House Bill 0311

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







    Florida House of Representatives - 2000                 HB 311

        By Representative Waters






  1                      A bill to be entitled

  2         An act relating to industrial insured captive

  3         insurers; amending s. 628.903, F.S.; revising a

  4         definition; providing additional requirements;

  5         providing an effective date.

  6

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

  8

  9         Section 1.  Section 628.903, Florida Statutes, is

10  amended to read:

11         628.903  "Industrial insured captive insurer"

12  defined.--For purposes of this part:

13         (1)  An "industrial insured" means an insured which:

14         (a)  Has gross assets in excess of $10 $50 million and;

15         (b)  procures insurance through the use of a full-time

16  employee of the insured who acts as an insurance manager or

17  buyer or through the services of a person licensed as a

18  property and casualty insurance agent, broker, or consultant

19  in such person's state of domicile.;

20         (b)(c)  Has at least 25 100 full-time employees.; and

21         (c)(d)  Has Pays annual aggregate premiums for all

22  insurance risks that total of at least $100,000 $200,000 for

23  each line of insurance purchased from the industrial insured

24  captive insurer or at least $75,000, with respect to any line

25  of coverage excess of at least $25 million in the annual

26  aggregate.  The purchase of umbrella or general liability

27  coverage excess of $25 million in the annual aggregate shall

28  be deemed to be the purchase of a single line of insurance.

29         (2)  An "industrial insured captive insurer" is a

30  captive insurer that:

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    Florida House of Representatives - 2000                 HB 311

    722-114-00






  1         (a)  Has as its stockholders or members only industrial

  2  insureds that are reinsured pursuant to subparagraph (b)2. or

  3  insured by the industrial insured captive insurer, or has as

  4  its sole stockholder a corporation, which corporation's sole

  5  stockholders are industrial insureds that are reinsured

  6  pursuant to subparagraph (b)2. or insured by the industrial

  7  insured captive insurer.; and

  8         (b)1.  Provides insurance only to the industrial

  9  insureds that are its stockholders or members, and affiliates

10  thereof, or to the stockholders, and affiliates thereof, of

11  its parent corporation; or

12         2.  Provides reinsurance to insurers only on risks

13  written by such insurers for the industrial insureds who are

14  the stockholders or members, and affiliates thereof, of the

15  industrial insured captive insurer, or the stockholders, and

16  affiliates thereof, of the parent corporation of the

17  industrial insured captive insurer.

18         (c)  Possesses and maintains unimpaired paid-in capital

19  of at least $5 million and unimpaired surplus of at least $15

20  million.

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22  For the purposes of this paragraph (b), the term "affiliate"

23  means a person that directly, or indirectly through one or

24  more intermediaries, controls, is controlled by, or is under

25  common control with one or more of the stockholders or members

26  of the industrial insured captive insurer or one or more of

27  the stockholders of the parent corporation of the industrial

28  insured captive insurer.

29         Section 2.  This act shall take effect upon becoming a

30  law.

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    Florida House of Representatives - 2000                 HB 311

    722-114-00






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  2                          HOUSE SUMMARY

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      Revises the definition of industrial insured captive
  4    insurer to change specified criteria and requirements.
      See bill for details.
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