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Florida Senate - 2008 SENATOR AMENDMENT

Bill No. CS for CS for SB's 2086 & 2498

083888

CHAMBER ACTION

Senate

Floor: WD/2R

5/1/2008 3:39 PM

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House



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Senator Bennett moved the following amendment:

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     Senate Amendment (with title amendment)

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     Between lines 4092 and 4093,

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insert:

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     Section 74. (1) Notwithstanding any other provision of

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law, any three or more condominium associations may form a self-

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insurance fund for the purposes of pooling and spreading the

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liabilities of its participant associations arising from the

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deductible provisions of the commercial lines residential

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property insurance policies of the participants applicable to

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hurricane losses, if:

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     (a) Such fund is a not-for-profit corporation pursuant to

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chapter 617, Florida Statutes.

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     (b) The fund is implemented through contracts among the

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participating associations, or through contracts between the

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participating associations and another legal entity established

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for and limited to establishing and implementing the program.

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     (c) The liability of the fund for claims is limited to

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funds available for the payment of claims.

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     (d) The contract provided to a participating association

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clearly discloses the obligations of the participants in the

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fund and the obligations of the fund, including the limited

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liability of the fund as defined in paragraph (c). The contract

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must specify a reasonable date for the payment of claims which

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provides the fund with adequate time to verify and account for

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all claims for a given year so that claims payments can be

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properly calculated after consideration of the funds available.

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Before execution of the contract, the association or its

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representative must be provided a separate disclosure form

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specifying the limited liability of the fund and all

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administrative fees and estimated expenses, and provide

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examples of the manner in which available funds will be

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allocated among claimants if claims exceed the funds available

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for the payment thereof. Such disclosure must be signed by a

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representative of the participating association before or at

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the time of execution of the contract.

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     (e) The contributions charged for participating in the

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fund are established by the fund and calculated as a percentage

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of the participant's hurricane deductible dollar amount. The

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fund may determine the method and timing of payment of

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contributions.

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     (f) All members of the governing board of the fund are

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participating associations in the fund and the governing body

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has all powers necessary to establish and administer the fund

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as authorized by the participants in the fund. All decisions of

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the fund are based upon a vote of the majority of the board.

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The board may contract with individual professionals to

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administer the fund.

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     (g) The fund uses and contracts with knowledgeable persons

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or business entities to administer and service the fund,

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including marketing, policy, contract administration, claims

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administration, accounting services, and legal services.

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     (h) The fund uses a properly licensed general lines

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insurance agent who is a Florida resident for solicitation

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of participation in the fund and does not prevent, impede,

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or restrict any applicant or participant in the fund from

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maintaining or selecting an agent of choice. The fund may

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not favor one or more agents over another agent. The

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organizational documents, the contract and notices of

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disclosure must be filed with the Office of Insurance

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Regulation not less than 45 days prior to solicitation by

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the fund.

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     (i) The fund is audited by an independent auditor no less

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frequently than every 2 years.

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     (2) The fund may accumulate funds or periodically

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distribute excess funds to its participants on a pro rata

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basis, reflecting loss experience of individual participants

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and proportionate contributions paid by participants.

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     (3) Participants in the fund must have a deductible

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no greater than as provided in s. 627.701(8), Florida

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Statutes. Self-insurance funds or pools established

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pursuant to this section are not subject to licensure

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requirements or regulation pursuant to the Florida

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Insurance Code except for part IX of chapter 626, Florida

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Statutes, which may be enforced by the Office of Insurance

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Regulation or the Department of Financial Services, as

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applicable, and are not subject to any fees, taxes, or

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assessments related to the writing or transaction of

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insurance in this state.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     On line 218, after the semicolon,

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insert:

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providing that any three or more condominium associations

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may form a self-insurance fund for certain purposes under

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certain conditions; requiring that the contract for

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participating in the fund disclose certain information

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and contain certain provisions; requiring that a

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disclosure be provided to an association before execution

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of such contract; requiring that such disclosure contain

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certain information; providing for the charging of

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contributions for participation in the fund; requiring

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that the majority of the governing board of the fund be

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participants in the fund; providing powers of the

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governing board; authorizing the fund to enter into

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certain contracts; requiring that the fund use a general

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lines agent meeting certain criteria when soliciting

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participation in the fund; prohibiting the fund from

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taking certain actions when selecting such agent;

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requiring that the fund be independently audited at

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specified intervals; authorizing the fund to accumulate

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funds or distribute excess funds to participants on a pro

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rata basis; providing for a deductible for participants

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in the fund; exempting such self-insurance funds from

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certain requirements, regulations, fees, taxes, and

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assessments;

5/1/2008  11:27:00 AM     21-09409-08

CODING: Words stricken are deletions; words underlined are additions.

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