Florida Senate - 2013                                     SB 810
       
       
       
       By Senator Simmons
       
       
       
       
       10-00718A-13                                           2013810__
    1                        A bill to be entitled                      
    2         An act relating to wrap-up insurance policies;
    3         creating s. 627.4138, F.S.; providing definitions;
    4         providing that wrap-up insurance policies may include
    5         workers’ compensation claim deductibles equal to or
    6         greater than a specified amount if specified standards
    7         are met; providing an effective date.
    8  
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Section 627.4138, Florida Statues, is created to
   12  read:
   13         627.4138 Wrap-up insurance policies for nonpublic
   14  construction projects.—
   15         (1) As used in this section, the term:
   16         (a) “Specified contracted work site” means construction
   17  being performed during one or more policy years at one site or
   18  multiple sites of the same construction project.
   19         (b) “Wrap-up insurance policy” means policies issued to the
   20  nonpublic owner or the general contractor of a construction
   21  project through a consolidated insurance program which may
   22  provide general liability, property damage liability, workers’
   23  compensation, employers’ liability, pollution liability
   24  insurance coverage, or a combination of such coverages for the
   25  contractors and subcontractors working at a specified contracted
   26  work site of the construction project.
   27         (2) A wrap-up insurance policy may include a deductible of
   28  $100,000 or more for workers’ compensation claims if:
   29         (a) The workers’ compensation minimum standard premium
   30  calculated on the combined payrolls for all entities covered by
   31  the policy exceeds $500,000;
   32         (b) The estimated total cost of the project is $25 million
   33  or more;
   34         (c) The insurer is obligated to pay the first dollar of a
   35  claim like any other workers’ compensation policy without a
   36  deductible;
   37         (d) The reimbursement of the deductible by the insured does
   38  not affect the insurer’s obligation to pay claims;
   39         (e) The insurer complies with all the filing requirements
   40  of the Department of Financial Services under chapter 440 for
   41  all losses, including those below the deductible limit;
   42         (f) The insurer files unit statistical reports with the
   43  National Council on Compensation Insurance which show all
   44  losses, including those below the deductible limit;
   45         (g) The unit statistical reports necessary for the
   46  calculation of an experience modification factor for the insured
   47  are filed with National Council on Compensation Insurance;
   48         (h) The insurer complies with National Council on
   49  Compensation Insurance aggregate financial calls, detail claim
   50  information calls, unit statistical reporting, and other
   51  required calls; and
   52         (i) The insurer has an established program for having the
   53  first named insured reimburse the insurer for losses paid within
   54  the deductible.
   55         Section 2. This act shall take effect July 1, 2013.