Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-187 - PROFESSIONAL LIABILITY SELF-INSURANCE TRUST FUNDS › Section 69O-187.005 - Solvency of the Self-Insurance Trust Fund and Trustees' Responsibilities

Current through Reg. 50, No. 138; July 16, 2024
The Trustees of the Fund shall be responsible for all
				  operations of the Fund and shall assure the financial stability of the
				  operations of the Fund by taking all necessary precautions to safeguard the
				  assets of the Fund, including:
(1)
				Providing for adequate methods of funding to meet anticipated and incurred
				losses. The method of funding shall be based upon a pre-determined plan which
				may include underwriting classifications, geographic territories, and
				experience modifications.
(2)
				Exercising active efforts to collect delinquent accounts resulting from any
				unpaid premiums, charges, and assessments by members. Any member of the Fund
				who fails to pay the required premiums, charges, and assessments after due
				notice shall be ineligible for membership until such past due account,
				including cost of collection, if any, has been paid.
(3) Prohibiting the Trustees or the Service
				Agent of the Fund from utilizing any of the monies collected for any purpose
				other than the payment of claims, claims expenses and Fund expenses. Further,
				the Trustees and the Service Agent of the Fund shall be prohibited from
				borrowing any monies from the Fund.
(4) Investing any funds not held in cash
				accounts, but such investments shall be limited to the following:
(a) Securities issued by the U.S. Government
				or U.S. Government agencies, including bonds, bills, and notes which are
				guaranteed by the U.S. Government.
(b) Investment share accounts, money market
				accounts, certificates of deposit, and similar instruments or accounts in or
				issued by any savings and loan association or duly chartered bank whose
				deposits are insured by a federal agency. Such investments shall not exceed the
				federally insured amount.
(c)
				Securities issued by any state, any county, district, or incorporated district
				therein, including bonds, notes, and tax exempt securities which are the direct
				obligations of such state, county, district, or city and for payment of the
				principal and interest of which the state, county, district, or city has lawful
				authority to levy taxes or make assessments and revenue securities insured by a
				recognized insurance association. Such securities with the exception of revenue
				securities shall be of investment grade meaning of the top three generic letter
				rating classifications by a securities rating agency. Revenue securities shall
				be of the top investment grade. "Securities rating agency" means Moody's
				Investors Service, Standard and Poor's Corporation, Duff and Phelps, Inc., or
				any successor organization of the aforementioned companies. Further limitations
				on such securities shall be as follows:
1. At
				any time a Fund may invest up to one-hundred (100) percent of the Fund's
				invested assets in the highest rated investment grade.
2. At any time no more than fifty (50)
				percent of the Fund's invested assets may be invested in the second or third
				highest investment grade.
3. At any
				time no more than twenty-five (25) percent of the Fund's invested assets may be
				invested in the third highest investment grade.
4. No more than five (5) percent of the
				Fund's assets shall be invested in any one issuer.
(d) Other investment alternatives, subject to
				Office approval, if such alternative investments provide the same or similar
				degree of security as the investments permitted under paragraphs (a), (b) and
				(c), above.
(e) Other investment
				alternatives may be considered for Funds with assets exceeding on hundred
				million dollars on a special consent basis and only with Office
				approval.