Section 624.424(8)(d), F.S., was amended to require that CPAs preparing annual reports for insurance companies must have four hours of insurance related continuing education every 2 years. This amends Rule 69O-137.002 to ....
DEPARTMENT OF FINANCIAL SERVICES
RULE NOS.:RULE TITLES:
69O-137.002Annual Audited Financial Reports
69O-137.011Reinsurance Summary Statement
69O-137.015Notice of Nonrenewal of Residential Property Insurance Policies
PURPOSE AND EFFECT: Section 624.424(8)(d), F.S., was amended to require that CPAs preparing annual reports for insurance companies must have four hours of insurance related continuing education every 2 years. This amends Rule 69O-137.002 to add that continuing education requirement to the qualifications for a CPA preparing the annual report.
Rule 69O-137.011 is amended to update Form OIR-D0-1433 to conform with current law and industry practice, and update the laws implemented.
Creates Rule 69O-137.015 and Form OIR-A1-1680 to provide a standard format for data being provided by insurers who are planning to nonrenew 10,000 or more residential property insurance policies within a 12-month period. This report is required by section 624.4305, F.S.
SUMMARY: Amends Rule 69O-137.002 to add the continuing education requirement to the qualifications for a CPA preparing the annual report. Rule 69O-137.011 is amended to update Form OIR-D0-1433 and correct statutory citations. Creates Rule 69O-137.015 and Form OIR-A1-1680 to provide a standard format for data being provided by insurers who are planning to nonrenew 10,000 or more residential property insurance policies within a 12-month period.
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), 624.4085, 624.424, 624.4305, 624.610, F.S.
LAW IMPLEMENTED: 624.307(1), 624.324, 624.424, 624.4305, 624.610, 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, Kama.Monroe@floir.com, (850)413-4121.
THE FULL TEXT OF THE PROPOSED RULE IS:
69O-137.002 Annual Audited Financial Reports.
(1) – (6) No Change
(7) Qualifications of Independent Certified Public Accountant.
(a) The Office shall not recognize any person or firm as a qualified independent Certified Public Accountant if the person or firm:
1. Is not in good standing with the American Institute of Certified Public Accountants (AICPA) and in all states in which the accountant is licensed to practice, or for a Canadian or British company, that is not a chartered accountant;
2. Has not completed 4 hours of insurance related continuing education as required by Section 624.424(8)(d), F.S.; or
3.2. Has either directly or indirectly entered into an agreement of indemnity or release from liability (collectively referred to as indemnification) with respect to the audit of the insurer.
(b) – (l) No Change
(8) – (21) No Change
Rulemaking Authority 624.308(1), 624.4085, 624.424(8)(e) FS. Law Implemented 624.307(1), 624.324, 624.424(8) FS. History–New 3-31-92, Amended 3-14-94, 8-17-98, 4-4-01, 8-14-02, Formerly 4-137.002, Amended 11-3-05, 9-21-10, 1-10-19, 12-26-19, _____.
69O-137.011 Reinsurance Summary Statement.
Section 624.610(1211), F.S., requires each domestic or commercially domiciled insurer ceding directly written risks of loss to file with the office one copy of a summary statement containing information about each treaty. The required information shall be filed on Form OIR-D0-1433 (rev. 10/23 07/01), entitled “Reinsurance Summary Statement,” which is hereby incorporated by reference and available at https://www.flrules.org/Gateway/reference.asp?No=Ref-16774. Form OIR-D0-1433 shall be filed within 30 days after receipt of a cover note or similar confirmation of coverage, or, without exception, no later than 6 months after the effective date of the reinsurance treaty. Forms are available and shall be filed electronically at http://www.floir.com/iportal. All forms may be reproduced at will.
Rulemaking Authority 624.308(1), 624.610(15) FS. Law Implemented 624.424, 624.610(11) FS. History–New 3-27-02, Formerly 4-137.011. Amended ______.
69O-137.015 Notice of Nonrenewal of Residential Property Insurance Policies
(1) In addition to meeting all other requirements of law, each authorized insurer intending to nonrenew more than 10,000 residential property insurance policies within a 12-month period must submit the required notification to the Office at least 90 days before the issuance of any notices of nonrenewal.
(2) The required notification shall be submitted on Form OIR-A1-1680 (effective 05/24), entitled “Notice of Nonrenewal of Residential Property Insurance Policies,” which is hereby incorporated by reference and available at https://www.flrules.org/Gateway/reference.asp?No=Ref-16775. The form may be obtained from https://www.floir.com.
(3) The notification shall be submitted via the Insurance Regulation Filing System (IRFS) application at https://irfs.fldfs.com/.
Rulemaking Authority 624.308(1), 624.4305, F.S. Law Implemented 624.4305, F.S. History – New _____.
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
Document Information
- Comments Open:
- 6/14/2024
- Summary:
- Amends Rule 69O-137.002 to add the continuing education requirement to the qualifications for a CPA preparing the annual report. Rule 69O-137.011 is amended to update Form OIR-D0-1433 and correct statutory citations. Creates Rule 69O-137.015 and Form OIR-A1-1680 to provide a standard format for data being provided by insurers who are planning to nonrenew 10,000 or more residential property insurance policies within a 12-month period.
- Purpose:
- Section 624.424(8)(d), F.S., was amended to require that CPAs preparing annual reports for insurance companies must have four hours of insurance related continuing education every 2 years. This amends Rule 69O-137.002 to add that continuing education requirement to the qualifications for a CPA preparing the annual report. Rule 69O-137.011 is amended to update Form OIR-D0-1433 to conform with current law and industry practice, and update the laws implemented. Creates Rule 69O-137.015 and Form ...
- Rulemaking Authority:
- 624.308(1), 624.4085, 624.424, 624.4305, 624.610, F.S.
- Law:
- 624.307(1), 624.324, 624.424, 624.4305, 624.610, F.S.
- Related Rules: (3)
- 69O-137.002. Annual Audited Financial Reports
- 69O-137.011. Reinsurance Summary Statement
- 69O-137.015. Notice of Nonrenewal of Residential Property Insurance Policies