House Bill 1187
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2000 HB 1187
By Representative Goode
1 A bill to be entitled
2 An act relating to the workers' compensation
3 joint underwriting plan; amending s. 440.50,
4 F.S.; providing for using funds in the Workers'
5 Compensation Administration Trust Fund for
6 fixed operating expenses of a workers'
7 compensation joint underwriting plan; amending
8 s. 440.51, F.S.; providing definitions;
9 providing plan reporting requirements;
10 requiring the Division of Workers' Compensation
11 of the Department of Labor and Employment
12 Security to transfer certain moneys to the plan
13 under certain circumstances; amending s.
14 627.311, F.S.; providing an additional means of
15 funding a plan deficit; providing an effective
16 date.
17
18 Be It Enacted by the Legislature of the State of Florida:
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20 Section 1. Paragraph (a) of subsection (1) of section
21 440.50, Florida Statutes, is amended to read:
22 440.50 Workers' Compensation Administration Trust
23 Fund.--
24 (1)(a) There is established in the State Treasury a
25 special fund to be known as the "Workers' Compensation
26 Administration Trust Fund" for the purpose of providing for
27 the payment of all expenses in respect to the administration
28 of this chapter, including the vocational rehabilitation of
29 injured employees as provided in s. 440.49 and the payments
30 due under s. 440.15(1)(f), the funding of the fixed operating
31 expenses of the plan, and the funding of the Bureau of
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Florida House of Representatives - 2000 HB 1187
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1 Workers' Compensation Fraud within the Department of
2 Insurance. Such fund shall be administered by the division.
3 Section 2. Subsections (13) and (14) are added to
4 section 440.51, Florida Statutes, to read:
5 440.51 Expenses of administration.--
6 (13) As used in ss. 440.50 and 440.51, the term:
7 (a) "Plan" means the workers' compensation joint
8 underwriting plan provided for in s. 627.311(4).
9 (b) "Fixed operating expenses" means the expenses of
10 the plan, not to exceed $1.5 million, which are directly
11 related to the plan's operation and administration, but which
12 do not vary in direct relationship to the amount of premium
13 written by the plan, and which do not include loss adjustment
14 expenses.
15 (14) Prior to July 1 each year, the plan shall notify
16 the division of the amount of the plan's gross written
17 premiums for the preceding calendar year. Whenever the plan's
18 gross written premiums reported to the division are less than
19 $30 million, the division shall transfer to the plan an amount
20 equal to the plan's fixed operating expenses for the preceding
21 calendar year.
22 Section 3. Paragraph (g) of subsection (4) of section
23 627.311, Florida Statutes, is amended to read:
24 627.311 Joint underwriters and joint reinsurers.--
25 (4)
26 (g) Whenever a deficit exists, the plan shall, within
27 90 days, provide the department with a program to eliminate
28 the deficit within a reasonable time. The deficit may be
29 funded both through increased premiums charged to insureds of
30 the plan for subsequent years, through use of policyholder
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CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2000 HB 1187
154-275-00
1 surplus attributable to any year, and through assessments on
2 insureds in the plan if the plan uses assessable policies.
3 Section 4. This act shall take effect upon becoming a
4 law.
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7 HOUSE SUMMARY
8
Provides for using funds in the Workers' Compensation
9 Administration Trust Fund for fixed operating expenses of
a workers' compensation joint underwriting plan, defines
10 "plan" and "fixed operating expenses," provides plan
reporting requirements, requires the Division of Workers'
11 Compensation of the Department of Labor and Employment
Security to transfer to the plan an amount equal to the
12 plan's fixed operating expenses for the preceding
calendar year whenever the plan's reported gross written
13 premiums are less than $30 million, and provides for
funding a plan deficit through use of policyholder
14 surpluses.
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