FL H0695

Amends Florida Statutes section 625.111 to revise unearned premium reserve requirements for domestic title insurers established on or after July 1, 1999.

Title insurers with less than $50 million in surplus must maintain reserves equal to: pre-July 1, 1999 reserves, 30 cents per $1,000 of net retained liability for policies written after July 1, 1999, and additional amounts deemed necessary by a qualified actuary.

Title insurers with $50 million or more in surplus or members of insurance holding company systems with $1 billion or more in surplus and superior financial ratings must maintain minimum reserves of 6.5 percent of direct premiums written and reinsurance premiums assumed, effective January 1, 2014.

Requires all domestic title insurers to obtain annual Statements of Actuarial Opinion from qualified actuaries regarding loss reserves, with additional reserves added if the actuarial opinion exceeds calculated reserves.

Title insurers transferring domicile to Florida must calculate adjusted statutory reserves as if current requirements had applied for 20 years prior to redomestication, with excess reserves added over 6 years or deficiencies released to surplus; law becomes effective July 1, 2016.