The Office of Insurance Regulation is updating four rules in Chapter 69O-193

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NOS.:RULE TITLES:

69O-193.003Applications and Management Change

69O-193.005Monthly, Quarterly, and Annual Reports

69O-193.050Minimum Liquid Reserve Requirement

69O-193.053Waiver of Minimum Liquid Reserves

PURPOSE AND EFFECT: The Office of Insurance Regulation is updating four rules in Chapter 69O-193

SUMMARY: Some forms incorporated by reference in Chapter 69O-193 are amended to comply with notary requirement changes due to Chapter 2019-71, Laws of Florida. Other forms are updated to new versions of the forms. Seven forms incorporated by reference are amended in 69O-193.003. Four forms incorporated by reference are amended in 69O-193.005. Two forms incorporated by reference are amended in 69O-193.050. One form incorporated by reference is amended in 69O-193.053.

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: 651.015(3), 651.021(2), 651.022(2), 651.0245(3), (5), (6), 651.0246(1), 651.026(2), (9), 651.0261(1), (2), (4), 651.035(9), 651.043 FS.

LAW IMPLEMENTED: 651.0215, 651.022, 651.023, 651.024, 651.0245, 651.0246, 651.026, 651.035, 651.0261 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 Legal Counsel, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-193.003 Applications and Management Change.

(1) Application for Certificate of Authority.

(a) An application for a person applying for a certificate of authority for a continuing care provider consists of the following:

1. through 2. No change.

3. Form OIR-C1-905, “Instructions for Furnishing Background Investigative Reports,” effective 6/20 11/19, hereby incorporated by reference and available at www.flrules.org/XXXXX  https://www.flrules.org/Gateway/reference.asp?No=Ref-11567;

4. Form OIR-C1-938, “Fingerprint Payment and Submission Procedures,” effective 6/20 11/19, hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11568;

5. Form OIR-C1-1423, “Uniform Certificate of Authority Application (UCAA) Biographical Affidavit,” effective 12/20, hereby incorporated by reference and available at www.flrules.org/XXXXX; and Form OIR-C1-2221, “Management Information Form,” effective 11/19, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11569; and

6. Form OIR-C1-2221, “Management Information Form,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX. Form OIR-C1-1423, “Biographical Affidavit,” effective 4/19, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11570.

(b) No change.

(2) Application for Provisional Certificate of Authority.

(a) An application for a person applying for a provisional certificate of authority for a continuing care provider consists of the following:

1. through 4. No change.

5. Form OIR-C1-1423 OIR-C1-2221, incorporated by reference in paragraph (1)(a); and

6. Form OIR-C1-2221 OIR-C1-1423, incorporated by reference in paragraph (1)(a).

(b) No change.

(3) Consolidated Application for Provisional Certificate of Authority and Certificate of Authority.

(a) A consolidated application for a provisional certificate of authority and certificate of authority for a continuing care provider consists of the following:

1. through 4. No change.

5. Form OIR-C1-1423 OIR-C1-2221, incorporated by reference in paragraph (1)(a); and

6. Form OIR-C1-2221 OIR-C1-1423, incorporated by reference in paragraph (1)(a).

(b) No change.

(4) Application for the Simultaneous Acquisition of a Continuing Care Facility and Issuance of a Certificate of Authority to a Provider.

(a) An application for the simultaneous acquisition of a continuing care facility and issuance of a certificate of authority consists of the following:

1. through 4. No change.

5. Form OIR-C1-1423 OIR-C1-2221, incorporated by reference in paragraph (1)(a); and

6. Form OIR-C1-2221 OIR-C1-1423, incorporated by reference in paragraph (1)(a).

(b) No change,

(c) Disclaimer of Control

1. A person may attempt to rebut a presumption of control pursuant to Section 651.0245, F.S., by electronically filing at https://www.floir.com/iportal one of the following forms with the Office:

a. Form OIR-C1-1467, “Disclaimer of Control Affidavit – Individual,” effective 7/21 08/18, hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11574;

b. Form OIR-C1-1468, “Disclaimer of Control Affidavit – Entity,” effective 7/21 08/18, hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11575;

c. Form OIR-C1-2211, “Disclaimer of Control Affidavit – Investment Companies,” effective 7/21 08/18, hereby incorporated by reference and available at www.flrules.org/XXXXX  http://www.flrules.org/Gateway/reference.asp?No=Ref-11576.

2. through 3. No change.

(5) Application for Expansion.

(a) An application for a person applying for expansion of a certificated continuing care facility consists of the following:

1. through 3. No change.

4. Form OIR-C1-1423 OIR-C1-2221, incorporated by reference in paragraph (1)(a); and

5. Form OIR-C1-2221 OIR-C1-1423, incorporated by reference in paragraph (1)(a).

(b) No change.

(6) Manager or Management Company.

(a) To comply with the filing requirements of Section 651.043(2), F.S., for each new management company or manager not employed by a management company within 10 business days of a change in management, the provider shall submit the following:

1. Form OIR-C1-905, incorporated by reference in paragraph (1)(a)  “Instructions for Furnishing Background Investigative Reports,” effective 2/15, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11567;

2. Form OIR-C1-938, incorporated by reference in paragraph (1)(a) “Fingerprint Payment and Submission Procedures,” effective 10/18, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11568; and

3. Form OIR-C1-1423, incorporated by reference in paragraph (1)(a) “Biographical Affidavit,” effective 4/19, hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11570.

4. No change.

(b) No change.

Rulemaking Authority 651.015(3), 651.021(2), 651.022(2), 651.0245(3), (5), (6), 651.0246(1), 651.043 FS. Law Implemented 651.0215, 651.022, 651.023, 651.024, 651.0245, 651.0246 FS. History–New 7-16-92, Formerly 4-193.003, Amended 3-12-20, _________.

 

69O-193.005 Monthly, Quarterly, and Annual Reports.

(1) Monthly Statements.

If required by the Office pursuant to Section 651.0261(3), F.S., a provider shall file Form OIR-A3-973 within 25 days after the end of each month. Form OIR-A3-973, “Monthly Financial Report,” effective 7/20 9/19, is hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11558. The filing shall be submitted electronically via the Office’s system at https://www.floir.com/iportal.

(2) Quarterly Statements.

(a) As required by Section 651.0261(2), F.S., a provider shall file Form OIR-A3-974 within 45 days after the end of the fiscal quarter. Form OIR-A3-974, “Quarterly Financial Report,” effective 7/20 9/19, is hereby incorporated by reference and available at www.flrules.org/XXXXX  http://www.flrules.org/Gateway/reference.asp?No=Ref-11559. The filing shall be submitted electronically via the Office’s system at https://www.floir.com/iportal.

(b) In addition to Form OIR-A3-974, a provider shall submit Form OIR-A3-1245 for any facility for which a certificate of occupancy has not yet been issued. Form OIR-A3-1245, “Sales and Financial Report for a Non-Operational Facility,” effective 7/20 9/19, is hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11560.

(3) Annual Report.

An Annual Report shall be filed with the Office, on or before May 1 of each year if the provider’s fiscal year end is December 31 or within 120 days of the last day of the fiscal year of the provider if the provider has declared a fiscal year other than the calendar year, on Form OIR-A3-470, “Annual Financial Report,” effective 7/20 9/19, hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11561. The filings shall be submitted electronically via the Office’s system at https://www.floir.com/iportal.

Rulemaking Authority 651.015(3), 651.026(2), (9), 651.0261(1), (2), (4) FS. Law Implemented 651.026, 651.0261 FS. History–New 7-16-92, Formerly 4-193.005, Amended 3-12-20, _________.

 

69O-193.050 Minimum Liquid Reserve Requirement.

(1) A Minimum Liquid Reserve (MLR) Calculation shall be filed with the Office, on or before May 1 of each year if the provider’s fiscal year end is December 31 or within 120 days of the last day of the fiscal year of the provider if the provider has declared a fiscal year other than the calendar year, on Form OIR-A3-477, “Minimum Liquid Reserve (MLR) Calculation,” effective 7/20 10/19, hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11562. The filings shall be submitted electronically at https://www.floir.com/iportal.

(2) No change.

(3) For purposes of the MLR requirement, long-term financing includes, but is not limited to, lease payments, mortgage payments, the long-term portion of any construction loan, and any long-term debt between affiliates or controlling parties of the provider that relate to the real property or fixtures of a facility.

(4) through (5) No change.

(6) To request Office approval of a withdrawal of MLR funds, a provider must file Form OIR-A3-1284, “Request for Withdrawal from Minimum Liquid Reserves,” effective 7/20 10/19, hereby incorporated by reference and available at www.flrules.org/XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11563. The filing shall be submitted electronically at https://www.floir.com/iportal.

(7) No change.

Rulemaking Authority 651.015(3), 651.026(2)(d), 651.035(9) FS. Law Implemented 651.026, 651.035 FS. History–New 7-16-92, Formerly 4-193.050, Amended 3-12-20, _________.

 

69O-193.053 Waiver of Minimum Liquid Reserves.

(1) No change.

(2) To obtain a waiver for all or any part of the escrow requirement for mortgage principal and interest contained in Section 651.035(1), F.S., the provider must meet the requirements of Section 651.023(7), F.S., and file Form OIR-A3-1068, “Request for Waiver of Minimum Liquid Reserve Requirement,” effective 7/20 9/19, hereby incorporated by reference and available at www.flrules.org/XXXXX. http://www.flrules.org/Gateway/reference.asp?No=Ref-11564, The filings shall be submitted electronically at https://www.floir.com/iportal;

(3) through (4) No change.

Rulemaking Authority 651.015(3) FS. Law Implemented 651.023, 651.035 FS. History–New 7-16-92, Formerly 4-193.053, Amended 3-12-20, _________.

 

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: March 29, 2022

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 4, 2022