Florida Regulations 69L-5.201

From Wcc
Jump to: navigation, search

Florida > Regulations

§ 69L-5.201 Definitions

History:



69L-5.201 Definitions.

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, 2012 Capital Circle, S.E., Hartman Building, Tallahassee, FL 32399-4224.

(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 Section 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 Section 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, 2012 Capital Circle, S. E., Hartman Building, Tallahassee, FL 32399-4224.

(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. History-New 3-9-10, Amended 3-7-12.