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A bill to be entitled

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An act relating to group self-insurance funds; amending s.

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624.4621, F.S.; authorizing the board of trustees of a

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self-insurer to declare any moneys in excess of the amount

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necessary to fund all obligations of the self-insurer as

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refundable to its members or policyholders; authorizing

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the board to distribute such dividends or premium refunds

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at its discretion, subject to certain limitations;

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requiring that a self-insurer submit certain information

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to the Office of Insurance Regulation within a specified

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period after the payment of a dividend or premium refund;

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deleting a provision prohibiting a request for a dividend

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or premium refund from being made before such information

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is submitted; requiring that a self-insurer's written

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notice of dividend or premium refund contain certain

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information; deleting provisions relating to the required

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review and potential approval of such dividend or premium

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refund by the office; amending s. 624.4623, F.S.;

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prohibiting independent educational institution self-

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insurance funds from being required to participate in

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certain guaranty associations created pursuant to state

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law; providing that such self-insurance funds are not

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entitled to coverage under such guaranty associations;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsection (5) of section 624.4621, Florida

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Statutes, is amended to read:

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     624.4621  Group self-insurance funds.--

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     (5)  A dividend or premium refund of any self-insurer

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established under this section, otherwise earned, may not be made

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contingent upon continued membership in the fund, renewal of any

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policy, or the payment of renewal premiums for membership in the

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fund or on any policy issued by such self-insurer.

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     (a) The board of trustees of a self-insurer may declare any

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moneys in excess of the amount necessary to fund all obligations

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of the self-insurer as refundable to the members or policyholders

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of the self-insurer. The board of trustees may distribute such

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dividends or premium refunds at its discretion, in accordance

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with the agreement establishing the self-insurer and subject to

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the following limitations:

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     1. The amount of the distribution may not exceed the sum of

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the total dividends declared and unpaid to policyholders and

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unassigned funds as recorded on the most recently completed

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audited financial statements of the self-insurer;

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     2. The payment of the dividend or premium refund may not

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jeopardize the financial condition of the self-insurer or result

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in the self-insurer's having a negative unassigned funds balance.

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     (b) No later than 10 days after the payment of a dividend

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or premium refund, the self-insurer Before making any dividend or

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premium refund, the group self-insurer shall submit to the office

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the following information:

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     1.(a) An Audited certified financial statements as of the

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most recently completed fund year statement.

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     2.(b) An annual evaluation of loss reserves by a qualified

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independent actuary as of the most recently completed fund year

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report of financial condition.

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     (c) A loss reserve review by a qualified actuary.

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If a self-insurance fund does not make or declare a dividend or

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member distribution payable during a given fund year, the

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required information listed in subparagraphs (b)1.-2. paragraphs

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(a)-(c) shall be submitted annually, no later than 7 months after

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the end of the group self-insurer's fund year. A request for such

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dividend or premium refund may not be made before the required

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information is filed. The written notice to the office request

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for such dividend or premium refund must include a resolution of

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the board of trustees of the group self-insurer stating the

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requesting approval of a specific amount that has been paid to

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the members or policyholders to be distributed. A dividend,

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premium refund, or premium discount or credit must not

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discriminate on the basis of continued coverage or continued

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membership in the group self-insurer. The office shall review the

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request and shall issue a decision within 60 days after the

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filing. Failure to issue a decision within 60 days constitutes an

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approval of the request. Any dividend or premium refund that

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approved by the office for distribution which cannot be paid to

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the applicable member or policyholder or former member or

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policyholder of the group self-insurer because the former member

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or policyholder cannot be reasonably located shall become the

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property of the group self-insurer.

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     Section 2.  Subsection (3) is added to section 624.4623,

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Florida Statutes, to read:

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     624.4623  Independent Educational Institution Self-Insurance

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Funds.--

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     (3) An independent educational institution self-insurance

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fund shall not be required to participate in, or entitled to

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coverage under, the guaranty associations created pursuant to

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parts II and V of chapter 631.

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     Section 3.  This act shall take effect upon becoming a law.