Current through Reg. 50, No. 187; September 24, 2024
(1)
(a)
This rule shall apply to all dwelling fire and extended coverage insurance
rates filed pursuant to Section
627.062, F.S.
(b) For purposes of this rule, reference to
dwelling fire insurance shall include mobile home dwelling insurance written on
dwelling fire 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 as required by the I-File System and the
Dwelling Rate Collection System (DRCS), 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 DRCS
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 DRCS collection indicated in paragraph (2)(a)
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 dwelling
fire and extended coverage policy which the insurer writes in Florida;
or
2. If a series of dwelling fire
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 changes base rates as to any policy for which rates vary
by territory shall contain either:
1. Separate
support by territory for each type of dwelling fire policy for which a proposed
rate change is filed; or
2. If a
series of dwelling fire 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 dwelling 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, 627.062 FS.
New 10-2-96, Amended 3-31-98, 1-25-99, 6-19-03, Formerly
4-170.0141, Amended 9-5-07.
