Bill Text: FL S0814 | 2017 | Regular Session | Comm Sub

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Bill Title: Florida Life and Health Insurance Guaranty Association

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2017-05-03 - Laid on Table, companion bill(s) passed, see CS/HB 307 (Ch. 2017-131) [S0814 Detail]

Download: Florida-2017-S0814-Comm_Sub.html

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       Florida Senate - 2017                              CS for SB 814
       
       
        
       By the Committee on Appropriations; and Senator Broxson
       
       
       
       
       
       576-04383-17                                           2017814c1
    1                        A bill to be entitled                      
    2         An act relating to the Florida Life and Health
    3         Insurance Guaranty Association; amending s. 631.713,
    4         F.S.; revising applicability of the Florida Life and
    5         Health Insurance Guaranty Association Act as to
    6         specified annuity contracts; amending s. 631.717,
    7         F.S.; revising the association’s maximum aggregate
    8         liability for the contractual obligations of an
    9         insolvent insurer with respect to one life; specifying
   10         the association’s maximum liability as to certain
   11         health insurance policies beginning on a specified
   12         date; providing an effective date.
   13          
   14  Be It Enacted by the Legislature of the State of Florida:
   15  
   16         Section 1. Paragraph (l) of subsection (3) of section
   17  631.713, Florida Statutes, is amended to read:
   18         631.713 Application of part.—
   19         (3) This part does not apply to:
   20         (l) Any annuity contract or group annuity contract that is
   21  not issued to and owned by an individual, except to the extent
   22  of any annuity benefits:
   23         1. Guaranteed directly and not through an intermediary to
   24  an individual by an insurer under such contract or certificate;.
   25         2. Under an annuity issued by an insurer under 26 U.S.C. s.
   26  408(b); or
   27         3. Under an annuity issued by an insurer and held by a
   28  custodian or trustee in accordance with 26 U.S.C. s. 408(a).
   29  
   30  This paragraph applies to every insolvency regardless of its
   31  date of inception, and an assessment base may not include
   32  premiums for such excluded products.
   33         Section 2. Subsection (9) of section 631.717, Florida
   34  Statutes, is amended to read:
   35         631.717 Powers and duties of the association.—
   36         (9) The association’s liability for the contractual
   37  obligations of the insolvent insurer must shall be as great as,
   38  but no greater than, the contractual obligations of the insurer
   39  in the absence of such insolvency, unless such obligations are
   40  reduced as permitted by subsection (4), but the aggregate
   41  liability of the association with respect to one life may shall
   42  not exceed the following:
   43         (a) For life insurance, $100,000 in net cash surrender and
   44  net cash withdrawal values. for life insurance,
   45         (b) For deferred annuity contracts, $250,000 in net cash
   46  surrender and net cash withdrawal values. for deferred annuity
   47  contracts, or
   48         (c) For all benefits, $300,000, for all benefits including
   49  cash values, except as provided in paragraph (d) with respect to
   50  any one life.
   51         (d) Effective January 1, 2020, for basic hospital expense
   52  health insurance policies, basic medical-surgical health
   53  insurance policies, or major medical expense health insurance
   54  policies, but not including long-term care policies, $500,000.
   55  
   56  In no event is shall the association be liable for any penalties
   57  or interest.
   58         Section 3. This act shall take effect July 1, 2017.