Chapter 2019-57, Laws of Florida, created section 627.7152, F.S., which requires the Financial Services Commission to file a description of the program on a form and requires insurers to submit certain information to the ....

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-171.010Insurer Assignment Agreement Reporting – Calendar Year Experience

PURPOSE AND EFFECT: Chapter 2019-57, Laws of Florida, created section 627.7152, F.S., which requires the Financial Services Commission to file a description of the program on a form and requires insurers to submit certain information to the Office.

SUMMARY: Rule 69O-171.010, F.A.C., is created to implement section 627.7152, F.S. Form OIR-B1-2221 is incorporated by reference and contains information insurers must report to the Office pursuant to the statute.

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), 624.424(1)(c), 627.7152(12) FS.

LAW IMPLEMENTED: 627.307(1), 624.424, 627.7152 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-171.010 Insurer Assignment Agreement Reporting – Calendar Year Experience

(1) Any insurer authorized to transact residential property or commercial property insurance shall report, for each such line of insurance, the information required by section 627.7152(12), F.S., or required by rule, on data reporting Form OIR-B1-2221, “Assignment of Benefits (AOB) Experience Reporting Form,” effective 3/20, hereby incorporated by reference and available at www.flrules.org/XXXXX.

(2) For purposes of this rule, “residential property and commercial property insurance” includes the following lines of business:

(a) Allied Lines, excluding Time Element;

(b) Commercial Multiple Peril;

(c) Earthquake;

(d) Farmowners Multiple Peril;

(e) Glass;

(f) Homeowners Multiple Peril;

(g) Industrial Extended Coverage;

(h) Industrial Fire;

(i) Mobile Homeowners Multiple Peril;

(j) Mobile Homeowners Physical Damage Only; and

(k) Property (Fire).

(3) The following data elements are to be included in the data reporting form:

(a) NAIC Company Code

(b) Company Name

(c) Unique Claim ID

(d) Type of Policy

(e) County of Loss

(f) Building Replacement Cost

(g) Peril

(h) Date of Loss/Incident

(i) Date Reported to Insurer

(j) Date of First Claim Payment

(k) Date of Most Recent Payment on Claim

(l) Date Closed

(m) Number of AOBs?

(n) Date Earliest AOB was Executed

(o) Date Earliest AOB was Reported to Insurer

(p) Assignee’s Presuit Settlement Demand

(q) Insurer’s Presuit Settlement Offer

(r) Judgment Obtained by Assignee

(s) Litigation on Claim (Y/N)

(t) Reasonable Attorney Fees Awarded Under s. 627.7152(10), F.S. to the Insurer

(u) Reasonable Attorney Fees Awarded Under s. 627.7152(10), F.S. to the Assignee

(v) Total Indemnity Amount Paid by Insurer

(w) Total Allocated Loss Adjustment Expenses (ALAE) Paid by Insurer

(x) Re-opened Claim (Y/N)

(y) If Claim was Previously Reported in a Prior AOB Experience Reporting Form, Most Recent Year Reported

(z) If Claim was Previously Reported in a Prior AOB Experience Reporting Form, Claim ID for that Report

(4) The first report will be due on January 30, 2022, for claims paid in Calendar Year 2021.  Reports for the preceding calendar year are due on or before January 30 of each year and shall be filed electronically at https://www.floir.com/iportal.

 

Rulemaking Authority 624.308(1), 624.424(1)(c), 627.7152(12) FS. Law Implemented 624.307(1), 624.424, 627.7152 FS. History–New ________.

 

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: September 22, 2020

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 12, 2020