HB 0021 2004
1	A bill to be entitled
2	An act relating to insurance rate filing proceedings;
3	providing an act name; amending s. 627.062, F.S.; deleting
4	provisions authorizing insurers to require arbitration in
5	lieu of an administrative hearing after final agency
6	action in a rate filing; providing for arbitration;
7	providing an effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1. This is the "Insurance Consumer Protection Act
12	of 2004."
13	Section 2. Subsection (6) of section 627.062, Florida
14	Statutes, is amended to read:
15	627.062 Rate standards.--
16	(6)(a) After any action with respect to a rate filing that
17	constitutes agency action for purposes of the Administrative
18	Procedure Act, except for a rate filing for medical malpractice,
19	an insurer may, in lieu of demanding a hearing under s. 120.57,
20	require arbitration of the rate filing. Arbitration shall be
21	conducted by a board of arbitrators consisting of an arbitrator
22	selected by the office, an arbitrator selected by the insurer,
23	and an arbitrator selected jointly by the other two arbitrators.
24	Each arbitrator must be certified by the American Arbitration
25	Association. A decision is valid only upon the affirmative vote
26	of at least two of the arbitrators. No arbitrator may be an
27	employee of any insurance regulator or regulatory body or of any
28	insurer, regardless of whether or not the employing insurer does
29	business in this state. The office and the insurer must treat
30	the decision of the arbitrators as the final approval of a rate
31	filing. Costs of arbitration shall be paid by the insurer.
32	(b) Arbitration under this subsection shall be conducted
33	pursuant to the procedures specified in ss. 682.06-682.10.
34	Either party may apply to the circuit court to vacate or modify
35	the decision pursuant to s. 682.13 or s. 682.14. The commission
36	shall adopt rules for arbitration under this subsection, which
37	rules may not be inconsistent with the arbitration rules of the
38	American Arbitration Association as of January 1, 1996.
39	(c) Upon initiation of the arbitration process, the
40	insurer waives all rights to challenge the action of the office
41	under the Administrative Procedure Act or any other provision of
42	law; however, such rights are restored to the insurer if the
43	arbitrators fail to render a decision within 90 days after
44	initiation of the arbitration process.
45	Section 3. This act shall take effect upon becoming a law.