Bill Amendment: FL S1344 | 2014 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Insurance
Status: 2014-06-13 - Chapter No. 2014-103 [S1344 Detail]
Download: Florida-2014-S1344-Senate_Committee_Amendment_789392.html
Bill Title: Insurance
Status: 2014-06-13 - Chapter No. 2014-103 [S1344 Detail]
Download: Florida-2014-S1344-Senate_Committee_Amendment_789392.html
Florida Senate - 2014 COMMITTEE AMENDMENT Bill No. CS for SB 1344 Ì789392LÎ789392 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 1 Senate Amendment (with title amendment) 2 3 Before line 13 4 insert: 5 Section 1. Paragraph (c) of subsection (2) and subsection 6 (3) of section 626.8805, Florida Statutes, are amended to read: 7 626.8805 Certificate of authority to act as administrator.— 8 (2) The administrator shall file with the office an 9 application for a certificate of authority upon a form to be 10 adopted by the commission and furnished by the office, which 11 application shall include or have attached the following 12 information and documents: 13 (c) The names, addresses, official positions, and 14 professional qualifications of the individuals employed or 15 retained by the administrator who are responsible for the 16 conduct of the affairs of the administrator, including all 17 members of the board of directors, board of trustees, executive 18 committee, or other governing board or committee, and the 19 principal officers in the case of a corporation or,the partners 20 or members in the case of a partnership or association, and any21other person who exercises control or influence over the affairs22 of the administrator. 23 24 The applicant shall also include such other information as the 25 office requires in order to review the current financial 26 condition of the applicant. 27 (3) The applicant shall make available for inspection by 28 the office copies of all contracts relating to services provided 29 by the administrator towithinsurers or other persons using 30utilizingthe services of the administrator. 31 Section 2. Subsections (1) and (3) of section 626.8817, 32 Florida Statutes, are amended to read: 33 626.8817 Responsibilities of insurance company with respect 34 to administration of coverage insured.— 35 (1) If an insurer uses the services of an administrator, 36 the insurer is responsible for determining the benefits, premium 37 rates, underwriting criteria, and claims payment procedures 38 applicable to the coverage and for securing reinsurance, if any. 39 The rules pertaining to these matters shall be provided, in 40 writing, by the insurer or its designee to the administrator. 41 The responsibilities of the administrator as to any of these 42 matters shall be set forth in athewritten agreement binding 43 uponbetweenthe administrator and the insurer. 44 (3) IfIn cases in whichan administrator administers 45 benefits for more than 100 certificateholders on behalf of an 46 insurer, the insurer shall, at least semiannually, conduct a 47 review of the operations of the administrator. At least one such 48 review must be an onsite audit of the operations of the 49 administrator. The insurer may contract with a qualified third 50 party to conduct such review. 51 Section 3. Subsections (1) and (4) of section 626.882, 52 Florida Statutes, are amended to read: 53 626.882 Agreement between administrator and insurer; 54 required provisions; maintenance of records.— 55 (1) ANoperson may not act as an administrator without a 56 written agreement, as required under s. 626.8817, which 57 specifies the rights, duties, and obligations of thebetween58such person asadministrator andaninsurer. 59 (4) If a policy is issued to a trustee or trustees, a copy 60 of the trust agreement and any amendments to that agreement 61 shall be furnished to the insurer or its designee by the 62 administrator and shall be retained as part of the official 63 records of both the administrator and the insurer for the 64 duration of the policy and for 5 years thereafter. 65 Section 4. Subsections (3), (4), and (5) of section 66 626.883, Florida Statutes, are amended to read: 67 626.883 Administrator as intermediary; collections held in 68 fiduciary capacity; establishment of account; disbursement; 69 payments on behalf of insurer.— 70 (3) If charges or premiums deposited in a fiduciary account 71 have been collected on behalf of or for more than one insurer, 72 the administrator shall keep records clearly recording the 73 deposits in and withdrawals from such account on behalf of or 74 for each insurer. The administrator shall, upon request of an 75 insurer or its designee, furnish such insurer or designee with 76 copies of records pertaining to deposits and withdrawals on 77 behalf of or for such insurer. 78 (4) The administrator may not pay any claim by withdrawals 79 from a fiduciary account. Withdrawals from such account shall be 80 made as provided in the written agreement required under ss. 81 626.8817 and 626.882between the administrator and the insurer82 for any of the following: 83 (a) Remittance to an insurer entitled to such remittance. 84 (b) Deposit in an account maintained in the name of such 85 insurer. 86 (c) Transfer to and deposit in a claims-paying account, 87 with claims to be paid as provided by such insurer. 88 (d) Payment to a group policyholder for remittance to the 89 insurer entitled to such remittance. 90 (e) Payment to the administrator of the commission, fees, 91 or charges of the administrator. 92 (f) Remittance of return premium to the person or persons 93 entitled to suchreturnpremium. 94 (5) All claims paid by the administrator from funds 95 collected on behalf of the insurer shall be paid only on drafts 96 of, and as authorized by, such insurer or its designee. 97 Section 5. Subsection (3) of section 626.884, Florida 98 Statutes, is amended to read: 99 626.884 Maintenance of records by administrator; access; 100 confidentiality.— 101 (3) The insurer shall retain the right of continuing access 102 to books and records maintained by the administrator sufficient 103 to permit the insurer to fulfill all of its contractual 104 obligations to insured persons, subject to any restrictions in 105 the written agreement pertaining tobetween the insurer and the106administrator onthe proprietary rights of the parties in such 107 books and records. 108 Section 6. Subsections (1) and (2) of section 626.89, 109 Florida Statutes, are amended to read: 110 626.89 Annual financial statement and filing fee; notice of 111 change of ownership.— 112 (1) Each authorized administrator shall annually file with 113 the office a full and true statement of its financial condition, 114 transactions, and affairs within 3 months after the end of the 115 administrator’s fiscal year. The statement shall be filed116annually on or before March 1or within such extension of time 117thereforas the office for good cause may have granted. The 118 statement mustand shallbe for the preceding fiscalcalendar119 year and must. The statement shallbe in such form and contain 120 such matters as the commission prescribes and mustshallbe 121 verified by at least two officers of thesuchadministrator.An122administrator whose sole stockholder is an association123representing health care providers which is not an affiliate of124an insurer, an administrator of a pooled governmental self125insurance program, or an administrator that is a university may126submit the preceding fiscal year’s statement within 2 months127after its fiscal year end.128 (2) Each authorized administrator shall also file an 129 audited financial statement performed by an independent 130 certified public accountant. The audited financial statement 131 shall be filed with the office within 5 months after the end of 132 the administrator’s fiscal year and beon or before June 1for 133 the preceding fiscalcalendaryearending December 31.An134administrator whose sole stockholder is an association135representing health care providers which is not an affiliate of136an insurer, an administrator of a pooled governmental self137insurance program, or an administrator that is a university may138submit the preceding fiscal year’s audited financial statement139within 5 months after the end of its fiscal year.An audited 140 financial statement prepared on a consolidated basis must 141 include a columnar consolidating or combining worksheet that 142 must be filed with the statement and must comply with the 143 following: 144 (a) Amounts shown on the consolidated audited financial 145 statement must be shown on the worksheet; 146 (b) Amounts for each entity must be stated separately; and 147 (c) Explanations of consolidating and eliminating entries 148 must be included. 149 150 ================= T I T L E A M E N D M E N T ================ 151 And the title is amended as follows: 152 Delete line 2 153 and insert: 154 An act relating to insurance; amending s. 626.8805, 155 F.S.; revising insurance administrator application 156 requirements; amending s. 626.8817, F.S.; authorizing 157 an insurer’s designee to provide certain coverage 158 information to an insurance administrator; authorizing 159 an insurer to contract a third party to conduct a 160 review of the operations of an insurance administrator 161 under certain circumstances; amending s. 626.882, 162 F.S.; prohibiting a person from acting as an insurance 163 administrator without a specific written agreement; 164 amending s. 626.883, F.S.; requiring an insurance 165 administrator to furnish fiduciary account records to 166 an insurer or its designee; requiring administrator 167 withdrawals from a fiduciary account to be made 168 according to a specific written agreement; providing 169 that an insurer’s designee may authorize payment of 170 claims; amending s. 626.884, F.S.; revising an 171 insurer’s right of access to certain administrator 172 records; amending s. 626.89, F.S.; revising the 173 deadline for filing certain financial statements;