OIR Rule Hearing Recap: Hurricane-Related Mitigation Forms
May 23, 2007
On Tuesday, May 22, 2007, the Office of Insurance Regulation (OIR) held a Public Hearing on Proposed Rule 690-170.0155 entitled “Forms.”
The Proposed Rule would create Form OIR-B1-1802, “Uniform Mitigation Verification Inspection Form” and amend Form OIR-B1-1655, “Notice of Premium Discounts for Hurricane Loss Mitigation.”
Steve Frederickson was the presiding officer of the Hearing. Also present from OIR was Mike Milnes and Chris Bailey. Other interested parties present included insurance representatives, home inspector representatives and a representative from the My Safe Florida Home Program.
The Uniform Mitigation Verification Inspection Form is intended to provide a means for verifying that a policyholder may qualify for some type of wind mitigation credit on their property insurance. The form provides a checklist of strengthening standards that homeowners may implement to safeguard their homes against high winds. A homeowner is then qualified for lower property insurance premiums based on the expected damage mitigation effect of the installed strengthening standards.
Mitigation recommendations include storm-hardening of roofs, windows and other openings, as well as shutter installation. Several outstanding issues on what constitutes mitigation standards will likely be addressed by the OIR before the Rule is adopted. Those issues include the length of time that an inspection remains valid and which inspectors are authorized to sign the Form.
The Notice of Premium Discounts for Hurricane Loss Mitigation Form will provide homeowners with a notice of wind loss mitigation measures that can help protect their property. This Form is designed for policyholders and intended to be less technical than the Uniform Mitigation Verification Inspection Form.
These Forms may be subject to further changes pending OIR review on Senate Bill 2498 relating to Citizens Property Insurance Corporation. SB 2498 passed during the 2007 Regular Session, but has not yet been signed into law at this time. However, we expect the Governor to sign this bill in the near future.
At the conclusion of the hearing, Mr. Fredrickson announced that the record will remain open until Friday, May 25, 2007 at 5:00 p.m. for further written comments.
The Proposed Rule is scheduled for final approval by the Financial Services Commission at the next Florida Cabinet Meeting on June 12, 2007.
We have attached a copy of the Proposed Rule and the Public Hearing agenda for your review.
Please do not hesitate to contact this office should you have any questions regarding this matter.