Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS/SB 1770, 1st Eng.
       
       
       
       
       
       
                                Barcode 619424                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: WD/3R          .                                
             04/25/2013 03:18 PM       .                                
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       Senator Thompson moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 266 and 267
    4  insert:
    5         Section 3. Subsection (1) of section 624.46226, Florida
    6  Statutes, is amended to read:
    7         624.46226 Public housing authorities self-insurance funds;
    8  exemption for taxation and assessments.—
    9         (1) Notwithstanding any other provision of law, any two or
   10  more public housing authorities in the state as defined in
   11  chapter 421 may form a self-insurance fund for the purpose of
   12  securing the payment of benefits under chapter 440 or for
   13  pooling and spreading liabilities of its members as to any one
   14  or combination of casualty risk or real or personal property
   15  risk of any every kind or and every interest in such property
   16  against loss or damage from any hazard or cause and against any
   17  loss consequential to such loss or damage if, provided the self
   18  insurance fund that is created:
   19         (a) Has annual normal premiums in excess of $5 million.
   20         (b) Uses a qualified actuary to determine rates using
   21  accepted actuarial principles and annually submits to the office
   22  a certification by the actuary that the rates are actuarially
   23  sound and are not inadequate, as defined in s. 627.062.
   24         (c) Uses a qualified actuary to establish reserves for loss
   25  and loss adjustment expenses and annually submits to the office
   26  a certification by the actuary that the loss and loss adjustment
   27  expense reserves are adequate. If the actuary determines that
   28  reserves are not adequate, the fund shall file with the office a
   29  remedial plan for increasing the reserves or otherwise
   30  addressing the financial condition of the fund, subject to a
   31  determination by the office that the fund will operate on an
   32  actuarially sound basis and the fund does not pose a significant
   33  risk of insolvency.
   34         (d) Maintains a continuing program of excess insurance
   35  coverage and reserve evaluation to protect the financial
   36  stability of the fund in an amount and manner determined by a
   37  qualified and independent actuary. At a minimum, this program
   38  must:
   39         1. Purchase excess insurance from authorized insurance
   40  carriers or eligible surplus lines insurers.
   41         2. Retain a per-loss occurrence that does not exceed
   42  $350,000.
   43         (e) Submits to the office annually an audited fiscal year
   44  end financial statement by an independent certified public
   45  accountant within 6 months after the end of the fiscal year.
   46         (f) Has a governing body that which is comprised entirely
   47  of commissioners of public housing authorities who that are
   48  members of the public housing authority self-insurance fund or
   49  persons appointed by the commissioners of public housing
   50  authorities that are members of the public housing authority
   51  self-insurance fund.
   52         (g) Uses knowledgeable persons or business entities to
   53  administer or service the fund in the areas of claims
   54  administration, claims adjusting, underwriting, risk management,
   55  loss control, policy administration, financial audit, and legal
   56  areas. Such persons must meet all applicable requirements of law
   57  for state licensure and must have at least 5 years’ experience
   58  with commercial self-insurance funds formed under s. 624.462,
   59  self-insurance funds formed under s. 624.4622, or domestic
   60  insurers.
   61         (h) Submits to the office copies of contracts used for its
   62  members which that clearly establish the liability of each
   63  member for the obligations of the fund.
   64         (i) Annually submits to the office a certification by the
   65  governing body of the fund that, to the best of its knowledge,
   66  the requirements of this section are met.
   67  
   68  ================= T I T L E  A M E N D M E N T ================
   69         And the title is amended as follows:
   70         Delete line 9
   71  and insert:
   72         sovereign immunity; amending s. 626.46226, F.S.;
   73         authorizing two or more public housing authorities to
   74         form a self-insurance fund for the purpose of securing
   75         the payment of workers’ compensation benefits;
   76         amending s. 626.752, F.S.,