Florida Senate - 2019                              CS for SB 626
       
       
        
       By the Committee on Banking and Insurance; and Senator Brandes
       
       
       
       
       
       597-02677-19                                           2019626c1
    1                        A bill to be entitled                      
    2         An act relating to insurer guaranty associations;
    3         amending s. 631.713, F.S.; revising applicability of
    4         part III of ch. 631, F.S., as to health maintenance
    5         organizations, long-term care insurance benefits,
    6         certain health care benefits, and certain structured
    7         settlement annuity benefits; amending s. 631.714,
    8         F.S.; defining the term “long-term care assessment
    9         obligations”; amending s. 631.716, F.S.; revising the
   10         number of members and composition of the Florida Life
   11         and Health Insurance Guaranty Association’s board of
   12         directors; specifying requirements relating to the
   13         director of the Florida Health Maintenance
   14         Organization Consumer Assistance Plan to be confirmed
   15         to the association’s board; specifying rights of the
   16         director or his or her alternate; deleting an obsolete
   17         provision; amending s. 631.717, F.S.; adding the
   18         reissuance of covered policies to a list of duties of
   19         the association relating to insolvent insurers;
   20         providing construction; specifying duties of the
   21         association as to potential long-term care insurer
   22         impairments or insolvencies, sharing information, and
   23         providing assistance to the Florida Health Maintenance
   24         Organization Consumer Assistance Plan’s board of
   25         directors; revising applicability of a specified limit
   26         on the association’s liability for the contractual
   27         obligations of an insolvent insurer; conforming a
   28         provision to changes made by the act; requiring that
   29         the Department of Financial Services, rather than a
   30         receivership court, approve certain alternative
   31         policies or contracts; authorizing the board to file
   32         directly for actuarially justified rate or premium
   33         increases; amending s. 631.718, F.S.; specifying the
   34         calculation and allocation of Class B assessments for
   35         long-term care insurance; specifying a limit on
   36         certain assessments on a member insurer or member
   37         health maintenance organization; conforming provisions
   38         to changes made by the act; amending s. 631.721, F.S.;
   39         deleting an obsolete provision; revising the
   40         requirements of the association’s plan of operation
   41         relating to long-term care insurer impairments and
   42         insolvencies; conforming a cross-reference; creating
   43         s. 631.738, F.S.; providing applicability of certain
   44         provisions to certain member insurers and health
   45         maintenance organizations; amending s. 631.816, F.S.;
   46         adding duties of the board of directors of the Florida
   47         Health Maintenance Organization Consumer Assistance
   48         Plan to conform to changes made by the act; amending
   49         s. 631.818, F.S.; adding to the duties of the plan to
   50         conform to changes made by the act; amending s.
   51         631.819, F.S.; specifying requirements for long-term
   52         care insurer impairment and insolvency assessments for
   53         member health maintenance organizations; requiring the
   54         plan to issue certificates of contribution to member
   55         health maintenance organizations paying certain
   56         assessments; specifying requirements of, and the use
   57         of, such certificates; amending s. 631.820, F.S.;
   58         conforming provisions to changes made by the act;
   59         amending s. 631.821, F.S.; making a technical change;
   60         providing a directive to the Division of Law Revision;
   61         providing an effective date.
   62          
   63  Be It Enacted by the Legislature of the State of Florida:
   64  
   65         Section 1. Subsection (3) of section 631.713, Florida
   66  Statutes, is amended to read:
   67         631.713 Application of part.—
   68         (3) This part does not apply to:
   69         (a) That portion or part of a variable life insurance
   70  contract or variable annuity contract not guaranteed by an
   71  insurer.
   72         (b) That portion or part of any policy or contract under
   73  which the risk is borne by the policyholder.
   74         (c) Any policy or contract or part thereof assumed by the
   75  impaired or insolvent insurer under a contract of reinsurance,
   76  other than reinsurance for which assumption certificates have
   77  been issued.
   78         (d) Fraternal benefit societies as defined in s. 632.601.
   79         (e) Health maintenance organizations, except for
   80  assessments levied pursuant to ss. 631.715(2)(a)1.,
   81  631.718(3)(b), and 631.819(2)(c) for long-term care insurer
   82  impairments or insolvencies insurance.
   83         (f) Dental service plan insurance.
   84         (g) Pharmaceutical service plan insurance.
   85         (h) Optometric service plan insurance.
   86         (i) Ambulance service association insurance.
   87         (j) Preneed funeral merchandise or service contract
   88  insurance.
   89         (k) Prepaid health clinic insurance.
   90         (l) Any annuity contract or group annuity contract that is
   91  not issued to and owned by an individual, except to the extent
   92  of any annuity benefits:
   93         1. Guaranteed directly and not through an intermediary to
   94  an individual by an insurer under such contract or certificate;
   95         2. Under an annuity issued by an insurer under 26 U.S.C. s.
   96  408(b); or
   97         3. Under an annuity issued by an insurer and held by a
   98  custodian or trustee in accordance with 26 U.S.C. s. 408(a).
   99  
  100  This paragraph applies to every insolvency regardless of its
  101  date of inception, and an assessment base may not include
  102  premiums for such excluded products.
  103         (m) Any federal employees’ group policy or contract that,
  104  under 5 U.S.C. s. 8909(f), is prohibited from being subject to
  105  an assessment under s. 631.718.
  106         (n) Except as provided in this paragraph, a portion of a
  107  policy or contract, to the extent that the rate of interest on
  108  which the policy or contract is based, or the interest rate,
  109  crediting rate, or similar factor determined by use of an index
  110  or other external reference stated in the policy or contract
  111  employed in calculating returns or changes in value:
  112         1. Averaged over the period of 4 years immediately
  113  preceding the date on which the member insurer becomes an
  114  impaired or insolvent insurer under this part, whichever is
  115  earlier, exceeds the rate of interest determined by subtracting
  116  2 percentage points from Moody’s Corporate Bond Yield Average
  117  averaged for that same 4-year period or for such lesser period
  118  if the policy or contract was issued less than 4 years before
  119  the member insurer becomes an impaired or insolvent insurer
  120  under this part, whichever is earlier; and
  121         2. On and after the date on which the member insurer
  122  becomes an impaired or insolvent insurer under this part,
  123  whichever is earlier, exceeds the rate of interest determined by
  124  subtracting 3 percentage points from the most current version of
  125  Moody’s Corporate Bond Yield Average.
  126  
  127  This paragraph does not apply to any portion of a policy or
  128  contract, including a rider, which provides long-term care or
  129  any other health insurance benefit.
  130         (o) A portion of a policy or contract to the extent the
  131  policy or contract provides for interest or other changes in
  132  value to be determined by the use of an index or other external
  133  reference stated in the policy or contract, but which has not
  134  been credited to the policy or contract, or as to which the
  135  policy or contract owner’s rights are subject to forfeiture, as
  136  of the date the member insurer becomes an impaired or insolvent
  137  insurer under this part. However, if the interest or change in
  138  value is credited less frequently than annually as determined by
  139  using the procedures defined in the policy or contract, interest
  140  or change in value shall be credited by using the procedure
  141  defined in the policy or contract as if the contractual date of
  142  crediting interest or changing values was the date of impairment
  143  or insolvency, whichever is earlier, and shall not be subject to
  144  forfeiture.
  145         (p) A policy or contract providing any hospital, medical,
  146  prescription drug, or other health care benefits pursuant to
  147  Title XVIII (Medicare), Title XIX (Medicaid), or Title XXI (the
  148  Children’s Health Insurance Program) of the Social Security Act
  149  Medicare part C or part D or any regulations promulgated
  150  thereunder issued pursuant to Medicare Part C or Part D.
  151         (q) Structured settlement annuity benefits to which a
  152  payee, or a beneficiary if the payee is deceased, has
  153  transferred his or her rights in a structured settlement
  154  factoring transaction, as that term is defined in 26 U.S.C. s.
  155  5891(c)(3)(A).
  156         Section 2. Present subsections (7) through (10) of section
  157  631.714, Florida Statutes, are redesignated as subsections (8)
  158  through (11), respectively, and a new subsection (7) is added to
  159  that section, to read:
  160         631.714 Definitions.—As used in this part, the term:
  161         (7) “Long-term care assessment obligations” means the long
  162  term care impairment and long-term care insolvency assessment
  163  obligations of the association which are subject to assessment
  164  pursuant to ss. 631.715(2)(a)1. and 631.718(3)(b) in
  165  coordination with the Florida Health Maintenance Organization
  166  Consumer Assistance Plan, through a methodology provided in the
  167  association’s plan of operation. All obligations other than
  168  long-term care assessment obligations are subject to assessment
  169  exclusively by the association in accordance with s.
  170  631.718(2)(b) and (3)(c), without contribution or involvement of
  171  the Florida Health Maintenance Organization Consumer Assistance
  172  Plan.
  173         Section 3. Subsection (1) of section 631.716, Florida
  174  Statutes, is amended to read:
  175         631.716 Board of directors.—
  176         (1)(a) The board of directors of the association shall have
  177  at least 9, but no more than 11, members. The members shall be
  178  comprised of not fewer than five nor more than nine member
  179  insurers, serving terms as established in the plan of operation
  180  and 1 Florida Health Maintenance Organization Consumer
  181  Assistance Plan director confirmed pursuant to paragraph (b),
  182  who shall be a nonmember-insurer board representative. At all
  183  times, at least 1 one member of the board must shall be a
  184  domestic insurer as defined in s. 624.06(1). The members of the
  185  board who are member insurers shall be elected by member
  186  insurers, subject to the approval of the department.
  187         (b) The board shall confirm, subject to the approval of the
  188  department, the Florida Health Maintenance Organization Consumer
  189  Assistance Plan director. The director confirmed to the board
  190  must be designated by the Florida Health Maintenance
  191  Organization Consumer Assistance Plan’s board of directors to
  192  serve on the board and represent the interests of the Florida
  193  Health Maintenance Organization Consumer Assistance Plan and its
  194  board of directors. An individual serving as a Florida Health
  195  Maintenance Organization Consumer Assistance Plan director on
  196  the board must be a member of the Florida Health Maintenance
  197  Organization Consumer Assistance Plan board of directors. The
  198  Florida Health Maintenance Organization Consumer Assistance Plan
  199  director, or his or her alternate, has the right to be present
  200  at all meetings of the board and has full voting rights on all
  201  issues.
  202         (c) A vacancy on the board shall be filled for the
  203  remaining period of the term by a majority vote of the remaining
  204  board members, subject to the approval of the department. Prior
  205  to the selection of the initial board of directors and the
  206  organization of the association, the department shall give
  207  notice to all member insurers of the time and place of the
  208  organizational meeting. At the organizational meeting, each
  209  member insurer shall be entitled to one vote, in person or by
  210  proxy. If the board of directors is not elected within 60 days
  211  after notice of the organizational meeting, the department may
  212  appoint the initial members.
  213         Section 4. Present subsections (9) through (12) of section
  214  631.717, Florida Statutes, are redesignated as subsections (12)
  215  through (15), respectively, new subsections (9), (10), and (11)
  216  are added to that section, subsections (2) and (3), paragraph
  217  (c) of present subsection (9), and paragraph (g) of present
  218  subsection (12) are amended, and paragraph (h) is added to
  219  present subsection (12) of that section, to read:
  220         631.717 Powers and duties of the association.—
  221         (2) If a domestic insurer is an insolvent insurer, the
  222  association shall, subject to the approval of the department:
  223         (a) Guarantee, assume, reissue, or reinsure, or cause to be
  224  guaranteed, assumed, reissued, or reinsured, the covered
  225  policies of persons referred to in s. 631.713(2); and
  226         (b) Provide moneys, pledges, notes, guarantees, or other
  227  means that are proper and reasonably necessary to implement
  228  paragraph (a) in order to assure payment of the contractual
  229  obligations of the insolvent insurer with regard to persons
  230  referred to in s. 631.713(2).
  231         (3) If a foreign or alien insurer is an insolvent insurer,
  232  the association shall, subject to the approval of the
  233  department:
  234         (a) Guarantee, assume, reissue, or reinsure, or cause to be
  235  guaranteed, assumed, reissued, or reinsured, the covered
  236  policies of residents of this state; and
  237         (b) Provide moneys, pledges, notes, guarantees, or other
  238  means that are proper and reasonably necessary to implement
  239  paragraph (a) in order to assure payment of the contractual
  240  obligations of the insolvent insurer with regard to persons
  241  referred to in s. 631.713(2).
  242  
  243  However, this subsection does not apply when the department has
  244  determined that the foreign or alien insurer’s domiciliary
  245  jurisdiction or state of entry provides, by statute, protection
  246  substantially similar to that provided by this part for
  247  residents of this state.
  248         (9) For purposes of this part, benefits provided by a long
  249  term care rider to a life insurance policy or annuity contract
  250  are considered the same type of benefits as the base life
  251  insurance policy or annuity contract to which the rider relates.
  252         (10) In the event of a potential long-term care insurer
  253  impairment or insolvency, the association shall coordinate its
  254  activities with the Florida Health Maintenance Organization
  255  Consumer Assistance Plan, including the development of any plan
  256  for handling the administration of the impairment or insolvency.
  257         (11) The association shall share information, including
  258  data, with and assist, as applicable, the board of directors of
  259  the Florida Health Maintenance Organization Consumer Assistance
  260  Plan with the administration and collection of member health
  261  maintenance organization assessments for long-term care insurer
  262  impairments or insolvencies pursuant to ss. 631.715(2)(a)1.,
  263  631.718(3)(b), 631.818(2), and 631.819(2)(c).
  264         (12)(9) The association’s liability for the contractual
  265  obligations of the insolvent insurer must be as great as, but no
  266  greater than, the contractual obligations of the insurer in the
  267  absence of such insolvency, unless such obligations are reduced
  268  as permitted by subsection (4), but the aggregate liability of
  269  the association with respect to one life shall not exceed the
  270  following:
  271         (c) For all other benefits, including in long-term care
  272  policies, $300,000, including cash values, except as provided in
  273  paragraph (d).
  274  
  275  In no event is the association liable for any penalties or
  276  interest.
  277         (15)(12)
  278         (g) In carrying out its duties in connection with
  279  guaranteeing, assuming, reissuing, or reinsuring policies or
  280  contracts under subsections (2) and (3), the association may,
  281  subject to approval of the department receivership court, issue
  282  an alternative policy or contract to substitute coverage for a
  283  policy or contract providing that provides an interest rate,
  284  crediting rate, or similar factor that was determined by use of
  285  an index or other external reference stated in the policy or
  286  contract and employed in calculating returns or changes in value
  287  by issuing an alternative policy or contract. In lieu of the
  288  index or other external reference provided for in the original
  289  policy or contract, the alternative policy or contract must
  290  provide for a fixed interest rate, payment of dividends with
  291  minimum guarantees, or a different method for calculating
  292  interest or changes in value. In such case:
  293         1. There is no requirement for evidence of insurability,
  294  waiting period, or other exclusion that would not have applied
  295  under the replaced policy or contract.
  296         2. The alternative policy or contract shall be
  297  substantially similar to the replaced policy or contract in all
  298  other material terms.
  299         (h) In accordance with the terms and conditions of the
  300  policy or contract, the board may directly file for actuarially
  301  justified rate or premium increases for any policy or contract
  302  for which it provides coverage under this part.
  303         Section 5. Paragraph (b) of subsection (3), paragraph (a)
  304  of subsection (5), and subsection (8) of section 631.718,
  305  Florida Statutes, are amended to read:
  306         631.718 Assessments.—
  307         (3)
  308         (b)1. The amount of any Class B assessment, except for
  309  assessments related to long-term care insurance, must shall be
  310  allocated for assessment purposes among the accounts pursuant to
  311  an allocation formula, which may be based on the premiums or
  312  reserves of the impaired or insolvent insurer.
  313         2. The amount of the Class B assessment for long-term care
  314  insurance written by the impaired or insolvent insurer must be
  315  allocated according to a methodology included in the plan of
  316  operation and approved by the department. The methodology must
  317  provide for 50 percent of the assessment to be allocated to
  318  accident and health member insurers and 50 percent to be
  319  allocated to life and annuity member insurers.
  320         3. For the purposes of the methodology outlined in
  321  subparagraph 2. and included in the plan of operation, the
  322  accident and health member insurers’ share of the assessment
  323  must be calculated by including the assessable premiums of
  324  member health maintenance organizations of the Florida Health
  325  Maintenance Organization Consumer Assistance Plan.
  326         (5)(a)1. The total of all assessments upon a member insurer
  327  for each account may not in any one calendar year exceed 1
  328  percent of the sum of the insurer’s premiums written in this
  329  state regarding business covered by the account received during
  330  the 3 calendar years preceding the year in which the assessment
  331  is made, divided by three. If premium information for the 3-year
  332  period is not reasonably available for each member insurer, the
  333  association may use any reasonably available premium
  334  information.
  335         2. For long-term care insurer impairments and insolvencies
  336  only, the total assessments upon a member insurer or member
  337  health maintenance organization of the Florida Health
  338  Maintenance Organization Consumer Assistance Plan may not, in
  339  any one calendar year, exceed 0.5 percent of the sum of the
  340  member insurer or member health maintenance organization’s
  341  premiums written in this state regarding business covered by the
  342  account received during the calendar year preceding the year in
  343  which the assessment is made. If premium information is not
  344  reasonably available for each member insurer or member health
  345  maintenance organization of the Florida Health Maintenance
  346  Organization Consumer Assistance Plan, the association or the
  347  Florida Health Maintenance Organization Consumer Assistance Plan
  348  may use any reasonably available premium information.
  349         (8) The association shall issue to each member insurer
  350  paying an assessment under this part, other than a Class A
  351  assessment, a certificate of contribution, in a form prescribed
  352  by the department, for the amount of the assessment so paid. All
  353  outstanding certificates are of equal dignity and priority
  354  without reference to amounts or dates of issue. A certificate of
  355  contribution may be shown by the insurer in its financial
  356  statement as an asset in such form and for such amount, if any,
  357  and period of time as the department approves. However, any
  358  amount offset pursuant to s. 631.72 may not be shown as an asset
  359  of the insurer on any of its financial statements.
  360         Section 6. Paragraph (b) of subsection (1), paragraph (f)
  361  of subsection (3), and subsection (4) of section 631.721,
  362  Florida Statutes, are amended to read:
  363         631.721 Plan of operation.—
  364         (1)
  365         (b) If the association fails to submit a suitable proposed
  366  plan of operation within 180 days following October 1, 1979, or
  367  If at any time thereafter the association fails to submit
  368  suitable amendments to the plan, the department shall, after
  369  notice and hearing, adopt such reasonable rules as are necessary
  370  to effectuate the provisions of this part. Such rules shall
  371  continue in force until modified by the department or superseded
  372  by a proposed plan submitted by the association and approved by
  373  the department.
  374         (3) The plan of operation shall, in addition to
  375  requirements enumerated elsewhere in this part:
  376         (f) Establish any additional procedures for assessments
  377  under s. 631.718, including procedures to share assessment
  378  information, including data, with and assist, as applicable, the
  379  board of directors of the Florida Health Maintenance
  380  Organization Consumer Assistance Plan with the administration,
  381  collection, and deposit of member health maintenance
  382  organization assessments for long-term care insurer impairments
  383  and insolvencies into the health account established under s.
  384  631.715.
  385         (4) The plan of operation may provide that any or all
  386  powers and duties of the association, except those under ss.
  387  631.717(13)(c) and 631.718 ss. 631.717(10)(c) and 631.718, are
  388  delegated to a corporation, association, or other organization
  389  which performs or will perform functions similar to those of
  390  this association, or its equivalent, in two or more states. Such
  391  a corporation, association, or organization shall be reimbursed
  392  for any payments made on behalf of the association and shall be
  393  paid for its performance of any function of the association. A
  394  delegation under this subsection shall take effect only with the
  395  approval of both the board of directors and the department and
  396  may be made only to a corporation, association, or organization
  397  which extends protection not substantially less favorable and
  398  effective than that provided by this part.
  399         Section 7. Section 631.738, Florida Statutes, is created to
  400  read:
  401         631.738Applicability as to certain member insurers and
  402  health maintenance organizations.The provisions of this part
  403  which relate to long-term care assessment obligations do not
  404  apply to:
  405         (1)Any member insurer or health maintenance organization
  406  that, on or before the effective date of this act, has been
  407  adjudged insolvent by a court of competent jurisdiction or has
  408  been determined by the department or by the office to be
  409  impaired.
  410         (2)Any nonprofit health maintenance organization that
  411  operates only in this state and whose statutory capital and
  412  surplus is less than $200 million as of December 31 of the year
  413  preceding the year in which the assessment is made.
  414         Section 8. Subsection (7) is added to section 631.816,
  415  Florida Statutes, to read:
  416         631.816 Board of directors.—
  417         (7) Subject to the approval of the department, the board
  418  shall designate one representative to serve as a member of the
  419  board of directors of the Florida Life and Health Insurance
  420  Guaranty Association pursuant to s. 631.716(1). The
  421  representative, or his or her alternate, has the right to be
  422  present during all meetings of the association board of
  423  directors and shall have full voting rights.
  424         Section 9. Present subsections (2) through (6) of section
  425  631.818, Florida Statutes, are redesignated as subsections (3)
  426  through (7), respectively, a new subsection (2) is added to that
  427  section, present subsection (4) is amended, present paragraph
  428  (f) of present subsection (6) is redesignated as paragraph (g),
  429  and a new paragraph (f) is added to that subsection, to read:
  430         631.818 Powers and duties of the plan.—
  431         (2) In the event of a long-term care insurer impairment or
  432  insolvency, pursuant to s. 631.819(2)(c), the plan shall:
  433         (a)Collect and transmit all information requested by the
  434  Florida Life and Health Insurance Guaranty Association for the
  435  association to determine the appropriate assessment base of the
  436  health insurance account pursuant to ss. 631.715(2)(a)1. and
  437  631.718(3)(b).
  438         (b)Levy and collect assessments from HMOs.
  439         (c)Coordinate the administration and collection of member
  440  HMO assessments for long-term care insurer impairments and
  441  insolvencies with the Florida Life and Health Insurance Guaranty
  442  Association.
  443         (5)(4) The plan may render assistance and advice to the
  444  department, at the department’s request, concerning
  445  rehabilitation, payment of claims, continuance of coverage, or
  446  the performance of other contractual obligations of any HMO
  447  subject to a delinquency proceeding or a proceeding under s.
  448  624.90.
  449         (7)(6) The plan may:
  450         (f) In the event of a long-term care insurer impairment or
  451  insolvency, coordinate with the Florida Life and Health
  452  Insurance Guaranty Association to carry out the responsibilities
  453  of the association for the limited purpose of the long-term care
  454  insurer impairment or insolvency, including the development of
  455  any plan for handling the administration of the impairment or
  456  insolvency.
  457         Section 10. Subsections (1) and (3) of section 631.819,
  458  Florida Statutes, are amended, paragraph (c) is added to
  459  subsection (2), and subsection (6) is added to that section, to
  460  read:
  461         631.819 Assessments.—
  462         (1) For the purposes of providing the funds necessary to
  463  carry out the powers and duties of the plan, the board of
  464  directors shall assess the member HMOs at such time and for such
  465  amounts as the board finds necessary. Assessments shall be due
  466  not less than 30 days after written notice to the member HMOs
  467  insurers.
  468         (2) Assessments for funds to meet the requirements of the
  469  plan with respect to an insolvent HMO shall not be made until
  470  necessary to implement the purposes of this part. In order to
  471  carry out its duties and powers under this part, upon the
  472  insolvency of an HMO, the plan shall levy and collect
  473  assessments as follows:
  474         (c) For the purposes of long-term care insurer impairment
  475  and insolvency assessments under s. 631.718(3)(b), member HMOs
  476  must be assessed in the same manner as member insurers of the
  477  Florida Life and Health Insurance Guaranty Association under
  478  part III of this chapter. Long-term care insurer impairment and
  479  insolvency assessments must be levied and collected by the plan
  480  pursuant to this part, deposited into the health insurance
  481  account established under s. 631.715, and used solely for long
  482  term care insurer impairment or insolvency obligations.
  483  Assessments collected from member HMOs are considered part of
  484  and satisfy the obligations of the health insurance account
  485  under ss. 631.715(2)(a)1. and 631.718(3)(b).
  486         (3) All assessments against HMOs, including long-term care
  487  insurer impairment and insolvency assessments, must shall be
  488  levied as a percentage of annual earned premium revenue for non
  489  Medicare and non-Medicaid contracts. In no event may the plan
  490  assess in any calendar year more than 0.5 percent of each HMO’s
  491  annual earned premium revenue for non-Medicare and non-Medicaid
  492  contracts.
  493         (6)The plan shall issue, in a form prescribed by the
  494  department, a certificate of contribution to each member HMO
  495  paying a long-term care insurer impairment or insolvency
  496  assessment under this part for the amount of the assessment so
  497  paid. All outstanding certificates are of equal dignity and
  498  priority without reference to amounts or dates of issue. A
  499  certificate of contribution may be shown by the member HMO in
  500  its financial statement as an asset in such form and for such
  501  amount and period of time as the department approves. However,
  502  any amount offset pursuant to s. 631.828 may not be shown as an
  503  asset of the member HMO on any of its financial statements.
  504         Section 11. Paragraph (f) of subsection (3) and paragraph
  505  (a) of subsection (4) of section 631.820, Florida Statutes, are
  506  amended to read:
  507         631.820 Plan of operation.—
  508         (3) The plan of operation shall, in addition to
  509  requirements enumerated elsewhere in this part:
  510         (f) Establish any additional procedures for assessments
  511  under this part, including procedures to coordinate the
  512  administration and collection of member HMO assessments for
  513  long-term care insurer impairments and insolvencies with the
  514  board of directors of the Florida Life and Health Insurance
  515  Guaranty Association.
  516         (4)(a) The plan of operation may provide that any or all
  517  powers and duties of the plan, except those under ss.
  518  631.818(7)(b) and (c) and 631.819 ss. 631.818(6)(b) and (c) and
  519  631.819, are delegated to an administrator that which may be a
  520  corporation, association, or other organization that which
  521  performs or will perform functions similar to those of this
  522  plan, or its equivalent.
  523         Section 12. Subsection (2) of section 631.821, Florida
  524  Statutes, is amended to read:
  525         631.821 Powers and duties of the department.—
  526         (2) Any action of the board of directors of the plan may be
  527  appealed to the office by any member HMO if such appeal is taken
  528  within 21 days of the action being appealed; however, the HMO
  529  must comply with such action pending exhaustion of appeal under
  530  s. 631.818(2). Any appeal shall be promptly determined by the
  531  office, and final action or order of the office shall be subject
  532  to judicial review in a court of competent jurisdiction.
  533         Section 13. The Division of Law Revision is directed to
  534  replace the phrase “the effective date of this act” wherever it
  535  occurs in this act with the date this act becomes a law.
  536         Section 14. This act shall take effect upon becoming a law.