Florida Senate - 2018 SB 1634
By Senator Lee
20-01211A-18 20181634__
1 A bill to be entitled
2 An act relating to the regulation of workers’
3 compensation insurance; amending s. 627.0613, F.S.;
4 authorizing the consumer advocate appointed by the
5 Chief Financial Officer to intervene as a party in
6 certain proceedings relating to the regulation of
7 workers’ compensation insurance or to seek review of
8 certain agency actions relating to workers’
9 compensation insurance before the Division of
10 Administrative Hearings; specifying requirements and
11 procedures for the consumer advocate in the
12 examination of workers’ compensation rates or form
13 filings; requiring the consumer advocate to present
14 any recommendation regarding the filing to the Office
15 of Insurance Regulation within specified timeframes;
16 requiring a certain certification from the actuary who
17 examines the filing and prepares recommendations for
18 the consumer advocate; specifying requirements for the
19 office in responding to the consumer advocate’s
20 recommendations; prohibiting the office from approving
21 or disapproving a filing or issuing a certain notice
22 before the office responds to such recommendations;
23 amending s. 627.0621, F.S.; requiring the office to
24 publish on a publicly accessible website certain
25 recommendations of the consumer advocate with respect
26 to a workers’ compensation rate filing and the
27 office’s response to such recommendations; providing
28 an effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
31
32 Section 1. Present subsection (4) of section 627.0613,
33 Florida Statutes, is redesignated as subsection (5), a new
34 subsection (4) is added to that section, and subsection (3) of
35 that section is republished, to read:
36 627.0613 Consumer advocate.—The Chief Financial Officer
37 must appoint a consumer advocate who must represent the general
38 public of the state before the department and the office. The
39 consumer advocate must report directly to the Chief Financial
40 Officer, but is not otherwise under the authority of the
41 department or of any employee of the department. The consumer
42 advocate has such powers as are necessary to carry out the
43 duties of the office of consumer advocate, including, but not
44 limited to, the powers to:
45 (3) Examine rate and form filings submitted to the office,
46 hire consultants as necessary to aid in the review process, and
47 recommend to the department or office any position deemed by the
48 consumer advocate to be in the public interest.
49 (4) Intervene as a party in any proceeding or action before
50 the department or office relating to the regulation of workers’
51 compensation insurance; seek review before the Division of
52 Administrative Hearings of any agency action relating to
53 workers’ compensation insurance arising out of any proceeding or
54 action before the department or office in which the consumer
55 advocate appeared as a party; or intervene as a party in any
56 proceeding before the Division of Administrative Hearings
57 relating to the regulation of workers’ compensation insurance
58 under the jurisdiction of the department or office.
59 (a) If the consumer advocate intends to examine a workers’
60 compensation rate or form filing, the consumer advocate must
61 notify the office within 14 days after the date the filing is
62 made.
63 (b) If the consumer advocate determines that additional
64 information relating to the filing is needed in order to
65 complete an examination, the consumer advocate may submit a
66 demand for the additional information to the insurer within 21
67 days after the date the filing was made. The consumer advocate
68 shall provide a copy of the demand to the office at the same
69 time that the demand is sent to the insurer. The insurer shall
70 provide the additional information relating to the filing to the
71 consumer advocate and the office within 15 days after receipt of
72 a demand from the consumer advocate.
73 (c) The consumer advocate shall present any recommendation
74 regarding the filing to the office:
75 1. Within 21 days after the date a filing was made, if no
76 additional information is requested from the insurer.
77 2. Within 15 days after the receipt of additional
78 information requested.
79 (d) The actuary who examines the filing and prepares the
80 recommendations for the consumer advocate must certify that,
81 based on the actuary’s knowledge, his or her recommendations are
82 consistent with accepted actuarial principles.
83 (e) The office shall respond in writing to the consumer
84 advocate by accepting or rejecting each recommendation. If the
85 consumer advocate submits recommendations on a filing that is
86 the subject of a public hearing by the office, the office must
87 specifically respond in writing to each recommendation and
88 specifically state its reasons for accepting or rejecting each
89 recommendation. If the office issues an order approving or
90 disapproving a filing, the response of the office to the
91 consumer advocate’s recommendations must be included in the
92 order.
93 (f) The office may not approve or disapprove a filing, or
94 issue a notice of intent to approve or notice of intent to
95 disapprove the filing, before the office responds to the
96 recommendations of the consumer advocate.
97 Section 2. Paragraph (c) is added to subsection (2) of
98 section 627.0621, Florida Statutes, and subsection (1) of that
99 section is republished, to read:
100 627.0621 Transparency in rate regulation.—
101 (1) DEFINITIONS.—As used in this section, the term:
102 (a) “Rate filing” means any original or amended rate
103 residential property insurance filing.
104 (b) “Recommendation” means any proposed, preliminary, or
105 final recommendation from an office actuary reviewing a rate
106 filing with respect to the issue of approval or disapproval of
107 the rate filing or with respect to rate indications that the
108 office would consider acceptable.
109 (2) WEBSITE FOR PUBLIC ACCESS TO RATE FILING INFORMATION.—
110 (c) With respect to any workers’ compensation rate filing,
111 the office shall publish on a publicly accessible website the
112 recommendations of the consumer advocate with regard to changes
113 requested by the insurer in rates, rating schedules, rating
114 manuals, premium credits, discount schedules, or surcharge
115 schedules, and the response of the office to the
116 recommendations.
117 Section 3. This act shall take effect October 1, 2018.