Notice of Premium Discounts for Hurricane Loss Mitigation

Section 627.711, Florida Statutes, requires insurers to clearly notify the applicant or policyholder of any personal lines residential property insurance policy of the availability and the range of each premium discount, credit, other rate differential, or reduction in deductibles, and combinations of discounts, credits, rate differentials, or reductions in deductibles, for properties on which fixtures or construction techniques demonstrated to reduce the amount of loss in a windstorm can be or have been installed or implemented. 

To implement this requirement, the Florida Office of Insurance Regulation (“OIR”) adopted form OIR-B1-1655 entitled “Notice of Premium Discounts for Hurricane Loss Mitigation.” 

A copy of this form is attached. 

Based upon informal discussions with OIR, it has come to our attention that OIR believes some insurers are not properly completing the form before providing it to insureds at the time of the issuance of the policy and at each renewal. 

It is our understanding that OIR intends to enforce compliance with the applicable statute and rule and they may institute enforcement action against those insurers that do not properly complete this form. 

Accordingly, careful attention should be taken to assure compliance with the applicable standards, including the obligation to provide ranges of discounts, credits and other premium differentials available.

 

If you have any questions or would like additional information, please contact our office.

 

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