Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 1334
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Banking and Insurance (Rouson) recommended the
    1         Senate Amendment (with directory and title amendments)
    3         Between lines 148 and 149
    4  insert:
    5         (b) The State Board of Administration shall select an
    6  independent consultant to develop a formula for determining the
    7  actuarially indicated premium to be paid to the fund. The rate
    8  formula must shall specify, for each zip code or other limited
    9  geographical area, the amount of premium to be paid by an
   10  insurer for each $1,000 of insured value under covered policies
   11  in that zip code or other area. In establishing premiums, the
   12  board shall consider the coverage elected under paragraph (4)(b)
   13  and any factors that tend to enhance the actuarial
   14  sophistication of ratemaking for the fund, including
   15  deductibles, type of construction, type of coverage provided,
   16  relative concentration of risks, and other such factors deemed
   17  by the board to be appropriate. Beginning in the 2020-2021
   18  contract year, the fund’s formula may provide for a rapid cash
   19  build-up factor of up to 25 percent only when the available cash
   20  balance as of December 31 of the previous year is less than 70
   21  percent of the statutory capacity. For the purpose of
   22  calculating the rapid cash build-up factor trigger, the
   23  available cash balance may not be reduced by reserves for
   24  projected participating insurer reimbursements The formula must
   25  provide for a cash build-up factor. For the 2009-2010 contract
   26  year, the factor is 5 percent. For the 2010-2011 contract year,
   27  the factor is 10 percent. For the 2011-2012 contract year, the
   28  factor is 15 percent. For the 2012-2013 contract year, the
   29  factor is 20 percent. For the 2013-2014 contract year and
   30  thereafter, the factor is 25 percent. The rate formula may
   31  provide for a procedure to determine the premiums to be paid by
   32  new insurers that begin writing covered policies after the
   33  beginning of a contract year, taking into consideration when the
   34  insurer starts writing covered policies, the potential exposure
   35  of the insurer, the potential exposure of the fund, the
   36  administrative costs to the insurer and to the fund, and any
   37  other factors deemed appropriate by the board. The formula must
   38  be approved by unanimous vote of the board. The board may, at
   39  any time, revise the formula pursuant to the procedure provided
   40  in this paragraph.
   42  ====== D I R E C T O R Y  C L A U S E  A M E N D M E N T ======
   43  And the directory clause is amended as follows:
   44         Delete lines 97 - 98
   45  and insert:
   46         Section 1. Paragraph (c) of subsection (2) and paragraph
   47  (b) of subsection (5) of section 215.555, Florida Statutes, are
   48  amended, and paragraph (f) is
   50  ================= T I T L E  A M E N D M E N T ================
   51  And the title is amended as follows:
   52         Delete line 6
   53  and insert:
   54         policies; providing that the fund’s rate formula may
   55         provide for a rapid cash build-up factor only if
   56         certain conditions are met; specifying a limitation on
   57         calculating the trigger for the cash build-up factor;
   58         requiring the Office of Insurance Regulation