Florida Regulations 69L-5.219: Excess Insurance
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(1) Current Self-Insurers, other than Governmental Entities, shall maintain a Specific Excess Insurance Policy. Such policy shall have a workers’ compensation limit of not less than $50,000,000.
(a) The self-insured retention of Specific Excess Insurance Policies shall be as follows:
1. The self-insurer’s per occurrence retention shall be no more than $600,000 or 1.5% of the self-insurer’s Net Worth as shown on the self-insurer’s latest audited Financial Statements, whichever is greater. The self-insured retention shall be rounded to the nearest $50,000.
2. A higher self-insured retention shall be allowed, if approved by the Department. The Department shall consider the Current Self-Insurer’s financial strength, including but not limited to its Net Worth, and its Net Worth in relation to the requested self-insured retention, in its review of the requested self-insured retention.
(b) Specific Excess Insurance Policies for Current Self-Insurers shall be written by insurance companies licensed in Florida pursuant to Chapter 624, 628 or 629, F.S., and shall be subject to the protection afforded by the Florida Workers’ Compensation Insurance Guaranty Association Act (Florida Statutes Chapter 631, Part V).
(c) If coverage is not available from a company identified above, the Department may accept policies issued without the protection of the Florida Workers’ Compensation Insurance Guaranty Association Act issued by insurance companies who have current financial strength and size ratings from A.M. Best Company of not less than “”A-“” and “”VII”” respectively.
(d) The Division shall reject any Specific Excess Insurance Policy written by an insurance company which:
1. Does not pay its claims when due; or
2. Is not in compliance with any requirement of Florida Statutes Chapter 624
(e) The Specific Excess Insurance Policy shall meet the following requirements:
1. Shall be issued by an insurance company conforming to these rules and shall name the Department as an additional insured for the purpose of notification.
2. Shall not be cancelled except upon sixty (60) days written notice by certified mail to the other party to the policy and to the Department.
(f) Shall be automatically renewable at the expiration of the policy period unless written notice by certified mail is given to the other party to the policy and to the Department sixty (60) days prior to such expiration by the party desiring to cancel or not renew the policy.
(g) Shall provide that any commutation affected under the policy shall not relieve the underwriter of further liability in respect to claims and expenses unknown at the time of such commutation. The underwriter shall not be relieved in regard to closed claims, which may be subsequently revived by or through a competent authority. In the event the underwriter proposes to redeem any future payments as compensation for accidents occurring during the term of the policy, not less than sixty (60) days prior notice of such commutation shall be given to the Department by certified mail by the underwriter or its agent.
(h) Provides that, in the event any commutation is effected, the Department shall have the right to direct that such sum either be placed in trust for the benefit of the injured employee or employees entitled to such future payments of compensation or be invested in approved securities and deposited with the Department to insure such future payments of compensation to the employee or employees entitled thereto. Said commutation must contain a provision that the Department may order that the monies due under the terms of the Specific Excess Insurance Policy be paid directly to the injured employee or a trustee appointed by the Department. Such an action shall be ordered only if the Department determines that it is necessary to ensure continued benefits to the injured employee.
(i) Contains the provision that in the event of the insolvency of a FSIGA Member, the policy shall reimburse the Association for any monies expended on behalf of the self-insured. Any reimbursement shall be subject to the terms of the contract between the FSIGA Member and the insurance company.
(j) The Specific Excess Insurance Policy shall have no more than one named insured. The named insured shall be the FSIGA Member and its subsidiaries. In the case of an Affiliated Self-Insurer, the named insured shall be all affiliated entities and their subsidiaries.
(k) Contains the provision that coverage under the Specific Excess Insurance Policy extends to all Florida, majority owned, self-insured subsidiaries of the principal named insured.
(2) A binder, providing for at least ninety (90) days coverage, or a certificate of insurance issued by the insurance company or its authorized agent and specifying the terms of the policy, shall be filed within thirty (30) days after the effective date of the policy, provided that this proof of specific excess insurance is not being submitted in support of an application for self-insurance. Excess renewal endorsements specifying the terms of the policy submitted to the Association within thirty (30) days after the renewal date satisfies this requirement. In the event of cancellation or non-renewal of the Specific Excess Insurance Policy, it shall be necessary for the Current Self-Insurer to file proof of replacement specific excess insurance coverage prior to the cancellation or non-renewal date. Copies of all Specific Excess Insurance Policies, complete with all endorsements in the name of the insured, shall be filed within ninety (90) days of the effective date of the policy.
(3) FSIGA Members shall submit Specific Excess Insurance Policies and all related documents and notices to the:
Florida Self-Insurers Guaranty Association, Inc.
1427 E. Piedmont Dr., 2nd Floor
Tallahassee, Florida 32308
(4) If requested by the Association or the Division to verify compliance with these rules or to evaluate a self-insurers financial condition, self-insurers shall provide copies of excess insurance policies to support estimated excess insurance recoveries included in their Actuarial Reports provided to the Association or the Division.
Rulemaking Authority 440.38(1), (2), (3), 440.385(6), 440.591 FS. Law Implemented 440.38(1), (2), (3), 440.385(1), (3), (6) FS. History-New 3-9-10, Amended 5-13-14.
Terms Used In Florida Regulations 69L-5.219
- Contract: A legal written agreement that becomes binding when signed.
- Trustee: A person or institution holding and administering property in trust.
1. The self-insurer’s per occurrence retention shall be no more than $600,000 or 1.5% of the self-insurer’s Net Worth as shown on the self-insurer’s latest audited Financial Statements, whichever is greater. The self-insured retention shall be rounded to the nearest $50,000.
2. A higher self-insured retention shall be allowed, if approved by the Department. The Department shall consider the Current Self-Insurer’s financial strength, including but not limited to its Net Worth, and its Net Worth in relation to the requested self-insured retention, in its review of the requested self-insured retention.
(b) Specific Excess Insurance Policies for Current Self-Insurers shall be written by insurance companies licensed in Florida pursuant to Chapter 624, 628 or 629, F.S., and shall be subject to the protection afforded by the Florida Workers’ Compensation Insurance Guaranty Association Act (Florida Statutes Chapter 631, Part V).
(c) If coverage is not available from a company identified above, the Department may accept policies issued without the protection of the Florida Workers’ Compensation Insurance Guaranty Association Act issued by insurance companies who have current financial strength and size ratings from A.M. Best Company of not less than “”A-“” and “”VII”” respectively.
(d) The Division shall reject any Specific Excess Insurance Policy written by an insurance company which:
1. Does not pay its claims when due; or
2. Is not in compliance with any requirement of Florida Statutes Chapter 624
(e) The Specific Excess Insurance Policy shall meet the following requirements:
1. Shall be issued by an insurance company conforming to these rules and shall name the Department as an additional insured for the purpose of notification.
2. Shall not be cancelled except upon sixty (60) days written notice by certified mail to the other party to the policy and to the Department.
(f) Shall be automatically renewable at the expiration of the policy period unless written notice by certified mail is given to the other party to the policy and to the Department sixty (60) days prior to such expiration by the party desiring to cancel or not renew the policy.
(g) Shall provide that any commutation affected under the policy shall not relieve the underwriter of further liability in respect to claims and expenses unknown at the time of such commutation. The underwriter shall not be relieved in regard to closed claims, which may be subsequently revived by or through a competent authority. In the event the underwriter proposes to redeem any future payments as compensation for accidents occurring during the term of the policy, not less than sixty (60) days prior notice of such commutation shall be given to the Department by certified mail by the underwriter or its agent.
(h) Provides that, in the event any commutation is effected, the Department shall have the right to direct that such sum either be placed in trust for the benefit of the injured employee or employees entitled to such future payments of compensation or be invested in approved securities and deposited with the Department to insure such future payments of compensation to the employee or employees entitled thereto. Said commutation must contain a provision that the Department may order that the monies due under the terms of the Specific Excess Insurance Policy be paid directly to the injured employee or a trustee appointed by the Department. Such an action shall be ordered only if the Department determines that it is necessary to ensure continued benefits to the injured employee.
(i) Contains the provision that in the event of the insolvency of a FSIGA Member, the policy shall reimburse the Association for any monies expended on behalf of the self-insured. Any reimbursement shall be subject to the terms of the contract between the FSIGA Member and the insurance company.
(j) The Specific Excess Insurance Policy shall have no more than one named insured. The named insured shall be the FSIGA Member and its subsidiaries. In the case of an Affiliated Self-Insurer, the named insured shall be all affiliated entities and their subsidiaries.
(k) Contains the provision that coverage under the Specific Excess Insurance Policy extends to all Florida, majority owned, self-insured subsidiaries of the principal named insured.
(2) A binder, providing for at least ninety (90) days coverage, or a certificate of insurance issued by the insurance company or its authorized agent and specifying the terms of the policy, shall be filed within thirty (30) days after the effective date of the policy, provided that this proof of specific excess insurance is not being submitted in support of an application for self-insurance. Excess renewal endorsements specifying the terms of the policy submitted to the Association within thirty (30) days after the renewal date satisfies this requirement. In the event of cancellation or non-renewal of the Specific Excess Insurance Policy, it shall be necessary for the Current Self-Insurer to file proof of replacement specific excess insurance coverage prior to the cancellation or non-renewal date. Copies of all Specific Excess Insurance Policies, complete with all endorsements in the name of the insured, shall be filed within ninety (90) days of the effective date of the policy.
(3) FSIGA Members shall submit Specific Excess Insurance Policies and all related documents and notices to the:
Florida Self-Insurers Guaranty Association, Inc.
1427 E. Piedmont Dr., 2nd Floor
Tallahassee, Florida 32308
(4) If requested by the Association or the Division to verify compliance with these rules or to evaluate a self-insurers financial condition, self-insurers shall provide copies of excess insurance policies to support estimated excess insurance recoveries included in their Actuarial Reports provided to the Association or the Division.
Rulemaking Authority 440.38(1), (2), (3), 440.385(6), 440.591 FS. Law Implemented 440.38(1), (2), (3), 440.385(1), (3), (6) FS. History-New 3-9-10, Amended 5-13-14.