The amendment to Rule 69O-163.009, FAC, specifies the credibility factors to be applied for the calculation of deviations from prima facie rates. The amendments to Rule 69O-163.011, FAC, amend the maximum credit disability insurance premium rates.

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-163.009Determination of Reasonableness of Benefits in Relation to Premium Charge

69O-163.011Credit Disability Insurance Rates

PURPOSE AND EFFECT: The amendment to Rule 69O-163.009, F.A.C., specifies the credibility factors to be applied for the calculation of deviations from prima facie rates. The amendments to Rule 69O-163.011, F.A.C., amend the maximum credit disability insurance premium rates.

SUMMARY: Rule 69O-163.009, F.A.C. is amended to require the filing of Form OIR-B2-2213 to provide numerical and written justification when there is a deviation from prima facie rates. The maximum credit disability insurance premium rates are amended in Rule 69O-163.011, F.A.C.

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 paragraph 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), 627.678 FS.

LAW IMPLEMENTED: 624.307(1), 627.678, 627.6785, 627.682 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, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

69O-163.009 Determination of Reasonableness of Benefits in Relation to Premium Charge.

(1) through (5) No change.

(6) Any deviation from prima facie rates shall require numerical and written justification. The numerical information shall be displayed as illustrated in Form OIR-B2-2213, Appendix A, Illustrative Experience Exhibit, effective 10/18, hereby incorporated by reference and available at www.flrules.org/XXXXX, and submitted electronically via the Office’s Filing Assembly Submission System (FASS) at https://iportal.fldfs.com/ifile/fass/default.asp.

Rulemaking Authority 624.308(1), 627.678 FS. Law Implemented 624.307(1), 627.678, 627.682 FS. History–New 5-9-82, Formerly 4-7.09, Amended 6-11-91, Formerly 4-7.009, Amended 3-15-94, 2-11-03, Formerly 4-163.009, Amended 9-30-09, ____________.

 

69O-163.011 Credit Disability Insurance Rates.

(1) Credit disability insurance premium rates for the insured portion of an indebtedness repayable in equal monthly installments, where the insured portion of the indebtedness decreases uniformly by the amount of the monthly installment paid, shall not be greater than in paragraphs (a) and (b). Paragraphs (c), (d) and (e) refer to premium rates for other types of coverages either alone or in combination with the type of coverages applicable to paragraphs (a) and (b).

(a) If premiums are payable on a single-premium basis for the duration of the coverage:

TABLE I

No. of months in which	14-Day	30-Day	7-Day	14-Day	30-Day
indebtedness is repayable	Non-Retroactive	Non-Retroactive	Retroactive	Retroactive	Retroactive
6 or less	$0.65 $0.81	$0.29 $0.36	$1.18 $1.47	$1.04 $1.30	$0.84 $1.05
7-12	0.90 1.13	0.58 0.72	1.41 1.76	1.26 1.58	1.09 1.36
13-18	1.17 1.46	0.86 1.08	1.64 2.05	1.50 1.87	1.34 1.67
19-24	1.42 1.78	1.15 1.44	1.87 2.34	1.73 2.16	1.58 1.97
25-30	1.69 2.11	1.44 1.80	2.11 2.64	1.96 2.45	1.82 2.28
31-36	1.94 2.43	1.73 2.16	2.34 2.93	2.19 2.74	2.06 2.58
37-48	2.27 2.84	2.16 2.70	2.67 3.34	2.48 3.10	2.38 2.97
49-60	2.53 3.16	2.38 2.97	2.95 3.69	2.70 3.38	2.62 3.28
61-72*	2.74 3.43	2.62 3.27	3.18 3.97	2.90 3.62	2.82 3.53
73-84*	2.89 3.61	2.78 3.47	3.34 4.18	3.03 3.79	2.96 3.70
85-96*	3.01 3.76	2.91 3.64	3.47 4.34	3.14 3.92	3.07 3.84
97-108*	3.09 3.86	3.00 3.75	3.57 4.46	3.21 4.01	3.15 3.94
109-120* Per month for terms exceeding 120 months	3.16 3.95 .0242 .0303	3.08 3.85 .0237 .0296	3.64 4.55 .0278 .0348	3.27 4.09 .0246 .0313	3.22 4.02 .0246 .0308

(b) through (f) No change.

(2) No change.

Rulemaking Authority 624.308(1), 627.678 FS. Law Implemented 624.307(1), 627.678, 627.6785, 627.682 FS. History–New 5-9-82, Formerly 4-7.11, Amended 6-11-91, Formerly 4-7.011, Amended 2-11-03, Formerly 4-163.011, Amended 9-30-09, ____________.

 

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: March 12, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 30, 2018.