Florida Senate - 2017 SB 814
By Senator Broxson
1 A bill to be entitled
2 An act relating to the Florida Life and Health
3 Insurance Guaranty Association; amending s. 631.713,
4 F.S.; revising applicability of the Florida Life and
5 Health Insurance Guaranty Association Act as to
6 specified annuity contracts; amending s. 631.717,
7 F.S.; revising the association’s maximum aggregate
8 liability for the contractual obligations of an
9 insolvent insurer with respect to one life; specifying
10 the association’s maximum liability as to certain
11 health insurance policies; amending s. 631.718, F.S.;
12 revising the maximum limit of a certain annual
13 assessment levied on member insurers by the
14 association’s board of directors; providing an
15 effective date.
17 Be It Enacted by the Legislature of the State of Florida:
19 Section 1. Paragraph (l) of subsection (3) of section
20 631.713, Florida Statutes, is amended to read:
21 631.713 Application of part.—
22 (3) This part does not apply to:
23 (l) Any annuity contract or group annuity contract that is
24 not issued to and owned by an individual, except to the extent
25 of any annuity benefits:
26 1. Guaranteed directly and not through an intermediary to
27 an individual by an insurer under such contract or certificate;
28 2. Under an annuity issued by an insurer under 26 U.S.C. s.
29 408(b); or
30 3. Under an annuity issued by an insurer and held by a
31 custodian or trustee in accordance with 26 U.S.C. 408(a).
33 This paragraph applies to every insolvency regardless of its
34 date of inception, and an assessment base may not include
35 premiums for such excluded products.
36 Section 2. Subsection (9) of section 631.717, Florida
37 Statutes, is amended to read:
38 631.717 Powers and duties of the association.—
39 (9) The association’s liability for the contractual
40 obligations of the insolvent insurer must shall be as great as,
41 but no greater than, the contractual obligations of the insurer
42 in the absence of such insolvency, unless such obligations are
43 reduced as permitted by subsection (4), but the aggregate
44 liability of the association with respect to one life may shall
45 not exceed the following:
46 (a) For life insurance, $100,000 in net cash surrender and
47 net cash withdrawal values. for life insurance,
48 (b) For deferred annuity contracts, $250,000 in net cash
49 surrender and net cash withdrawal values. for deferred annuity
50 contracts, or
51 (c) For all benefits, $300,000, for all benefits including
52 cash values, except as provided in paragraph (d) with respect to
53 any one life.
54 (d) For basic hospital expense health insurance policies,
55 basic medical-surgical health insurance policies, or major
56 medical expense health insurance policies, $500,000.
58 In no event is shall the association be liable for any penalties
59 or interest.
60 Section 3. Paragraph (a) of subsection (3) of section
61 631.718, Florida Statutes, is amended to read:
62 631.718 Assessments.—
63 (3)(a) The amount of any Class A assessment must shall be
64 determined by the board and may be made on a non-pro rata basis.
65 The assessment may not be credited against future insolvency
66 assessments and may not exceed $500 $250 per member insurer in
67 any one calendar year.
68 Section 4. This act shall take effect July 1, 2017.