CS/CS/HB 557 Summary

• Defines "assessment year" as a 12-month period beginning on the first day of any calendar quarter (January 1, April 1, July 1, or October 1) as specified by the office

• Revises assessment levy procedures: limits assessments to 2 percent of an insurer's net direct written premiums in any calendar year and requires at least 30 days' written notice before initial payment is due

• Allows insurers to recoup assessments through separate charges on policyholders' premium statements, prohibiting inclusion of these charges in filed and approved rates

• Specifies that emergency assessments are not premium and are not subject to premium tax, fees, or commissions; insurers are not liable for uncollectible emergency assessments

• Removes requirement for insurers to file a final accounting report documenting recoupment and allows emergency assessment payments to be made in 12 monthly installments at the association's option

• Effective date: July 1, 2015