Florida Regulations 69O-190.060: Security Deposits or Bonds for Self-Insurers Fund
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(1) Pursuant to Florida Statutes § 624.4621, 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 Florida Statutes § 624.4621, 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.
Rulemaking Authority 440.38(2)(b), 624.4621 FS. Law Implemented 440.38(2)(b), (3), 624.4621 FS. History-New 10-1-82, Amended 12-25-84, Formerly 38F-5.60, Amended 12-19-93, Formerly 38F-5.060, 4-190.060.
Terms Used In Florida Regulations 69O-190.060
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(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.
Rulemaking Authority 440.38(2)(b), 624.4621 FS. Law Implemented 440.38(2)(b), (3), 624.4621 FS. History-New 10-1-82, Amended 12-25-84, Formerly 38F-5.60, Amended 12-19-93, Formerly 38F-5.060, 4-190.060.