Bill No. CS/CS/CS/SB 408
Amendment No. 223569
Senate House

1Representative Nuñez offered the following:
3     Amendment to Amendment (399507) (with title amendment)
4     Between lines 177 and 178, insert:
5     Section 7.  Section 624.46226, Florida Statutes, is amended
6to read:
7     624.46226  Public housing authorities self-insurance funds;
8exemption for taxation and assessments.-
9     (1)  Notwithstanding any other provision of law, any two or
10more public housing authorities in the state as defined in
11chapter 421 may form a self-insurance fund for the purpose of
12pooling and spreading liabilities of its members as to any one
13or combination of casualty risk or real or personal property
14risk of every kind and every interest in such property against
15loss or damage from any hazard or cause and against any loss
16consequential to such loss or damage, provided the self-
17insurance fund that is created:
18     (a)  Has annual normal premiums in excess of$3.5 $5
20     (b)  Uses a qualified actuary to determine rates using
21accepted actuarial principles and annually submits to the office
22a certification by the actuary that the rates are actuarially
23sound and are not inadequate, as defined in s. 627.062.
24     (c)  Uses a qualified actuary to establish reserves for
25loss and loss adjustment expenses and annually submits to the
26office a certification by the actuary that the loss and loss
27adjustment expense reserves are adequate. If the actuary
28determines that reserves are not adequate, the fund shall file
29with the office a remedial plan for increasing the reserves or
30otherwise addressing the financial condition of the fund,
31subject to a determination by the office that the fund will
32operate on an actuarially sound basis and the fund does not pose
33a significant risk of insolvency.
34     (d)  Maintains a continuing program of excess insurance
35coverage and reserve evaluation to protect the financial
36stability of the fund in an amount and manner determined by a
37qualified and independent actuary. At a minimum, this program
39     1.  Purchase excess insurance from authorized insurance
40carriers or eligible surplus lines insurers.
41     2.  Retain a per-loss occurrence that does not exceed the
42lesser of $350,000 or the surplus of the fund as reported in the
43immediately preceding audited fiscal year end financial
44statement. If not identified as surplus in the audited financial
45statements, surplus shall be the difference of the total assets
46minus the total liabilities.
47     (e)  Submits to the office annually an audited fiscal year-
48end financial statement by an independent certified public
49accountant within 6 months after the end of the fiscal year.
50     (f)  Has a governing body which is comprised entirely of
51commissioners of public housing authorities that are members of
52the public housing authority self-insurance fund or persons
53appointed by the commissioners of public housing authorities
54that are members of the public housing authority self-insurance
56     (g)  Uses knowledgeable persons or business entities to
57administer or service the fund in the areas of claims
58administration, claims adjusting, underwriting, risk management,
59loss control, policy administration, financial audit, and legal
60areas. Such persons must meet all applicable requirements of law
61for state licensure and must have at least 5 years' experience
62with commercial self-insurance funds formed under s. 624.462,
63self-insurance funds formed under s. 624.4622, or domestic
65     (h)  Submits to the office copies of contracts used for its
66members that clearly establish the liability of each member for
67the obligations of the fund.
68     (i)  Annually submits to the office a certification by the
69governing body of the fund that, to the best of its knowledge,
70the requirements of this section are met.
71     (2)  As used in this section, the term "qualified actuary"
72means an actuary that is a member of the Casualty Actuarial
73Society or the American Academy of Actuaries.
74     (3)  A public housing authority's self-insurance fund that
75meets the requirements of this section is not:
76     (a)  An insurer for purposes of participation in or
77coverage by any insurance guaranty association established by
78chapter 631; or
79     (b)  Subject to s. 624.4621 and is not required to file any
80report with the department under s. 440.38(2)(b) that is
81uniquely required of group self-insurer funds qualified under s.
83     (4)  Premiums, contributions, and assessments received by a
84public housing authority's self-insurance fund are subject to
85ss. 624.509(1) and (2) and 624.5092, except that the tax rate
86shall be 1.6 percent of the gross amount of such premiums,
87contributions, and assessments.
88     (5)  If any of the requirements of subsection (1) are not
89met, a public housing authority's self-insurance fund is subject
90to the requirements of s. 624.4621 if the fund provides only
91workers' compensation coverage or is subject to the requirements
92of ss. 624.460-624.488 if the fund provides coverage for other
93property, casualty, or surety risks.
94     (6)  Any public housing authority in the state as defined
95in chapter 421 that is a member of a self-insurance fund
96pursuant to this section shall be exempt from the assessments
97imposed under ss. 215.555, 627.351 and 631.57.
98     (7)  Reinsurance companies complying with s. 624.610 may
99issue coverage directly to a public housing authority self-
100insuring its liabilities under this section. A public housing
101authority purchasing reinsurance shall be considered an insurer
102for the sole purpose of entering into such reinsurance
103contracts. Contracts of reinsurance issued to public housing
104authorities self-insuring under this section shall receive the
105same tax treatment as reinsurance contracts issued to insurance
106companies. However, the purchase of reinsurance coverage by a
107public housing authority self-insuring under this section shall
108not be construed as authorization to otherwise act as an
T I T L E  A M E N D M E N T
114     Remove line 3542 and insert:
115under specified circumstances; amending s. 624.46226, F.S.;
116revising the criteria for public housing authorities to qualify
117for a self-insurance fund relating to specified casualty
118insurance; amending s. 626.852, F.S.;

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