69L-5.201: Definitions
PURPOSE AND EFFECT: The original intent of the definition in Rule 69L-5.201, F.A.C., was to avoid the complexities of an affiliated self-insurer structure where a parent company was able to, but did not wish to, hold the self-insurance authorization. If the parent company instead wanted to execute a parental guaranty under Rule 69L-5.215, F.A.C., it would be precluded from doing so under the current language of subsection 69L-5.201(2), F.A.C. The added language will allow an affiliated self-insurer structure backed by the financial strength of a parent company (that may or may not operate in Florida) for purposes of providing a parental guaranty for affiliated self-insurers under Rule 69L-5.215, F.A.C., where the parent company elects not to hold the self-insurance authorization itself.
SUMMARY: The proposed change amends the definition of “affiliated self-insurer” to provide consistency with the parental guaranty rule.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: There is neither a cost nor an exemption from cost associated with this rule. The clarification of language and amended definition should reduce the regulatory burden on the private sector by providing an additional option to becoming recognized as an affiliated self-insurer.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
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.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: Wednesday, January 25, 2012, 9:30 a.m.
PLACE: Room 102, Hartman Building, 2012 Capital Circle Southeast, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Pam Macon @ Pamela.Macon@myfloridacfo.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Pam Macon, Bureau Chief, Bureau of Monitoring and Audit, Division of Workers’ Compensation, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-4224, (850)413-1708 or Pamela.Macon@myfloridacfo.com
THE FULL TEXT OF THE PROPOSED RULE IS:
69L-5.201 Definitions.
When used in these rules, the following words or terms shall mean:
(1) No change.
(2) “Affiliated Self-Insurer” – Two or more entities affiliated by common majority ownership, as discussed in Rule 3, R13, D., of the NCCI Experience Rating Plan Manual for Workers’ Compensation and Employers Liability Insurance, which either do not have a parent company to hold the self-insurance authorization or provide a parental guaranty in accordance with Rule 69L-5.215, F.A.C, and which are approved by the Department to fund their workers’ compensation liabilities as prescribed in Section 440.38(1)(b), F.S. The NCCI Experience Rating Plan Manual for Workers’ Compensation and Employers Liability, 2003 Edition including updates through October 2008, is hereby incorporated by reference. A copy of the Manual may be obtained from the National Council on Compensation Insurance, Inc., Customer Service Center, 901 Peninsula Corporate Circle, Boca Raton, FL 33487, telephone 1(800)622-4123. A copy of the manual is also available for viewing at the Division of Workers’ Compensation, Bureau of Monitoring and Audit, Self-Insurance Section, 2012 Capital Circle, S.E., Hartman Building, Tallahassee, FL 32399-4224.
(3) through (28) No change.
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________.