Florida Senate - 2019                       CS for CS for SB 626
       
       
        
       By the Committees on Appropriations; and Banking and Insurance;
       and Senators Brandes and Broxson
       
       
       
       
       576-04191-19                                           2019626c2
    1                        A bill to be entitled                      
    2         An act relating to insurer guaranty associations;
    3         amending s. 631.713, F.S.; revising applicability of
    4         part III of ch. 631, F.S., as to health maintenance
    5         organizations, long-term care insurance benefits,
    6         certain health care benefits, and certain structured
    7         settlement annuity benefits; amending s. 631.716,
    8         F.S.; revising the number of members and composition
    9         of the Florida Life and Health Insurance Guaranty
   10         Association’s board of directors; specifying
   11         requirements relating to the director of the Florida
   12         Health Maintenance Organization Consumer Assistance
   13         Plan to be confirmed to the association’s board;
   14         specifying rights of the director or his or her
   15         alternate; deleting an obsolete provision; amending s.
   16         631.717, F.S.; adding the reissuance of covered
   17         policies to a list of duties of the association
   18         relating to insolvent insurers; providing
   19         construction; specifying duties of the association as
   20         to potential long-term care insurer impairments or
   21         insolvencies, sharing information, and providing
   22         assistance to the Florida Health Maintenance
   23         Organization Consumer Assistance Plan’s board of
   24         directors; revising applicability of a specified limit
   25         on the association’s liability for the contractual
   26         obligations of an insolvent insurer; conforming a
   27         provision to changes made by the act; requiring that
   28         the Department of Financial Services, rather than a
   29         receivership court, approve certain alternative
   30         policies or contracts; authorizing the board to file
   31         directly for actuarially justified rate or premium
   32         increases; amending s. 631.718, F.S.; specifying the
   33         calculation and allocation of Class B assessments for
   34         long-term care insurance; specifying a limit on
   35         certain assessments on a member insurer or member
   36         health maintenance organization; providing that the
   37         Financial Services Commission, rather than the
   38         department, prescribes the form of a certain
   39         certificate of contribution; providing that the Office
   40         of Insurance Regulation, rather than the department,
   41         approves certain assets shown on insurer financial
   42         statements; conforming provisions to changes made by
   43         the act; amending s. 631.721, F.S.; deleting an
   44         obsolete provision; revising the requirements of the
   45         association’s plan of operation relating to long-term
   46         care insurer impairments and insolvencies; conforming
   47         a cross-reference; creating s. 631.738, F.S.;
   48         providing that certain provisions do not apply to
   49         certain member insurers and health maintenance
   50         organizations; amending s. 631.816, F.S.; adding
   51         duties of the board of directors of the Florida Health
   52         Maintenance Organization Consumer Assistance Plan to
   53         conform to changes made by the act; amending s.
   54         631.818, F.S.; adding to the duties of the plan to
   55         conform to changes made by the act; amending s.
   56         631.819, F.S.; specifying requirements for long-term
   57         care insurer impairment and insolvency assessments for
   58         member health maintenance organizations; requiring the
   59         plan to issue certificates of contribution to member
   60         health maintenance organizations paying certain
   61         assessments; specifying requirements of, and the use
   62         of, such certificates; amending s. 631.820, F.S.;
   63         conforming provisions to changes made by the act;
   64         amending s. 631.821, F.S.; making a technical change;
   65         providing applicability; providing a directive to the
   66         Division of Law Revision; providing an effective date.
   67          
   68  Be It Enacted by the Legislature of the State of Florida:
   69  
   70         Section 1. Subsection (3) of section 631.713, Florida
   71  Statutes, is amended to read:
   72         631.713 Application of part.—
   73         (3) This part does not apply to:
   74         (a) That portion or part of a variable life insurance
   75  contract or variable annuity contract not guaranteed by an
   76  insurer.
   77         (b) That portion or part of any policy or contract under
   78  which the risk is borne by the policyholder.
   79         (c) Any policy or contract or part thereof assumed by the
   80  impaired or insolvent insurer under a contract of reinsurance,
   81  other than reinsurance for which assumption certificates have
   82  been issued.
   83         (d) Fraternal benefit societies as defined in s. 632.601.
   84         (e) Health maintenance organizations, except for
   85  assessments levied pursuant to ss. 631.715(2)(a)1.,
   86  631.718(3)(b), and 631.819(2)(c) for long-term care insurer
   87  impairments or insolvencies insurance.
   88         (f) Dental service plan insurance.
   89         (g) Pharmaceutical service plan insurance.
   90         (h) Optometric service plan insurance.
   91         (i) Ambulance service association insurance.
   92         (j) Preneed funeral merchandise or service contract
   93  insurance.
   94         (k) Prepaid health clinic insurance.
   95         (l) Any annuity contract or group annuity contract that is
   96  not issued to and owned by an individual, except to the extent
   97  of any annuity benefits:
   98         1. Guaranteed directly and not through an intermediary to
   99  an individual by an insurer under such contract or certificate;
  100         2. Under an annuity issued by an insurer under 26 U.S.C. s.
  101  408(b); or
  102         3. Under an annuity issued by an insurer and held by a
  103  custodian or trustee in accordance with 26 U.S.C. s. 408(a).
  104  
  105  This paragraph applies to every insolvency regardless of its
  106  date of inception, and an assessment base may not include
  107  premiums for such excluded products.
  108         (m) Any federal employees’ group policy or contract that,
  109  under 5 U.S.C. s. 8909(f), is prohibited from being subject to
  110  an assessment under s. 631.718.
  111         (n) Except as provided in this paragraph, a portion of a
  112  policy or contract, to the extent that the rate of interest on
  113  which the policy or contract is based, or the interest rate,
  114  crediting rate, or similar factor determined by use of an index
  115  or other external reference stated in the policy or contract
  116  employed in calculating returns or changes in value:
  117         1. Averaged over the period of 4 years immediately
  118  preceding the date on which the member insurer becomes an
  119  impaired or insolvent insurer under this part, whichever is
  120  earlier, exceeds the rate of interest determined by subtracting
  121  2 percentage points from Moody’s Corporate Bond Yield Average
  122  averaged for that same 4-year period or for such lesser period
  123  if the policy or contract was issued less than 4 years before
  124  the member insurer becomes an impaired or insolvent insurer
  125  under this part, whichever is earlier; and
  126         2. On and after the date on which the member insurer
  127  becomes an impaired or insolvent insurer under this part,
  128  whichever is earlier, exceeds the rate of interest determined by
  129  subtracting 3 percentage points from the most current version of
  130  Moody’s Corporate Bond Yield Average.
  131  
  132  This paragraph does not apply to any portion of a policy or
  133  contract, including a rider, which provides long-term care or
  134  any other health insurance benefit.
  135         (o) A portion of a policy or contract to the extent the
  136  policy or contract provides for interest or other changes in
  137  value to be determined by the use of an index or other external
  138  reference stated in the policy or contract, but which has not
  139  been credited to the policy or contract, or as to which the
  140  policy or contract owner’s rights are subject to forfeiture, as
  141  of the date the member insurer becomes an impaired or insolvent
  142  insurer under this part. However, if the interest or change in
  143  value is credited less frequently than annually as determined by
  144  using the procedures defined in the policy or contract, interest
  145  or change in value shall be credited by using the procedure
  146  defined in the policy or contract as if the contractual date of
  147  crediting interest or changing values was the date of impairment
  148  or insolvency, whichever is earlier, and shall not be subject to
  149  forfeiture.
  150         (p) A policy or contract providing any hospital, medical,
  151  prescription drug, or other health care benefits pursuant to
  152  Title XVIII (Medicare), Title XIX (Medicaid), or Title XXI (the
  153  Children’s Health Insurance Program) of the Social Security Act
  154  Medicare part C or part D or any regulations promulgated
  155  thereunder issued pursuant to Medicare Part C or Part D.
  156         (q)Structured settlement annuity benefits to which a
  157  payee, or a beneficiary if the payee is deceased, has
  158  transferred his or her rights in a structured settlement
  159  factoring transaction, as that term is defined in 26 U.S.C. s.
  160  5891(c)(3)(A).
  161         Section 2. Subsection (1) of section 631.716, Florida
  162  Statutes, is amended to read:
  163         631.716 Board of directors.—
  164         (1)(a) The board of directors of the association shall have
  165  at least 9, but no more than 11, members. The members shall be
  166  comprised of not fewer than five nor more than nine member
  167  insurers, serving terms as established in the plan of operation
  168  and 1 Florida Health Maintenance Organization Consumer
  169  Assistance Plan director confirmed pursuant to paragraph (b). At
  170  all times, at least 1 one member of the board must shall be a
  171  domestic insurer as defined in s. 624.06(1). The members of the
  172  board who are member insurers shall be elected by member
  173  insurers, subject to the approval of the department.
  174         (b)The board shall confirm, subject to the approval of the
  175  department, the Florida Health Maintenance Organization Consumer
  176  Assistance Plan director. The confirmed director must not be a
  177  member insurer serving on the board of the association. The
  178  director confirmed to the board must be designated by the
  179  Florida Health Maintenance Organization Consumer Assistance
  180  Plan’s board of directors to serve on the board and represent
  181  the interests of the Florida Health Maintenance Organization
  182  Consumer Assistance Plan and its board of directors. An
  183  individual serving as a Florida Health Maintenance Organization
  184  Consumer Assistance Plan director on the board must be a member
  185  of the Florida Health Maintenance Organization Consumer
  186  Assistance Plan’s board of directors. The Florida Health
  187  Maintenance Organization Consumer Assistance Plan director, or
  188  his or her alternate, has the right to be present at all
  189  meetings of the board and has full voting rights on all issues.
  190         (c) A vacancy on the board shall be filled for the
  191  remaining period of the term by a majority vote of the remaining
  192  board members, subject to the approval of the department. Prior
  193  to the selection of the initial board of directors and the
  194  organization of the association, the department shall give
  195  notice to all member insurers of the time and place of the
  196  organizational meeting. At the organizational meeting, each
  197  member insurer shall be entitled to one vote, in person or by
  198  proxy. If the board of directors is not elected within 60 days
  199  after notice of the organizational meeting, the department may
  200  appoint the initial members.
  201         Section 3. Present subsections (9) through (12) of section
  202  631.717, Florida Statutes, are redesignated as subsections (12)
  203  through (15), respectively, new subsections (9), (10), and (11)
  204  are added to that section, subsections (2) and (3), paragraph
  205  (c) of present subsection (9), and paragraph (g) of present
  206  subsection (12) are amended, and paragraph (h) is added to
  207  present subsection (12) of that section, to read:
  208         631.717 Powers and duties of the association.—
  209         (2) If a domestic insurer is an insolvent insurer, the
  210  association shall, subject to the approval of the department:
  211         (a) Guarantee, assume, reissue, or reinsure, or cause to be
  212  guaranteed, assumed, reissued, or reinsured, the covered
  213  policies of persons referred to in s. 631.713(2); and
  214         (b) Provide moneys, pledges, notes, guarantees, or other
  215  means that are proper and reasonably necessary to implement
  216  paragraph (a) in order to assure payment of the contractual
  217  obligations of the insolvent insurer with regard to persons
  218  referred to in s. 631.713(2).
  219         (3) If a foreign or alien insurer is an insolvent insurer,
  220  the association shall, subject to the approval of the
  221  department:
  222         (a) Guarantee, assume, reissue, or reinsure, or cause to be
  223  guaranteed, assumed, reissued, or reinsured, the covered
  224  policies of residents of this state; and
  225         (b) Provide moneys, pledges, notes, guarantees, or other
  226  means that are proper and reasonably necessary to implement
  227  paragraph (a) in order to assure payment of the contractual
  228  obligations of the insolvent insurer with regard to persons
  229  referred to in s. 631.713(2).
  230  
  231  However, this subsection does not apply when the department has
  232  determined that the foreign or alien insurer’s domiciliary
  233  jurisdiction or state of entry provides, by statute, protection
  234  substantially similar to that provided by this part for
  235  residents of this state.
  236         (9)For purposes of this part, benefits provided by a long
  237  term care rider to a life insurance policy or annuity contract
  238  are considered the same type of benefits as the base life
  239  insurance policy or annuity contract to which the rider relates.
  240         (10)In the event of a potential long-term care insurer
  241  impairment or insolvency, the association shall coordinate its
  242  activities with the Florida Health Maintenance Organization
  243  Consumer Assistance Plan, including the development of any plan
  244  for handling the administration of the impairment or insolvency.
  245         (11)The association shall share information, including
  246  data, with and assist, as applicable, the board of directors of
  247  the Florida Health Maintenance Organization Consumer Assistance
  248  Plan with the administration and collection of member health
  249  maintenance organization assessments for long-term care insurer
  250  impairments or insolvencies pursuant to ss. 631.715(2)(a)1.,
  251  631.718(3)(b), 631.818(2), and 631.819(2)(c).
  252         (12)(9) The association’s liability for the contractual
  253  obligations of the insolvent insurer must be as great as, but no
  254  greater than, the contractual obligations of the insurer in the
  255  absence of such insolvency, unless such obligations are reduced
  256  as permitted by subsection (4), but the aggregate liability of
  257  the association with respect to one life shall not exceed the
  258  following:
  259         (c) For all other benefits, including in long-term care
  260  policies, $300,000, including cash values, except as provided in
  261  paragraph (d).
  262  
  263  In no event is the association liable for any penalties or
  264  interest.
  265         (15)(12)
  266         (g) In carrying out its duties in connection with
  267  guaranteeing, assuming, reissuing, or reinsuring policies or
  268  contracts under subsections (2) and (3), the association may,
  269  subject to approval of the department receivership court, issue
  270  an alternative policy or contract to substitute coverage for a
  271  policy or contract providing that provides an interest rate,
  272  crediting rate, or similar factor that was determined by use of
  273  an index or other external reference stated in the policy or
  274  contract and employed in calculating returns or changes in value
  275  by issuing an alternative policy or contract. In lieu of the
  276  index or other external reference provided for in the original
  277  policy or contract, the alternative policy or contract must
  278  provide for a fixed interest rate, payment of dividends with
  279  minimum guarantees, or a different method for calculating
  280  interest or changes in value. In such case:
  281         1. There is no requirement for evidence of insurability,
  282  waiting period, or other exclusion that would not have applied
  283  under the replaced policy or contract.
  284         2. The alternative policy or contract shall be
  285  substantially similar to the replaced policy or contract in all
  286  other material terms.
  287         (h)In accordance with the terms and conditions of the
  288  policy or contract, the board may directly file for actuarially
  289  justified rate or premium increases for any policy or contract
  290  for which it provides coverage under this part.
  291         Section 4. Paragraph (b) of subsection (3), paragraph (a)
  292  of subsection (5), and subsection (8) of section 631.718,
  293  Florida Statutes, are amended to read:
  294         631.718 Assessments.—
  295         (3)
  296         (b)1. The amount of any Class B assessment, except for
  297  assessments related to long-term care insurance, must shall be
  298  allocated for assessment purposes among the accounts pursuant to
  299  an allocation formula, which may be based on the premiums or
  300  reserves of the impaired or insolvent insurer.
  301         2.The amount of the Class B assessment for long-term care
  302  insurance written by the impaired or insolvent insurer must be
  303  allocated according to a methodology included in the plan of
  304  operation and approved by the department. The methodology must
  305  provide for 50 percent of the assessment to be allocated to
  306  health member insurers and 50 percent to be allocated to life
  307  and annuity member insurers.
  308         3.For the purposes of the methodology outlined in
  309  subparagraph 2. and included in the plan of operation, the
  310  health member insurers’ share of the assessment must be
  311  calculated by including the assessable premiums of member health
  312  maintenance organizations of the Florida Health Maintenance
  313  Organization Consumer Assistance Plan.
  314         (5)(a)1. The total of all assessments upon a member insurer
  315  for each account may not in any one calendar year exceed 1
  316  percent of the sum of the insurer’s premiums written in this
  317  state regarding business covered by the account received during
  318  the 3 calendar years preceding the year in which the assessment
  319  is made, divided by three. If premium information for the 3-year
  320  period is not reasonably available for each member insurer, the
  321  association may use any reasonably available premium
  322  information.
  323         2.For long-term care insurer impairments and insolvencies
  324  only, the total assessments upon a member insurer or member
  325  health maintenance organization of the Florida Health
  326  Maintenance Organization Consumer Assistance Plan may not, in
  327  any 1 calendar year, exceed 0.5 percent of the sum of the member
  328  insurer’s or member health maintenance organization’s premiums
  329  written in this state regarding business covered by the account
  330  received during the calendar year preceding the year in which
  331  the assessment is made. If premium information is not reasonably
  332  available for each member insurer or member health maintenance
  333  organization of the Florida Health Maintenance Organization
  334  Consumer Assistance Plan, the association or the Florida Health
  335  Maintenance Organization Consumer Assistance Plan may use any
  336  reasonably available premium information.
  337         (8) The association shall issue to each member insurer
  338  paying an assessment under this part, other than a Class A
  339  assessment, a certificate of contribution, in a form prescribed
  340  by the commission department, for the amount of the assessment
  341  so paid. All outstanding certificates are of equal dignity and
  342  priority without reference to amounts or dates of issue. A
  343  certificate of contribution may be shown by the insurer in its
  344  financial statement as an asset in such form and for such
  345  amount, if any, and period of time as the office department
  346  approves. However, any amount offset pursuant to s. 631.72 may
  347  not be shown as an asset of the insurer on any of its financial
  348  statements.
  349         Section 5. Paragraph (b) of subsection (1), paragraph (f)
  350  of subsection (3), and subsection (4) of section 631.721,
  351  Florida Statutes, are amended to read:
  352         631.721 Plan of operation.—
  353         (1)
  354         (b) If the association fails to submit a suitable proposed
  355  plan of operation within 180 days following October 1, 1979, or
  356  If at any time thereafter the association fails to submit
  357  suitable amendments to the plan, the department shall, after
  358  notice and hearing, adopt such reasonable rules as are necessary
  359  to effectuate the provisions of this part. Such rules shall
  360  continue in force until modified by the department or superseded
  361  by a proposed plan submitted by the association and approved by
  362  the department.
  363         (3) The plan of operation shall, in addition to
  364  requirements enumerated elsewhere in this part:
  365         (f) Establish any additional procedures for assessments
  366  under s. 631.718, including procedures to share assessment
  367  information, including data, with and assist, as applicable, the
  368  board of directors of the Florida Health Maintenance
  369  Organization Consumer Assistance Plan with the administration,
  370  collection, and deposit of member health maintenance
  371  organization assessments for long-term care insurer impairments
  372  and insolvencies into the health account established under s.
  373  631.715.
  374         (4) The plan of operation may provide that any or all
  375  powers and duties of the association, except those under ss.
  376  631.717(13)(c) and 631.718 ss. 631.717(10)(c) and 631.718, are
  377  delegated to a corporation, association, or other organization
  378  which performs or will perform functions similar to those of
  379  this association, or its equivalent, in two or more states. Such
  380  a corporation, association, or organization shall be reimbursed
  381  for any payments made on behalf of the association and shall be
  382  paid for its performance of any function of the association. A
  383  delegation under this subsection shall take effect only with the
  384  approval of both the board of directors and the department and
  385  may be made only to a corporation, association, or organization
  386  which extends protection not substantially less favorable and
  387  effective than that provided by this part.
  388         Section 6. Section 631.738, Florida Statutes, is created to
  389  read:
  390         631.738 Applicability as to certain member insurers and
  391  health maintenance organizations.—The provisions of this part
  392  which relate to long-term care assessment obligations do not
  393  apply to:
  394         (1)Any member insurer or health maintenance organization
  395  that, on or before the effective date of this act, has been
  396  adjudged insolvent by a court of competent jurisdiction or has
  397  been determined by the department or by the office to be
  398  impaired.
  399         (2)Any nonprofit health maintenance organization that
  400  operates only in this state and whose statutory capital and
  401  surplus is less than $200 million as of December 31 of the year
  402  preceding the year in which the assessment is made.
  403         Section 7. Subsection (7) is added to section 631.816,
  404  Florida Statutes, to read:
  405         631.816 Board of directors.—
  406         (7)Subject to the approval of the department, the board
  407  shall designate one representative to serve as a member of the
  408  board of directors of the Florida Life and Health Insurance
  409  Guaranty Association pursuant to s. 631.716(1). The
  410  representative, or his or her alternate, has the right to be
  411  present during all meetings of the association board of
  412  directors and shall have full voting rights.
  413         Section 8. Present subsections (2) through (6) of section
  414  631.818, Florida Statutes, are redesignated as subsections (3)
  415  through (7), respectively, a new subsection (2) is added to that
  416  section, present subsection (4) is amended, present paragraph
  417  (f) of present subsection (6) is redesignated as paragraph (g),
  418  and a new paragraph (f) is added to that subsection, to read:
  419         631.818 Powers and duties of the plan.—
  420         (2)In the event of a long-term care insurer impairment or
  421  insolvency, pursuant to s. 631.819(2)(c), the plan shall:
  422         (a)Collect and transmit all information requested by the
  423  Florida Life and Health Insurance Guaranty Association for the
  424  association to determine the appropriate assessment base of the
  425  health insurance account pursuant to ss. 631.715(2)(a)1. and
  426  631.718(3)(b).
  427         (b)Levy and collect assessments from HMOs.
  428         (c)Coordinate the administration and collection of member
  429  HMO assessments for long-term care insurer impairments and
  430  insolvencies with the Florida Life and Health Insurance Guaranty
  431  Association.
  432         (5)(4) The plan may render assistance and advice to the
  433  department, at the department’s request, concerning
  434  rehabilitation, payment of claims, continuance of coverage, or
  435  the performance of other contractual obligations of any HMO
  436  subject to a delinquency proceeding or a proceeding under s.
  437  624.90.
  438         (7)(6) The plan may:
  439         (f)In the event of a long-term care insurer impairment or
  440  insolvency, coordinate with the Florida Life and Health
  441  Insurance Guaranty Association to carry out the responsibilities
  442  of the association for the limited purpose of the long-term care
  443  insurer impairment or insolvency, including the development of
  444  any plan for handling the administration of the impairment or
  445  insolvency.
  446         Section 9. Subsections (1) and (3) of section 631.819,
  447  Florida Statutes, are amended, paragraph (c) is added to
  448  subsection (2), and subsection (6) is added to that section, to
  449  read:
  450         631.819 Assessments.—
  451         (1) For the purposes of providing the funds necessary to
  452  carry out the powers and duties of the plan, the board of
  453  directors shall assess the member HMOs at such time and for such
  454  amounts as the board finds necessary. Assessments shall be due
  455  not less than 30 days after written notice to the member HMOs
  456  insurers.
  457         (2) Assessments for funds to meet the requirements of the
  458  plan with respect to an insolvent HMO shall not be made until
  459  necessary to implement the purposes of this part. In order to
  460  carry out its duties and powers under this part, upon the
  461  insolvency of an HMO, the plan shall levy and collect
  462  assessments as follows:
  463         (c)For the purposes of long-term care insurer impairment
  464  and insolvency assessments under s. 631.718(3)(b), member HMOs
  465  must be assessed in the same manner as member insurers of the
  466  Florida Life and Health Insurance Guaranty Association under
  467  part III of this chapter. Long-term care insurer impairment and
  468  insolvency assessments must be levied and collected by the plan
  469  pursuant to this part, deposited into the health insurance
  470  account established under s. 631.715, and used solely for long
  471  term care insurer impairment or insolvency obligations.
  472  Assessments collected from member HMOs are considered part of
  473  and satisfy the obligations of the health insurance account
  474  under ss. 631.715(2)(a)1. and 631.718(3)(b).
  475         (3) All assessments against HMOs, including long-term care
  476  insurer impairment and insolvency assessments, must shall be
  477  levied as a percentage of annual earned premium revenue for non
  478  Medicare and non-Medicaid contracts. In no event may the plan
  479  assess in any calendar year more than 0.5 percent of each HMO’s
  480  annual earned premium revenue for non-Medicare and non-Medicaid
  481  contracts.
  482         (6)The plan shall issue, in a form prescribed by the
  483  commission, a certificate of contribution to each member HMO
  484  paying a long-term care insurer impairment or insolvency
  485  assessment under this part for the amount of the assessment so
  486  paid. All outstanding certificates are of equal dignity and
  487  priority without reference to amounts or dates of issue. A
  488  certificate of contribution may be shown by the member HMO in
  489  its financial statement as an asset in such form and for such
  490  amount and period of time as the office approves. However, any
  491  amount offset pursuant to s. 631.828 may not be shown as an
  492  asset of the member HMO on any of its financial statements.
  493         Section 10. Paragraph (f) of subsection (3) and paragraph
  494  (a) of subsection (4) of section 631.820, Florida Statutes, are
  495  amended to read:
  496         631.820 Plan of operation.—
  497         (3) The plan of operation shall, in addition to
  498  requirements enumerated elsewhere in this part:
  499         (f) Establish any additional procedures for assessments
  500  under this part, including procedures to coordinate the
  501  administration and collection of member HMO assessments for
  502  long-term care insurer impairments and insolvencies with the
  503  board of directors of the Florida Life and Health Insurance
  504  Guaranty Association.
  505         (4)(a) The plan of operation may provide that any or all
  506  powers and duties of the plan, except those under ss.
  507  631.818(7)(b) and (c) and 631.819 ss. 631.818(6)(b) and (c) and
  508  631.819, are delegated to an administrator that which may be a
  509  corporation, association, or other organization that which
  510  performs or will perform functions similar to those of this
  511  plan, or its equivalent.
  512         Section 11. Subsection (2) of section 631.821, Florida
  513  Statutes, is amended to read:
  514         631.821 Powers and duties of the department.—
  515         (2) Any action of the board of directors of the plan may be
  516  appealed to the office by any member HMO if such appeal is taken
  517  within 21 days of the action being appealed; however, the HMO
  518  must comply with such action pending exhaustion of appeal under
  519  s. 631.818(2). Any appeal shall be promptly determined by the
  520  office, and final action or order of the office shall be subject
  521  to judicial review in a court of competent jurisdiction.
  522         Section 12. The amendments made by this act to ss. 631.713,
  523  631.717, 631.718, 631.721, 631.818, 631.819, and 631.820,
  524  Florida Statutes, apply only to assessments that result from a
  525  long-term care insurer being adjudged insolvent by a court of
  526  competent jurisdiction or being determined by the Office of
  527  Insurance Regulation to be impaired on or after the effective
  528  date of this act.
  529         Section 13. The Division of Law Revision is directed to
  530  replace the phrase “the effective date of this act” wherever it
  531  occurs in this act with the date this act becomes a law.
  532         Section 14. This act shall take effect upon becoming a law.