Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1660
Barcode 763682
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Peaden) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Subsection (8) of section 627.062, Florida
19 Statutes, is amended to read:
20 627.062 Rate standards.--
21 (8)(a)1. No later than 60 days after the effective
22 date of medical malpractice legislation enacted during the
23 2003 Special Session D of the Florida Legislature, the office
24 shall calculate a presumed factor that reflects the impact
25 that the changes contained in such legislation will have on
26 rates for medical malpractice insurance and shall issue a
27 notice informing all insurers writing medical malpractice
28 coverage of such presumed factor. The office may amend the
29 presumed factor annually. In determining the presumed factor,
30 the office shall use generally accepted actuarial techniques
31 and standards provided in this section in determining the
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1660
Barcode 763682
1 expected impact on losses, expenses, and investment income of
2 the insurer. The presumed factor shall also reflect the effect
3 of the repeal of joint and several liability which was enacted
4 during the 2006 regular session of the Legislature. To the
5 extent that the operation of a provision of medical
6 malpractice legislation enacted during the 2003 Special
7 Session D of the Florida Legislature is stayed pending a
8 constitutional challenge, the impact of that provision shall
9 not be included in the calculation of a presumed factor under
10 this subparagraph.
11 2. No later than 60 days after the office issues its
12 notice of the presumed rate change factor under subparagraph
13 1.or any amended presumed factor, each insurer writing medical
14 malpractice coverage in this state shall submit to the office
15 a rate filing for medical malpractice insurance, which will
16 take effect no later than 6 months after the date the insurer
17 files the rates January 1, 2004, and apply retroactively to
18 policies issued or renewed on or after the effective date of
19 medical malpractice legislation enacted during the 2003
20 Special Session D of the Florida Legislature. Except as
21 authorized under paragraph (b), the filing shall reflect an
22 overall rate reduction at least as great as the presumed
23 factor determined under subparagraph 1. With respect to
24 policies issued on or after the effective date of such
25 legislation and before prior to the effective date of the rate
26 filing required by this subsection, the office shall order the
27 insurer to make a refund of the amount that was charged in
28 excess of the rate that is approved.
29 (b) Any insurer or rating organization that contends
30 that the rate provided for in paragraph (a) is excessive,
31 inadequate, or unfairly discriminatory shall separately state
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1660
Barcode 763682
1 in its filing the rate it contends is appropriate and shall
2 state with specificity the factors or data that it contends
3 should be considered in order to produce such appropriate
4 rate. The insurer or rating organization is shall be permitted
5 to use all of the generally accepted actuarial techniques
6 provided in this section in making any filing under pursuant
7 to this subsection. The office shall review each such
8 exception and approve or disapprove it prior to use. It shall
9 be The insurer has the insurer's burden to actuarially justify
10 any deviation deviations from the rates required to be filed
11 under paragraph (a). The insurer making a filing under this
12 paragraph shall include in the filing the expected impact of
13 medical malpractice legislation enacted during the 2003
14 Special Session D of the Florida Legislature and during the
15 2006 regular session, as provided in paragraph (a), on losses,
16 expenses, and rates.
17 (c) If any provision of medical malpractice
18 legislation enacted during the 2003 Special Session D of the
19 Florida Legislature is held invalid by a court of competent
20 jurisdiction, the office shall permit an adjustment of all
21 medical malpractice rates filed under this section to reflect
22 the impact of such holding on such rates so as to ensure that
23 the rates are not excessive, inadequate, or unfairly
24 discriminatory.
25 (d) Rates approved on or before July 1, 2003, for
26 medical malpractice insurance shall remain in effect until the
27 effective date of a new rate filing approved under this
28 subsection.
29 (c)(e) The calculation and notice by the office of the
30 presumed factor pursuant to paragraph (a) is not an order or
31 rule that is subject to chapter 120. If the office enters into
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1660
Barcode 763682
1 a contract with an independent consultant to assist the office
2 in calculating the presumed factor, such contract shall not be
3 subject to the competitive solicitation requirements of s.
4 287.057. The office shall establish a medical malpractice
5 advisory panel to make recommendations for the proper
6 application of medical malpractice insurance laws in this
7 state with respect to the calculation of the presumed factor.
8 Section 2. The sum of $250,000 in recurring funds is
9 appropriated from the Insurance Regulatory Trust Fund in the
10 Department of Financial Services to the Office of Insurance
11 Regulation for the 2007-2008 fiscal year for the purpose of
12 implementing this act.
13 Section 3. This act shall take effect July 1, 2007.
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17 And the title is amended as follows:
18 Delete everything before the enacting clause
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20 and insert:
21 A bill to be entitled
22 An act relating to rate schedules for medical
23 malpractice insurance; amending s. 627.062,
24 F.S.; authorizing the Office of Insurance
25 Regulation to amend the presumed factor
26 annually; requiring that the presumed rate
27 reflect the repeal of joint and several
28 liability; providing that insurance companies'
29 medical malpractice rate filings take effect no
30 later than 6 months after the company files the
31 rates; requiring the office to establish a
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1660
Barcode 763682
1 medical malpractice advisory panel; providing
2 responsibilities for the panel; providing an
3 appropriation; providing an effective date.
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