Senate Bill sb2486c1
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Florida Senate - 2005 CS for SB 2486
By the Committee on Banking and Insurance; and Senator Lynn
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1 A bill to be entitled
2 An act relating to community mental health or
3 substance abuse providers; amending s. 624.462,
4 F.S.; authorizing community mental health or
5 substance abuse providers to form a commercial
6 self-insurance fund; providing an effective
7 date.
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9 Be It Enacted by the Legislature of the State of Florida:
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11 Section 1. Subsections (2) and (3) of section 624.462,
12 Florida Statutes, are amended to read:
13 624.462 Commercial self-insurance funds.--
14 (2) As used in ss. 624.460-624.488, "commercial
15 self-insurance fund" or "fund" means a group of members,
16 operating individually and collectively through a trust or
17 corporation, which that must be:
18 (a) Established by:
19 1. A not-for-profit trade association, industry
20 association, or professional association of employers or
21 professionals which has a constitution or bylaws, which is
22 incorporated under the laws of this state, and which has been
23 organized for purposes other than that of obtaining or
24 providing insurance and operated in good faith for a
25 continuous period of 1 year;
26 2. Any two or more nonprofit community mental health
27 or substance abuse providers that are members in good standing
28 of nonprofit statewide associations that have been in
29 existence for at least 10 years and are comprised of at least
30 50 community-based mental health and substance abuse agencies
31 that are primarily publicly funded and located in this state;
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Florida Senate - 2005 CS for SB 2486
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1 3.2. A self-insurance trust fund organized pursuant to
2 s. 627.357 and maintained in good faith for a continuous
3 period of 1 year for purposes other than that of obtaining or
4 providing insurance pursuant to this section. Each member of
5 a commercial self-insurance trust fund established pursuant to
6 this subsection must maintain membership in the self-insurance
7 trust fund organized pursuant to s. 627.357;
8 4.3. A group of 10 or more health care providers, as
9 defined in s. 627.351(4)(h), for purposes of providing medical
10 malpractice coverage; or
11 5.4. A not-for-profit group comprised of no less than
12 10 condominium associations as defined in s. 718.103(2), which
13 is incorporated under the laws of this state, which restricts
14 its membership to condominium associations only, and which has
15 been organized and maintained in good faith for a continuous
16 period of 1 year for purposes other than that of obtaining or
17 providing insurance.
18 (b)1. In the case of funds established pursuant to
19 subparagraph (a)3. (a)2. or subparagraph (a)5. (a)4., operated
20 pursuant to a trust agreement by a board of trustees which
21 shall have complete fiscal control over the fund and which
22 shall be responsible for all operations of the fund. The
23 majority of the trustees shall be owners, partners, officers,
24 directors, or employees of one or more members of the fund.
25 The trustees shall have the authority to approve applications
26 of members for participation in the fund and to contract with
27 an authorized administrator or servicing company to administer
28 the day-to-day affairs of the fund.
29 2. In the case of funds established pursuant to
30 subparagraph (a)1., subparagraph (a)2., or subparagraph (a)4.
31 (a)3., operated pursuant to a trust agreement by a board of
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Florida Senate - 2005 CS for SB 2486
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1 trustees or as a corporation by a board of directors which
2 board shall:
3 a. Be responsible to members of the fund or
4 beneficiaries of the trust or policyholders of the
5 corporation;
6 b. Appoint independent certified public accountants,
7 legal counsel, actuaries, and investment advisers as needed;
8 c. Approve payment of dividends to members;
9 d. Approve changes in corporate structure; and
10 e. Have the authority to contract with an
11 administrator authorized under s. 626.88 to administer the
12 day-to-day affairs of the fund including, but not limited to,
13 marketing, underwriting, billing, collection, claims
14 administration, safety and loss prevention, reinsurance,
15 policy issuance, accounting, regulatory reporting, and general
16 administration. The fees or compensation for services under
17 such contract shall be comparable to the costs for similar
18 services incurred by insurers writing the same lines of
19 insurance, or where available such expenses as filed by
20 boards, bureaus, and associations designated by insurers to
21 file such data. A majority of the trustees or directors shall
22 be owners, partners, officers, directors, or employees of one
23 or more members of the fund.
24 (3) Each member of a commercial self-insurance trust
25 fund established pursuant to this section, except a fund
26 established pursuant to subparagraph (2)(a)4. (2)(a)3., must
27 maintain membership in the association or self-insurance trust
28 fund established under s. 627.357. Membership in a
29 not-for-profit trade association, industry association, or
30 professional association of employers or professionals for the
31 purpose of obtaining or providing insurance shall be in
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Florida Senate - 2005 CS for SB 2486
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1 accordance with the constitution or bylaws of the association,
2 and the dues, fees, or other costs of membership shall not be
3 different for members obtaining insurance from the commercial
4 self-insurance fund. The association shall not be liable for
5 any actions of the fund nor shall it have any responsibility
6 for establishing or enforcing any policy of the commercial
7 self-insurance fund. Fees, services, and other aspects of the
8 relationship between the association and the fund shall be
9 subject to contractual agreement.
10 Section 2. This act shall take effect July 1, 2005.
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12 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
13 senate bill 2486
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15 The committee substitute provides the following changes:
16 Replaces the bill's provisions with authority for any two or
more nonprofit community mental health or substance abuse
17 providers to form a commercial self-insurance fund licensed by
the Office of Insurance Regulation. Specifies that the
18 providers must be members of nonprofit statewide associations
that have been in existence for at least 10 years and are
19 comprised of at least 50 community-based mental health and
substance abuse agencies.
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