Florida Deregulates More Commercial Lines

Commercial insurers in Florida will have more leeway in setting rates on a number of lines of insurance under a bill approved by state lawmakers.

The Florida legislature approved CS/HB 99 that expands the list of commercial lines policies for which insurers may set rates without seeking prior approval from the state’s Office of Insurance Regulation. The bill has been sent to Gov. Rick Scott who is expected to sign it into law effective Oct. 1.

The bill builds on a law enacted last year that allowed insurers marketing commercial motor vehicle coverage for fleets of 20 or more vehicles to set rates without seeking regulatory approval.

This year’s bill extends the motor vehicle rate exemption to fleets with less than 20 vehicles. It would exempts fiduciary and general liability, non-residential property and non-residential multi-peril, excess property and burglary and theft policies.

Commercial insurers will still have to give notice to regulators of any rate change within 30 days. The OIR still has the authority to sign-off on forms and conduct market exams to determine whether a company has the resources to pay claims.

The type of data required to be retained by the insurer or rating organization to support the rate charged for commercial insurance not subject to a rate filing is also revised under the bill. Insurers will be required to retain actuarial data about the commercial risk, but no longer underwriting files, premiums, losses and expense statistics. The actuarial data has to be retained for two years and the insurer bears the cost for an examination of the data by regulators.

Topics Florida Carriers Legislation Commercial Lines Business Insurance