FL H0405

Amends Florida Statutes section 624.4625 to establish requirements for formation of corporation not-for-profit self-insurance funds by two or more not-for-profit corporations organized under Florida law.

Requires participating self-insurance funds to have annual normal premiums exceeding $5 million and each member to receive at least 75 percent of revenues from governmental sources or the public as evidenced by IRS Form 990/990-EZ documentation.

Mandates use of qualified actuaries to determine rates using accepted actuarial principles and establish adequate loss reserves, with annual certifications submitted to the office.

Requires funds with at least one member qualifying solely through public revenue sources to maintain positive surplus with loss and loss adjustment expense reserves at 70-percent confidence level by end of fiscal year, with existing funds having until July 1, 2020 to comply.

Establishes operational requirements including excess insurance coverage with minimum A-rating from authorized carriers, per-loss retention not exceeding $350,000, annual audited financial statements, governance by member officials, and submission of member contracts and annual compliance certifications.

Takes effect July 1, 2015.