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The Committee on Banking and Insurance (Bennett) recommended the

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following amendment:

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     Senate Amendment (with title amendment)

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     Delete lines 259-261

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and insert:

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     3. Notwithstanding any other provisions of law, any three

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or more condominium associations may form a self-insurance fund

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for the purposes of pooling and spreading the liabilities of its

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participant associations arising from the deductible provisions

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of the commercial lines residential property insurance policies

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of the participants applicable to hurricane losses, if:

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     a. Such fund is a not-for-profit fund.

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     b. The fund is implemented through contracts among the

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participating associations, or through contracts between the

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participating associations and another legal entity established

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for and limited to establishing and implementing the program.

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     c. The liability of the fund for claims is limited to funds

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available for the payment of claims.

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     d. The contract provided to a participating association

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clearly discloses the obligations of the participants in the fund

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and the obligations of the fund, including the limited liability

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of the fund as defined in sub-subparagraph c. The contract may

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specify a reasonable date for the payment of claims which

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provides the fund with adequate time to verify and account for

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all claims for a given year so that claims payments can be

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properly calculated after consideration of the funds available.

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Before execution of the contract, the association or its

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representative must be provided a separate disclosure form

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specifying the limited liability of the fund and all

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administrative fees and estimated expenses, and providing

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examples of the manner in which available funds will be allocated

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among claimants if claims exceed the funds available for the

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payment thereof. Such disclosure must be signed by a

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representative of the participating association before or at the

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time of execution of the contract.

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     e. The contributions charged for participating in the fund

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are established by the fund and calculated as a percentage of the

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participant's hurricane deductible dollar amount. The fund may

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determine the method and timing of payment of contributions.

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     f. The majority of the governing board of the fund are

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participants in the fund and the governing body shall have all

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powers necessary to establish and administer the fund as

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authorized by the participants in the fund.

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     g. The fund uses and contracts with knowledgeable persons

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or business entities to administer and service the fund,

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including marketing, policy, contract administration, claims

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administration, accounting services, and legal services.

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     h. The fund uses a properly licensed general lines

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insurance agent who is a Florida resident for solicitation of

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participation in the fund and does not prevent, impede, or

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restrict any applicant or participant in the fund from

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maintaining or selecting an agent of choice. The fund may not

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favor one or more agents over another agent.

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     i. The fund is audited by an independent auditor no less

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frequently than every 2 years.

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     4. The fund may accumulate funds or periodically distribute

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excess funds to its participants on a pro rata basis, reflecting

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loss experience of individual participants and proportionate

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contributions paid by participants.

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     5. Participants in the fund must have a deductible no

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greater than as provided in s. 627.701(8).

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Self-insurance funds or pools established pursuant to this

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paragraph are not subject to licensure requirements or regulation

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pursuant to the Florida Insurance Code except for part IX of

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chapter 626, and are not subject to any fees, taxes, or

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assessments related to the writing or transaction of insurance in

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this state.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     Delete lines 10 and 11

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and insert:

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insurance; providing that any three or more condominium

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associations may form a self-insurance fund for certain

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purposes under certain conditions; requiring that the

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contract for participating in the fund disclose certain

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information and contain certain provisions; requiring that

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a disclosure be provided to an association before

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execution of such contract; requiring that such disclosure

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contain certain information; providing for the charging of

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contributions for participation in the fund; requiring

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that the majority of the governing board of the fund be

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participants in the fund; providing powers of the

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governing board; authorizing the fund to enter into

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certain contracts; requiring that the fund use a general

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lines agent meeting certain criteria when soliciting

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participation in the fund; prohibiting the fund from

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taking certain actions when selecting such agent;

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requiring that the fund be independently audited at

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specified intervals; authorizing the fund to accumulate

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funds or distribute excess funds to participants on a pro

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rata basis; providing for a deductible for participants in

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the fund; exempting such self-insurance funds from certain

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requirements, regulations, fees, taxes, and assessments;

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providing

4/4/2008  4:41:00 PM     21-06694-08