Bill Text: FL S0810 | 2013 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Wrap-up Insurance Policies

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2013-06-17 - Chapter No. 2013-175 [S0810 Detail]

Download: Florida-2013-S0810-Comm_Sub.html

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       Florida Senate - 2013                       CS for CS for SB 810
       
       
       
       By the Committees on Commerce and Tourism; and Banking and
       Insurance; and Senator Simmons
       
       
       
       577-03306-13                                           2013810c2
    1                        A bill to be entitled                      
    2         An act relating to wrap-up insurance policies;
    3         creating s. 627.4138, F.S.; providing definitions;
    4         providing that wrap-up insurance policies may include
    5         workers’ compensation claim deductibles equal to or
    6         greater than a specified amount if specified standards
    7         are met; providing an effective date.
    8  
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Section 627.4138, Florida Statues, is created to
   12  read:
   13         627.4138 Wrap-up insurance policies for nonpublic
   14  construction projects.—
   15         (1) As used in this section, the term:
   16         (a) “Specified contracted work site” means construction
   17  being performed during one or more policy years at one site or
   18  multiple sites of the same construction project.
   19         (b) “Wrap-up insurance policy” means a consolidated
   20  insurance program or series of insurance policies issued to the
   21  nonpublic owner, the general contractor, or combination thereof
   22  which may provide one or more of the following types of
   23  insurance coverage for a contractor or subcontractor working at
   24  a specified contracted work site of a construction project:
   25  general liability, property damage liability, workers’
   26  compensation, employers’ liability, or pollution liability.
   27         (2) A wrap-up insurance policy may include a deductible of
   28  $100,000 or more for workers’ compensation claims if:
   29         (a) The workers’ compensation minimum standard premium
   30  calculated on the combined payrolls for all entities covered by
   31  the policy exceeds $500,000;
   32         (b) The estimated cost of the construction to be performed
   33  at each specified contracted worksite of a construction project
   34  is $25 million or more;
   35         (c) The insurer is obligated to pay the first dollar of a
   36  claim like any other workers’ compensation policy without a
   37  deductible;
   38         (d) The reimbursement of the deductible by the insured does
   39  not affect the insurer’s obligation to pay claims;
   40         (e) The insurer complies with all the filing requirements
   41  of the Department of Financial Services under chapter 440 for
   42  all losses, including those below the deductible limit;
   43         (f) The insurer files unit statistical reports with the
   44  National Council on Compensation Insurance which show all
   45  losses, including those below the deductible limit;
   46         (g) The unit statistical reports necessary for the
   47  calculation of an experience modification factor for the insured
   48  are filed with National Council on Compensation Insurance;
   49         (h) The insurer complies with National Council on
   50  Compensation Insurance aggregate financial calls, detail claim
   51  information calls, unit statistical reporting, and other
   52  required calls; and
   53         (i) The insurer has an established program for having the
   54  first-named insured, whether the owner, the general contractor,
   55  or a combination thereof, reimburse the insurer for losses paid
   56  within the deductible.
   57         Section 2. This act shall take effect July 1, 2013.