Florida Senate - 2025                        COMMITTEE AMENDMENT
       Bill No. SB 888
       
       
       
       
       
       
                                Ì227312tÎ227312                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/25/2025           .                                
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       The Committee on Banking and Insurance (Avila) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Present subsection (2) of section 627.0621,
    6  Florida Statutes, is redesignated as subsection (3) and amended,
    7  and a new subsection (2) is added to that section, to read:
    8         627.0621 Transparency in rate regulation.—
    9         (2) RATE TRANSPARENCY REPORT.—
   10         (a) Beginning October 1, 2025, every rate filing requesting
   11  a rate change for residential property coverage from a property
   12  insurer must include a rate transparency report for acceptance
   13  for use or modification by the office. The office may accept the
   14  rate transparency report for filing, or if the office finds that
   15  the report fails to provide the required information in concise
   16  and plain language that aids consumers in their understanding of
   17  insurance, or finds the report to be misleading, the office must
   18  return the rate transparency report to the property insurer for
   19  modification. The office’s acceptance of the report for use or
   20  modification may not be deemed approval pursuant to s. 627.062.
   21  The report must be compiled in a uniform format prescribed by
   22  the commission and must include a graphical representation
   23  identifying a percentage breakdown of rating factors anticipated
   24  by the company, book, or program affected by the filing.
   25         (b) Along with an offer of coverage and upon renewal, an
   26  insurer must provide the corresponding copy of the rate
   27  transparency report for the consumers offered rate to aid
   28  consumers in their understanding of insurance. If the report has
   29  not been accepted for use or modified by the office, the report
   30  must indicate that it is preliminary and subject to modification
   31  by the office.
   32         (c) The rate transparency report must include the following
   33  categories of the book or program at the cumulative level:
   34         1. The percentage of the total rate factor associated with
   35  the cost of reinsurance.
   36         2. The percentage of the total rate factor associated with
   37  the cost of claims.
   38         3. The percentage of the total rate factor associated with
   39  the defense containment and costs.
   40         4. The percentage of the total rate factor associated with
   41  fees and commissions.
   42         5. The percentage of the rate factor associated with profit
   43  and contingency of the insurer.
   44         6. Any other categories deemed necessary by the office or
   45  commission.
   46  
   47  An estimated percentage of the influence of each listed factor
   48  provided must equal 100 percent.
   49         (d) The insurer shall provide the rate transparency report
   50  to the office upon the filing of a rate change with the office.
   51         (e) In addition to the categories required in paragraph
   52  (c), the rate transparency report must also include the
   53  following information:
   54         1. Any major adverse findings by the office for the
   55  previous 3 calendar years.
   56         2. Whether the insurer uses affiliated entities to perform
   57  functions of the insurer.
   58         3. Contact information, including a telephone number, hours
   59  of service, and e-mail address, for the Division of Consumer
   60  Services of the department.
   61         4. Contact information for the office.
   62         5. Address for the website for public access to rate filing
   63  and affiliate information outlined in subsection (3).
   64         6. Any changes in the total insured value from the last
   65  policy period.
   66         (f) The office shall define, in concise and plain language,
   67  any terms used in the rate transparency report to aid consumers
   68  in their understanding of insurance.
   69         (3)(2) WEBSITE FOR PUBLIC ACCESS TO RATE FILING
   70  INFORMATION.—
   71         (a) The office shall establish and maintain a comprehensive
   72  resource center on its website which uses concise and plain
   73  language to aid consumers in their understanding of insurance.
   74  The website must include substantive information on the current
   75  and historical dynamics of the market, data concerning the
   76  financial condition and market conduct of insurance companies,
   77  and insurance options available to consumers. At a minimum, the
   78  website must contain the following:
   79         1. Reports, using graphical information whenever possible,
   80  which outline information about the state of the market and
   81  adverse and positive trends affecting it.
   82         2. Tools that aid consumers in finding insurers, including,
   83  but not limited to, a listing of all companies actively doing
   84  business in this state which includes each company’s address,
   85  website, and all phone numbers and e-mail addresses to be used
   86  by insureds and applicants for coverage.
   87         3. Tools that aid consumers in selecting the coverages
   88  beneficial to them, including, but not limited to:
   89         a.Educational materials that explain the types of coverage
   90  in residential property insurance policies; the difference
   91  between replacement cost reimbursement and actual cash value
   92  reimbursement; a glossary of common terms used in policies; and
   93  a comparison of the coverage, terms, conditions, and exclusions
   94  contained in different homeowners and dwelling fire forms.
   95         b.Answers to commonly asked questions about residential
   96  property insurance coverage.
   97         4. Information about mitigation credits and the My Safe
   98  Florida Home Program, as well as other credits and discounts
   99  insurers may offer beyond wind mitigation.
  100         5. Access to the rate transparency report, annual
  101  statements, market conduct information, and other information
  102  related to each insurer.
  103         6. Information on the Citizens Property Insurance
  104  Corporation takeout process, the clearinghouse, and general
  105  information as reported by the office.
  106         7.Information on the claims process, including, but not
  107  limited to:
  108         a.Clear, step-by-step guidance on how to file a claim,
  109  what to expect during the claim process, and timelines for
  110  resolution of a claim.
  111         b.The obligations of insurers and insureds related to
  112  claim reporting, claim handling, communications regarding
  113  claims, claim investigations, claim decisions, and claim
  114  payments.
  115         c.For each insurer with active policies in this state, the
  116  means by which to report a claim, including any phone numbers,
  117  e-mail addresses, and website addresses, used for claim
  118  reporting.
  119         8.Information on consumer protection, including, but not
  120  limited to:
  121         a.The rights of insureds under Florida law related to
  122  obtaining coverage; coverage renewals, nonrenewals, and
  123  cancellations; and mandated offers of coverage.
  124         b.Information on how to file consumer complaints with the
  125  Division of Consumer Services in the Department of Financial
  126  Services.
  127         9.Information on news and updates relevant to consumers
  128  regarding this state’s residential property insurance market,
  129  including regulatory changes, information on insurers that enter
  130  or exit the market, and industry trends.
  131         10.Disaster preparedness information directly related to
  132  insurance, prepared by the office or by the Division of
  133  Emergency Management.
  134         11.(a) With respect to any residential property rate
  135  filing, the office shall provide the following information on a
  136  publicly accessible Internet website:
  137         a.1. The overall rate change requested by the insurer.
  138         b.2. The rate change approved by the office along with all
  139  of the actuary’s assumptions and recommendations forming the
  140  basis of the office’s decision.
  141         c.3. Certification by the office’s actuary that, based on
  142  the actuary’s knowledge, his or her recommendations are
  143  consistent with accepted actuarial principles.
  144         d. Whether the insurer uses affiliated entities to perform
  145  administrative, claims handling, or other functions of the
  146  insurer and, if so, the total percentage of direct written
  147  premium paid to the affiliated entities by the insurer in the
  148  preceding calendar year.
  149         (b) For any rate filing, regardless of whether or not the
  150  filing is subject to a public hearing, the office shall provide
  151  on its website a means for any policyholder who may be affected
  152  by a proposed rate change to send an e-mail regarding the
  153  proposed rate change. Such e-mail must be accessible to the
  154  actuary assigned to review the rate filing.
  155         (c) The statewide average requested rate change and final
  156  approved statewide average rate change within a filing is not a
  157  trade secret as defined in s. 688.002 or s. 812.081(1) and is
  158  not subject to the public records exemption for trade secrets
  159  provided in s. 119.0715 or s. 624.4213.
  160         (d) County rating examples submitted to the office through
  161  the rate collection system for the purposes of displaying rates
  162  on the office website are not a trade secret as defined in s.
  163  688.002 or s. 812.081(1) and are not subject to the public
  164  records exemption for trade secrets provided in s. 119.0715 or
  165  s. 624.4213.
  166         Section 2. This act shall take effect July 1, 2025.
  167  
  168  ================= T I T L E  A M E N D M E N T ================
  169  And the title is amended as follows:
  170         Delete everything before the enacting clause
  171  and insert:
  172                        A bill to be entitled                      
  173         An act relating to consumer transparency for
  174         homeowners’ insurance; amending s. 627.0621, F.S.;
  175         requiring that certain rate filings with the Office of
  176         Insurance Regulation from residential property
  177         insurers include rate transparency reports; providing
  178         for acceptance or rejection by the office of such
  179         reports; providing construction; providing
  180         requirements for such reports; requiring insurers to
  181         provide such reports to consumers; requiring that the
  182         report indicate that it is preliminary and subject to
  183         modification by the office under certain
  184         circumstances; requiring the office to define terms
  185         used in such reports; requiring the office to
  186         establish and maintain a comprehensive resource center
  187         on its website; providing requirements for the
  188         resource center; specifying that certain information
  189         is not a trade secret and is not subject to certain
  190         public records exemptions; providing an effective
  191         date.