Bill Text: FL S0600 | 2015 | Regular Session | Comm Sub

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Bill Title: Insurance Guaranty Associations

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Introduced - Dead) 2015-04-23 - Laid on Table, companion bill(s) passed, see CS/HB 189 (Ch. 2015-167) [S0600 Detail]

Download: Florida-2015-S0600-Comm_Sub.html

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       Florida Senate - 2015                       CS for CS for SB 600
       
       
        
       By the Committees on Commerce and Tourism; and Banking and
       Insurance; and Senator Richter
       
       
       
       
       577-02330-15                                           2015600c2
    1                        A bill to be entitled                      
    2         An act relating to insurance guaranty associations;
    3         amending s. 625.012, F.S.; revising the definition of
    4         the term “asset” to include Florida Insurance Guaranty
    5         Association assessments, under certain conditions, for
    6         purposes of determining the financial condition of an
    7         insurer; amending ss. 631.717 and 631.737, F.S.;
    8         transferring a provision relating to the obligation of
    9         the Florida Life and Health Insurance Guaranty
   10         Association to pay valid claims under certain
   11         circumstances; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Subsections (15) and (16) of section 625.012,
   16  Florida Statutes, are redesignated as subsections (16) and (17),
   17  respectively, and a new subsection (15) is added to that
   18  section, to read:
   19         625.012 “Assets” defined.—In any determination of the
   20  financial condition of an insurer, there shall be allowed as
   21  “assets” only such assets as are owned by the insurer and which
   22  consist of:
   23         (15)(a) Assessments levied under s. 631.57(3)(a) and (e)
   24  which are paid before policy surcharges are collected and result
   25  in a receivable for policy surcharges to be collected in the
   26  future. This amount, to the extent it is likely that it will be
   27  realized, meets the definition of an admissible asset as
   28  specified in the National Association of Insurance
   29  Commissioners’ Statement of Statutory Accounting Principles No.
   30  4. The asset shall be established and recorded separately from
   31  the liability regardless of whether it is based on a
   32  retrospective or prospective premium-based assessment. If an
   33  insurer is unable to fully recoup the amount of the assessment
   34  because of a reduction in writings or withdrawal from the
   35  market, the amount recorded as an asset shall be reduced to the
   36  amount reasonably expected to be recouped.
   37         (b) Assessments levied as monthly installments under s.
   38  631.57(3)(e)1.c. which are paid after policy surcharges are
   39  collected so that the recognition of assets is based on actual
   40  premium written offset by the obligation to the Florida
   41  Insurance Guaranty Association.
   42         Section 2. Subsection (11) of section 631.717, Florida
   43  Statutes, is amended to read:
   44         631.717 Powers and duties of the association.—
   45         (11) The association is shall not be liable for any civil
   46  action under s. 624.155 arising from any acts alleged to have
   47  been committed by a member insurer before prior to its
   48  liquidation. This subsection does not affect the association’s
   49  obligation to pay valid insurance policy or contract claims if
   50  warranted after its independent de novo review of the policies,
   51  contracts, and claims presented to it, whether domestic or
   52  foreign, after a Florida domestic rehabilitation or a
   53  liquidation.
   54         Section 3. Section 631.737, Florida Statutes, is amended to
   55  read:
   56         631.737 Rescission and review generally.—The association
   57  shall review claims and matters regarding covered policies based
   58  upon the record available to it on and after the date of
   59  liquidation. Notwithstanding any other provision of this part,
   60  in order to allow for orderly claims administration by the
   61  association, entry of a liquidation order by a court of
   62  competent jurisdiction tolls shall be deemed to toll for 1 year
   63  any rescission or noncontestable period allowed by the contract,
   64  the policy, or by law. The association’s obligation is to pay
   65  any valid insurance policy or contract claims, if warranted,
   66  after its independent de novo review of the policies, contracts,
   67  and claims presented to it, whether domestic or foreign,
   68  following a rehabilitation or a liquidation.
   69         Section 4. This act shall take effect July 1, 2015.