Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for SB 178
       
       
       
       
       
       
                                Barcode 781304                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/16/2011           .                                
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       The Committee on Commerce and Tourism (Gaetz) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 68 - 167
    4  and insert:
    5         m. Burglary and theft.
    6         n.i. Any other commercial lines categories or kinds of
    7  insurance or types of commercial lines risks that the office
    8  determines should not be subject to paragraph (2)(a) or
    9  paragraph (2)(f) because of the existence of a competitive
   10  market for such insurance, similarity of such insurance to other
   11  categories or kinds of insurance not subject to paragraph (2)(a)
   12  or paragraph (2)(f), or to improve the general operational
   13  efficiency of the office.
   14         2. Insurers or rating organizations shall establish and use
   15  rates, rating schedules, or rating manuals to allow the insurer
   16  a reasonable rate of return on insurance and risks described in
   17  subparagraph 1. which are written in this state.
   18         3. An insurer must notify the office of any changes to
   19  rates for insurance and risks described in subparagraph 1. no
   20  later than 30 days after the effective date of the change. The
   21  notice must include the name of the insurer, the type or kind of
   22  insurance subject to rate change, total premium written during
   23  the immediately preceding year by the insurer for the type or
   24  kind of insurance subject to the rate change, and the average
   25  statewide percentage change in rates. Actuarial data
   26  Underwriting files, premiums, losses, and expense statistics
   27  with regard to rates for insurance and risks described in
   28  subparagraph 1. written by an insurer shall be maintained by the
   29  insurer for 2 years after the effective date of changes to rates
   30  and are subject to examination by the office. The office may
   31  require the insurer to pay the costs associated with an
   32  examination. Upon examination, the office shall, in accordance
   33  with generally accepted and reasonable actuarial techniques,
   34  consider the rate factors in paragraphs (2)(b), (c), and (d) and
   35  the standards in paragraph (2)(e) to determine if the rate is
   36  excessive, inadequate, or unfairly discriminatory.
   37         4. A rating organization must notify the office of any
   38  changes to loss cost for insurance and risks described in
   39  subparagraph 1. no later than 30 days after the effective date
   40  of the change. The notice must include the name of the rating
   41  organization, the type or kind of insurance subject to a loss
   42  cost change, loss costs during the immediately preceding year
   43  for the type or kind of insurance subject to the loss cost
   44  change, and the average statewide percentage change in loss
   45  cost. Actuarial data Loss and exposure statistics with regard to
   46  changes to loss cost for risks applicable to loss costs for a
   47  rating organization not subject to paragraph (2)(a) or paragraph
   48  (2)(f) shall be maintained by the rating organization for 2
   49  years after the effective date of the change and are subject to
   50  examination by the office. The office may require the rating
   51  organization to pay the costs associated with an examination.
   52  Upon examination, the office shall, in accordance with generally
   53  accepted and reasonable actuarial techniques, consider the rate
   54  factors in paragraphs (2)(b)-(d) and the standards in paragraph
   55  (2)(e) to determine if the rate is excessive, inadequate, or
   56  unfairly discriminatory.
   57         5. In reviewing a rate, the office may require the insurer
   58  to provide at the insurer’s expense all information necessary to
   59  evaluate the condition of the company and the reasonableness of
   60  the rate according to the applicable criteria described in this
   61  section.
   62         Section 2. Subsection (14) of section 627.0651, Florida
   63  Statutes, is amended to read:
   64         627.0651 Making and use of rates for motor vehicle
   65  insurance.—
   66         (14)(a) Commercial motor vehicle insurance covering a fleet
   67  of 20 or more self-propelled vehicles is not subject to
   68  subsection (1), subsection (2), or subsection (9) or s.
   69  627.0645.
   70         (b) The rates for insurance described in this subsection
   71  may not be excessive, inadequate, or unfairly discriminatory.
   72         (c) Insurers shall establish and use rates, rating
   73  schedules, or rating manuals to allow the insurer a reasonable
   74  rate of return on commercial motor vehicle insurance written in
   75  this state covering a fleet of 20 or more self-propelled
   76  vehicles.
   77         (d) An insurer must notify the office of any changes to
   78  rates for type of insurance described in this subsection no
   79  later than 30 days after the effective date of the change. The
   80  notice shall include the name of the insurer, the type or kind
   81  of insurance subject to rate change, total premium written
   82  during the immediately preceding year by the insurer for the
   83  type or kind of insurance subject to the rate change, and the
   84  average statewide percentage change in rates. Actuarial data
   85  with regard to rates for risks Underwriting files, premiums,
   86  losses, and expense statistics for the type of insurance
   87  described in this subsection shall be maintained by the insurer
   88  for 2 years after the effective date of changes to rates and are
   89  subject to examination by the office. The office may require an
   90  insurer to pay the costs associated with an examination. Upon
   91  examination, the office shall, in accordance with generally
   92  accepted and reasonable actuarial techniques, consider the
   93  factors in paragraphs (2)(a)–(l) and apply subsections (3)-(8)
   94  to determine if the rate is excessive, inadequate, or unfairly
   95  discriminatory.
   96         (e) A rating organization must notify the office of any
   97  changes to loss cost for the type of insurance described in this
   98  subsection no later than 30 days after the effective date of the
   99  change. The notice shall include the name of the rating
  100  organization, the type or kind of insurance subject to a loss
  101  cost change, loss costs during the immediately preceding year
  102  for the type or kind of insurance subject to the loss cost
  103  change, and the average statewide percentage change in loss
  104  cost. Actuarial data Loss and exposure statistics with regard to
  105  changes to loss cost for risks applicable to loss costs for a
  106  rating organization not subject to subsection (1), subsection
  107  (2), or subsection (9) shall be maintained by the rating
  108  organization for 2 years after the effective date of the change
  109  and are subject to examination by the office. The office may
  110  require the rating organization to pay the costs associated with
  111  an examination. Upon examination,
  112  
  113  ================= T I T L E  A M E N D M E N T ================
  114         And the title is amended as follows:
  115         Delete lines 8 - 17
  116  and insert:
  117         regarding rate changes; requiring such entities to pay
  118         certain examination costs; deleting a provision that
  119         permits the Office of Insurance Regulation of the
  120         Financial Services Commission to require such insurers
  121         to provide certain information regarding rates at the
  122         insurer’s expense; requiring such entities to pay
  123         certain examination costs; amending s. 627.0651, F.S.;
  124         exempting certain commercial motor vehicle insurance
  125         from specific rate standards and filing requirements;
  126         revising certain reporting and recordkeeping
  127         requirements for such exempt insurers and certain
  128         rating organizations regarding rate changes; requiring
  129         such entities to pay certain examination costs;
  130         deleting