Florida Senate - 2009 SENATOR AMENDMENT
Bill No. CS for CS for SB 1950
Barcode 147230
LEGISLATIVE ACTION
Senate . House
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Floor: 2/RS/2R .
04/24/2009 03:26 PM .
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Senators Deutch and Richter moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 1167 - 1214
4 and insert:
5 (k) Notwithstanding any other provision of this section:
6 1. It is the intent of the Legislature that the separate
7 rate filing provided for under this paragraph be reviewed by the
8 office in an expedited timeframe.
9 2. An insurer may make a separate filing limited solely to
10 a rate increase authorized by s. 627.0629(5), plus liquidity
11 instruments, plus the actual additional cost paid due to the
12 application of s. 215.555(17)(f), plus the actual additional
13 cost paid due to the application by the Florida Hurricane
14 Catastrophe Fund of a cash buildup factor pursuant to s.
15 215.555(5)(b), if all changes specified in the filing do not
16 result in an overall premium increase of more than 10 percent
17 for any individual policyholder. If an insurer purchases a
18 liquidity instrument or line of credit corresponding to coverage
19 within the TICL, the cost for the liquidity instrument or line
20 of credit may be included within the 10 percent overall limit
21 for the filing if the cost recovery allowed for the liquidity
22 instrument or line of credit does not exceed an amount that
23 results in a premium increase of more than 3 percent for any
24 individual policyholder.
25 3. An insurer may use only a liquidity instrument or line
26 of credit for the layers of coverage which exceed the published
27 claims-paying capacity of the fund. Once the fund achieves
28 claims-paying capacity to meet its full obligations, the
29 liquidity instrument or line of credit is not recoverable under
30 the provisions of this paragraph.
31 4. Any insurer that purchases reinsurance from an
32 affiliated company in compliance with this paragraph may do so
33 only if the costs for such reinsurance are charged at or below
34 charges made for comparable coverage by nonaffiliated reinsurers
35 making such coverage available in Florida.
36 5. An insurer that submits a filing pursuant to this
37 paragraph shall include a copy of the reinsurance contract,
38 liquidity instrument contract or line of credit contract, proof
39 of the billing or payment for the contract, and the calculations
40 upon which the rate change is based demonstrating that the costs
41 meet the criteria of this section and are not loaded for
42 expenses or profit.
43 6. This paragraph is not applicable to any filing if the
44 insurer has implemented an increase in its rate within the 6
45 months preceding the filing. An insurer making a filing pursuant
46 to this paragraph may not implement any additional rate increase
47 for the same business for at least 12 months after
48 implementation of the separate filing.
49 7. An insurer that elects to implement a rate change under
50 this paragraph must file its rate filing with the office at
51 least 40 days before the effective date of the rate change. Once
52 an insurer submits a complete filing that meets all of the
53 requirements of this paragraph, the office has 30 days after the
54 date of the filing to review the rate filing and determine if
55 the rate is excessive, inadequate, or unfairly discriminatory.
56 Absent a finding by the office within the 30-day period that the
57 rate is excessive, inadequate, or unfairly discriminatory, the
58 filing is deemed approved.
59 8. An insurer must proceed under other provisions of this
60 section or other provisions of law if the insurer seeks to
61 exceed the premium or rate limitations of this paragraph.
62 9. This paragraph does not limit the authority of the
63 office to disapprove a rate filing as excessive, inadequate, or
64 unfairly discriminatory.
65 10. If an insurer submits a filing that meets all of the
66 requirements specified in this paragraph, the rate increase
67 submitted by the insurer shall be presumed correct, unless
68 demonstrated otherwise by the office.
69 11. This paragraph does not apply to rate filings for any
70 insurance other than residential property insurance.
71
72 ================= T I T L E A M E N D M E N T ================
73 And the title is amended as follows:
74 Delete lines 47 - 50
75 and insert:
76 use filing; providing legislative intent; authorizing
77 an insurer to make a separate filing limited solely to
78 a rate increase authorized by the act if all changes
79 specified in the filing do not result in an overall
80 premium increase of more than 10 percent for any
81 individual policyholder; providing procedures to apply
82 for the rate filing; providing that the rate filing
83 applies only to residential property insurance;
84 amending s. 627.0621, F.S.;