Insurer Insolvency Bill (CS/HB 1007) Passed Today Would Increase Required Surplus for Eligible Reinsurers, Revise Financial Strength Rating Requirements
May 2, 2011
Amendments to Section 624.610, F.S. that would revise Florida’s requirements for eligible reinsurers were among provisions within CS/HB 1007 relating to Insurer Insolvency, which was passed by the Florida Legislature today, May 2, 2011. The bill was ordered enrolled and will be sent to Florida Governor Rick Scott for action.
CS/HB 1007 would change the surplus requirement for an eligible reinsurer from $100 million to $250 million, unless Governor Scott vetoes the bill.
In addition, the legislation would require an eligible reinsurer to have a secure financial strength rating from at least two recognized statistical rating organizations deemed acceptable by the Florida Insurance Commissioner as having experience and expertise in rating insurers doing business in Florida, such as Standard & Poors, Moody’s Investors Service, Fitch Ratings, A.M. Best Company and Demotech, which are specifically referenced in the statute as acceptable statistical rating organizations. Current law pertaining to financial strength ratings simply requires two nationally recognized statistical organizations as deemed acceptable by the Commissioner.
Colodny Fass will continue to provide updates on any action to CS/HB 1007.
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