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Senator Posey moved the following amendment:

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     Senate Amendment (with title amendment)

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     Between lines 1346 and 1347,

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insert:

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     Section 12. (1) Notwithstanding any other provisions of

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law, any three or more condominium associations may form a

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self-insurance fund for the purposes of pooling and spreading

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the liabilities of its participant associations arising from the

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deductible provisions of the commercial lines residential

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property insurance policies of the participants applicable to

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hurricane losses, if:

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     (a) Such fund is a not-for-profit corporation pursuant to

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chapter 617, Florida Statutes.

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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

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funds available for the payment of claims.

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     (d) The contract provided to a participating

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association clearly discloses the obligations of the

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participants in the fund and the obligations of the fund,

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including the limited liability of the fund as defined in

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paragraph (c). The contract must specify a reasonable date

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for the payment of claims which provides the fund with

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adequate time to verify and account for all claims for a

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given year so that claims payments can be properly

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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 provide

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examples of the manner in which available funds will be

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allocated among claimants if claims exceed the funds

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available for the payment thereof. Such disclosure must be

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signed by a representative of the participating association

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before or at the time of execution of the contract.

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     (e) The contributions charged for participating in the

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fund are established by the fund and calculated as a percentage

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of the participant's hurricane deductible dollar amount. The

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fund may determine the method and timing of payment of

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contributions.

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     (f) All members of the governing board of the fund must

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be participating associations in the fund and the governing

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body shall have all powers necessary to establish and

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administer the fund as authorized by the participants in the

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fund. All decisions of the fund shall be based upon a vote of

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the majority of the board. The board may contract with

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individual professionals to administer the fund.

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     (g) The fund uses and contracts with knowledgeable

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persons 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

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of participation in the fund and does not prevent,

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impede, or restrict any applicant or participant in

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the fund from maintaining or selecting an agent of

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choice. The fund may not favor one or more agents over

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another agent. The organizational documents, the contract

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and notices of disclosure must be filed with the Office of

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Insurance Regulation not less than 45 days prior to

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solicitation by the fund.

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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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     (2) The fund may accumulate funds or periodically

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distribute excess funds to its participants on a pro rata

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basis, reflecting loss experience of individual participants

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and proportionate contributions paid by participants.

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     (3) Participants in the fund must have a deductible

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no greater than as provided in s. 627.701(8), Florida

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Statutes. Self-insurance funds or pools established

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pursuant to this section are not subject to licensure

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requirements or regulation pursuant to the Florida

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Insurance Code except for part IX of chapter 626,

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Florida Statutes, which may be enforced by the

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Office of Insurance Regulation or the Department of

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Financial Services, as applicable, and are not

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subject to any fees, taxes, or assessments related to

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the writing or transaction of insurance in 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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     On line 56, after the semicolon,

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insert:

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providing that any three or more condominium

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associations may form a self-insurance fund for

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certain purposes under certain conditions; requiring

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that the contract for participating in the fund

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disclose certain information and contain certain

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provisions; requiring that a disclosure be provided

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to an association before execution of such contract;

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requiring that such disclosure contain certain

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information; providing for the charging of

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contributions for participation in the fund;

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requiring that the majority of the governing board of

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the fund be participants in the fund; providing

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powers of the governing board; authorizing the

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fund to enter into certain contracts; requiring that

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the fund use a general lines agent meeting certain

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criteria when soliciting participation in the fund;

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prohibiting the fund from taking certain actions

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when selecting such agent; requiring that the

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fund be independently audited at specified

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intervals; authorizing the fund to accumulate funds

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or distribute excess funds to participants on a pro

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rata basis; providing for a deductible for

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participants in the fund; exempting such self-

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insurance funds from certain requirements, regulations,

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fees, taxes, and assessments;

4/29/2008  3:10:00 PM     24-08842-08