Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69L - Division of Workers' Compensation › Chapter 69L-5 - RULES FOR SELF-INSURERS UNDER THE WORKERS' COMPENSATION ACT › Section 69L-5.225 - Requirements

Current through Reg. 50, No. 138; July 16, 2024
An entity applying for a self-insurance authorization
				  pursuant to Section  440.38(1)(b),
				  F.S., shall meet the following requirements and shall submit a completed
				  application package at least ninety (90) days prior to the desired effective
				  date of the self-insurance authorization:
(1) Net Worth - The applicant's most recent
				audited Financial Statements shall show a Net Worth of the greater of
				$10,000,000 U.S. or three (3) times Standard Premium. For purposes of meeting
				the Net Worth requirement, the Net Worths of the companies comprising an
				Affiliated Self-Insurer may be combined.
(2) Financial Strength - A current Credit
				Rating of not less than "Ba3", "BB-", or "BB-" issued by Moody's Investors
				Services, Standard & Poor's or Fitch Ratings, respectively. In the event an
				applicant does not have a current published Credit Rating, the Association
				shall determine an equivalent rating by performing an analysis of the Financial
				Statements provided in accordance with Rules
				 69L-5.209 and
				 69L-5.225, F.A.C., the foregoing
				financial strength requirement shall be based on the equivalent rating as the
				Credit Rating. An applicant that disagrees with the equivalent rating may
				provide a current Credit Rating. If the applicant provides a current Credit
				Rating, the financial strength requirement shall be based on the current Credit
				Rating instead of the equivalent rating.
(3) Financial Statements - An applicant shall
				have at least three (3) years of Financial Statements in the name of the
				applicant. The Financial Statements for the most recent year shall be audited
				in accordance with Generally Accepted Auditing Standards. If the Financial
				Statements for the two (2) years prior to the most recent year have been
				audited in accordance with Generally Accepted Auditing Standards, the audit
				reports(s) on these Financial Statements shall also be submitted.
(4) An applicant that does not have three (3)
				years of Financial Statements in its own name due to a recent purchase or
				merger, may use the Financial Statements of its predecessor(s), provided there
				has been no change to the structure of the entity or the line of business which
				would adversely affect the applicant's financial condition.
(5) Security Deposit - The applicant shall
				provide a Security Deposit that conforms to the requirements of Rule
				 69L-5.218, F.A.C. In the event
				the applicant meets the above financial strength requirement, but does not have
				an Investment Grade Credit Rating, the applicant shall provide a Security
				Deposit in an amount equal to the actuarially determined outstanding loss
				reserves forecasted to a date one year in the future, discounted to such
				forecasted date using a four percent (4%) discount rate, as calculated in its
				Actuarial Report. In no case, shall the amount of the Security Deposit be less
				than $100,000.
(6) Specific Excess
				Insurance Policy Requirements - The applicant shall provide proof of a Specific
				Excess Insurance Policy that conforms to the requirements of Rule
				 69L-5.219, F.A.C.
(7) Provision of Benefits and a Safe Working
				Environment - The applicant shall provide a completed Form DFS-F2-SI-19
				(Certification of Servicing for Self-Insurers), effective 08/09, as previously
				incorporated by reference in Rule
				 69L-5.216, F.A.C., detailing the
				proposed servicing arrangements and accompanying documentation that conforms to
				the requirements of Rule
				 69L-5.216, F.A.C.
(8) In order for an application to be
				considered complete, all required documents must be submitted, including the
				Security Deposit, proof of Specific Excess Insurance Policy, and Certification
				of Servicing for Self-Insurers.
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.
New 3-9-10, Amended
					 5-13-14.