Florida Office of Insurance Regulation Hears Testimony, Concerns at Uniform Mitigation Verification Inspection Form (OIR-B1-1802) Rule Hearing
Sep 20, 2011
On Tuesday, September 20, 2011, the Florida Office of Insurance Regulation (“OIR”) held a public hearing on Rule 69O-170.0155, F.A.C., specifically in regard to proposed revisions to Form OIR-B1-1802, which is also known as the “Uniform Mitigation Verification Inspection Form” (“Form”). A draft copy of the Form is attached for review.
Mike Milnes, Deputy Director of the OIR’s Property and Casualty Division and OIR Attorney Steve Fredrickson presided over the hearing. Mr. Milnes opened the meeting by asking attendees a series of questions related to photographs and the Applied Research Associates, Inc. proposed changes to the 50 percent Rule on hip roof geography.
Some wind mitigation inspectors in attendance at the meeting expressed safety concerns with getting the required inspection photographs, due to the location of the items that must be documented. Mr. Milnes asked whether changes to the 50 percent Rule (now at 10 percent) would cause homeowners to lose a previous mitigation credit. Interested parties indicated it is possible that the impact would be minimal.
Throughout the hearing, Mr. Milnes requested that interested parties provide the OIR with a “skeleton” manual that could be used in conjunction with the Form to ensure uniformity in inspections. Although he indicated he has made this request in the past, the OIR has not yet received a proposal. Several interested parties indicated they would provide a draft in the coming weeks.
Those on hand to provide public testimony addressed several items on the Form. On Page One, the “NOTE” requires one picture for each attribute in questions 3 through 7. It was suggested that photos should be required for all questions (1 through 7). Mr. Milnes did not indicate whether he would accept this suggestion. There was some debate on whether it was appropriate for insurers to be able to ask additional questions as provided in the NOTE. Some inspectors felt the sentence is open-ended and could place an undue burden on them.
There was significant debate and discussion on Item 7 relating to “Opening Protection.” It was suggested that the Windborne Debris Protection Level Chart be removed, inasmuch as the information it requests is unnecessary because mitigation credits cannot be issued based on the response. There was also testimony that a distinction should be made between hurricane pressure and hurricane impact resistance. Further, it was suggested that items D, E, and F relating to glazed and exterior doors and opening be removed because they are redundant.
Debate ensued on the duration of the Form’s validity. The current Form is valid for “up to” five years. Although the revised Form is valid for five years, it was discussed that it could cause ambiguity. In the rigid five-year duration, any updates to a previously inspected property may not be applicable for five years, since the Form is valid for five years. The “up to” language, while not definitive, provides an argument that a new Form and inspection could be valid prior to five years from the date of the original inspection. Robin Westcott, the Florida Insurance Consumer Advocate, testified in support of flexibility with the five-year provision. Ms. Westcott also noted a provision that the Form is presumed to be correct and valid should be included.
Following the public testimony, Mr. Fredrickson noted that changes to the Form based on comments at the hearing would be published in the Florida Administrative Weekly. He noted the OIR intends to submit the Form and potential revised to the Financial Services Commission for final adoption. However, he did not provide a time period for the submission.
In the meantime, additional written comments may be submitted to Meredith Snowden (msnowden@cftlaw.com) at Colodny Fass.
With no other comments, Mr. Fredrickson concluded the hearing.
Should you have any questions for comments, please feel free to contact Colodny Fass.
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