| 1 | A bill to be entitled |
| 2 | An act relating to self-insurance funds; amending s. |
| 3 | 624.4621, F.S.; requiring an application for workers' |
| 4 | compensation coverage issued by a group self-insurance |
| 5 | fund to notify applicants that policyholders must make |
| 6 | additional contributions to the fund if the fund is unable |
| 7 | to pay its obligations; creating s. 624.4626, F.S.; |
| 8 | authorizing certain electric cooperatives to operate a |
| 9 | self-insurance fund for certain purposes; providing |
| 10 | requirements; subjecting such funds to certain |
| 11 | assessments; exempting such funds from certain group self- |
| 12 | insurance fund requirements under certain circumstances; |
| 13 | amending s. 626.89, F.S.; requiring certain administrators |
| 14 | to submit fiscal year statements within a specific time; |
| 15 | amending s. 631.904, F.S.; revising the definition of |
| 16 | "self-insurance fund" under the Florida Workers' |
| 17 | Compensation Insurance Guaranty Association Act to exclude |
| 18 | certain types of self-insurance funds; providing an |
| 19 | effective date. |
| 20 |
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| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 |
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| 23 | Section 1. Subsection (11) is added to section 624.4621, |
| 24 | Florida Statutes, to read: |
| 25 | 624.4621 Group self-insurance funds.-- |
| 26 | (11)(a) Notwithstanding any other provision of law, each |
| 27 | application for workers' compensation coverage issued by a group |
| 28 | self-insurance fund established under this section must contain, |
| 29 | in boldface and in not less than 10-point type, the following |
| 30 | statement: |
| 31 | |
| 32 | "This is a fully assessable policy. If the fund is unable |
| 33 | to pay its obligations, policyholders must contribute, on |
| 34 | a pro rata earned premium basis, the money necessary to |
| 35 | meet any unfilled obligations." |
| 36 |
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| 37 | (b) If the application is signed by the applicant, the |
| 38 | applicant is deemed to have made an informed, knowing acceptance |
| 39 | of the assessment liability that exists as a result of |
| 40 | participation in the fund. |
| 41 | Section 2. Section 624.4626, Florida Statutes, is created |
| 42 | to read: |
| 43 | 624.4626 Electric cooperative self-insurance fund.-- |
| 44 | (1) Notwithstanding any other provision of law, any two or |
| 45 | more electric cooperatives organized pursuant to chapter 425 may |
| 46 | operate a self-insurance fund for the purpose of pooling and |
| 47 | spreading liabilities of its group members in securing the |
| 48 | payment of benefits under chapter 440. A self-insurance fund |
| 49 | established under this section must: |
| 50 | (a) Require that every member of the fund is jointly and |
| 51 | severally liable for the obligations of the fund. |
| 52 | (b) Maintain a continuing program of excess insurance |
| 53 | coverage and reserve evaluation to protect the financial |
| 54 | stability of the fund in an amount and manner determined by a |
| 55 | qualified and independent actuary. |
| 56 | (c) Subscribe to, or be a member of, a rating organization |
| 57 | as prescribed in s. 627.231. |
| 58 | (d) Employ an independent certified public accountant to |
| 59 | complete an audit of its fiscal year-end financial statement |
| 60 | within 6 months after the end of the fiscal year. |
| 61 | (e) Have a governing body comprised of a representative |
| 62 | from each member of the fund. |
| 63 | (f) Limit membership in the fund to electric cooperatives |
| 64 | that operate in this state, their subsidiaries, and the current |
| 65 | members of the Florida Rural Electric Self-Insurer's Fund. |
| 66 | (g) At renewal, provide the members of the fund with a |
| 67 | disclosure statement that notifies the members that the fund is |
| 68 | not regulated by the office. |
| 69 | (2) A self-insurance fund that meets the requirements of |
| 70 | this section is subject to the assessments set forth in ss. |
| 71 | 440.49(9), 440.51(1), and 624.4621(7), but is not subject to any |
| 72 | other provision of s. 624.4621 and is not required to file any |
| 73 | report with the department under s. 440.38(2)(b) which is |
| 74 | uniquely required of group self-insurer funds qualified under s. |
| 75 | 624.4621. |
| 76 | Section 3. Subsections (1) and (2) of section 626.89, |
| 77 | Florida Statutes, are amended to read: |
| 78 | 626.89 Annual financial statement and filing fee; notice |
| 79 | of change of ownership.-- |
| 80 | (1) Each authorized administrator shall file with the |
| 81 | office a full and true statement of its financial condition, |
| 82 | transactions, and affairs. The statement shall be filed annually |
| 83 | on or before March 1 or within such extension of time therefor |
| 84 | as the office for good cause may have granted and shall be for |
| 85 | the preceding calendar year. The statement shall be in such form |
| 86 | and contain such matters as the commission prescribes and shall |
| 87 | be verified by at least two officers of such administrator. An |
| 88 | administrator whose sole stockholder is an association |
| 89 | representing health care providers which is not an affiliate of |
| 90 | an insurer, an administrator of a pooled governmental self- |
| 91 | insurance program, or an administrator that is a university may |
| 92 | submit the preceding fiscal year's statement within 3 months of |
| 93 | its fiscal year end. |
| 94 | (2) Each authorized administrator shall also file an |
| 95 | audited financial statement performed by an independent |
| 96 | certified public accountant. The audited financial statement |
| 97 | shall be filed with the office on or before June 1 for the |
| 98 | preceding calendar year ending December 31. An administrator |
| 99 | with an established fiscal year of July 1 through June 30 whose |
| 100 | sole stockholder is an association representing health care |
| 101 | providers which is not an affiliate of an insurer, an |
| 102 | administrator of a pooled governmental self-insurance program, |
| 103 | or an administrator that is a university may submit the |
| 104 | preceding fiscal year's audited financial statement within 6 |
| 105 | months after the end of its fiscal year on or before December |
| 106 | 31. An audited financial statement prepared on a consolidated |
| 107 | basis must include a columnar consolidating or combining |
| 108 | worksheet that must be filed with the statement and must comply |
| 109 | with the following: |
| 110 | (a) Amounts shown on the consolidated audited financial |
| 111 | statement must be shown on the worksheet; |
| 112 | (b) Amounts for each entity must be stated separately; and |
| 113 | (c) Explanations of consolidating and eliminating entries |
| 114 | must be included. |
| 115 | Section 4. Subsection (6) of section 631.904, Florida |
| 116 | Statutes, is amended to read: |
| 117 | 631.904 Definitions.--As used in this part, the term: |
| 118 | (6) "Self-insurance fund" means a group self-insurance |
| 119 | fund authorized under s. 624.4621, a commercial self-insurance |
| 120 | fund writing workers' compensation insurance authorized under s. |
| 121 | 624.462, or an assessable mutual insurer authorized under s. |
| 122 | 628.6011. For purposes of this act, the term "self-insurance |
| 123 | fund" does not include a qualified local government self- |
| 124 | insurance fund, as defined in s. 624.4622, an independent |
| 125 | educational institution self-insurance fund as defined in s. |
| 126 | 624.4623, an electric cooperative self-insurance fund as |
| 127 | described in s. 624.4626, or an individual self-insurer as |
| 128 | defined in s. 440.385. |
| 129 | Section 5. This act shall take effect July 1, 2009. |