Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1966
                        Barcode 672480
                            CHAMBER ACTION
              Senate                               House
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       03/21/2006 04:40 PM         .                    
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11  The Committee on Banking and Insurance (Garcia) recommended
12  the following amendment:
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14         Senate Amendment 
15         On page 1, line 28, through
16            page 3, line 2, delete those lines
17  
18  and insert:  
19         (c)  Uses a qualified actuary to determine rates using
20  accepted actuarial principles and annually submits to the
21  office a certification by the actuary that the rates are
22  actuarially sound and are not inadequate, as defined in s.
23  627.062.
24         (d)  Uses a qualified actuary to establish reserves for
25  loss and loss adjustment expenses and annually submits to the
26  office a certification by the actuary that the loss and loss
27  adjustment expense reserves are adequate. If the actuary
28  determines that reserves are not adequate, the fund shall file
29  a remedial plan for increasing the reserves or otherwise
30  addressing the financial condition of the fund, subject to a
31  determination by the office that the fund will operate on an
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    4:27 PM   03/21/06                             s1966b-bi40-j03

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1966 Barcode 672480 1 actuarially sound basis and does not pose a significant risk 2 of insolvency. 3 (e) Maintains a continuing program of excess insurance 4 coverage and reserve evaluation to protect the financial 5 stability of the fund in an amount and manner determined by a 6 qualified actuary. At a minimum, this program must: 7 1. Purchase excess insurance from authorized insurance 8 carriers; and 9 2. Retain a per-loss occurrence that does not exceed 10 $350,000. 11 (f) Submits to the office annually an audited fiscal 12 year-end financial statement by an independent certified 13 public accountant within 6 months after the end of the fiscal 14 year. 15 (g) Has a governing body that is comprised entirely of 16 nonprofit organization officials. 17 (h) Uses knowledgeable persons or business entities to 18 administer or service the fund in the areas of claims 19 administration, claims adjusting, underwriting, risk 20 management, loss control, policy administration, financial 21 audit, and legal. Such persons or business entities must meet 22 all applicable requirements of law for state licensure and 23 must have at least 5 years' experience with commercial 24 self-insurance funds formed under s. 624.462, self-insurance 25 funds formed under s. 624.4662, or domestic insurers. 26 (i) Submits to the office copies of contracts used for 27 its members which clearly establish the liability of each 28 member for the obligations of the fund. 29 (j) Annually submits to the office a certification by 30 the governing body of the fund that, to the best of its 31 knowledge, the requirements of this section are met. 2 4:27 PM 03/21/06 s1966b-bi40-j03
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1966 Barcode 672480 1 (2) As used in this section, the term "qualified 2 actuary" means an actuary that is a member of the Casualty 3 Actuarial Society or the American Academy of Actuaries. 4 (3) A corporation not for profit self-insurance fund 5 that meets the requirements of this section is not: 6 (a) Subject to the premium tax imposed by s. 624.509; 7 (b) An insurer for purposes of participation in, or 8 coverage by, any insurance guaranty association established by 9 chapter 631; or 10 (c) Subject to s. 624.4621 and is not required to file 11 any report with the department under s. 440.38(2)(b) which is 12 uniquely required of group self-insurer funds qualified under 13 s. 624.4621. 14 (4) If any of the requirements of this section are not 15 met, a corporation not for profit self-insurance fund is 16 subject to the requirements of s. 624.4621 if the fund 17 provides only workers' compensation coverage, or is subject to 18 the requirements of ss. 624.460-624.488 if the fund provides 19 coverage for other property, casualty, or surety risks. 20 21 22 23 24 25 26 27 28 29 30 31 3 4:27 PM 03/21/06 s1966b-bi40-j03