HB 0693 2003
1	CHAMBER ACTION
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6	The Committee on Insurance recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to the Florida Workers’ Compensation
12	Insurance Guaranty Association, Incorporated; amending s.
13	631.913, F.S.; limiting the corporation’s obligation for a
14	covered claim for return of unearned premium; amending s.
15	631.914, F.S.; revising requirements for reporting premium
16	for assessment calculations; amending s. 631.924, F.S.;
17	including insolvent insurers under provisions for a stay
18	of proceedings; providing an effective date.
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20	Be It Enacted by the Legislature of the State of Florida:
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22	Section 1. Subsection (1) of section 631.913, Florida
23	Statutes, is amended to read:
24	631.913 Powers and duties of the corporation.--
25	(1) The corporation is obligated to the extent of the full
26	amount of the covered claims:
27	(a) Existing before the adjudication of insolvency and
28	arising within 30 days after the determination of insolvency;
29	(b) Existing before the policy expiration date if less
30	than 30 days after the determination of insolvency; or
31	(c) Existing before the insured replaces the policy or
32	causes its cancellation, if the insured does so within 30 days
33	after the determination of insolvency.
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35	Notwithstanding such criteria, the corporation’s obligation for
36	a covered claim for the return of unearned premium shall not
37	exceed $50,000 per policy. In addition,the corporation is not
38	obligated to a policyholder or claimant in an amount in excess
39	of the obligation of the insolvent insurer under the policy from
40	which the claim arises.
41	Section 2. Paragraph (a) of subsection (1) of section
42	631.914, Florida Statutes, is amended to read:
43	631.914 Assessments.--
44	(1)(a) To the extent necessary to secure the funds for the
45	payment of covered claims, and also to pay the reasonable costs
46	to administer the same, the department, upon certification by
47	the board, shall levy assessments on each insurer in the
48	proportion that the insurer's net direct written premiums in
49	this state bears to the total of said net direct written
50	premiums received in this state by all such workers'
51	compensation insurers for the preceding calendar year.
52	Assessments shall be remitted to and administered by the board
53	of directors in the manner specified by the approved plan of
54	operation. The board shall give each insurer so assessed at
55	least 30 days' written notice of the date the assessment is due
56	and payable. Each assessment shall be a uniform percentage
57	applicable to the net direct written premiums of each insurer
58	writing workers' compensation insurance.
59	1. Beginning July 1, 1997, assessments levied against
60	insurers, other than self-insurance funds, shall not exceed in
61	any calendar year more than 2 percent of that insurer's net
62	direct written premiums in this state for workers' compensation
63	insurance during the calendar year next preceding the date of
64	such assessments.
65	2. Beginning July 1, 1997, assessments levied against
66	self-insurance funds shall not exceed in any calendar year more
67	than 1.50 percent of that self-insurance fund's net direct
68	written premiums in this state for workers' compensation
69	insurance during the calendar year next preceding the date of
70	such assessments.
71	3. Beginning July 1, 2003, assessments levied against
72	insurers and self-insurance funds pursuant to this paragraph
73	shall be computed and levied on the basis of the full policy
74	premium value on the net direct premiums written in this state
75	for workers’ compensation insurance during the calendar year
76	next preceding the date of the assessment without taking into
77	account any applicable discount or credit for deductibles.
78	Insurers and self-insurance funds shall report premiums in
79	compliance with this subparagraph.
80	Section 3. Section 631.924, Florida Statutes, is amended
81	to read:
82	631.924 Stay of proceedings; reopening of default
83	judgments.--All proceedings in which the insolvent insurer or
84	self-insurance fund is a party or is obligated to defend a party
85	in any court or before any quasi-judicial body or administrative
86	board in this state must be stayed for 6 months, or such
87	additional period from the date the insolvency is adjudicated,
88	by a court of competent jurisdiction to allow proper defense by
89	the association of all pending causes of action as to any
90	covered claims. The stay may be extended for a period of time
91	greater than 6 months upon proper application to a court of
92	competent jurisdiction. The association, either on its own
93	behalf or on behalf of the insured, may apply to have any
94	judgment, order, decision, verdict, or finding based on the
95	default of the insolvent insurer orself-insurance fund or its
96	failure to defend an insured set aside by the same court or
97	administrator that made the judgment, order, decision, verdict,
98	or finding and may defend against the claim on the merits. If
99	the association so requests, the stay of proceedings may be
100	shortened or waived.
101	Section 4. This act shall take effect upon becoming a law.