Florida Senate - 2011                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 1355, 1st Eng.
       
       
       
       
       
       
                                Barcode 929406                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/2R          .                                
             05/04/2011 03:01 PM       .                                
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       Senator Smith moved the following:
       
    1         Senate Amendment to Amendment (404618) (with title
    2  amendment)
    3  
    4         Between lines 3914 and 3915
    5  insert:
    6         Section 79. Section 628.901, Florida Statutes, is amended
    7  to read:
    8         628.901 Definitions “Captive insurer” defined.—As used in
    9  For the purposes of this part, the term: except as provided in
   10  s. 628.903, a “captive insurer” is a domestic insurer
   11  established under part I to insure the risks of a specific
   12  corporation or group of corporations under common ownership
   13  owned by the corporation or corporations from which it accepts
   14  risk under a contract of insurance.
   15         (1) “Association” means a legal association of nursing
   16  homes, hospitals, skilled nursing facilities, assisted living
   17  facilities, or continuing care retirement communities.
   18         (2) “Association captive insurer” means a company that
   19  insures risks of the member organizations of the association and
   20  their affiliated companies.
   21         (3) “Captive insurer” means a pure captive insurer, an
   22  industrial insured captive insurer, or an association captive
   23  insurer domiciled in this state and formed or licensed under
   24  this part.
   25         (4) “Industrial insured” means an insured that:
   26         (a)Has gross assets in excess of $50 million;
   27         (b)Procures insurance through the use of a full-time
   28  employee of the insured who acts as an insurance manager or
   29  buyer or through the services of a person licensed as a property
   30  and casualty insurance agent, broker, or consultant in such
   31  person’s state of domicile;
   32         (c)Has at least 100 full-time employees; and
   33         (d)Pays annual premiums of at least $200,000 for each line
   34  of insurance purchased from the industrial insured captive
   35  insurer, or at least $75,000 for any line of coverage in excess
   36  of at least $25 million in the annual aggregate. The purchase of
   37  umbrella or general liability coverage in excess of $25 million
   38  in the annual aggregate is deemed to be the purchase of a single
   39  line of insurance.
   40         (5)“Industrial insured captive insurer” means a captive
   41  insurer that:
   42         (a)Has as its stockholders or members only industrial
   43  insureds that the captive insurer insures, or has as its sole
   44  stockholder a corporation whose sole stockholders are industrial
   45  insureds that the captive insurer insures; and
   46         1.Provides insurance only to the industrial insureds that
   47  are its stockholders or members, and affiliates thereof, or to
   48  the stockholders, and affiliates thereof, of its parent
   49  corporation; or
   50         2.Provides reinsurance only on risks written by insurers
   51  of industrial insureds who are the stockholders or members, and
   52  affiliates thereof, of the captive insurer, or the stockholders,
   53  and affiliates thereof, of the parent corporation of the captive
   54  insurer;
   55         (b)Maintains unimpaired capital and surplus of at least
   56  $20 million; and
   57         (c)If licensed in this state before December 31, 1999, or
   58  if any subsidiary formed by the licensed insurer on or after
   59  December 31, 1999, has:
   60         1.Gross assets in excess of $10 million and procures
   61  insurance through the use of a full-time employee of the insured
   62  who acts as an insurance manager or buyer or through the
   63  services of a person licensed as a property and casualty
   64  insurance agent, broker, or consultant in such person’s state of
   65  domicile;
   66         2.At least 25 full-time employees; and
   67         3.Annual aggregate premiums for all insurance risks which
   68  total at least $100,000.
   69  
   70  As used in this subsection, the term “affiliate” means a person
   71  that directly or indirectly, through one or more intermediaries,
   72  controls, is controlled by, or is under common control with one
   73  or more of the stockholders or members of an industrial insured
   74  captive insurer or one or more of the stockholders of the parent
   75  corporation of an industrial insured captive insurer.
   76         (6) “Pure captive insurer” means a company that insures the
   77  risks of its parent, affiliated companies, controlled
   78  unaffiliated businesses, or a combination thereof.
   79         Section 80. Section 628.903, Florida Statutes, is repealed.
   80         Section 81. Section 628.905, Florida Statutes, is amended
   81  to read:
   82         628.905 Licensing; authority.—In order to conduct insurance
   83  business in this state, a captive insurer must obtain a license
   84  from the office.
   85         (1) A Any captive insurer, if when permitted by its charter
   86  or articles of incorporation, may apply to the office for a
   87  license to provide commercial property, commercial casualty, and
   88  commercial marine insurance. coverage other than workers’
   89  compensation and employer’s liability insurance coverage, except
   90  that An industrial insured captive insurer may also apply for a
   91  license to provide workers’ compensation and employer’s
   92  liability insurance as set forth in subsection (5) (6).
   93         (2) A No captive insurer, other than an industrial insured
   94  captive insurer, may not shall insure or accept reinsurance on
   95  any risks other than those of its parent and affiliated
   96  companies.
   97         (3) In addition to information otherwise required by this
   98  code, each applicant captive insurer shall file with the office
   99  evidence:
  100         (a) Of the adequacy of the loss prevention program of its
  101  insureds.
  102         (b) That it intends to employ or contract with a reputable
  103  person or firm that possesses the appropriate expertise,
  104  experience, and character to manage the association captive
  105  insurer.
  106         (4) If an association captive insurer operates with
  107  separate cells or segregated accounts, a certificate of
  108  insurance used to satisfy financial responsibility laws shall be
  109  issued in an amount not exceeding the total funds in the
  110  segregated accounts or separate cells of each member
  111  organization of the association.
  112         (5)(4) An industrial insured captive insurer:
  113         (a) Need not be incorporated in this state if it has been
  114  validly incorporated under the laws of another jurisdiction;.
  115         (b)(5)An industrial insured captive insurer Is subject to
  116  all provisions of this part except as otherwise indicated; and.
  117         (c)(6)An industrial insured captive insurer May not
  118  provide workers’ compensation and employer’s liability insurance
  119  except in excess of at least $25 million in the annual
  120  aggregate.
  121         Section 82. Section 628.908, Florida Statutes, is created
  122  to read:
  123         628.908Principal place of business; annual meeting.—In
  124  order to conduct insurance business in this state, a licensed
  125  captive insurer must:
  126         (1) Maintain its principal place of business in this state;
  127  and
  128         (2) Annually hold in this state at least one board of
  129  directors’ meeting; or, in the case of a reciprocal insurer, one
  130  subscriber’s advisory committee meeting; or, in the case of a
  131  limited liability company, one managing board’s meeting.
  132         Section 83. Paragraph (a) of subsection (2) and paragraph
  133  (a) of subsection (3) of section 628.909, Florida Statutes, are
  134  amended to read:
  135         628.909 Applicability of other laws.—
  136         (2) The following provisions of the Florida Insurance Code
  137  shall apply to captive insurers who are not industrial insured
  138  captive insurers to the extent that such provisions are not
  139  inconsistent with this part:
  140         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
  141  624.40851, 624.4095, 624.425, and 624.426.
  142         (3) The following provisions of the Florida Insurance Code
  143  shall apply to industrial insured captive insurers to the extent
  144  that such provisions are not inconsistent with this part:
  145         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
  146  624.40851, 624.4095, 624.425, 624.426, and 624.609(1).
  147  
  148  ================= T I T L E  A M E N D M E N T ================
  149         And the title is amended as follows:
  150         Delete line 4420
  151  and insert:
  152         severability of the act; amending s. 628.901, F.S.;
  153         providing definitions; repealing s. 628.903, F.S.,
  154         relating to the definition of the term “industrial
  155         insured captive insurer”; amending s. 628.905, F.S.;
  156         requiring a captive insurer to obtain a license and to
  157         file evidence that a person or firm with whom it
  158         intends to conduct business is reputable; providing
  159         that a certificate of insurance for an association
  160         captive insurer does not exceed the total funds of the
  161         association members; creating s. 628.908, F.S.;
  162         requiring a licensed captive insurer to maintain its
  163         principal place of business in this state and hold an
  164         annual meeting in this state; amending s. 628.909,
  165         F.S.; applying additional provisions of the insurance
  166         code to captive insurers; providing effective dates.