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Senate Bill 836 by Senator Latvala passed out of the Appropriations Subcommittee on General Government with a unanimous vote in support and now heads to the Appropriation Committee, its last stop before the Senate floor. Its companion, House Bill 557 by Representative Raburn passed out of the Regulatory Affairs Committee, and now heads to the House floor. The bills would revise the process in which insurers pay and recoup assessments levied against them by the Florida Insurance Guaranty Association (FIGA). The revised procedure would:

  • Create a uniform assessment percentage which would be collected from all policyholders.
  • Allow FIGA to require payment of assessments in advance, prior to the insurer’s recoupment from policyholders, or by monthly installments, or by both.
  • Eliminate rate filings for FIGA assessments.
  • Require insurers to submit a reconciliation report that reflects actual collections compared to initial payments.
  • Require new companies to pay assessments even if they had no prior year premium, by estimating their premium in the actual year of assessment.
  • Allow insurers to obtain credits against future FIGA assessments for collections that are less than the insurer’s initial payment.
  • Allow for payment of excess assessment collections to FIGA.

We have worked with the sponsors and staff at every step along the way to make certain this legislation does not dramatically increase assessments to Florida’s insurers or increase exposure.

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