Bill Amendment: FL S1334 | 2020 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Financial Services
Status: 2020-03-14 - Died in Banking and Insurance [S1334 Detail]
Download: Florida-2020-S1334-Senate_Committee_Amendment_527860_to_Amendment_632742_.html
Bill Title: Financial Services
Status: 2020-03-14 - Died in Banking and Insurance [S1334 Detail]
Download: Florida-2020-S1334-Senate_Committee_Amendment_527860_to_Amendment_632742_.html
Florida Senate - 2020 COMMITTEE AMENDMENT Bill No. SB 1334 Ì5278601Î527860 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Rouson) recommended the following: 1 Senate Amendment to Amendment (632742) (with directory and 2 title amendments) 3 4 Between lines 53 and 54 5 insert: 6 (5) REIMBURSEMENT PREMIUMS.— 7 (b) The State Board of Administration shall select an 8 independent consultant to develop a rate formula for determining 9 the actuarially indicated premium to be paid to the fund. The 10 rate formula mustshallspecify, for each zip code or other 11 limited geographical area, the amount of premium to be paid by 12 an insurer for each $1,000 of insured value under covered 13 policies in that zip code or other area. In establishing 14 premiums, the board shall consider the coverage elected under 15 paragraph (4)(b) and any factors that tend to enhance the 16 actuarial sophistication of ratemaking for the fund, including 17 deductibles, type of construction, type of coverage provided, 18 relative concentration of risks, and other such factors deemed 19 by the board to be appropriate. For the 2020-2021, 2021-2022, 20 and 2022-2023 contract years, the rapid cash build-up factor 21 shall be suspended. Thereafter, the fund’s rate formula may 22 provide for a rapid cash build-up factor of up to 25 percent 23 only when the available cash balance as of December 31 of the 24 previous year is less than 50 percent of the statutory capacity. 25 For the purpose of calculating the rapid cash build-up factor 26 trigger, the available cash balance must not be reduced by more 27 than 50 percent of the estimated reserves for participating 28 insurer’s reimbursementsThe formula must provide for a cash29build-up factor. For the 2009-2010 contract year, the factor is305 percent. For the 2010-2011 contract year, the factor is 1031percent. For the 2011-2012 contract year, the factor is 1532percent. For the 2012-2013 contract year, the factor is 2033percent. For the 2013-2014 contract year and thereafter, the34factor is 25 percent. The rate formula may provide for a 35 procedure to determine the premiums to be paid by new insurers 36 that begin writing covered policies after the beginning of a 37 contract year, taking into consideration when the insurer starts 38 writing covered policies, the potential exposure of the insurer, 39 the potential exposure of the fund, the administrative costs to 40 the insurer and to the fund, and any other factors deemed 41 appropriate by the board. The formula must be approved by 42 unanimous vote of the board. The board may, at any time, revise 43 the formula pursuant to the procedure provided in this 44 paragraph. 45 46 ====== D I R E C T O R Y C L A U S E A M E N D M E N T ====== 47 And the directory clause is amended as follows: 48 Delete lines 5 - 6 49 and insert: 50 Section 1. Paragraph (c) of subsection (2) and paragraph 51 (b) of subsection (5) of section 215.555, Florida Statutes, are 52 amended to read: 53 54 ================= T I T L E A M E N D M E N T ================ 55 And the title is amended as follows: 56 Delete line 1268 57 and insert: 58 policies; requiring the suspension of the rapid cash 59 build-up factor in the fund’s rate formula during 60 specified contract years; providing that, after the 61 suspension, the rate formula may provide for a cash 62 build-up factor of up to a specified percentage only 63 under certain circumstances; specifying a limitation 64 on calculating the trigger for the cash build-up 65 factor; amending s. 319.30, F.S.; revising a certain