Monday, May 17, 2010

Florida bill exempts some lines from rate filing & review requirements

Florida Senate bill 2176 approved by the Florida House and Senate that exempts certain commercial lines from rate filing and review requirements, has been sent to Florida Gov. Charlie Crist for signature.

The bill does not mention surplus lines insurance but the rate deregulation could impact the surplus lines market.

The bill exempts the following from the filing and review requirements.
  • Excess or umbrella.

  • Surety and fidelity.
  • Boiler and machinery and leakage and fire extinguishing equipment.

  • Commercial motor vehicle insurance, minimum of 20 vehicles.

  • Errors and omissions.
  • Directors and officers, employment practices, and management liability.

  • Intellectual property and patent infringement liability.

  • Advertising injury and Internet liability insurance.

  • Property risks rated under a highly protected risks rating plan.

  • Unique or unusual risks or portions of risks not rated according to manuals, rating plans, or rate schedules, including "a" rates.

The bill requires an insurer to notify the Office of Insurance Regulation of any changes within 30 days after the rate change.

Underwriting files, premiums, and loss and expense statistics must be maintained by the insurer and are subject to inspection by the OIR. The bill also requires a rating organization to notify the OIR of any changes to loss costs within 30 days after the effective date of the change, and to maintain loss and exposure statistics.

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