Bill No. CS/HB 1087
Amendment No. 305825
Senate House

1Representative Holder offered the following:
3     Amendment (with title amendment)
4     Between lines 773 and 774, insert:
5     Section 12.  Section 628.901, Florida Statutes, is amended
6to read:
7     628.901  Definitions "Captive insurer" defined.-As used in
8For the purposes of this part, the term: except as provided in
9s. 628.903, a "captive insurer" is a domestic insurer
10established under part I to insure the risks of a specific
11corporation or group of corporations under common ownership
12owned by the corporation or corporations from which it accepts
13risk under a contract of insurance.
14     (1)  "Association" means a legal association of nursing
15homes, hospitals, skilled nursing facilities, assisted living
16facilities, or continuing care retirement communities.
17     (2)  "Association captive insurer" means a company that
18insures risks of the member organizations of the association and
19their affiliated companies.
20     (3)  "Captive insurer" means a pure captive insurer, an
21industrial insured captive insurer, or an association captive
22insurer domiciled in this state and formed or licensed under
23this part.
24     (4)  "Industrial insured" means an insured that:
25     (a)  Has gross assets in excess of $50 million;
26     (b)  Procures insurance through the use of a full-time
27employee of the insured who acts as an insurance manager or
28buyer or through the services of a person licensed as a property
29and casualty insurance agent, broker, or consultant in such
30person's state of domicile;
31     (c)  Has at least 100 full-time employees; and
32     (d)  Pays annual premiums of at least $200,000 for each
33line of insurance purchased from the industrial insured captive
34insurer, or at least $75,000 for any line of coverage in excess
35of at least $25 million in the annual aggregate. The purchase of
36umbrella or general liability coverage in excess of $25 million
37in the annual aggregate is deemed to be the purchase of a single
38line of insurance.
39     (5)  "Industrial insured captive insurer" means a captive
40insurer that:
41     (a)  Has as its stockholders or members only industrial
42insureds that the captive insurer insures, or has as its sole
43stockholder a corporation whose sole stockholders are industrial
44insureds that the captive insurer insures; and
45     1.  Provides insurance only to the industrial insureds that
46are its stockholders or members, and affiliates thereof, or to
47the stockholders, and affiliates thereof, of its parent
48corporation; or
49     2.  Provides reinsurance only on risks written by insurers
50of industrial insureds who are the stockholders or members, and
51affiliates thereof, of the captive insurer, or the stockholders,
52and affiliates thereof, of the parent corporation of the captive
54     (b)  Maintains unimpaired capital and surplus of at least
55$20 million; and
56     (c)  If licensed in this state before December 31, 1999, or
57if any subsidiary formed by the licensed insurer on or after
58December 31, 1999, has:
59     1.  Gross assets in excess of $10 million and procures
60insurance through the use of a full-time employee of the insured
61who acts as an insurance manager or buyer or through the
62services of a person licensed as a property and casualty
63insurance agent, broker, or consultant in such person's state of
65     2.  At least 25 full-time employees; and
66     3.  Annual aggregate premiums for all insurance risks which
67total at least $100,000.
69As used in this subsection, the term "affiliate" means a person
70that directly or indirectly, through one or more intermediaries,
71controls, is controlled by, or is under common control with one
72or more of the stockholders or members of an industrial insured
73captive insurer or one or more of the stockholders of the parent
74corporation of an industrial insured captive insurer.
75     (6)  "Pure captive insurer" means a company that insures
76the risks of its parent, affiliated companies, controlled
77unaffiliated businesses, or a combination thereof.
78     Section 13.  Section 628.903, Florida Statutes, is
80     Section 14.  Section 628.905, Florida Statutes, is amended
81to read:
82     628.905  Licensing; authority.-In order to conduct
83insurance business in this state, a captive insurer must obtain
84a license from the office.
85     (1)  A Any captive insurer, if when permitted by its
86charter or articles of incorporation, may apply to the office
87for a license to provide commercial property, commercial
88casualty, and commercial marine insurance. coverage other than
89workers' compensation and employer's liability insurance
90coverage, except that An industrial insured captive insurer may
91also apply for a license to provide workers' compensation and
92employer's liability insurance as set forth in subsection (5)
94     (2)  A No captive insurer, other than an industrial insured
95captive insurer, may not shall insure or accept reinsurance on
96any risks other than those of its parent and affiliated
98     (3)  In addition to information otherwise required by this
99code, each applicant captive insurer shall file with the office
101     (a)  Of the adequacy of the loss prevention program of its
103     (b)  That it intends to employ or contract with a reputable
104person or firm that possesses the appropriate expertise,
105experience, and character to manage the association captive
107     (4)  If an association captive insurer operates with
108separate cells or segregated accounts, a certificate of
109insurance used to satisfy financial responsibility laws shall be
110issued in an amount not exceeding the total funds in the
111segregated accounts or separate cells of each member
112organization of the association.
113     (5)(4)  An industrial insured captive insurer:
114     (a)  Need not be incorporated in this state if it has been
115validly incorporated under the laws of another jurisdiction;.
116     (b)(5)  An industrial insured captive insurer Is subject to
117all provisions of this part except as otherwise indicated; and.
118     (c)(6)  An industrial insured captive insurer May not
119provide workers' compensation and employer's liability insurance
120except in excess of at least $25 million in the annual
122     Section 15.  Section 628.908, Florida Statutes, is created
123to read:
124     628.908  Principal place of business; annual meeting.-In
125order to conduct insurance business in this state, a licensed
126captive insurer must:
127     (1)  Maintain its principal place of business in this
128state; and
129     (2)  Annually hold in this state at least one board of
130directors' meeting; or, in the case of a reciprocal insurer, one
131subscriber's advisory committee meeting; or, in the case of a
132limited liability company, one managing board's meeting.
133     Section 16.  Paragraph (a) of subsection (2) and paragraph
134(a) of subsection (3) of section 628.909, Florida Statutes, are
135amended to read:
136     628.909  Applicability of other laws.-
137     (2)  The following provisions of the Florida Insurance Code
138shall apply to captive insurers who are not industrial insured
139captive insurers to the extent that such provisions are not
140inconsistent with this part:
141     (a)  Chapter 624, except for ss. 624.407, 624.408,
142624.4085, 624.40851, 624.4095, 624.425, and 624.426.
143     (3)  The following provisions of the Florida Insurance Code
144shall apply to industrial insured captive insurers to the extent
145that such provisions are not inconsistent with this part:
146     (a)  Chapter 624, except for ss. 624.407, 624.408,
147624.4085, 624.40851, 624.4095, 624.425, 624.426, and 624.609(1).
T I T L E  A M E N D M E N T
152     Between lines 80 and 81, insert:
153amending s. 628.901, F.S.; providing definitions; repealing s.
154628.903, F.S., relating to the definition of the term
155"industrial insured captive insurer"; amending s. 628.905, F.S.;
156requiring a captive insurer to obtain a license and to file
157evidence that a person or firm with whom it intends to conduct
158business is reputable; providing that a certificate of insurance
159for an association captive insurer does not exceed the total
160funds of the association members; creating s. 628.908, F.S.;
161requiring a licensed captive insurer to maintain its principal
162place of business in this state and hold an annual meeting in
163this state; amending s. 628.909, F.S.; applying additional
164provisions of the insurance code to captive insurers

CODING: Words stricken are deletions; words underlined are additions.