Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-187 - PROFESSIONAL LIABILITY SELF-INSURANCE TRUST FUNDS › Section 69O-187.010 - Bylaws, Mutual Covenants, Rules and Regulations, and Service Agent's Contract

Current through Reg. 50, No. 138; July 16, 2024
As a condition of the Office's approval of the Fund, the
				  documents filed pursuant to Rule
				  69O-187.004, F.A.C., shall
				  contain all of the following provisions, but may also contain other provisions
				  not inconsistent with these rules or with the required provisions.
(1) The bylaws of the Fund shall contain the
				name and location of the fund, its purposes and powers. The meeting of the
				members shall be specified and meet no less than annually. Members shall be
				advised of voting rights. Trustee number, qualifications, term of office,
				election process, and selection of officers shall be addressed. Duties of the
				Trustees, the times and places of meetings, the removal of a Trustee, the
				replacement of the Trustee created by the vacancy therein, and any compensation
				as may be determined shall be a part of this document. Alteration, amendment or
				repeal of any part of this document shall only be as specified
				therein.
(2) The mutual covenants,
				herein after referred to as the Agreement, shall be given to and accepted by
				each member of the Fund. The Agreement shall be executed by the Chairman of the
				Trustees, attested by its Secretary, by the Service Agent and by the member.
				The membership shall be defined, and the statutory authority to pool such
				liabilities to form the self-insurance trust fund shall be clearly stated. The
				initial Trustees shall be designated. The parties to this Agreement shall agree
				as follows:
(a) The Fund and each member will
				individually, severally and proportionately, but not jointly except as provided
				in Section 627.357, F.S., covenant and
				agree to pay premiums, charges and assessments based upon appropriate
				classifications and rates, and the Fund and its members will individually,
				severally and proportionately covenant to assume and discharge, by payment, any
				lawful awards or final judgments entered against any member of the fund, and
				further, the members will individually, severally and proportionately covenant
				and agree there will be no disbursements out of the Fund by way of dividends,
				refunds or distribution of surplus other than upon the Office's
				approval.
(b) The members shall by
				executing the Agreement ratify and confirm appointment by the Trustees of the
				Service Agent, individually and collectively, and further, the members shall be
				advised of the duties and responsibilities of the Service Agent as provided by
				Rule 69O-187.002, F.A.C.
(c) The Trustees shall be sole judge of
				whether an applicant shall be admitted to membership, and whether a member
				shall be retained by the Fund, and further, shall give proper notice in
				accordance with Section
				627.4147(1)(c),
				F.S., to any member expelled from the Fund.
(d) The Trustees shall set up, operate and
				enforce the bylaws and rules and regulations.
(e) There shall be provisions that require
				each member to abide by the following:
1. Loss
				prevention and risk management recommendations of the Trustees and Service
				Agent.
2. In the event of a loss or
				claim, give immediate notification to the Service Agent on the prescribed
				forms.
3. Pay all premiums, charges
				and assessments promptly as required by the Trustees.
4. The member appoints the Service Agent as
				his agent and attorney-in-fact to act in his behalf and to execute all
				contracts, reports, waivers, agreements, excess insurance contracts, and
				service contracts; to make or arrange for payment of claims, and all other
				things required or necessary insofar as they affect the terms of this
				Agreement.
(f) Subject to
				the terms, conditions, limitations and exclusions of the mutual covenants of
				the Fund or the policy, the Fund shall defend in the name of and on behalf of
				the member any suits or other proceedings which may at any time be instituted
				against him on account of injury, death or disablement arising out of medical
				malpractice including suits or other proceedings alleging such malpractice and
				demanding damages or compensation therefor, although such suits, other
				proceedings, allegations or demands are wholly groundless, false or fraudulent,
				and to pay all judgments, awards or costs taxed against the member in any legal
				proceeding defended by the Fund, all interest accruing after entry of judgment
				and all expenses incurred for investigation, negotiation and defense.
(g) The Trustees, the Service Agent and any
				of their personal representatives shall be permitted to inspect the places
				where the covered professional services are performed and examine the members'
				books, documents, and records in order to verify the charges, premiums or
				assessments payable.
(h) The
				Trustees shall set aside a reasonable sum for the operating and administrative
				expenses of the Fund. All other funds shall be used only for payment of claims,
				including settlements, awards, judgments, legal fees, costs in all contested
				cases and all expenses of investigation.
(i) The Fund year shall be as stated in the
				Agreement.
(j) Liability of the
				Trustees shall be in accordance with Section
				624.489, F.S.
(k) The member shall be bound by all terms of
				the Agreement. Alteration, amendment or repeal of any part of the Agreement
				shall only be as specified therein.