Florida Senate - 2018                                    SB 1866
       
       
        
       By Senator Broxson
       
       
       
       
       
       1-01585A-18                                           20181866__
    1                        A bill to be entitled                      
    2         An act relating to loss-sensitive workers’
    3         compensation insurance programs; amending s. 627.072,
    4         F.S.; defining terms; providing that a qualified
    5         insurer’s form for offering a qualified loss-sensitive
    6         program of reinsurance, which accompanies the issuance
    7         of a certain guaranteed cost workers’ compensation
    8         insurance policy to a qualified insured, must be filed
    9         with the Office of Insurance Regulation but does not
   10         require approval; amending s. 627.4102, F.S.;
   11         providing an exemption for certain qualified loss
   12         sensitive programs of reinsurance; providing an
   13         effective date.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Subsection (6) is added to section 627.072,
   18  Florida Statutes, to read:
   19         627.072 Making and use of rates.—
   20         (6)(a) As used in this subsection, the term:
   21         1. “Guaranteed cost workers’ compensation insurance policy”
   22  means a workers’ compensation policy that is based on approved
   23  rates multiplied by applicable class codes and is not changed by
   24  losses in the period for which it is issued.
   25         2. “Qualified insured” means an insured that has its
   26  principal place of business in this state and has an annual
   27  workers’ compensation premium of at least $500,000.
   28         3. “Qualified insurer” means an insurance company that:
   29         a. Is authorized to transact insurance in this state.
   30         b. Has a combined loss ratio of less than 100 on January 1
   31  of the 2 preceding years.
   32         c. Has assets in excess of $500 million on January 1 of the
   33  year in which the guaranteed cost workers’ compensation
   34  insurance policy is issued.
   35         d. Has a rating of A+ from A.M. Best.
   36         4. “Qualified loss-sensitive program of reinsurance” means
   37  an offering that:
   38         a. Is issued to the same insured in connection with a
   39  guaranteed cost workers’ compensation insurance policy.
   40         b. Is effected through a separate reinsurance arrangement
   41  with a reinsurer admitted in a state accredited by the National
   42  Association of Insurance Commissioners (NAIC).
   43         c. Provides that the insured may participate in the
   44  underwriting profit or risk that is associated with the
   45  guaranteed cost workers’ compensation insurance policy issued to
   46  that insured and is maintained in a segregated cell account.
   47         d. Contains a minimum and maximum loss participation limit.
   48         (b) If a qualified insurer in this state issues a
   49  guaranteed cost workers’ compensation insurance policy on an
   50  approved form and with approved rates to a qualified insured, an
   51  accompanying form governing a qualified loss-sensitive program
   52  of reinsurance must be filed with the office for informational
   53  purposes but does not require approval from the commissioner of
   54  the office.
   55         Section 2. Subsection (1) of section 627.4102, Florida
   56  Statutes, is amended to read:
   57         627.4102 Informational filing of forms.—
   58         (1) Property and casualty forms, except workers’
   59  compensation and personal lines forms, and forms governing a
   60  qualified loss-sensitive program of reinsurance, as defined in
   61  s. 627.072(6), are exempt from the approval process required
   62  under s. 627.410 if:
   63         (a) The form has been electronically submitted to the
   64  office in an informational filing made through I-File 30 days
   65  before the delivery or issuance for delivery of the form within
   66  this state; and
   67         (b) At the time the informational filing is made, a
   68  notarized certification is attached to the filing that certifies
   69  that each form within the filing is in compliance with all
   70  applicable state laws and rules. The certification must be on
   71  the insurer’s letterhead and signed and dated by the insurer’s
   72  president, chief executive officer, general counsel, or an
   73  employee of the insurer responsible for the filing on behalf of
   74  the insurer. The certification must contain the following
   75  statement, and no other language: “I, ...(name)..., as
   76  ...(title)... of ...(insurer name)..., do hereby certify that
   77  this form filing has been thoroughly and diligently reviewed by
   78  me and by all appropriate company personnel, as well as company
   79  consultants, if applicable, and certify that each form contained
   80  within the filing is in compliance with all applicable Florida
   81  laws and rules. Should a form be found not to be in compliance
   82  with Florida laws and rules, I acknowledge that the Office of
   83  Insurance Regulation shall disapprove the form.”
   84         Section 3. This act shall take effect July 1, 2018.