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.
   13  Be It Enacted by the Legislature of the State of Florida:
   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 shall be 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  shall be 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.