(1) Pursuant to Section
624.4621, F.S., each
self-insurers fund shall deposit with the Office acceptable securities or post
a surety bond issued by a corporate surety authorized to do business in the
State of Florida or make provisions as otherwise provided in these
rules.
(2) The security deposit or
bond required of a self-insurers fund providing coverage under Section
624.4621, F.S., shall be equal
to the greater of:
(a) $250,000;
(b) 10% of the normal premium; and,
(c) 10% of the total loss reserves.
The amount of the security deposit or bond shall be
determined at least annually based on data submitted by the self-insurers fund
to the Office for the previous fiscal year end. Documents assigning investment
assets to the division shall be filed with the division within 90 days of the
effective date of these rules. Extensions may be granted for good
cause.
(3) The
security deposit requirement shall be satisfied by one of the following means:
(a) Self-insurers funds, upon application and
during the first 24 months of operation, may post a surety bond to satisfy the
security deposit requirement.
(b)
All other funds shall satisfy the security deposit requirement by allocation of
general investment assets of the fund to the division. No monies may be
allocated from surplus in the loss fund in a given fund year until at least 12
months after the close of the fund year.
(c) If assets are not available, then the
fund may post a surety bond in the amount of the difference between the amount
of the security deposit requirement and the amount of assets
available.
(d) The amount of the
surety bond posted shall be considered a contingent liability. The necessity of
the surety bond shall be eliminated before any dividends from premiums or
investment income will be approved. If the deficiency is not completely
eliminated within 12 months after the Office notifies the fund that a
deficiency exists, then the failure to eliminate the deficiency shall be
evidence of the fund's failure to satisfy the mandatory reserve requirements.
Such failure shall be good cause for the revocation of the fund's
self-insurance privilege and for the ordering of the assessment of the
membership.
(4) Any
surety bond posted by a self-insurers fund shall contain the provision that the
surety agrees to provide reimbursements under the terms of the bond immediately
upon failure or refusal of the self-insurers fund to meet any of its
obligations under the Law.
Notes
Fla. Admin.
Code Ann. R. 69O-190.060
Rulemaking Authority 440.38(2)(b), 624.4621 FS. Law
Implemented 440.38(2)(b), (3), 624.4621
FS.
New 10-1-82, Amended
12-25-84, Formerly 38F-5.60, Amended 12-19-93, Formerly 38F-5.060,
4-190.060.
New 10-1-82, Amended 12-25-84, Formerly 38F-5.60, Amended
12-19-93, Formerly 38F-5.060, 4-190.060.
