Florida Senate - 2005                      COMMITTEE AMENDMENT
    Bill No. SB 2486
                        Barcode 095786
                            CHAMBER ACTION
              Senate                               House
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11  The Committee on Banking and Insurance (Garcia) recommended
12  the following substitute for amendment (234716):
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14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Subsections (2) and (3) of section 624.462,
19  Florida Statutes, are amended to read:
20         624.462  Commercial self-insurance funds.--
21         (2)  As used in ss. 624.460-624.488, "commercial
22  self-insurance fund" or "fund" means a group of members,
23  operating individually and collectively through a trust or
24  corporation, which that must be:
25         (a)  Established by:
26         1.  A not-for-profit trade association, industry
27  association, or professional association of employers or
28  professionals which has a constitution or bylaws, which is
29  incorporated under the laws of this state, and which has been
30  organized for purposes other than that of obtaining or
31  providing insurance and operated in good faith for a
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    5:19 PM   04/12/05                             s2486d-bi40-c3t

Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2486 Barcode 095786 1 continuous period of 1 year; 2 2. Any two or more nonprofit community mental health 3 or substance abuse providers that are members in good standing 4 of nonprofit statewide associations that have been in 5 existence for at least 10 years and are comprised of at least 6 50 community-based mental health and substance abuse agencies 7 that are primarily publicly funded and located in this state; 8 3.2. A self-insurance trust fund organized pursuant to 9 s. 627.357 and maintained in good faith for a continuous 10 period of 1 year for purposes other than that of obtaining or 11 providing insurance pursuant to this section. Each member of 12 a commercial self-insurance trust fund established pursuant to 13 this subsection must maintain membership in the self-insurance 14 trust fund organized pursuant to s. 627.357; 15 4.3. A group of 10 or more health care providers, as 16 defined in s. 627.351(4)(h), for purposes of providing medical 17 malpractice coverage; or 18 5.4. A not-for-profit group comprised of no less than 19 10 condominium associations as defined in s. 718.103(2), which 20 is incorporated under the laws of this state, which restricts 21 its membership to condominium associations only, and which has 22 been organized and maintained in good faith for a continuous 23 period of 1 year for purposes other than that of obtaining or 24 providing insurance. 25 (b)1. In the case of funds established pursuant to 26 subparagraph (a)3. (a)2. or subparagraph (a)5. (a)4., operated 27 pursuant to a trust agreement by a board of trustees which 28 shall have complete fiscal control over the fund and which 29 shall be responsible for all operations of the fund. The 30 majority of the trustees shall be owners, partners, officers, 31 directors, or employees of one or more members of the fund. 2 5:19 PM 04/12/05 s2486d-bi40-c3t
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2486 Barcode 095786 1 The trustees shall have the authority to approve applications 2 of members for participation in the fund and to contract with 3 an authorized administrator or servicing company to administer 4 the day-to-day affairs of the fund. 5 2. In the case of funds established pursuant to 6 subparagraph (a)1., subparagraph (a)2., or subparagraph (a)4. 7 (a)3., operated pursuant to a trust agreement by a board of 8 trustees or as a corporation by a board of directors which 9 board shall: 10 a. Be responsible to members of the fund or 11 beneficiaries of the trust or policyholders of the 12 corporation; 13 b. Appoint independent certified public accountants, 14 legal counsel, actuaries, and investment advisers as needed; 15 c. Approve payment of dividends to members; 16 d. Approve changes in corporate structure; and 17 e. Have the authority to contract with an 18 administrator authorized under s. 626.88 to administer the 19 day-to-day affairs of the fund including, but not limited to, 20 marketing, underwriting, billing, collection, claims 21 administration, safety and loss prevention, reinsurance, 22 policy issuance, accounting, regulatory reporting, and general 23 administration. The fees or compensation for services under 24 such contract shall be comparable to the costs for similar 25 services incurred by insurers writing the same lines of 26 insurance, or where available such expenses as filed by 27 boards, bureaus, and associations designated by insurers to 28 file such data. A majority of the trustees or directors shall 29 be owners, partners, officers, directors, or employees of one 30 or more members of the fund. 31 (3) Each member of a commercial self-insurance trust 3 5:19 PM 04/12/05 s2486d-bi40-c3t
Florida Senate - 2005 COMMITTEE AMENDMENT Bill No. SB 2486 Barcode 095786 1 fund established pursuant to this section, except a fund 2 established pursuant to subparagraph (2)(a)4. (2)(a)3., must 3 maintain membership in the association or self-insurance trust 4 fund established under s. 627.357. Membership in a 5 not-for-profit trade association, industry association, or 6 professional association of employers or professionals for the 7 purpose of obtaining or providing insurance shall be in 8 accordance with the constitution or bylaws of the association, 9 and the dues, fees, or other costs of membership shall not be 10 different for members obtaining insurance from the commercial 11 self-insurance fund. The association shall not be liable for 12 any actions of the fund nor shall it have any responsibility 13 for establishing or enforcing any policy of the commercial 14 self-insurance fund. Fees, services, and other aspects of the 15 relationship between the association and the fund shall be 16 subject to contractual agreement. 17 Section 2. This act shall take effect July 1, 2005. 18 19 20 ================ T I T L E A M E N D M E N T =============== 21 And the title is amended as follows: 22 Delete everything before the enacting clause 23 24 and insert: 25 A bill to be entitled 26 An act relating to community mental health or 27 substance abuse providers; amending s. 624.462, 28 F.S.; authorizing community mental health or 29 substance abuse providers to form a commercial 30 self-insurance fund; providing an effective 31 date. 4 5:19 PM 04/12/05 s2486d-bi40-c3t