SBA To File Emergency Rule Effecting HB 1495 TICL Changes
May 4, 2009
At the Florida Cabinet meeting scheduled for May 13, 2009, the Florida State Board of Administration (“SBA”) agenda will include a request for approval by the Florida Hurricane Catastrophe Fund (“FHCF”) to file Emergency Rule 19ER09-1, Reimbursement Contract and its attendant forms for adoption upon the recently-passed CS3-HB 1495 becoming law.
With an effective date of June 1, 2009, and the FHCF contract year beginning at the same time, the Emergency Rule is deemed necessary to implement legislative changes in the FHCF’s Temporary Increase in Coverage Limits layer of coverage.
If Florida Governor Charlie Crist were to veto the bill, the Rule would not be needed. However, a veto is not anticipated.
At the May 13 Cabinet Meeting, the FHCF also will request the authority to file a Notice of Proposed Rulemaking to amend Rule 19-8.010, F.A.C., Reimbursement Contract, to incorporate those changes made in Emergency Rule 19ER09-1 once it has been filed and becomes effective.
To view the May 13 Cabinet and SBA agenda, click here.
Florida Office of Insurance Regulation May 13 Cabinet Agenda
The May 13 Cabinet meeting also includes the following Florida Office of Insurance Regulation (“OIR”) agenda items:
Request for Approval for Adoption of Proposed Rule 69O-175.008; Not-at-Fault Accidents. Section 626.9541(1)(o)3.a., F.S., provides that an insurer may not impose additional premium on a motor vehicle policy because the insured was in a collision, unless the insurer determines the insured was substantially at fault in the collision. This Rule clarifies that the law applies to both existing insureds (from having their existing premium raised) and new insureds (from having their initial premium higher than it would otherwise be).
Request for Approval for Adoption of Proposed Rule 69O-138.005; Exams by Non-Employees. Section 624.316, F.S., and other sections of Florida’s Insurance Code require the OIR to examine licensees for compliance with State regulations. These examinations can be performed by OIR employees, or can be performed by outside contractors. In 2007, the Florida Legislature changed Subsection 624.316(2)(e), F.S., concerning the examinations performed by contractors by taking away an insurance company’s role in negotiating the contract with outside contractors. Subsection 624.316(2)(e), F.S., further states that the Commission shall adopt rules providing that an examination of an insurer may be conducted by independent (non-employee) certified public accountants, actuaries, investment specialists, information technology specialists, and reinsurance specialists meeting criteria specified by rule. The Legislature also set forth specific criteria for the selection of a contractor in order to make sure that consumers are safe from potential conflicts of interest between examiners and insurance companies. The subsection also requires that the rates charged by outside contractors must be consistent with rates charged in the industry. This Rule implements this subsection by setting criteria for the specialists, establishing an application process, and the manner by which contractors are compensated.
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