Florida Cabinet Adopts Alternative Methods to Handwritten Statements; Other Insurance-Related Matters
May 15, 2007
At the Florida Cabinet Meeting on Tuesday, May 15, 2007, the Financial Services Commission (“Commission”) took action on five insurance-related matters.
Below is a brief summary of these items and subsequent pertinent discussions.
The first item considered was the adoption of proposed amendment to Rule 690-167.014, Alternative Methods to Handwritten Statements. This Rule developed as a result of actions the Legislature took in House Bill 1A, which passed during the January, 2007 Special Session. It relates to policyholders with disabilities and provides that a guardian or attorney in fact can execute the handwritten statement on behalf of the disabled policyholder. Further, the Rule allows for a videotaped reading. Steve Parton, the Florida Office of Insurance Regulation’s General Counsel, explained the proposed amendment and it was approved.
The next four items presented by the Commission were for approval for publication. These items will be set for a Rule hearing by the Office of Insurance Regulation before returning to the Cabinet for final approval.
The first item considered for publication was a proposed amendment to Rule 690-125.003 relating to unfair discrimination because of travel plans. The proposed amendment prohibits discrimination on the sale or pricing of life insurance due to a persons travel plans with certain exceptions. Alex Sink, the Chief Financial Officer (“CFO”), questioned whether this proposed amendment would spark controversy. Mr. Parton opined that concerns may be raised but he did not think the Rule would be protested. The item was approved.
The subsequent item considered for publication was a proposed amendment to Rule 690-162.203 relating to the use of mortality tables that reflect the difference between preferred and standard lives in determining minimum reserve liabilities. The item was approved.
Following that, a proposed amendment to Rule 690-164.030 relating to various product designs was considered for publication. The proposed amendment is based upon the National Association of Insurance Commissioner’s new Model Regulation pertaining to the financial reserves (money that is set aside for expected claims that have not been reported) of insurance companies. The item was approved.
The final item considered for publication was Rule 690-167.015 relating to the uniform home grading scale as prescribed in the “My Safe Florida Home Program.” This Rule is intended to establish a grading scale on the ability of a residential home to withstand winds from severe storms. CFO Sink asked several questions regarding the ratings and their possible impact on property insurance discounts. Florida Commissioner of Agriculture and Consumer Services Charles Bronson expressed his desire to see a grading scale for small businesses. The item was approved.
The next scheduled Cabinet Meeting is June 12, 2007.
Click here to view the entire May 15th Cabinet Meeting Agenda.
Click here to view the Office of Insurance Regulation Agenda for the May 15th Cabinet Meeting.
The above information is intended to be a brief summary of the pertinent insurance activities that took place during the May 15, 2007 Cabinet Meeting and is not intended to be a comprehensive analysis of any particular item. Please do not hesitate to contact this office should you have any questions or require additional information