Rule Hearing: Rule 69O-186.013, Title Insurance Statistical Gathering
Dec 7, 2006
The Florida Office of Insurance Regulation (Office) conducted a public hearing regarding proposed Rule 69O-186.013, Title Insurance Statistical Gathering, on October 31, 2006. The Rule implements the provisions of Section 627.782, Fla. Stat., and requires that title agencies and insurers submit certain statistical data to the Office on an annual basis. Pursuant to the Rule, the Office will use the submitted data to establish title insurance rates, retention rates, limitations on related title services and the general condition of the title insurance industry.
The Rule requires every licensed title insurance agency and title insurer to electronically submit certain forms by June 1, 2007, and each year thereafter. These forms will include data for the prior year ending December 31. All submissions are to be made via the Office’s I-File System (https://iportal.fldfs.com) under the category Informational Filings.
Title agencies must submit forms OIR-B1-1682 (“Agent Cover Letter”) and OIR-B1-1683 (“Agent Data Call). Title insurers must submit forms OIR-B1-1684 (“Insurer Cover Letter”) and OIR-B1-1685 (“Insurer Data Call”). A copy of the Agent Data Call form is attached.
Several speakers expressed concerns about the Rule at the public hearing:
* In many cases, title agencies do not track the information that the Office is requesting. Agencies will be forced in those cases to provide estimates, which makes the data submission less accurate and, therefore, less reliable as the basis for future decisions on future insurance rates.
* In that same vein, speakers questioned the Office’s plan to manage and process the submitted data. Suggestions in this regard included employing statistical models, expanding the length of the data cycles and avoiding the aggregation of data.
* The system of allocating expenses is difficult to understand and, in many cases, requests information that is generally contained in an agency’s financial statements. Moreover, speakers objected to the “ridiculous” nature of some of the allocation categories.
* The Office appears to be requesting more data that is necessary. Speakers pointed that unlike their larger counterparts, smaller agencies do not have resources to devote to the collection of massive amounts of data.
* Speakers also recommended that the Office appoint one person to supervise and administer the rule on behalf of the Office and the Department of Financial Services. Such an appointment could help to streamline the process.
The Office responded to the public’s comments, emphasizing that one of the goals of the Rule is to ensure that title agencies are properly allocating expenses. The Office noted that title agencies do not currently provide information at regular intervals and that the Rule will remedy that lack of steady information.
We have attached a copy of the most current draft of proposed Rule 69O-186.013 for your review.
Should you have any questions or concerns regarding this proposed Rule, please do not hesitate to contact this office.