| 1 | Representative Reagan offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between line(s) 20 and 21, insert: |
| 5 | Section 1. Subsection (1) of section 395.106, Florida |
| 6 | Statutes, is amended, and subsection (5) is added to that |
| 7 | section, to read: |
| 8 | 395.106 Risk pooling by certain hospitals and hospital |
| 9 | systems.-- |
| 10 | (1) Notwithstanding any other provision of law, any two or |
| 11 | more hospitals licensed in this state and located in this state |
| 12 | may form an alliance for the purpose of pooling and spreading |
| 13 | liabilities of its members relative to property exposure, |
| 14 | implementing self-insurance coverage for its members, or |
| 15 | securing such property insurance coverage for the benefit of its |
| 16 | members, provided an alliance that is created: |
| 17 | (a) Has annual premiums in excess of $3 million. |
| 18 | (b) Maintains a continuing program of premium calculation |
| 19 | and evaluation and reserve evaluation to protect the financial |
| 20 | stability of the alliance in an amount and manner determined by |
| 21 | consultants using catastrophic (CAT) modeling criteria or other |
| 22 | risk-estimating methodologies, including those used by qualified |
| 23 | and independent actuaries. |
| 24 | (c) Causes to be prepared annually a fiscal year-end |
| 25 | financial statement based upon generally accepted accounting |
| 26 | principles and audited by an independent certified public |
| 27 | accountant within 6 months after the end of the fiscal year. |
| 28 | (d) Has a governing body comprised entirely of member |
| 29 | entities whose representatives on such governing body are |
| 30 | specified by the organizational documents of the alliance. |
| 31 | (5) Reinsurance companies complying with s. 624.610 may |
| 32 | issue coverage directly to an alliance self-insuring its |
| 33 | liabilities under this section. An alliance purchasing |
| 34 | reinsurance shall be considered an insurer for the sole purpose |
| 35 | of entering into such reinsurance contracts. Contracts of |
| 36 | reinsurance issued to an alliance under this section shall |
| 37 | receive the same tax treatment as reinsurance contracts issued |
| 38 | to insurance companies. However, the purchase of reinsurance |
| 39 | coverage by an alliance self-insuring pursuant to this section |
| 40 | shall not be construed as authorizing an alliance to otherwise |
| 41 | act as an insurer. |
| 42 |
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| 43 | ----------------------------------------------------- |
| 44 | T I T L E A M E N D M E N T |
| 45 | Between line(s) 2 and 3, insert: |
| 46 | 395.106, F.S.; expanding authority for certain hospitals to form |
| 47 | an alliance for certain purposes; authorizing reinsurance |
| 48 | companies to issue coverage to certain self-insuring alliances |
| 49 | under certain circumstances; providing for considering certain |
| 50 | alliances as insurers for certain purposes; providing for |
| 51 | alliance reinsurance contracts to receive the same tax treatment |
| 52 | as reinsurance contracts issued to insurance companies; |
| 53 | providing an exception; amending s. |