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The Committee on Banking and Insurance (Gaetz) recommended the

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following amendment:

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     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1.  Subsection (5) of section 624.4621, Florida

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Statutes, is amended to read:

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     624.4621  Group self-insurance funds.--

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     (5)  A dividend or premium refund of any self-insurer

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established under this section, otherwise earned, may not be made

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contingent upon continued membership in the fund, renewal of any

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policy, or the payment of renewal premiums for membership in the

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fund or on any policy issued by such self-insurer.

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     (a) For any self-insurer licensed under this section before

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June 1, 2008, the board of trustees of the self-insurer may

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declare any moneys in excess of the amount necessary to fund all

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obligations of the self-insurer as refundable to the members or

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policyholders of the self-insurer. The board of trustees may

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distribute such dividends or premium refunds at the board's

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discretion, in accordance with the agreement establishing the

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self-insurer and subject to the following limitations:

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     1. The amount of the distribution may not exceed the total

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sum of the dividends declared and unpaid to policyholders and

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unassigned funds as recorded on the most recently completed

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audited financial statements of the self-insurer.

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     2. The payment of the dividend or premium refund may not

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jeopardize the financial condition of the self-insurer or result

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in the self-insurer having a negative unassigned funds balance.

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     3. Notice of the dividend shall be submitted to the office

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no later than 10 days after the date on which payment of a

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dividend or premium refund is made.

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     (b) For any self-insurer licensed under this section after

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June 1, 2008, such self-insurer must receive prior written

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approval from the office for any dividend or premium refunds

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during its first 7 years of operation.

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     (c) The notice or request submitted to the office for a

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dividend must contain Before making any dividend or premium

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refund, the group self-insurer shall submit to the office the

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following information:

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     1.(a) An Audited certified financial statements as of the

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most recently completed fund year statement.

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     2.(b) An Annual evaluations of loss reserves by a qualified

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independent actuary as of the most recently completed fund year

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report of financial condition.

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     (c) A loss reserve review by a qualified actuary.

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     (d) If a self-insurer does not make or declare a dividend

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or member distribution payable during a given fund year, the

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required information listed in paragraph (c) paragraphs (a)-(c)

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shall be submitted annually, no later than 7 months after the end

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of the group self-insurer's fund year. A request for such

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dividend or premium refund may not be made before the required

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information is filed.

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     (e) The notice or request submitted to the office request

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for such dividend or premium refund must include a resolution of

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the board of trustees of the group self-insurer stating the

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requesting approval of a specific amount that has been paid or

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that is sought to be paid to the members or policyholders to be

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distributed. A dividend, premium refund, or premium discount or

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credit must not discriminate on the basis of continued coverage

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or continued membership in the group self-insurer. The office

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shall review the request and shall issue a decision within 60

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days after the filing. Failure to issue a decision within 60 days

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constitutes an approval of the request. Any dividend or premium

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refund that approved by the office for distribution which cannot

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be paid to the applicable member or policyholder or former member

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or policyholder of the group self-insurer because the former

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member or policyholder cannot be reasonably located becomes shall

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become the property of the group self-insurer.

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     (f) The office shall issue a decision within 60 days after

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receiving a request for a dividend or premium refund.

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     Section 2.  This act shall take effect upon becoming a law.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     Delete everything before the enacting clause

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and insert:

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A bill to be entitled

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An act relating to group self-insurance funds; amending

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s. 624.4621, F.S.; authorizing the board of trustees of

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certain self-insurers to declare any moneys in excess of

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the amount necessary to fund all obligations of the

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self-insurer as refundable to the members or

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policyholders of the self-insurer; authorizing the board

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to distribute such dividends or premium refunds at the

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board's discretion, in accordance with the agreement

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establishing the self-insurer; providing limitations;

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requiring that such self-insurers receive prior written

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approval from the office for any dividend or premium

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refunds during a specified period after such self-

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insurers commence operations; requiring that a notice or

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request for refund contain certain information;

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providing for the submission of certain information to

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the Office of Insurance Regulation if a self-insurer

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does not make or declare a dividend or member

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distribution payable during a given fund year; requiring

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that the office issue a decision within a specified

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period after receiving a request; providing an effective

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date.

3/31/2008  8:45:00 AM     4-05964-08