Current through Reg. 50, No. 187; September 24, 2024
(1) Scope and
Purpose. This rule provides implementation procedures and Office policy
regarding section 624.430, F.S.
(2) Definitions.
(a) "Office" refers to the Office of
Insurance Regulation.
(b) "Reduce
presence in Florida," "Reduce," and "Reduction," as used in this rule, are
inclusive terms meant to collectively refer to any and all of the following
actions as may be desired or taken by an insurer: to surrender its Florida
certificate of authority; to withdraw from Florida; or to discontinue the
writing of any one or multiple lines or kinds of insurance in
Florida.
(c) "Kinds" of insurance,
as used in section 624.430, F.S., and this rule,
includes the kinds set out in section
624.6011, F.S., which kinds of
insurance are as follows: Life; Health; Property; Casualty; Surety; Marine; and
Title.
(d) "Lines of insurance," as
used in section 624.430, F.S., and this rule, is
as defined in section
624.6012, F.S. Pursuant to the
express rulemaking authority given the Office in section
624.6012, F.S., for the purpose
of implementation of section
624.430, F.S., the Office
determines each of the following to be a line of insurance (in addition to
lines of insurance as may be elsewhere established by rule of the Office):
Homeowners property insurance; mobile homeowners property insurance; condo unit
owners contents insurance; renter's/dwellers contents insurance; and
residential condominium association property coverages.
(3) Actions Having the Substantial Effect of
a Withdrawal or Discontinuance of Writing Insurance in this State. Reductions
subject to section 624.430, F.S., include any
action or actions the reasonably foreseeable substantial effect of which is, or
will be when the action is completed, to have discontinued the writing of a
kind or line of insurance or to have withdrawn from Florida. "Substantial
effect" means that, for example, the continuance of a token amount of writing
in Florida will not prevent a conclusion that a reduction subject to section
624.430, F.S., has or will
occur. Furthermore, it is not determinative of the existence of a reduction
requiring notice under section
624.430, F.S., that the action
is taken in a single step, or by a series of steps over time, if the reasonably
foreseeable effect of the action or actions is or will to be to have
substantially effected a reduction. The application of section
624.430, F.S., does not depend
upon the insurer's subjective statement of desire or intent as to the effect of
its actions.
(4) The Office
interprets the requirement of notice as authorizing the Office to prohibit the
withdrawal, surrender, or discontinuance of writing, when such withdrawal,
surrender, or discontinuance of writing is done in violation of any law or
rule.
(5) Notice to Precede Action
to Reduce Presence in Florida. An insurer shall take no action in furtherance
of a reduction, prior to the expiration of 90 days after the receipt by the
Office of the notice required by section
624.430, F.S. Prohibited actions
include sending any notice of cancellation of termination, or notice of intent
to cancel or terminate, to any policyholder, agent, managing general agent,
reinsurer, or other person or entity.
(6) Procedure for Providing Notice of
Reduction.
(a) Format of Notice. The notice
required under section
624.430(1),
F.S., shall be in the form of a letter, on the letterhead of the insurer, dated
and signed by an officer of the insurer. The letter shall begin with the
following language after the salutation: "This constitutes the notice required
by section 624.430, F.S., of this insurer's
desire to _____," where the blank space is filled in as applicable with
"surrender its certificate of authority," or "withdraw from the state," or
"discontinue writing one or more lines of insurance."
(b) Copies. The notice shall consist of an
original and two complete copies of the notice and all attachments.
(c) Designated Filing Office. The letter of
notice with the two copies shall be addressed to and delivered by certified or
registered mail to the following address: Insurance Commissioner, Office of
Insurance Regulation, 200 East Gaines Street, Tallahassee, FL 32399-0326. There
shall be no constructive receipt of the notice by the above-designated filing
office, other than upon receipt by the Office's mail room in the usual course
of business, of a properly addressed notice by U.S. mail. The 90 days shall not
begin to run until a properly addressed notice, in a form substantially
complying with this rule, is received by the Office, by U.S. mail.
(d) Incomplete Notices; Notices Not in Proper
Format. Notices that are incomplete or not in proper format shall be summarily
returned and are not effective as notice under section
624.430, F.S.
(e) Contents of Notice.
1. If the notice is of discontinuance of
writing one or more lines in this state, it shall specify the lines to be
discontinued.
2. The notice shall
specify the desired timetable of events related to the desired
reduction.
3. The notice shall
specify in detail the reason for the proposed action.
4. Insurers shall also provide the Office
with the following information in the notice:
a. A listing of all lines of insurance the
insurer then has in force in Florida which will be affected by the reduction,
and for each line, a statement of the approximate number of policies and
dollars of premium then in force in Florida and which will be affected by the
desired reduction.
b. A description
of what notice and treatment will be given by the insurer to its affected
Florida policyholders concerning the reduction; and what steps will be taken by
the insurer regarding processing of any outstanding covered claims of such
policyholders while and after the insurer accomplishes its reduction.
c. A description of projected impact of the
reduction upon the insurer's Florida agent and agency force, if any. In
addition to any other information related to the impact on agents, the insurer
shall state the number of affected agents and give a brief description of what
they are being told.
d. A
description of any reduction or discontinuation of writings in any other state
or states.
(7) Office Action Upon Receipt of Notice.
(a) Subsequent to receiving the initial
filing, the Office will request the insurer to provide further information, or
will conduct such other investigation as is necessary to determine whether the
initial information provided is accurate and whether the proposed action will
have the effects projected by the insurer.
(b) The Office shall inform the insurer if
the proposed reduction would be in violation of, or cause a violation of, any
provision of the Insurance Code or rule of the Office. Within 5 calendar days
of the date of such notice, the insurer shall file with the Office a response
indicating whether it will proceed to implement the
reduction.
(8)
Notwithstanding rule 69O-167.001, F.A.C., when an
insurer withdraws from a line of business resulting in the cancellation of
residential property insurance policies, the insurer must return to the
insured, within fifteen (15) working days of the postmark date of the
cancellation notice, the gross unearned premium corresponding to coverage
beyond the effective date of the cancellation.
Rulemaking Authority 624.308(1), 624.6012 FS. Law
Implemented 624.307(1), 624.430, 624.6011, 624.6012
FS.
New 1-8-96, Amended 5-26-96, Formerly 4-141.020, Amended
9-14-06.
