Current through Reg. 50, No. 187; September 24, 2024
(1)
(a)
This rule shall apply to all homeowners insurance rates filed pursuant to
Section 627.062, F.S.
(b) For purposes of this rule, reference to
homeowners insurance shall include mobile homeowners insurance written on
homeowners type policies and mobile homeowners insurance written on auto
physical damage type policies.
(c)
The information required by this rule shall be included as a required component
of the filing made pursuant to subsection
69O-170.013(3),
F.A.C.
(2) Filing
Submittal Requirements:
(a) Each insurer
shall file electronically the information required by the I-File System and the
Homeowners' Rate Collection System (HRCS) as adopted in Rule
69O-170.0155, F.A.C., at
http://www.floir.com/iportal.
(b)
Required supporting documentation referenced in the I-File System and HRCS
shall be provided.
(c) Accurate
entry of information into the rate indications workbook component of the I-File
System will result in an aggregate average statewide rate indication. The
accuracy and integrity of the information provided shall be the responsibility
of the insurer.
(3) The
information identified in subsections (4) through (9) below is submitted within
the I-File System and HRCS collection indicated in subparagraph (2)(a)1.
above.
(4)
(a) Each rate filing shall contain either:
1. Separate rate level indications and
support for such indications on a statewide basis for each type of homeowners
policy which the insurer writes in Florida; or
2. If a series of homeowner types of policies
bear a uniform statewide factor relationship to each other, combined rate level
indications and support for such indications on a statewide basis for the total
program along with supporting data for the proposed factor relationships
between each type of policy.
(b)
1. The
provisions of this subsection shall apply to all rate filings regardless of
whether a filing requests rate changes for one, more than one, or all of the
types of policies written.
2. This
subsection shall not apply if a rate change is filed in response to law changes
which relate to specific types of policies filed.
(5)
(a)
Each rate filing which proposes changes to base rates as to any policy for
which rates vary by territory shall contain either:
1. Separate support by territory for each
type of homeowners policy for which a proposed rate change is filed;
or
2. If a series of homeowners
types of policies include identical territory relativities, support by
territory for all types of policies combined.
(b) The provisions of this subsection shall
apply to each territory regardless of whether the rate filing requests rate
changes for one, more than one, or all territories.
(6) The earned premiums and incurred losses
included in the rate level indications shall be direct calendar/accident year
or direct fiscal/accident year, Florida-only data.
(7) The expense factors in each homeowners
rate filing shall be divided into the following categories:
(a) Commissions and brokerage;
(b) Other acquisition expenses;
(c) General expenses;
(d) Premium taxes;
(e) Miscellaneous licenses and
fees;
(f) Reinsurance costs;
and
(g) Other
expenses.
(8) The cost of
reinsurance shall be included as an expense factor and shall consider:
(a) The amount to be paid to the
reinsurer;
(b) Ceding commissions
to be paid to the insurer by the reinsurer;
(c) Expected reinsurance recoveries;
and
(d) Other relevant information
specifically relating to cost such as a retrospective profit sharing agreement
between the insurer and the reinsurer.
(9) The use of contingent commissions as
supporting data for rate changes is prohibited unless:
(a) There is a contractual arrangement
between the insurer and its agents concerning the payment of contingent
commissions; and
(b) The insurer
demonstrates that it is not paying contingent commissions from profits higher
than anticipated in its filings.
Rulemaking Authority 624.308(1) FS. Law Implemented
624.307, 624.424, 627.062, 627.0645
FS.
New 8-23-93, Amended 10-3-94, 10-2-96, 3-31-98, 1-25-99,
6-19-03, Formerly 4-170.014, Amended
9-5-07.
