Bill Amendment: FL H0635 | 2013 | Regular Session

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: Insurance

Status: 2013-05-03 - Died in returning Messages, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [H0635 Detail]

Download: Florida-2013-H0635-Senate_Floor_Amendment_800292.html

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       Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 635, 1st Eng.
       
       
       
       
       
       
                                Barcode 800292                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 8/AD/3R         .                                
             05/01/2013 01:49 PM       .                                
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       Senator Simmons moved the following:
       
    1         Senate Amendment (with directory and title amendments)
    2  
    3         Between lines 1186 and 1187
    4  insert:
    5         (3)
    6         (d)1. The following categories or kinds of insurance and
    7  types of commercial lines risks are not subject to paragraph
    8  (2)(a) or paragraph (2)(f):
    9         a. Excess or umbrella.
   10         b. Surety and fidelity.
   11         c. Boiler and machinery and leakage and fire extinguishing
   12  equipment.
   13         d. Errors and omissions.
   14         e. Directors and officers, employment practices, fiduciary
   15  liability, and management liability.
   16         f. Intellectual property and patent infringement liability.
   17         g. Advertising injury and Internet liability insurance.
   18         h. Property risks rated under a highly protected risks
   19  rating plan.
   20         i. General liability.
   21         j. Nonresidential property, except for collateral
   22  protection insurance as defined in s. 624.6085.
   23         k. Nonresidential multiperil.
   24         l. Excess property.
   25         m. Burglary and theft.
   26         n. Medical malpractice for a facility that is not a
   27  hospital licensed under chapter 395, a nursing home licensed
   28  under part II of chapter 400, or an assisted living facility
   29  licensed under part I of chapter 429.
   30         o. Medical malpractice for a health care practitioner who
   31  is not a dentist licensed under chapter 466, a physician
   32  licensed under chapter 458, an osteopathic physician licensed
   33  under chapter 459, a chiropractic physician licensed under
   34  chapter 460, a podiatric physician licensed under chapter 461, a
   35  pharmacist licensed under chapter 465, or a pharmacy technician
   36  registered under chapter 465.
   37         p.n. Any other commercial lines categories or kinds of
   38  insurance or types of commercial lines risks that the office
   39  determines should not be subject to paragraph (2)(a) or
   40  paragraph (2)(f) because of the existence of a competitive
   41  market for such insurance, similarity of such insurance to other
   42  categories or kinds of insurance not subject to paragraph (2)(a)
   43  or paragraph (2)(f), or to improve the general operational
   44  efficiency of the office.
   45         2. Insurers or rating organizations shall establish and use
   46  rates, rating schedules, or rating manuals to allow the insurer
   47  a reasonable rate of return on insurance and risks described in
   48  subparagraph 1. which are written in this state.
   49         3. An insurer shall must notify the office of any changes
   50  to rates for insurance and risks described in subparagraph 1.
   51  within 30 days after the effective date of the change. The
   52  notice must include the name of the insurer, the type or kind of
   53  insurance subject to rate change, total premium written during
   54  the immediately preceding year by the insurer for the type or
   55  kind of insurance subject to the rate change, and the average
   56  statewide percentage change in rates. Actuarial data
   57  Underwriting files, premiums, losses, and expense statistics
   58  with regard to rates for such insurance and risks written by an
   59  insurer must be maintained by the insurer for 3 years after the
   60  effective date of changes to those rates and are subject to
   61  examination by the office. The office may require the insurer to
   62  incur the costs associated with an examination. Upon
   63  examination, the office, in accordance with generally accepted
   64  and reasonable actuarial techniques, shall consider the rate
   65  factors in paragraphs (2)(b), (c), and (d) and the standards in
   66  paragraph (2)(e) to determine if the rate is excessive,
   67  inadequate, or unfairly discriminatory.
   68         4. A rating organization shall must notify the office of
   69  any changes to loss cost for insurance and risks described in
   70  subparagraph 1. within 30 days after the effective date of the
   71  change. The notice must include the name of the rating
   72  organization, the type or kind of insurance subject to a loss
   73  cost change, loss costs during the immediately preceding year
   74  for the type or kind of insurance subject to the loss cost
   75  change, and the average statewide percentage change in loss
   76  cost. Actuarial data with regard to changes to loss cost for
   77  risks not subject to paragraph (2)(a) or paragraph (2)(f) must
   78  be maintained by the rating organization for 2 years after the
   79  effective date of the change and are subject to examination by
   80  the office. The office may require the rating organization to
   81  incur the costs associated with an examination. Upon
   82  examination, the office, in accordance with generally accepted
   83  and reasonable actuarial techniques, shall consider the rate
   84  factors in paragraphs (2)(b)-(d) and the standards in paragraph
   85  (2)(e) to determine if the rate is excessive, inadequate, or
   86  unfairly discriminatory.
   87         Section 27. If SB 468 or similar legislation is adopted in
   88  the same legislative session and becomes law, effective July 2,
   89  2013, paragraph (d) of subsection (3) of section 627.062,
   90  Florida Statutes, as amended by SB 468 or similar legislation,
   91  is amended to read:
   92         627.062 Rate standards.—
   93         (3)
   94         (d)1. The following categories or kinds of insurance and
   95  types of commercial lines risks are not subject to paragraph
   96  (2)(a) or paragraph (2)(f):
   97         a. Excess or umbrella.
   98         b. Surety and fidelity.
   99         c. Boiler and machinery and leakage and fire extinguishing
  100  equipment.
  101         d. Errors and omissions.
  102         e. Directors and officers, employment practices, fiduciary
  103  liability, and management liability.
  104         f. Intellectual property and patent infringement liability.
  105         g. Advertising injury and Internet liability insurance.
  106         h. Property risks rated under a highly protected risks
  107  rating plan.
  108         i. General liability.
  109         j. Nonresidential property, except for collateral
  110  protection insurance as defined in s. 624.6085.
  111         k. Nonresidential multiperil.
  112         l. Excess property.
  113         m. Burglary and theft.
  114         n. Medical malpractice for a facility that is not a
  115  hospital licensed under chapter 395, a nursing home licensed
  116  under part II of chapter 400, or an assisted living facility
  117  licensed under part I of chapter 429.
  118         o. Medical malpractice for a health care practitioner who
  119  is not a dentist licensed under chapter 466, a physician
  120  licensed under chapter 458, an osteopathic physician licensed
  121  under chapter 459, a chiropractic physician licensed under
  122  chapter 460, a podiatric physician licensed under chapter 461, a
  123  pharmacist licensed under chapter 465, or a pharmacy technician
  124  registered under chapter 465.
  125         p. Any other commercial lines categories or kinds of
  126  insurance or types of commercial lines risks that the office
  127  determines should not be subject to paragraph (2)(a) or
  128  paragraph (2)(f) because of the existence of a competitive
  129  market for such insurance, similarity of such insurance to other
  130  categories or kinds of insurance not subject to paragraph (2)(a)
  131  or paragraph (2)(f), or to improve the general operational
  132  efficiency of the office.
  133         2. Insurers or rating organizations shall establish and use
  134  rates, rating schedules, or rating manuals to allow the insurer
  135  a reasonable rate of return on insurance and risks described in
  136  subparagraph 1. which are written in this state.
  137         3. An insurer shall notify the office of any changes to
  138  rates for insurance and risks described in subparagraph 1.
  139  within 30 days after the effective date of the change. The
  140  notice must include the name of the insurer, the type or kind of
  141  insurance subject to rate change, total premium written during
  142  the immediately preceding year by the insurer for the type or
  143  kind of insurance subject to the rate change, and the average
  144  statewide percentage change in rates. Actuarial data with regard
  145  to rates for such risks must be maintained by the insurer for 3
  146  2 years after the effective date of changes to those rates and
  147  are subject to examination by the office. The office may require
  148  the insurer to incur the costs associated with an examination.
  149  Upon examination, the office, in accordance with generally
  150  accepted and reasonable actuarial techniques, shall consider the
  151  rate factors in paragraphs (2)(b), (c), and (d) and the
  152  standards in paragraph (2)(e) to determine if the rate is
  153  excessive, inadequate, or unfairly discriminatory.
  154         4. A rating organization shall notify the office of any
  155  changes to loss cost for insurance and risks described in
  156  subparagraph 1. within 30 days after the effective date of the
  157  change. The notice must include the name of the rating
  158  organization, the type or kind of insurance subject to a loss
  159  cost change, loss costs during the immediately preceding year
  160  for the type or kind of insurance subject to the loss cost
  161  change, and the average statewide percentage change in loss
  162  cost. Actuarial data with regard to changes to loss cost for
  163  risks not subject to paragraph (2)(a) or paragraph (2)(f) must
  164  be maintained by the rating organization for 2 years after the
  165  effective date of the change and are subject to examination by
  166  the office. The office may require the rating organization to
  167  incur the costs associated with an examination. Upon
  168  examination, the office, in accordance with generally accepted
  169  and reasonable actuarial techniques, shall consider the rate
  170  factors in paragraphs (2)(b)-(d) and the standards in paragraph
  171  (2)(e) to determine if the rate is excessive, inadequate, or
  172  unfairly discriminatory.
  173  
  174  ====== D I R E C T O R Y  C L A U S E  A M E N D M E N T ======
  175         And the directory clause is amended as follows:
  176         Delete lines 1135 - 1136
  177  and insert:
  178         Section 26. Paragraph (b) of subsection (2) and paragraph
  179  (d) of subsection (3) of section 627.062, Florida Statutes, are
  180  amended to read:
  181  
  182  ================= T I T L E  A M E N D M E N T ================
  183         And the title is amended as follows:
  184         Delete line 105
  185  and insert:
  186         or unfairly discriminatory; revising provisions
  187         relating to requirements for maintaining and examining
  188         actuarial data with regard to rate changes; amending
  189         s. 627.0628,