| 1 | A bill to be entitled |
| 2 | An act relating to workers' compensation and employer's |
| 3 | liability insurance; amending s. 627.311, F.S.; deleting a |
| 4 | provision prohibiting an insurer from providing certain |
| 5 | types of insurance to persons or their affiliates if |
| 6 | certain payments to the joint underwriting plan operating |
| 7 | as the Florida Workers' Compensation Joint Underwriting |
| 8 | Association, Inc., are delinquent; providing an effective |
| 9 | date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Paragraphs (t), (u), (v), and (w) of subsection |
| 14 | (5) of section 627.311, Florida Statutes, are amended to read: |
| 15 | 627.311 Joint underwriters and joint reinsurers; public |
| 16 | records and public meetings exemptions.- |
| 17 | (5) |
| 18 | (t) No insurer shall provide workers' compensation and |
| 19 | employer's liability insurance to any person who is delinquent |
| 20 | in the payment of premiums, assessments, penalties, or |
| 21 | surcharges owed to the plan or to any person who is an |
| 22 | affiliated person of a person who is delinquent in the payment |
| 23 | of premiums, assessments, penalties, or surcharges owed to the |
| 24 | plan. For purposes of this paragraph, the term "affiliated |
| 25 | person" of another person means: |
| 26 | 1. The spouse of such other natural person; |
| 27 | 2. Any person who directly or indirectly owns or controls, |
| 28 | or holds with the power to vote, 5 percent or more of the |
| 29 | outstanding voting securities of such other person; |
| 30 | 3. Any person who directly or indirectly owns 5 percent or |
| 31 | more of the outstanding voting securities that are directly or |
| 32 | indirectly owned or controlled, or held with the power to vote, |
| 33 | by such other person; |
| 34 | 4. Any person or group of persons who directly or |
| 35 | indirectly control, are controlled by, or are under common |
| 36 | control with such other person; |
| 37 | 5. Any officer, director, trustee, partner, owner, |
| 38 | manager, joint venturer, or employee, or other person performing |
| 39 | duties similar to persons in those positions, of such other |
| 40 | persons; or |
| 41 | 6. Any person who has an officer, director, trustee, |
| 42 | partner, or joint venturer in common with such other person. |
| 43 | (t)(u) Effective July 1, 2004, the plan is exempt from the |
| 44 | premium tax under s. 624.509 and any assessments under ss. |
| 45 | 440.49 and 440.51. |
| 46 | (u)(v) The Office of Insurance Regulation shall perform a |
| 47 | comprehensive market conduct examination of the plan |
| 48 | periodically to determine compliance with its plan of operation |
| 49 | and internal operating policies and procedures. |
| 50 | (v)(w) Upon dissolution, the assets of the plan shall be |
| 51 | applied first to pay all debts, liabilities, and obligations of |
| 52 | the plan, including the establishment of reasonable reserves for |
| 53 | any contingent liabilities or obligations, and all remaining |
| 54 | assets of the plan shall become property of the state and shall |
| 55 | be deposited in the Workers' Compensation Administration Trust |
| 56 | Fund. However, dissolution may not take effect as long as the |
| 57 | plan has financial obligations outstanding unless adequate |
| 58 | provision has been made for the payment of financial obligations |
| 59 | pursuant to the documents authorizing the financial obligations. |
| 60 | Section 2. This act shall take effect July 1, 2011. |