Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 578
       
       
       
       
       
       
                                Barcode 914512                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  12/07/2011           .                                
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       The Committee on Banking and Insurance (Richter) recommended the
       following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 168 - 202
    4  and insert:
    5         (III) In order to obtain approval for a plan, the surplus
    6  lines insurer must file the following with the office:
    7         (A) Information requested by the office to demonstrate
    8  compliance with s. 624.404(3), including biographical
    9  affidavits, fingerprint cards, and the results of a criminal
   10  history records checks for officers and directors of the insurer
   11  and its parent or holding company;
   12         (B) A service-of-process consent and agreement form
   13  executed by the insurer;
   14         (C) Proof that the insurer has been an eligible or
   15  authorized insurer for not less than 3 years;
   16         (D) A duly authenticated copy of the insurer’s current
   17  audited financial statement, in English, with all monetary
   18  values therein expressed in United States dollars, at an
   19  exchange rate then current and shown in the statement, in the
   20  case of statements originally made in the currencies of other
   21  countries, and with such any additional information relative to
   22  the insurer as the office may request;
   23         (E) A complete certified copy of the latest official
   24  financial statement required by the insurer’s domiciliary state,
   25  if different from sub-sub-sub-subparagraph (D); and
   26         (F) A copy of the United States trust account agreement, if
   27  applicable.
   28  
   29  This sub-sub-subparagraph does not subject any surplus lines
   30  insurer to requirements in addition to part VIII of chapter 626.
   31  Surplus lines brokers making an offer of coverage under this
   32  sub-subparagraph are not required to comply with s.
   33  626.916(1)(a), (b), (c), and (e).
   34         (IV) Within 10 days after the date of assumption, the
   35  surplus lines insurer assuming policies from the corporation
   36  must remit a special deposit equal to the unearned premium net
   37  of unearned commissions on the assumed block of business to the
   38  Bureau of Collateral Securities within the Department of
   39  Financial Services. The surplus lines insurer must submit to the
   40  office, along with the initial deposit, an accounting of the
   41  policies assumed and the amount of unearned premium for such
   42  policies and a sworn affidavit attesting to its accuracy by an
   43  officer of the surplus lines insurer. Thereafter, the surplus
   44  lines insurer must make a filing within 10 days after each
   45  calendar quarter attesting to the unearned premium in force for
   46  the previous quarter on policies assumed from the corporation,
   47  and must submit additional funds if the special deposit is
   48  insufficient to cover the unearned premium on assumed policies,
   49  or must receive a return of funds within 60 days if the special
   50  deposit exceeds the amount of unearned premium required for
   51  assumed policies. The special deposit is an asset of the surplus
   52  lines insurer which is held by the department for the benefit of
   53  state policyholders of the surplus lines insurer in the event of
   54  the insolvency of the surplus lines insurer. If an order of
   55  liquidation is entered in any state against the surplus lines
   56  insurer, the department may use the special deposit for payment
   57  of unearned premium or policy claims, return all or part of the
   58  deposit to the domiciliary receiver, or use the funds in
   59  accordance with any action authorized under part I of chapter
   60  631 or in compliance with any order of a court having
   61  jurisdiction over the insolvency.
   62         (V) Surplus lines brokers representing a surplus lines