Florida Senate - 2011                          SENATOR AMENDMENT
       Bill No. CS/CS/CS/SB 408, 2nd Eng.
                                Barcode 541990                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                 Floor: WD/RM          .                                
             05/05/2011 06:29 PM       .                                

       Senator Fasano moved the following:
    1         Senate Amendment to Amendment (844961) (with title
    2  amendment)
    4         Between lines 179 and 180
    5  insert:
    6         Section 7. Section 624.46226, Florida Statutes, is amended
    7  to read:
    8         624.46226 Public housing authorities self-insurance funds;
    9  exemption for taxation and assessments.—
   10         (1) Notwithstanding any other provision of law, any two or
   11  more public housing authorities in the state as defined in
   12  chapter 421 may form a self-insurance fund for the purpose of
   13  pooling and spreading liabilities of its members as to any one
   14  or combination of casualty risk or real or personal property
   15  risk of every kind and every interest in such property against
   16  loss or damage from any hazard or cause and against any loss
   17  consequential to such loss or damage, provided the self
   18  insurance fund that is created:
   19         (a) Has annual normal premiums in excess of $3.5 $5
   20  million.
   21         (b) Uses a qualified actuary to determine rates using
   22  accepted actuarial principles and annually submits to the office
   23  a certification by the actuary that the rates are actuarially
   24  sound and are not inadequate, as defined in s. 627.062.
   25         (c) Uses a qualified actuary to establish reserves for loss
   26  and loss adjustment expenses and annually submits to the office
   27  a certification by the actuary that the loss and loss adjustment
   28  expense reserves are adequate. If the actuary determines that
   29  reserves are not adequate, the fund shall file with the office a
   30  remedial plan for increasing the reserves or otherwise
   31  addressing the financial condition of the fund, subject to a
   32  determination by the office that the fund will operate on an
   33  actuarially sound basis and the fund does not pose a significant
   34  risk of insolvency.
   35         (d) Maintains a continuing program of excess insurance
   36  coverage and reserve evaluation to protect the financial
   37  stability of the fund in an amount and manner determined by a
   38  qualified and independent actuary. At a minimum, this program
   39  must:
   40         1. Purchase excess insurance from authorized insurance
   41  carriers or eligible surplus lines insurers.
   42         2. Retain a per-loss occurrence that does not exceed the
   43  lesser of $350,000 or the surplus of the fund as reported in the
   44  immediately preceding audited fiscal year end financial
   45  statement. If not identified as surplus in the audited financial
   46  statements, surplus shall be the difference of the total assets
   47  minus the total liabilities.
   48         (e) Submits to the office annually an audited fiscal year
   49  end financial statement by an independent certified public
   50  accountant within 6 months after the end of the fiscal year.
   51         (f) Has a governing body which is comprised entirely of
   52  commissioners of public housing authorities that are members of
   53  the public housing authority self-insurance fund or persons
   54  appointed by the commissioners of public housing authorities
   55  that are members of the public housing authority self-insurance
   56  fund.
   57         (g) Uses knowledgeable persons or business entities to
   58  administer or service the fund in the areas of claims
   59  administration, claims adjusting, underwriting, risk management,
   60  loss control, policy administration, financial audit, and legal
   61  areas. Such persons must meet all applicable requirements of law
   62  for state licensure and must have at least 5 years’ experience
   63  with commercial self-insurance funds formed under s. 624.462,
   64  self-insurance funds formed under s. 624.4622, or domestic
   65  insurers.
   66         (h) Submits to the office copies of contracts used for its
   67  members that clearly establish the liability of each member for
   68  the obligations of the fund.
   69         (i) Annually submits to the office a certification by the
   70  governing body of the fund that, to the best of its knowledge,
   71  the requirements of this section are met.
   72         (2) As used in this section, the term “qualified actuary”
   73  means an actuary that is a member of the Casualty Actuarial
   74  Society or the American Academy of Actuaries.
   75         (3) A public housing authority’s self-insurance fund that
   76  meets the requirements of this section is not:
   77         (a) An insurer for purposes of participation in or coverage
   78  by any insurance guaranty association established by chapter
   79  631; or
   80         (b) Subject to s. 624.4621 and is not required to file any
   81  report with the department under s. 440.38(2)(b) that is
   82  uniquely required of group self-insurer funds qualified under s.
   83  624.4621.
   84         (4) Premiums, contributions, and assessments received by a
   85  public housing authority’s self-insurance fund are subject to
   86  ss. 624.509(1) and (2) and 624.5092, except that the tax rate
   87  shall be 1.6 percent of the gross amount of such premiums,
   88  contributions, and assessments.
   89         (5) If any of the requirements of subsection (1) are not
   90  met, a public housing authority’s self-insurance fund is subject
   91  to the requirements of s. 624.4621 if the fund provides only
   92  workers’ compensation coverage or is subject to the requirements
   93  of ss. 624.460-624.488 if the fund provides coverage for other
   94  property, casualty, or surety risks.
   95         (6) Any public housing authority in the state as defined in
   96  chapter 421 that is a member of a self-insurance fund pursuant
   97  to this section shall be exempt from the assessments imposed
   98  under ss. 215.555, 627.351 and 631.57.
   99         (7) Reinsurance companies complying with s. 624.610 may
  100  issue coverage directly to a public housing authority self
  101  insuring its liabilities under this section. A public housing
  102  authority purchasing reinsurance shall be considered an insurer
  103  for the sole purpose of entering into such reinsurance
  104  contracts. Contracts of reinsurance issued to public housing
  105  authorities self-insuring under this section shall receive the
  106  same tax treatment as reinsurance contracts issued to insurance
  107  companies. However, the purchase of reinsurance coverage by a
  108  public housing authority self-insuring under this section shall
  109  not be construed as authorization to otherwise act as an
  110  insurer.
  112  ================= T I T L E  A M E N D M E N T ================
  113         And the title is amended as follows:
  114         Delete line 3542
  115  and insert:
  116         under specified circumstances; amending s. 624.46226,
  117         F.S.; revising the criteria for public housing
  118         authorities to qualify for a self-insurance fund
  119         relating to specified casualty insurance; amending s.
  120         626.852, F.S.;