Florida Office of Insurance Regulation Begins Insurance Holding Company Supervision Rule Development

Rulemaking relating to insurance holding companies and acquisitions of entities regulated by the Florida Insurance Code has been initiated by the Florida Office of Insurance Regulation (“OIR”).

The following proposed Rules will be addressed:  

• 69O-143.046 Registration of Insurers
• 69O-143.047 Standards
• 69O-143.056 Acquisition of Controlling Stock 

Although preliminary drafts of the proposed Rules are not yet available, a Rule Development Workshop on them has been scheduled for August 12, 2015 at 9:30 a.m.  

To view the notice, click here.

The purpose of the Rule Development is to implement recent statutory requirements, update and clarify the Rules, and adopt and incorporate forms by reference used in connection with insurance holding companies, acquisitions and transactions between affiliates. 

Florida legislation relating to the supervision of insurance holding companies and the modernization of insurer solvency regulation was enacted 2014.  Specifically, Florida’s new law provides for enterprise risk reporting at the insurance holding company level, enhanced regulator access to data and information from non-insurance operations, clear authority to participate in supervisory colleges, and enhanced information sharing among regulators.

Florida’s existing Rules relating to insurance holding companies have been based on an outdated version of the National Association of Insurance Commissioners’ (“NAIC”) model Rule for some time.  Florida’s new laws require them to be consistent with the 2010 version of the NAIC model.

Colodny Fass will continue to follow the OIR’s development of these proposed Rules and provide a copy of their preliminary draft texts once they are available.

Should you have any questions or comments, please contact Colodny Fass.

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