SENATE AMENDMENT
Bill No. CS for SB 2518
Amendment No. ___ Barcode 540274
CHAMBER ACTION
Senate House
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11 Senator Alexander moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 23, between lines 15 and 16,
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16 insert:
17 Section 13. Subsection (1) of section 631.913, Florida
18 Statutes, is amended to read:
19 631.913 Powers and duties of the corporation.--
20 (1) The corporation is obligated to the extent of the
21 full amount of the covered claims:
22 (a) Existing before the adjudication of insolvency and
23 arising within 30 days after the determination of insolvency;
24 (b) Existing before the policy expiration date if less
25 than 30 days after the determination of insolvency; or
26 (c) Existing before the insured replaces the policy or
27 causes its cancellation, if the insured does so within 30 days
28 after the determination of insolvency.
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30 Notwithstanding such criteria, the corporation's obligation
31 for a covered claim for the return of unearned premium shall
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SENATE AMENDMENT
Bill No. CS for SB 2518
Amendment No. ___ Barcode 540274
1 not exceed $50,000 per policy. In addition, the corporation is
2 not obligated to a policyholder or claimant in an amount in
3 excess of the obligation of the insolvent insurer under the
4 policy from which the claim arises.
5 Section 14. Paragraph (a) of subsection (1) of section
6 631.914, Florida Statutes, is amended to read:
7 631.914 Assessments.--
8 (1)(a) To the extent necessary to secure the funds for
9 the payment of covered claims, and also to pay the reasonable
10 costs to administer the same, the department, upon
11 certification by the board, shall levy assessments on each
12 insurer in the proportion that the insurer's net direct
13 written premiums in this state bears to the total of said net
14 direct written premiums received in this state by all such
15 workers' compensation insurers for the preceding calendar
16 year. Assessments shall be remitted to and administered by
17 the board of directors in the manner specified by the approved
18 plan of operation. The board shall give each insurer so
19 assessed at least 30 days' written notice of the date the
20 assessment is due and payable. Each assessment shall be a
21 uniform percentage applicable to the net direct written
22 premiums of each insurer writing workers' compensation
23 insurance.
24 1. Beginning July 1, 1997, assessments levied against
25 insurers, other than self-insurance funds, shall not exceed in
26 any calendar year more than 2 percent of that insurer's net
27 direct written premiums in this state for workers'
28 compensation insurance during the calendar year next preceding
29 the date of such assessments.
30 2. Beginning July 1, 1997, assessments levied against
31 self-insurance funds shall not exceed in any calendar year
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SENATE AMENDMENT
Bill No. CS for SB 2518
Amendment No. ___ Barcode 540274
1 more than 1.50 percent of that self-insurance fund's net
2 direct written premiums in this state for workers'
3 compensation insurance during the calendar year next preceding
4 the date of such assessments.
5 3. Beginning July 1, 2003, assessments levied against
6 insurers and self-insurance funds pursuant to this paragraph
7 are computed and levied on the basis of the full policy
8 premium value on the net direct premiums written in the state
9 for workers' compensation insurance during the calendar year
10 next preceding the date of the assessment without taking into
11 account any applicable discount or credit for deductibles.
12 Insurers and self-insurance funds must report premiums in
13 compliance with this subparagraph.
14 Section 15. Section 631.924, Florida Statutes, is
15 amended to read:
16 631.924 Stay of proceedings; reopening of default
17 judgments.--All proceedings in which the insolvent insurer or
18 self-insurance fund is a party or is obligated to defend a
19 party in any court or before any quasi-judicial body or
20 administrative board in this state must be stayed for 6
21 months, or such additional period from the date the insolvency
22 is adjudicated, by a court of competent jurisdiction to allow
23 proper defense by the association of all pending causes of
24 action as to any covered claims. The stay may be extended for
25 a period of time greater than 6 months upon proper application
26 to a court of competent jurisdiction. The association, either
27 on its own behalf or on behalf of the insured, may apply to
28 have any judgment, order, decision, verdict, or finding based
29 on the default of the insolvent insurer or self-insurance fund
30 or its failure to defend an insured set aside by the same
31 court or administrator that made the judgment, order,
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SENATE AMENDMENT
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Amendment No. ___ Barcode 540274
1 decision, verdict, or finding and may defend against the claim
2 on the merits. If the association so requests, the stay of
3 proceedings may be shortened or waived.
4 Section 16. Subsection (4) of section 624.406, Florida
5 Statutes, is amended to read:
6 624.406 Combinations of insuring powers, one
7 insurer.--An insurer which otherwise qualifies therefor may be
8 authorized to transact any one kind or combination of kinds of
9 insurance as defined in part V except:
10 (4) A health insurer may also transact excess
11 insurance, specific and aggregate, for self-insurers of a plan
12 of health insurance and multiple-employer welfare arrangements
13 and reinsurance for the medical and lost wages benefits
14 provided under a workers' compensation insurance policy.
15 Section 17. Section 624.603, Florida Statutes, is
16 amended to read:
17 624.603 "Health insurance" defined.--"Health
18 insurance," also known as "disability insurance," is insurance
19 of human beings against bodily injury, disablement, or death
20 by accident or accidental means, or the expense thereof, or
21 against disablement or expense resulting from sickness, and
22 every insurance appertaining thereto. Health insurance does
23 not include workers' compensation coverages, except as
24 provided in s. 624.406(4).
25 Section 18. Subsection (7) of section 631.141, Florida
26 Statutes, is amended to read:
27 631.141 Conduct of delinquency proceeding; domestic
28 and alien insurers.--
29 (7)(a) In connection with a delinquency proceeding,
30 the department may appoint one or more special agents to act
31 for it, and it may employ such counsel, clerks, and assistants
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Amendment No. ___ Barcode 540274
1 as it deems necessary. The compensation of the special
2 agents, counsel, clerks, or assistants and all expenses of
3 taking possession of the insurer and of conducting the
4 proceeding shall be fixed by the receiver, subject to the
5 approval of the court, and shall be paid out of the funds or
6 assets of the insurer. Within the limits of duties imposed
7 upon them, special agents shall possess all the powers given
8 to and, in the exercise of those powers, shall be subject to
9 all duties imposed upon the receiver with respect to such
10 proceeding.
11 (b) In the event that initiation of delinquency
12 proceedings does not result in appointment of the department
13 as receiver, or in the event that the funds or assets of an
14 insurer for which the department is appointed as receiver are
15 insufficient to cover the cost of compensation to special
16 agents, counsel, clerks, or assistants and all expenses of
17 taking, or attempting to take, possession of the insurer, and
18 of conducting the proceeding, there is appropriated, upon
19 approval of the Chief Financial Officer, from the Insurance
20 Regulation Trust Fund to the Division of Rehabilitation and
21 Liquidation a sum that is sufficient to cover the unreimbursed
22 costs.
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24 (Redesignate subsequent sections.)
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27 ================ T I T L E A M E N D M E N T ===============
28 And the title is amended as follows:
29 On page 2, line 7, after the semicolon,
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31 insert:
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SENATE AMENDMENT
Bill No. CS for SB 2518
Amendment No. ___ Barcode 540274
1 amending s. 631.913, F.S.; limiting the
2 obligation of the Florida Workers' Compensation
3 Insurance Guaranty Association, Incorporated
4 for a covered claim for return of unearned
5 premium; amending s. 631.914, F.S.; revising
6 requirements for reporting premium for
7 assessment calculations; amending s. 631.924,
8 F.S.; including insolvent insurers under
9 provisions for a stay of proceedings; amending
10 s. 624.406, F.S.; providing for reinsurance
11 under a workers' compensation insurance policy;
12 amending s. 624.603, F.S.; providing an
13 exception to include workers' compensation
14 coverages under health insurance; amending s.
15 631.141, F.S.; providing for trust funds to be
16 transferred to the receiver in delinquency
17 proceedings to pay for unreimbursed expenses;
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