Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 1590
       
       
       
       
       
       
                                Barcode 724436                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                 Comm: UNFAV           .                                
                  04/13/2011           .                                
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       The Committee on Banking and Insurance (Smith) recommended the
       following:
       
    1         Senate Amendment to Amendment (155418) (with title
    2  amendment)
    3  
    4         Between lines 244 and 245
    5  insert:
    6         Section 9. Paragraph (f) of subsection (7) of section
    7  627.062, Florida Statutes, is redesignated as paragraph (g), and
    8  paragraph (f) is added to that subsection, to 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 700
   24  and insert:
   25         surgery risks if the patient form is executed;
   26         amending s. 627.062, F.S.; requiring the Office of
   27         Insurance Regulation to consider, as part of the
   28         insurer’s rate base, the insurer’s loss adjustment
   29         expenses or defense and cost containment expenses;
   30         providing that a rate or rate change may not be
   31         justified by an insurer’s loss adjustment expenses or
   32         defense and cost containment expenses in excess of the
   33         national average;