Bill Text: FL S0916 | 2015 | Regular Session | Comm Sub

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Bill Title: Commercial Insurer Rate Filing Procedures

Spectrum: Bipartisan Bill

Status: (Failed) 2015-04-28 - Died in Messages, companion bill(s) passed, see CS/CS/CS/HB 165 (Ch. 2015-135) [S0916 Detail]

Download: Florida-2015-S0916-Comm_Sub.html

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       Florida Senate - 2015                              CS for SB 916
       
       
        
       By the Committee on Banking and Insurance; and Senator Montford
       
       
       
       
       
       597-02118-15                                           2015916c1
    1                        A bill to be entitled                      
    2         An act relating to commercial insurer rate filing
    3         procedures; amending s. 627.062, F.S.; restricting to
    4         certain property rate filings a requirement that the
    5         chief executive officer or chief financial officer and
    6         chief actuary of a property insurer certify the
    7         information contained in a rate filing; amending s.
    8         627.0645, F.S.; exempting commercial nonresidential
    9         multiperil insurance from annual base rate filing;
   10         providing an effective date.
   11          
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Paragraph (a) of subsection (8) of section
   15  627.062, Florida Statutes, is amended to read:
   16         627.062 Rate standards.—
   17  (8)(a) The chief executive officer or chief financial officer of
   18  a property insurer and the chief actuary of a property insurer
   19  must certify under oath and subject to the penalty of perjury,
   20  on a form approved by the commission, the following information,
   21  which must accompany a property rate filing subject to paragraph
   22  (2)(a):
   23         1. The signing officer and actuary have reviewed the rate
   24  filing;
   25         2. Based on the signing officer’s and actuary’s knowledge,
   26  the rate filing does not contain any untrue statement of a
   27  material fact or omit to state a material fact necessary to make
   28  the statements made, in light of the circumstances under which
   29  such statements were made, not misleading;
   30         3. Based on the signing officer’s and actuary’s knowledge,
   31  the information and other factors described in paragraph (2)(b),
   32  including, but not limited to, investment income, fairly present
   33  in all material respects the basis of the rate filing for the
   34  periods presented in the filing; and
   35         4. Based on the signing officer’s and actuary’s knowledge,
   36  the rate filing reflects all premium savings that are reasonably
   37  expected to result from legislative enactments and are in
   38  accordance with generally accepted and reasonable actuarial
   39  techniques.
   40         Section 2. Subsection (1) of section 627.0645, Florida
   41  Statutes, is amended to read:
   42         627.0645 Annual filings.—
   43         (1) Each rating organization filing rates for, and each
   44  insurer writing, any line of property or casualty insurance to
   45  which this part applies, except:
   46         (a) Workers’ compensation and employer’s liability
   47  insurance; or
   48         (b) Commercial property and casualty Insurance as defined
   49  in ss. 624.604 and 624.605, but limited to coverage of
   50  commercial risks s. 627.0625(1) other than commercial
   51  residential multiperil multiple line and commercial motor
   52  vehicle,
   53  
   54  shall make an annual base rate filing for each such line with
   55  the office no later than 12 months after its previous base rate
   56  filing, demonstrating that its rates are not inadequate.
   57         Section 3. This act shall take effect July 1, 2015.