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-5.201 - Definitions

Current through Reg. 50, No. 138; July 16, 2024
When used in these rules, the following words or terms shall
				  mean:
(1) "Actuarial Report" - A
				report signed by a member of the American Academy of Actuaries providing an
				opinion of the appropriate present value of the self-insured reserves incurred
				in this state, using a four percent (4%) discount rate, for current and future
				claims.
(2) "Affiliated
				Self-Insurer" - Two or more entities affiliated by common majority ownership,
				as discussed in Rule 3, R13, D., of the NCCI Experience Rating Plan Manual for
				Workers' Compensation and Employers Liability Insurance, which either do not
				have a parent company to hold the self-insurance authorization or provide a
				parental guaranty in accordance with rule
				 69L-5.215, F.A.C., and which are
				approved by the Department to fund their workers' compensation liabilities as
				prescribed in section
				 440.38(1)(b),
				F.S. The NCCI Experience Rating Plan Manual for Workers' Compensation and
				Employers Liability, 2003 Edition including updates through October 2008, is
				hereby incorporated by reference. A copy of the Manual may be obtained from the
				National Council on Compensation Insurance, Inc., Customer Service Center, 901
				Peninsula Corporate Circle, Boca Raton, FL 33487, telephone 1(800)622-4123. A
				copy of the manual is also available for viewing at the Division of Workers'
				Compensation, Bureau of Monitoring and Audit, Self-Insurance Section, 1579
				Summit Lake Drive, Tallahassee, FL 32317.
(3) "Alien Corporation" - A corporation
				formed under the laws of any country other than the United States.
(4) "A. M. Best Company" - An organization
				recognized by the U.S. Securities and Exchange Commission as a nationally
				recognized statistical rating organization whose ratings are permitted to be
				used for regulatory purposes.
(5)
				"Anniversary Rating Date" - The effective month and day of the beginning of the
				self-insurance authorization and each anniversary thereafter unless a different
				date is established.
(6)
				"Association" - The Florida Self-Insurers Guaranty Association, Inc.
(7) "Authorized Representative" - An
				individual or company authorized by the Department to operate on behalf of the
				Department; or an individual or company authorized by the Association to
				operate on behalf of the Association.
(8) "Credit Rating" - A long-term issuer
				credit rating issued by Moody's Investors Service, Standard & Poor's or
				Fitch Ratings. A credit rating assigned to a specific debt issue is not an
				acceptable substitute for a long-term issuer credit rating.
(9) "Current Self-Insurer" - An employer
				authorized by the Department to fund its workers' compensation liabilities as
				prescribed in sections
				 440.38(1)(b) or
				(6), F.S., whose authorization to self insure
				has not been revoked or voluntarily terminated.
(10) "Department" - Florida Department of
				Financial Services.
(11) "Division"
				- The Division of Workers' Compensation within the Florida Department of
				Financial Services.
(12) "F.A.C." -
				Florida Administrative Code.
(13)
				"F.S." - Florida Statutes.
(14)
				"FSIGA Member" - An individual self-insurer, as defined in sections
				 440.02(24)(a) 
				and  440.38(1)(b),
				F.S., other than individual self-insurers which are public utilities or
				governmental entities, that received authorization from the Department to
				self-insure pursuant to section
				 440.38(1)(b),
				F.S., including individual self-insurers for which the self-insurance
				authorization has been revoked or voluntarily surrendered.
(15) "Financial Statement(s)" - A
				presentation of financial data, including accompanying notes, derived from
				accounting records that purports to show financial position and intended to
				communicate an entity's economic resources or obligations at a point in time,
				and the results of operations and cash flows for a period of time, in
				accordance with Generally Accepted Accounting Principles and presented in the
				English language.
(16) "Former
				Self-Insurer" - An employer authorized by the Department to fund its workers'
				compensation liabilities as prescribed in sections
				 440.38(1)(b) or
				(6), F.S., whose authorization has been
				revoked or voluntarily terminated with remaining outstanding workers'
				compensation liabilities.
(17)
				"Generally Accepted Accounting Principles" - Accounting principles generally
				accepted in the United States of America in effect as of June 1, 2006,
				including, but not limited to, Accounting Principles Board Opinions Nos. 1 to
				31 as published by the American Institute of Certified Public Accountants, and
				statements of accounting standards and interpretations thereof, as published by
				the Financial Accounting Standards Board (FASB). These materials are entitled
				Original Pronouncements 2008/2009 Edition, Vols. I, II, & III, dated June
				1, 2008, and available from FASB, 401 Merritt 7, P.O. Box 5116, Norwalk, CT
				06856-5116, 1(800)748-0659,
http://www.fasb.org
.
(18) "Generally Accepted Auditing Standards"
				- Auditing standards generally accepted in the United States of America in
				effect as of January 1, 2009, including, but not limited to, general, field
				work and reporting standards approved and adopted by the membership of the
				American Institute of Certified Public Accountants (AICPA), as amended by the
				AICPA Auditing Standards Board (ASB), standards promulgated by the ASB in the
				form of Statements on Auditing Standards and standards promulgated by the
				Public Company Accounting Oversight Board (PCAOB). The AICPA materials are
				entitled Codification of Statements on Auditing Standards, dated January 1,
				2009, available from the AICPA at
http://www.cpa2biz.com
or call
				1(888)777-7077. The rules and standards of the PCAOB are available at no charge
				at
http://www.pcaobus.org
.
(19) "Governmental Entity" - The state and
				its boards, bureaus, departments, and agencies and all of its political
				subdivisions which employ labor, and the state universities, pursuant to
				section  440.38(6),
				F.S.
(20) "Investment Grade Credit
				Rating" - A long-term issuer credit rating equal to or higher than "Baa3",
				"BBB-", or "BBB-", issued by Moody's Investors Service, Standard & Poor's
				or Fitch Ratings, respectively. A credit rating assigned to a specific debt
				issue is not an acceptable substitute for a long-term issuer credit
				rating.
(21) "Manual Premium" -
				Premium determined by multiplying the payroll (segregated into the proper
				workers' compensation job classifications) times the manual rates per $100 of
				payroll in effect at the start of the payroll period covered, as further
				defined in the NCCI Basic Manual for Workers' Compensation and Employers'
				Liability Insurance. The NCCI Basic Manual for Workers' Compensation and
				Employers Liability, 2001 Edition including updates through June 1, 2009 is
				hereby incorporated by reference. A copy of the Manual may be obtained from the
				National Council on Compensation Insurance, Inc., Customer Service Center, 901
				Peninsula Corporate Circle, Boca Raton, FL 33487, telephone 1(800)622-4123. A
				copy of the manual is also available for viewing at the Division of Workers'
				Compensation, Bureau of Monitoring and Audit, Self-Insurance Section, 1579
				Summit Lake Drive, Tallahassee, FL 32317.
(22) "NCCI" - The National Council on
				Compensation Insurance, Inc.
(23)
				"Net Worth" - Stockholders' equity, owners' equity or net assets as shown on
				the balance sheet of the Financial Statements.
(24) "Qualified Servicing Entity" - Any
				company approved by the Department to adjust and submit workers' compensation
				claims to the Division and/or provide safety services and loss control on
				behalf of the self-insurer.
(25)
				"Security Deposit" - A security deposit conforming to the requirements of
				section 440.38(1)(b)4., F.S.
(26)
				"Specific Excess Insurance Policy" - A specific excess workers' compensation
				insurance policy approved by the Florida Office of Insurance Regulation which
				provides for the actual transfer of risk to the excess carrier.
(27) "Standard Premium" - As defined in Rule
				3, R33, 20., of the NCCI Basic Manual for Workers' Compensation and Employers'
				Liability Insurance. The NCCI Basic Manual for Workers' Compensation and
				Employers Liability Insurance, 2001 Edition including updates through June 1,
				2009 has been previously incorporated by reference.
(28) "Successor Entity" - Any person,
				business entity, or group of persons or business entities, which holds or
				acquires legal or beneficial title to the majority of the assets or the
				majority of the shares of a Current Self-Insurer or Former Self-Insurer,
				pursuant to sections 440.38(1)(b)3. and
				 440.385(1)(b),
				F.S.
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
					 3-7-12.