Fla. Stat. 395.106
Risk pooling by certain hospitals and hospital systems
(1)
Notwithstanding any other provision of law, any two or more hospitals licensed in this state and located in this state may form an alliance for the purpose of pooling and spreading liabilities of its members relative to property exposure, implementing self-insurance coverage for its members, or securing such property insurance coverage for the benefit of its members, provided an alliance that is created:Has annual premiums in excess of $3 million.Maintains a continuing program of premium calculation and evaluation and reserve evaluation to protect the financial stability of the alliance in an amount and manner determined by consultants using catastrophic (CAT) modeling criteria or other risk-estimating methodologies, including those used by qualified and independent actuaries.Causes to be prepared annually a fiscal year-end financial statement based upon generally accepted accounting principles and audited by an independent certified public accountant within 6 months after the end of the fiscal year.Has a governing body comprised entirely of member entities whose representatives on such governing body are specified by the organizational documents of the alliance.(a)
Has annual premiums in excess of $3 million.(b)
Maintains a continuing program of premium calculation and evaluation and reserve evaluation to protect the financial stability of the alliance in an amount and manner determined by consultants using catastrophic (CAT) modeling criteria or other risk-estimating methodologies, including those used by qualified and independent actuaries.(c)
Causes to be prepared annually a fiscal year-end financial statement based upon generally accepted accounting principles and audited by an independent certified public accountant within 6 months after the end of the fiscal year.(d)
Has a governing body comprised entirely of member entities whose representatives on such governing body are specified by the organizational documents of the alliance.(2)
For purposes of this section, the term:“Alliance” means a corporation, association, limited liability company, or partnership or any other legal entity formed by a group of eligible entities.“Property coverage” means property coverage provided by self-insurance or insurance for real or personal property of every kind and every interest in such property against loss or damage from any hazard or cause and against any loss consequential to such loss or damage.(a)
“Alliance” means a corporation, association, limited liability company, or partnership or any other legal entity formed by a group of eligible entities.(b)
“Property coverage” means property coverage provided by self-insurance or insurance for real or personal property of every kind and every interest in such property against loss or damage from any hazard or cause and against any loss consequential to such loss or damage.(3)
An alliance that meets the requirements of this section is not subject to any provision of the insurance code.(4)
An alliance that meets the requirements of this section is not an insurer for purposes of participation in or coverage by the Florida Insurance Guaranty Association established in part II of chapter 631. Alliance self-insured coverage is not subject to insurance premium tax, and any such alliance formed pursuant to this section may not be assessed for purposes of s. 215.555 or s. 627.351.(5)
Reinsurance companies complying with s. 624.610 may issue coverage directly to an alliance self-insuring its liabilities under this section. An alliance purchasing reinsurance shall be considered an insurer for the sole purpose of entering into such reinsurance contracts. Contracts of reinsurance issued to an alliance under this section shall receive the same tax treatment as reinsurance contracts issued to insurance companies. However, the purchase of reinsurance coverage by an alliance self-insuring pursuant to this section shall not be construed as authorizing an alliance to otherwise act as an insurer.
Source:
Section 395.106 — Risk pooling by certain hospitals and hospital systems, https://www.flsenate.gov/Laws/Statutes/2024/0395.106 (accessed Aug. 7, 2025).