Bill Text: FL S0600 | 2015 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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       Florida Senate - 2015                                     SB 600
       
       
        
       By Senator Richter
       
       
       
       
       
       23-00613-15                                            2015600__
    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; reenacting ss. 624.316(1)(a), 625.031,
   12         625.305(1), 627.828(3)(b), and 629.401(6)(a), F.S., to
   13         incorporate the amendments made to s. 625.012, F.S.,
   14         in references thereto; providing an effective date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Subsections (15) and (16) of section 625.012,
   19  Florida Statutes, are redesignated as subsections (16) and (17),
   20  respectively, and a new subsection (15) is added to that
   21  section, to read:
   22         625.012 “Assets” defined.—In any determination of the
   23  financial condition of an insurer, there shall be allowed as
   24  “assets” only such assets as are owned by the insurer and which
   25  consist of:
   26         (15)(a) Assessments levied under s. 631.57(3)(a) and (c)
   27  which are paid before policy surcharges are collected and result
   28  in a receivable for policy surcharges to be collected in the
   29  future. This amount, to the extent it is likely that it will be
   30  realized, meets the definition of an admissible asset as
   31  specified in the National Association of Insurance
   32  Commissioners’ Statement of Statutory Accounting Principles No.
   33  4. The asset shall be established and recorded separately from
   34  the liability regardless of whether it is based on a
   35  retrospective or prospective premium-based assessment. If an
   36  insurer is unable to fully recoup the amount of the assessment
   37  because of a reduction in writings or withdrawal from the
   38  market, the amount recorded as an asset shall be reduced to the
   39  amount reasonably expected to be recouped.
   40         (b) Assessments levied under s. 631.57(3)(c) that are paid
   41  after policy surcharges are collected so that the recognition of
   42  assets is based on actual premium written offset by the
   43  obligation to the Florida Insurance Guaranty Association.
   44         Section 2. Subsection (11) of section 631.717, Florida
   45  Statutes, is amended to read:
   46         631.717 Powers and duties of the association.—
   47         (11) The association is shall not be liable for any civil
   48  action under s. 624.155 arising from any acts alleged to have
   49  been committed by a member insurer before prior to its
   50  liquidation. This subsection does not affect the association’s
   51  obligation to pay valid insurance policy or contract claims if
   52  warranted after its independent de novo review of the policies,
   53  contracts, and claims presented to it, whether domestic or
   54  foreign, after a Florida domestic rehabilitation or a
   55  liquidation.
   56         Section 3. Section 631.737, Florida Statutes, is amended to
   57  read:
   58         631.737 Rescission and review generally.—The association
   59  shall review claims and matters regarding covered policies based
   60  upon the record available to it on and after the date of
   61  liquidation. Notwithstanding any other provision of this part,
   62  in order to allow for orderly claims administration by the
   63  association, entry of a liquidation order by a court of
   64  competent jurisdiction tolls shall be deemed to toll for 1 year
   65  any rescission or noncontestable period allowed by the contract,
   66  the policy, or by law. The association’s obligation is to pay
   67  any valid insurance policy or contract claims, if warranted,
   68  after its independent de novo review of the policies, contracts,
   69  and claims presented to it, whether domestic or foreign,
   70  following a rehabilitation or a liquidation.
   71         Section 4. Paragraph (a) of subsection (1) of s. 624.316,
   72  s. 625.031, subsection (1) of s. 625.305, paragraph (b) of
   73  subsection (3) of s. 627.828, and paragraph (a) of subsection
   74  (6) of s. 629.401, Florida Statutes, are reenacted for the
   75  purpose of incorporating the amendments made by this act to s.
   76  625.012, Florida Statutes, in references thereto.
   77         Section 5. This act shall take effect July 1, 2015.