Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 1590
       
       
       
       
       
       
                                Barcode 363290                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/13/2011           .                                
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       The Committee on Banking and Insurance (Smith) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Between lines 147 and 148
    4  insert:
    5         Section 5. Present paragraph (f) of subsection (7) of
    6  section 627.062, Florida Statutes, is redesignated as paragraph
    7  (g), and a new paragraph (f) is added to that subsection, to
    8  read:
    9         627.062 Rate standards.—
   10         (7)
   11         (f) In reviewing any rate filing under this subsection, the
   12  office shall consider as part of the insurer’s rate base the
   13  insurer’s loss adjustment expenses or defense and cost
   14  containment expenses only to the extent that the expenses are
   15  below or do not exceed the national average for such expenses,
   16  as determined by the office, for the prior calendar year. An
   17  insurer’s loss adjustment expenses or defense and cost
   18  containment expenses in excess of the national average may not
   19  be used to justify a rate or rate change.
   20  
   21  ================= T I T L E  A M E N D M E N T ================
   22         And the title is amended as follows:
   23         Delete line 15
   24  and insert:
   25         apply; amending s. 627.062, F.S.; requiring the Office
   26         of Insurance Regulation to consider, as part of the
   27         insurer’s rate base, the insurer’s loss adjustment
   28         expenses or defense and cost containment expenses;
   29         providing that a rate or rate change may not be
   30         justified by an insurer’s loss adjustment expenses or
   31         defense and cost containment expenses in excess of the
   32         national average; amending s. 627.4147, F.S.; deleting
   33         a