OIR Rule Hearing on Public Hurricane Model Fee Schedule Report: September 23
Sep 23, 2008
On Tuesday, September 23, 2008, the Florida Office of Insurance Regulation (“OIR”) held a public hearing in Tallahassee regarding proposed Rule 69O-170.0144: Public Hurricane Loss Projection Model (“Public Model”) – Fee Schedule.
The proposed Rule would implement 2008 legislation providing for the establishment of a fee schedule for use of the Public Model by residential property insurers.
OIR Assistant General Counsel Steve Fredrickson presided over the hearing. Dr. Shahid Hamid, a Professor from Florida International University (“FIU”), participated via telephone.
The hearing was brief and included questions from interested parties about the Public Model and responses from Dr. Hamid.
Dr. Hamid stated that FIU is working on a secure Web site from which insurance companies should be able to download model runs by November. The model run download will be available in Excel spreadsheet format, and will include variables such as average annual loss by county, construction type, and zip code, among others. An option to address demand surge will be provided as well. The model run variables will not include a field for Probable Maximum Loss.
It was noted that the fee structure listed in the proposed Rule is based on one run of the Public Model. Additional fees will apply for multiple runs.
Dr. Hamid noted that exposure data provided by insurance companies while downloading model runs will be kept confidential.
The record on this proposed Rule is now closed and a hearing will be scheduled for final Rule adoption by the Florida Financial Services Commission unless substantive changes are made to the Rule.
Should you have any questions or comments, please feel free to contact Colodny Fass.
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