Insurance Capital Build-Up Incentive Program Bill Passes House 116-1

House Bill 5057 was passed by the House (Vote: 116 Yeas / 1 Nays) on May 1, 2008 after the adoption of a Conference Committee strike-all amendment (296355).  The “Nay” vote came from State Representative Shelley Vana.

HB 5057 relating to the Insurance Capital Build-Up Incentive Program 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; authorizes the Florida 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 SBA and insurers to renegotiate such terms consistent with such amendments; requires Citizens Property Insurance Corporation (“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. Effective Date: July 1, 2008

 

Should you have any questions or comments, please do not hesitate to contact this office.

To unsubscribe from this newsletter, please send an email to ccochran@cftlaw.com.