Senate Bill sb2618

    Florida Senate - 2005                                  SB 2618

    By Senator Geller





    31-1375A-05

  1                      A bill to be entitled

  2         An act relating to insurance rate filings;

  3         amending s. 627.062, F.S.; requiring a

  4         statement of certification to accompany certain

  5         rate filings; providing statement requirements;

  6         providing for the adoption of rules by the

  7         Office of Insurance Regulation; providing an

  8         effective date.

  9  

10  Be It Enacted by the Legislature of the State of Florida:

11  

12         Section 1.  Paragraph (a) of subsection (2) of section

13  627.062, Florida Statutes, is amended to read:

14         627.062  Rate standards.--

15         (2)  As to all such classes of insurance:

16         (a)  Insurers or rating organizations shall establish

17  and use rates, rating schedules, or rating manuals to allow

18  the insurer a reasonable rate of return on such classes of

19  insurance written in this state.  A copy of rates, rating

20  schedules, rating manuals, premium credits or discount

21  schedules, and surcharge schedules, and changes thereto, shall

22  be filed with the office under one of the following

23  procedures:

24         1.  If the filing is made at least 90 days before the

25  proposed effective date and the filing is not implemented

26  during the office's review of the filing and any proceeding

27  and judicial review, then such filing shall be considered a

28  "file and use" filing.  In such case, the office shall

29  finalize its review by issuance of a notice of intent to

30  approve or a notice of intent to disapprove within 90 days

31  after receipt of the filing. The notice of intent to approve

                                  1

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






    Florida Senate - 2005                                  SB 2618
    31-1375A-05




 1  and the notice of intent to disapprove constitute agency

 2  action for purposes of the Administrative Procedure Act.

 3  Requests for supporting information, requests for mathematical

 4  or mechanical corrections, or notification to the insurer by

 5  the office of its preliminary findings shall not toll the

 6  90-day period during any such proceedings and subsequent

 7  judicial review. The rate shall be deemed approved if the

 8  office does not issue a notice of intent to approve or a

 9  notice of intent to disapprove within 90 days after receipt of

10  the filing.

11         2.  If the filing is not made in accordance with the

12  provisions of subparagraph 1., such filing shall be made as

13  soon as practicable, but no later than 30 days after the

14  effective date, and shall be considered a "use and file"

15  filing.  An insurer making a "use and file" filing is

16  potentially subject to an order by the office to return to

17  policyholders portions of rates found to be excessive, as

18  provided in paragraph (h).

19         (3)  The chief executive officer and chief financial

20  officer of each insurer, or its certified public accountant on

21  its behalf, shall sign a statement of certification to

22  accompany the rate filing. The statement shall certify the

23  appropriateness of the information in the rate filing and

24  certify that the information fairly presents, in all material

25  respects, the basis of the rate filing. The insurer shall

26  certify all of the information and factors described in

27  paragraph (b), including, but not limited to, investment

28  income. The Office of Insurance Regulation shall adopt by rule

29  a statement of certification form. The failure to provide a

30  statement of certification shall result in the rate filing

31  being disapproved without prejudice to its being refiled.

                                  2

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






    Florida Senate - 2005                                  SB 2618
    31-1375A-05




 1  

 2  The provisions of this subsection shall not apply to workers'

 3  compensation and employer's liability insurance and to motor

 4  vehicle insurance.

 5         Section 2.  This act shall take effect July 1, 2005.

 6  

 7            *****************************************

 8                          SENATE SUMMARY

 9    Requires that a statement of certification accompany
      certain insurance rate filings. (See bill for details.)
10  

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  3

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