HB 613

1	A bill to be entitled
2	An act relating to insurance rate filings; amending s.
3	627.062, F.S.; deleting authorization and procedures for
4	use and file rate filings; revising requirements for
5	making rate filings for all classes of insurance; amending
6	s. 627.0651, F.S.; deleting authorization and procedures
7	for use and file rate filings; revising requirements for
8	making rate filings for motor vehicle insurance; amending
9	s. 627.311, F.S.; deleting authorization and procedures
10	for use and file rate filings; revising requirements for
11	filing rate plans by joint underwriters and joint
12	reinsurers; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Paragraphs (a) and (h) of subsection (2) of
17	section 627.062, Florida Statutes, are amended to read:
18	627.062  Rate standards.-
19	(2)  As to all such classes of insurance:
20	(a)  Insurers or rating organizations shall establish and
21	use rates, rating schedules, or rating manuals to allow the
22	insurer a reasonable rate of return on such classes of insurance
23	written in this state. A copy of rates, rating schedules, rating
24	manuals, premium credits or discount schedules, and surcharge
25	schedules, and changes thereto, shall be filed with the office.
26	under one of the following procedures except as provided in
27	subparagraph 3.:
28	1.  All filings must be If the filing is made at least 90
29	days before the proposed effective date and the filing may is
30	not be implemented during the office's review of the filing and
31	any proceeding and judicial review, then such filing shall be
32	considered a "file and use" filing. In such case, The office
33	shall finalize its review by issuance of a notice of intent to
34	approve or a notice of intent to disapprove within 90 days after
35	receipt of the filing. The notice of intent to approve and the
36	notice of intent to disapprove constitute agency action for
37	purposes of the Administrative Procedure Act. Requests for
38	supporting information, requests for mathematical or mechanical
39	corrections, or notification to the insurer by the office of its
40	preliminary findings shall not toll the 90-day period during any
41	such proceedings and subsequent judicial review. The rate shall
42	be deemed approved if the office does not issue a notice of
43	intent to approve or a notice of intent to disapprove within 90
44	days after receipt of the filing.
45	2.  If the filing is not made in accordance with the
46	provisions of subparagraph 1., such filing shall be made as soon
47	as practicable, but no later than 30 days after the effective
48	date, and shall be considered a "use and file" filing. An
49	insurer making a "use and file" filing is potentially subject to
50	an order by the office to return to policyholders portions of
51	rates found to be excessive, as provided in paragraph (h).
52	3.  For all property insurance filings made or submitted
53	after January 25, 2007, but before December 31, 2010, an insurer
54	seeking a rate that is greater than the rate most recently
55	approved by the office shall make a "file and use" filing. For
56	purposes of this subparagraph, motor vehicle collision and
57	comprehensive coverages are not considered to be property
58	coverages.
59	(h)  If In the event the office finds that a rate or rate
60	change is excessive, inadequate, or unfairly discriminatory, the
61	office shall issue an order of disapproval specifying that a new
62	rate or rate schedule which responds to the findings of the
63	office be filed by the insurer. The office shall further order,
64	for any "use and file" filing made in accordance with
65	subparagraph (a)2., that premiums charged each policyholder
66	constituting the portion of the rate above that which was
67	actuarially justified be returned to such policyholder in the
68	form of a credit or refund. If the office finds that an
69	insurer's rate or rate change is inadequate, the new rate or
70	rate schedule filed with the office in response to such a
71	finding shall be applicable only to new or renewal business of
72	the insurer written on or after the effective date of the
73	responsive filing.
74
75	The provisions of this subsection shall not apply to workers'
76	compensation and employer's liability insurance and to motor
77	vehicle insurance.
78	Section 2.  Subsections (1) and (11) of section 627.0651,
79	Florida Statutes, are amended to read:
80	627.0651  Making and use of rates for motor vehicle
81	insurance.-
82	(1)  Insurers shall establish and use rates, rating
83	schedules, or rating manuals to allow the insurer a reasonable
84	rate of return on motor vehicle insurance written in this state.
85	A copy of rates, rating schedules, and rating manuals, and
86	changes therein, shall be filed with the office. under one of
87	the following procedures:
88	(a)  If The filing must be is made at least 60 days before
89	the proposed effective date and the filing may is not be
90	implemented during the office's review of the filing and any
91	proceeding and judicial review, such filing shall be considered
92	a "file and use" filing. In such case, The office shall initiate
93	proceedings to disapprove the rate and so notify the insurer or
94	shall finalize its review within 60 days after receipt of the
95	filing. Notification to the insurer by the office of its
96	preliminary findings shall toll the 60-day period during any
97	such proceedings and subsequent judicial review. The rate shall
98	be deemed approved if the office does not issue notice to the
99	insurer of its preliminary findings within 60 days after the
100	filing.
101	(b)  If the filing is not made in accordance with the
102	provisions of paragraph (a), such filing shall be made as soon
103	as practicable, but no later than 30 days after the effective
104	date, and shall be considered a "use and file" filing. An
105	insurer making a "use and file" filing is potentially subject to
106	an order by the office to return to policyholders portions of
107	rates found to be excessive, as provided in subsection (11).
108	(11)  If In the event the office finds that a rate or rate
109	change is excessive, inadequate, or unfairly discriminatory, the
110	office shall issue an order of disapproval specifying that a new
111	rate or rate schedule which responds to the findings of the
112	office be filed by the insurer. The office shall further order
113	for any "use and file" filing made in accordance with paragraph
114	(1)(b), that premiums charged each policyholder constituting the
115	portion of the rate above that which was actuarially justified
116	be returned to such policyholder in the form of a credit or
117	refund. If the office finds that an insurer's rate or rate
118	change is inadequate, the new rate or rate schedule filed with
119	the office in response to such a finding shall be applicable
120	only to new or renewal business of the insurer written on or
121	after the effective date of the responsive filing.
122	Section 3.  Paragraph (e) of subsection (5) of section
123	627.311, Florida Statutes, is amended to read:
124	627.311  Joint underwriters and joint reinsurers; public
125	records and public meetings exemptions.-
126	(5)
127	(e)  For rates and rating plans effective on or after
128	January 1, 2008, the plan shall establish and use its rates and
129	rating plans, and the plan may establish and use changes in
130	rating plans at any time, but no more frequently than two times
131	per any rating class for any calendar year. By December 1 of
132	each year thereafter, except as provided in subparagraph (c)22.,
133	the board shall establish and use actuarially sound rates for
134	use by the plan to assure that the plan is self-funding while
135	those rates are in effect. Such rates and rating plans must be
136	filed with the office at least 60 within 30 calendar days before
137	after their effective dates, and shall be considered a "use and
138	file" filing. Any disapproval by the office must have an
139	effective date that is at least 60 days from the date of
140	disapproval of the rates and rating plan and must have
141	prospective effect only. The plan shall be subject to any order
142	by the office to return to policyholders any portion of the
143	rates disapproved by the office. The office may not disapprove
144	any rates or rating plans unless it demonstrates that such rates
145	and rating plans are excessive, inadequate, or unfairly
146	discriminatory.
147	Section 4.  This act shall take effect January 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.