Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1620
       
       
       
       
       
       
                                Barcode 910484                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/01/2012           .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Budget Subcommittee on General Government
       Appropriations (Hays) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 119 and 120
    4  insert:
    5         Section 2. Paragraph (e) of subsection (1) of section
    6  624.4625, Florida Statutes, is amended, present subsection (5)
    7  of that section is renumbered as subsection (6), and a new
    8  subsection (5) is added to that section, to read:
    9         624.4625 Corporation not for profit self-insurance funds.—
   10         (1) Notwithstanding any other provision of law, any two or
   11  more corporations not for profit located in and organized under
   12  the laws of this state may form a self-insurance fund for the
   13  purpose of pooling and spreading liabilities of its group
   14  members in any one or combination of property or casualty risk,
   15  provided the corporation not for profit self-insurance fund that
   16  is created:
   17         (e) Maintains a continuing program of excess insurance
   18  coverage and reserve evaluation to protect the financial
   19  stability of the fund in an amount and manner determined by a
   20  qualified actuary. At a minimum, this program must:
   21         1. Purchase excess insurance from authorized insurance
   22  carriers or eligible surplus lines insurers or reinsurers.
   23         2. Retain a per-loss occurrence that does not exceed
   24  $350,000.
   25         (5) A corporation not for profit self-insurance fund formed
   26  under this section, which is hereby deemed to be an association
   27  in compliance with s. 627.654, may purchase for its members, on
   28  a group basis, any one or more policies of health, accident, or
   29  hospitalization coverage, if:
   30         (a) An insurance policy purchased to provide coverage under
   31  this subsection is purchased only from an authorized insurance
   32  company that participates in the Florida Life and Health
   33  Insurance Guaranty Association and the policy forms have been
   34  filed with and approved by the office;
   35         (b) The corporation not for profit self-insurance fund
   36  retains no risk related to coverage provided under this
   37  subsection;
   38         (c) An insurance policy purchased to provide coverage under
   39  this subsection is not subject to the restrictions relating to
   40  the premium rates for small employer groups under chapter 627;
   41  and
   42         (d) The premium paid for an insurance policy purchased
   43  pursuant to paragraph (a) does not count toward the $5 million
   44  requirement in paragraph (1)(a).
   45  
   46  An individual not-for-profit entity participating as a member of
   47  the association for the purchase of a master health, accident,
   48  or hospitalization policy by the association under this
   49  subsection may retain its individual insurance agent and the
   50  agent shall be deemed an additional agent of record for the
   51  master policy issued to the association.
   52  
   53  ================= T I T L E  A M E N D M E N T ================
   54         And the title is amended as follows:
   55         Between lines 5 and 6
   56  insert:
   57         amending s. 624.4625, F.S.; authorizing corporation
   58         not for profit self-insurance funds that are required
   59         to maintain a continuing program of excess insurance
   60         coverage and reserve evaluation to purchase excess
   61         insurance from eligible surplus lines insurers or
   62         reinsurers; authorizing certain corporation not for
   63         profit self-insurance funds to purchase certain group
   64         insurance coverage for its members; providing
   65         requirements and conditions relating to such
   66         purchases;