Florida Regulations 69O-170.007: Annual Rate Filings
Current as of: 2024 | Check for updates
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(1)(a) This rule applies to each insurer or rating organization subject to Florida Statutes § 627.0645
(b)1. Commercial Multiple Line insurance, for purposes of this rule, is defined as insurance that includes a combination of one or more property lines of insurance, e.g., fire and allied lines, and one or more casualty lines of insurance, e.g., general liability, burglary and theft.
2. Commercial Multiple Line insurance shall be interpreted as being the same as Commercial Multiple Peril insurance.
3. Commercial Multiple Line insurance or Commercial Multiple Peril insurance which is written on an indivisible premium basis is subject to this rule.
4. Divisible premium Commercial Multiple Peril policies shall not be subject to this rule.
(c) A base rate filing considers the overall rate level and individual components of a line or subline being reviewed, although all are not necessarily revised in a base rate filing. A base rate filing may include, for example, a package modification factor.
(d) For purposes of identifying filings submitted to the Office, a line of business shall be identified by one of the following, although additional identification may be used as needed:
1. Commercial Multiple Peril Policy (with indivisible premium),
2. Dwelling Fire and Liability,
3. Homeowners,
4. Mobile Homeowners,
5. Motor Home and Motorcycle,
6. Personal Inland Marine,
7. Personal Liability; and,
8. Private Passenger Automobile.
(2) Each insurer or each rating organization filing rates for one or more insurers shall make annual base rate filings with the Office for each line or subline of insurance no later than 12 months after its previous certification or base rate filing effective date for new business.
(3)(a) Filings shall be submitted in accordance with the requirements of this rule.
1. Filings submitted in accordance with paragraph (4)(a), below, shall demonstrate that the rates filed are not excessive, inadequate, or unfairly discriminatory, and
2. Filings submitted in accordance with paragraph (4)(b), below, shall demonstrate that the rates are actuarially sound and not inadequate.
(b)1. The filings required by this rule shall be on an individual insurer basis unless the rates for insurers within a group are derived from the pooled experience of those insurers.
2. If the rates for more than one insurer within a group are derived from pooled experience, then the filing may be made on a multiple insurer basis but the cover letter for the filing shall explicitly state what the rates are and what insurers are included in the group. Insurers may submit a filing on behalf of any combination of insurers within the insurers’ group, provided the effective dates are identical for every insurer and program identified in the filing.
(c)1. The insurer shall submit all filings to the Office at https://iportal.fldfs.com, the industry portal to the Office’s I-File System, as adopted in Fl. Admin. Code R. 69O-170.0155
2. A filing shall be considered received by the Office on business days between the hours of 8:00 a.m. and 5:00 p.m. eastern time. Filings received after 5:00 p.m. shall be considered to be received the next business day.
(4) The filing required by this rule shall be satisfied by either paragraph (a) or (b), below:
(a) A rate filing prepared by or under the direct supervision of an actuary. The filing shall be signed by the actuary and shall contain documentation demonstrating that the proposed rates are not excessive, inadequate, or unfairly discriminatory, and be submitted pursuant to Fl. Admin. Code R. 69O-170.013
(b)1. If no rate change is proposed, a filing which consists of a certification by an actuary that the existing rate level produces rates which are actuarially sound and which are not inadequate.
2. Form OIR-B1-582, “”Universal Standardized Data Letter,”” as adopted in Fl. Admin. Code R. 69O-170.0155
3. Form OIR-B1-586, “”Florida Property and Casualty – Annual Rate Filings Certification,”” as adopted in Fl. Admin. Code R. 69O-170.0155
4. The data shall be on a direct basis.
(c) If an insurer does not employ or otherwise retain the services of an actuary, as defined by Florida Statutes § 627.0645(8), the filing under paragraph (a) or (b), above, shall:
1. Be prepared by a person meeting the requirements of Florida Statutes § 627.0645(5), herein referred to as a qualified ratemaker.
2. Be reviewed and signed by an employee of the insurer who is authorized to approve rate filings.
3. Include detailed information on the preparer’s experience to demonstrate compliance with Florida Statutes § 627.0645(5)
4. Include a certification of an officer of the insurer that the insurer does not employ or otherwise retain the services of an actuary.
5. If the submission does not contain the material required by this paragraph (c), it will result in the Office’s issuance of a Notice of Intent to disapprove.
(d)1. For purposes of this rule, a prospective loss cost filing, using the most recently approved loss costs, submitted to the Office by a duly authorized rating organization, may be considered as part of a base rate filing.
2. The factors for converting loss costs to rates shall be filed by the submitting insurer and approved by the Office.
3. All deviations from a rating or advisory organization’s loss costs are to be certified or adequately supported.
4. An insurer may choose:
a. To file and distribute final rate pages,
b. To file or reference loss cost pages filed and distributed by a rating organization, or
c. To file loss cost pages distributed by an advisory organization plus the insurer’s factors used to convert the prospective loss costs to rates.
5. An insurer shall use Form OIR-B1-583, “”Florida Expense Supplement Calculation of Insurer Loss Cost Multiplier,”” as adopted in Fl. Admin. Code R. 69O-170.0155, in filing the factors to convert a rating or advisory organization’s prospective loss costs to rates and shall comply with Fl. Admin. Code R. 69O-170.013
(e)1. A request for exemption pursuant to Section 627.0645(2)(b), F.S., shall include Form OIR-B1-584, “”Florida Property and Casualty – Annual Rate Filing-Exemption,”” as adopted in Fl. Admin. Code R. 69O-170.0155 and shall be submitted through https://iportal.fldfs.com.
2. The exemption shall remain in effect for as long as there is not an increase in premium volume.
(5) A request for extension meeting the conditions of Florida Statutes § 627.0645(6), will be approved automatically upon receipt.
Rulemaking Authority 624.308, 624.424(1)(c) FS. Law Implemented 624.307, 624.418(2), 624.4211, 624.424(1)(c), 627.021, 627.062, 627.0645, 627.0651, 627.221, 627.301 FS. History-New 12-25-90, Formerly 4-72.007, Amended 1-27-92, 3-9-93, 9-7-93, 12-17-00, Formerly 4-170.009, Amended 9-5-07, 7-30-17.
(b)1. Commercial Multiple Line insurance, for purposes of this rule, is defined as insurance that includes a combination of one or more property lines of insurance, e.g., fire and allied lines, and one or more casualty lines of insurance, e.g., general liability, burglary and theft.
2. Commercial Multiple Line insurance shall be interpreted as being the same as Commercial Multiple Peril insurance.
3. Commercial Multiple Line insurance or Commercial Multiple Peril insurance which is written on an indivisible premium basis is subject to this rule.
4. Divisible premium Commercial Multiple Peril policies shall not be subject to this rule.
(c) A base rate filing considers the overall rate level and individual components of a line or subline being reviewed, although all are not necessarily revised in a base rate filing. A base rate filing may include, for example, a package modification factor.
(d) For purposes of identifying filings submitted to the Office, a line of business shall be identified by one of the following, although additional identification may be used as needed:
1. Commercial Multiple Peril Policy (with indivisible premium),
2. Dwelling Fire and Liability,
3. Homeowners,
4. Mobile Homeowners,
5. Motor Home and Motorcycle,
6. Personal Inland Marine,
7. Personal Liability; and,
8. Private Passenger Automobile.
(2) Each insurer or each rating organization filing rates for one or more insurers shall make annual base rate filings with the Office for each line or subline of insurance no later than 12 months after its previous certification or base rate filing effective date for new business.
(3)(a) Filings shall be submitted in accordance with the requirements of this rule.
1. Filings submitted in accordance with paragraph (4)(a), below, shall demonstrate that the rates filed are not excessive, inadequate, or unfairly discriminatory, and
2. Filings submitted in accordance with paragraph (4)(b), below, shall demonstrate that the rates are actuarially sound and not inadequate.
(b)1. The filings required by this rule shall be on an individual insurer basis unless the rates for insurers within a group are derived from the pooled experience of those insurers.
2. If the rates for more than one insurer within a group are derived from pooled experience, then the filing may be made on a multiple insurer basis but the cover letter for the filing shall explicitly state what the rates are and what insurers are included in the group. Insurers may submit a filing on behalf of any combination of insurers within the insurers’ group, provided the effective dates are identical for every insurer and program identified in the filing.
(c)1. The insurer shall submit all filings to the Office at https://iportal.fldfs.com, the industry portal to the Office’s I-File System, as adopted in Fl. Admin. Code R. 69O-170.0155
2. A filing shall be considered received by the Office on business days between the hours of 8:00 a.m. and 5:00 p.m. eastern time. Filings received after 5:00 p.m. shall be considered to be received the next business day.
(4) The filing required by this rule shall be satisfied by either paragraph (a) or (b), below:
(a) A rate filing prepared by or under the direct supervision of an actuary. The filing shall be signed by the actuary and shall contain documentation demonstrating that the proposed rates are not excessive, inadequate, or unfairly discriminatory, and be submitted pursuant to Fl. Admin. Code R. 69O-170.013
(b)1. If no rate change is proposed, a filing which consists of a certification by an actuary that the existing rate level produces rates which are actuarially sound and which are not inadequate.
2. Form OIR-B1-582, “”Universal Standardized Data Letter,”” as adopted in Fl. Admin. Code R. 69O-170.0155
3. Form OIR-B1-586, “”Florida Property and Casualty – Annual Rate Filings Certification,”” as adopted in Fl. Admin. Code R. 69O-170.0155
4. The data shall be on a direct basis.
(c) If an insurer does not employ or otherwise retain the services of an actuary, as defined by Florida Statutes § 627.0645(8), the filing under paragraph (a) or (b), above, shall:
1. Be prepared by a person meeting the requirements of Florida Statutes § 627.0645(5), herein referred to as a qualified ratemaker.
2. Be reviewed and signed by an employee of the insurer who is authorized to approve rate filings.
3. Include detailed information on the preparer’s experience to demonstrate compliance with Florida Statutes § 627.0645(5)
4. Include a certification of an officer of the insurer that the insurer does not employ or otherwise retain the services of an actuary.
5. If the submission does not contain the material required by this paragraph (c), it will result in the Office’s issuance of a Notice of Intent to disapprove.
(d)1. For purposes of this rule, a prospective loss cost filing, using the most recently approved loss costs, submitted to the Office by a duly authorized rating organization, may be considered as part of a base rate filing.
2. The factors for converting loss costs to rates shall be filed by the submitting insurer and approved by the Office.
3. All deviations from a rating or advisory organization’s loss costs are to be certified or adequately supported.
4. An insurer may choose:
a. To file and distribute final rate pages,
b. To file or reference loss cost pages filed and distributed by a rating organization, or
c. To file loss cost pages distributed by an advisory organization plus the insurer’s factors used to convert the prospective loss costs to rates.
5. An insurer shall use Form OIR-B1-583, “”Florida Expense Supplement Calculation of Insurer Loss Cost Multiplier,”” as adopted in Fl. Admin. Code R. 69O-170.0155, in filing the factors to convert a rating or advisory organization’s prospective loss costs to rates and shall comply with Fl. Admin. Code R. 69O-170.013
(e)1. A request for exemption pursuant to Section 627.0645(2)(b), F.S., shall include Form OIR-B1-584, “”Florida Property and Casualty – Annual Rate Filing-Exemption,”” as adopted in Fl. Admin. Code R. 69O-170.0155 and shall be submitted through https://iportal.fldfs.com.
2. The exemption shall remain in effect for as long as there is not an increase in premium volume.
(5) A request for extension meeting the conditions of Florida Statutes § 627.0645(6), will be approved automatically upon receipt.
Rulemaking Authority 624.308, 624.424(1)(c) FS. Law Implemented 624.307, 624.418(2), 624.4211, 624.424(1)(c), 627.021, 627.062, 627.0645, 627.0651, 627.221, 627.301 FS. History-New 12-25-90, Formerly 4-72.007, Amended 1-27-92, 3-9-93, 9-7-93, 12-17-00, Formerly 4-170.009, Amended 9-5-07, 7-30-17.