Amend CSSB 900 (house committee report) as follows:

(1)  Add the following appropriately numbered SECTION and renumber the subsequent SECTIONS accordingly:

SECTION ____.  Sections 2210.355(b), (c), and (i), Insurance Code, are amended to read as follows:

(b)  In adopting rates under this chapter, the association must:

(2)  consider [following must be considered:

[(1)     the past and prospective loss experience within and outside this state of hazards for which insurance is made available through the plan of operation, if any;

[(2)     expenses of operation, including acquisition costs;

[(3)     a reasonable margin for profit and contingencies;

[(4)]  payment of public security obligations for [Class 1] public securities issued under this chapter, including the additional amount of any debt service coverage determined by the association to be required for the issuance of marketable public securities[; and

[(5)     all other relevant factors, within and outside this state].

(c)  The commissioner must certify that overall rates for coverage under this chapter are actuarially sufficient before the association assesses members under this chapter [Rates must be reasonable, adequate, not unfairly discriminatory, and nonconfiscatory as to any class of insurer].

(i)  The association may establish rating territories and may vary rates among the territories [as provided by this subsection. A rating territory that subdivides a county may be used only if the rate for any subdivision in the county is not more than:

[(A) five percent higher than the rate used by the association in 2009 in any other subdivision in the county;

[(B) six percent higher than the rate used by the association in   2010   in any other subdivision in the county;

[(C) seven percent higher than the rate used by the association in   2011 in any other subdivision in the county; and

[(D) eight percent higher than the rate used by the association in   2012 in any other subdivision in the county.]

(2)  On page 25, between lines 4 and 5, insert the following appropriately numbered subdivisions and renumber the subsequent subdivisions accordingly:

( ) Sections 2210.355(d), (e), (f), and (h);

( ) Section 2210.359, Insurance Code;