Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 1866
Barcode 655930
CHAMBER ACTION
Senate House
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05/02/2007 12:51 PM .
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11 Senator Deutch moved the following amendment:
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13 Senate Amendment (with directory and title amendments)
14 On page 11, between lines 19 and 20,
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16 insert:
17 (6) REVENUE BONDS.--
18 (b) Emergency assessments.--
19 1. If the board determines that the amount of revenue
20 produced under subsection (5) is insufficient to fund the
21 obligations, costs, and expenses of the fund and the
22 corporation, including repayment of revenue bonds and that
23 portion of the debt service coverage not met by reimbursement
24 premiums, the board shall direct the Office of Insurance
25 Regulation to levy, by order, an emergency assessment on
26 direct premiums for all property and casualty lines of
27 business in this state, including property and casualty
28 business of surplus lines insurers regulated under part VIII
29 of chapter 626, but not including any workers' compensation
30 premiums or medical malpractice premiums. As used in this
31 subsection, the term "property and casualty business" includes
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 1866
Barcode 655930
1 all lines of business identified on Form 2, Exhibit of
2 Premiums and Losses, in the annual statement required of
3 authorized insurers by s. 624.424 and any rule adopted under
4 this section, except for those lines identified as accident
5 and health insurance and except for policies written under the
6 National Flood Insurance Program. The assessment shall be
7 specified as a percentage of direct written premium and is
8 subject to annual adjustments by the board in order to meet
9 debt obligations. The same percentage shall apply to all
10 policies in lines of business subject to the assessment issued
11 or renewed during the 12-month period beginning on the
12 effective date of the assessment.
13 2. A premium is not subject to an annual assessment
14 under this paragraph in excess of 6 percent of premium with
15 respect to obligations arising out of losses attributable to
16 any one contract year, and a premium is not subject to an
17 aggregate annual assessment under this paragraph in excess of
18 10 percent of premium. An annual assessment under this
19 paragraph shall continue as long as the revenue bonds issued
20 with respect to which the assessment was imposed are
21 outstanding, including any bonds the proceeds of which were
22 used to refund the revenue bonds, unless adequate provision
23 has been made for the payment of the bonds under the documents
24 authorizing issuance of the bonds.
25 3. Emergency assessments shall be collected from
26 policyholders. Emergency assessments shall be remitted by
27 insurers as a percentage of direct written premium for the
28 preceding calendar quarter as specified in the order from the
29 Office of Insurance Regulation. The office shall verify the
30 accurate and timely collection and remittance of emergency
31 assessments and shall report the information to the board in a
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 1866
Barcode 655930
1 form and at a time specified by the board. Each insurer
2 collecting assessments shall provide the information with
3 respect to premiums and collections as may be required by the
4 office to enable the office to monitor and verify compliance
5 with this paragraph.
6 4. With respect to assessments of surplus lines
7 premiums, each surplus lines agent shall collect the
8 assessment at the same time as the agent collects the surplus
9 lines tax required by s. 626.932, and the surplus lines agent
10 shall remit the assessment to the Florida Surplus Lines
11 Service Office created by s. 626.921 at the same time as the
12 agent remits the surplus lines tax to the Florida Surplus
13 Lines Service Office. The emergency assessment on each insured
14 procuring coverage and filing under s. 626.938 shall be
15 remitted by the insured to the Florida Surplus Lines Service
16 Office at the time the insured pays the surplus lines tax to
17 the Florida Surplus Lines Service Office. The Florida Surplus
18 Lines Service Office shall remit the collected assessments to
19 the fund or corporation as provided in the order levied by the
20 Office of Insurance Regulation. The Florida Surplus Lines
21 Service Office shall verify the proper application of such
22 emergency assessments and shall assist the board in ensuring
23 the accurate and timely collection and remittance of
24 assessments as required by the board. The Florida Surplus
25 Lines Service Office shall annually calculate the aggregate
26 written premium on property and casualty business, other than
27 workers' compensation and medical malpractice, procured
28 through surplus lines agents and insureds procuring coverage
29 and filing under s. 626.938 and shall report the information
30 to the board in a form and at a time specified by the board.
31 5. Any assessment authority not used for a particular
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 1866
Barcode 655930
1 contract year may be used for a subsequent contract year. If,
2 for a subsequent contract year, the board determines that the
3 amount of revenue produced under subsection (5) is
4 insufficient to fund the obligations, costs, and expenses of
5 the fund and the corporation, including repayment of revenue
6 bonds and that portion of the debt service coverage not met by
7 reimbursement premiums, the board shall direct the Office of
8 Insurance Regulation to levy an emergency assessment up to an
9 amount not exceeding the amount of unused assessment authority
10 from a previous contract year or years, plus an additional 4
11 percent provided that the assessments in the aggregate do not
12 exceed the limits specified in subparagraph 2.
13 6. The assessments otherwise payable to the
14 corporation under this paragraph shall be paid to the fund
15 unless and until the Office of Insurance Regulation and the
16 Florida Surplus Lines Service Office have received from the
17 corporation and the fund a notice, which shall be conclusive
18 and upon which they may rely without further inquiry, that the
19 corporation has issued bonds and the fund has no agreements in
20 effect with local governments under paragraph (c). On or after
21 the date of the notice and until the date the corporation has
22 no bonds outstanding, the fund shall have no right, title, or
23 interest in or to the assessments, except as provided in the
24 fund's agreement with the corporation.
25 7. Emergency assessments are not premium and are not
26 subject to the premium tax, to the surplus lines tax, to any
27 fees, or to any commissions. An insurer is liable for all
28 assessments that it collects and must treat the failure of an
29 insured to pay an assessment as a failure to pay the premium.
30 An insurer is not liable for uncollectible assessments.
31 8. When an insurer is required to return an unearned
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 1866
Barcode 655930
1 premium, it shall also return any collected assessment
2 attributable to the unearned premium. A credit adjustment to
3 the collected assessment may be made by the insurer with
4 regard to future remittances that are payable to the fund or
5 corporation, but the insurer is not entitled to a refund.
6 9. When a surplus lines insured or an insured who has
7 procured coverage and filed under s. 626.938 is entitled to
8 the return of an unearned premium, the Florida Surplus Lines
9 Service Office shall provide a credit or refund to the agent
10 or such insured for the collected assessment attributable to
11 the unearned premium prior to remitting the emergency
12 assessment collected to the fund or corporation.
13 10. The exemption of medical malpractice insurance
14 premiums from emergency assessments under this paragraph is
15 repealed May 31, 2010 2007, and medical malpractice insurance
16 premiums shall be subject to emergency assessments
17 attributable to loss events occurring in the contract years
18 commencing on June 1, 2010 2007.
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21 ==== D I R E C T O R Y C L A U S E A M E N D M E N T ====
22 And the directory clause is amended as follows:
23 On page 8, line 21, following the first comma
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25 insert: paragraph (b) of subsection (6),
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28 ================ T I T L E A M E N D M E N T ===============
29 And the title is amended as follows:
30 On page 1, line 12, following the semicolon
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 1866
Barcode 655930
1 insert:
2 postponing the repeal of the exemption from
3 emergency assessments for medical malpractice
4 insurance premiums;
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