The Florida Senate

620.7851  Insurance of registered limited liability partnerships.--

(1)  A registered limited liability partnership must:

(a)  Carry at least the minimum coverage amount of liability insurance that covers the errors, omissions, negligence, malpractice, or wrongful acts for which liability is limited by ¹s. 620.782(1) and which liability insurance may not have a deductible or self-insured retention per claim of more than 10 percent of the per-claim policy limit unless the difference between the maximum permitted deductible or self-insured retention and the actual deductible or self-insured retention under the liability insurance is otherwise funded as provided in paragraph (b); or

(b)  Provide at least the minimum coverage amount in funds specifically designated and segregated for the satisfaction of judgments against the partnership or its partners based on the types of errors, omissions, negligence, incompetence, malpractice, or wrongful acts for which liability is limited by ¹s. 620.782(1). Such funds must be provided by obtaining or maintaining an unexpired, irrevocable letter of credit for an amount no less than the minimum coverage amount. The letter of credit must be payable to the partnership, or to a paying agent of the partnership, as beneficiary for payment to creditors under a final judgment or settlement arising from the types of errors, omissions, negligence, incompetence, malpractice, or wrongful acts for which liability is limited by ¹s. 620.782(1). The letter of credit shall be payable upon presentation of a final judgment indicating liability and awarding damages to be paid by the partnership or upon presentment of a settlement agreement signed by all parties to the agreement when the final judgment or settlement is a result of a claim against the partnership. The letter of credit must be irrevocable, nonassignable, and nontransferable, except that the letter of credit may be replaced by liability insurance that complies with paragraph (a). Such letter of credit must have been issued by any bank or savings association organized and existing under the laws of this state or any bank or savings association organized under the laws of the United States that has its principal place of business in this state or has a branch office that is authorized under the laws of this state or of the United States to receive deposits in this state.

(2)  As used in this section, the term "minimum coverage amount" means $100,000 multiplied by the number of general partners in excess of one, but the minimum coverage amount may not be less than $200,000 or greater than $3 million.

(3)  If a registered limited liability partnership complies with the requirements of subsection (1), the requirements of this section are not admissible as evidence and may in no way be made known to a jury in determining any issue of liability for or extent of any debt, obligation, or damages in question.

(4)  The minimum coverage amount requirements of this section do not limit the liability of or damages recoverable from a registered limited liability partnership or of any person or entity whose liability is not otherwise limited as provided in ss. 620.78-²620.789.

History.--s. 6, ch. 95-242; s. 6, ch. 95-409.

¹Note.--Substituted for a reference to s. 620.79(1) by the editors to conform to the renumbering of s. 620.79 by the reviser incident to the compilation of the Florida Statutes 1995.

²Note.--Substituted for a reference to s. 620.85 by the editors to conform to the renumbering of s. 620.85 by the reviser incident to the compilation of the Florida Statutes 1995.