The Office of Insurance Regulation (Office) is updating Chapter 69O-193.

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-193.066Corrective Action Plan

PURPOSE AND EFFECT: The Office of Insurance Regulation (Office) is updating Chapter 69O-193.

SUMMARY: Chapter 2019-160, Laws of Florida, amended and created new sections in Chapter 651, F.S. The Office is amending Chapter 69O-193 to comply with these statutory changes, as well as amending and repealing existing rules. 69O-193.066 is created to oversee corrective action plans.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: Agency personnel familiar with the subject matter of the rule amendment have performed an economic analysis of the rule amendment that shows that the rule amendment is unlikely to have an adverse impact on the State economy in excess of the criteria established in Section 120.541(2)(a), Florida Statutes.

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.

RULEMAKING AUTHORITY: 651.015(3), 651.034(7) FS.

LAW IMPLEMENTED: 651.034 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Michael Lawrence, Jr., Assistant General Counsel, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-193.066 Corrective Action Plan

(1) The Office shall approve a corrective action plan submitted pursuant to section 651.034, F.S., if the plan includes:

(a) A statement of the fundamental problems causing the regulatory action level event to occur;

(b) A description of the pricing, operational, or other changes to be made that are reasonably expected to result in the elimination of the regulatory action level event;

(c) A specific reasonable time schedule for implementation of the changes described in (1)(b);

(d) Occupancy projections for three years broken down by level of care;

(e) A financial forecast or projected financial statements for three years demonstrating the effect of the proposed changes;

(f) A forecast or projection of the debt service coverage ratio and days cash on hand for the periods included in the financial forecast or projected financial statements, which may be included in the financial forecast or projected financial statements or provided as a separate document; and

(g) Key assumptions supporting the financial forecast or projected financial statements.

(2) The Office shall accept and approve a document prepared for a lender or other third party by the provider or a consultant as the required corrective action plan if the document complies with paragraph (1) of this rule and is accompanied by a sworn statement of the provider that it is a full and true representation of the provider’s plan for coming into compliance with chapter 651, F.S.

Rulemaking Authority 651.015(3), 651.034(7) FS. Law Implemented 651.034, FS. History-New _____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Michael Lawrence, Jr., Assistant General Counsel

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 03, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 30, 2019