Bill Text: FL S0500 | 2024 | Regular Session | Introduced

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Bill Title: Surplus Requirements for Residential Property Insurers

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2024-03-08 - Died in Banking and Insurance [S0500 Detail]

Download: Florida-2024-S0500-Introduced.html

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       Florida Senate - 2024                                     SB 500
       
       
        
       By Senator Stewart
       
       
       
       
       
       17-00022-24                                            2024500__
    1                        A bill to be entitled                      
    2         An act relating to surplus requirements for
    3         residential property insurers; amending s. 624.407,
    4         F.S.; increasing the minimum surplus requirement for
    5         certain new insurers transacting residential property
    6         insurance; amending s. 624.408, F.S.; increasing,
    7         during specified intervals, the minimum surplus
    8         requirement for certain current residential property
    9         insurers; providing an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Subsection (1) of section 624.407, Florida
   14  Statutes, is amended to read:
   15         624.407 Surplus required; new insurers.—
   16         (1) To receive authority to transact any one kind or
   17  combinations of kinds of insurance, as defined in part V of this
   18  chapter, an insurer applying for its original certificate of
   19  authority in this state shall possess surplus as to
   20  policyholders at least the greater of:
   21         (a) For a property and casualty insurer, $5 million, or
   22  $2.5 million for any other insurer;
   23         (b) For life insurers, 4 percent of the insurer’s total
   24  liabilities;
   25         (c) For life and health insurers, 4 percent of the
   26  insurer’s total liabilities, plus 6 percent of the insurer’s
   27  liabilities relative to health insurance;
   28         (d) For all insurers other than life insurers and life and
   29  health insurers, 10 percent of the insurer’s total liabilities;
   30         (e) Notwithstanding paragraph (a) or paragraph (d), for a
   31  domestic insurer that transacts residential property insurance
   32  and is:
   33         1. Not a wholly owned subsidiary of an insurer domiciled in
   34  any other state, $20 $15 million.
   35         2. A wholly owned subsidiary of an insurer domiciled in any
   36  other state, $50 million;
   37         (f) Notwithstanding paragraphs (a), (d), and (e), for a
   38  domestic insurer that only transacts limited sinkhole coverage
   39  insurance for personal lines residential property pursuant to s.
   40  627.7151, $7.5 million; or
   41         (g) Notwithstanding paragraphs (a), (d), and (e), for an
   42  insurer that only transacts residential property insurance in
   43  the form of renter’s insurance, tenant’s coverage, cooperative
   44  unit owner insurance, or any combination thereof, $10 million.
   45         Section 2. Paragraphs (f) and (g) of subsection (1) of
   46  section 624.408, Florida Statutes, are amended to read:
   47         624.408 Surplus required; current insurers.—
   48         (1) To maintain a certificate of authority to transact any
   49  one kind or combinations of kinds of insurance, as defined in
   50  part V of this chapter, an insurer in this state must at all
   51  times maintain surplus as to policyholders at least the greater
   52  of:
   53         (f) For residential property insurers not holding a
   54  certificate of authority before July 1, 2011, $20 $15 million.
   55         (g) For residential property insurers holding a certificate
   56  of authority before July 1, 2011, and until June 30, 2016, $5
   57  million; on or after July 1, 2016, and until June 30, 2021, $10
   58  million; on or after July 1, 2021, and until June 30, 2026, $15
   59  million; on or after July 1, 2026, and until June 30, 2031, $20
   60  million. Beginning July 1, 2031, and every 5 years thereafter,
   61  the minimum surplus as to policyholders shall increase by $5
   62  million.
   63  
   64  The office may reduce the surplus requirement in paragraphs (f)
   65  and (g) if the insurer is not writing new business, has premiums
   66  in force of less than $1 million per year in residential
   67  property insurance, or is a mutual insurance company.
   68         Section 3. This act shall take effect July 1, 2024.