SB 264 — Florida Workers’ Compensation Joint Underwriting Association

Florida Senate - 2019 CS for SB 264 By Senator Gruters 23-00407-19 2019264__ A bill to be entitled An act relating to the FloridaCommittee Workers’on CompensationBanking Jointand UnderwritingInsurance; Association;

and Senator Gruters 597-02917-19 2019264c1 A bill to be entitled An act relating to the Florida Workers’ Compensation Joint Underwriting Association;

providing that certain dividends or premium refunds must be retained by the association’s joint underwriting plan of insurers foras futuresurplus, use;subject to specified diligent search and notification requirements and subject to certain claims by former insureds;

defining the terms “diligent search” and “active notification attempt”;

913 Be It Enacted by the Legislature of the State of Florida:

1115 Section 1. Paragraph (h) of subsection (5) of section 627.311, Florida Statutes, is amended to read:

3. Any dividend or premium refund thatnot cannot be paid to a former insured of the plan because the former insured cannot be reasonably located must be retained by the plan foras futuresurplus, use.subject to the following conditions:

Sectiona. Within 2. This12 actmonths shallafter takethe effectfailed uponinitial becomingdelivery aof law.the dividend or premium refund, the plan shall:

(I) Conduct a diligent search to locate the former insured.

As used in this sub-subparagraph, the term “diligent search” means the use of a reasonable and prudent method under particular circumstances to locate a former insured to whom a dividend or premium refund is owed.

Such method includes searching a nationwide database by using the taxpayer identification number or social security number, if known;

cross-indexing with other records related to the former insured;

mailing to the last known address unless the last known address is known to be inaccurate;

or engaging a licensed agency or company capable of conducting such search and providing an updated address.

(II) Notify the insurance agency on the policy of such dividend or premium refund.

Notification to the insurance agency does not constitute notification to the former insured and does not make the insurance agency responsible for the dividend or premium refund.

(III) For an unclaimed dividend or premium refund valued at $250 or more, make at least one active notification attempt after completing the diligent search.

As used in this sub-sub subparagraph, the term “active notification attempt” means an attempt to directly contact a former insured to notify him or her of an unclaimed dividend or premium refund.

The term does not include other means of notification which do not involve an attempt to directly contact the former insured, such as publication of the name of the former insured in a newspaper, on television, on the Internet, or through other promotional efforts and items.

b. The plan shall publish and maintain on the plan’s website a list of the names of the former insureds who have unclaimed dividend or premium refunds and the amount of the dividend or premium refunds owed.

c. Notwithstanding s.

95.11, a former insured with satisfactory proof may claim any such dividend or premium refund from the plan at any time.

Section 2. This act shall take effect July 1, 2019.