Financial Services Commission Approves Rules Presented By The Office Of Insurance Regulation
May 1, 2007
The Florida Financial Service Commission, which comprises the Governor and the Cabinet, met today, May 1, and discussed the following items:Â
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- Adoption of proposed new Rule 690-142.015, Standardized Requirements Applicable to Insurers After Hurricanes or Natural Disasters, F.A.C.
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- Adoption of Form OIR-B1-1790, “Certificate of True and Accurate Rate Filing.”
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- Approval for publication of proposed amendments to Rule 69O-170.0155, Forms, F.A.C., “Notice of Premium Discounts for Hurricane Loss Mitigation,” and to adopt a new form, “Uniform Mitigation Verification Inspection Form.”
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- Approval for publication of proposed amendments to Rule 69O-149.003(6)(d), Rate Filing Procedures, F.A.C., relating to the amount medical bills are expected to increase over the next year. This is used by health insurers in calculating the appropriate rates to be charged for medical insurance.
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- Approval for publication of proposed amendments to Rules 69O-149.003, .004, .007, Health Rate Filings, F.A.C. relating to guidelines for insurers to assure that the rates charged are in compliance with this mandate. There are three amendments to the Rules:
1. Establishes rules for pooling of cancer claims
2. Prohibits an insurer from knowingly pricing an individual rate in an excessive amount
3. Tightens up requirements for rate certifications to ensure verity of stated rates
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All were approved without objection.
A detailed summary of the items is enclosed on the attached Florida Office of Insurance Regulation agenda.
The Office of Insurance Regulation then issued a press release (below) regarding today’s adoption of the Rules.
Should you have any comments or questions, please do not hesitate to contact this office.
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Financial Services Commission Approves Rules Presented By The Office Of Insurance Regulation
TALLAHASSEE (05/01/2007) – The Financial Services Commission (FSC) today took further steps to implement the insurance reforms Governor Charlie Crist has called for and the House and Senate passed into law during the January special session. Florida Insurance Commissioner Kevin McCarty presented two rules to the FSC that were adopted by unanimous vote.
“Governor Crist and the legislature promised Floridians insurance reform, and they delivered,” said McCarty. “The rules adopted today will help the Office of Insurance Regulation (Office) ensure that hurricane claims are paid in a timely manner and that all future rate filings are signed by company executives swearing under oath that the information in the filings is true and accurate.”
The first rule provides standard requirements for insurance companies to report to the Office in the event of a declared catastrophe. “The point of having insurance companies report their losses promptly after a natural disaster is to ensure the Office’s ability to make sure claims are paid to policyholders in a timely fashion,” said McCarty. In the past, the Office has gathered this information by emergency rule, but having a standardized reporting format in a permanent rule is expected to greatly reduce the submission of incorrect company data, while also allowing the information to be processed and disseminated more quickly to policymakers and interested parties. Click here to read the rule.
The second rule adopts a standard affidavit for insurance company officers and their Chief Actuary to sign attesting to the accuracy and completeness of each rate filing. “No longer can companies submit data to this Office requesting a rate increase and when the data is challenged, claim they were not aware of the incorrect or insufficient information,” McCarty said. The form requires the Chief Actuary and either the Chief Executive Officer or Chief Financial Officer of the insurance company to swear to and sign the notarized document. Click here to read the rule and here to read the affidavit.