To clarify that imposing additional premium on an existing or new insured based upon not-at-fault accidents is a violation of Section 626.9541(1)(o)3.a., F.S.

DEPARTMENT OF FINANCIAL SERVICES
OIR – Insurance Regulation

RULE NO: RULE TITLE
69O-175.008: Unfair Discrimination in Private Passenger Motor Vehicle Insurance Rates - Based on History of Accidents
PURPOSE AND EFFECT: To clarify that imposing additional premium on an existing or new insured based upon not-at-fault accidents is a violation of Section 626.9541(1)(o)3.a., F.S.
SUMMARY: The rule clarifies that insurers may not use not- at-fault accidents that occurred prior to the insured becoming insured with the particular insurer in determining the premium due.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 624.308(1), 626.9611 FS.
LAW IMPLEMENTED: 624.307(1), 626.9541(1)(o)3.a. FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: February 18, 2009, 12:00 noon
PLACE: 116 Larson Building, 200 East Gaines Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Michael Milnes, P&C Product Review, Office of Insurance Regulation, E-mail [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Michael Milnes, P&C Product Review, Office of Insurance Regulation, E-mail [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

69O-175.008 Unfair Discrimination in Private Passenger Motor Vehicle Insurance Rates – Based on History of Accidents.

(1) No insurer or person authorized to engage in the business of insurance in the State of Florida shall use any motor vehicle accidents which may have occurred at any time in the past except for the 36 months immediately preceding the effective date of the new or renewal policy as a basis for imposing or requesting an additional premium for or for refusing to renew any policy, contract, or certificate of motor vehicle liability, personal injury protection, medical payment, or collision insurance, or any combination thereof. Notwithstanding the above, the imposition of or the request for an additional premium due to at fault motor vehicle accidents referred to in this rule may be imposed on a policy, contract, or certificate of motor vehicle liability, personal injury protection, medical payment, or collision insurance, or any combination thereof in a manner consistent with the processing procedures of an insurer and may not remain in effect in excess of 36 months.

(2)(a) No insurer or person authorized to engage in the business of insurance in the State of Florida shall use any motor vehicle accident which may have occurred at any time in the past as the sole basis for imposing or requesting an additional premium for or for refusing to renew any policy, contract, or certificate of motor vehicle liability, personal injury protection, medical payment, or collision insurance, or any combination thereof unless that insurer’s file contains information from which the insurer in good faith determines that the insured was substantially at fault in the accident.

(b) The term “imposing or requesting additional premium” means that the premium charged by the insurer as consideration in exchange for indemnifying the insured is greater than such premium would have been if that motor vehicle accident had not taken place or the insured had not been substantially at fault in that accident. The term “accident” means any unexpected and unforseen event that is definite in time and place.

Specific Authority 624.308(1), 626.9611 FS. Law Implemented 624.307(1), 626.9541(1)(o)3.a. FS. History–New 8-1-90, Formerly 4-43.007, 4-175.008, Amended_______.

NAME OF PERSON ORIGINATING PROPOSED RULE: Michael Milnes, P&C Product Review, Office of Insurance Regulation, E-mail [e-mail]
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: January 13, 2009
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: October 17, 2008