OIR Rule Hearing Report: Unfair Discrimination in Private Passenger Motor Vehicle Insurance Rates–Based on History of Accidents
Nov 18, 2008
On Tuesday, November 18, 2008, the Florida Office of Insurance Regulation (“OIR”) held a public Rule Development Workshop on Proposed Rule 690-175.008 entitled “Unfair Discrimination in Private Passenger Motor Vehicle Insurance Rates – Based on History of Accidents.” To view the meeting notice, click here. A Workshop Draft of the proposed Rule is attached for your review.
The purpose of the proposed Rule is to clarify that imposing additional premium on an existing or new insured based upon non-fault accidents is a violation of Section 626.9541(1)(o)3.a., F.S.
Florida Office of Insurance Regulation representatives who presided over the Workshop included Michael Mines, Deputy Director, Property and Casualty Product Review; General Counsel Steve Parton; Assistant General Counsel Steve Fredrickson; and Actuary Howard Eaglefeld. Mr. Fredrickson briefly explained the Proposed Rule and opened up the meeting for public comment.
Mr. Parton noted that the intent of the proposed Rule is to clarify the statute’s directive that insurance premium may not be increased as a result of an insured’s no-fault accident(s). He also stated that construction of the proposed Rule originated from the OIR’s interpretation and not as a result of specific consumer complaints.
Concerns were raised about the timing of the Rule’s implementation and the compliance time period provided to insurers. Mr. Parton stated that those concerns would be considered as the proposed Rule moves forward to final adoption.
Discussion also took place on the distinction between an applicant and an insured as applicable under this Rule. Mr. Parton maintained the position that the Rule would apply to an applicant who becomes an insured once premium payments are accepted by an insurer. He further stated that insurance companies should be aware of whom they insure.
A question also arose about the OIR’s interpretation of the phrase “substantially at fault.” The OIR officials noted that there is no clearly defined standard test to apply to this phrase, and that the word “substantial” does not necessarily mean 50 percent or more at-fault.
The record will remain open for 10 additional calendar days. Please forward any comments or questions you may have to Katie Webb at kwebb@cftlaw.com.
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