FL S1242

Defines "health organization" as HMOs and prepaid limited health service organizations authorized only in Florida, and exempts them from certain risk-based capital formula requirements until January 1, 2020.

Adds medical treatment claims by physicians, hospitals, and medical providers in liquidations of health insurers or HMOs to Class 2 priority claims for distribution from an insurer's estate.

Requires the guaranty association to provide notice and itemized bills of assessment costs to member insurers and state regulators at least 60 days before making assessments.

Establishes separate Class B assessment procedures for long-term care insurance claims, first assessing only insurers that wrote long-term care insurance in the prior 20 years, then expanding to all health and life insurers if needed.

Prohibits officers or directors who served an insolvent insurer or HMO within 2 years before insolvency (on or after July 1, 2017) from serving as officers or directors of HMOs in Florida unless they demonstrate their personal actions did not significantly contribute to the insolvency.