1

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 the members or policyholders of

7

the self-insurer; authorizing the board to distribute such

8

dividends or premium refunds at the board's discretion, in

9

accordance with the agreement establishing the self-

10

insurer; providing limitations; requiring that such self-

11

insurers receive prior written approval from the office

12

for any dividend or premium refunds during a specified

13

period after such self-insurers commence operations;

14

requiring that a notice or request for refund contain

15

certain information; providing for the submission of

16

certain information to the Office of Insurance Regulation

17

if a self-insurer does not make or declare a dividend or

18

member distribution payable during a given fund year;

19

requiring that the office issue a decision within a

20

specified period after receiving a request; providing an

21

effective date.

22

23

Be It Enacted by the Legislature of the State of Florida:

24

25

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

26

Statutes, is amended to read:

27

     624.4621  Group self-insurance funds.--

28

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

29

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

30

contingent upon continued membership in the fund, renewal of any

31

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

32

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

33

     (a) For any self-insurer established under this section

34

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

35

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

36

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

37

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

38

distribute such dividends or premium refunds at the board's

39

discretion, in accordance with the agreement establishing the

40

self-insurer and subject to the following limitations:

41

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

42

sum of the dividends declared and unpaid to policyholders and

43

unassigned funds as recorded on the most recently completed

44

audited financial statements of the self-insurer.

45

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

46

jeopardize the financial condition of the self-insurer or result

47

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

48

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

49

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

50

dividend or premium refund is made.

51

     (b) For any self-insurer established under this section

52

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

53

approval from the office for any dividend or premium refunds

54

during its first 7 years of operation. The office shall issue a

55

decision within 60 days after receiving a request for a dividend

56

or premium refund.

57

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

58

dividend must contain Before making any dividend or premium

59

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

60

following information:

61

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

62

most recently completed fund year statement.

63

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

64

independent actuary as of the most recently completed fund year

65

report of financial condition.

66

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

67

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

68

or member distribution payable during a given fund year, the

69

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

70

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

71

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

72

dividend or premium refund may not be made before the required

73

information is filed.

74

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

75

for such dividend or premium refund must include a resolution of

76

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

77

requesting approval of a specific amount that has been paid or

78

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

79

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

80

credit must not discriminate on the basis of continued coverage

81

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

82

shall review the request and shall issue a decision within 60

83

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

84

constitutes an approval of the request. Any dividend or premium

85

refund that approved by the office for distribution which cannot

86

be paid to the applicable member or policyholder or former member

87

or policyholder of the group self-insurer because the former

88

member or policyholder cannot be reasonably located becomes shall

89

become the property of the group self-insurer.

90

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