Amendment
Bill No. CS/HB 1087

Amendment No. 305825

CHAMBER ACTION
Senate		House
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1	Representative Holder offered the following:
2
3	Amendment (with title amendment)
4	Between lines 773 and 774, insert:
5	Section 12.  Section 628.901, Florida Statutes, is amended
6	to read:
7	628.901  Definitions "Captive insurer" defined.-As used in
8	For the purposes of this part, the term: except as provided in
9	s. 628.903, a "captive insurer" is a domestic insurer
10	established under part I to insure the risks of a specific
11	corporation or group of corporations under common ownership
12	owned by the corporation or corporations from which it accepts
13	risk under a contract of insurance.
14	(1)  "Association" means a legal association of nursing
15	homes, hospitals, skilled nursing facilities, assisted living
16	facilities, or continuing care retirement communities.
17	(2)  "Association captive insurer" means a company that
18	insures risks of the member organizations of the association and
19	their affiliated companies.
20	(3)  "Captive insurer" means a pure captive insurer, an
21	industrial insured captive insurer, or an association captive
22	insurer domiciled in this state and formed or licensed under
23	this part.
24	(4)  "Industrial insured" means an insured that:
25	(a)  Has gross assets in excess of $50 million;
26	(b)  Procures insurance through the use of a full-time
27	employee of the insured who acts as an insurance manager or
28	buyer or through the services of a person licensed as a property
29	and casualty insurance agent, broker, or consultant in such
30	person's state of domicile;
31	(c)  Has at least 100 full-time employees; and
32	(d)  Pays annual premiums of at least $200,000 for each
33	line of insurance purchased from the industrial insured captive
34	insurer, or at least $75,000 for any line of coverage in excess
35	of at least $25 million in the annual aggregate. The purchase of
36	umbrella or general liability coverage in excess of $25 million
37	in the annual aggregate is deemed to be the purchase of a single
38	line of insurance.
39	(5)  "Industrial insured captive insurer" means a captive
40	insurer that:
41	(a)  Has as its stockholders or members only industrial
42	insureds that the captive insurer insures, or has as its sole
43	stockholder a corporation whose sole stockholders are industrial
44	insureds that the captive insurer insures; and
45	1.  Provides insurance only to the industrial insureds that
46	are its stockholders or members, and affiliates thereof, or to
47	the stockholders, and affiliates thereof, of its parent
48	corporation; or
49	2.  Provides reinsurance only on risks written by insurers
50	of industrial insureds who are the stockholders or members, and
51	affiliates thereof, of the captive insurer, or the stockholders,
52	and affiliates thereof, of the parent corporation of the captive
53	insurer;
54	(b)  Maintains unimpaired capital and surplus of at least
55	$20 million; and
56	(c)  If licensed in this state before December 31, 1999, or
57	if any subsidiary formed by the licensed insurer on or after
58	December 31, 1999, has:
59	1.  Gross assets in excess of $10 million and procures
60	insurance through the use of a full-time employee of the insured
61	who acts as an insurance manager or buyer or through the
62	services of a person licensed as a property and casualty
63	insurance agent, broker, or consultant in such person's state of
64	domicile;
65	2.  At least 25 full-time employees; and
66	3.  Annual aggregate premiums for all insurance risks which
67	total at least $100,000.
68
69	As used in this subsection, the term "affiliate" means a person
70	that directly or indirectly, through one or more intermediaries,
71	controls, is controlled by, or is under common control with one
72	or more of the stockholders or members of an industrial insured
73	captive insurer or one or more of the stockholders of the parent
74	corporation of an industrial insured captive insurer.
75	(6)  "Pure captive insurer" means a company that insures
76	the risks of its parent, affiliated companies, controlled
77	unaffiliated businesses, or a combination thereof.
78	Section 13.  Section 628.903, Florida Statutes, is
79	repealed.
80	Section 14.  Section 628.905, Florida Statutes, is amended
81	to read:
82	628.905  Licensing; authority.-In order to conduct
83	insurance business in this state, a captive insurer must obtain
84	a license from the office.
85	(1)  A Any captive insurer, if when permitted by its
86	charter or articles of incorporation, may apply to the office
87	for a license to provide commercial property, commercial
88	casualty, and commercial marine insurance. coverage other than
89	workers' compensation and employer's liability insurance
90	coverage, except that An industrial insured captive insurer may
91	also apply for a license to provide workers' compensation and
92	employer's liability insurance as set forth in subsection (5)
93	(6).
94	(2)  A No captive insurer, other than an industrial insured
95	captive insurer, may not shall insure or accept reinsurance on
96	any risks other than those of its parent and affiliated
97	companies.
98	(3)  In addition to information otherwise required by this
99	code, each applicant captive insurer shall file with the office
100	evidence:
101	(a)  Of the adequacy of the loss prevention program of its
102	insureds.
103	(b)  That it intends to employ or contract with a reputable
104	person or firm that possesses the appropriate expertise,
105	experience, and character to manage the association captive
106	insurer.
107	(4)  If an association captive insurer operates with
108	separate cells or segregated accounts, a certificate of
109	insurance used to satisfy financial responsibility laws shall be
110	issued in an amount not exceeding the total funds in the
111	segregated accounts or separate cells of each member
112	organization of the association.
113	(5)(4)  An industrial insured captive insurer:
114	(a)  Need not be incorporated in this state if it has been
115	validly incorporated under the laws of another jurisdiction;.
116	(b)(5)  An industrial insured captive insurer Is subject to
117	all provisions of this part except as otherwise indicated; and.
118	(c)(6)  An industrial insured captive insurer May not
119	provide workers' compensation and employer's liability insurance
120	except in excess of at least $25 million in the annual
121	aggregate.
122	Section 15.  Section 628.908, Florida Statutes, is created
123	to read:
124	628.908  Principal place of business; annual meeting.-In
125	order to conduct insurance business in this state, a licensed
126	captive insurer must:
127	(1)  Maintain its principal place of business in this
128	state; and
129	(2)  Annually hold in this state at least one board of
130	directors' meeting; or, in the case of a reciprocal insurer, one
131	subscriber's advisory committee meeting; or, in the case of a
132	limited liability company, one managing board's meeting.
133	Section 16.  Paragraph (a) of subsection (2) and paragraph
134	(a) of subsection (3) of section 628.909, Florida Statutes, are
135	amended to read:
136	628.909  Applicability of other laws.-
137	(2)  The following provisions of the Florida Insurance Code
138	shall apply to captive insurers who are not industrial insured
139	captive insurers to the extent that such provisions are not
140	inconsistent with this part:
141	(a)  Chapter 624, except for ss. 624.407, 624.408,
142	624.4085, 624.40851, 624.4095, 624.425, and 624.426.
143	(3)  The following provisions of the Florida Insurance Code
144	shall apply to industrial insured captive insurers to the extent
145	that such provisions are not inconsistent with this part:
146	(a)  Chapter 624, except for ss. 624.407, 624.408,
147	624.4085, 624.40851, 624.4095, 624.425, 624.426, and 624.609(1).
148
149
150	-----------------------------------------------------
151	T I T L E  A M E N D M E N T
152	Between lines 80 and 81, insert:
153	amending s. 628.901, F.S.; providing definitions; repealing s.
154	628.903, F.S., relating to the definition of the term
155	"industrial insured captive insurer"; amending s. 628.905, F.S.;
156	requiring a captive insurer to obtain a license and to file
157	evidence that a person or firm with whom it intends to conduct
158	business is reputable; providing that a certificate of insurance
159	for an association captive insurer does not exceed the total
160	funds of the association members; creating s. 628.908, F.S.;
161	requiring a licensed captive insurer to maintain its principal
162	place of business in this state and hold an annual meeting in
163	this state; amending s. 628.909, F.S.; applying additional
164	provisions of the insurance code to captive insurers

CODING: Words stricken are deletions; words underlined are additions.