Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1334
Ì265338=Î265338
LEGISLATIVE ACTION
Senate . House
.
.
.
.
.
—————————————————————————————————————————————————————————————————
—————————————————————————————————————————————————————————————————
The Committee on Banking and Insurance (Rouson) recommended the
following:
1 Senate Amendment (with directory and title amendments)
2
3 Between lines 148 and 149
4 insert:
5 (b) The State Board of Administration shall select an
6 independent consultant to develop a formula for determining the
7 actuarially indicated premium to be paid to the fund. The rate
8 formula must shall specify, for each zip code or other limited
9 geographical area, the amount of premium to be paid by an
10 insurer for each $1,000 of insured value under covered policies
11 in that zip code or other area. In establishing premiums, the
12 board shall consider the coverage elected under paragraph (4)(b)
13 and any factors that tend to enhance the actuarial
14 sophistication of ratemaking for the fund, including
15 deductibles, type of construction, type of coverage provided,
16 relative concentration of risks, and other such factors deemed
17 by the board to be appropriate. Beginning in the 2020-2021
18 contract year, the fund’s formula may provide for a rapid cash
19 build-up factor of up to 25 percent only when the available cash
20 balance as of December 31 of the previous year is less than 70
21 percent of the statutory capacity. For the purpose of
22 calculating the rapid cash build-up factor trigger, the
23 available cash balance may not be reduced by reserves for
24 projected participating insurer reimbursements The formula must
25 provide for a cash build-up factor. For the 2009-2010 contract
26 year, the factor is 5 percent. For the 2010-2011 contract year,
27 the factor is 10 percent. For the 2011-2012 contract year, the
28 factor is 15 percent. For the 2012-2013 contract year, the
29 factor is 20 percent. For the 2013-2014 contract year and
30 thereafter, the factor is 25 percent. The rate formula may
31 provide for a procedure to determine the premiums to be paid by
32 new insurers that begin writing covered policies after the
33 beginning of a contract year, taking into consideration when the
34 insurer starts writing covered policies, the potential exposure
35 of the insurer, the potential exposure of the fund, the
36 administrative costs to the insurer and to the fund, and any
37 other factors deemed appropriate by the board. The formula must
38 be approved by unanimous vote of the board. The board may, at
39 any time, revise the formula pursuant to the procedure provided
40 in this paragraph.
41
42 ====== D I R E C T O R Y C L A U S E A M E N D M E N T ======
43 And the directory clause is amended as follows:
44 Delete lines 97 - 98
45 and insert:
46 Section 1. Paragraph (c) of subsection (2) and paragraph
47 (b) of subsection (5) of section 215.555, Florida Statutes, are
48 amended, and paragraph (f) is
49
50 ================= T I T L E A M E N D M E N T ================
51 And the title is amended as follows:
52 Delete line 6
53 and insert:
54 policies; providing that the fund’s rate formula may
55 provide for a rapid cash build-up factor only if
56 certain conditions are met; specifying a limitation on
57 calculating the trigger for the cash build-up factor;
58 requiring the Office of Insurance Regulation