FPCA Automobile Division: Rule Prohibiting Additional Premium for Auto Accidents Not Adopted At May 13 Cabinet Meeting
May 18, 2009
The Florida Cabinet met on Wednesday, May 13, 2009, and considered a request for approval from the Florida Office of Insurance Regulation (“OIR”) to adopt a proposed automobile insurance-related Rule.
The proposed Rule would provide that an insurer may not impose additional premium on a motor vehicle policy because the insured was in a collision, unless the insurer determines the insured was substantially at fault in the collision. The Rule would also clarify that the applicable statute applies to both existing and new insureds.
Florida Governor Charlie Crist made an initial motion to approve proposed Rule 69O-175.008: Not at Fault Accidents. The three Cabinet members, Attorney General Bill McCollum, Chief Financial Officer Alex Sink, and Agriculture Commissioner Charles Bronson, declined to second the motion, and the proposed Rule was not adopted.
Insurance representatives testified in opposition to the Rule, noting it would negatively impact policyholders who have accident-free driving records, decrease competition, and lead to an increase in policies in the Florida Automobile Joint Underwriting Association.
Cabinet members expressed concern that drivers with proven, “clean” records could be negatively impacted by the proposed Rule.
The Cabinet adopted another OIR agenda item, proposed Rule 69O-138.005: Exams by Non-Employees, with no objection.
To view the OIR agenda, click here. To view a summary of the Cabinet meeting, click here.