Property and Casualty Product Review - Forms

Transcription

1 Property and Casualty Product Review - Forms 1

2 Form Filings The evolution of the form filing process over the last few years: Legislation File Volume Budget Staffing Complexity Training Quality 2

3 Number of Form and Rate Filings Note: Filings may contain multiple companies 2012 data is preliminary and includes an estimate of additional filings due to implementation of HB 119 3

4 Number of P&C Form and Rate Filings Submitted to the Office Note: Filings may contain multiple companies 2012 data is preliminary and includes an estimate of additional filings due to implementation of HB 119 4

5 Number of P&C Form and Rate Filings Submitted to the Office Note: Filings may contain multiple companies 5

6 Forms Organizational Chart Anne Ivory John Avery Carolyn Diggs Weston Walker Mike Burdeshaw Vacant Veronica Myles Laura Jensen James Guminski Jim Kocha Vacant Vacant Has worked less than 1 year in Forms Area as of May 29, 2012 Note: Excludes Workers Compensation Area 6

7 Commercial Forms Order (Filed April 9, 2012) Insurers have the option to certify that forms filed under the lines of business subject to HB 99 comply with all applicable Florida Laws Certifications must be signed by the CEO, President, Chief Compliance Analyst or General Counsel, and notarized When a certification is received, forms will be stamped informational and closed Certification may be used on previously submitted filings as long as the filing has not yet been reviewed or if the review has started, the analyst has not yet found any violations of Florida Statutes 7

8 Commercial Forms Order (cont.) As of May 29 th : 36 filings have been closed with certifications Number of form filings pending: - Commercial 1,254 - Personal Workers Compensation 14 - Total 1,580 8

9 Miscellaneous Form Issues Prominent display of the company name Section (1), Florida Statutes, states, All applications for an insurance policy or annuity contract shall prominently display the name of the insuring entity on the first page of the application form Companies are either not putting the underwriting insurer s name on the form or making it too small to see not prominent This is also happening on policy jackets and declarations pages Incorrect references when amending sections of the policy For example: Section H.5. is amended to read as follows: The actual section may be C.6. Companies are not always checking to be sure their references are accurate 9

10 Miscellaneous Form Issues (cont.) Cancellation language The number of days or reasons permitted do not follow Sections or , Florida Statutes Also, the return of premium for cancellation often has to be amended as well, pursuant to Rule 69O , Florida Administrative Code Companies that regularly file in Florida have to be asked to correct these items, which slows the review process Forms filed in the wrong line of business (subline) Certificates 10

11 Miscellaneous Form Issues (cont.) ISO membership Filing requirements ISO offers several membership levels, and ISO files forms on behalf of certain members. Other members may use ISO forms, but must file the form with the Office. Some companies consistently omit forms which slows the review process. Uninsured Motorist Coverage (Automobile policies) Insurers often file a form that addresses new business, but often forget to include a form addressing the insured s options subsequent to the initial application. 11

12 Miscellaneous Form Issues (cont.) Me too not really OFAC (Office of Foreign Asset Control) 12

13 Miscellaneous Form Issues (cont.) Referencing statutory citations rather than providing complete contract language For example: The stabilization and all other repairs to the covered building must be completed within the time period required by Florida Statute

14 Miscellaneous Form Issues (cont.) Companies are neglecting to insert or are dropping random words from statutorily required language Examples: Pursuant to Section (4), Florida Statutes, a homeowner s insurance policy must include in bold type no smaller than 18 points the following statement: LAW AND ORDINANCE COVERAGE IS AN IMPORTANT COVERAGE THAT YOU MAY WISH TO PURCHASE. YOU MAY ALSO NEED TO CONSIDER THE PURCHASE OF FLOOD INSURANCE FROM THE NATIONAL FLOOD INSURANCE PROGRAM. WITHOUT THIS COVERAGE, YOU MAY HAVE UNCOVERED LOSSES. PLEASE DISCUSS THESE COVERAGES WITH YOUR INSURANCE AGENT. 14

15 Miscellaneous Form Issues (cont.) Pursuant to Section (3), Florida Statutes, insurers offering policies that exclude coverage for sinkhole losses must inform policyholders in bold type of not less than 14 points as follows: YOUR POLICY PROVIDES COVERAGE FOR A CATASTROPHIC GROUND COVER COLLAPSE THAT RESULTS IN THE PROPERTY BEING CONDEMNED AND UNINHABITABLE. OTHERWISE, YOUR POLICY DOES NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU MAY PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM. 15

16 Sinkhole Coverage Structural Damage Only vs. Physical Loss Caused by Structural Damage 16

17 HB 1101 Approved by Governor on 4/24/2012 Sinkhole Lines Effective 7/1/2012, added a definition of "rebate." Motor Vehicle Insurance Contracts (4) Lines Effective upon becoming law, cancellation during the first 60 days of a new policy may not be for nonpayment unless it is a result of the issuance of a check for the premium that is dishonored for any reason or any other type of premium payment that was subsequently determined to be rejected or invalid. (Amended the effects of HB 1087.) PIP Insurers' Right of Reimbursement (2) Lines Effective 7/1/2012, for accidents specified in the PIP statutes arising from a commercial vehicle, the right of reimbursement specified does not apply to the owner or registrant identified in (1)(b) taxicabs. 17

18 HB 119 7/1/2012 PIP Notice See Informational Memorandum OIR-12-02M issued May 4, 2012, for sample endorsement language o 18

19 Memorandum OIR-12-02M 19

20 Sample Fee Schedule Endorsement 20

21 Sinkhole Policy Sublimit Insurer proposed a sublimit of 25% of the Coverage A limit Not permitted under current law Currently pending in 1 st DCA 21

22 Readable Language In Insurance Policies Section , Florida Statutes Readable if: Text achieves a minimum score of 45 Other criteria (layout and spacing, titles in bold face type, avoidance of complicated or obscure words, inclusion of a table of contents or index, etc.) The Office may authorize a lower score 22

23 Questions? 23