CS/CS/CS/HB 467 Summary

• Office of Insurance Regulation shall levy assessments on insurers based on net direct written premiums in proportion to total state premiums, with assessments capped at 2 percent annually for insurers and 1.5 percent for self-insurance funds.

• Insurers must collect policy surcharges at uniform rates on new and renewal policies and report premiums without consideration of deductible discounts or credits.

• Assessments may be collected through installment payments as premiums are written or as upfront payments before surcharges are collected, with insurers reconciling actual amounts due within 120 days after each 12-month assessment period.

• Assessment-related surcharges are not considered premium and are not subject to premium taxes, fees, or commissions; failure to pay surcharges is treated as failure to pay premium.

• Effective July 1, 2016, the bill modifies notification requirements, remittance procedures, and allows the board to exempt, defer, or allow quarterly payment options for insurers facing financial hardship.