CS/HB 1161

1	A bill to be entitled
2	An act relating to group self-insurance funds; amending s.
3	624.4621, F.S.; authorizing the board of trustees of
4	certain self-insurers to declare any moneys in excess of
5	the amount necessary to fund all obligations of the self-
6	insurer as refundable to its members or policyholders;
7	authorizing the board to distribute such dividends or
8	premium refunds at its discretion, subject to certain
9	limitations; requiring certain self-insurers to submit to
10	the Office of Insurance Regulation a request to make or
11	declare a dividend or premium refund under certain
12	circumstances; requiring office approval to make or pay a
13	dividend or premium refund; requiring the office to issue
14	a decision within a time certain after receiving a request
15	to make or declare a dividend or premium refund; requiring
16	that a self-insurer submit certain information to the
17	office within a specified period after the payment of a
18	dividend or premium refund; deleting a provision
19	prohibiting a request for a dividend or premium refund
20	from being made before such information is submitted;
21	requiring that a self-insurer's written notice of dividend
22	or premium refund contain certain information; deleting
23	provisions relating to the required review and potential
24	approval of such dividend or premium refund by the office;
25	providing an effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1.  Subsection (5) of section 624.4621, Florida
30	Statutes, is amended to read:
31	624.4621  Group self-insurance funds.--
32	(5)  A dividend or premium refund of any self-insurer
33	established under this section, otherwise earned, may not be
34	made contingent upon continued membership in the fund, renewal
35	of any policy, or the payment of renewal premiums for membership
36	in the fund or on any policy issued by such self-insurer.
37	(a)  For any self-insurer established under this section
38	before June 1, 2008, the board of trustees of the self-insurer
39	may declare any moneys in excess of the amount necessary to fund
40	all obligations of the self-insurer as refundable to the members
41	or policyholders of the self-insurer. The board of trustees may
42	distribute such dividends or premium refunds at the board's
43	discretion, in accordance with the agreement establishing the
44	self-insurer and subject to the following limitations:
45	1.  The amount of the distribution may not exceed the sum
46	total of the dividends declared and unpaid to policyholders and
47	unassigned funds as recorded on the most recently completed
48	audited financial statements of the self-insurer.
49	2.  The payment of the dividend or premium refund may not
50	jeopardize the financial condition of the self-insurer or result
51	in the self-insurer having a negative unassigned funds balance.
52	3.  A notice of the dividend or premium refund shall be
53	submitted to the office no later than 10 days after the payment
54	of the dividend or premium refund.
55	(b)  For any self-insurer established under this section on
56	or after June 1, 2008, the self-insurer must submit to the
57	office a request to make or declare a dividend or premium refund
58	and receive prior written approval from the office for any
59	dividends or premium refunds payable during the first 7 years of
60	the self-insurer's operation. The office shall issue a decision
61	within 60 days after receiving a request to make or declare a
62	dividend or premium refund.
63	(c)  The notice or request submitted to the office to pay a
64	Before making any dividend or premium refund must contain, the
65	group self-insurer shall submit to the office the following
66	information:
67	1.(a)  An Audited certified financial statements as of the
68	most recently completed fund year statement.
69	2.(b)  An Annual evaluations of loss reserves by a
70	qualified independent actuary as of the most recently completed
71	fund year report of financial condition.
72	(c)  A loss reserve review by a qualified actuary.
73	(d)  If a self-insurer does not make or declare a dividend
74	or member distribution payable during a given fund year, the
75	required information listed in paragraph (c) paragraphs (a)-(c)
76	shall be submitted annually, no later than 7 months after the
77	end of the group self-insurer's fund year. A request for such
78	dividend or premium refund may not be made before the required
79	information is filed.
80	(e)  The notice or request submitted to the office for such
81	dividend or premium refund must include a resolution of the
82	board of trustees of the group self-insurer stating the
83	requesting approval of a specific amount that has been paid or
84	that is sought to be paid to the members or policyholders to be
85	distributed. A dividend, premium refund, or premium discount or
86	credit must not discriminate on the basis of continued coverage
87	or continued membership in the group self-insurer. The office
88	shall review the request and shall issue a decision within 60
89	days after the filing. Failure to issue a decision within 60
90	days constitutes an approval of the request. Any dividend or
91	premium refund that approved by the office for distribution
92	which cannot be paid to the applicable member or policyholder or
93	former member or policyholder of the group self-insurer because
94	the former member or policyholder cannot be reasonably located
95	shall become the property of the group self-insurer.
96	Section 2.  This act shall take effect upon becoming a law.

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