Amends Rule 69O-170.0135, F.A.C., to enact changes made by Chapter 2024-182, L.O.F., to Section 627.062(2)(j)2., F.S., by requiring additional information to be included in the actuarial memorandum of a company that is averaging ....

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-170.0135ACTUARIAL MEMORANDUM

PURPOSE AND EFFECT: Amends Rule 69O-170.0135, F.A.C., to enact changes made by Chapter 2024-182, L.O.F., to Section 627.062(2)(j)2., F.S., by requiring additional information to be included in the actuarial memorandum of a company that is averaging hurricane models.

SUMMARY: Rule 69O-170.0135, F.A.C., “Actuarial Memorandum” is amended to require that, if the insurer is using an averaged hurricane model, a statement be included stating that the same average is being used statewide and to indicate if the model is a weighted averaged. If a weighted averaged model is being used, the actuarial memorandum must also include an actuarial justification showing the averaged model results in a rate that is reasonable, adequate, and fair.

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), F.S.

LAW IMPLEMENTED: 624.307, 627.062, 627.0651, F.S.

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: Kama Monroe, Assistant General Counsel, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-170.0135 Actuarial Memorandum.

(1)-(2) No Change

(3) Standards.

(a) No Change

(b) If a model accepted by the Florida Commission on Hurricane Loss Projection Methodology is used, it shall be the current version of the model, however, the immediate prior version of the model accepted by the Commission of the model may be used if the filing is submitted no more than three months after the date the current version is accepted by the Commission. If the insurer is using an averaged model under section 627.062(2)(j)2., F.S., the actuarial memorandum must state that the same averaged model is being used throughout the state and indicate if a weighted average is being used. If a weighted average is used the memorandum must also include an actuarial justification for using that weighted average which shows that it results in a rate that is reasonable, fair, and adequate.

(c)-(d) No Change

Rulemaking Authority 624.308(1) FS. Law Implemented 624.307, 627.062, 627.0651 FS. History–New 9-5-07, Amended_____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Kama Monroe, Assistant General Counsel

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 12, 2024

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 15, 2024