House Amends, Passes Insurance Capital Incentive Bill

Apr 9, 2008

House Bill 5057 relating to the Insurance Capital Build-Up Incentive Program was read for a second time today on the House floor. The House approved the bill with one amendment (934747) by Senator Burt Saunders.

Senator Saunders’ amendment states that “Citizens Property Insurance Corporation may not use any amendments made to s. 215.5595, Florida Statutes, by HB 5057 or any transfer of funds authorized by the bill as justification or cause in seeking any rate or assessment increase.”

HB 5057 provides for appropriation of state funds in exchange for surplus notes issued by residential property insurers; revises conditions and requirements for providing funds to insurers; requires commitment by insurers to meet minimum premium-to-surplus writing ratios for residential property insurance and for taking policies out of Citizens Property Insurance Corporation (“Citizens”); authorizes the State Board of Administration (“SBA”) to charge fees for late payments; provides that amendments made by act do not affect terms of surplus notes approved prior to specified date; authorizes the SBA and insurers to renegotiate such terms consistent with such amendments; requires Citizens to transfer funds to General Revenue Fund for appropriation by Legislature for program purposes; requires the SBA to transfer specified funds to Citizens each quarter; prohibits Citizens from using certain statutory changes or authorized transfers of funds as justification or cause to seek any rate or assessment increase.

HB 5057 has been added to the House calendar for third reading.

A copy of HB 5057 and Senator Saunders’ amendment are attached for your review.


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