Florida Senate - 2017                                     SB 850
       By Senator Rouson
       19-01324-17                                            2017850__
    1                        A bill to be entitled                      
    2         An act relating to public housing authority insurance;
    3         amending s. 624.46226, F.S.; authorizing a certain
    4         legal entity in which a public housing authority holds
    5         an ownership interest or participates in its
    6         governance to form a specified self-insurance fund
    7         with other such entities or public housing
    8         authorities; providing an effective date.
   10  Be It Enacted by the Legislature of the State of Florida:
   12         Section 1. Subsection (1) of section 624.46226, Florida
   13  Statutes, is amended to read:
   14         624.46226 Public housing authorities self-insurance funds;
   15  exemption for taxation and assessments.—
   16         (1) Notwithstanding any other provision of law, any two or
   17  more public housing authorities in the state as defined in
   18  chapter 421, or a for-profit or not-for-profit corporation,
   19  limited liability company, or other similar business entity in
   20  which a public housing authority holds an ownership interest or
   21  participates in its governance under s. 421.08(8), may form a
   22  self-insurance fund for the purpose of pooling and spreading
   23  liabilities of its members as to any one or combination of
   24  casualty risk or real or personal property risk of every kind
   25  and every interest in such property against loss or damage from
   26  any hazard or cause and against any loss consequential to such
   27  loss or damage, provided the self-insurance fund that is
   28  created:
   29         (a) Has annual normal premiums in excess of $5 million.
   30         (b) Uses a qualified actuary to determine rates using
   31  accepted actuarial principles and annually submits to the office
   32  a certification by the actuary that the rates are actuarially
   33  sound and are not inadequate, as defined in s. 627.062.
   34         (c) Uses a qualified actuary to establish reserves for loss
   35  and loss adjustment expenses and annually submits to the office
   36  a certification by the actuary that the loss and loss adjustment
   37  expense reserves are adequate. If the actuary determines that
   38  reserves are not adequate, the fund shall file with the office a
   39  remedial plan for increasing the reserves or otherwise
   40  addressing the financial condition of the fund, subject to a
   41  determination by the office that the fund will operate on an
   42  actuarially sound basis and the fund does not pose a significant
   43  risk of insolvency.
   44         (d) Maintains a continuing program of excess insurance
   45  coverage and reserve evaluation to protect the financial
   46  stability of the fund in an amount and manner determined by a
   47  qualified and independent actuary. At a minimum, this program
   48  must:
   49         1. Purchase excess insurance from authorized insurance
   50  carriers or eligible surplus lines insurers.
   51         2. Retain a per-loss occurrence that does not exceed
   52  $350,000.
   53         (e) Submits to the office annually an audited fiscal year
   54  end financial statement by an independent certified public
   55  accountant within 6 months after the end of the fiscal year.
   56         (f) Has a governing body which is comprised entirely of
   57  commissioners of public housing authorities that are members of
   58  the public housing authority self-insurance fund or persons
   59  appointed by the commissioners of public housing authorities
   60  that are members of the public housing authority self-insurance
   61  fund.
   62         (g) Uses knowledgeable persons or business entities to
   63  administer or service the fund in the areas of claims
   64  administration, claims adjusting, underwriting, risk management,
   65  loss control, policy administration, financial audit, and legal
   66  areas. Such persons must meet all applicable requirements of law
   67  for state licensure and must have at least 5 years’ experience
   68  with commercial self-insurance funds formed under s. 624.462,
   69  self-insurance funds formed under s. 624.4622, or domestic
   70  insurers.
   71         (h) Submits to the office copies of contracts used for its
   72  members that clearly establish the liability of each member for
   73  the obligations of the fund.
   74         (i) Annually submits to the office a certification by the
   75  governing body of the fund that, to the best of its knowledge,
   76  the requirements of this section are met.
   77         Section 2. This act shall take effect July 1, 2017.