Florida Senate - 2022                                    SB 1402
       
       
        
       By Senator Burgess
       
       
       
       
       
       20-00879-22                                           20221402__
    1                        A bill to be entitled                      
    2         An act relating to domestic surplus lines insurance;
    3         amending s. 626.914, F.S.; revising the definition of
    4         the term “eligible surplus lines insurer”; defining
    5         the term “domestic surplus lines insurer”; creating s.
    6         626.9182, F.S.; providing for the eligibility of
    7         domestic surplus lines insurers; subjecting and
    8         exempting surplus lines insurers and surplus lines
    9         policies from certain requirements; providing
   10         construction; reenacting ss. 458.320(1)(b) and (2)(b),
   11         459.0085 (1)(b) and (2)(b), and 464.0123(2)(a), F.S.,
   12         relating to financial responsibility for the practice
   13         of medicine, financial responsibility for the practice
   14         of osteopathic medicine, and autonomous practice by an
   15         advanced practice registered nurse, respectively, to
   16         incorporate the amendment made to s. 626.914, F.S., in
   17         references thereto; providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Subsection (2) of section 626.914, Florida
   22  Statutes, is amended, and subsection (5) is added to that
   23  section, to read:
   24         626.914 Definitions.—As used in this Surplus Lines Law, the
   25  term:
   26         (2) “Eligible surplus lines insurer” means an unauthorized
   27  insurer that which has been made eligible by the office to issue
   28  insurance coverage under this Surplus Lines Law; or a domestic
   29  surplus lines insurer.
   30         (5)”Domestic surplus lines insurer” means any domestic
   31  insurer that has been made eligible by the office to issue
   32  surplus lines insurance coverage.
   33         Section 2. Section 626.9182, Florida Statutes, is created
   34  to read:
   35         626.9182 Domestic surplus lines insurers.—
   36         (1)Notwithstanding any other law, a domestic insurer
   37  possessing surplus as to policyholders of at least $15 million
   38  may, pursuant to a resolution by its board of directors, and
   39  with the approval of the office, be made eligible as a domestic
   40  surplus lines insurer. Upon approval of the office, a domestic
   41  surplus lines insurer:
   42         (a)May issue surplus lines insurance coverage in any
   43  jurisdiction, including this state.
   44         (b)Is deemed an eligible surplus lines insurer and may
   45  issue any type of insurance coverage that an unauthorized
   46  insurer not domiciled in this state is eligible to issue.
   47         (c)May issue surplus lines insurance coverage only if the
   48  coverage has been placed with the insurer by a surplus lines
   49  agent pursuant to the Surplus Lines Law.
   50         (2)A domestic surplus lines insurer is subject to all
   51  financial and solvency requirements imposed upon domestic
   52  admitted insurers unless otherwise exempted.
   53         (3)Surplus lines insurance policies issued by a domestic
   54  surplus lines insurer are exempt from all requirements relating
   55  to insurance rating and rating plans; policy forms; premiums
   56  charged to insureds; policy cancellation, nonrenewal, and
   57  renewal; and other requirements in the same manner and to the
   58  same extent as surplus lines policies issued by a surplus lines
   59  insurer domiciled in another state.
   60         (4)Notwithstanding any other law, policies issued in this
   61  state by a domestic surplus lines insurer are subject to taxes
   62  assessed upon surplus lines policies issued by nonadmitted
   63  insurers, including the surplus lines tax prescribed by s.
   64  626.932, but are exempt from other taxes levied upon domestic
   65  and foreign admitted insurers.
   66         (5)Policies issued in this state by a domestic surplus
   67  lines insurer are not subject to part II, part III, or part V of
   68  chapter 631.
   69         (6)For the purposes of the Surplus Lines Law, a domestic
   70  surplus lines insurer is considered an unauthorized insurer.
   71         (7)For the purposes of the federal Nonadmitted and
   72  Reinsurance Reform Act of 2010 (NRRA), a domestic surplus lines
   73  insurer is considered a nonadmitted insurer as defined in 15
   74  U.S.C. s. 8206 with respect to risks insured in this state.
   75         Section 3. For the purpose of incorporating the amendment
   76  made by this act to section 626.914, Florida Statutes, in
   77  references thereto, paragraph (b) of subsection (1) and
   78  paragraph (b) of subsection (2) of section 458.320, Florida
   79  Statutes, are reenacted to read:
   80         458.320 Financial responsibility.—
   81         (1) As a condition of licensing and maintaining an active
   82  license, and prior to the issuance or renewal of an active
   83  license or reactivation of an inactive license for the practice
   84  of medicine, an applicant must by one of the following methods
   85  demonstrate to the satisfaction of the board and the department
   86  financial responsibility to pay claims and costs ancillary
   87  thereto arising out of the rendering of, or the failure to
   88  render, medical care or services:
   89         (b) Obtaining and maintaining professional liability
   90  coverage in an amount not less than $100,000 per claim, with a
   91  minimum annual aggregate of not less than $300,000, from an
   92  authorized insurer as defined under s. 624.09, from a surplus
   93  lines insurer as defined under s. 626.914(2), from a risk
   94  retention group as defined under s. 627.942, from the Joint
   95  Underwriting Association established under s. 627.351(4), or
   96  through a plan of self-insurance as provided in s. 627.357. The
   97  required coverage amount set forth in this paragraph may not be
   98  used for litigation costs or attorney’s fees for the defense of
   99  any medical malpractice claim.
  100         (2) Physicians who perform surgery in an ambulatory
  101  surgical center licensed under chapter 395 and, as a continuing
  102  condition of hospital staff privileges, physicians who have
  103  staff privileges must also establish financial responsibility by
  104  one of the following methods:
  105         (b) Obtaining and maintaining professional liability
  106  coverage in an amount not less than $250,000 per claim, with a
  107  minimum annual aggregate of not less than $750,000 from an
  108  authorized insurer as defined under s. 624.09, from a surplus
  109  lines insurer as defined under s. 626.914(2), from a risk
  110  retention group as defined under s. 627.942, from the Joint
  111  Underwriting Association established under s. 627.351(4),
  112  through a plan of self-insurance as provided in s. 627.357, or
  113  through a plan of self-insurance which meets the conditions
  114  specified for satisfying financial responsibility in s. 766.110.
  115  The required coverage amount set forth in this paragraph may not
  116  be used for litigation costs or attorney’s fees for the defense
  117  of any medical malpractice claim.
  118  
  119  This subsection shall be inclusive of the coverage in subsection
  120  (1).
  121         Section 4. For the purpose of incorporating the amendment
  122  made by this act to section 626.914, Florida Statutes, in
  123  references thereto, paragraph (b) of subsection (1) and
  124  paragraph (b) of subsection (2) of section 459.0085, Florida
  125  Statutes, are reenacted to read:
  126         459.0085 Financial responsibility.—
  127         (1) As a condition of licensing and maintaining an active
  128  license, and prior to the issuance or renewal of an active
  129  license or reactivation of an inactive license for the practice
  130  of osteopathic medicine, an applicant must by one of the
  131  following methods demonstrate to the satisfaction of the board
  132  and the department financial responsibility to pay claims and
  133  costs ancillary thereto arising out of the rendering of, or the
  134  failure to render, medical care or services:
  135         (b) Obtaining and maintaining professional liability
  136  coverage in an amount not less than $100,000 per claim, with a
  137  minimum annual aggregate of not less than $300,000, from an
  138  authorized insurer as defined under s. 624.09, from a surplus
  139  lines insurer as defined under s. 626.914(2), from a risk
  140  retention group as defined under s. 627.942, from the Joint
  141  Underwriting Association established under s. 627.351(4), or
  142  through a plan of self-insurance as provided in s. 627.357. The
  143  required coverage amount set forth in this paragraph may not be
  144  used for litigation costs or attorney’s fees for the defense of
  145  any medical malpractice claim.
  146         (2) Osteopathic physicians who perform surgery in an
  147  ambulatory surgical center licensed under chapter 395 and, as a
  148  continuing condition of hospital staff privileges, osteopathic
  149  physicians who have staff privileges must also establish
  150  financial responsibility by one of the following methods:
  151         (b) Obtaining and maintaining professional liability
  152  coverage in an amount not less than $250,000 per claim, with a
  153  minimum annual aggregate of not less than $750,000 from an
  154  authorized insurer as defined under s. 624.09, from a surplus
  155  lines insurer as defined under s. 626.914(2), from a risk
  156  retention group as defined under s. 627.942, from the Joint
  157  Underwriting Association established under s. 627.351(4),
  158  through a plan of self-insurance as provided in s. 627.357, or
  159  through a plan of self-insurance that meets the conditions
  160  specified for satisfying financial responsibility in s. 766.110.
  161  The required coverage amount set forth in this paragraph may not
  162  be used for litigation costs or attorney’s fees for the defense
  163  of any medical malpractice claim.
  164  
  165  This subsection shall be inclusive of the coverage in subsection
  166  (1).
  167         Section 5. For the purpose of incorporating the amendment
  168  made by this act to section 626.914, Florida Statutes, in a
  169  reference thereto, paragraph (a) of subsection (2) of section
  170  464.0123, Florida Statutes, is reenacted to read:
  171         464.0123 Autonomous practice by an advanced practice
  172  registered nurse.—
  173         (2) FINANCIAL RESPONSIBILITY.—
  174         (a) An advanced practice registered nurse registered under
  175  this section must, by one of the following methods, demonstrate
  176  to the satisfaction of the board and the department financial
  177  responsibility to pay claims and costs ancillary thereto arising
  178  out of the rendering of, or the failure to render, nursing care,
  179  treatment, or services:
  180         1. Obtaining and maintaining professional liability
  181  coverage in an amount not less than $100,000 per claim, with a
  182  minimum annual aggregate of not less than $300,000, from an
  183  authorized insurer as defined in s. 624.09, from a surplus lines
  184  insurer as defined in s. 626.914(2), from a risk retention group
  185  as defined in s. 627.942, from the Joint Underwriting
  186  Association established under s. 627.351(4), or through a plan
  187  of self-insurance as provided in s. 627.357; or
  188         2. Obtaining and maintaining an unexpired, irrevocable
  189  letter of credit, established pursuant to chapter 675, in an
  190  amount of not less than $100,000 per claim, with a minimum
  191  aggregate availability of credit of not less than $300,000. The
  192  letter of credit must be payable to the advanced practice
  193  registered nurse as beneficiary upon presentment of a final
  194  judgment indicating liability and awarding damages to be paid by
  195  the advanced practice registered nurse or upon presentment of a
  196  settlement agreement signed by all parties to such agreement
  197  when such final judgment or settlement is a result of a claim
  198  arising out of the rendering of, or the failure to render,
  199  nursing care and services.
  200         Section 6. This act shall take effect July 1, 2022.