Senate Bill sb0280

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    Florida Senate - 2003                                   SB 280

    By the Committee on Banking and Insurance





    311-245A-03

  1                      A bill to be entitled

  2         An act relating to public records and meetings;

  3         reenacting and amending s. 627.311, F.S.,

  4         relating to exemptions from public-records

  5         requirements and public-meetings requirements

  6         for the Florida Automobile Joint Underwriting

  7         Association; designating the Florida Automobile

  8         Joint Underwriting Association as the joint

  9         underwriting plan for apportioning automobile

10         liability among insurers; providing for a board

11         of governors; conforming provisions to the

12         reorganization of agencies that regulate

13         insurers; removing the public-records exemption

14         for matters encompassed in privileged

15         attorney-client communications; clarifying

16         provisions requiring the confidentiality of

17         certain claims files and records of closed

18         meetings; removing the repeal of s.

19         627.311(3)(l), F.S., scheduled under the Open

20         Government Sunset Review Act of 1995; amending

21         ss. 440.51 and 631.912, F.S., relating to the

22         administration of ch. 440, F.S., and the board

23         of directors of the Florida Workers'

24         Compensation Insurance Guaranty Association,

25         Incorporated; conforming provisions to changes

26         made by the act; providing an effective date.

27  

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

29  

30         Section 1.  Notwithstanding the repeal of paragraph (l)

31  of subsection (3) of section 627.311, Florida Statutes,

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 1  scheduled on October 2, 2003, under the Open Government Sunset

 2  Review Act of 1995, section 627.311, Florida Statutes, is

 3  reenacted and amended to read:

 4         627.311  Joint underwriters and joint reinsurers;

 5  public records and public meetings exemptions.--

 6         (1)  Every group, association, or other organization of

 7  insurers which engages in joint underwritings or joint

 8  reinsurance shall be subject to regulation with respect

 9  thereto as herein provided in this section, subject, however,

10  with respect to joint underwriting, to all other provisions of

11  this chapter and, with respect to joint reinsurance, to ss.

12  624.15 and 624.3161.

13         (2)  If the department finds that any activity or

14  practice of any such group, association, or other organization

15  is unfair or unreasonable or otherwise inconsistent with the

16  provisions of this chapter, it may issue a written order

17  specifying in what respects such activity or practice is

18  unfair or unreasonable or otherwise inconsistent with the

19  provisions of this chapter, and requiring the discontinuance

20  of such activity or practice.

21         (3)  The office department may, after consultation with

22  insurers licensed to write automobile insurance in this state,

23  approve a joint underwriting plan for purposes of equitable

24  apportionment or sharing among insurers of automobile

25  liability insurance and other motor vehicle insurance, as an

26  alternate to the plan required in s. 627.351(1). All insurers

27  authorized to write automobile insurance in this state shall

28  subscribe to the plan and participate therein. The plan shall

29  be subject to continuous review by the office, department

30  which may at any time disapprove the entire plan or any part

31  thereof if it determines that conditions have changed since

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 1  prior approval and that in view of the purposes of the plan

 2  changes are warranted. Any disapproval by the office

 3  department shall be subject to the provisions of chapter 120.

 4  The Florida Automobile Joint Underwriting Association is

 5  created under the plan. If adopted, The plan and the

 6  association created under the plan:

 7         (a)  Must be subject to all provisions of s.

 8  627.351(1), except apportionment of applicants.

 9         (b)  May provide for one or more designated insurers,

10  able and willing to provide policy and claims service, to act

11  on behalf of all other insurers to provide insurance for

12  applicants who are in good faith entitled to, but unable to,

13  procure insurance through the voluntary insurance market at

14  standard rates.

15         (c)  Must provide that designated insurers will issue

16  policies of insurance and provide policyholder and claims

17  service on behalf of all insurers for the joint underwriting

18  association.

19         (d)  Must provide for the equitable apportionment among

20  insurers of losses and expenses incurred.

21         (e)  Must provide that the joint underwriting

22  association will operate subject to the supervision and

23  approval of a board of governors consisting of 11 individuals,

24  including 1 who will be elected as chair. Five members of the

25  board must be appointed by the Chief Financial Officer

26  Insurance Commissioner. Two of the Chief Financial Officer's

27  commissioner's appointees must be chosen from the insurance

28  industry. Any board member appointed by the Chief Financial

29  Officer Insurance Commissioner may be removed and replaced by

30  her or him at any time without cause. Six members of the board

31  must be appointed by the participating insurers, two of whom

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 1  must be from the insurance agents' associations.  All board

 2  members, including the chair, must be appointed to serve for

 3  2-year terms beginning annually on a date designated by the

 4  plan.

 5         (f)  Must provide that an agent appointed to a

 6  servicing carrier must be a licensed general lines agent of an

 7  insurer that which is authorized to write automobile liability

 8  and physical damage insurance in the state and that which is

 9  actively writing such coverage in the county in which the

10  agent is located, or the immediately adjoining counties, or an

11  agent who places a volume of other property and casualty

12  insurance in an amount equal to the premium volume placed with

13  the Florida Joint Underwriting Association. The office

14  department may, however, determine that an agent may be

15  appointed to a servicing carrier if, after public hearing, the

16  office department finds that consumers in the agent's

17  operating area would not have adequate and reasonable access

18  to the purchase of automobile insurance if the agent were not

19  appointed to a servicing carrier.

20         (g)  Must make available noncancelable coverage as

21  provided in s. 627.7275(2).

22         (h)  Must provide for the furnishing of a list of

23  insureds and their mailing addresses upon the request of a

24  member of the association or an insurance agent licensed to

25  place business with an association member.  The list must

26  indicate whether the insured is currently receiving a good

27  driver discount from the association. The plan may charge a

28  reasonable fee to cover the cost incurred in providing the

29  list.

30         (i)  Must not provide a renewal credit or discount or

31  any other inducement designed to retain a risk.

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 1         (j)  Must not provide any other good driver credit or

 2  discount that is not actuarially sound.  In addition to other

 3  criteria that the plan may specify, to be eligible for a good

 4  driver credit, an insured must not have any criminal traffic

 5  violations within the most recent 36-month period preceding

 6  the date the discount is received.

 7         (k)  Shall have no liability, and no cause of action of

 8  any nature shall arise against, any member insurer or its

 9  agents or employees, agents or employees of the association,

10  members of the board of governors of the association, or the

11  office department or its representatives, for any action taken

12  by them in the performance of their duties or responsibilities

13  under this subsection.  Such immunity does not apply to

14  actions for or arising out of breach of any contract or

15  agreement pertaining to insurance, or any willful tort.

16         (4)  The Florida Automobile Joint Underwriting

17  Association shall keep:

18         (a)(l)1.  Shall be subject to the public records

19  requirements of chapter 119 and the public meeting

20  requirements of s. 286.011.  However, The following records of

21  the Florida Automobile Joint Underwriting Association are

22  confidential and exempt from s. 119.07(1) and s. 24(a), Art. I

23  of the State Constitution:

24         1.a.  Underwriting files, except that a policyholder or

25  an applicant shall have access to his or her own underwriting

26  files.

27         2.b.  Claims files, until termination of all litigation

28  and settlement of all claims arising out of the same incident,

29  although portions of the claims files may remain exempt, as

30  otherwise provided by law. Confidential and exempt claims

31  files file records may be released to other governmental

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 1  agencies in the furtherance of their duties and

 2  responsibilities. The receiving agency must maintain the

 3  confidential and exempt status of the claim file upon written

 4  request and demonstration of need; such records held by the

 5  receiving agency remain confidential and exempt as provided by

 6  this paragraph.

 7         3.c.  Records obtained or generated by an internal

 8  auditor pursuant to a routine audit, until the audit is

 9  completed or, if the audit is conducted as part of an

10  investigation, until the investigation is closed or ceases to

11  be active. An investigation is considered "active" while the

12  investigation is being conducted with a reasonable, good faith

13  belief that it could lead to the filing of administrative,

14  civil, or criminal proceedings.

15         d.  Matters reasonably encompassed in privileged

16  attorney-client communications.

17         4.e.  Proprietary information licensed to the

18  association under contract when the contract provides for the

19  confidentiality of such proprietary information.

20         5.f.  All information relating to the medical condition

21  or medical status of an association employee which is not

22  relevant to that the employee's capacity to perform his or her

23  duties, except as otherwise provided in this paragraph.

24  Information that which is confidential and exempt includes

25  shall include, but is not limited to, information relating to

26  workers' compensation, insurance benefits, and retirement or

27  disability benefits.

28         6.g.  All records relative to an employee's

29  participation in an employee assistance program designed to

30  assist any employee who has a behavioral or medical disorder,

31  substance abuse problem, or emotional difficulty that which

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 1  affects the employee's job performance, except as otherwise

 2  provided in s. 112.0455(11).

 3         7.h.  Information relating to negotiations for

 4  financing, reinsurance, depopulation, or contractual services,

 5  until the conclusion of the negotiations.

 6         8.i.  Minutes of closed meetings regarding confidential

 7  and exempt underwriting files or confidential and exempt, and

 8  minutes of closed meetings regarding an open claims files,

 9  file until termination of all litigation and settlement of all

10  claims with regard to that claim, except that information

11  otherwise made confidential or exempt by law must be redacted.

12  

13  When an authorized insurer is considering underwriting a risk

14  insured by the association, relevant confidential and exempt

15  underwriting files and confidential and exempt claims files

16  may be released to the insurer if provided the insurer agrees

17  in writing, notarized and under oath, to maintain the

18  confidential and exempt status confidentiality of such files.

19  When a file is transferred to an insurer, that file is no

20  longer a public record because it is not held by an agency

21  subject to the provisions of the public records law. The

22  association may make the following information obtained from

23  confidential and exempt underwriting files and confidential

24  and exempt claims files available to licensed general lines

25  insurance agents:  name, address, and telephone number of the

26  automobile owner or insured; location of the risk; rating

27  information; loss history; and policy type.  The receiving

28  licensed general lines insurance agent must maintain retain

29  the confidential and exempt status confidentiality of the

30  information received.

31  

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 1         (b)2.  Portions of association meetings of the Florida

 2  Automobile Joint Underwriting Association during which

 3  confidential and exempt underwriting files or confidential and

 4  exempt open claims files are discussed are exempt from the

 5  provisions of s. 286.011 and s. 24(b), Art. I of the State

 6  Constitution. All closed portions of association meetings

 7  which are closed to the public shall be recorded by a court

 8  reporter. The court reporter shall record the times of

 9  commencement and termination of the meeting, all discussion

10  and proceedings, the names of all persons present at any time,

11  and the names of all persons speaking. No portion of any

12  closed meeting shall be off the record. Subject to the

13  provisions of this paragraph and s. 119.07(2)(a), the court

14  reporter's notes of any closed meeting shall be retained by

15  the association for a minimum of 5 years. A copy of the

16  transcript, less any confidential and exempt information

17  matters, of any closed meeting during which confidential and

18  exempt claims files are discussed shall become public as to an

19  individual claim file claims after settlement of that the

20  claim.

21  

22  This paragraph is subject to the Open Government Sunset Review

23  Act of 1995 in accordance with s. 119.15, and shall stand

24  repealed on October 2, 2003, unless reviewed and saved from

25  repeal through reenactment by the Legislature.

26         (5)(4)(a)  Effective upon this act becoming a law, the

27  department shall, after consultation with insurers, approve a

28  joint underwriting plan of insurers which shall operate as a

29  nonprofit entity. For the purposes of this subsection, the

30  term "insurer" includes group self-insurance funds authorized

31  by s. 624.4621, commercial self-insurance funds authorized by

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 1  s. 624.462, assessable mutual insurers authorized under s.

 2  628.6011, and insurers licensed to write workers' compensation

 3  and employer's liability insurance in this state. The purpose

 4  of the plan is to provide workers' compensation and employer's

 5  liability insurance to applicants who are required by law to

 6  maintain workers' compensation and employer's liability

 7  insurance and who are in good faith entitled to but who are

 8  unable to purchase such insurance through the voluntary

 9  market. The joint underwriting plan shall issue policies

10  beginning January 1, 1994. The plan must have actuarially

11  sound rates that assure that the plan is self-supporting.

12         (b)  The operation of the plan is subject to the

13  supervision of a 13-member board of governors. The board of

14  governors shall be comprised of:

15         1.  Five of the 20 domestic insurers, as defined in s.

16  624.06(1), having the largest voluntary direct premiums

17  written in this state for workers' compensation and employer's

18  liability insurance, which shall be elected by those 20

19  domestic insurers;

20         2.  Five of the 20 foreign insurers as defined in s.

21  624.06(2) having the largest voluntary direct premiums written

22  in this state for workers' compensation and employer's

23  liability insurance, which shall be elected by those 20

24  foreign insurers;

25         3.  One person, who shall serve as the chair, appointed

26  by the Insurance Commissioner;

27         4.  One person appointed by the largest property and

28  casualty insurance agents' association in this state; and

29         5.  The consumer advocate appointed under s. 627.0613

30  or the consumer advocate's designee.

31  

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 1  Each board member shall serve a 4-year term and may serve

 2  consecutive terms. No board member shall be an insurer which

 3  provides service to the plan or which has an affiliate which

 4  provides services to the plan or which is serviced by a

 5  service company or third-party administrator which provides

 6  services to the plan or which has an affiliate which provides

 7  services to the plan. The minutes, audits, and procedures of

 8  the board of governors are subject to chapter 119.

 9         (c)  The operation of the plan shall be governed by a

10  plan of operation that is prepared at the direction of the

11  board of governors. The plan of operation may be changed at

12  any time by the board of governors or upon request of the

13  department. The plan of operation and all changes thereto are

14  subject to the approval of the department. The plan of

15  operation shall:

16         1.  Authorize the board to engage in the activities

17  necessary to implement this subsection, including, but not

18  limited to, borrowing money.

19         2.  Develop criteria for eligibility for coverage by

20  the plan, including, but not limited to, documented rejection

21  by at least two insurers which reasonably assures that

22  insureds covered under the plan are unable to acquire coverage

23  in the voluntary market. Any insured may voluntarily elect to

24  accept coverage from an insurer for a premium equal to or

25  greater than the plan premium if the insurer writing the

26  coverage adheres to the provisions of s. 627.171.

27         3.  Require notice from the agent to the insured at the

28  time of the application for coverage that the application is

29  for coverage with the plan and that coverage may be available

30  through an insurer, group self-insurers' fund, commercial

31  

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 1  self-insurance fund, or assessable mutual insurer through

 2  another agent at a lower cost.

 3         4.  Establish programs to encourage insurers to provide

 4  coverage to applicants of the plan in the voluntary market and

 5  to insureds of the plan, including, but not limited to:

 6         a.  Establishing procedures for an insurer to use in

 7  notifying the plan of the insurer's desire to provide coverage

 8  to applicants to the plan or existing insureds of the plan and

 9  in describing the types of risks in which the insurer is

10  interested. The description of the desired risks must be on a

11  form developed by the plan.

12         b.  Developing forms and procedures that provide an

13  insurer with the information necessary to determine whether

14  the insurer wants to write particular applicants to the plan

15  or insureds of the plan.

16         c.  Developing procedures for notice to the plan and

17  the applicant to the plan or insured of the plan that an

18  insurer will insure the applicant or the insured of the plan,

19  and notice of the cost of the coverage offered; and developing

20  procedures for the selection of an insuring entity by the

21  applicant or insured of the plan.

22         d.  Provide for a market-assistance plan to assist in

23  the placement of employers. All applications for coverage in

24  the plan received 45 days before the effective date for

25  coverage shall be processed through the market-assistance

26  plan. A market-assistance plan specifically designed to serve

27  the needs of small good policyholders as defined by the board

28  must be finalized by January 1, 1994.

29         5.  Provide for policy and claims services to the

30  insureds of the plan of the nature and quality provided for

31  insureds in the voluntary market.

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 1         6.  Provide for the review of applications for coverage

 2  with the plan for reasonableness and accuracy, using any

 3  available historic information regarding the insured.

 4         7.  Provide for procedures for auditing insureds of the

 5  plan which are based on reasonable business judgment and are

 6  designed to maximize the likelihood that the plan will collect

 7  the appropriate premiums.

 8         8.  Authorize the plan to terminate the coverage of and

 9  refuse future coverage for any insured that submits a

10  fraudulent application to the plan or provides fraudulent or

11  grossly erroneous records to the plan or to any service

12  provider of the plan in conjunction with the activities of the

13  plan.

14         9.  Establish service standards for agents who submit

15  business to the plan.

16         10.  Establish criteria and procedures to prohibit any

17  agent who does not adhere to the established service standards

18  from placing business with the plan or receiving, directly or

19  indirectly, any commissions for business placed with the plan.

20         11.  Provide for the establishment of reasonable safety

21  programs for all insureds in the plan.

22         12.  Authorize the plan to terminate the coverage of

23  and refuse future coverage to any insured who fails to pay

24  premiums or surcharges when due; who, at the time of

25  application, is delinquent in payments of workers'

26  compensation or employer's liability insurance premiums or

27  surcharges owed to an insurer, group self-insurers' fund,

28  commercial self-insurance fund, or assessable mutual insurer

29  licensed to write such coverage in this state; or who refuses

30  to substantially comply with any safety programs recommended

31  by the plan.

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 1         13.  Authorize the board of governors to provide the

 2  services required by the plan through staff employed by the

 3  plan, through reasonably compensated service providers who

 4  contract with the plan to provide services as specified by the

 5  board of governors, or through a combination of employees and

 6  service providers.

 7         14.  Provide for service standards for service

 8  providers, methods of determining adherence to those service

 9  standards, incentives and disincentives for service, and

10  procedures for terminating contracts for service providers

11  that fail to adhere to service standards.

12         15.  Provide procedures for selecting service providers

13  and standards for qualification as a service provider that

14  reasonably assure that any service provider selected will

15  continue to operate as an ongoing concern and is capable of

16  providing the specified services in the manner required.

17         16.  Provide for reasonable accounting and

18  data-reporting practices.

19         17.  Provide for annual review of costs associated with

20  the administration and servicing of the policies issued by the

21  plan to determine alternatives by which costs can be reduced.

22         18.  Authorize the acquisition of such excess insurance

23  or reinsurance as is consistent with the purposes of the plan.

24         19.  Provide for an annual report to the department on

25  a date specified by the department and containing such

26  information as the department reasonably requires.

27         20.  Establish multiple rating plans for various

28  classifications of risk which reflect risk of loss, hazard

29  grade, actual losses, size of premium, and compliance with

30  loss control. At least one of such plans must be a

31  preferred-rating plan to accommodate small-premium

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 1  policyholders with good experience as defined in

 2  sub-subparagraph 22.a.

 3         21.  Establish agent commission schedules.

 4         22.  Establish three subplans as follows:

 5         a.  Subplan "A" must include those insureds whose

 6  annual premium does not exceed $2,500 and who have neither

 7  incurred any lost-time claims nor incurred medical-only claims

 8  exceeding 50 percent of their premium for the immediate 2

 9  years.

10         b.  Subplan "B" must include insureds that are

11  employers identified by the board of governors as high-risk

12  employers due solely to the nature of the operations being

13  performed by those insureds and for whom no market exists in

14  the voluntary market, and whose experience modifications are

15  less than 1.00.

16         c.  Subplan "C" must include all other insureds within

17  the plan.

18         (d)  The plan must be funded through actuarially sound

19  premiums charged to insureds of the plan. The plan may issue

20  assessable policies only to those insureds in subplan "C."

21  Those assessable policies must be clearly identified as

22  assessable by containing, in contrasting color and in not less

23  than 10-point type, the following statements: "This is an

24  assessable policy. If the plan is unable to pay its

25  obligations, policyholders will be required to contribute on a

26  pro rata earned premium basis the money necessary to meet any

27  assessment levied." The plan may issue assessable policies

28  with differing terms and conditions to different groups within

29  the plan when a reasonable basis exists for the

30  differentiation. The plan may offer rating, dividend plans,

31  and other plans to encourage loss prevention programs.

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 1         (e)  The plan shall establish and use its rates and

 2  rating plans, and the plan may establish and use changes in

 3  rating plans at any time, but no more frequently than two

 4  times per any rating class for any calendar year. By December

 5  1, 1993, and December 1 of each year thereafter, the board

 6  shall establish and use actuarially sound rates for use by the

 7  plan to assure that the plan is self-funding while those rates

 8  are in effect. Such rates and rating plans must be filed with

 9  the department within 30 calendar days after their effective

10  dates, and shall be considered a "use and file" filing. Any

11  disapproval by the department must have an effective date that

12  is at least 60 days from the date of disapproval of the rates

13  and rating plan and must have prospective effect only. The

14  plan may not be subject to any order by the department to

15  return to policyholders any portion of the rates disapproved

16  by the department. The department may not disapprove any rates

17  or rating plans unless it demonstrates that such rates and

18  rating plans are excessive, inadequate, or unfairly

19  discriminatory.

20         (f)  No later than June 1 of each year, the plan shall

21  obtain an independent actuarial certification of the results

22  of the operations of the plan for prior years, and shall

23  furnish a copy of the certification to the department. If,

24  after the effective date of the plan, the projected ultimate

25  incurred losses and expenses and dividends for prior years

26  exceed collected premiums, accrued net investment income, and

27  prior assessments for prior years, the certification is

28  subject to review and approval by the department before it

29  becomes final.

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

31  90 days, provide the department with a program to eliminate

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

 2  funded through increased premiums charged to insureds of the

 3  plan for subsequent years, through the use of policyholder

 4  surplus attributable to any year, and through assessments on

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

 6         (h)  Any premium or assessments collected by the plan

 7  in excess of the amount necessary to fund projected ultimate

 8  incurred losses and expenses of the plan and not paid to

 9  insureds of the plan in conjunction with loss prevention or

10  dividend programs shall be retained by the plan for future

11  use.

12         (i)  The decisions of the board of governors do not

13  constitute final agency action and are not subject to chapter

14  120.

15         (j)  Policies for insureds shall be issued by the plan.

16         (k)  The plan created under this subsection is liable

17  only for payment for losses arising under policies issued by

18  the plan with dates of accidents occurring on or after January

19  1, 1994.

20         (l)  Plan losses are the sole and exclusive

21  responsibility of the plan, and payment for such losses must

22  be funded in accordance with this subsection and must not

23  come, directly or indirectly, from insurers or any guaranty

24  association for such insurers.

25         (m)  Each joint underwriting plan or association

26  created under this section is not a state agency, board, or

27  commission. However, for the purposes of s. 199.183(1) only,

28  the joint underwriting plan is a political subdivision of the

29  state and is exempt from the corporate income tax.

30         (n)  Each joint underwriting plan or association may

31  elect to pay premium taxes on the premiums received on its

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 1  behalf or may elect to have the member insurers to whom the

 2  premiums are allocated pay the premium taxes if the member

 3  insurer had written the policy. The joint underwriting plan or

 4  association shall notify the member insurers and the

 5  Department of Revenue by January 15 of each year of its

 6  election for the same year. As used in this paragraph, the

 7  term "premiums received" means the consideration for

 8  insurance, by whatever name called, but does not include any

 9  policy assessment or surcharge received by the joint

10  underwriting association as a result of apportioning losses or

11  deficits of the association pursuant to this section.

12         (o)  Neither the plan nor any member of the board of

13  governors is liable for monetary damages to any person for any

14  statement, vote, decision, or failure to act, regarding the

15  management or policies of the plan, unless:

16         1.  The member breached or failed to perform her or his

17  duties as a member; and

18         2.  The member's breach of, or failure to perform,

19  duties constitutes:

20         a.  A violation of the criminal law, unless the member

21  had reasonable cause to believe her or his conduct was not

22  unlawful. A judgment or other final adjudication against a

23  member in any criminal proceeding for violation of the

24  criminal law estops that member from contesting the fact that

25  her or his breach, or failure to perform, constitutes a

26  violation of the criminal law; but does not estop the member

27  from establishing that she or he had reasonable cause to

28  believe that her or his conduct was lawful or had no

29  reasonable cause to believe that her or his conduct was

30  unlawful;

31  

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    Florida Senate - 2003                                   SB 280
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 1         b.  A transaction from which the member derived an

 2  improper personal benefit, either directly or indirectly; or

 3         c.  Recklessness or any act or omission that was

 4  committed in bad faith or with malicious purpose or in a

 5  manner exhibiting wanton and willful disregard of human

 6  rights, safety, or property. For purposes of this

 7  sub-subparagraph, the term "recklessness" means the acting, or

 8  omission to act, in conscious disregard of a risk:

 9         (I)  Known, or so obvious that it should have been

10  known, to the member; and

11         (II)  Known to the member, or so obvious that it should

12  have been known, to be so great as to make it highly probable

13  that harm would follow from such act or omission.

14         (p)  No insurer shall provide workers' compensation and

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

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

17  surcharges owed to the plan.

18         (6)(5)  As used in this section and ss. 215.555 and

19  627.351, the term "collateral protection insurance" means

20  commercial property insurance of which a creditor is the

21  primary beneficiary and policyholder and which protects or

22  covers an interest of the creditor arising out of a credit

23  transaction secured by real or personal property. Initiation

24  of such coverage is triggered by the mortgagor's failure to

25  maintain insurance coverage as required by the mortgage or

26  other lending document. Collateral protection insurance is not

27  residential coverage.

28         Section 2.  Paragraph (a) of subsection (13) of section

29  440.51, Florida Statutes, is amended to read:

30         440.51  Expenses of administration.--

31         (13)  As used in s. 440.50 and this section, the term:

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 1         (a)  "Plan" means the workers' compensation joint

 2  underwriting plan provided for in s. 627.311(5) s. 627.311(4).

 3         Section 3.  Subsection (3) of section 631.912, Florida

 4  Statutes, is amended to read:

 5         631.912  Board of directors.--

 6         (3)  Effective upon this act becoming a law, the

 7  persons on the board of directors created pursuant to s.

 8  627.311(5)(a) s. 627.311(4)(a) who evidence a willingness to

 9  serve in writing, shall serve as an interim board of directors

10  of the corporation until the initial board of directors has

11  been appointed for the corporation in accordance with the

12  provisions of subsection (1). The interim board of directors

13  shall serve for a period not to exceed 6 months. The initial

14  meeting shall be called by the commissioner within 30 days

15  after this act becomes a law. The interim board of directors

16  shall establish a process for the selection of persons to

17  serve on the board of the Florida Workers' Compensation

18  Insurance Guaranty Association in accordance with the terms of

19  subsection (1).  The board of directors shall adopt an interim

20  plan of operation to effect the merger in s. 631.911 and avoid

21  any interruption of benefit payments to injured workers.  When

22  necessary and upon approval of the chairs of their respective

23  board of directors, the Florida Self-Insurance Fund Guaranty

24  Association and the Florida Insurance Guaranty Association

25  shall provide staff support to the interim board of directors.

26  The board shall submit the interim plan to the commissioner,

27  who shall approve or disapprove the plan within 30 days after

28  receipt.

29         Section 4.  This act shall take effect October 1, 2003.

30  

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Reenacts an exemption from requirements for public
      records and open meetings for the Florida Automobile
 4    Joint Underwriting Association. Removes the repeal of the
      exemption scheduled for October 2, 2003, under the Open
 5    Government Sunset Review Act of 1995. Deletes a
      public-records exemption for matters encompassed in
 6    privileged attorney-client communications.

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