Florida Senate - 2014 COMMITTEE AMENDMENT Bill No. SB 952 Ì754784NÎ754784 LEGISLATIVE ACTION Senate . House Comm: WD . 04/07/2014 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— following: 1 Senate Amendment (with title amendment) 2 3 Before line 11 4 insert: 5 Section 1. 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 pooling and spreading liabilities of its members as to any one 13 or combination of securing the payment of benefits under chapter 14 440, surety risk, health risk, casualty risk, or real or 15 personal property risk of every kind and every interest in such 16 person or property against loss or damage from any hazard or 17 cause and against any loss consequential to such loss or damage, 18 provided the self-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 which is comprised entirely of 47 commissioners of public housing authorities that are members of 48 the public housing authority self-insurance fund or persons 49 appointed by the commissioners of public housing authorities 50 that are members of the public housing authority self-insurance 51 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 that clearly establish the liability of each member for 63 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 2 71 and insert: 72 An act relating to insurance; amending s. 624.46226, 73 F.S.; authorizing additional coverage through a self 74 insurance fund created by certain public housing 75 authorities; amending s.