Florida Senate - 2015 COMMITTEE AMENDMENT
Bill No. CS for SB 252
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LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/01/2015 .
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The Committee on Judiciary (Soto) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 37 - 50
4 and insert:
5 statement of diligent effort from the retail or producing agent.
6 However, to be in compliance with the diligent effort
7 requirement, the surplus lines agent’s reliance must be
8 reasonable under the particular circumstances surrounding the
9 export of that particular risk. Reasonableness shall be assessed
10 by taking into account factors which include, but are not
11 limited to, a regularly conducted program of verification of the
12 information provided by the retail or producing agent.
13 Declinations must be documented on a risk-by-risk basis. If it
14 is not possible to obtain the full amount of insurance required
15 by layering the risk, it is permissible to export the full
16 amount.
17 Section 3. Paragraph (b) of subsection (1) of section
18 627.971, Florida Statutes, is amended to read
19 627.971 Definitions.—As used in this part:
20 (1)
21 (b) However, “financial guaranty insurance” does not
22 include:
23 1. Insurance of a loss resulting from an event described in
24 paragraph (a), if the loss is payable only upon the occurrence
25 of any of the following, as specified in a surety bond,
26 insurance policy, or indemnity contract:
27 a. A fortuitous physical event;
28 b. A failure of or deficiency in the operation of
29 equipment; or
30 c. An inability to extract or recover a natural resource;
31 2. An individual or schedule public official bond;
32 3. A court bond required in connection with judicial,
33 probate, bankruptcy, or equity proceedings, including a waiver,
34 probate, open estate, or life tenant bond;
35 4. A bond running to a federal, state, county, municipal
36 government, or other political subdivision, as a condition
37 precedent to the granting of a license to engage in a particular
38 business or of a permit to exercise a particular privilege;
39 5. A loss security bond or utility payment indemnity bond
40 running to a governmental unit, railroad, or charitable
41 organization;
42 6. A lease, purchase and sale, or concessionaire surety
43 bond;
44 7. Credit unemployment insurance on a debtor in connection
45 with a specific loan or other credit transaction, to provide
46 payments to a creditor in the event of unemployment of the
47 debtor for the installments or other periodic payments becoming
48 due while a debtor is unemployed;
49 8. Credit insurance indemnifying a manufacturer, merchant,
50 or educational institution which extends credit against loss or
51 damage resulting from nonpayment of debts owed to her or him for
52 goods or services provided in the normal course of her or his
53 business;
54 9. Guaranteed investment contracts that are issued by life
55 insurance companies and that provide that the life insurer will
56 make specified payments in exchange for specific premiums or
57 contributions;
58 10. Mortgage guaranty insurance as defined in s. 635.011(1)
59 or s. 635.021;
60 11. Indemnity contracts or similar guaranties, to the
61 extent that they are not otherwise limited or proscribed by this
62 part, in which a life insurer guarantees:
63 a. Its obligations or indebtedness or the obligations or
64 indebtedness of a subsidiary of which it owns more than 50
65 percent, other than a financial guaranty insurance corporation,
66 if:
67 (I) For any such obligations or indebtedness that are
68 backed by specific assets, such assets are at all times owned by
69 the insurer or the subsidiary; and
70 (II) For the obligations or indebtedness of the subsidiary
71 that are not backed by specific assets of the life insurer, the
72 guaranty terminates once the subsidiary ceases to be a
73 subsidiary; or
74 b. The obligations or indebtedness, including the
75 obligation to substitute assets where appropriate, with respect
76 to specific assets acquired by a life insurer in the course of
77 normal investment activities and not for the purpose of resale
78 with credit enhancement, or guarantees obligations or
79 indebtedness acquired by its subsidiary, provided that the
80 assets so acquired have been:
81 (I) Acquired by a special purpose entity where the sole
82 purpose is to acquire specific assets of the life insurer or the
83 subsidiary and issue securities or participation certificates
84 backed by such assets; or
85 (II) Sold to an independent third party; or
86 c. The obligations or indebtedness of an employee or agent
87 of the life insurer;
88 12. Any form of surety insurance as defined in s. 624.606;
89 13. Guarantees of higher education loans, unless written by
90 a financial guaranty insurance corporation; or
91 14.13. Any other form of insurance covering risks which the
92 office determines to be substantially similar to any of the
93 foregoing.
94
95 ================= T I T L E A M E N D M E N T ================
96 And the title is amended as follows:
97 Delete lines 5 - 7
98 and insert:
99 of insurance; amending s. 626.916, F.S.; revising the
100 required conditions for the export of insurance
101 coverage to delete a provision specifying how
102 reasonableness shall be assessed under certain
103 circumstances; amending s. 627.971, F.S.; providing
104 that the term “financial guaranty insurance” does not
105 include guarantees of higher education loans unless
106 written by a financial guaranty insurance corporation;
107 amending s.