The rule establishes procedures by which the Office monitors, verifies, and assures compliance with Section 215.555(6)(b), F.S., relating to assessments to the Florida Hurricane Catastrophe Fund.

 

DEPARTMENT OF FINANCIAL SERVICES
OIR Insurance Regulation

RULE NO: RULE TITLE
69O-137.013: Florida Hurricane Catastrophe Fund Assessment Information Gathering
PURPOSE, EFFECT, AND SUMMARY: The rule establishes procedures by which the Office monitors, verifies, and assures compliance with Section 215.555(6)(b), F.S., relating to assessments to the Florida Hurricane Catastrophe Fund.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
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.
SPECIFIC AUTHORITY: 215.555(6)(b), 624.308(1), 624.4211 FS.
LAW IMPLEMENTED: 215.555(6)(b), 624.4211 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE TIME, DATE AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
TIME AND DATE: July 28, 2006, 9:30 a.m.
PLACE: Room 116, Larson Building, 200 East Gaines Street, Tallahassee, Florida
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Carol McBrier, Office of the Deputy Commissioner (Property and Casualty), Office of Insurance Regulation, E-mail: [e-mail]. The form referenced may be downloaded from the Office’s web page at www.floir.com.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this program, please advise the Office at least 5 calendar days before the program by contacting the person listed above.

THE FULL TEXT OF THE PROPOSED RULE IS:

69O-137.013 Florida Hurricane Catastrophe Fund Assessment Information Gathering.

(1) This rule delineates the information the Office requires from authorized insurers and residual markets to enable the Office to verify the accurate and timely collection and remittance of emergency assessments and to monitor and verify compliance with Section 215.555(6)(b), F.S. This rule also explains how the required information is to be provided to the Office and sets forth penalties for failure to comply with that section and this rule.

(2) The word “applicable premium” as used in this rule means all direct premiums for all lines of property and casualty lines of business in this state, except for the following lines of business as set forth in Section 215.555(6)(b), F.S.:

(a) Federal Flood;

(b) Medical Malpractice;

(c) Group Accident & Health;

(d) Credit A&H (group and individual);

(e) Collectively Renewable A&H;

(f) Non-Cancelable A&H;

(g) Guaranteed Renewable A&H;

(h) Non-Renewable for Stated Reasons Only;

(i) Other Accident Only;

(j) All Other A&H;

(k) Federal Employees Health Benefits Program Premium; and

(l) Workers’ Compensation.

(3) All authorized insurers collecting applicable premium shall report to the Office the following information:

(a) Company Name;

(b) NAIC Company Code (NAIC cocode);

(c) Florida Company Code (FL cocode);

(d) Company contact information;

(e) Federal Employer Identification Number (FEIN);

(f) On a Current Year to Date basis, applicable premium written;

(g) On a reporting period basis (current quarter only), applicable premium written;

(h) Total FHCF Assessment Due Current Year to Date;

(i) Assessments Not Collected from Policyholders Current Year to Date;

(j) Quarterly Payments Made – 1st Calendar Quarter;

(k) Quarterly Payments Made – 2nd Calendar Quarter;

(l) Quarterly Payments Made – 3rd Calendar Quarter;

(m) Quarterly Payments Made – 4th Calendar Quarter; and

(n) A scanned document showing confirmation of the monies being deposited into the account designated by the FHCF (“payment confirmation document”). The deion provided for the wire transfer must include the following information:

(i) NAIC cocode;

(ii) Quarter Number; and

(iii) Date of Payment.

(4) The reporting required by this rule shall be accomplished electronically through the Office’s web page found at www.floir.com. The form by which this is to be accomplished is Form OIR-A1-1688, Florida Catastrophe Fund Assessment Reporting Form (06/2006), which is incorporated herein by reference.

(5) The reporting shall be submitted to the Office on the due dates specified in the Order that will be issued by the Office levying the emergency assessment.

(6) When there is a duty to report applicable premium, each of the following is a violation of Section 215.555(6)(b), F.S., and this rule:

(a) Not reporting;

(b) Reporting on or before the specified due dates but not providing all required information and documentation;

(c) Reporting after the due dates;

(d) Not remitting the collected assessments to the account specified in the Order issued by the Office; and

(e) Remitting less than the calculated assessment (the calculated assessment shall take into account the assessments not collected from policyholders).

(7) Violations as set forth in subsection (6) may result in one or more of the following, as appropriate:

(a) An administrative fine, as set forth in Section 624.4211, Florida Statutes;

(b) Administrative costs charged to the entity for any action taken by the Office in response to noncompliance;

(c) Interest in the amount specified and levied by the Florida Hurricane Catastrophe Fund, Rule 19-8-013, Florida Administrative Code, for late payments;

(d) If information is initially submitted incorrect or incomplete, the company may be levied an administrative fine as set forth in Section 624.4211, Florida Statutes, notwithstanding a subsequent complete and accurate submission made prior to the reporting due date;

(e) An audit of company records relating the assessment;

(f) An examination being performed at the entity’s expense to gather and report the required data; and

(g) Other administrative actions as allowed by statute.

(8) The penalties detailed in subsection (7) above will not be levied on a per policy basis.

Specific Authority 624.308(1), 624.4211, 215.555(6)(b) FS. Law Implemented 215.555(6)(b), 624.4211 FS. History–New_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Carol McBrier, Office of the Deputy Commissioner (Property and Casualty), Office of Insurance Regulation
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Tom Streukens, Deputy Commissioner, Office of Insurance Regulation
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 6, 2006
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: May 5, 2006