Current through Reg. 50, No. 187; September 24, 2024
(1)
(a) This rule applies to each insurer or
rating organization subject to Section
627.0645, F.S.
(b)
1.
Commercial Multiple Line insurance, for purposes of this rule, is defined as
insurance that includes a combination of one or more property lines of
insurance, e.g., fire and allied lines, and one or more casualty lines of
insurance, e.g., general liability, burglary and theft.
2. Commercial Multiple Line insurance shall
be interpreted as being the same as Commercial Multiple Peril
insurance.
3. Commercial Multiple
Line insurance or Commercial Multiple Peril insurance which is written on an
indivisible premium basis is subject to this rule.
4. Divisible premium Commercial Multiple
Peril policies shall not be subject to this rule.
(c) A base rate filing considers the overall
rate level and individual components of a line or subline being reviewed,
although all are not necessarily revised in a base rate filing. A base rate
filing may include, for example, a package modification factor.
(d) For purposes of identifying filings
submitted to the Office, a line of business shall be identified by one of the
following, although additional identification may be used as needed:
1. Commercial Multiple Peril Policy (with
indivisible premium),
2. Dwelling
Fire and Liability,
3.
Homeowners,
4. Mobile
Homeowners,
5. Motor Home and
Motorcycle,
6. Personal Inland
Marine,
7. Personal Liability;
and,
8. Private Passenger
Automobile.
(2)
Each insurer or each rating organization filing rates for one or more insurers
shall make annual base rate filings with the Office for each line or subline of
insurance no later than 12 months after its previous certification or base rate
filing effective date for new business.
(3)
(a)
Filings shall be submitted in accordance with the requirements of this rule.
1. Filings submitted in accordance with
paragraph (4)(a), below, shall demonstrate that the rates filed are not
excessive, inadequate, or unfairly discriminatory, and
2. Filings submitted in accordance with
paragraph (4)(b), below, shall demonstrate that the rates are actuarially sound
and not inadequate.
(b)
1. The filings required by this rule shall be
on an individual insurer basis unless the rates for insurers within a group are
derived from the pooled experience of those insurers.
2. If the rates for more than one insurer
within a group are derived from pooled experience, then the filing may be made
on a multiple insurer basis but the cover letter for the filing shall
explicitly state what the rates are and what insurers are included in the
group. Insurers may submit a filing on behalf of any combination of insurers
within the insurers' group, provided the effective dates are identical for
every insurer and program identified in the filing.
(c)
1. The
insurer shall submit all filings to the Office at
https://iportal.fldfs.com, the
industry portal to the Office's I-File System, as adopted in Rule
69O-170.0155, F.A.C.
2. A filing shall be considered received by
the Office on business days between the hours of 8:00 a.m. and 5:00 p.m.
eastern time. Filings received after 5:00 p.m. shall be considered to be
received the next business day.
(4) The filing required by this rule shall be
satisfied by either paragraph (a) or (b), below:
(a) A rate filing prepared by or under the
direct supervision of an actuary. The filing shall be signed by the actuary and
shall contain documentation demonstrating that the proposed rates are not
excessive, inadequate, or unfairly discriminatory, and be submitted pursuant to
Rule 69O-170.013, F.A.C.
(b)
1. If
no rate change is proposed, a filing which consists of a certification by an
actuary that the existing rate level produces rates which are actuarially sound
and which are not inadequate.
2.
Form OIR-B1-582, "Universal Standardized Data Letter," as adopted in Rule
69O-170.0155, F.A.C.
3. Form OIR-B1-586, "Florida Property and
Casualty - Annual Rate Filings Certification," as adopted in Rule
69O-170.0155, F.A.C.
4. The data shall be on a direct
basis.
(c) If an insurer
does not employ or otherwise retain the services of an actuary, as defined by
Section 627.0645(8),
F.S., the filing under paragraph (a) or (b), above, shall:
1. Be prepared by a person meeting the
requirements of Section
627.0645(5),
F.S., herein referred to as a qualified ratemaker.
2. Be reviewed and signed by an employee of
the insurer who is authorized to approve rate filings.
3. Include detailed information on the
preparer's experience to demonstrate compliance with Section
627.0645(5),
F.S.
4. Include a certification of
an officer of the insurer that the insurer does not employ or otherwise retain
the services of an actuary.
5. If
the submission does not contain the material required by this paragraph (c), it
will result in the Office's issuance of a Notice of Intent to
disapprove.
(d)
1. For purposes of this rule, a prospective
loss cost filing, using the most recently approved loss costs, submitted to the
Office by a duly authorized rating organization, may be considered as part of a
base rate filing.
2. The factors
for converting loss costs to rates shall be filed by the submitting insurer and
approved by the Office.
3. All
deviations from a rating or advisory organization's loss costs are to be
certified or adequately supported.
4. An insurer may choose:
a. To file and distribute final rate
pages,
b. To file or reference loss
cost pages filed and distributed by a rating organization, or
c. To file loss cost pages distributed by an
advisory organization plus the insurer's factors used to convert the
prospective loss costs to rates.
5. An insurer shall use Form OIR-B1-583,
"Florida Expense Supplement Calculation of Insurer Loss Cost Multiplier," as
adopted in Rule 69O-170.0155, F.A.C., in filing
the factors to convert a rating or advisory organization's prospective loss
costs to rates and shall comply with Rule
69O-170.013,
F.A.C.
(e)
1. A request for exemption pursuant to
Section 627.0645(2)(b),
F.S., shall include Form OIR-B1-584, "Florida Property and Casualty - Annual
Rate Filing-Exemption," as adopted in Rule
69O-170.0155, F.A.C. and shall
be submitted through
https://iportal.fldfs.com.
2. The exemption shall remain in effect for
as long as there is not an increase in premium
volume.
(5) A
request for extension meeting the conditions of Section
627.0645(6),
F.S., will be approved automatically upon receipt.
Rulemaking Authority 624.308, 624.424(1)(c) FS. Law
Implemented 624.307, 624.418(2), 624.4211, 624.424(1)(c), 627.021, 627.062,
627.0645, 627.0651, 627.221, 627.301
FS.
New 12-25-90, Formerly 4-72.007, Amended 1-27-92, 3-9-93,
9-7-93, 12-17-00, Formerly 4-170.009, Amended 9-5-07,
7-30-17.