Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. SB 1422
       
       
       
       
       
       
                                Ì884538LÎ884538                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/26/2016           .                                
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       The Committee on Banking and Insurance (Simmons) recommended the
       following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 119 - 194
    4  and insert:
    5         6. The office’s review of the ORSA summary report must be
    6  conducted, and any additional requests for information must be
    7  made, using procedures similar to those used in the analysis and
    8  examination of multistate or global insurers and insurance
    9  groups.
   10         (d) Exemption.—
   11         1. An insurer is exempt from the requirements of this
   12  subsection if:
   13         a. The insurer has annual direct written and unaffiliated
   14  assumed premium, including international direct and assumed
   15  premium, but excluding premiums reinsured with the Federal Crop
   16  Insurance Corporation and the National Flood Insurance Program,
   17  of less than $500 million; or
   18         b. The insurer is a member of an insurance group and the
   19  insurance group has annual direct written and unaffiliated
   20  assumed premium, including international direct and assumed
   21  premium, but excluding premiums reinsured with the Federal Crop
   22  Insurance Corporation and the National Flood Insurance Program,
   23  of less than $1 billion.
   24         2. If an insurer is:
   25         a. Exempt under sub-subparagraph 1.a., but the insurance
   26  group of which the insurer is a member is not exempt under sub
   27  subparagraph 1.b., the ORSA summary report must include every
   28  insurer within the insurance group. The insurer may satisfy this
   29  requirement by submitting more than one ORSA summary report for
   30  any combination of insurers if any combination of reports
   31  includes every insurer within the insurance group.
   32         b. Not exempt under sub-subparagraph 1.a., but the
   33  insurance group of which it is a member is exempt under sub
   34  subparagraph 1.b., the insurer must submit to the office the
   35  ORSA summary report applicable only to that insurer.
   36         3. The office may require an exempt insurer to maintain a
   37  risk management framework, conduct an ORSA, and file an ORSA
   38  summary report:
   39         a. Based on unique circumstances, including, but not
   40  limited to, the type and volume of business written, ownership
   41  and organizational structure, federal agency requests, and
   42  international supervisor requests;
   43         b. If the insurer has risk-based capital for a company
   44  action level event pursuant to s. 624.4085(3), meets one or more
   45  of the standards of an insurer deemed to be in hazardous
   46  financial condition as defined in rules adopted by the
   47  commission pursuant to s. 624.81(11), or exhibits qualities of
   48  an insurer in hazardous financial condition as determined by the
   49  office; or
   50         c. If the office determines it is in the best interest of
   51  the state.
   52         4. If an exempt insurer becomes disqualified for an
   53  exemption because of changes in premium as reported on the most
   54  recent annual statement of the insurer or annual statements of
   55  the insurers within the insurance group of which the insurer is
   56  a member, the insurer must comply with the requirements of this
   57  section effective 1 year after the year in which the insurer
   58  exceeded the premium thresholds.
   59         (e) Waiver.—An insurer that does not qualify for an
   60  exemption under paragraph (d) may request a waiver from the
   61  office based upon unique circumstances. If the insurer is part
   62  of an insurance group with insurers domiciled in more than one
   63  state, the office must coordinate with the lead state and with
   64  the other domiciliary regulators in deciding whether to grant a
   65  waiver. In deciding whether to grant a waiver, the office may
   66  consider:
   67         1. The type and volume of business written by the insurer.
   68         2. The ownership and organizational structure of the
   69  insurer.
   70         3. Any other factor the office considers relevant to the
   71  insurer or insurance group of which the insurer is a member.
   72  
   73  A waiver granted pursuant to this paragraph is valid until
   74  withdrawn by the office.