Bill Amendment: FL S0836 | 2013 | Regular Session

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: Insurer Solvency

Status: 2013-05-03 - Died in Messages [S0836 Detail]

Download: Florida-2013-S0836-Rules_Committee_Amendment_102538.html

---

       Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. CS for SB 836
       
       
       
       
       
       
                                Barcode 102538                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/22/2013           .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Rules (Simmons) recommended the following:
       
    1         Senate Amendment 
    2  
    3         Delete lines 117 - 177
    4  and insert:
    5  insurer that writes accident and health insurance only.
    6  Effective January 1, 2015, the term also includes a health
    7  maintenance organization that is authorized in this state and
    8  one or more other states, jurisdictions, or countries; and a
    9  prepaid limited health service organization that is authorized
   10  in this state and one or more other states, jurisdictions, or
   11  countries.
   12         (3)(a) A company action level event includes:
   13         1. The filing of a risk-based capital report by an insurer
   14  which indicates that:
   15         a. The insurer’s total adjusted capital is greater than or
   16  equal to its regulatory action level risk-based capital but less
   17  than its company action level risk-based capital; or
   18         b. If a life and health insurer that reports using the life
   19  and health annual statement instructions, the insurer has total
   20  adjusted capital that is greater than or equal to its company
   21  action level risk-based capital, but is less than the product of
   22  its authorized control level risk-based capital and 3.0 2.5, and
   23  has a negative trend;
   24         c. Effective January, 1, 2015, if a life and health or
   25  property and casualty insurer that reports using the health
   26  annual statement instructions, the insurer or organization has
   27  total adjusted capital that is greater than or equal to its
   28  company action level risk-based capital, but is less than the
   29  product of its authorized control level risk-based capital and
   30  3.0, and triggers the trend test determined in accordance with
   31  the trend test calculation included in the Risk-Based Capital
   32  Forecasting and Instructions, Health, updated annually by the
   33  National Association of Insurance Commissioners; or
   34         d. If a property and casualty insurer that reports using
   35  the property and casualty annual statement instructions, the
   36  insurer has total adjusted capital that is greater than or equal
   37  to its company action level risk-based capital, but is less than
   38  the product of its authorized control level risk-based capital
   39  and 3.0, and triggers the trend test determined in accordance
   40  with the trend test calculation included in the Risk-Based
   41  Capital Forecasting and Instructions, Property/Casualty, updated
   42  annually by the National Association of Insurance Commissioners;
   43         2. The notification by the office to the insurer of an
   44  adjusted risk-based capital report that indicates an event in
   45  subparagraph 1., unless the insurer challenges the adjusted
   46  risk-based capital report under subsection (7); or
   47         3. If, under subsection (7), an insurer challenges an
   48  adjusted risk-based capital report that indicates an event in
   49  subparagraph 1., the notification by the office to the insurer
   50  that the office has, after a hearing, rejected the insurer’s
   51  challenge.
   52         (6)
   53         (b) If a mandatory control level event occurs:
   54         1. With respect to a life and health insurer, the office
   55  shall, after due consideration of s. 624.408, and effective
   56  January 1, 2015, ss. 641.225 and 636.045, take any action
   57  necessary to place the insurer under regulatory control,
   58  including any remedy available under chapter 631. A mandatory
   59  control level event is sufficient ground for the department to
   60  be appointed as receiver as provided in chapter 631. The office
   61  may forego taking action for up to 90 days after the mandatory
   62  control level event if the office finds there is a reasonable
   63  expectation that the mandatory control level event may be
   64  eliminated within the 90-day period.
   65         2. With respect to a property and casualty insurer, the
   66  office shall, after due consideration of s. 624.408, take any
   67  action