Florida Senate - 2013                       CS for CS for SB 468
       
       
       
       By the Committees on Health Policy; and Banking and Insurance;
       and Senator Hukill
       
       
       
       588-03422-13                                           2013468c2
    1                        A bill to be entitled                      
    2         An act relating to property and casualty insurance
    3         rates and forms; amending s. 627.062, F.S.; exempting
    4         medical malpractice insurance that covers certain
    5         providers and practitioners from specified rate filing
    6         requirements; revising provisions relating to
    7         notification of rate changes to codify the amendments
    8         made to s. 627.062(3)(d)3., F.S., by s. 1, ch. 2011
    9         160, Laws of Florida, in lieu of the amendments made
   10         by s. 12, ch. 2011-39, Laws of Florida, and making
   11         editorial changes; amending s. 627.410, F.S.;
   12         conforming provisions to changes made by the act;
   13         creating s. 627.4102, F.S.; providing for an
   14         informational filing of certain forms that are exempt
   15         from the Office of Insurance Regulation’s approval
   16         process; requiring an informational filing to include
   17         a notarized certification from the insurer and
   18         providing a statement that must be included in the
   19         certification; authorizing the office to require prior
   20         review and approval of a form that is not in
   21         compliance; requiring a Notice of Change In Policy
   22         Terms form to be filed with a changed renewal policy;
   23         providing for construction and applicability;
   24         providing an effective date.
   25  
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Paragraph (d) of subsection (3) and paragraph
   29  (e) of subsection (7) of section 627.062, Florida Statutes, are
   30  amended to read:
   31         627.062 Rate standards.—
   32         (3)
   33         (d)1. The following categories or kinds of insurance and
   34  types of commercial lines risks are not subject to paragraph
   35  (2)(a) or paragraph (2)(f):
   36         a. Excess or umbrella.
   37         b. Surety and fidelity.
   38         c. Boiler and machinery and leakage and fire extinguishing
   39  equipment.
   40         d. Errors and omissions.
   41         e. Directors and officers, employment practices, fiduciary
   42  liability, and management liability.
   43         f. Intellectual property and patent infringement liability.
   44         g. Advertising injury and Internet liability insurance.
   45         h. Property risks rated under a highly protected risks
   46  rating plan.
   47         i. General liability.
   48         j. Nonresidential property, except for collateral
   49  protection insurance as defined in s. 624.6085.
   50         k. Nonresidential multiperil.
   51         l. Excess property.
   52         m. Burglary and theft.
   53         n. Medical malpractice for a facility that is not a
   54  hospital licensed under chapter 395, a nursing home licensed
   55  under part II of chapter 400, or an assisted living facility
   56  licensed under part I of chapter 429.
   57         o. Medical malpractice for a health care practitioner who
   58  is not a dentist licensed under chapter 466, a physician
   59  licensed under chapter 458, an osteopathic physician licensed
   60  under chapter 459, a chiropractic physician licensed under
   61  chapter 460, or a podiatric physician licensed under chapter
   62  461.
   63         p.n. Any other commercial lines categories or kinds of
   64  insurance or types of commercial lines risks that the office
   65  determines should not be subject to paragraph (2)(a) or
   66  paragraph (2)(f) because of the existence of a competitive
   67  market for such insurance, similarity of such insurance to other
   68  categories or kinds of insurance not subject to paragraph (2)(a)
   69  or paragraph (2)(f), or to improve the general operational
   70  efficiency of the office.
   71         2. Insurers or rating organizations shall establish and use
   72  rates, rating schedules, or rating manuals to allow the insurer
   73  a reasonable rate of return on insurance and risks described in
   74  subparagraph 1. which are written in this state.
   75         3. An insurer shall must notify the office of any changes
   76  to rates for insurance and risks described in subparagraph 1.
   77  within 30 days after the effective date of the change. The
   78  notice must include the name of the insurer, the type or kind of
   79  insurance subject to rate change, total premium written during
   80  the immediately preceding year by the insurer for the type or
   81  kind of insurance subject to the rate change, and the average
   82  statewide percentage change in rates. Actuarial data
   83  Underwriting files, premiums, losses, and expense statistics
   84  with regard to rates for such insurance and risks written by an
   85  insurer must be maintained by the insurer for 2 years after the
   86  effective date of changes to those rates and are subject to
   87  examination by the office. The office may require the insurer to
   88  incur the costs associated with an examination. Upon
   89  examination, the office, in accordance with generally accepted
   90  and reasonable actuarial techniques, shall consider the rate
   91  factors in paragraphs (2)(b), (c), and (d) and the standards in
   92  paragraph (2)(e) to determine if the rate is excessive,
   93  inadequate, or unfairly discriminatory.
   94         4. A rating organization shall must notify the office of
   95  any changes to loss cost for insurance and risks described in
   96  subparagraph 1. within 30 days after the effective date of the
   97  change. The notice must include the name of the rating
   98  organization, the type or kind of insurance subject to a loss
   99  cost change, loss costs during the immediately preceding year
  100  for the type or kind of insurance subject to the loss cost
  101  change, and the average statewide percentage change in loss
  102  cost. Actuarial data with regard to changes to loss cost for
  103  risks not subject to paragraph (2)(a) or paragraph (2)(f) must
  104  be maintained by the rating organization for 2 years after the
  105  effective date of the change and are subject to examination by
  106  the office. The office may require the rating organization to
  107  incur the costs associated with an examination. Upon
  108  examination, the office, in accordance with generally accepted
  109  and reasonable actuarial techniques, shall consider the rate
  110  factors in paragraphs (2)(b)-(d) and the standards in paragraph
  111  (2)(e) to determine if the rate is excessive, inadequate, or
  112  unfairly discriminatory.
  113         (7) The provisions of this subsection apply only to rates
  114  for medical malpractice insurance and control to the extent of
  115  any conflict with other provisions of this section.
  116         (e) For medical malpractice rates subject to paragraph
  117  (2)(a), the each medical malpractice insurer shall must make a
  118  rate filing under this section, sworn to by at least two
  119  executive officers of the insurer, at least once each calendar
  120  year.
  121         Section 2. Subsection (1) of section 627.410, Florida
  122  Statutes, is amended to read:
  123         627.410 Filing, approval of forms.—
  124         (1) A No basic insurance policy or annuity contract form,
  125  or application form where written application is required and is
  126  to be made a part of the policy or contract, or group
  127  certificates issued under a master contract delivered in this
  128  state, or printed rider or endorsement form or form of renewal
  129  certificate, may not shall be delivered or issued for delivery
  130  in this state, unless the form has been filed with the office by
  131  or on in behalf of the insurer that which proposes to use such
  132  form and has been approved by the office or filed pursuant to s.
  133  627.4102. This provision does not apply to surety bonds or to
  134  policies, riders, endorsements, or forms of unique character
  135  that which are designed for and used with relation to insurance
  136  on upon a particular subject, (other than as to health
  137  insurance), or that which relate to the manner of distributing
  138  distribution of benefits or to the reservation of rights and
  139  benefits under life or health insurance policies and are used at
  140  the request of the individual policyholder, contract holder, or
  141  certificateholder. For As to group insurance policies
  142  effectuated and delivered outside this state but covering
  143  persons resident in this state, the group certificates to be
  144  delivered or issued for delivery in this state shall be filed
  145  with the office for information purposes only.
  146         Section 3. Section 627.4102, Florida Statutes, is created
  147  to read:
  148         627.4102 Informational filing of forms.—
  149         (1) Property and casualty forms, except workers’
  150  compensation and personal lines forms, are exempt from the
  151  approval process required under s. 627.410 if:
  152         (a) The form has been electronically submitted to the
  153  office in an informational filing made through I-File 30 days
  154  before the delivery or issuance for delivery of the form within
  155  this state; and
  156         (b) At the time the informational filing is made, a
  157  notarized certification is attached to the filing that certifies
  158  that each form within the filing is in compliance with all
  159  applicable state laws and rules. The certification must be on
  160  the insurer’s letterhead and signed and dated by the insurer’s
  161  president, chief executive officer, general counsel, or an
  162  employee of the insurer responsible for the filing on behalf of
  163  the insurer. The certification must contain the following
  164  statement, and no other language: “I, ...[name]..., as
  165  ...[title]... of ...[insurer name]..., do hereby certify that
  166  this form filing has been thoroughly and diligently reviewed by
  167  me and by all appropriate company personnel, as well as company
  168  consultants, if applicable, and certify that each form contained
  169  within the filing is in compliance with all applicable Florida
  170  laws and rules. Should a form be found not to be in compliance
  171  with Florida laws and rules, I acknowledge that the Office of
  172  Insurance Regulation shall disapprove the form.”
  173         (2) If the filing contains a form that is not in compliance
  174  with state laws and rules, the form filing, at the discretion of
  175  the office, is subject to prior review and approval pursuant to
  176  s. 627.410, and the period for review and approval established
  177  under s. 627.410(2) begins to run on the date the office
  178  notifies the insurer of the discovery of the noncompliant form.
  179         (3) A Notice of Change in Policy Terms form required under
  180  s. 627.43141(2) shall be filed as a part of the informational
  181  filing for a renewal policy that contains a change. If a renewal
  182  policy that was certified requires such form, the insurer must
  183  provide a sample copy of the form to the named insured’s agent
  184  before or upon providing the form to the named insured.
  185         (4) This section does not preclude an insurer from electing
  186  to file any form for approval under s. 627.410 that would
  187  otherwise be exempt under this section.
  188         (5) The provisions of this section supersede and replace
  189  the existing order issued by the office exempting specified
  190  property and casualty forms from the requirements of s. 627.410.
  191         Section 4. This act shall take effect July 1, 2013.