Commercial Insurance Rate Filing and Approval Exemption Bill (CS/CS/HB 99) Unanimously Passes Florida House
Apr 1, 2011
CS/CS/HB 99 by the Florida House of Representatives’ Economic Affairs Committee and Insurance and Banking Subcommittee unanimously passed the full House with limited discussion yesterday, March 31, 2011.
The bill, originally sponsored by State Representative Brad Drake, would allow new types of commercial insurance to be exempt from the rate filing and approval process. Thus, insurance companies writing these types of commercial insurance would not have to file with or obtain approval of the rates for these types of commercial insurance by the Florida Office of Insurance Regulation (“OIR”) before the insurer could charge the rate.
The types of commercial insurance exempted by CS/CS/HB 99 are:
- Fiduciary Liability
- General Liability
- Non-residential Property, but not collateral protection insurance
- Non-residential Multi-peril
- Excess Property
- Burglary and Theft.
The bill also would expand the current rate filing and approval exemption for commercial motor vehicle insurance, as well as delete some of the information required on the notice an insurer must give the OIR when the rate changes for commercial insurance exempt from rate filing.
CS/CS/HB 99 is expected to allow insurers selling the types of coverages listed in the bill to make corresponding pricing changes on a more expedited basis and avoid some of the expense incurred in a full rate filing and review process.
If signed into law, CS/CS/HB 99 would become effective on October 1, 2011.
Should you have any questions or comments, please contact Colodny Fass.