HB 215 2024
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to risk retention groups; amending s. 2
627.944, F.S.; providing that risk retention groups 3
authorized to do business in this state are deemed to 4
be insurance companies authorized to do business in 5
this state; providing an effective date. 6
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Be It Enacted by the Legislature of the State of Florida: 8
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Section 1. Section 627.944, Florida Statutes, is am ended 10
to read: 11
627.944 Risk retention groups not certificated in this 12
state.—Risk retention groups authorized to do business in this 13
state pursuant to this section are deemed to be insurance 14
companies authorized to do business in this state. Risk 15
retention groups certificated or licensed in states other than 16
this state and seeking to do business as a risk retention group 17
in this state must observe and abide by the laws of this state 18
as follows: 19
(1) NOTICE OF OPERATIONS AND DESIGNATION OF CHIEF 20
FINANCIAL OFFICER AS AGENT.—Before offering insurance in this 21
state, a risk retention group shall submit to the office: 22
(a) A statement identifying the state or states in which 23
the risk retention group is certificated or licensed as a 24
liability insurance company, date of certification or licensing, 25
HB 215 2024
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
its principal place of business, and such other information, 26
including information on its membership, as the office may 27
require to verify that the risk retention group is qualified as 28
a risk retention group under the pr ovisions of this part. 29
(b) A copy of its plan of operations or a feasibility 30
study and revisions of such plan or study submitted to its state 31
of domicile; provided, however, that the provision relating to 32
the submission of a plan of operation or a feasib ility study 33
shall not apply with respect to any line or classification of 34
liability insurance which was defined in the Product Liability 35
Risk Retention Act of 1981 before October 27, 1986, and which 36
was offered before such date by any risk retention group which 37
had been certificated or licensed and operating for not less 38
than 3 years before such date. 39
(c) A statement of registration which designates the Chief 40
Financial Officer or her or his designee as its agent for the 41
purpose of receiving service of leg al documents of process. 42
(2) FINANCIAL CONDITION. —Any risk retention group doing 43
business in this state shall submit to the office: 44
(a) A copy of the group's financial statement submitted to 45
its state of domicile, which shall be certified by an 46
independent public accountant and contain a statement of opinion 47
on loss and loss adjustment expense reserves made by a member of 48
the American Academy of Actuaries or a qualified loss reserve 49
specialist under criteria established by rule of the commission 50
HB 215 2024
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
after considering any criteria established by the National 51
Association of Insurance Commissioners. 52
(b) A copy of each examination of the risk retention group 53
as certified by the insurance commissioner or public official 54
conducting the examination. 55
(c) Upon request by the office, a copy of any audit 56
performed with respect to the risk retention group. 57
(d) Such information as may be required to verify its 58
continuing qualification as a risk retention group under the 59
provisions of this part. 60
(3) TAXATION.—All premiums paid for insurance or coverages 61
on risks located within this state to a risk retention group 62
shall be subject to taxation at the same rate and subject to the 63
same interest, fines, and penalties for nonpayment as that 64
applicable to eligible surplus lines insurers. Each agent 65
utilized in any transaction shall report and pay the taxes for 66
the premiums for risks which they have placed with or on behalf 67
of a risk retention group not certificated in this state. In the 68
event that an agent fails to pay the tax, each risk retention 69
group shall pay the tax for insured or covered risks located 70
within this state. Further, each risk retention group shall 71
report all premiums paid to it for insured or covered risks 72
located within this state. 73
(4) COMPLIANCE WITH UNFAIR CLAIM SETTLEMENT PRACTICES 74
LAW.—Any risk retention group, its agents, and its 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
representatives shall comply with the unfair claim settlement 76
practices law of this state as set forth in s. 626.9541(1)(i). 77
(5) DECEPTIVE, FALSE, O R FRAUDULENT PRACTICES. —Any risk 78
retention group shall comply with and be subject to the laws of 79
this state regarding deceptive, false, or fraudulent acts or 80
practices, including the provisions of part IX of chapter 626. 81
If the office seeks an injunction r egarding conduct in violation 82
of these laws, the injunction may be obtained from any Florida 83
court of competent jurisdiction. 84
(6) EXAMINATION REGARDING FINANCIAL CONDITION. —Any risk 85
retention group must submit to an examination by the office to 86
determine its financial condition if the insurance commissioner 87
of the jurisdiction in which the group is certificated or 88
licensed has not initiated an examination or does not initiate 89
an examination within 30 days after a request by the office. Any 90
examination shall be coordinated to avoid unjustified repetition 91
and conducted in an expeditious manner. 92
(7) NOTICE TO PURCHASERS. —Any policy issued by a risk 93
retention group shall contain in 10 -point type on the front page 94
and the declaration page, the following provi sion: 95
"Notice, this policy is issued by your risk retention group. 96
Your risk retention group may not be subject to all of the 97
insurance laws and regulations of your state. State insurance 98
insolvency guaranty funds are not available for your risk 99
retention group." 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(8) PROHIBITED ACTS REGARDING SOLICITATION OR SALE. —The 101
following acts by a risk retention group are hereby prohibited: 102
(a) The solicitation or sale of insurance by a risk 103
retention group to any person who is not eligible for membership 104
in the group. 105
(b) The solicitation or sale of insurance by, or operation 106
of, a risk retention group that is in a hazardous financial 107
condition or is financially impaired. 108
(9) PROHIBITED OWNERSHIP BY AN INSURANCE COMPANY. —No risk 109
retention group shall be allow ed to do business in this state if 110
an insurer is directly or indirectly a member or owner of the 111
risk retention group, other than in the case of a risk retention 112
group all of whose members are insurers. 113
(10) PROHIBITED COVERAGE. —No risk retention group m ay 114
offer insurance coverage prohibited by the Florida Insurance 115
Code or declared unlawful by the highest court of this state. 116
(11) DELINQUENCY PROCEEDINGS. —A risk retention group not 117
domiciled in this state but doing business in this state shall 118
comply with a lawful order issued in a voluntary dissolution 119
proceeding or in a delinquency proceeding commenced by the 120
office if there has been a finding of financial impairment after 121
an examination under subsection (6). 122
(12) UTILIZATION OF AGENT. —A risk retention group shall 123
utilize an agent licensed and appointed in this state in order 124
to solicit, transact, underwrite, or provide insurance on a risk 125
HB 215 2024
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
of a group member, which risk is located in this state. 126
Section 2. This act shall take effect July 1, 2024. 127