November 28, 2020
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       Florida Senate - 2010                             CS for SB 2232
       
       
       
       By the Committee on Banking and Insurance; and Senator Richter
       
       
       
       
       597-04390-10                                          20102232c1
    1                        A bill to be entitled                      
    2         An act relating to guaranty associations; amending s.
    3         631.52, F.S.; expanding an exemption from the
    4         applicability of certain provisions of state law to
    5         include workers’ compensation claims under employer
    6         liability coverage; amending s. 631.54, F.S.;
    7         conforming the definition of “account” to changes made
    8         by the act; amending s. 631.55, F.S.; revising the
    9         structure of the Florida Insurance Guaranty
   10         Association by combining the auto liability and auto
   11         physical damage accounts; amending s. 631.57, F.S.;
   12         conforming cross-references; providing legislative
   13         intent; providing guidelines for the calculation of
   14         recoupment factors; authorizing an insurer to apply a
   15         recalculated recoupment factor under certain
   16         conditions; providing for the return of excess
   17         assessments and recoupment charges; providing that
   18         amounts recouped pursuant to specified provisions of
   19         state law are not premium and not subject to premium
   20         taxes, fees, or commissions; requiring that insurers
   21         treat failure to pay a recoupment charge as failure to
   22         pay the premium; requiring that an insurer file with
   23         the Office of Insurance Regulation a statement
   24         containing certain information within a specified
   25         period before applying a recoupment factor to any
   26         policies; authorizing an insurer to use a recoupment
   27         factor after the expiration of such period; providing
   28         that an insurer need submit only one such statement
   29         for all lines of business; requiring that an insurer
   30         file with the office an accounting report containing
   31         certain information within a specified period after
   32         the completion of the recoupment process; amending s.
   33         631.713, F.S.; expanding the application of certain
   34         provisions of state law to certain residents of other
   35         states who own certain insurance policies; expanding
   36         the list of contracts and policies to which certain
   37         provisions of state law do not apply; amending s.
   38         631.714, F.S.; revising the definition of “insolvent
   39         insurer” to remove the requirement that an order of
   40         liquidation become final by the exhaustion of
   41         appellate review; expanding the definition of
   42         “resident” to account for persons other than
   43         individuals and residents of foreign countries and
   44         United States possessions, territories, and
   45         protectorates; amending s. 631.717, F.S.; limiting a
   46         guaranty association’s liability for cash surrender,
   47         net cash withdrawal, and annuity benefits with respect
   48         to life insurance on any one life; authorizing an
   49         association to issue substitute coverage under certain
   50         circumstances; requiring that such alternate policy or
   51         contract meet certain criteria; creating s. 631.7295,
   52         F.S.; authorizing an association to succeed to the
   53         rights of an insolvent insurer arising after an order
   54         of liquidation or rehabilitation with regard to
   55         certain contracts of reinsurance; requiring that such
   56         an association pay all unpaid premiums due under the
   57         contract; amending s. 631.735, F.S.; providing that
   58         certain provisions of state law do not prohibit the
   59         furnishing of certain information in a form prepared
   60         by the Florida Life and Health Insurance Guaranty
   61         Association upon the request of a policyholder or
   62         applicant for insurance; amending s. 631.904, F.S.;
   63         clarifying the definition of “covered claim” to
   64         include unpaid claims under any employer liability
   65         coverage of a workers’ compensation policy limited to
   66         the lesser of a specified amount and the limits of the
   67         policy; providing an effective date.
   68  
   69  Be It Enacted by the Legislature of the State of Florida:
   70  
   71         Section 1. Section 631.52, Florida Statutes, is amended to
   72  read:
   73         631.52 Scope.—This part shall apply to all kinds of direct
   74  insurance, except:
   75         (1) Life, annuity, health, or disability insurance;
   76         (2) Mortgage guaranty, financial guaranty, or other forms
   77  of insurance offering protection against investment risks;
   78         (3) Fidelity or surety bonds, or any other bonding
   79  obligations;
   80         (4) Credit insurance, vendors’ single interest insurance,
   81  or collateral protection insurance or any similar insurance
   82  protecting the interests of a creditor arising out of a
   83  creditor-debtor transaction;
   84         (5) Warranty, including motor vehicle service, home
   85  warranty, or service warranty;
   86         (6) Ambulance service, health care service, or preneed
   87  funeral merchandise or service;
   88         (7) Optometric service plan, pharmaceutical service plan,
   89  or dental service plan;
   90         (8) Legal expense;
   91         (9) Health maintenance, prepaid health clinic, or
   92  continuing care;
   93         (10) Ocean marine or wet marine insurance;
   94         (11) Self-insurance and any kind of self-insurance fund,
   95  liability pool, or risk management fund;
   96         (12) Title insurance;
   97         (13) Surplus lines;
   98         (14) Workers’ compensation, including claims under employer
   99  liability coverage;
  100         (15) Any transaction or combination of transactions between
  101  a person, including affiliates of such person, and an insurer,
  102  including affiliates of such insurer, which involves the
  103  transfer of investment or credit risk unaccompanied by the
  104  transfer of insurance risk; or
  105         (16) Any insurance provided by or guaranteed by government.
  106         Section 2. Subsection (1) of section 631.54, Florida
  107  Statutes, is amended to read:
  108         631.54 Definitions.—As used in this part:
  109         (1) “Account” means any one of the three accounts created
  110  by s. 631.55.
  111         Section 3. Subsection (2) of section 631.55, Florida
  112  Statutes, is amended to read:
  113         631.55 Creation of the association.—
  114         (2) For the purposes of administration and assessment, the
  115  association shall be divided into two three separate accounts:
  116         (a) The auto liability and auto physical damage account;
  117  and
  118         (b)The auto physical damage account; and
  119         (b)(c) The account for all other insurance to which this
  120  part applies.
  121         Section 4. Subsection (3) of section 631.57, Florida
  122  Statutes, is amended to read:
  123         631.57 Powers and duties of the association.—
  124         (3)(a) To the extent necessary to secure the funds for the
  125  respective accounts for the payment of covered claims, to pay
  126  the reasonable costs to administer the same, and to the extent
  127  necessary to secure the funds for the account specified in
  128  s.631.55(2)(b) s. 631.55(2)(c) or to retire indebtedness,
  129  including, without limitation, the principal, redemption
  130  premium, if any, and interest on, and related costs of issuance
  131  of, bonds issued under s. 631.695 and the funding of any
  132  reserves and other payments required under the bond resolution
  133  or trust indenture pursuant to which such bonds have been
  134  issued, the office, upon certification of the board of
  135  directors, shall levy assessments in the proportion that each
  136  insurer’s net direct written premiums in this state in the
  137  classes protected by the account bears to the total of said net
  138  direct written premiums received in this state by all such
  139  insurers for the preceding calendar year for the kinds of
  140  insurance included within such account. Assessments shall be
  141  remitted to and administered by the board of directors in the
  142  manner specified by the approved plan. Each insurer so assessed
  143  shall have at least 30 days’ written notice as to the date the
  144  assessment is due and payable. Every assessment shall be made as
  145  a uniform percentage applicable to the net direct written
  146  premiums of each insurer in the kinds of insurance included
  147  within the account in which the assessment is made. The
  148  assessments levied against any insurer shall not exceed in any
  149  one year more than 2 percent of that insurer’s net direct
  150  written premiums in this state for the kinds of insurance
  151  included within such account during the calendar year next
  152  preceding the date of such assessments.
  153         (b) If sufficient funds from such assessments, together
  154  with funds previously raised, are not available in any one year
  155  in the respective account to make all the payments or
  156  reimbursements then owing to insurers, the funds available shall
  157  be prorated and the unpaid portion shall be paid as soon
  158  thereafter as funds become available.
  159         (c) The Legislature finds and declares that all assessments
  160  paid by an insurer or insurer group as a result of a levy by the
  161  office, including regular and emergency assessments, constitute
  162  advances of funds from the insurer to the association. The
  163  insurer is entitled to fully recoup such advances by applying a
  164  separate recoupment factor to the premium of policies of the
  165  same kind or line as were considered by the office in
  166  determining the assessment liability of the insurer or insurer
  167  group. Assessments shall be included as an appropriate factor in
  168  the making of rates.
  169         (d) No state funds of any kind shall be allocated or paid
  170  to said association or any of its accounts.
  171         (e)1.a. In addition to assessments otherwise authorized in
  172  paragraph (a) and to the extent necessary to secure the funds
  173  for the account specified in s. 631.55(2)(b) s. 631.55(2)(c) for
  174  the direct payment of covered claims of insurers rendered
  175  insolvent by the effects of a hurricane and to pay the
  176  reasonable costs to administer such claims, or to retire
  177  indebtedness, including, without limitation, the principal,
  178  redemption premium, if any, and interest on, and related costs
  179  of issuance of, bonds issued under s. 631.695 and the funding of
  180  any reserves and other payments required under the bond
  181  resolution or trust indenture pursuant to which such bonds have
  182  been issued, the office, upon certification of the board of
  183  directors, shall levy emergency assessments upon insurers
  184  holding a certificate of authority. The emergency assessments
  185  payable under this paragraph by any insurer shall not exceed in
  186  any single year more than 2 percent of that insurer’s direct
  187  written premiums, net of refunds, in this state during the
  188  preceding calendar year for the kinds of insurance within the
  189  account specified in s. 631.55(2)(b) s. 631.55(2)(c).
  190         b. Any emergency assessments authorized under this
  191  paragraph shall be levied by the office upon insurers referred
  192  to in sub-subparagraph a., upon certification as to the need for
  193  such assessments by the board of directors. In the event the
  194  board of directors participates in the issuance of bonds in
  195  accordance with s. 631.695, emergency assessments shall be
  196  levied in each year that bonds issued under s. 631.695 and
  197  secured by such emergency assessments are outstanding, in such
  198  amounts up to such 2-percent limit as required in order to
  199  provide for the full and timely payment of the principal of,
  200  redemption premium, if any, and interest on, and related costs
  201  of issuance of, such bonds. The emergency assessments provided
  202  for in this paragraph are assigned and pledged to the
  203  municipality, county, or legal entity issuing bonds under s.
  204  631.695 for the benefit of the holders of such bonds, in order
  205  to enable such municipality, county, or legal entity to provide
  206  for the payment of the principal of, redemption premium, if any,
  207  and interest on such bonds, the cost of issuance of such bonds,
  208  and the funding of any reserves and other payments required
  209  under the bond resolution or trust indenture pursuant to which
  210  such bonds have been issued, without the necessity of any
  211  further action by the association, the office, or any other
  212  party. To the extent bonds are issued under s. 631.695 and the
  213  association determines to secure such bonds by a pledge of
  214  revenues received from the emergency assessments, such bonds,
  215  upon such pledge of revenues, shall be secured by and payable
  216  from the proceeds of such emergency assessments, and the
  217  proceeds of emergency assessments levied under this paragraph
  218  shall be remitted directly to and administered by the trustee or
  219  custodian appointed for such bonds.
  220         c. Emergency assessments under this paragraph may be
  221  payable in a single payment or, at the option of the
  222  association, may be payable in 12 monthly installments with the
  223  first installment being due and payable at the end of the month
  224  after an emergency assessment is levied and subsequent
  225  installments being due not later than the end of each succeeding
  226  month.
  227         d. If emergency assessments are imposed, the report
  228  required by s. 631.695(7) shall include an analysis of the
  229  revenues generated from the emergency assessments imposed under
  230  this paragraph.
  231         e. If emergency assessments are imposed, the references in
  232  sub-subparagraph (1)(a)3.b. and s. 631.695(2) and (7) to
  233  assessments levied under paragraph (a) shall include emergency
  234  assessments imposed under this paragraph.
  235         2.In order to ensure that insurers paying emergency
  236  assessments levied under this paragraph continue to charge rates
  237  that are neither inadequate nor excessive, within 90 days after
  238  being notified of such assessments, each insurer that is to be
  239  assessed pursuant to this paragraph shall submit a rate filing
  240  for coverage included within the account specified in s.
  241  631.55(2)(c) and for which rates are required to be filed under
  242  s. 627.062. If the filing reflects a rate change that, as a
  243  percentage, is equal to the difference between the rate of such
  244  assessment and the rate of the previous year’s assessment under
  245  this paragraph, the filing shall consist of a certification so
  246  stating and shall be deemed approved when made. Any rate change
  247  of a different percentage shall be subject to the standards and
  248  procedures of s. 627.062.
  249         2.3.If In the event the board of directors participates in
  250  the issuance of bonds in accordance with s. 631.695, an annual
  251  assessment under this paragraph shall continue while the bonds
  252  issued with respect to which the assessment was imposed are
  253  outstanding, including any bonds the proceeds of which were used
  254  to refund bonds issued pursuant to s. 631.695, unless adequate
  255  provision has been made for the payment of the bonds in the
  256  documents authorizing the issuance of such bonds.
  257         3.4. Emergency assessments under this paragraph are not
  258  premium and are not subject to the premium tax, to any fees, or
  259  to any commissions. An insurer is liable for all emergency
  260  assessments that the insurer collects and shall treat the
  261  failure of an insured to pay an emergency assessment as a
  262  failure to pay the premium. An insurer is not liable for
  263  uncollectible emergency assessments.
  264         (f) The recoupment factor applied to policies in accordance
  265  with paragraph (c) shall be selected by the insurer or insurer
  266  group so as to provide for the probable recoupment of both
  267  regular and emergency assessments over a period of 12 months,
  268  unless the insurer or insurer group, at its option, elects to
  269  recoup the assessment over a longer period. The recoupment
  270  factor shall apply to all policies of the same kind or line as
  271  were considered by the office in determining the assessment
  272  liability of the insurer or insurer group issued or renewed
  273  during a 12-month period. If the insurer or insurer group does
  274  not collect the full amount of the assessment during one 12
  275  month period, the insurer or insurer group may apply
  276  recalculated recoupment factors to policies issued or renewed
  277  during one or more succeeding 12-month periods. If, at the end
  278  of a 12-month period, the insurer or insurer group has collected
  279  from the combined kinds or lines of policies subject to
  280  assessment more than the total amount of the assessment paid by
  281  the insurer or insurer group, the excess amount shall be
  282  disbursed as follows:
  283         1. If the excess amount does not exceed 15 percent of the
  284  total assessment paid by the insurer or insurer group, the
  285  excess amount shall be remitted to the association within 60
  286  days after the end of the 12-month period in which the excess
  287  recoupment charges were collected.
  288         2. If the excess amount exceeds 15 percent of the total
  289  assessment paid by the insurer or insurer group, the excess
  290  amount shall be returned to the insurer’s or insurer group’s
  291  current policyholders by refunds or premium credits. The
  292  association shall use any remitted excess recoupment amounts to
  293  reduce future assessments.
  294         (g) Amounts recouped pursuant to this subsection for
  295  assessments levied under paragraph (a) due to insolvencies on or
  296  after July 1, 2010, are considered premium solely for premium
  297  tax purposes and are not subject to fees or commissions.
  298  However, insurers shall treat the failure of an insured to pay a
  299  recoupment charge as a failure to pay the premium.
  300         (h) At least 15 days before applying the recoupment factor
  301  to any policies, the insurer or insurer group shall file with
  302  the office a statement for informational purposes only setting
  303  forth the amount of the recoupment factor and an explanation of
  304  how the recoupment factor will be applied. Such statement shall
  305  include documentation of the assessment paid by the insurer or
  306  insurer group and the arithmetic calculations supporting the
  307  recoupment factor. The insurer or insurer group may use the
  308  recoupment factor at any time after the expiration of the 15-day
  309  period. The insurer or insurer group need submit only one
  310  informational statement for all lines of business using the same
  311  recoupment factor.
  312         (i) No later than 90 days after the insurer or insurer
  313  group has completed the recoupment process, it shall file with
  314  the office, for information purposes only, a final accounting
  315  report documenting the recoupment. The report shall provide the
  316  amounts of assessments paid by the insurer or insurer group, the
  317  amounts and percentages recouped by year from each affected line
  318  of business, and the direct written premium subject to
  319  recoupment by year. The insurer or insurer group need submit
  320  only one informational statement for all lines of business using
  321  the same recoupment factor.
  322         Section 5. Paragraph (b) of subsection (2) of section
  323  631.713, Florida Statutes, is amended, paragraphs (n), (o), and
  324  (p) are added to subsection (3) of that section, and subsection
  325  (5) is added to that section, to read:
  326         631.713 Application of part.—
  327         (2) Coverage under this part shall be provided to:
  328         (b) Persons who are owners of or certificateholders under
  329  such policies or contracts, and who:
  330         1. Are residents of this state; or
  331         2. Are residents of other states, but only if:
  332         a. The insurers which issued such policies or contracts are
  333  domiciled in this state;
  334         b. Such insurers were not licensed never held a license or
  335  certificate of authority in the states in which such persons
  336  reside at the time specified in a state’s guaranty association
  337  law as necessary for coverage by that states association;
  338         c. Such other states have associations similar to the
  339  association created by this part; and
  340         d. Such persons are not eligible for coverage by such
  341  associations.
  342         (3) This part does not apply to:
  343         (n) A portion of a policy or contract, to the extent that
  344  the rate of interest on which it is based, or the interest rate,
  345  crediting rate, or similar factor determined by use of an index
  346  or other external reference stated in the policy or contract
  347  employed in calculating returns or changes in value:
  348         1. Averaged over the period of 4 years immediately
  349  preceding the date on which the member insurer becomes an
  350  impaired or insolvent insurer under this part, whichever is
  351  earlier, exceeds the rate of interest determined by subtracting
  352  2 percentage points from Moody’s Corporate Bond Yield Average
  353  averaged for that same 4-year period or for such lesser period
  354  if the policy or contract was issued less than 4 years before
  355  the member insurer becomes an impaired or insolvent insurer
  356  under this part, whichever is earlier; and
  357         2. On and after the date on which the member insurer
  358  becomes an impaired or insolvent insurer under this part,
  359  whichever is earlier, exceeds the rate of interest determined by
  360  subtracting 3 percentage points from the most current version of
  361  Moody’s Corporate Bond Yield Average.
  362         (o) A portion of a policy or contract to the extent it
  363  provides for interest or other changes in value to be determined
  364  by the use of an index or other external reference stated in the
  365  policy or contract, but which has not been credited to the
  366  policy or contract, or as to which the policy or contract
  367  owner’s rights are subject to forfeiture, as of the date the
  368  member insurer becomes an impaired or insolvent insurer under
  369  state law. However, if the interest or change in value is
  370  credited less frequently than annually as determined by using
  371  the procedures defined in the policy or contract, interest or
  372  change in value shall be credited by using the procedure defined
  373  in the policy or contract as if the contractual date of
  374  crediting interest or changing values were the date of
  375  impairment or insolvency, whichever is earlier, and will not be
  376  subject to forfeiture.
  377         (p) A policy or contract providing any hospital, medical,
  378  prescription drug, or other health care benefits pursuant to
  379  Medicare Part C or D or any regulations issued pursuant to
  380  Medicare Part C or D.
  381         (5) Notwithstanding any other provisions of this part, this
  382  part includes coverage to a person who is a payee under a
  383  structured settlement annuity, or a beneficiary if the payee is
  384  deceased, with a coverage limit of $300,000 by the association,
  385  if:
  386         (a) The payee is a resident of this state, regardless of
  387  where the contract owner resides; and
  388         (b) Neither the payee, beneficiary, nor contract owner is
  389  eligible for coverage by the association of the state in which
  390  the contract owner resides.
  391         Section 6. Subsections (6) and (10) of section 631.714,
  392  Florida Statutes, are amended to read:
  393         631.714 Definitions.—As used in this part, the term:
  394         (6) “Insolvent insurer” means a member insurer authorized
  395  to transact insurance in this state, either at the time the
  396  policy was issued or when the insured event occurred, and
  397  against which an order of liquidation with a finding of
  398  insolvency has been entered by a court of competent
  399  jurisdiction, if such order has become final by the exhaustion
  400  of appellate review.
  401         (10) “Resident” means any person who resides in this state
  402  at the time a member insurer is determined to be an impaired or
  403  insolvent insurer and to whom contractual obligations are owed
  404  by such impaired or insolvent member insurer. A person may be a
  405  resident of only one state, which in the case of a person other
  406  than an individual shall be the person’s principal place of
  407  business. Citizens of the United States who are residents of
  408  foreign countries or United States possessions, territories, or
  409  protectorates that do not have an association similar to the
  410  guaranty association created by this part, shall be deemed
  411  residents of the state of domicile of the insurer issuing the
  412  policies or contracts.
  413         Section 7. Subsection (9) of section 631.717, Florida
  414  Statutes, is amended, and paragraph (g) is added to subsection
  415  (12) of that section, to read:
  416         631.717 Powers and duties of the association.—
  417         (9) The association’s liability for the contractual
  418  obligations of the insolvent insurer shall be as great as, but
  419  no greater than, the contractual obligations of the insurer in
  420  the absence of such insolvency, unless such obligations are
  421  reduced as permitted by subsection (4), but the aggregate
  422  liability of the association shall not exceed $100,000 in net
  423  cash surrender and net cash withdrawal values for life
  424  insurance, $250,000 in net cash surrender and net cash
  425  withdrawal values for deferred annuity contracts, or $300,000
  426  for all benefits including cash values, with respect to any one
  427  life. In no event shall the association be liable for any
  428  penalties or interest.
  429         (12)
  430         (g) In carrying out its duties in connection with
  431  guaranteeing, assuming, or reinsuring policies or contracts
  432  under subsections (2) and (3), the association may, subject to
  433  approval of the receivership court, issue substitute coverage
  434  for a policy or contract that provides an interest rate,
  435  crediting rate, or similar factor determined by use of an index
  436  or other external reference stated in the policy or contract
  437  employed in calculating returns or changes in value by issuing
  438  an alternative policy or contract. In lieu of the index or other
  439  external reference provided for in the original policy or
  440  contract, the alternative policy or contract must provide for a
  441  fixed interest rate, payment of dividends with minimum
  442  guarantees, or a different method for calculating interest or
  443  changes in value. In such case:
  444         1. There is no requirement for evidence of insurability,
  445  waiting period, or other exclusion that would not have applied
  446  under the replaced policy or contract; and
  447         2. The alternative policy or contract shall be
  448  substantially similar to the replaced policy or contract in all
  449  other material terms.
  450         Section 8. Section 631.7295, Florida Statutes, is created
  451  to read:
  452         631.7295Reinsurance.—With respect to covered policies for
  453  which the association becomes obligated after an entry of an
  454  order of liquidation or rehabilitation, the association may
  455  elect to succeed to the rights of the insolvent insurer arising
  456  after the order of liquidation or rehabilitation under any
  457  contract of reinsurance to which the insolvent insurer was a
  458  party, to the extent that such contract provides coverage for
  459  losses occurring after the date of the order of liquidation or
  460  rehabilitation. As a condition to making such election, the
  461  association must pay all unpaid premiums due under the contract
  462  for coverage relating to periods before and after the date on
  463  which the order of liquidation or rehabilitation was entered.
  464         Section 9. Section 631.735, Florida Statutes, is amended to
  465  read:
  466         631.735 Prohibited advertisement of Florida Life and Health
  467  Insurance Guaranty Association Act in sale of insurance.—No
  468  person shall make, publish, disseminate, circulate, or place
  469  before the public, or cause directly or indirectly to be made,
  470  published, disseminated, circulated, or placed before the
  471  public, in any newspaper, magazine, or other publication, or in
  472  the form of a notice, circular, pamphlet, letter, or poster, or
  473  over any radio station or television station, or in any other
  474  way, any advertisement, announcement, or statement which uses
  475  the existence of the Insurance Guaranty Association of this
  476  state for the purpose of sales, solicitation, or inducement to
  477  purchase any form of insurance covered by the Florida Life and
  478  Health Insurance Guaranty Association Act. However, this section
  479  does shall not apply to the Florida Life and Health Insurance
  480  Guaranty Association or any other entity that which does not
  481  sell or solicit insurance. This section also does not prohibit
  482  the furnishing of written information, in a form prepared by the
  483  association, which summarizes the claim, cash value, and annuity
  484  cash value limits of the association, upon request of the
  485  policyholder or applicant for insurance.
  486         Section 10. Subsection (2) of section 631.904, Florida
  487  Statutes, is amended to read:
  488         631.904 Definitions.—As used in this part, the term:
  489         (2) “Covered claim” means an unpaid claim, including a
  490  claim for return of unearned premiums, which arises out of, is
  491  within the coverage of, and is not in excess of the applicable
  492  limits of, an insurance policy to which this part applies, which
  493  policy was issued by an insurer and which claim is made on
  494  behalf of a claimant or insured who was a resident of this state
  495  at the time of the injury. The term “covered claim” includes
  496  unpaid claims under any employer liability coverage of a
  497  workers’ compensation policy limited to the lesser of $300,000
  498  and the limits of the policy. The term “covered claim” does not
  499  include any amount sought as a return of premium under any
  500  retrospective rating plan; any amount due any reinsurer,
  501  insurer, insurance pool, or underwriting association, as
  502  subrogation recoveries or otherwise; any claim that would
  503  otherwise be a covered claim that has been rejected by any other
  504  state guaranty fund on the grounds that the insured’s net worth
  505  is greater than that allowed under that state’s guaranty fund or
  506  liquidation law, except this exclusion from the definition of
  507  covered claim shall not apply to employers who, prior to April
  508  30, 2004, entered into an agreement with the corporation
  509  preserving the employer’s right to seek coverage of claims
  510  rejected by another state’s guaranty fund; or any return of
  511  premium resulting from a policy that was not in force on the
  512  date of the final order of liquidation. Member insurers have no
  513  right of subrogation against the insured of any insolvent
  514  insurer. This provision shall be applied retroactively to cover
  515  claims of an insolvent self-insurance fund resulting from
  516  accidents or losses incurred prior to January 1, 1994,
  517  regardless of the date the petition in circuit court was filed
  518  alleging insolvency and the date the court entered an order
  519  appointing a receiver.
  520         Section 11. This act shall take effect upon becoming a law.

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