House Bill 0311er

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    2000 Legislature                    CS/HB 311, First Engrossed



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  2         An act relating to industrial insured captive

  3         insurers; amending s. 628.903, F.S.; specifying

  4         requirements for industrial insureds of an

  5         industrial insured captive insurer; providing

  6         an additional requirement for industrial

  7         insured captive insurers; providing an

  8         effective date.

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

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12         Section 1.  Section 628.903, Florida Statutes, is

13  amended to read:

14         628.903  "Industrial insured captive insurer"

15  defined.--For purposes of this part:

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

17         (a)  Has gross assets in excess of $50 million;

18         (b)  Procures insurance through the use of a full-time

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

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

21  property and casualty insurance agent, broker, or consultant

22  in such person's state of domicile;

23         (c)  Has at least 100 full-time employees; and

24         (d)  Pays annual premiums of at least $200,000 for each

25  line of insurance purchased from the industrial insured

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

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

28  aggregate.  The purchase of umbrella or general liability

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

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

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    ENROLLED

    2000 Legislature                    CS/HB 311, First Engrossed



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

  2  captive insurer that:

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

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

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

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

  7  stockholders are industrial insureds that are reinsured

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

  9  insured captive insurer; and

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

11  insureds that are its stockholders or members, and affiliates

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

13  its parent corporation; or

14         2.  Provides reinsurance to insurers only on risks

15  written by such insurers for the industrial insureds who are

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

17  industrial insured captive insurer, or the stockholders, and

18  affiliates thereof, of the parent corporation of the

19  industrial insured captive insurer; and

20         (c)  Maintains unimpaired capital and surplus of at

21  least $20 million.

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23  For the purposes of this paragraph, the term "affiliate" means

24  a person that directly, or indirectly through one or more

25  intermediaries, controls, is controlled by, or is under common

26  control with one or more of the stockholders or members of the

27  industrial insured captive insurer or one or more of the

28  stockholders of the parent corporation of the industrial

29  insured captive insurer.

30         (3)  Each industrial insured of an industrial insured

31  captive insurer licensed in this state prior to December 31,


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    ENROLLED

    2000 Legislature                    CS/HB 311, First Engrossed



  1  1999, or any subsidiary formed by the licensed insurer after

  2  December 31, 1999, shall have:

  3         (a)  Gross assets in excess of $10 million and procure

  4  insurance through the use of a full-time employee of the

  5  insured who acts as an insurance manager or buyer or through

  6  the services of a person licensed as a property and casualty

  7  insurance agent, broker, or consultant in such person's state

  8  of domicile.

  9         (b)  At least 25 full-time employees.

10         (c)  Annual aggregate premiums for all insurance risks

11  that total at least $100,000.

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

13  law.

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