Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. SB 940
       
       
       
       
       
       
                                Ì583332ÅÎ583332                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/11/2016           .                                
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       The Committee on Banking and Insurance (Lee) recommended the
       following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 39 - 76
    4  and insert:
    5  are members of an insurance holding company system that has $1
    6  billion or more in surplus as to policyholders and a superior,
    7  excellent, exceptional, or an equivalent financial strength
    8  rating by a rating agency acceptable to the office:
    9         (a) A reserve with respect to unearned premiums for
   10  policies written or title liability assumed in reinsurance
   11  before July 1, 1999, equal to the reserve established on June
   12  30, 1999, for those unearned premiums with such reserve being
   13  subsequently released as provided in subsection (2). For
   14  domestic title insurers subject to this section, such amounts
   15  shall be calculated in accordance with state law in effect at
   16  the time the associated premiums were written or assumed and as
   17  amended before July 1, 1999.
   18         (b) A total amount equal to 30 cents for each $1,000 of net
   19  retained liability for policies written or title liability
   20  assumed in reinsurance on or after July 1, 1999, with such
   21  reserve being subsequently released as provided in subsection
   22  (2). For the purpose of calculating this reserve, the total of
   23  the net retained liability for all simultaneous issue policies
   24  covering a single risk shall be equal to the liability for the
   25  policy with the highest limit covering that single risk, net of
   26  any liability ceded in reinsurance.
   27         (c) On or after January 1, 2014, for title insurers that
   28  are members of an insurance holding company system that has $1
   29  billion or more in surplus as to policyholders and a superior,
   30  excellent, exceptional, or an equivalent financial strength
   31  rating by a rating agency acceptable to the office, or title
   32  insurers holding $50 million or more in surplus as to
   33  policyholders as of the previous year end, a minimum of 6.5
   34  percent of the total of the following:
   35         1. Direct premiums written; and
   36         2. Premiums for reinsurance assumed, plus other income,
   37  less premiums for reinsurance ceded as displayed in Schedule P
   38  of the title insurer’s most recent annual statement filed with
   39  the office with such reserve being subsequently released as
   40  provided in subsection (2). Title insurers with less than $50
   41  million in surplus as to policyholders that are not members of
   42  an insurance holding company system that has $1 billion or more
   43  in surplus as to policyholders and a superior, excellent,
   44  exceptional, or an equivalent financial strength rating by a
   45  rating agency acceptable to the office must continue to record
   46  unearned premium reserve in