November 19, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:

Florida Senate - 2008 SB 2858

By Senator Atwater

25-03064-08 20082858__

1

A bill to be entitled

2

An act relating to insurance; amending s. 627.062, F.S.;

3

deleting the requirement for the Office of Insurance

4

Regulation to approve a rating factor that provides an

5

insurer a reasonable rate of return for covering

6

catastrophic losses not covered by reinsurance; providing

7

an effective date.

8

9

Be It Enacted by the Legislature of the State of Florida:

10

11

     Section 1.  Paragraph (b) of subsection (2) of section

12

627.062, Florida Statutes, is amended to read:

13

     627.062  Rate standards.--

14

     (2)  As to all such classes of insurance:

15

     (b)  Upon receiving a rate filing, the office shall review

16

the rate filing to determine if a rate is excessive, inadequate,

17

or unfairly discriminatory. In making that determination, the

18

office shall, in accordance with generally accepted and

19

reasonable actuarial techniques, consider the following factors:

20

     1.  Past and prospective loss experience within and without

21

this state.

22

     2.  Past and prospective expenses.

23

     3.  The degree of competition among insurers for the risk

24

insured.

25

     4.  Investment income reasonably expected by the insurer,

26

consistent with the insurer's investment practices, from

27

investable premiums anticipated in the filing, plus any other

28

expected income from currently invested assets representing the

29

amount expected on unearned premium reserves and loss reserves.

30

The commission may adopt rules using utilizing reasonable

31

techniques of actuarial science and economics to specify the

32

manner in which insurers shall calculate investment income

33

attributable to such classes of insurance written in this state

34

and the manner in which such investment income shall be used to

35

calculate in the calculation of insurance rates. Such manner

36

shall contemplate allowances for an underwriting profit factor

37

and full consideration of investment income which produce a

38

reasonable rate of return; however, investment income from

39

invested surplus may shall not be considered.

40

     5.  The reasonableness of the judgment reflected in the

41

filing.

42

     6.  Dividends, savings, or unabsorbed premium deposits

43

allowed or returned to Florida policyholders, members, or

44

subscribers.

45

     7.  The adequacy of loss reserves.

46

     8.  The cost of reinsurance.

47

     9.  Trend factors, including trends in actual losses per

48

insured unit for the insurer making the filing.

49

     10.  Conflagration and catastrophe hazards, if applicable.

50

     11.  A reasonable margin for underwriting profit and

51

contingencies. For that portion of the rate covering the risk of

52

hurricanes and other catastrophic losses for which the insurer

53

has not purchased reinsurance and has exposed its capital and

54

surplus to such risk, the office must approve a rating factor

55

that provides the insurer a reasonable rate of return that is

56

commensurate with such risk.

57

     12.  The cost of medical services, if applicable.

58

     13.  Other relevant factors which impact upon the frequency

59

or severity of claims or upon expenses.

60

61

The provisions of this subsection shall not apply to workers'

62

compensation and employer's liability insurance and to motor

63

vehicle insurance.

64

     Section 2.  This act shall take effect July 1, 2008.

CODING: Words stricken are deletions; words underlined are additions.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader