Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 454
       
       
       
       
       
       
                                Ì144118#Î144118                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/28/2017           .                                
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       The Committee on Rules (Brandes) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 272 and 273
    4  insert:
    5         Section 6. Paragraphs (d) and (e) of subsection (2) of
    6  section 624.4085, Florida Statutes, are amended to read:
    7         624.4085 Risk-based capital requirements for insurers.—
    8         (2)
    9         (d) A life and health insurer’s risk-based capital is
   10  determined in accordance with the formula set forth in the risk
   11  based capital instructions. The formula takes into account and
   12  may adjust for the covariance between:
   13         1. The risk with respect to the insurer’s assets;
   14         2. The risk of adverse insurance experience with respect to
   15  the insurer’s liabilities and obligations;
   16         3. The interest rate risk with respect to the insurer’s
   17  business; and
   18         4. Any other business or other relevant risk set out in the
   19  risk-based capital instructions,
   20  
   21  determined in each case by applying the factors in the manner
   22  set forth in the risk-based capital instructions. This paragraph
   23  does not apply to a health maintenance organization.
   24         (e) A property and casualty insurer’s and, if subject to
   25  this section, a health maintenance organization’s risk-based
   26  capital is determined in accordance with the formula set forth
   27  in the risk-based capital instructions. The formula takes into
   28  account and may adjust for the covariance between:
   29         1. The asset risk;
   30         2. The credit risk;
   31         3. The underwriting risk; and
   32         4. Any other business or other relevant risk set out in the
   33  risk-based capital instructions,
   34  
   35  determined in each case by applying the factors in the manner
   36  set forth in the risk-based capital instructions.
   37  
   38  ================= T I T L E  A M E N D M E N T ================
   39  And the title is amended as follows:
   40         Between lines 17 and 18
   41  insert:
   42         amending s. 624.4085, F.S.; providing applicability of
   43         specified formulas for determining risk-based capital
   44         of insurers to health maintenance organizations;