The Office of Insurance Regulation is updating Chapter 69O-201.

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NOS.:RULE TITLES:

69O-201.005Financial Requirements Regarding the Unearned Premium Reserve Liability Account and the Deposit or Bond

69O-201.008General Eligibility Requirements

69O-201.012Annual Statement and Quarterly Reports

PURPOSE AND EFFECT: The Office of Insurance Regulation is updating Chapter 69O-201.

SUMMARY: Rule 69O-201.005, F.A.C. is amended to update the financial requirements. Rule 69O-201.008, F.A.C. is amended to combine all application requirements in a single rule. Rule 69O-201.012, F.A.C. is amended to update the annual statement requirements.

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: 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: 624.308(1), 642.021(2) FS.

LAW IMPLEMENTED: 624.307(1), 624.404, 624.416, 625.051, 642.019, 642.021, 642.023, 642.0301, 642.032 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., Chief Counsel, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-201.005 Financial Requirements Regarding the Unearned Premium Reserve Liability Account and the Deposit or Bond.

(1) through (2) No change.

(3) The unearned premium reserve account is calculated as follows:

(a) For all one year policies, the minimum reserve for all legal expense insurance corporations shall be 50% of the gross written premium for which the corporation is obligated on all policies issued in any state.

(b) A legal expense insurance corporation company may count as one-month policies those policies which are paid by the month and can be cancelled by either party with 30 days notice. The reserve amount required on monthly policies is one-half of the total monthly gross written premium. The legal expense insurance corporation company must specify if the reserve is calculated they are calculating the reserve on a monthly basis.

(c)1. For all multiyear policies issued in any state the reserve shall initially be calculated at 50% of the gross written premium for the first year premium, and 100% for each subsequent year’s premium, for all gross written premiums for which the legal expense insurance corporation is obligated.

2. As each subsequent year becomes current, 50 percent of that current year’s premium is earned and shall be subtracted from the reserve.

3. The reserve is maintained until the expiration of the multiyear policy.

(4) No change.

Rulemaking Authority 624.308(1) FS. Law Implemented 624.307(1), 625.051, 642.023, 642.032 FS. History–New 6-23-92, Formerly 4-201.005, Amended ________________.

 

69O-201.008 Application for Certificate of Authority and Annual Renewal. General Eligibility Requirements.

Substantial rewording of Rule 69O-201.008, F.A.C. follows.  See Florida Administrative Code for present text.

(1) Application for Certificate of Authority as a Legal Expense Insurance Corporation

(a) An application for a person applying for a certificate of authority as a legal expense insurance corporation consists of the following:

1. Form OIR-C1-480, “Application for Certificate of Authority Legal Expense Insurance,” effective 12/18, available at www.flrules.org/XXXXX;

2. Form OIR-A3-478, “Legal Expense Insurance Corporation Surety Bond,” effective 6/20, available at www.flrules.org/XXXXX;

3. Form OIR-C1-144, “Service of Process Consent & Agreement,” effective 6/04, hereby incorporated by reference and available at www.flrules.org/XXXXX;

4. Form OIR-C1-905, “Instructions for Furnishing Background Investigative Reports,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX;

5. Form OIR-C1-938, “Fingerprint Payment and Submission Procedures,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX;

6. Form OIR-C1-995, “List of Proposed Sales Representatives,” effective 10/05, hereby incorporated by reference and available at www.flrules.org/XXXXX;

7. Form OIR-C1-1423, “Biographical Affidavit,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX; and

8. Form OIR-C1-2221, “Management Information Form,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX;

(b) A person applying for a certificate of authority as a legal expense insurance corporation shall submit forms listed in paragraph (1)(a) as directed by the Office electronically at https://www.floir.com/iportal.

(2) Annual Renewal

(a)1. A legal expense insurance corporation’s certificate of authority shall continue in force as long as the legal expense insurance corporation is in compliance with the provisions of chapter 642, F.S.

2. Failure to submit the application for continuance by June 1 shall result in expiration of the certificate of authority and will require the filing of a new application for licensure.

(b) The qualified certificate of authority holder seeking to continue operating as a legal expense insurance corporation shall submit Form OIR-A3-1077, “Application for Renewal of Certificate of Authority Legal Expense Insurance,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX, at https://www.floir.com/iportal; and

(c) The legal expense insurance corporation shall honor those contracts in force until the date of expiration or the date of cancellation and a refund is made to the consumer.

Rulemaking Authority 624.308(1), 642.021(2) FS. Law Implemented 624.307(1), 624.404, 628.4615, 642.019, 642.021, 642.032 FS. History–New 6-23-92, Formerly 4-201.008, Amended ________________.

 

69O-201.012 Annual Statement and Quarterly Statements Reports.

(1)(a) An Annual Statement annual statement and a $100 filing fee shall be filed with the Office of Insurance Regulation, on or before March 1 of each year on Form form OIR-A3-479, “Annual Statement Legal Expense Insurance Corporation,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX. adopted in rule 69O-201.015, F.A.C.

(b) If the Annual Statement statement does not include all information requested in the format provided, it will not be deemed filed until all deficiencies are corrected.

(2) A late filing fee will be assessed in accordance with rule 69O-207.001, F.A.C., for each day after March 1 that a legal expense insurance corporation company has not filed a complete annual statement.

(3)(a) Quarterly Statements reports shall be filed with the Office of Insurance Regulation, on Form form OIR-A3-481, “Quarterly Statement,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX. as adopted in rule 69O-201.015, F.A.C.

(b) If the Quarterly Statement quarterly report does not include all information requested in the format provided, it will not be deemed filed until all deficiencies are corrected.

(c) Failure to file the quarterly reports in a timely manner may result in administrative action to suspend or revoke the license.

(4) The Quarterly Statements quarterly reports are due as follows:

Period	Due
First Quarter (March 31)	May 15
Second Quarter (June 30)	August 15
Third Quarter (September 30)	November 15

(5)(a) Any request for an extension of filing the Annual Statement annual report shall be in writing, and the reason(s) for the extension explained in detail.

(b) All requests must be filed with the Office fifteen (15) days prior to the deadline date for filing the Annual Statement annual report.

(c) No change.

(6) All filings shall be submitted electronically via the Office’s system at to https://www.floir.com/iportal.

Rulemaking Authority 624.308(1) FS. Law Implemented 624.307(1), 624.416, 624.424, 642.0301, 642.032 FS. History–New 6-23-92, Formerly 4-201.012, Amended 7-30-17, ________________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Michael Lawrence, Jr., Chief Legal Counsel

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: February 2, 2021

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 5, 2020