| 1 | A bill to be entitled |
| 2 | An act relating to group self-insurance funds; amending s. |
| 3 | 624.4621, F.S.; authorizing the board of trustees of a |
| 4 | self-insurer to declare any moneys in excess of the amount |
| 5 | necessary to fund all obligations of the self-insurer as |
| 6 | refundable to its members or policyholders; authorizing |
| 7 | the board to distribute such dividends or premium refunds |
| 8 | at its discretion, subject to certain limitations; |
| 9 | requiring that a self-insurer submit certain information |
| 10 | to the Office of Insurance Regulation within a specified |
| 11 | period after the payment of a dividend or premium refund; |
| 12 | deleting a provision prohibiting a request for a dividend |
| 13 | or premium refund from being made before such information |
| 14 | is submitted; requiring that a self-insurer's written |
| 15 | notice of dividend or premium refund contain certain |
| 16 | information; deleting provisions relating to the required |
| 17 | review and potential approval of such dividend or premium |
| 18 | refund by the office; amending s. 624.4623, F.S.; |
| 19 | prohibiting independent educational institution self- |
| 20 | insurance funds from being required to participate in or |
| 21 | entitled to coverage under certain guaranty associations; |
| 22 | providing an effective date. |
| 23 |
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| 24 | Be It Enacted by the Legislature of the State of Florida: |
| 25 |
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| 26 | Section 1. Subsection (5) of section 624.4621, Florida |
| 27 | Statutes, is amended to read: |
| 28 | 624.4621 Group self-insurance funds.-- |
| 29 | (5) A dividend or premium refund of any self-insurer |
| 30 | established under this section, otherwise earned, may not be |
| 31 | made contingent upon continued membership in the fund, renewal |
| 32 | of any policy, or the payment of renewal premiums for membership |
| 33 | in the fund or on any policy issued by such self-insurer. |
| 34 | (a) The board of trustees of a self-insurer may declare |
| 35 | any moneys in excess of the amount necessary to fund all |
| 36 | obligations of the self-insurer as refundable to the members or |
| 37 | policyholders of the self-insurer. The board of trustees may |
| 38 | distribute such dividends or premium refunds at the board's |
| 39 | discretion, in accordance with the agreement establishing the |
| 40 | self-insurer and subject to the following limitations: |
| 41 | 1. The amount of the distribution may not exceed the sum |
| 42 | total of the dividends declared and unpaid to policyholders and |
| 43 | unassigned funds as recorded on the most recently completed |
| 44 | audited financial statements of the self-insurer. |
| 45 | 2. The payment of the dividend or premium refund may not |
| 46 | jeopardize the financial condition of the self-insurer or result |
| 47 | in the self-insurer having a negative unassigned funds balance. |
| 48 | (b) No later than 10 days after the payment of a Before |
| 49 | making any dividend or premium refund, the group self-insurer |
| 50 | shall submit to the office the following information: |
| 51 | 1.(a) An Audited certified financial statements as of the |
| 52 | most recently completed fund year statement. |
| 53 | 2.(b) An Annual evaluations of loss reserves by a |
| 54 | qualified independent actuary as of the most recently completed |
| 55 | fund year report of financial condition. |
| 56 | (c) A loss reserve review by a qualified actuary. |
| 57 |
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| 58 | If a self-insurance fund does not make or declare a dividend or |
| 59 | member distribution payable during a given fund year, the |
| 60 | required information listed in subparagraphs 1. and 2. |
| 61 | paragraphs (a)-(c) shall be submitted annually, no later than 7 |
| 62 | months after the end of the group self-insurer's fund year. A |
| 63 | request for such dividend or premium refund may not be made |
| 64 | before the required information is filed. The written notice to |
| 65 | the office request for such dividend or premium refund must |
| 66 | include a resolution of the board of trustees of the group self- |
| 67 | insurer stating the requesting approval of a specific amount |
| 68 | that has been paid to the members or policyholders to be |
| 69 | distributed. A dividend, premium refund, or premium discount or |
| 70 | credit must not discriminate on the basis of continued coverage |
| 71 | or continued membership in the group self-insurer. The office |
| 72 | shall review the request and shall issue a decision within 60 |
| 73 | days after the filing. Failure to issue a decision within 60 |
| 74 | days constitutes an approval of the request. Any dividend or |
| 75 | premium refund that approved by the office for distribution |
| 76 | which cannot be paid to the applicable member or policyholder or |
| 77 | former member or policyholder of the group self-insurer because |
| 78 | the former member or policyholder cannot be reasonably located |
| 79 | shall become the property of the group self-insurer. |
| 80 | Section 2. Subsection (3) is added to section 624.4623, |
| 81 | Florida Statutes, to read: |
| 82 | 624.4623 Independent Educational Institution Self- |
| 83 | Insurance Funds.-- |
| 84 | (3) An independent educational institution self-insurance |
| 85 | fund shall not be required to participate in, nor shall it be |
| 86 | entitled to coverage under, the guaranty associations created |
| 87 | pursuant to parts II and V of chapter 631. |
| 88 | Section 3. This act shall take effect upon becoming a law. |