| 1 | Representative Schwartz offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 20-21 and insert: |
| 5 | Section 1. Section 624.46226, Florida Statutes, is amended |
| 6 | to read: |
| 7 | 624.46226 Public housing authorities self-insurance funds; |
| 8 | exemption for taxation and assessments.-- |
| 9 | (1) Notwithstanding any other provision of law, any two or |
| 10 | more public housing authorities in the state as defined in |
| 11 | chapter 421 may form also create a self-insurance fund for the |
| 12 | purpose of pooling and spreading liabilities of its members as |
| 13 | to any one or combination of casualty risk or self-insuring real |
| 14 | or personal property risk of every kind and every interest in |
| 15 | such property against loss or damage from any hazard or cause |
| 16 | and against any loss consequential to such loss or damage, |
| 17 | provided the self-insurance fund that is created: all the |
| 18 | provisions of s. 624.4622 are met. |
| 19 | (a) Has annual normal premiums in excess of $5 million. |
| 20 | (b) Uses a qualified actuary to determine rates using |
| 21 | accepted actuarial principles and annually submits to the office |
| 22 | a certification by the actuary that the rates are actuarially |
| 23 | sound and are not inadequate, as defined in s. 627.062. |
| 24 | (c) Uses a qualified actuary to establish reserves for |
| 25 | loss and loss adjustment expenses and annually submits to the |
| 26 | office a certification by the actuary that the loss and loss |
| 27 | adjustment expense reserves are adequate. If the actuary |
| 28 | determines that reserves are not adequate, the fund shall file |
| 29 | with the office a remedial plan for increasing the reserves or |
| 30 | otherwise addressing the financial condition of the fund, |
| 31 | subject to a determination by the office that the fund will |
| 32 | operate on an actuarially sound basis and the fund does not pose |
| 33 | a significant risk of insolvency. |
| 34 | (d) Maintains a continuing program of excess insurance |
| 35 | coverage and reserve evaluation to protect the financial |
| 36 | stability of the fund in an amount and manner determined by a |
| 37 | qualified and independent actuary. At a minimum, this program |
| 38 | must: |
| 39 | 1. Purchase excess insurance from authorized insurance |
| 40 | carriers or eligible surplus lines insurers. |
| 41 | 2. Retain a per-loss occurrence that does not exceed |
| 42 | $350,000. |
| 43 | (e) Submits to the office annually an audited fiscal year- |
| 44 | end financial statement by an independent certified public |
| 45 | accountant within 6 months after the end of the fiscal year. |
| 46 | (f) Has a governing body which is comprised entirely of |
| 47 | commissioners of public housing authorities that are members of |
| 48 | the public housing authority self-insurance fund or persons |
| 49 | appointed by the commissioners of public housing authorities |
| 50 | that are members of the public housing authority self-insurance |
| 51 | fund. |
| 52 | (g) Uses knowledgeable persons or business entities to |
| 53 | administer or service the fund in the areas of claims |
| 54 | administration, claims adjusting, underwriting, risk management, |
| 55 | loss control, policy administration, financial audit, and legal |
| 56 | areas. Such persons must meet all applicable requirements of law |
| 57 | for state licensure and must have at least 5 years' experience |
| 58 | with commercial self-insurance funds formed under s. 624.462, |
| 59 | self-insurance funds formed under s. 624.4622, or domestic |
| 60 | insurers. |
| 61 | (h) Submits to the office copies of contracts used for its |
| 62 | members that clearly establish the liability of each member for |
| 63 | the obligations of the fund. |
| 64 | (i) Annually submits to the office a certification by the |
| 65 | governing body of the fund that, to the best of its knowledge, |
| 66 | the requirements of this section are met. |
| 67 | (2) As used in this section, the term "qualified actuary" |
| 68 | means an actuary that is a member of the Casualty Actuarial |
| 69 | Society or the American Academy of Actuaries. |
| 70 | (3) A public housing authority's self-insurance fund that |
| 71 | meets the requirements of this section is not: |
| 72 | (a) An insurer for purposes of participation in or |
| 73 | coverage by any insurance guaranty association established by |
| 74 | chapter 631; or |
| 75 | (b) Subject to s. 624.4621 and is not required to file any |
| 76 | report with the department under s. 440.38(2)(b) that is |
| 77 | uniquely required of group self-insurer funds qualified under s. |
| 78 | 624.4621. |
| 79 | (4) Premiums, contributions, and assessments received by a |
| 80 | public housing authority's self-insurance fund are subject to |
| 81 | ss. 624.509(1) and (2) and 624.5092, except that the tax rate |
| 82 | shall be 1.6 percent of the gross amount of such premiums, |
| 83 | contributions, and assessments. |
| 84 | (5) If any of the requirements of subsection (1) are not |
| 85 | met, a public housing authority's self-insurance fund is subject |
| 86 | to the requirements of s. 624.4621 if the fund provides only |
| 87 | workers' compensation coverage or is subject to the requirements |
| 88 | of ss. 624.460-624.488 if the fund provides coverage for other |
| 89 | property, casualty, or surety risks. |
| 90 | (6)(2) Any public housing authority in the state as |
| 91 | defined in chapter 421 that is a member of a self-insurance fund |
| 92 | pursuant to this section shall be exempt from the assessments |
| 93 | imposed under ss. 215.555, 627.351 and 631.57. |
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| 98 | ----------------------------------------------------- |
| 99 | T I T L E A M E N D M E N T |
| 100 | Remove line 2 and insert: |
| 101 | An act relating to insurance; amending s. 624.46226, F.S.; |
| 102 | revising provisions authorizing public housing authorities to |
| 103 | form self-insurance funds; specifying requirements; providing a |
| 104 | definition; providing construction relating to self-insurance |
| 105 | funds; providing for application of certain provisions of law to |
| 106 | premiums, contributions, and assessments of public authority's |
| 107 | self-insurance funds; specifying an alternative tax rate; |
| 108 | providing for application of certain provisions of law to public |
| 109 | authority's self-insurance funds not meeting certain |
| 110 | requirements; amending s. |
| 111 |
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