Insurance-Related Meetings: Week of July 7-11 and Beyond

Jul 8, 2008

 

Insurance-Related Meetings:  Week of July 7-11

 

Tuesday, July 8

The National Association of Insurance Commissioners will hold an Executive Committee/Plenary meeting on Tuesday, July 8, 2008 at 3:00 p.m. (EST)/2:00 p.m. (CST) via teleconference.  Items scheduled to be discussed include:

  • Regulation and Consumer Affairs (D) Committee proposal for centralized data collection
  • Consideration of the Medical Professional Liability Closed Claim Reporting Law for adoption
  • This teleconference is open to the public.  Interested parties must pre-register register to attend the teleconference and have an IP code to join the call.  

     

    Wednesday, July 9

    The Florida Department of Financial Services, Office of Insurance Regulation has issued a Notice of Proposed Rule Hearing regarding the following Rule:

  • 69O-164.040: Determining Reserve Liabilities for Pre-Need Life Insurance
  • The purpose of this Rule is to recognize the inadequacy of the 2001 Commissioners Standard Ordinary Life Valuation Mortality Table for use in determining the minimum standard of valuation and the minimum standard non-forfeiture value.  It also is to require the continued use of the 1980 Commissioners Standard Ordinary Life Valuation Mortality Table in determining the minimum standard of valuation and the minimum standard non-forfeiture value.  This Rule applies to pre-need life insurance policies and certificates as defined in Section Four (4) of this Rule, and similar policies and certificates

    Date:  Wednesday, July 9, 2008
    Time:  9:30 a.m.
    Place:  142 Larson Building, 200 East Gaines Street, Tallahassee, Florida

     

    Thursday, July 10–Sunday, July 13

    The National Conference of Insurance Legislators (“NCOIL”) will hold its Summer Meeting from July 10-13, 2008 in New York City. 

    The following NCOIL Committees are scheduled to meet:

  • Subcommittee on Natural Disaster Insurance Legislation
  • Financial Services and Investment Products Committee
  • Workers’ Compensation Insurance Committee
  • Life Insurance and Financial Planning Committee
  • Insurance Legislators Foundation Board
  • Industry Education Counsel Board
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    To view the tentative meeting schedule, click here.

     

    LOOKING AHEAD

    FHCF Proposed Rule Development

    The Florida State Board of Administration, on behalf of the Florida Hurricane Catastrophe Fund (“FHCF”) has issued a Notice of Proposed Rule for Rule 19-8.010: Reimbursement Contract.  To view the complete Notice of Proposed Rule Development, click here.  The FHCF is seeking to implement changes made to Section 215.555, Florida Statutes, during the 2008 Florida Legislative session by adding a fourth addendum to the FHCF Reimubursement Contract that would extend the $10 million FHCF optional coverage.

     

    Tuesday, July 15

    The Florida Department of Financial Services, Office of Insurance Regulation has issued a Notice of Proposed Rule regarding the following Rule:

  • 69O-203.210 Forms Incorporated By Reference
  • The purpose of the proposed Rule amendments is to adopt the form for the Annual Report of the Discount Medical Plan Organization (“DMPO”) that includes the DMPO Annual Report Instructions. Pursuant to Florida law, each DMPO must file an annual report with the Office of Insurance Regulation, within three months after the end of each fiscal year.  Such reports must be on forms prescribed by the Florida Financial Services Commission.

    Date:  July 15, 2008
    Time: 9:30 a.m.
    Place: 142 Larson Building, 200 East Gaines Street, Tallahassee, Florida

     

    Wednesday, July 16

    The Florida Department of Financial Services (“DFS”), Division of Consumer Services has issued a Notice of Proposed Rule regarding the following Rule:

  • 69J-7.006: Grants Directly from the Department to Homeowners
  • This Rule establishes procedures for application and award of grants to non-low income grant applicants in the My Safe Florida Home (“MSFH”) program; sets forth DFS interpretation of certain grant eligibility criteria that are specified only in general by Section 215.5586 F.S.; and sets forth the DFS interpretation as to the intended effect of changes made by the 2007 Legislature to the statute concerning homeowners previously issued grants or previously advised by DFS that they were eligible for a grant.  Both low income and non-low income persons may receive grants, but low-income applicants are subject to different requirements. This Rule applies only to non low-income applicants.

    Date: Wednesday, July 16, 2008
    Time:  9:30 a.m.
    Place: 142 Larson Building, 200 East Gaines Street, Tallahassee, Florida

     

    Wednesday, July 23

    The Florida Department of Financial Services, Division of Consumer Services has issued a Notice of Proposed Rule Hearing regarding the following Rule:

  • 69J-123.002: Procedures
  • The purpose of this proposed Rule is to adopt a new electronic form Form DFS-IO-363, “Civil Remedy Notice of Insurer Violation” for filing a Notice of Intent to file a civil remedy action as provided in Section 642.155, F.S.

    Date:  Wednesday, July 23, 2008
    Time:  9:30 a.m.
    Place:  142 Larson Building, 200 East Gaines Street, Tallahassee, Florida

     

    The Florida Department of Financial Services, Office of Insurance Regulation has issued a Notice of Proposed Rule regarding the following Rule:

  • 69O-149.041: Marketing Communication Material and Marketing Guidelines
  • This Rule creates an unfair trade practice pursuant to Florida law by prohibiting an insurer from treating certain sized small groups differently than it treats other sized small groups. Under the Rule, all small groups must be treated the same, unless specifically provided otherwise.
    The proposed amendments change the current practice of small group carriers using two different underwriting application approaches based on group size. The Rule requires one type of application for all small employer groups, indifferent of group size.

    Date: Wednesday, July 23
    Time: 9:30 a.m.
    Place: 116 Larson Building, 200 East Gaines Street, Tallahassee, Florida

     

    Friday, July 25

    The Florida Department of Financial Services, Office of Insurance Regulation has issued a Notice of Proposed Rule regarding the following Rules:

    69O-149.205: Indemnity Standard Risk Rates
    69O-149.206: Preferred Provider/Exclusive Provider Standard Risk Rates
    69O-149.207: Health Maintenance Organization Standard Risk Rates

    Florida law requires the Office of Insurance Regulation to determine standard risk rates annually, using reasonable actuarial techniques and standards.  Standard risk rates must be determined as follows:
    1. Standard risk rates for individual coverage must be determined separately for indemnity policies, preferred provider/exclusive provider policies, and health maintenance organization contracts.
    2. The office shall survey insurers and health maintenance organizations representing at least an 80 percent market share, based on premiums earned in the state for the most recent calendar year, for each of the categories specified in # 1.
    3. Standard risk rate schedules must be determined, computed as the average rates charged by the carriers surveyed, giving appropriate weight to each carrier’s statewide market share of earned premiums.
    4. The rate schedule shall be determined from analysis of the one county with the largest market share in the state of all such carriers.
    5. The rate for other counties must be determined by using the weighted average of each carrier’s county factor relationship to the county determined in # 4.
    6. The rate schedule must be determined for different age brackets and family size brackets.

    In compliance with this statutory mandate the Office of Insurance Regulation conducted a survey, calculated the rate schedules and, by this Rule amendment, will publish the results.  Standard risk rates are used by the health insurers in setting their conversion rates, because pursuant to Section 627.6675(3)(a), F.S., the maximum a health insurer can charge for a conversion policy is 200 percent of the standard risk rate.

    Date:  July 25, 2008
    Time:  9:30 a.m.
    Place: 116 Larson Building, 200 East Gaines Street, Tallahassee, Florida

     

    Friday, July 25

    CANCELED:  The Florida Workers Compensation Joint Underwriting Association  Investment Committee meeting scheduled for Friday, July 25, 2008 has been canceled.  The next Investment Committee meeting is scheduled to take place Friday, August 29, 2008 at 10:00 a.m. 

     

    Tuesday, July 29

    The Florida Cabinet, acting as the Financial Services Commission (“FSC”) is scheduled to meet on Tuesday, July 29 at 9:00 a.m. in the Capitol.  Among other departmental agendas, the FSC will consider the following items from the Florida Office of Insurance Regulation (“OIR”):

    Publication of Notice of Rule Development

    • Rule 69O-170, Part IV–Proposed repeal of rate filing arbitration:  Section 627.062 F.S. formerly provided that when the OIR disapproved a rate filing for property and casualty insurance, the insurer had the right to require its appeal of the disapproval be handled by arbitration. These Rules were promulgated to set up a procedure whereby that arbitration would take place.  Subsequent to the promulgation of these Rules, Section 627.062 was amended, and now provides that the right to arbitration will no longer apply to these rate filings. Consequently, the OIR is seeking the repeal of this Rule.

    Final Adoption of Rule

    • Rule 69O-167.004–Required Preinsurance Inspection of Private Passenger Motor Vehicles:  Section 627.744, F.S. requires auto insurers that are insuring cars which have not been insured without interruption for the prior two years to perform a preinsurance inspection. The statute authorizes the FSC to adopt a form, by Rule, for the purposes of this Section. This amendment adopts a revision to the existing form to comply with changes in the statute.

     

    • Rule 69O-157.004,.104,.114,.117–Long-Term Care, Out-of-State Group:  Recent legislation mandated that after 24 months, a long-term care policy was incontestable, and also removed the clause which prohibited a long-term care policy from providing for less than 24 consecutive months for nursing home care.

     

    • Rule 69O-203.070–Annual and Quarterly Reports; Forms:  This Rule has been amended to reflect the correct forms to be used by prepaid limited health service organizations in filing their quarterly and annual financial statements. The Rule is being updated to require the filings to be submitted on National Association of Insurance Commissioners Health blanks.

     

    Tuesday, August 12

    A Cabinet meeting has been scheduled for August 12.  Among the Florida Office of Insurance Regulation (“OIR”) items scheduled to be heard by the Florida Financial Services Commission are:

  • Final adoption of the proposed repeal of Rule 69N-121.066: Informal Conferences.  This Rule sets out the process the OIR is to follow after an examination of an insurer is performed and the OIR provides the insurer with a draft of the report of examination.
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  • Final adoption of amendments to Rule 69O-220.001,.051,.201  Adjusters and Rule 69O-220.001 Pre-Qualification and Licensure of Emergency Adjusters 
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    Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

     

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