Florida Senate - 2017                                     SB 728
       
       
        
       By Senator Rouson
       
       19-00398-17                                            2017728__
    1                        A bill to be entitled                      
    2         An act relating to property insurance; amending s.
    3         627.351, F.S.; revising limitations on the aggregate
    4         amount of certain emergency assessments levied by the
    5         board of governors of the Citizens Property Insurance
    6         Corporation; prohibiting the corporation from pledging
    7         more than a specified percent of its commercial lines
    8         account emergency assessment authority to secure the
    9         issuance of bonds or any other security; amending s.
   10         631.57, F.S.; revising a limitation on a certain
   11         obligation of the Florida Insurance Guaranty
   12         Association for policies covering condominium
   13         associations or homeowners’ associations; specifying
   14         future revisions of the limitation; requiring the
   15         Office of Insurance Regulation to levy specified
   16         additional emergency assessments against certain
   17         insurers for specified purposes; specifying
   18         requirements for levying such assessments; exempting
   19         an insurer from making a certain initial payment;
   20         providing applicability; amending s. 625.012, F.S.;
   21         conforming a cross-reference; providing an effective
   22         date.
   23          
   24  Be It Enacted by the Legislature of the State of Florida:
   25  
   26         Section 1. Paragraph (b) of subsection (6) of section
   27  627.351, Florida Statutes, is amended to read:
   28         627.351 Insurance risk apportionment plans.—
   29         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
   30         (b)1. All insurers authorized to write one or more subject
   31  lines of business in this state are subject to assessment by the
   32  corporation and, for the purposes of this subsection, are
   33  referred to collectively as “assessable insurers.” Insurers
   34  writing one or more subject lines of business in this state
   35  pursuant to part VIII of chapter 626 are not assessable
   36  insurers; however, insureds who procure one or more subject
   37  lines of business in this state pursuant to part VIII of chapter
   38  626 are subject to assessment by the corporation and are
   39  referred to collectively as “assessable insureds.” An insurer’s
   40  assessment liability begins on the first day of the calendar
   41  year following the year in which the insurer was issued a
   42  certificate of authority to transact insurance for subject lines
   43  of business in this state and terminates 1 year after the end of
   44  the first calendar year during which the insurer no longer holds
   45  a certificate of authority to transact insurance for subject
   46  lines of business in this state.
   47         2.a. All revenues, assets, liabilities, losses, and
   48  expenses of the corporation shall be divided into three separate
   49  accounts as follows:
   50         (I) A personal lines account for personal residential
   51  policies issued by the corporation which provides comprehensive,
   52  multiperil coverage on risks that are not located in areas
   53  eligible for coverage by the Florida Windstorm Underwriting
   54  Association as those areas were defined on January 1, 2002, and
   55  for policies that do not provide coverage for the peril of wind
   56  on risks that are located in such areas;
   57         (II) A commercial lines account for commercial residential
   58  and commercial nonresidential policies issued by the corporation
   59  which provides coverage for basic property perils on risks that
   60  are not located in areas eligible for coverage by the Florida
   61  Windstorm Underwriting Association as those areas were defined
   62  on January 1, 2002, and for policies that do not provide
   63  coverage for the peril of wind on risks that are located in such
   64  areas; and
   65         (III) A coastal account for personal residential policies
   66  and commercial residential and commercial nonresidential
   67  property policies issued by the corporation which provides
   68  coverage for the peril of wind on risks that are located in
   69  areas eligible for coverage by the Florida Windstorm
   70  Underwriting Association as those areas were defined on January
   71  1, 2002. The corporation may offer policies that provide
   72  multiperil coverage and shall offer policies that provide
   73  coverage only for the peril of wind for risks located in areas
   74  eligible for coverage in the coastal account. Effective July 1,
   75  2014, the corporation shall cease offering new commercial
   76  residential policies providing multiperil coverage and shall
   77  instead continue to offer commercial residential wind-only
   78  policies, and may offer commercial residential policies
   79  excluding wind. The corporation may, however, continue to renew
   80  a commercial residential multiperil policy on a building that is
   81  insured by the corporation on June 30, 2014, under a multiperil
   82  policy. In issuing multiperil coverage, the corporation may use
   83  its approved policy forms and rates for the personal lines
   84  account. An applicant or insured who is eligible to purchase a
   85  multiperil policy from the corporation may purchase a multiperil
   86  policy from an authorized insurer without prejudice to the
   87  applicant’s or insured’s eligibility to prospectively purchase a
   88  policy that provides coverage only for the peril of wind from
   89  the corporation. An applicant or insured who is eligible for a
   90  corporation policy that provides coverage only for the peril of
   91  wind may elect to purchase or retain such policy and also
   92  purchase or retain coverage excluding wind from an authorized
   93  insurer without prejudice to the applicant’s or insured’s
   94  eligibility to prospectively purchase a policy that provides
   95  multiperil coverage from the corporation. It is the goal of the
   96  Legislature that there be an overall average savings of 10
   97  percent or more for a policyholder who currently has a wind-only
   98  policy with the corporation, and an ex-wind policy with a
   99  voluntary insurer or the corporation, and who obtains a
  100  multiperil policy from the corporation. It is the intent of the
  101  Legislature that the offer of multiperil coverage in the coastal
  102  account be made and implemented in a manner that does not
  103  adversely affect the tax-exempt status of the corporation or
  104  creditworthiness of or security for currently outstanding
  105  financing obligations or credit facilities of the coastal
  106  account, the personal lines account, or the commercial lines
  107  account. The coastal account must also include quota share
  108  primary insurance under subparagraph (c)2. The area eligible for
  109  coverage under the coastal account also includes the area within
  110  Port Canaveral, which is bordered on the south by the City of
  111  Cape Canaveral, bordered on the west by the Banana River, and
  112  bordered on the north by Federal Government property.
  113         b. The three separate accounts must be maintained as long
  114  as financing obligations entered into by the Florida Windstorm
  115  Underwriting Association or Residential Property and Casualty
  116  Joint Underwriting Association are outstanding, in accordance
  117  with the terms of the corresponding financing documents. If the
  118  financing obligations are no longer outstanding, the corporation
  119  may use a single account for all revenues, assets, liabilities,
  120  losses, and expenses of the corporation. Consistent with this
  121  subparagraph and prudent investment policies that minimize the
  122  cost of carrying debt, the board shall exercise its best efforts
  123  to retire existing debt or obtain the approval of necessary
  124  parties to amend the terms of existing debt, so as to structure
  125  the most efficient plan for consolidating the three separate
  126  accounts into a single account.
  127         c. Creditors of the Residential Property and Casualty Joint
  128  Underwriting Association and the accounts specified in sub-sub
  129  subparagraphs a.(I) and (II) may have a claim against, and
  130  recourse to, those accounts and no claim against, or recourse
  131  to, the account referred to in sub-sub-subparagraph a.(III).
  132  Creditors of the Florida Windstorm Underwriting Association have
  133  a claim against, and recourse to, the account referred to in
  134  sub-sub-subparagraph a.(III) and no claim against, or recourse
  135  to, the accounts referred to in sub-sub-subparagraphs a.(I) and
  136  (II).
  137         d. Revenues, assets, liabilities, losses, and expenses not
  138  attributable to particular accounts shall be prorated among the
  139  accounts.
  140         e. The Legislature finds that the revenues of the
  141  corporation are revenues that are necessary to meet the
  142  requirements set forth in documents authorizing the issuance of
  143  bonds under this subsection.
  144         f. The income of the corporation may not inure to the
  145  benefit of any private person.
  146         3. With respect to a deficit in an account:
  147         a. After accounting for the Citizens policyholder surcharge
  148  imposed under sub-subparagraph i., if the remaining projected
  149  deficit incurred in the coastal account in a particular calendar
  150  year:
  151         (I) Is not greater than 2 percent of the aggregate
  152  statewide direct written premium for the subject lines of
  153  business for the prior calendar year, the entire deficit shall
  154  be recovered through regular assessments of assessable insurers
  155  under paragraph (q) and assessable insureds.
  156         (II) Exceeds 2 percent of the aggregate statewide direct
  157  written premium for the subject lines of business for the prior
  158  calendar year, the corporation shall levy regular assessments on
  159  assessable insurers under paragraph (q) and on assessable
  160  insureds in an amount equal to the greater of 2 percent of the
  161  projected deficit or 2 percent of the aggregate statewide direct
  162  written premium for the subject lines of business for the prior
  163  calendar year. Any remaining projected deficit shall be
  164  recovered through emergency assessments under sub-subparagraph
  165  d.
  166         b. Each assessable insurer’s share of the amount being
  167  assessed under sub-subparagraph a. must be in the proportion
  168  that the assessable insurer’s direct written premium for the
  169  subject lines of business for the year preceding the assessment
  170  bears to the aggregate statewide direct written premium for the
  171  subject lines of business for that year. The assessment
  172  percentage applicable to each assessable insured is the ratio of
  173  the amount being assessed under sub-subparagraph a. to the
  174  aggregate statewide direct written premium for the subject lines
  175  of business for the prior year. Assessments levied by the
  176  corporation on assessable insurers under sub-subparagraph a.
  177  must be paid as required by the corporation’s plan of operation
  178  and paragraph (q). Assessments levied by the corporation on
  179  assessable insureds under sub-subparagraph a. shall be collected
  180  by the surplus lines agent at the time the surplus lines agent
  181  collects the surplus lines tax required by s. 626.932, and paid
  182  to the Florida Surplus Lines Service Office at the time the
  183  surplus lines agent pays the surplus lines tax to that office.
  184  Upon receipt of regular assessments from surplus lines agents,
  185  the Florida Surplus Lines Service Office shall transfer the
  186  assessments directly to the corporation as determined by the
  187  corporation.
  188         c. After accounting for the Citizens policyholder surcharge
  189  imposed under sub-subparagraph i., the remaining projected
  190  deficits in the personal lines account and in the commercial
  191  lines account in a particular calendar year shall be recovered
  192  through emergency assessments under sub-subparagraph d.
  193         d. Upon a determination by the board of governors that a
  194  projected deficit in an account exceeds the amount that is
  195  expected to be recovered through regular assessments under sub
  196  subparagraph a., plus the amount that is expected to be
  197  recovered through surcharges under sub-subparagraph i., the
  198  board, after verification by the office, shall levy emergency
  199  assessments for as many years as necessary to cover the
  200  deficits, to be collected by assessable insurers and the
  201  corporation and collected from assessable insureds upon issuance
  202  or renewal of policies for subject lines of business, excluding
  203  National Flood Insurance policies. The amount collected in a
  204  particular year must be a uniform percentage of that year’s
  205  direct written premium for subject lines of business and all
  206  accounts of the corporation, excluding National Flood Insurance
  207  Program policy premiums, as annually determined by the board and
  208  verified by the office. The office shall verify the arithmetic
  209  calculations involved in the board’s determination within 30
  210  days after receipt of the information on which the determination
  211  was based. The office shall notify assessable insurers and the
  212  Florida Surplus Lines Service Office of the date on which
  213  assessable insurers shall begin to collect and assessable
  214  insureds shall begin to pay such assessment. The date must be at
  215  least 90 days after the date the corporation levies emergency
  216  assessments pursuant to this sub-subparagraph. Notwithstanding
  217  any other provision of law, the corporation and each assessable
  218  insurer that writes subject lines of business shall collect
  219  emergency assessments from its policyholders without such
  220  obligation being affected by any credit, limitation, exemption,
  221  or deferment. Emergency assessments levied by the corporation on
  222  assessable insureds shall be collected by the surplus lines
  223  agent at the time the surplus lines agent collects the surplus
  224  lines tax required by s. 626.932 and paid to the Florida Surplus
  225  Lines Service Office at the time the surplus lines agent pays
  226  the surplus lines tax to that office. The emergency assessments
  227  collected shall be transferred directly to the corporation on a
  228  periodic basis as determined by the corporation and held by the
  229  corporation solely in the applicable account. The aggregate
  230  amount of emergency assessments levied for an account in any
  231  calendar year may be less than but may not exceed the greater of
  232  10 percent of the amount needed to cover the deficit, plus
  233  interest, fees, commissions, required reserves, and other costs
  234  associated with financing the original deficit for the personal
  235  lines or the coastal accounts, or 10 percent of the aggregate
  236  statewide direct written premium for subject lines of business
  237  and all accounts of the corporation for the prior year, plus
  238  interest, fees, commissions, required reserves, and other costs
  239  associated with financing the deficit for the personal lines or
  240  the coastal accounts. The aggregate amount of emergency
  241  assessments levied for the commercial account in any calendar
  242  year may be less than but may not exceed the greater of 9
  243  percent of the amount needed to cover the deficit, plus
  244  interest, fees, commissions, required reserves, and other costs
  245  associated with financing the original deficit, or 9 percent of
  246  the aggregate statewide direct written premium for subject lines
  247  of business and all accounts of the corporation for the prior
  248  year, plus interest, fees, commissions, required reserves, and
  249  other costs associated with financing the deficit. The
  250  corporation may not pledge more than 9 percent of the commercial
  251  lines account emergency assessment authority set forth in this
  252  sub-subparagraph to secure the issuance of bonds or any other
  253  security.
  254         e. The corporation may pledge the proceeds of assessments,
  255  projected recoveries from the Florida Hurricane Catastrophe
  256  Fund, other insurance and reinsurance recoverables, policyholder
  257  surcharges and other surcharges, and other funds available to
  258  the corporation as the source of revenue for and to secure bonds
  259  issued under paragraph (q), bonds or other indebtedness issued
  260  under subparagraph (c)3., or lines of credit or other financing
  261  mechanisms issued or created under this subsection, or to retire
  262  any other debt incurred as a result of deficits or events giving
  263  rise to deficits, or in any other way that the board determines
  264  will efficiently recover such deficits. The purpose of the lines
  265  of credit or other financing mechanisms is to provide additional
  266  resources to assist the corporation in covering claims and
  267  expenses attributable to a catastrophe. As used in this
  268  subsection, the term “assessments” includes regular assessments
  269  under sub-subparagraph a. or subparagraph (q)1. and emergency
  270  assessments under sub-subparagraph d. Emergency assessments
  271  collected under sub-subparagraph d. are not part of an insurer’s
  272  rates, are not premium, and are not subject to premium tax,
  273  fees, or commissions; however, failure to pay the emergency
  274  assessment shall be treated as failure to pay premium. The
  275  emergency assessments shall continue as long as any bonds issued
  276  or other indebtedness incurred with respect to a deficit for
  277  which the assessment was imposed remain outstanding, unless
  278  adequate provision has been made for the payment of such bonds
  279  or other indebtedness pursuant to the documents governing such
  280  bonds or indebtedness.
  281         f. As used in this subsection for purposes of any deficit
  282  incurred on or after January 25, 2007, the term “subject lines
  283  of business” means insurance written by assessable insurers or
  284  procured by assessable insureds for all property and casualty
  285  lines of business in this state, but not including workers’
  286  compensation or medical malpractice. As used in this sub
  287  subparagraph, the term “property and casualty lines of business”
  288  includes all lines of business identified on Form 2, Exhibit of
  289  Premiums and Losses, in the annual statement required of
  290  authorized insurers under s. 624.424 and any rule adopted under
  291  this section, except for those lines identified as accident and
  292  health insurance and except for policies written under the
  293  National Flood Insurance Program or the Federal Crop Insurance
  294  Program. For purposes of this sub-subparagraph, the term
  295  “workers’ compensation” includes both workers’ compensation
  296  insurance and excess workers’ compensation insurance.
  297         g. The Florida Surplus Lines Service Office shall determine
  298  annually the aggregate statewide written premium in subject
  299  lines of business procured by assessable insureds and report
  300  that information to the corporation in a form and at a time the
  301  corporation specifies to ensure that the corporation can meet
  302  the requirements of this subsection and the corporation’s
  303  financing obligations.
  304         h. The Florida Surplus Lines Service Office shall verify
  305  the proper application by surplus lines agents of assessment
  306  percentages for regular assessments and emergency assessments
  307  levied under this subparagraph on assessable insureds and assist
  308  the corporation in ensuring the accurate, timely collection and
  309  payment of assessments by surplus lines agents as required by
  310  the corporation.
  311         i. Upon determination by the board of governors that an
  312  account has a projected deficit, the board shall levy a Citizens
  313  policyholder surcharge against all policyholders of the
  314  corporation.
  315         (I) The surcharge shall be levied as a uniform percentage
  316  of the premium for the policy of up to 15 percent of such
  317  premium, which funds shall be used to offset the deficit.
  318         (II) The surcharge is payable upon cancellation or
  319  termination of the policy, upon renewal of the policy, or upon
  320  issuance of a new policy by the corporation within the first 12
  321  months after the date of the levy or the period of time
  322  necessary to fully collect the surcharge amount.
  323         (III) The corporation may not levy any regular assessments
  324  under paragraph (q) pursuant to sub-subparagraph a. or sub
  325  subparagraph b. with respect to a particular year’s deficit
  326  until the corporation has first levied the full amount of the
  327  surcharge authorized by this sub-subparagraph.
  328         (IV) The surcharge is not considered premium and is not
  329  subject to commissions, fees, or premium taxes. However, failure
  330  to pay the surcharge shall be treated as failure to pay premium.
  331         j. If the amount of any assessments or surcharges collected
  332  from corporation policyholders, assessable insurers or their
  333  policyholders, or assessable insureds exceeds the amount of the
  334  deficits, such excess amounts shall be remitted to and retained
  335  by the corporation in a reserve to be used by the corporation,
  336  as determined by the board of governors and approved by the
  337  office, to pay claims or reduce any past, present, or future
  338  plan-year deficits or to reduce outstanding debt.
  339         Section 2. Paragraph (a) of subsection (1) and paragraph
  340  (e) of subsection (3) of section 631.57, Florida Statutes, are
  341  amended to read:
  342         631.57 Powers and duties of the association.—
  343         (1) The association shall:
  344         (a)1. Be obligated to the extent of the covered claims
  345  existing:
  346         a. Prior to adjudication of insolvency and arising within
  347  30 days after the determination of insolvency;
  348         b. Before the policy expiration date if less than 30 days
  349  after the determination; or
  350         c. Before the insured replaces the policy or causes its
  351  cancellation, if she or he does so within 30 days of the
  352  determination.
  353         2. The obligation under subparagraph 1. includes only the
  354  amount of each covered claim which is in excess of $100 and is
  355  less than $300,000, except that policies providing coverage for
  356  homeowner’s insurance shall provide for an additional $200,000
  357  for the portion of a covered claim which relates only to the
  358  damage to the structure and contents.
  359         3.a. Notwithstanding subparagraph 2., the obligation under
  360  subparagraph 1. for policies covering condominium associations
  361  or homeowners’ associations, which associations have a
  362  responsibility to provide insurance coverage on residential
  363  units within the association, shall include that amount of each
  364  covered property insurance claim which is less than $100,000
  365  multiplied by the number of condominium units or other
  366  residential units multiplied by:
  367         (I) Before July 1, 2017, $100,000.
  368         (II) Beginning July 1, 2017, and ending June 30, 2018,
  369  $150,000.
  370         (III) Beginning July 1, 2018, and ending June 30, 2019,
  371  $200,000.
  372         (IV) Beginning July 1, 2019, and ending June 30, 2020,
  373  $250,000.
  374         (V) Beginning July 1, 2020, $300,000.;
  375  
  376  However, as to homeowners’ associations, this sub-subparagraph
  377  applies only to claims for damage or loss to residential units
  378  and structures attached to residential units.
  379         b. Notwithstanding sub-subparagraph a., the association has
  380  no obligation to pay covered claims that are to be paid from the
  381  proceeds of bonds issued under s. 631.695. However, the
  382  association shall assign and pledge the first available moneys
  383  from all or part of the assessments to be made under paragraph
  384  (3)(a) to or on behalf of the issuer of such bonds for the
  385  benefit of the holders of such bonds. The association shall
  386  administer any such covered claims and present valid covered
  387  claims for payment in accordance with the provisions of the
  388  assistance program in connection with which such bonds have been
  389  issued.
  390         4. In no event shall the association be obligated to a
  391  policyholder or claimant in an amount in excess of the
  392  obligation of the insolvent insurer under the policy from which
  393  the claim arises.
  394         (3)
  395         (e)1. In addition to assessments authorized in paragraph
  396  (a), and to the extent necessary to secure the funds for the
  397  account specified in s. 631.55(2)(b) for the direct payment of
  398  covered claims of insurers rendered insolvent by the effects of
  399  a hurricane and to pay the reasonable costs to administer such
  400  claims, or to retire indebtedness, including, without
  401  limitation, the principal, redemption premium, if any, and
  402  interest on, and related costs of issuance of, bonds issued
  403  under s. 631.695 and the funding of any reserves and other
  404  payments required under the bond resolution or trust indenture
  405  pursuant to which such bonds have been issued, the office, upon
  406  certification of the board of directors, shall levy emergency
  407  assessments upon insurers holding a certificate of authority.
  408  The emergency assessments levied against any insurer may not
  409  exceed in any one calendar year more than 2 percent of that
  410  insurer’s net written premiums in this state for the kinds of
  411  insurance within the account specified in s. 631.55(2)(b).
  412         2.a.In addition to the emergency assessment authorized in
  413  subparagraph 1., to retire indebtedness, including, without
  414  limitation, the principal, redemption premium, if any, and
  415  interest on, and related costs of issuance of bonds issued under
  416  s. 631.695 and the funding of any reserves and other payments
  417  required under the bond resolution or trust indenture pursuant
  418  to which such bonds have been issued, the office, upon
  419  certification of the board of directors, shall levy additional
  420  emergency assessments against insurers subject to assessment
  421  under this part in an amount not to exceed a dollar amount equal
  422  to or less than 1 percent of the aggregate statewide direct
  423  written premium for subject lines of business eligible for
  424  assessment under the Citizens Property Insurance Corporation’s
  425  commercial lines account assessment authority set forth in s.
  426  627.351(6)(b)3.d.
  427         b. Assessments levied under this subparagraph must be
  428  levied only against the lines of business subject to assessment
  429  under this part and must be levied only utilizing the monthly
  430  installment method set forth in subparagraph (f)2. An insurer is
  431  not required to make an initial payment as set forth in sub
  432  subparagraph (f)1.b. and c.
  433         c. This subparagraph applies to emergency assessments
  434  levied on or after July 1, 2022, or 30 days after all Citizens
  435  Property Insurance Corporation Personal Lines Account/Commercial
  436  Lines Account Senior Secured Bonds Series 2012A-1, 2012 Series
  437  A-2, and 2012 Series A-3 are defeased, whichever occurs earlier.
  438         3.2. Emergency assessments authorized under this paragraph
  439  shall be levied by the office upon insurers in accordance with
  440  paragraph (f), upon certification as to the need for such
  441  assessments by the board of directors. If the board participates
  442  in the issuance of bonds in accordance with s. 631.695,
  443  emergency assessments shall be levied in each year that bonds
  444  issued under s. 631.695 and secured by such emergency
  445  assessments are outstanding in amounts up to such 2-percent
  446  limit as required in order to provide for the full and timely
  447  payment of the principal of, redemption premium, if any, and
  448  interest on, and related costs of issuance of, such bonds. The
  449  emergency assessments are assigned and pledged to the
  450  municipality, county, or legal entity issuing bonds under s.
  451  631.695 for the benefit of the holders of such bonds in order to
  452  provide for the payment of the principal of, redemption premium,
  453  if any, and interest on such bonds, the cost of issuance of such
  454  bonds, and the funding of any reserves and other payments
  455  required under the bond resolution or trust indenture pursuant
  456  to which such bonds have been issued, without further action by
  457  the association, the office, or any other party. If bonds are
  458  issued under s. 631.695 and the association determines to secure
  459  such bonds by a pledge of revenues received from the emergency
  460  assessments, such bonds, upon such pledge of revenues, shall be
  461  secured by and payable from the proceeds of such emergency
  462  assessments, and the proceeds of emergency assessments levied
  463  under this paragraph shall be remitted directly to and
  464  administered by the trustee or custodian appointed for such
  465  bonds.
  466         4.3. Emergency assessments used to defease bonds issued
  467  under this part may be payable in a single payment or, at the
  468  option of the association, may be payable in 12 monthly
  469  installments with the first installment being due and payable at
  470  the end of the month after an emergency assessment is levied and
  471  subsequent installments being due by the end of each succeeding
  472  month.
  473         5.4. If emergency assessments are imposed, the report
  474  required by s. 631.695(7) must include an analysis of the
  475  revenues generated from the emergency assessments imposed under
  476  this paragraph.
  477         6.5. If emergency assessments are imposed, the references
  478  in sub-subparagraph (1)(a)3.b. and s. 631.695(2) and (7) to
  479  assessments levied under paragraph (a) must include emergency
  480  assessments imposed under this paragraph.
  481         7.6. If the board of directors participates in the issuance
  482  of bonds in accordance with s. 631.695, an annual assessment
  483  under this paragraph shall continue while the bonds issued with
  484  respect to which the assessment was imposed are outstanding,
  485  including any bonds the proceeds of which were used to refund
  486  bonds issued pursuant to s. 631.695, unless adequate provision
  487  has been made for the payment of the bonds in the documents
  488  authorizing the issuance of such bonds.
  489         Section 3. Paragraph (b) of subsection (15) of section
  490  625.012, Florida Statutes, is amended to read:
  491         625.012 “Assets” defined.—In any determination of the
  492  financial condition of an insurer, there shall be allowed as
  493  “assets” only such assets as are owned by the insurer and which
  494  consist of:
  495         (15)
  496         (b) Assessments levied as monthly installments pursuant to
  497  s. 631.57(3)(e)4. which s. 631.57(3)(e)3. that are paid after
  498  policy surcharges are collected so that the recognition of
  499  assets is based on actual premium written offset by the
  500  obligation to the Florida Insurance Guaranty Association.
  501         Section 4. This act shall take effect upon becoming a law.