Florida Senate - 2008 SENATOR AMENDMENT
Bill No. CS/CS/HB 679, 1st Eng.
195742
Senate
Floor: 1c/AD/2R
5/2/2008 2:50 PM
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House
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Senator Posey moved the following amendment to amendment
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(074374):
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Senate Amendment (with title amendment)
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Between line(s) 1292 and 1293
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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(s) 1354, 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;
5/1/2008 10:45:00 AM 24-09402-08
CODING: Words stricken are deletions; words underlined are additions.