Office of Insurance Regulation re Property and Casualty JUA 8/28/06
Jan 14, 2007
Today the Office of Insurance Regulation work-shopped a draft of a proposed rule that will govern the newly reactivated Property and Casualty Joint Underwriting Association. The OIR previously issued an emergency rule that will be in effect in the interim.
Although a draft of the proposed rule is not available on OIR’s website, the draft circulated today is substantially similar to the emergency rule that was recently approved by the Financial Services Commission. Several representatives of the insurance industry offered suggestions to clarify the language contained in the draft rule, including amendments to the definitions, the assessment and recoupment portions of the rule, the reporting requirements section of the rule, and the rating portion of the rule. Additionally, representatives of reinsurers repeatedly stated that they did not believe that the JUA has the authority to write reinsurance, and stated that it appears that the rule would allow the JUA to do so. OIR’s counsel responded to this assertion by stating that that Florida law did not specifically prohibit the JUA from writing reinsurance.
OIR expects to publish an updated version of the rule by this coming Thursday. We will distribute an updated copy of the rule upon receipt. Once OIR publishes the revised rule it will conduct another workshop to gather further input.
Should you have any questions or concerns please feel free to contact this office.
Regards,
Fred E. Karlinsky