HB 0639

1	A bill to be entitled
2	An act relating to insurance guaranty associations;
3	amending ss. 631.54 and 631.904, F.S.; revising the
4	definition of covered claim; excluding certain claims
5	rejected by another state's guaranty fund under certain
6	circumstances; denying member insurers any right to
7	indemnification or contribution sought through third
8	parties; providing an effective date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1.  Subsection (3) of section 631.54, Florida
13	Statutes, is amended to read:
14	631.54  Definitions.--As used in this part:
15	(3)  "Covered claim" means an unpaid claim, including one
16	of unearned premiums, which arises out of, and is within the
17	coverage, and not in excess of, the applicable limits of an
18	insurance policy to which this part applies, issued by an
19	insurer, if such insurer becomes an insolvent insurer after
20	October 1, 1970, and the claimant or insured is a resident of
21	this state at the time of the insured event or the property from
22	which the claim arises is permanently located in this state.
23	"Covered claim" shall not include:
24	(a)  Any amount due any reinsurer, insurer, insurance pool,
25	or underwriting association, sought directly or indirectly
26	through a third party, as subrogation, contribution,
27	indemnification, or otherwise; or
28	(b)  Any claim that would otherwise be a covered claim
29	under this part that has been rejected by any other state
30	guaranty fund on the grounds that an insured's net worth is
31	greater than that allowed under that state's guaranty law.
32	Member insurers shall have no right of subrogation,
33	contribution, indemnification, or otherwise, sought directly or
34	indirectly through a third party, against the insured of any
35	insolvent member.
36	Section 2.  Subsection (2) of section 631.904, Florida
37	Statutes, is amended to read:
38	631.904  Definitions.--As used in this part, the term:
39	(2)  "Covered claim" means an unpaid claim, including a
40	claim for return of unearned premiums, which arises out of, is
41	within the coverage of, and is not in excess of the applicable
42	limits of, an insurance policy to which this part applies, which
43	policy was issued by an insurer and which claim is made on
44	behalf of a claimant or insured who was a resident of this state
45	at the time of the injury. The term "covered claim" does not
46	include any amount sought as a return of premium under any
47	retrospective rating plan; any amount due any reinsurer,
48	insurer, insurance pool, or underwriting association, as
49	subrogation recoveries or otherwise; any claim that would
50	otherwise be a covered claim that has been rejected by any other
51	state guaranty fund on the grounds that the insured's net worth
52	is greater than that allowed under that state's guaranty fund or
53	liquidation law, except this exclusion from the definition of
54	covered claim shall not apply to employers who, prior to April
55	30, 2004, entered into an agreement with the corporation
56	preserving the employer's right to seek coverage of claims
57	rejected by another state's guaranty fund; or any return of
58	premium resulting from a policy that was not in force on the
59	date of the final order of liquidation. Member insurers have no
60	right of subrogation against the insured of any insolvent
61	insurer. This provision shall be applied retroactively to cover
62	claims of an insolvent self-insurance fund resulting from
63	accidents or losses incurred prior to January 1, 1994,
64	regardless of the date the petition in circuit court was filed
65	alleging insolvency and the date the court entered an order
66	appointing a receiver.
67	Section 3.  This act shall take effect upon becoming a law.

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