Section 627.7065(2), F.S., requires the Department of Financial Services (“DFS”) to consult with the Florida Geological Survey (“FGS”) and the Department of Environmental Protection (“DEP”) to implement a statewide electronic database of sinkholes ...

DEPARTMENT OF FINANCIAL SERVICES
Division of Consumer Services

RULE NO: RULE TITLE
69J-9.001: Database of Information Relating to Sinkholes.
PURPOSE AND EFFECT: Section 627.7065(2), F.S., requires the Department of Financial Services (“DFS”) to consult with the Florida Geological Survey (“FGS”) and the Department of Environmental Protection (“DEP”) to implement a statewide electronic database of sinkholes and related activity identified in the state. Pursuant to Section 627.7065(3), F.S., the content of the database may include standards for reporting and investigating sinkholes for inclusion in the database and requirements for insurers to report the receipt of claims involving sinkhole loss and other similar activities. The DFS may require insurers to report present and past data of sinkhole claims. The database may also include information of damage due to ground settling and other subsidence activity. The DFS consulted with the FGS and the DEP to determine the form and content of the database which is set forth in the proposed rule.
SUMMARY: Rule 69J-9.001, F.A.C., requires insurers to electronically submit a report on all sinkhole claims investigated after January 1, 2005 on a secured Department website. Some of the required information includes: name of insurance company, where the claim occurred, depth and width of sinkhole, etc.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: The agency has determined that it is unknown whether this rule will have an impact on small business. A SERC has been prepared by the agency.
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), 627.7065(6) FS.
LAW IMPLEMENTED: 627.706, 627.7065 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(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: January 11, 2010, 2:00 p.m.
PLACE: Room 116, Larson Building, 200 E. Gaines Street, Tallahassee, FL
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: Greg Thomas at [phone] or [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: Greg Thomas, Chief, Bureau of Education, Advocacy & Research, Department of Financial Services, 200 E. Gaines Street, Tallahassee, Florida 32399, [phone]

THE FULL TEXT OF THE PROPOSED RULE IS:

69J-9.001 Database of Information Relating To Sinkholes.

(1) Purpose and Scope. This rule implements Section 627.7065, F.S. The sinkhole database established under this rule is prompted by the dramatic increase in the number of sinkholes and insurance claims for sinkhole damage in the state.

(2) Definitions. The following definitions shall apply for purposes of this rule:

(a) “Sinkhole” means sinkhole as defined in Section 627.706, F.S.

(b) “Sinkhole loss” means sinkhole loss as defined in Section 627.706, F.S.

(c) “Catastrophic ground cover collapse” means catastrophic ground cover collapse as defined in Section 627.706, F.S.

(d) “Sinkhole activity” means sinkhole activity as defined in Section 627.706, F.S.

(e) “Professional engineer” means professional engineer as defined in Section 627.706, F.S.

(f) “Professional geologist” means professional geologist as defined in Section 627.706, F.S.

(g) “Sinkhole database” means the statewide automated database of sinkhole and catastrophic ground cover collapse losses as provided for in Section 627.7065, F.S.

(h) “DFS” means the Florida Department of Financial Services.

(3) Insurers shall electronically submit data for all sinkhole claims investigated on or after January 1, 2005 to the Department of Financial Services (DFS), within the later of 60 days of the date of the investigation or the effective date of this rule. Data shall be electronically submitted on Form DFS-I5-1999, “Sinkhole or Catastrophic Ground Cover Collapse Report,” (Effective 8/2009), which is hereby incorporated by reference. The report form shall be obtained from and submitted to the DFS through the website at https://apps.fldfs.com/sinkholereport. No fee is required. Once submitted, reports shall be electronically updated on the DFS website within 60 days of any change in a reportable data element required by subsection (5) of this rule.

(4) The DFS shall allow insurers to provide an initial report of claims data for sinkhole claims occurring between January 2, 2005 and December 31, 2009 via a database upload. In order for such data to be acceptable by DFS, it shall be formatted to meet the criteria specified by DFS in Form DFS-I5-1999.

(5) The sinkhole database shall include fields for the following information:

(a) Name of the insurance company;

(b) License number of the insurance company;

(c) Claim number;

(d) Date the claim was reported;

(e) Type of insurance policy;

(f) Status of claim;

(g) Whether a sinkhole or catastrophic ground cover collapse loss was confirmed;

(h) Whether a sinkhole or catastrophic ground cover collapse finding was disputed;

(i) Geotechnical methods used to confirm sinkhole event;

(j) Whether the insured property was deemed a total loss for insurance purposes;

(k) Florida county in which the claim occurred;

(l) City in which the claim occurred;

(m) Postal Zip-Code in which the claim occurred;

(n) Property address at which the claim occurred;

(o) Longitude at which the claim occurred;

(p) Latitude at which the claim occurred;

(q) Method by which latitude and longitude were determined (i.e., topographic map, survey, hand held GPS);

(r) GPS datum type used;

(s) Survey Township;

(t) Survey Section;

(u) Survey Range;

(v) Elevation of land surface affected by collapse;

(w) Measured depth of sinkhole;

(x) Measured width of sinkhole (include minimum and maximum width);

(y) Slope of the sinkhole walls (include minimum and maximum slope);

(z) Whether water is visible in the sinkhole;

(aa) Whether limestone is visible in the sinkhole;

(bb) Whether a cave is visible in the sinkhole;

(cc) Estimated time period for formation of the sinkhole;

(dd) Any pre-collapse indicators;

(ee) Triggering mechanism most likely to have caused sinkhole;

(ff) Soil type at sinkhole location;

(gg) Land use of property involved in the sinkhole loss;

(hh) Structure affected by sinkhole (i.e., residence, road, retention pond, etc.);

(ii) Type of professional (Professional Geologist or Professional Engineer) who investigated sinkhole;

(jj) Whether the sinkhole was repaired as part of the claim.

Rulemaking Authority 624.308(1), 627.7065(6) FS. Law Implemented 627.706, 627.7065 FS. History–New_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Greg Thomas
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Alex Sink, Chief Financial Officer
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 12, 2009
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: October 16, 2009