CODING: Words stricken are deletions; words underlined are additions.House Bill 1183
Florida House of Representatives - 1997 HB 1183
By Representative Brown
1 A bill to be entitled
2 An act relating to insurance; amending s.
3 626.321, F.S.; authorizing persons who hold a
4 limited license for credit insurance to hold
5 certain additional licenses; amending s.
6 627.6785, F.S.; requiring the Department of
7 Insurance to adopt prima facie rates; providing
8 a presumption as to such rates; providing
9 criteria; amending s. 627.682, F.S.; revising
10 requirements for credit life and disability
11 insurance; authorizing the Department of
12 Insurance to disapprove certain forms under
13 certain circumstances; providing criteria;
14 providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Paragraph (f) of subsection (1) of section
19 626.321, Florida Statutes, is amended to read:
20 626.321 Limited licenses.--
21 (1) The department shall issue to a qualified
22 individual, or a qualified individual or entity under
23 paragraphs (d) and (e), a license as agent authorized to
24 transact a limited class of business in any of the following
25 categories:
26 (f) Credit insurance.--License covering only credit
27 insurance, as such insurance is defined in s. 624.605(1)(i),
28 and no individual so licensed shall, during the same period,
29 hold a license as an agent or solicitor as to any other or
30 additional kind of life or health insurance with the exception
31
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1183
521-148-97
1 of credit life or disability insurance as defined in paragraph
2 (e).
3 Section 2. Subsection (4) is added to section
4 627.6785, Florida Statutes, to read:
5 627.6785 Filing of rates with department.--
6 (4) The department shall, after notice and hearing,
7 adopt prima facie rates on an industry-wide or type-of-product
8 basis. Such rates shall be presumed to be just, reasonable,
9 adequate, and not excessive. The department shall adopt a
10 reasonable deviation procedure for acceptable rates above or
11 below the prima facie rates on a type-of-product basis. In
12 determining prima facie rates and in determining deviations
13 from prima facie rates and to assure that said rates are
14 reasonable in relation to benefits, and not excessive or
15 inadequate, the department shall evaluate and consider all of
16 the following factors that go into ratemaking. Combined
17 industry experience for the state for the previous 3 calendar
18 years shall be used. Prima facie rates are to be recomputed
19 in a similar fashion every 3 years. The factors are:
20 (a) Actual and expected claim costs.
21 (b) Establishment of contingency or claim fluctuation
22 reserves.
23 (c) The type of product.
24 (d) Acquisition costs to be incurred by the insurer,
25 including reasonable compensation payable to the creditor or
26 agent.
27 (e) Reasonable insurer overhead and administrative
28 expenses.
29 (f) Reasonable insurer margins for profit,
30 contingencies, and capital requirements.
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1183
521-148-97
1 (g) Insurer taxes, assessments, and regulatory
2 expenses.
3 Section 3. Section 627.682, Florida Statutes, is
4 amended to read:
5 627.682 Filing, approval of forms.--All forms of
6 policies, certificates of insurance, statements of insurance,
7 applications for insurance, binders, endorsements, and riders
8 of credit life or disability insurance delivered or issued for
9 delivery in this state shall be filed with and approved by the
10 department before use as provided in ss. 627.410 and 627.411.
11 The department shall, within 45 days after the filing of any
12 such policies, certificates of insurance, notices of proposed
13 insurance, applications for insurance, endorsements, or
14 riders, disapprove any such form and may withdraw approval of
15 any previously approved form if the benefits provided are not
16 reasonable in relation to the premium charged or if such
17 premium charge is excessive or inadequate, or if the form
18 contains provisions which are unjust, unfair, inequitable,
19 misleading, deceptive, or encourage misrepresentation of the
20 coverage, or are contrary to any provision of the Insurance
21 Code or of any rule promulgated thereunder. In addition to
22 grounds as specified in s. 627.411, the department, upon
23 compliance with the procedures set forth in s. 627.410, shall
24 disapprove any such form and may withdraw any previous
25 approval thereof if the benefits provided therein are not
26 reasonable in relation to the premiums charged, or if it
27 contains provisions which are unjust, unfair, inequitable,
28 misleading, or deceptive or which encourage misrepresentation
29 of such policy.
30 Section 4. This act shall take effect October 1, 1997.
31
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1997 HB 1183
521-148-97
1 *****************************************
2 HOUSE SUMMARY
3
Authorizes persons who hold a limited license for credit
4 insurance to hold additional licenses other than life or
health. Requires the Department of Insurance to adopt
5 prima facie rates on an industry-wide basis or
type-of-product basis. Provides for deviations from such
6 rates. Revises requirements for credit life and
disability insurance. Authorizes the Department of
7 Insurance to disapprove filing forms under specified
circumstances. See bill for details.
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
4