HOUSE AMENDMENT

    154-265AX-32                  Bill No. CS for SB 312, 2nd Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
 1                                 .
                                   .
 2                                 .
                                   .
 3                                 .
                                   .
 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Goode offered the following:

12

13         Amendment (with title amendment) 

14         On page 2, line 2,

15

16  insert:

17         Section 1.  Subsection (1) of section 284.33, Florida

18  Statutes, 1998 Supplement, is amended to read:

19         284.33  Purchase of insurance, reinsurance, and

20  services.--

21         (1)  The Department of Insurance is authorized to

22  provide insurance, specific excess insurance, and aggregate

23  excess insurance through the Department of Management

24  Services, pursuant to the provisions of part I of chapter 287,

25  as necessary to provide insurance coverages authorized by this

26  part, consistent with market availability. However, the

27  Department of Insurance may directly purchase annuities

28  through utilization of a structured settlement insurance

29  consulting firm selected by the department to assist in the

30  settlement of claims being handled by the Division of Risk

31  Management. The selection of the structured settlement

                                  1

    File original & 9 copies    04/22/99
    hbd0022                     10:36 am         00312-0031-661825




                                                   HOUSE AMENDMENT

    154-265AX-32                  Bill No. CS for SB 312, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  insurance services consultant shall be made by using

 2  competitive sealed proposals. The consulting firm shall act as

 3  an agent of record for the department in procuring the best

 4  annuity products available to facilitate structured settlement

 5  of claims, considering price, insurer financial strength, and

 6  the best interests of the state risk management program.

 7  Purchase of annuities by the department utilizing a structured

 8  settlement method shall be excepted from competitive sealed

 9  bidding or proposal requirements. The Department of Insurance

10  is further authorized to purchase such risk management

11  services, including, but not limited to, risk and claims

12  control; safety management; and legal, investigative, and

13  adjustment services, as may be required and pay claims. The

14  department may contract with a service organization for such

15  services and advance money to such service organization for

16  deposit in a special checking account for paying claims made

17  against the state under the provisions of this part.  The

18  special checking account shall be maintained in this state in

19  a bank or savings association organized under the laws of this

20  state or of the United States. The department may replenish

21  such account as often as necessary upon the presentation by

22  the service organization of documentation for payments of

23  claims equal to the amount of the requested reimbursement.

24         Section 2.  Subsection (6) of section 626.99, Florida

25  Statutes, is amended to read:

26         626.99  Life insurance solicitation.--

27         (6)  ADOPTION OF BUYER'S GUIDE; REQUIREMENTS.--Any

28  insurer soliciting life insurance in this state on or after

29  October 1, 1980, shall adopt and use a buyer's guide, and the

30  adoption and use by an insurer of the buyer's guide adopted

31  October 1, 1996 May 4, 1976, by the National Association of

                                  2

    File original & 9 copies    04/22/99
    hbd0022                     10:36 am         00312-0031-661825




                                                   HOUSE AMENDMENT

    154-265AX-32                  Bill No. CS for SB 312, 2nd Eng.

    Amendment No.     (for drafter's use only)





 1  Insurance Commissioners in the NAIC Life Insurance

 2  Solicitation Model Regulation shall be in compliance with the

 3  requirements of this section.

 4         Section 3.  Section 627.4785, Florida Statutes, is

 5  created to read:

 6         627.4785  Valuation of life insurance policies.--The

 7  department may adopt by rule the valuation of life insurance

 8  policies model regulation as approved by the National

 9  Association of Insurance Commissioners in March 1999,

10  including tables of select mortality factors.

11

12

13  ================ T I T L E   A M E N D M E N T ===============

14  And the title is amended as follows:

15         On page 1, line 2,

16  remove all of said line,

17

18  and insert in lieu thereof:

19         An act relating to insurance; amending s.

20         284.33, F.S.; authorizing the Department of

21         Insurance to directly purchase annuities

22         through a structured settlement insurance

23         services consultant; providing procedures and

24         requirements; providing an exemption from

25         certain competitive sealed bidding or proposal

26         requirements; amending s. 626.99, F.S.;

27         revising a reference to a more current edition

28         of a certain buyer's guide; creating s.

29         627.4785, F.S.; authorizing the Department of

30         Insurance to adopt a certain valuation of life

31         insurance policies model regulation; amending

                                  3

    File original & 9 copies    04/22/99
    hbd0022                     10:36 am         00312-0031-661825