Senate Bill sb2070

    Florida Senate - 2004                                  SB 2070

    By Senator Diaz de la Portilla





    36-1070-04

  1                      A bill to be entitled

  2         An act relating to the Florida Workers'

  3         Compensation Insurance Guaranty Association

  4         Act; amending s. 631.904, F.S.; redefining the

  5         term "covered claim" to exclude certain claims

  6         disallowed in the claimant's state of

  7         residence; providing an effective date.

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

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11         Section 1.  Subsection (2) of section 631.904, Florida

12  Statutes, is amended to read:

13         631.904  Definitions.--As used in this part, the term:

14         (2)  "Covered claim" means an unpaid claim, including a

15  claim for return of unearned premiums, which arises out of, is

16  within the coverage of, and is not in excess of the applicable

17  limits of, an insurance policy to which this part applies,

18  which policy was issued by an insurer and which claim is made

19  on behalf of a claimant or insured who was a resident of this

20  state at the time of the injury. The term "covered claim" does

21  not include any amount sought as a return of premium under any

22  retrospective rating plan; any amount due any reinsurer,

23  insurer, insurance pool, or underwriting association, as

24  subrogation recoveries or otherwise; any claim that would

25  otherwise be a "covered claim" but is an obligation to or on

26  behalf of a person who had a net worth, on the date of the

27  occurrence giving rise to the claim, greater than that allowed

28  by the guaranty fund law of the claimant's state of residence,

29  which state has denied coverage to that claimant on that

30  basis; or any return of premium resulting from a policy that

31  was not in force on the date of the final order of

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






    Florida Senate - 2004                                  SB 2070
    36-1070-04




 1  liquidation. Member insurers have no right of subrogation

 2  against the insured of any insolvent insurer. This provision

 3  shall be applied retroactively to cover claims of an insolvent

 4  self-insurance fund resulting from accidents or losses

 5  incurred prior to January 1, 1994, regardless of the date the

 6  petition in circuit court was filed alleging insolvency and

 7  the date the court entered an order appointing a receiver.

 8         Section 2.  This act shall take effect July 1, 2004.

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11                          SENATE SUMMARY

12    Excludes from the definition of "covered claim," for
      purposes of the Florida Workers' Compensation Guaranty
13    Association Act, any claim made by a nonresident having a
      net worth that causes the claimant's claim to be denied
14    in his or her state of residence.

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