Florida Senate - 2013                                     SB 468
       
       
       
       By Senator Hukill
       
       
       
       
       8-00282C-13                                            2013468__
    1                        A bill to be entitled                      
    2         An act relating to commercial insurance rates and
    3         forms; amending s. 627.062, F.S.; exempting medical
    4         malpractice insurance that covers certain providers
    5         and practitioners from specified rate filing
    6         requirements; amending s. 627.410, F.S.; conforming
    7         provisions to changes made by the act; creating s.
    8         627.4102, F.S.; providing for an informational filing
    9         of certain forms that are exempt from the Office of
   10         Insurance Regulation’s approval process; requiring an
   11         informational filing to include a notarized
   12         certification from the insurer and providing a
   13         statement that must be included in the certification;
   14         authorizing the office to impose sanctions for false
   15         certifications; requiring a Notice of Change in Policy
   16         Terms form to be filed with a changed renewal policy;
   17         providing an effective date.
   18  
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Paragraph (d) of subsection (3) and paragraph
   22  (e) of subsection (7) of section 627.062, Florida Statutes, are
   23  amended to read:
   24         627.062 Rate standards.—
   25         (3)
   26         (d)1. The following categories or kinds of insurance and
   27  types of commercial lines risks are not subject to paragraph
   28  (2)(a) or paragraph (2)(f):
   29         a. Excess or umbrella.
   30         b. Surety and fidelity.
   31         c. Boiler and machinery and leakage and fire extinguishing
   32  equipment.
   33         d. Errors and omissions.
   34         e. Directors and officers, employment practices, fiduciary
   35  liability, and management liability.
   36         f. Intellectual property and patent infringement liability.
   37         g. Advertising injury and Internet liability insurance.
   38         h. Property risks rated under a highly protected risks
   39  rating plan.
   40         i. General liability.
   41         j. Nonresidential property, except for collateral
   42  protection insurance as defined in s. 624.6085.
   43         k. Nonresidential multiperil.
   44         l. Excess property.
   45         m. Burglary and theft.
   46         n. Medical malpractice for a facility that is not a
   47  hospital, nursing home, or assisted living facility.
   48         o. Medical malpractice for a health care practitioner that
   49  is not a dentist, physician, or surgeon.
   50         p.n. Any other commercial lines categories or kinds of
   51  insurance or types of commercial lines risks that the office
   52  determines should not be subject to paragraph (2)(a) or
   53  paragraph (2)(f) because of the existence of a competitive
   54  market for such insurance, similarity of such insurance to other
   55  categories or kinds of insurance not subject to paragraph (2)(a)
   56  or paragraph (2)(f), or to improve the general operational
   57  efficiency of the office.
   58         2. Insurers or rating organizations shall establish and use
   59  rates, rating schedules, or rating manuals to allow the insurer
   60  a reasonable rate of return on insurance and risks described in
   61  subparagraph 1. which are written in this state.
   62         3. An insurer shall must notify the office of any changes
   63  to rates for insurance and risks described in subparagraph 1.
   64  within 30 days after the effective date of the change. The
   65  notice must include the name of the insurer, the type or kind of
   66  insurance subject to rate change, total premium written during
   67  the immediately preceding year by the insurer for the type or
   68  kind of insurance subject to the rate change, and the average
   69  statewide percentage change in rates. Underwriting files,
   70  premiums, losses, and expense statistics with regard to such
   71  insurance and risks written by an insurer must be maintained by
   72  the insurer and subject to examination by the office. Upon
   73  examination, the office, in accordance with generally accepted
   74  and reasonable actuarial techniques, shall consider the rate
   75  factors in paragraphs (2)(b), (c), and (d) and the standards in
   76  paragraph (2)(e) to determine if the rate is excessive,
   77  inadequate, or unfairly discriminatory.
   78         4. A rating organization shall must notify the office of
   79  any changes to loss cost for insurance and risks described in
   80  subparagraph 1. within 30 days after the effective date of the
   81  change. The notice must include the name of the rating
   82  organization, the type or kind of insurance subject to a loss
   83  cost change, loss costs during the immediately preceding year
   84  for the type or kind of insurance subject to the loss cost
   85  change, and the average statewide percentage change in loss
   86  cost. Actuarial data with regard to changes to loss cost for
   87  risks not subject to paragraph (2)(a) or paragraph (2)(f) must
   88  be maintained by the rating organization for 2 years after the
   89  effective date of the change and are subject to examination by
   90  the office. The office may require the rating organization to
   91  incur the costs associated with an examination. Upon
   92  examination, the office, in accordance with generally accepted
   93  and reasonable actuarial techniques, shall consider the rate
   94  factors in paragraphs (2)(b)-(d) and the standards in paragraph
   95  (2)(e) to determine if the rate is excessive, inadequate, or
   96  unfairly discriminatory.
   97         (7) The provisions of this subsection apply only to rates
   98  for medical malpractice insurance and control to the extent of
   99  any conflict with other provisions of this section.
  100         (e) For medical malpractice rates subject to paragraph
  101  (2)(e), the each medical malpractice insurer shall must make a
  102  rate filing under this section, sworn to by at least two
  103  executive officers of the insurer, at least once each calendar
  104  year.
  105         Section 2. Subsection (1) of section 627.410, Florida
  106  Statutes, is amended to read:
  107         627.410 Filing, approval of forms.—
  108         (1) A No basic insurance policy or annuity contract form,
  109  or application form where written application is required and is
  110  to be made a part of the policy or contract, or group
  111  certificates issued under a master contract delivered in this
  112  state, or printed rider or endorsement form or form of renewal
  113  certificate, may not shall be delivered or issued for delivery
  114  in this state, unless the form has been filed with the office by
  115  or on in behalf of the insurer that which proposes to use such
  116  form and has been approved by the office, or filed pursuant to
  117  s. 627.4102. This provision does not apply to surety bonds or to
  118  policies, riders, endorsements, or forms of unique character
  119  which are designed for and used with relation to insurance on
  120  upon a particular subject, (other than as to health insurance),
  121  or which relate to the manner of distributing distribution of
  122  benefits or to the reservation of rights and benefits under life
  123  or health insurance policies and are used at the request of the
  124  individual policyholder, contract holder, or certificateholder.
  125  For As to group insurance policies effectuated and delivered
  126  outside this state but covering persons resident in this state,
  127  the group certificates to be delivered or issued for delivery in
  128  this state shall be filed with the office for information
  129  purposes only.
  130         Section 3. Section 627.4102, Florida Statutes, is created
  131  to read:
  132         627.4102Informational filing of forms.-
  133         (1) Property and casualty forms, except workers’
  134  compensation forms, are exempt from the approval process
  135  required under s. 627.410, if:
  136         (a) The form has been electronically submitted to the
  137  office in an informational filing made through I-File, 30 days
  138  before the delivery or issuance for delivery of the form within
  139  this state; and
  140         (b) At the time the informational filing is made, a
  141  notarized certification is attached to the filing which
  142  certifies that each form within the filing is in compliance with
  143  all applicable state laws and rules. The certification must be
  144  on the insurer’s letterhead and signed and dated by the
  145  insurer’s president, chief executive officer, or general
  146  counsel, or an employee of the insurer responsible for the
  147  filing on behalf of the insurer. The certification must
  148  expressly acknowledge that if the representations contained in
  149  the certification are found to be false, the insurer is subject
  150  to appropriate regulatory action. The certification must contain
  151  substantively the following statement: “I ...[name]..., as
  152  ...[title]... of ...[insurer name]..., do hereby certify that
  153  this form filing has been thoroughly and diligently reviewed by
  154  me and by all appropriate company personnel, as well as company
  155  consultants, if applicable, and certify that each form contained
  156  within the filing is in compliance with all applicable Florida
  157  laws and rules. Should this certification later be deemed false,
  158  I acknowledge that ...[insurer name]... is subject to all
  159  appropriate regulatory action by the Office of Insurance
  160  Regulation.”
  161         (2) If the filing contains a certification that does not
  162  meet the requirements of this section, the form filing, at the
  163  discretion of the office, shall be subject to prior review and
  164  approval pursuant to s. 627.410, and the period for review and
  165  approval established under s. 627.410(2) begins to run on the
  166  date the office notifies the insurer of the discovery of the
  167  inadequate certification. The office may pursue regulatory
  168  action against an insurer that submits a false certification.
  169         (3) A Notice of Change in Policy Terms form required under
  170  s. 627.43141(2) shall be filed as a part of the informational
  171  filing for a renewal policy that contains a change. If a renewal
  172  policy that was certified requires such form, the insurer must
  173  provide a copy of the form to the named insured’s agent before
  174  or upon providing the form to the named insured.
  175         (4) This section does not preclude an insurer from electing
  176  to file any form for approval under s. 627.410 which would
  177  otherwise be exempt under this section.
  178         Section 4. This act shall take effect upon becoming a law.