Florida Senate - 2017                                     SB 814
       
       
        
       By Senator Broxson
       
       1-00852-17                                             2017814__
    1                        A bill to be entitled                      
    2         An act relating to the Florida Life and Health
    3         Insurance Guaranty Association; amending s. 631.713,
    4         F.S.; revising applicability of the Florida Life and
    5         Health Insurance Guaranty Association Act as to
    6         specified annuity contracts; amending s. 631.717,
    7         F.S.; revising the association’s maximum aggregate
    8         liability for the contractual obligations of an
    9         insolvent insurer with respect to one life; specifying
   10         the association’s maximum liability as to certain
   11         health insurance policies; amending s. 631.718, F.S.;
   12         revising the maximum limit of a certain annual
   13         assessment levied on member insurers by the
   14         association’s board of directors; providing an
   15         effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Paragraph (l) of subsection (3) of section
   20  631.713, Florida Statutes, is amended to read:
   21         631.713 Application of part.—
   22         (3) This part does not apply to:
   23         (l) Any annuity contract or group annuity contract that is
   24  not issued to and owned by an individual, except to the extent
   25  of any annuity benefits:
   26         1. Guaranteed directly and not through an intermediary to
   27  an individual by an insurer under such contract or certificate;.
   28         2. Under an annuity issued by an insurer under 26 U.S.C. s.
   29  408(b); or
   30         3. Under an annuity issued by an insurer and held by a
   31  custodian or trustee in accordance with 26 U.S.C. 408(a).
   32  
   33  This paragraph applies to every insolvency regardless of its
   34  date of inception, and an assessment base may not include
   35  premiums for such excluded products.
   36         Section 2. Subsection (9) of section 631.717, Florida
   37  Statutes, is amended to read:
   38         631.717 Powers and duties of the association.—
   39         (9) The association’s liability for the contractual
   40  obligations of the insolvent insurer must shall be as great as,
   41  but no greater than, the contractual obligations of the insurer
   42  in the absence of such insolvency, unless such obligations are
   43  reduced as permitted by subsection (4), but the aggregate
   44  liability of the association with respect to one life may shall
   45  not exceed the following:
   46         (a) For life insurance, $100,000 in net cash surrender and
   47  net cash withdrawal values. for life insurance,
   48         (b) For deferred annuity contracts, $250,000 in net cash
   49  surrender and net cash withdrawal values. for deferred annuity
   50  contracts, or
   51         (c) For all benefits, $300,000, for all benefits including
   52  cash values, except as provided in paragraph (d) with respect to
   53  any one life.
   54         (d) For basic hospital expense health insurance policies,
   55  basic medical-surgical health insurance policies, or major
   56  medical expense health insurance policies, $500,000.
   57  
   58  In no event is shall the association be liable for any penalties
   59  or interest.
   60         Section 3. Paragraph (a) of subsection (3) of section
   61  631.718, Florida Statutes, is amended to read:
   62         631.718 Assessments.—
   63         (3)(a) The amount of any Class A assessment must shall be
   64  determined by the board and may be made on a non-pro rata basis.
   65  The assessment may not be credited against future insolvency
   66  assessments and may not exceed $500 $250 per member insurer in
   67  any one calendar year.
   68         Section 4. This act shall take effect July 1, 2017.