Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. PCS for SB 1980 (070118)
                        Barcode 645778
                            CHAMBER ACTION
              Senate                               House
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 1           Comm: FAV             .                    
       04/10/2006 11:49 AM         .                    
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11  The Committee on Banking and Insurance (Posey) recommended the
12  following amendment:
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14         Senate Amendment (with title amendment) 
15         On page 26, line 12 through 17, delete those lines
16  
17  and insert:  
18         Section 7.  Effective July 1, 2006, paragraphs (a) and
19  (b) of subsection (2) and subsection (5) of section 627.062,
20  Florida Statutes, are amended, and subsection (9) is added to
21  that section, to read:
22         627.062  Rate standards.--
23         (2)  As to all such classes of insurance:
24         (a)  Insurers or rating organizations shall establish
25  and use rates, rating schedules, or rating manuals to allow
26  the insurer a reasonable rate of return on such classes of
27  insurance written in this state.  A copy of rates, rating
28  schedules, rating manuals, premium credits or discount
29  schedules, and surcharge schedules, and changes thereto, shall
30  be filed with the office under one of the following
31  procedures:
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    2:34 PM   04/06/06                             s1980c-bi24-t01

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. PCS for SB 1980 (070118) Barcode 645778 1 1. If the filing is made at least 90 days before the 2 proposed effective date and the filing is not implemented 3 during the office's review of the filing and any proceeding 4 and judicial review, then such filing shall be considered a 5 "file and use" filing. In such case, the office shall 6 finalize its review by issuance of a notice of intent to 7 approve or a notice of intent to disapprove within 90 days 8 after receipt of the filing. The notice of intent to approve 9 and the notice of intent to disapprove constitute agency 10 action for purposes of the Administrative Procedure Act. 11 Requests for supporting information, requests for mathematical 12 or mechanical corrections, or notification to the insurer by 13 the office of its preliminary findings shall not toll the 14 90-day period during any such proceedings and subsequent 15 judicial review. The rate shall be deemed approved if the 16 office does not issue a notice of intent to approve or a 17 notice of intent to disapprove within 90 days after receipt of 18 the filing. 19 2. If the filing is not made in accordance with the 20 provisions of subparagraph 1., such filing shall be made as 21 soon as practicable, but no later than 30 days after the 22 effective date, and shall be considered a "use and file" 23 filing. An insurer making a "use and file" filing is 24 potentially subject to an order by the office to return to 25 policyholders portions of rates found to be excessive, as 26 provided in paragraph (h). 27 3. The chief executive officer and the chief financial 28 officer of each property insurer, or its certified public 29 accountant acting on its behalf, shall sign a statement of 30 certification, sworn under oath, to accompany the rate filing. 31 The statement must certify the appropriateness of the 2 2:34 PM 04/06/06 s1980c-bi24-t01
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. PCS for SB 1980 (070118) Barcode 645778 1 information provided in the rate filing and that the 2 information fairly presents, in all material respects, the 3 basis of the rate filing submitted by the property and 4 casualty insurer. The insurer shall certify all of the 5 information and factors described in paragraph (b), including, 6 but not limited to, investment income. The Office of Insurance 7 Regulation shall adopt by rule the form for the statement of 8 certification. Failure to provide the statement of 9 certification shall result in the rate filing being 10 disapproved without prejudice to be refiled. 11 12 13 ================ T I T L E A M E N D M E N T =============== 14 And the title is amended as follows: 15 On page 2, line 9, after the second semicolon, 16 17 insert: 18 requiring the chief executive officer and the 19 chief financial officer of each property 20 insurer, or its certified public accountant 21 acting on its behalf, to sign a statement of 22 certification, sworn under oath, to accompany 23 the rate filing; 24 25 26 27 28 29 30 31 3 2:34 PM 04/06/06 s1980c-bi24-t01