Current through Reg. 47, No. 249; December 28, 2021
An entity applying for a self-insurance authorization
pursuant to paragraph
440.38(1)(b),
F.S., shall meet the following requirements and shall submit a completed
application package at least ninety (90) days prior to the desired effective
date of the self-insurance authorization:
(1) Net Worth - The applicant's most recent
audited Financial Statements shall show a Net Worth of the greater of
$10,000,000 U.S. or three (3) times Standard Premium. For purposes of meeting
the Net Worth requirement, the Net Worths of the companies comprising an
Affiliated Self-Insurer may be combined.
(2) Financial Strength - A current Credit
Rating of not less than "Ba3", "BB-", or "BB-" issued by Moody's Investors
Services, Standard & Poor's or Fitch Ratings, respectively. In the event an
applicant does not have a current published Credit Rating, the Association
shall determine an equivalent rating by performing an analysis of the Financial
Statements provided in accordance with Rules
69L-5.209
and 69L-5.225, F.A.C., the foregoing financial strength requirement shall be
based on the equivalent rating as the Credit Rating. An applicant that
disagrees with the equivalent rating may provide a current Credit Rating. If
the applicant provides a current Credit Rating, the financial strength
requirement shall be based on the current Credit Rating instead of the
equivalent rating.
(3) Financial
Statements - An applicant shall have at least three (3) years of Financial
Statements in the name of the applicant. The Financial Statements for the most
recent year shall be audited in accordance with Generally Accepted Auditing
Standards. If the Financial Statements for the two (2) years prior to the most
recent year have been audited in accordance with Generally Accepted Auditing
Standards, the audit reports(s) on these Financial Statements shall also be
submitted.
(4) An applicant that
does not have three (3) years of Financial Statements in its own name due to a
recent purchase or merger, may use the Financial Statements of its
predecessor(s), provided there has been no change to the structure of the
entity or the line of business which would adversely affect the applicant's
financial condition.
(5) Security
Deposit - The applicant shall provide a Security Deposit that conforms to the
requirements of Rule
69L-5.218,
F.A.C. In the event the applicant meets the above financial strength
requirement, but does not have an Investment Grade Credit Rating, the applicant
shall provide a Security Deposit in an amount equal to the actuarially
determined outstanding loss reserves forecasted to a date one year in the
future, discounted to such forecasted date using a four percent (4%) discount
rate, as calculated in its Actuarial Report. In no case, shall the amount of
the Security Deposit be less than $100,000.
(6) Specific Excess Insurance Policy
Requirements - The applicant shall provide proof of a Specific Excess Insurance
Policy that conforms to the requirements of Rule
69L-5.219,
F.A.C.
(7) Provision of Benefits
and a Safe Working Environment - The applicant shall provide a completed Form
DFS-F2-SI-19 (Certification of Servicing for Self-Insurers), effective 08/09,
as previously incorporated by reference in Rule
69L-5.216,
F.A.C., detailing the proposed servicing arrangements and accompanying
documentation that conforms to the requirements of Rule
69L-5.216,
F.A.C.
(8) In order for an
application to be considered complete, all required documents must be
submitted, including the Security Deposit, proof of Specific Excess Insurance
Policy, and Certification of Servicing for Self-Insurers.
