Purpose


The original intent of the definition in Rule 69L-5.201, F.A.C., was to avoid the complexities of an affiliated self-insurer structure where a parent company was able to, but did not wish to, hold the self-insurance authorization. If the parent company instead wanted to execute a parental guaranty under Rule 69L-5.215, F.A.C., it would be precluded from doing so under the current language of subsection 69L-5.201(2), F.A.C. The added language will allow an affiliated self-insurer structure backed by the financial strength of a parent company (that may or may not operate in Florida) for purposes of providing a parental guaranty for affiliated self-insurers under Rule 69L-5.215, F.A.C., where the parent company elects not to hold the self-insurance authorization itself.