OIR May 26 Rule Workshop Report: Standardized Requirements Applicable to Insurers After Hurricanes or Natural Disasters
May 26, 2009
Today, May 26, 2009, the Florida Office of Insurance Regulation (“OIR”) held a workshop on proposed Rule 690-142.015, entitled Standardized Requirements Applicable to Insurers After Hurricanes or Natural Disasters.
OIR Assistant General Counsel Steve Fredrickson presided over the workshop. As its title suggests, the proposed Rule adopts standardized requirements that may be applied to insurers as a consequence of natural disasters. Mr. Fredrickson briefly explained the proposed Rule and moved directly into public comments.
Among those who offered input at the workshop, a State Farm Insurance Company representative expressed some concerns with the proposed Rule, primarily that it is duplicative. Mr. Fredrickson noted that the amendments under consideration do not expand, but rather, clarify current law by demonstrating that, based on unique facts and circumstances (i.e.: non-hurricane disasters), the OIR can require additional disaster-related information not otherwise requested by the Rule-related Form OIR-DO-1681.
Further, the State Farm representative asked about whether there were any substantive changes to the form. OIR officials noted that the changes to Form 1681 are mostly cosmetic, with the exception of those amendments related to flood reporting requirements.
OIR officials encouraged interested parties to thoroughly review Form OIR-DO-1681 for any other changes that may be substantive. To view a copy of the Form, click here.
Other industry representatives who spoke at the workshop were concerned that the flood data reporting requirements are irrelevant and duplicative based on information that is required at the federal level. OIR officials noted that the requirements were based on National Association of Insurance Commissioners models; so therefore, the information should be uniform.
A representative from Citizens Property Insurance Corporation (“Citizens”) also testified about the Form, noting that its aggregate reporting is duplicative and suggesting that this requirement be removed. The OIR officials stated that the claim-level data will not be required for every event, but should be included in the event it becomes necessary. The Citizens representative also suggested that reporting requirements for commercial residential properties be defined more specifically.
An Allstate representative addressed concerns about the ability to receive data in a streamlined fashion. The OIR indicated that its staff would be available to ensure claims data is adequately received.
Other insurance industry representatives addressed issues relating to public information and its applicability to publicly-traded companies, data submission, and the disclosure of specific claim and policy numbers. The OIR officials indicated they would work to keep private information private and that these concerns would be factored in the rulemaking process.
A copy of the draft Rule may be viewed by clicking here. A copy of the workshop agenda is attached for your review.
The record will remain open until Friday, May 29, 2009 for written comments. Next, if there are no substantive changes to the proposed Rule, a request for its publication will be submitted to the Florida Financial Services Commission for approval.
Should you have any comments or concerns, please contact Colodny Fass.
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