7186650, 69L-5.101 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 7186650

Notice of Proposed Rule

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

Division of Workers' Compensation

Chapter:

RULES FOR SELF-INSURERS UNDER THE WORKERS' COMPENSATION ACT

Overview

RULE:

69L-5.101	Definitions (Repealed)
69L-5.102	General Requirements (Repealed)
69L-5.103	Application (Repealed)
69L-5.104	Alternate Method of Application (Repealed)
69L-5.105	General Requirements (Repealed)
69L-5.106	Financial Statement or Financial Summary (Repealed)
69L-5.107	Actuarial Reports (Repealed)
69L-5.108	Security Deposits (Repealed)
69L-5.109	Excess Insurance (Repealed)
69L-5.110	Experience Records (Repealed)
69L-5.111	Late Reports; Penalties (Repealed)
69L-5.112	General Requirements (Repealed)
69L-5.113	Application to Provide Servicing (Repealed)
69L-5.114	Retaining Authorization as Service Company; Recertification (Repealed)
69L-5.115	Withdrawal of Authorization (Repealed)
69L-5.116	Review and Audit (Repealed)
69L-5.117	Forms, Manuals, and Instructions (Repealed)
69L-5.201	Definitions
69L-5.202	Scope of Self-Insurance Authorization
69L-5.203	Payroll Reporting
69L-5.204	Maintenance of Payroll Records, Review and Audit
69L-5.205	Loss Data Reporting
69L-5.206	Maintenance of Loss Data Records, Review and Audit
69L-5.207	Outstanding Liabilities Reporting
69L-5.208	Maintenance of Outstanding Liabilities Records, Review and Audit
69L-5.209	Financial Statements Reporting
69L-5.210	Actuarial Reports
69L-5.211	Changes in Anniversary Rating Date
69L-5.212	Contact Information Reporting
69L-5.213	Subsidiary, Affiliate and Location Reporting
69L-5.214	Indemnity Agreements for Affiliated Self-Insurers
69L-5.215	Parental Guaranty
69L-5.216	Provision of Benefits and Safe Working Environment by Self-Insurers
69L-5.217	Civil Penalties and Fines
69L-5.218	Security Deposits
69L-5.219	Excess Insurance
69L-5.220	Drug-Free Workplace Premium Credit Program
69L-5.221	Safety Program Premium Credit
69L-5.222	Revocation and Employer Compliance
69L-5.223	Election Process
69L-5.224	Termination
69L-5.225	Requirements
69L-5.226	Application Process
69L-5.227	Alien Corporations Additional Requirements
69L-5.228	Termination
69L-5.229	Application Process
69L-5.230	Contracting with a Qualified Servicing Entity
69L-5.231	Forms and Instructions

PURPOSE:

Rule Chapter 69L-5, F.A.C. is being amended to concurrently repeal and replace all existing rules with new rules which have been restructured and renumbered to promote clarity and efficiencies to the process by which self-insured employers comply with the duties and obligations associated with the privilege of self-insuring pursuant to Chapter 440, Florida Statutes. The purpose of Rule Chapter 69L-5, F.A.C., is to interpret and implement provisions of Chapter 440, Florida Statutes, regarding regulation by the Department of Financial Services and the Florida Self-Insurers Guaranty Association, Inc. of entities self-insuring the payment of compensation for Florida employees. The proposed new rules address the scope of the self-insurance authorization, the required filings, record maintenance and audit processes for self-insurers, the self-insurance process for both governmental entities and members and former members of the Florida Self-Insurers Guaranty Association, Inc., and the application process for and regulations regarding servicing entities. The proposed new rules also adopt forms for use with said rules. The proposed new rules differ from the existing self-insurer rules in various ways, including increasing the minimum net worth requirement to qualify to self-insure and by establishing new guidelines to be used in determining the financial strength of current and former self-insurers. In addition, the proposed new rules require security deposits for current and former self-insurers to be based on the entities’ long term issuer credit rating in order to create a more structured and objective system for determining financial strength necessary to ensure timely payment of current and future claims. The proposed new rules also outline the penalties for self-insurers who late-file reports, fail to file them, fail to maintain loss records, or misclassify losses or other data which impacts the calculation and collection of assessments for the Workers’ Compensation Administration Trust Fund and the Special Disability Trust Fund. Further, the proposed new rules include a change in the specific excess insurance requirements regarding the maximum retention amount allowed without additional approval, provide for an electronic version of Form DFS-F2-SI-17, Unit Statistical Report, and eliminate the alternative method of application to self-insure.

SUMMARY:

Concurrently repeals all existing rules in Rule Chapter 69L-5, F.A.C., replacing them with proposed new rules which have been restructured and revised to clarify regulatory guidelines for employers self-insuring payment of compensation for employees, pursuant to Chapter 440, Florida Statutes. Among the proposed revisions included are those which address requirements regarding the financial strength, credit quality, net worth, security deposits, and excess insurance associated with the self-insurance process; provisions relating to penalties for self-insurers filing late reports, and those who fail to file or otherwise fail to comply with the proposed rules.

RULEMAKING AUTHORITY:

440.38(1), (2), (3), 440.385(6), 440.525(2), 440.591 FS.

LAW:

440.02(24), 440.101, 440.102, 440.1025, 440.38(1), (2), (3), 440.385(1), (3), (6), 440.525 FS.

PRINT PUBLISH DATE:

5/29/2009 Vol. 35/21

COMMENTS:

From 5/29/2009 To 6/19/2009 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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