HB 939

1
A bill to be entitled
2An act relating to insurance rate filings; amending s.
3627.062, F.S.; deleting authorization and procedures for
4use and file rate filings; revising requirements for
5making rate filings for certain classes of insurance;
6amending s. 627.311, F.S.; deleting authorization and
7procedures for use and file rate filings; revising
8requirements for filing rate plans by joint underwriters
9and joint reinsurers; providing an effective date.
10
11Be It Enacted by the Legislature of the State of Florida:
12
13     Section 1.  Paragraphs (a) and (h) of subsection (2) of
14section 627.062, Florida Statutes, are amended to read:
15     627.062  Rate standards.-
16     (2)  As to all such classes of insurance:
17     (a)  Insurers or rating organizations shall establish and
18use rates, rating schedules, or rating manuals to allow the
19insurer a reasonable rate of return on such classes of insurance
20written in this state. A copy of rates, rating schedules, rating
21manuals, premium credits or discount schedules, and surcharge
22schedules, and changes thereto, shall be filed with the office.
23under one of the following procedures except as provided in
24subparagraph 3.:
25     1.  All filings must be If the filing is made at least 90
26days before the proposed effective date and the filing may is
27not be implemented during the office's review of the filing and
28any proceeding and judicial review, then such filing shall be
29considered a "file and use" filing. In such case, The office
30shall finalize its review by issuance of a notice of intent to
31approve or a notice of intent to disapprove within 90 days after
32receipt of the filing. The notice of intent to approve and the
33notice of intent to disapprove constitute agency action for
34purposes of the Administrative Procedure Act. Requests for
35supporting information, requests for mathematical or mechanical
36corrections, or notification to the insurer by the office of its
37preliminary findings shall not toll the 90-day period during any
38such proceedings and subsequent judicial review. The rate shall
39be deemed approved if the office does not issue a notice of
40intent to approve or a notice of intent to disapprove within 90
41days after receipt of the filing.
42     2.  If the filing is not made in accordance with the
43provisions of subparagraph 1., such filing shall be made as soon
44as practicable, but no later than 30 days after the effective
45date, and shall be considered a "use and file" filing. An
46insurer making a "use and file" filing is potentially subject to
47an order by the office to return to policyholders portions of
48rates found to be excessive, as provided in paragraph (h).
49     3.  For all property insurance filings made or submitted
50after January 25, 2007, but before December 31, 2010, an insurer
51seeking a rate that is greater than the rate most recently
52approved by the office shall make a "file and use" filing. For
53purposes of this subparagraph, motor vehicle collision and
54comprehensive coverages are not considered to be property
55coverages.
56     (h)  If In the event the office finds that a rate or rate
57change is excessive, inadequate, or unfairly discriminatory, the
58office shall issue an order of disapproval specifying that a new
59rate or rate schedule that which responds to the findings of the
60office be filed by the insurer. The office shall further order,
61for any "use and file" filing made in accordance with
62subparagraph (a)2., that premiums charged each policyholder
63constituting the portion of the rate above that which was
64actuarially justified be returned to such policyholder in the
65form of a credit or refund. If the office finds that an
66insurer's rate or rate change is inadequate, the new rate or
67rate schedule filed with the office in response to such a
68finding shall be applicable only to new or renewal business of
69the insurer written on or after the effective date of the
70responsive filing.
71
72The provisions of this subsection shall not apply to workers'
73compensation and employer's liability insurance and to motor
74vehicle insurance.
75     Section 2.  Paragraph (e) of subsection (5) of section
76627.311, Florida Statutes, is amended to read:
77     627.311  Joint underwriters and joint reinsurers; public
78records and public meetings exemptions.-
79     (5)
80     (e)  For rates and rating plans effective on or after
81January 1, 2008, the plan shall establish and use its rates and
82rating plans, and the plan may establish and use changes in
83rating plans at any time, but no more frequently than two times
84per any rating class for any calendar year. By December 1 of
85each year thereafter, except as provided in subparagraph (c)22.,
86the board shall establish and use actuarially sound rates for
87use by the plan to assure that the plan is self-funding while
88those rates are in effect. Such rates and rating plans must be
89filed with the office at least 60 within 30 calendar days before
90after their effective dates, and shall be considered a "use and
91file" filing. Any disapproval by the office must have an
92effective date that is at least 60 days from the date of
93disapproval of the rates and rating plan and must have
94prospective effect only. The plan shall be subject to any order
95by the office to return to policyholders any portion of the
96rates disapproved by the office. The office may not disapprove
97any rates or rating plans unless it demonstrates that such rates
98and rating plans are excessive, inadequate, or unfairly
99discriminatory.
100     Section 3.  This act shall take effect January 1, 2011.


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