OIR Public Hearing Recap on Standardized Requirements Applicable to Insurers After Hurricanes or Natural Disasters

On April 17, 2007, the Office of Insurance Regulation (“OIR”) held a second public hearing on proposed Rule 690-142.015 relating to “Standardized Requirements Applicable to Insurers After Hurricanes or Natural Disasters.”

The Rule adopts standardized provisions regarding claims reporting as required by Form OIR-DO-1681, “Catastrophic Event Data Reporting and Analysis (Hurricane).” There are also standardized reporting provisions for grace periods and the temporary postponement of cancellations or nonrenewals.

Steve Fredrickson, Deputy General Counsel for the OIR, provided opening remarks regarding the Proposed Rule, which was initially published on September 29, 2006.  However, since it was amended after its initial hearing to conform to new requirements from HB 1A, which passed during the January 2007 Special Session, a second hearing was held.

The OIR reviewed the reporting requirements, including significant changes from the initial Proposed Rule.  Of note, reporting must be done on an individual company basis and consolidated reports will not be accepted.  Further, claims and payments must be reported by each county of occurrence.  However, a data entry field is included on the filing form to list multiple county filings for commercial property.

Next, presentations by affected parties were considered.  Speakers included representatives from State Farm, AllState, surplus lines insurers and others.  These industry representatives expressed concern for their ability to meet the detailed reporting requirements in a timely manner, especially during major storms.  The OIR listened to the concerns, but was reluctant to amend the Rule other than with technical changes.

A hearing on the Proposed Rule is scheduled at the Financial Services Commission during a Cabinet Meeting on May 1, 2007.

We have attached below a hyperlink to the Proposed Rule and the OIR’s Catastrophic Event Data Reporting and Analysis for your review.

OIR Catastrophic Event Data Reporting and Analysis http://www.cftnews.com/uploads/542_CatEventReporting.pdf

OIR Proposed Rule 690-142.015 http://www.cftnews.com/uploads/542_OIR%20Rule%20690-142.015.pdf

 

Our representatives will attend the May 1 hearing and provide updates as they become available.  Meanwhile, please feel free to contact this office with any comments or questions regarding this matter.