Bill Text: FL H0939 | 2010 | Regular Session | Introduced

---

Bill Title: Insurance Rate Filings

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Insurance, Business, & Financial Affairs Policy (GGPC) [H0939 Detail]

Download: Florida-2010-H0939-Introduced.html

---

HB 939

1	A bill to be entitled
2	An act relating to insurance rate filings; amending s.
3	627.062, F.S.; deleting authorization and procedures for
4	use and file rate filings; revising requirements for
5	making rate filings for certain classes of insurance;
6	amending s. 627.311, F.S.; deleting authorization and
7	procedures for use and file rate filings; revising
8	requirements for filing rate plans by joint underwriters
9	and joint reinsurers; providing an effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1. Paragraphs (a) and (h) of subsection (2) of
14	section 627.062, Florida Statutes, are amended to read:
15	627.062 Rate standards.-
16	(2) As to all such classes of insurance:
17	(a) Insurers or rating organizations shall establish and
18	use rates, rating schedules, or rating manuals to allow the
19	insurer a reasonable rate of return on such classes of insurance
20	written in this state. A copy of rates, rating schedules, rating
21	manuals, premium credits or discount schedules, and surcharge
22	schedules, and changes thereto, shall be filed with the office.
23	under one of the following procedures except as provided in
24	subparagraph 3.:
25	1. All filings must be If the filing is made at least 90
26	days before the proposed effective date and the filing may is
27	not be implemented during the office's review of the filing and
28	any proceeding and judicial review, then such filing shall be
29	considered a "file and use" filing. In such case, The office
30	shall finalize its review by issuance of a notice of intent to
31	approve or a notice of intent to disapprove within 90 days after
32	receipt of the filing. The notice of intent to approve and the
33	notice of intent to disapprove constitute agency action for
34	purposes of the Administrative Procedure Act. Requests for
35	supporting information, requests for mathematical or mechanical
36	corrections, or notification to the insurer by the office of its
37	preliminary findings shall not toll the 90-day period during any
38	such proceedings and subsequent judicial review. The rate shall
39	be deemed approved if the office does not issue a notice of
40	intent to approve or a notice of intent to disapprove within 90
41	days after receipt of the filing.
42	2. If the filing is not made in accordance with the
43	provisions of subparagraph 1., such filing shall be made as soon
44	as practicable, but no later than 30 days after the effective
45	date, and shall be considered a "use and file" filing. An
46	insurer making a "use and file" filing is potentially subject to
47	an order by the office to return to policyholders portions of
48	rates found to be excessive, as provided in paragraph (h).
49	3. For all property insurance filings made or submitted
50	after January 25, 2007, but before December 31, 2010, an insurer
51	seeking a rate that is greater than the rate most recently
52	approved by the office shall make a "file and use" filing. For
53	purposes of this subparagraph, motor vehicle collision and
54	comprehensive coverages are not considered to be property
55	coverages.
56	(h) If In the event the office finds that a rate or rate
57	change is excessive, inadequate, or unfairly discriminatory, the
58	office shall issue an order of disapproval specifying that a new
59	rate or rate schedule that which responds to the findings of the
60	office be filed by the insurer. The office shall further order,
61	for any "use and file" filing made in accordance with
62	subparagraph (a)2., that premiums charged each policyholder
63	constituting the portion of the rate above that which was
64	actuarially justified be returned to such policyholder in the
65	form of a credit or refund. If the office finds that an
66	insurer's rate or rate change is inadequate, the new rate or
67	rate schedule filed with the office in response to such a
68	finding shall be applicable only to new or renewal business of
69	the insurer written on or after the effective date of the
70	responsive filing.
71
72	The provisions of this subsection shall not apply to workers'
73	compensation and employer's liability insurance and to motor
74	vehicle insurance.
75	Section 2. Paragraph (e) of subsection (5) of section
76	627.311, Florida Statutes, is amended to read:
77	627.311 Joint underwriters and joint reinsurers; public
78	records and public meetings exemptions.-
79	(5)
80	(e) For rates and rating plans effective on or after
81	January 1, 2008, the plan shall establish and use its rates and
82	rating plans, and the plan may establish and use changes in
83	rating plans at any time, but no more frequently than two times
84	per any rating class for any calendar year. By December 1 of
85	each year thereafter, except as provided in subparagraph (c)22.,
86	the board shall establish and use actuarially sound rates for
87	use by the plan to assure that the plan is self-funding while
88	those rates are in effect. Such rates and rating plans must be
89	filed with the office at least 60 within 30 calendar days before
90	after their effective dates, and shall be considered a "use and
91	file" filing. Any disapproval by the office must have an
92	effective date that is at least 60 days from the date of
93	disapproval of the rates and rating plan and must have
94	prospective effect only. The plan shall be subject to any order
95	by the office to return to policyholders any portion of the
96	rates disapproved by the office. The office may not disapprove
97	any rates or rating plans unless it demonstrates that such rates
98	and rating plans are excessive, inadequate, or unfairly
99	discriminatory.
100	Section 3. This act shall take effect January 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.