succeeding month.
293 4.d. If emergency assessments are imposed, the report
294 required by s. 631.695(7) must shall include an analysis of the
295 revenues generated from the emergency assessments imposed under
296 this paragraph.
297 5.e. If emergency assessments are imposed, the references
298 in sub-subparagraph (1)(a)3.b. and s. 631.695(2) and (7) to
299 assessments levied under paragraph (a) must shall include
300 emergency assessments imposed under this paragraph.
301 6.2. If the board of directors participates in the issuance
302 of bonds in accordance with s. 631.695, an annual assessment
303 under this paragraph shall continue while the bonds issued with
304 respect to which the assessment was imposed are outstanding,
305 including any bonds the proceeds of which were used to refund
306 bonds issued pursuant to s. 631.695, unless adequate provision
307 has been made for the payment of the bonds in the documents
308 authorizing the issuance of such bonds.
309 7.3. Emergency assessments under this paragraph are not
310 premium and are not subject to the premium tax, to any fees, or
311 to any commissions. An insurer is liable for all emergency
312 assessments that the insurer collects and shall treat the
313 failure of an insured to pay an emergency assessment as a
314 failure to pay the premium. An insurer is not liable for
315 uncollectible emergency assessments.
316 (f) The recoupment factor applied to policies in accordance
317 with paragraph (c) shall be selected by the insurer or insurer
318 group so as to provide for the probable recoupment of both
319 assessments levied pursuant to paragraph (a) and emergency
320 assessments over a period of 12 months, unless the insurer or
321 insurer group, at its option, elects to recoup the assessment
322 over a longer period. The recoupment factor shall apply to all
323 policies of the same kind or line as were considered by the
324 office in determining the assessment liability of the insurer or
325 insurer group issued or renewed during a 12-month period. If the
326 insurer or insurer group does not collect the full amount of the
327 assessment during one 12-month period, the insurer or insurer
328 group may apply recalculated recoupment factors to policies
329 issued or renewed during one or more succeeding 12-month
330 periods. If, at the end of a 12-month period, the insurer or
331 insurer group has collected from the combined kinds or lines of
332 policies subject to assessment more than the total amount of the
333 assessment paid by the insurer or insurer group, the excess
334 amount shall be disbursed as follows:
335 1. The association, office, and insurers remitting
336 assessments pursuant to paragraph (a) or paragraph (e) must
337 comply with the following:
338 a. In the order levying an assessment, the office shall
339 specify the actual percentage amount to be collected uniformly
340 from all the policyholders of insurers subject to the assessment
341 and the date on which the assessment year begins, which may not
342 begin until 90 days after the association board certifies such
343 an assessment.
344 b. Insurers shall make an initial payment to the
345 association before the beginning of the assessment year on or
346 before the date specified in the order of the office.
347 c. Insurers that have written insurance in the calendar
348 year before the year in which the assessment is certified by the
349 board shall make an initial payment based on the net direct
350 written premium amount from the prior calendar year as set forth
351 in the insurers’ annual statements, multiplied by the uniform
352 percentage of premium specified in the order issued by the
353 office. Insurers that have not written insurance in the prior
354 calendar year in any of the lines under the account which are
355 being assessed, but that are writing insurance as of, or after,
356 the date the board certifies the assessment to the office, shall
357 pay an amount based on a good faith estimate of the amount of
358 net direct written premium anticipated to be written in the
359 subject lines of business for the assessment year, multiplied by
360 the uniform percentage of premium specified in the order issued
361 by the office.
362 d. Insurers shall file a reconciliation report with the
363 association within 45 days after the end of the assessment year
364 which indicates the amount of the initial payment to the
365 association before the assessment year, whether such amount was
366 based on net direct written premium contained in a prior
367 calendar year annual statement or a good faith projection, the
368 amount actually collected during the assessment year, and such
369 other information contained on a form adopted by the association
370 and provided to the insurers in advance. If the insurer
371 collected from policyholders more than the amount initially
372 paid, the insurer shall pay the excess amount to the
373 association. If the insurer collected from policyholders an
374 amount which is less than the amount initially paid to the
375 association, the association shall credit the insurer that
376 amount against future assessments. Such payment reconciliation
377 report, and any payment of excess amounts collected from
378 policyholders, shall be completed and remitted to the
379 association within 90 days after the end of the assessment year.
380 The association shall send a final reconciliation report on all
381 insurers to the office within 120 days after each assessment
382 year.
383 e. Insurers remitting reconciliation reports to the
384 association under this paragraph are subject to s.
385 626.9541(1)(e). If the excess amount does not exceed 15 percent
386 of the total assessment paid by the insurer or insurer group,
387 the excess amount shall be remitted to the association within 60
388 days after the end of the 12-month period in which the excess
389 recoupment charges were collected.
390 2. The association may use a monthly installment method
391 instead of the method described in sub-subparagraphs 1.b. and c.
392 or in combination thereof based on the association’s projected
393 cash flow. If the association projects that it has cash on hand
394 for the payment of anticipated claims in the applicable account
395 for at least 6 months, the board may make an estimate of the
396 assessment needed and may recommend to the office the assessment
397 percentage that may be collected as a monthly assessment. The
398 office may, in the order levying the assessment on insurers,
399 specify that the assessment is due and payable monthly as the
400 funds are collected from insureds throughout the assessment
401 year, in which case the assessment shall be a uniform percentage
402 of premium collected during the assessment year and shall be
403 collected from all policyholders with policies in the classes
404 protected by the account. All insurers shall collect the
405 assessment without regard to whether the insurers reported
406 premium in the year preceding the assessment. Insurers are not
407 required to advance funds if the association and the office
408 elect to use the monthly installment option. All funds collected
409 shall be retained by the association for the payment of current
410 or future claims. This subparagraph does not alter the
411 obligation of an insurer to remit assessments levied pursuant to
412 this subsection to the association. If the excess amount exceeds
413 15 percent of the total assessment paid by the insurer or
414 insurer group, the excess amount shall be returned to the
415 insurer’s or insurer group’s current policyholders by refunds or
416 premium credits. The association shall use any remitted excess
417 recoupment amounts to reduce future assessments.
418 (g) Amounts recouped pursuant to this subsection for
419 assessments levied under paragraph (a) due to insolvencies on or
420 after July 1, 2010, are considered premium solely for premium
421 tax purposes and are not subject to fees or commissions.
422 However, insurers shall treat the failure of an insured to pay a
423 recoupment charge as a failure to pay the premium.
424 (h) At least 15 days before applying the recoupment factor
425 to any policies, the insurer or insurer group shall file with
426 the office a statement for informational purposes only setting
427 forth the amount of the recoupment factor and an explanation of
428 how the recoupment factor will be applied. Such statement shall
429 include documentation of the assessment paid by the insurer or
430 insurer group and the arithmetic calculations supporting the
431 recoupment factor. The insurer or insurer group may use the
432 recoupment factor at any time after the expiration of the 15-day
433 period. The insurer or insurer group need submit only one
434 informational statement for all lines of business using the same
435 recoupment factor.
436 (i) No later than 90 days after the insurer or insurer
437 group has completed the recoupment process, the insurer or
438 insurer group shall file with the office, for information
439 purposes only, a final accounting report documenting the
440 recoupment. The report shall provide the amounts of assessments
441 paid by the insurer or insurer group, the amounts and
442 percentages recouped by year from each affected line of
443 business, and the direct written premium subject to recoupment
444 by year. The insurer or insurer group need submit only one
445 report for all lines of business using the same recoupment
446 factor.
447 (h) Assessments levied under this subsection are levied
448 upon insurers. This subsection does not create a cause of action
449 by a policyholder with respect to the levying of, or a
450 policyholder’s duty to pay, such assessments.
451 (4) The office department may exempt or temporarily defer
452 any insurer from any regular or emergency assessment if the
453 office finds that the insurer is impaired or insolvent or if an
454 assessment would result in such insurer’s financial statement
455 reflecting an amount of capital or surplus less than the sum of
456 the minimum amount required by any jurisdiction in which the
457 insurer is authorized to transact insurance.
458 Section 8. Section 631.64, Florida Statutes, is amended to
459 read:
460 631.64 Recognition of assessments in rates.—Charges or
461 recoupments shall be separately displayed on premium statements
462 to enable policyholders to determine the amount charged for
463 association assessments but may not be included in rates filed
464 and approved by the office. The rates and premiums charged for
465 insurance policies to which this part applies may include
466 amounts sufficient to recoup a sum equal to the amounts paid to
467 the association by the member insurer less any amounts returned
468 to the member insurer by the association, and such rates shall
469 not be deemed excessive because they contain an amount
470 reasonably calculated to recoup assessments paid by the member
471 insurer.
472 Section 9. Subsection (5) of section 627.727, Florida
473 Statutes, is amended to read:
474 627.727 Motor vehicle insurance; uninsured and underinsured
475 vehicle coverage; insolvent insurer protection.—
476 (5) Any person having a claim against an insolvent insurer
477 as defined in s. 631.54(6) under the provisions of this section
478 shall present such claim for payment to the Florida Insurance
479 Guaranty Association only. In the event of a payment to a any
480 person in settlement of a claim arising under the provisions of
481 this section, the association is not subrogated or entitled to
482 any recovery against the claimant’s insurer. The association,
483 however, has the rights of recovery as set forth in chapter 631
484 in the proceeds recoverable from the assets of the insolvent
485 insurer.
486 Section 10. Subsection (1) of section 631.55, Florida
487 Statutes, is amended to read:
488 631.55 Creation of the association.—
489 (1) There is created a nonprofit corporation to be known as
490 the “Florida Insurance Guaranty Association, Incorporated.” All
491 insurers defined as member insurers in s. 631.54(7) shall be
492 members of the association as a condition of their authority to
493 transact insurance in this state, and, further, as a condition
494 of such authority, an insurer must shall agree to reimburse the
495 association for all claim payments the association makes on the
496 said insurer’s behalf if such insurer is subsequently
497 rehabilitated. The association shall perform its functions under
498 a plan of operation established and approved under s. 631.58 and
499 shall exercise its powers through a board of directors
500 established under s. 631.56. The corporation shall have all
501 those powers granted or permitted nonprofit corporations, as
502 provided in chapter 617.
503 Section 11. This act shall take effect July 1, 2014.
504
505 ================= T I T L E A M E N D M E N T ================
506 And the title is amended as follows:
507 Delete everything before the enacting clause
508 and insert:
509 A bill to be entitled
510 An act relating to insurance; amending s. 440.49,
511 F.S.; revising the methodology for calculating the
512 assessment rate against specified insurers for funding
513 the Special Disability Trust Fund; reducing the upper
514 limit on the rate; amending s. 624.425, F.S.;
515 providing that the absence of a countersignature does
516 not affect the validity of a policy or contract;
517 amending s. 627.902, F.S.; providing that premium
518 financing does not apply to installment payment
519 arrangements that do not involve the advancement of
520 funds; amending s. 627.94072, F.S.; providing an
521 alternative form of a nonforfeiture provision for
522 long-term care insurance; amending s. 629.271, F.S.;
523 authorizing reciprocal insurers to return a portion of
524 unassigned funds to their subscribers; amending s.
525 631.54, F.S.; defining the term “assessment year”;
526 amending s. 631.57, F.S.; revising provisions relating
527 to the levy of assessments on insurers by the Florida
528 Insurance Guaranty Association; specifying the
529 conditions under which such assessments are paid;
530 revising procedures and timeframes for the levying of
531 the assessments; deleting the requirement that
532 insurers file a final accounting report documenting
533 the recoupment; revising an exemption for assessments;
534 amending s. 631.64, F.S.; requiring charges or
535 recoupments to be displayed separately on premium
536 statements to policyholders and prohibiting their
537 inclusion in rates; amending ss. 627.727 and 631.55,
538 F.S.; conforming cross-references; providing an
539 effective date.