Florida Senate - 2019 CS for SB 264 By the Committee on Banking and Insurance; and Senator Gruters 597-02917-19 2019264c1 1 A bill to be entitled 2 An act relating to the Florida Workers’ Compensation 3 Joint Underwriting Association; amending s. 627.311, 4 F.S.; providing that certain dividends or premium 5 refunds must be retained by the association’s joint 6 underwriting plan of insurers as surplus, subject to 7 specified diligent search and notification 8 requirements and subject to certain claims by former 9 insureds; defining the terms “diligent search” and 10 “active notification attempt”; providing an effective 11 date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Paragraph (h) of subsection (5) of section 16 627.311, Florida Statutes, is amended to read: 17 627.311 Joint underwriters and joint reinsurers; public 18 records and public meetings exemptions.— 19 (5) 20 (h)1. Any premium or assessments collected by the plan in 21 excess of the amount necessary to fund projected ultimate 22 incurred losses and expenses of the plan and not paid to 23 insureds of the plan in conjunction with loss prevention or 24 dividend programs must
shallbe retained by the plan for future 25 use. 26 2. Any state funds received by the plan in excess of the 27 amount necessary to fund deficits in subplan D or any tier must 28 shallbe returned to the state. 29 3. Any dividend or premium refund not paid to a former 30 insured of the plan because the insured cannot be located must 31 be retained by the plan as surplus, subject to the following 32 conditions: 33 a. Within 12 months after the failed initial delivery of 34 the dividend or premium refund, the plan shall: 35 (I) Conduct a diligent search to locate the former insured. 36 As used in this sub-subparagraph, the term “diligent search” 37 means the use of a reasonable and prudent method under 38 particular circumstances to locate a former insured to whom a 39 dividend or premium refund is owed. Such method includes 40 searching a nationwide database by using the taxpayer 41 identification number or social security number, if known; 42 cross-indexing with other records related to the former insured; 43 mailing to the last known address unless the last known address 44 is known to be inaccurate; or engaging a licensed agency or 45 company capable of conducting such search and providing an 46 updated address. 47 (II) Notify the insurance agency on the policy of such 48 dividend or premium refund. Notification to the insurance agency 49 does not constitute notification to the former insured and does 50 not make the insurance agency responsible for the dividend or 51 premium refund. 52 (III) For an unclaimed dividend or premium refund valued at 53 $250 or more, make at least one active notification attempt 54 after completing the diligent search. As used in this sub-sub 55 subparagraph, the term “active notification attempt” means an 56 attempt to directly contact a former insured to notify him or 57 her of an unclaimed dividend or premium refund. The term does 58 not include other means of notification which do not involve an 59 attempt to directly contact the former insured, such as 60 publication of the name of the former insured in a newspaper, on 61 television, on the Internet, or through other promotional 62 efforts and items. 63 b. The plan shall publish and maintain on the plan’s 64 website a list of the names of the former insureds who have 65 unclaimed dividend or premium refunds and the amount of the 66 dividend or premium refunds owed. 67 c. Notwithstanding s. 95.11, a former insured with 68 satisfactory proof may claim any such dividend or premium refund 69 from the plan at any time. 70 Section 2. This act shall take effect July 1, 2019.