Bill Amendment: FL S1046 | 2013 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Banking_and_Insurance_Committee_Amendment_to_Amendment_149498.html
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Banking_and_Insurance_Committee_Amendment_to_Amendment_149498.html
Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. SB 1046 Barcode 149498 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Hays) recommended the following: 1 Senate Amendment to Amendment (457546) (with title 2 amendment) 3 4 Delete lines 1366 - 1390 5 and insert: 6 Section 41. Subsections (8), (9), and (13) of section 7 628.901, Florida Statutes, are amended to read: 8 628.901 Definitions.—As used in this part, the term: 9 (8) “Industrial insured” means an insured that: 10 (a) Has gross assets in excess of $50 million; 11 (b) Procures insurance through the use of a full-time 12 employee of the insured who acts as an insurance manager or 13 buyer or through the services of a person licensed as a property 14 and casualty insurance agent, broker, or consultant in such 15 person’s state of domicile; 16 (c) Has at least 100 full-time employees; and 17 (d) Pays annual premiums of at least $200,000 for each line 18 of insurance purchased from the industrial insured captive 19 insurance companyinsureror at least $75,000 for any line of 20 coverage in excess of at least $25 million in the annual 21 aggregate. The purchase of umbrella or general liability 22 coverage in excess of $25 million in the annual aggregate shall 23 be deemed to be the purchase of a single line of insurance. 24 (9) “Industrial insured captive insurance company” means a 25captive insurancecompany that provides insurance only to the 26 industrial insureds that are its stockholders or members, and 27 affiliates thereof, or to the stockholders, and affiliates 28 thereof, of its parent corporation. An industrial insured 29 captive insurance company can also provide reinsurance to 30 insurers only on risks written by such insurers for the 31 industrial insureds that are the stockholders or members, and 32 affiliates thereof, of the industrial insured captive insurance 33 companyinsurer, or the stockholders, and affiliates thereof, of 34 the parent corporation of the industrial insured captive 35 insurance companyinsurer. 36 (13) “Qualifying reinsurer parent company” means a 37 reinsurer thatwhichcurrently holds a certificate of authority,38letter of eligibilityor is an accredited or trusteed under s. 39 624.610(3)(c)a satisfactory non-approvedreinsurer in this 40 state possessing a consolidated GAAP net worth of at least $500 41 million and a consolidated debt to total capital ratio of not 42 greater than 0.50. 43 Section 42. Subsections (1), (2), (4), and (5) of section 44 628.905, Florida Statutes, are amended to read: 45 628.905 Licensing; authority.— 46 (1) A captive insurance companyinsurer, if permitted by 47 its charter or articles of incorporation, may apply to the 48 office for a license to do any and all insurance authorized 49 under the insurance code, other than workers’ compensation and 50 employer’s liability, life, health, personal motor vehicle, and 51 personal residential property insurance, except that: 52 (a) A pure captive insurance company may not insure any 53 risks other than those of its parent, affiliated companies, 54 controlled unaffiliated businesses, or a combination thereof. 55 (b) An industrial insured captive insurance company may not 56 insure any risks other than those of the industrial insureds 57 that comprise the industrial insured group and their affiliated 58 companies, or its stockholders or members, and affiliates 59 thereof, of the industrial insured captive, or the stockholders 60 or affiliates of the parent corporation of the industrial 61 insured captive insurance company. 62 (c) A special purpose captive insurance company may insure 63 only the risks of its parent. 64 (d) A captive insurance company may not accept or cede 65 reinsurance except as provided in this part. 66 (e) An industrial insured captive insurance company with 67 unencumbered capital and surplus of at least $20 million may be 68 licensed to provide workers’ compensation and employer’s 69 liability insurance in excess of $25 million in the annual 70 aggregate. An industrial insured captive insurance company must 71 maintain unencumbered capital and surplus of at least $20 72 million to continue to write excess workers’ compensation 73 insurance. 74 (2) To conduct insurance business in this state, a captive 75 insurance companyinsurermust: 76 (a) Obtain from the office a license authorizing it to 77 conduct insurance business in this state; 78 (b) Hold at least one board of directors’ meeting each year 79 in this state; 80 (c) Maintain its principal place of business in this state; 81 and 82 (d) Appoint a resident registered agent to accept service 83 of process and to otherwise act on its behalf in this state. In 84 the case of a captive insurance company formed as a corporation 85 or a nonprofit corporation, if the registered agent cannot with 86 reasonable diligence be found at the registered office of the 87 captive insurance company, the Chief Financial Officer of this 88 state must be an agent of the captive insurance company upon 89 whom any process, notice, or demand may be served. 90 (4) A captive insurance company or captive reinsurance 91 company must pay to the office a nonrefundable fee of $1,500 for 92 processing its application for license. 93 (a) A captive insurance company or captive reinsurance 94 company must also pay an annual renewal fee of $1,000. 95 (b) The office may charge a fee of $5 for any document 96 requiring certification of authenticity or the signature of the 97 officecommissioner or his or her designee. 98 (5) If the officecommissioneris satisfied that the 99 documents and statements filed by the captive insurance company 100 comply with this chapter, the officecommissionermay grant a 101 license authorizing the company to conduct insurance business in 102 this state until the next succeeding March 1, at which time the 103 license may be renewed. 104 Section 43. Subsection (1) of section 628.907, Florida 105 Statutes, is amended to read: 106 628.907 Minimum capital and net assets requirements; 107 restriction on payment of dividends.— 108 (1) A captive insurance companyinsurermay not be issued a 109 license unless it possesses and thereafter maintains unimpaired 110 paid-in capital of: 111 (a) In the case of a pure captive insurance company, at 112 least $100,000. 113 (b) In the case of an industrial insured captive insurance 114 company incorporated as a stock insurer, at least $200,000. 115 (c) In the case of a special purpose captive insurance 116 company, an amount determined by the office after giving due 117 consideration to the company’s business plan, feasibility study, 118 and pro forma financial statements and projections, including 119 the nature of the risks to be insured. 120 Section 44. Section 628.909, Florida Statutes, is amended 121 to read: 122 628.909 Applicability of other laws.— 123 (1) The Florida Insurance Code does not apply to captive 124 insurance companiesinsurersor industrial insured captive 125 insurance companiesinsurersexcept as provided in this part and 126 subsections (2) and (3). 127 (2) The following provisions of the Florida Insurance Code 128 apply to captive insurance companiesinsurerswho are not 129 industrial insured captive insurance companiesinsurersto the 130 extent that such provisions are not inconsistent with this part: 131 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085, 132 624.40851, 624.4095, 624.411, 624.425, and 624.426. 133 (b) Chapter 625, part II. 134 (c) Chapter 626, part IX. 135 (d) Sections 627.730-627.7405, when no-fault coverage is 136 provided. 137 (e) Chapter 628. 138 (3) The following provisions of the Florida Insurance Code 139 apply to industrial insured captive insurance companiesinsurers140 to the extent that such provisions are not inconsistent with 141 this part: 142 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085, 143 624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1). 144 (b) Chapter 625, part II, if the industrial insured captive 145 insurance companiesinsureris incorporated in this state. 146 (c) Chapter 626, part IX. 147 (d) Sections 627.730-627.7405 when no-fault coverage is 148 provided. 149 (e) Chapter 628, except for ss. 628.341, 628.351, and 150 628.6018. 151 Section 45. Subsection (2) of section 628.9142, Florida 152 Statutes, is amended to read: 153 628.9142 Reinsurance; effect on reserves.— 154 (2) A captive insurance company may take credit for 155 reserves on risks or portions of risks ceded to authorized 156 insurers or reinsurers and unauthorized insurers or reinsurers 157 complying with s. 624.610. A captive insurance companyinsurer158 may not take credit for reserves on risks or portions of risks 159 ceded to an unauthorized insurer or reinsurer if the insurer or 160 reinsurer is not in compliance with s. 624.610. 161 Section 46. Section 628.915, Florida Statutes, is amended 162 to read: 163 628.915 Exemption from compulsory association.— 164 (1) ANocaptive insurance company may notinsurershall be165permitted tojoin or contribute financially to any joint 166 underwriting association or guaranty fund in this state; nor 167 shall any captive insurance companyinsurer, its insured, or its 168 parent or any affiliated company receive any benefit from any 169 such joint underwriting association or guaranty fund for claims 170 arising out of the operations of such captive insurer. 171 (2) AnNoindustrial insured captive insurance company may 172 notinsurershall be permitted tojoin or contribute financially 173 to any joint underwriting association or guaranty fund in this 174 state; nor shall any industrial insured captive insurance 175 companyinsurer, its industrial insured, or its parent or any 176 affiliated company receive any benefit from any such joint 177 underwriting association or guaranty fund for claims arising out 178 of the operations of such industrial insured captive insurance 179 companyinsurer. 180 Section 47. Section 628.917, Florida Statutes, is amended 181 to read: 182 628.917 Insolvency and liquidation.—In the event that a 183 captive insurance companyinsureris insolvent as defined in 184 chapter 631, the office shall liquidate the captive insurance 185 companyinsurerpursuant to the provisions of part I of chapter 186 631.; except thatThe office may notshall make noattempt to 187 rehabilitate such insurer. 188 Section 48. Section 628.919, Florida Statutes, is amended 189 to read: 190 628.919 Standards to ensure risk management control by 191 parent company.—A pure captive insurance company shall submit to 192 the office for approvalThe Financial Services Commission shall193adopt rules establishingstandards to ensure that a parent or 194 affiliated company is able to exercise control of the risk 195 management function of any controlled unaffiliated business to 196 be insured by the pure captive insurance company. 197 198 ================= T I T L E A M E N D M E N T ================ 199 And the title is amended as follows: 200 Delete lines 1647 - 1650 201 and insert: 202 revising the definition of terms applicable to captive 203 insurers; amending s. 628.905, F.S.; authorizing an 204 industrial insured captive insurance company to write 205 workers compensation and employer liability insurance 206 in excess of a certain amount under certain 207 conditions; conforming provisions to changes made by 208 the act; redesignating the Office of Insurance 209 Regulation instead of the Insurance Commissioner as 210 the collector of certain fees and issuer of licenses; 211 amending s. 628.907, F.S.; conforming provisions to 212 changes made by the act; amending s. 628.909, F.S.; 213 providing for applicability of certain provisions of 214 the Insurance Code to specified captive insurers; 215 conforming provisions to changes made by the act; 216 amending s. 628.9142, F.S.; conforming provisions to 217 changes made by the act; amending s. 628.915, F.S.; 218 conforming provisions to changes made by the act; 219 amending s. 628.917, F.S.; conforming provisions to 220 changes made by the act; amending s. 628.919, F.S.; 221 requiring a pure captive insurance company to submit 222 certain risk management standards to the Office of 223 Insurance Regulation;