Florida Cabinet Meeting: March 25

On Tuesday, March 25, 2008, the Florida Cabinet met in Tallahassee, Florida to discuss several insurance-related matters. Below is a brief recap of the pertinent items and related action taken by the Cabinet. To view a copy of the complete Cabinet agenda, click here.

Florida Chief Financial Officer (“CFO”) Alex Sink recognized April, 2008 as Financial Literacy Month, the purpose of which is to promote the need for continued oversight and awareness of financial matters in order to prevent occurrences such as selling annuities in a manner that exploits the elderly.

Kevin McCarty, Florida’s Insurance Commissioner, reviewed the Florida Office of Insurance Regulation’s (“OIR”) legislative priorities for the 2008 Session and presented his agenda to the Cabinet, a copy of which can be viewed by clicking here.

These agenda items include:

• Approved–Minutes of the Financial Services Commission January 15, 2008 meeting

• Approved for Final Adoption–Request to adopt proposed Rule 69O-204.101: Disclosure to Viator of Disbursement

• Approved for Final Adoption–Request to adopt proposed Rules 69O-143.041, .042: Insurer Conduct

• Approved for Publication–Amendments to Rules 69O-149.003, .005, .007: Health Rate Filing Standards

• Approved for Publication–Amendments to Rules 69O-157.004, .104, .114, .117: Long-Term Care, designed to protect seniors from high rates

• Approved for Publication–Amendments to Rule 69O-203.070: Annual and Quarterly Reports

• Approved for Publication–Amendments to Rules 69O-149.0025, .005, .006: Health Rate Filing Standards

• Discussion of OIR Legislative Priorities for the 2008 Session as follows:

1. Increased fines are needed as indicated during the Allstate Hearings earlier this year
2. Cover Florida with better health care access and affordability. The OIR is working with Governor Crist, who advocates this issue
3. Suitability of selling methods regarding annuities. The OIR is working with the CFO on a plan for full disclosure of complex issues
4. Establishing underwriting criteria that would include the removal of credit scoring as a criteria for setting rates that are discriminatory
5. Modernize Florida’s title insurance industry to inject competition into the market

The only question on the OIR’s Legislative priorities came from Attorney General Bill McCollum regarding the regulation of the reinsurance industry, 85 percent of which is comprised of foreign providers. Commissioner McCarty indicated that the OIR is not seeking to establish more regulation.

On the State Board of Administration (“SBA”) agenda, General Bob Milligan, SBA Interim Executive Director, presented several items for approval, which can be viewed by clicking here. These items include:

• Minutes of the March 11, 2008 meeting were approved
• The SBA Quarterly Report required by the Protecting Florida’s Investments Act was approved
• Approval of the appointment of Bennett “Ben” Nelson II as meteorology representative on the Advisory Council of the Florida Hurricane Catastrophe Fund was withdrawn
• The Executive Director’s Update included a status report on the Local Government Investment Pool (“LGIP”). The LGIP is working with House staff to draft related legislation
• Audit Advisory Council Chair Kim Ferrell gave the Audit Committee report, which will be finalized by April 15, 2008

The Governor stressed that the outside contractors hired to assist the SBA/LGIP must pursue their tasks aggressively in order to determine the rationale of certain sales and transactions by the SBA. The CFO and Attorney General concurred with the Governor’s comments.

The next Cabinet meeting is scheduled for April 15, 2008.

Should you have any questions regarding the above matters, please feel free to contact this office.

 

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