Insurance Capital Build-Up Incentive Program Bill Passes Legislature; Next Goes To Governor

House Bill 5057 was passed this morning, May 2, 2008 by the Senate (Vote: 40 Yeas / 0 Nays) with no amendments. 

The bill will now be sent to the Governor.

A similar version of HB 5057 language passed this week within SB 2860, also known as the “Homeowner’s Bill of Rights.”

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

 

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