Florida Senate - 2018                                     SB 410
       By Senator Farmer
       34-00150-18                                            2018410__
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle insurance rates;
    3         amending s. 627.0651, F.S.; providing that the use of
    4         a United States Postal Service zip code or a
    5         combination of zip codes as a rating territory for
    6         motor vehicle insurance rates is deemed unfairly
    7         discriminatory; providing an effective date.
    9  Be It Enacted by the Legislature of the State of Florida:
   11         Section 1. Subsection (8) of section 627.0651, Florida
   12  Statutes, is amended to read:
   13         627.0651 Making and use of rates for motor vehicle
   14  insurance.—
   15         (8) Rates are not unfairly discriminatory if averaged
   16  broadly among members of a group; nor are rates unfairly
   17  discriminatory even though they are lower than rates for
   18  nonmembers of the group. However, such rates are unfairly
   19  discriminatory if they are not actuarially measurable and
   20  credible and sufficiently related to actual or expected loss and
   21  expense experience of the group so as to assure that nonmembers
   22  of the group are not unfairly discriminated against. The use of
   23  a single United States Postal Service zip code or a combination
   24  of zip codes as a rating territory is shall be deemed unfairly
   25  discriminatory unless filed pursuant to paragraph (1)(a) and the
   26  justification for its rate incorporates sufficient actual or
   27  expected loss and loss adjustment expense experience so as to be
   28  actuarially sound. The office shall require that any rate filing
   29  resulting from the use of a single zip code as a rating
   30  territory does not contain a rate or rate change that is
   31  excessive, inadequate, or unfairly discriminatory.
   32         Section 2. This act shall take effect July 1, 2018.