| 1 | Representative(s) Saunders offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove line(s) 800-803 and insert: |
| 5 | Section 9. Paragraphs (a), (h), and (j) of subsection (2) |
| 6 | of section 627.062, Florida Statutes, are amended to read: |
| 7 | 627.062 Rate standards.-- |
| 8 | (2) As to all such classes of insurance: |
| 9 | (a) Insurers or rating organizations shall establish and |
| 10 | use rates, rating schedules, or rating manuals to allow the |
| 11 | insurer a reasonable rate of return on such classes of insurance |
| 12 | written in this state. A copy of rates, rating schedules, |
| 13 | rating manuals, premium credits or discount schedules, and |
| 14 | surcharge schedules, and changes thereto, shall be filed with |
| 15 | the office under one of the following procedures: |
| 16 | 1. If the filing is made at least 90 days before the |
| 17 | proposed effective date and the filing may not be is not |
| 18 | implemented during the office's review of the filing and any |
| 19 | proceeding and judicial review, then such filing shall be |
| 20 | considered a "file and use" filing. In such case, The office |
| 21 | shall finalize its review by issuance of a notice of intent to |
| 22 | approve or a notice of intent to disapprove within 90 days after |
| 23 | receipt of the filing. The notice of intent to approve and the |
| 24 | notice of intent to disapprove constitute agency action for |
| 25 | purposes of the Administrative Procedure Act. Requests for |
| 26 | supporting information, requests for mathematical or mechanical |
| 27 | corrections, or notification to the insurer by the office of its |
| 28 | preliminary findings shall not toll the 90-day period during any |
| 29 | such proceedings and subsequent judicial review. The rate shall |
| 30 | be deemed approved if the office does not issue a notice of |
| 31 | intent to approve or a notice of intent to disapprove within 90 |
| 32 | days after receipt of the filing. |
| 33 | 2. If the filing is not made in accordance with the |
| 34 | provisions of subparagraph 1., such filing shall be made as soon |
| 35 | as practicable, but no later than 30 days after the effective |
| 36 | date, and shall be considered a "use and file" filing. An |
| 37 | insurer making a "use and file" filing is potentially subject to |
| 38 | an order by the office to return to policyholders portions of |
| 39 | rates found to be excessive, as provided in paragraph (h). |
| 40 | (h) In the event the office finds that a rate or rate |
| 41 | change is excessive, inadequate, or unfairly discriminatory, the |
| 42 | office shall issue an order of disapproval specifying that a new |
| 43 | rate or rate schedule which responds to the findings of the |
| 44 | office be filed by the insurer. The office shall further order, |
| 45 | for any "use and file" filing made in accordance with |
| 46 | subparagraph (a)2., that premiums charged each policyholder |
| 47 | constituting the portion of the rate above that which was |
| 48 | actuarially justified be returned to such policyholder in the |
| 49 | form of a credit or refund. If the office finds that an |
| 50 | insurer's rate or rate change is inadequate, the new rate or |
| 51 | rate schedule filed with the office in response to such a |
| 52 | finding shall be applicable only to new or renewal business of |
| 53 | the insurer written on or after the effective date of the |
| 54 | responsive filing. |
| 55 | ======= T I T L E A M E N D M E N T ======= |
| 56 | Remove line(s) 51 and insert: |
| 57 | amending s. 627.062, F.S.; deleting provisions allowing property |
| 58 | and casualty insurers to use and file rates; delaying the |
| 59 | effective date of |