Senate Bill 1662

    Florida Senate - 1999                                  SB 1662

    By Senator Horne





    6-1402-99

  1                      A bill to be entitled

  2         An act relating to insurance; amending s.

  3         627.311, F.S.; authorizing the use of

  4         policyholder surplus to fund workers'

  5         compensation joint underwriting plan deficits;

  6         prohibiting insurers from providing workers'

  7         compensation to certain employers; defining the

  8         term "affiliated person," as used in s.

  9         627.311, F.S.; exempting the plan from premium

10         taxation; exempting the plan from assessments

11         under ch. 440, F.S.; providing an effective

12         date.

13

14  Be It Enacted by the Legislature of the State of Florida:

15

16         Section 1.  Paragraphs (g) and (r) of subsection (4) of

17  section 627.311, Florida Statutes, 1998 Supplement, are

18  amended, and a paragraph (s) is added to that subsection to

19  read:

20         627.311  Joint underwriters and joint reinsurers.--

21         (4)

22         (g)  Whenever a deficit exists, the plan shall, within

23  90 days, provide the department with a program to eliminate

24  the deficit within a reasonable time. The deficit may be

25  funded both through increased premiums charged to insureds of

26  the plan for subsequent years through the use of policyholder

27  surplus attributable to any year and through assessments on

28  insureds in the plan if the plan uses assessable policies.

29         (r)  No insurer shall provide workers' compensation and

30  employer's liability insurance to any person who is delinquent

31  in the payment of premiums, assessments, penalties, or

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1999                                  SB 1662
    6-1402-99




  1  surcharges owed to the plan or to any person who is an

  2  affiliated person of a person who is delinquent in the payment

  3  of premiums, assessments, penalties, or surcharges owed to the

  4  plan. For the purposes of this section, the term "affiliated

  5  persons" of another person means:

  6         1.  The spouse of such other person;

  7         2.  Any person who directly or indirectly owns or

  8  controls, or holds the power to vote, 5 percent or more of the

  9  outstanding voting securities of such other persons;

10         3.  Any person 5 percent or more of the outstanding

11  voting securities of which are directly or indirectly owned or

12  controlled, or held with power to vote, by such other person;

13         4.  Any person or group of persons who directly or

14  indirectly control, are controlled by, or are under common

15  control with such other person;

16         5.  Any officer, director, partner, copartner, or

17  employee of such person;

18         6.  Any person who has an officer, director, partner,

19  copartner, or employee in common with such other person.

20         (s)  The plan and any premiums, assessments, penalties,

21  or surcharges of the plan are exempt from premium taxation and

22  are exempt from any assessments under ss. 440.49 and 440.51.

23         Section 2.  This act shall take effect July 1, 1999.

24

25            *****************************************

26                          SENATE SUMMARY

27    Authorizes the use of policyholder surplus to fund
      workers' compensation joint underwriting plan deficits.
28    Prohibits insurers from providing workers' compensation
      to certain specified persons. Defines the term
29    "affiliated person," as used in s. 627.311, F.S. Exempts
      the plan from premium taxation and assessments under ch.
30    440, F.S.

31

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