Florida Regulations 69O-170.014: Homeowners Insurance Ratemaking and Rate Filing Procedures
Current as of: 2024 | Check for updates
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(1)(a) This rule shall apply to all homeowners insurance rates filed pursuant to Florida Statutes § 627.062
(b) For purposes of this rule, reference to homeowners insurance shall include mobile homeowners insurance written on homeowners type policies and mobile homeowners insurance written on auto physical damage type policies.
(c) The information required by this rule shall be included as a required component of the filing made pursuant to subsection 69O-170.013(3), F.A.C.
(2) Filing Submittal Requirements:
(a) Each insurer shall file electronically the information required by the I-File System and the Homeowners’ Rate Collection System (HRCS) as adopted in Fl. Admin. Code R. 69O-170.0155, at http://www.floir.com/iportal.
(b) Required supporting documentation referenced in the I-File System and HRCS shall be provided.
(c) Accurate entry of information into the rate indications workbook component of the I-File System will result in an aggregate average statewide rate indication. The accuracy and integrity of the information provided shall be the responsibility of the insurer.
(3) The information identified in subsections (4) through (9) below is submitted within the I-File System and HRCS collection indicated in subparagraph (2)(a)1. above.
(4)(a) Each rate filing shall contain either:
1. Separate rate level indications and support for such indications on a statewide basis for each type of homeowners policy which the insurer writes in Florida; or
2. If a series of homeowner types of policies bear a uniform statewide factor relationship to each other, combined rate level indications and support for such indications on a statewide basis for the total program along with supporting data for the proposed factor relationships between each type of policy.
(b)1. The provisions of this subsection shall apply to all rate filings regardless of whether a filing requests rate changes for one, more than one, or all of the types of policies written.
2. This subsection shall not apply if a rate change is filed in response to law changes which relate to specific types of policies filed.
(5)(a) Each rate filing which proposes changes to base rates as to any policy for which rates vary by territory shall contain either:
1. Separate support by territory for each type of homeowners policy for which a proposed rate change is filed; or
2. If a series of homeowners types of policies include identical territory relativities, support by territory for all types of policies combined.
(b) The provisions of this subsection shall apply to each territory regardless of whether the rate filing requests rate changes for one, more than one, or all territories.
(6) The earned premiums and incurred losses included in the rate level indications shall be direct calendar/accident year or direct fiscal/accident year, Florida-only data.
(7) The expense factors in each homeowners rate filing shall be divided into the following categories:
(a) Commissions and brokerage;
(b) Other acquisition expenses;
(c) General expenses;
(d) Premium taxes;
(e) Miscellaneous licenses and fees;
(f) Reinsurance costs; and
(g) Other expenses.
(8) The cost of reinsurance shall be included as an expense factor and shall consider:
(a) The amount to be paid to the reinsurer;
(b) Ceding commissions to be paid to the insurer by the reinsurer;
(c) Expected reinsurance recoveries; and
(d) Other relevant information specifically relating to cost such as a retrospective profit sharing agreement between the insurer and the reinsurer.
(9) The use of contingent commissions as supporting data for rate changes is prohibited unless:
(a) There is a contractual arrangement between the insurer and its agents concerning the payment of contingent commissions; and
(b) The insurer demonstrates that it is not paying contingent commissions from profits higher than anticipated in its filings.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307, 624.424, 627.062, 627.0645 FS. History-New 8-23-93, Amended 10-3-94, 10-2-96, 3-31-98, 1-25-99, 6-19-03, Formerly 4-170.014, Amended 9-5-07.
(b) For purposes of this rule, reference to homeowners insurance shall include mobile homeowners insurance written on homeowners type policies and mobile homeowners insurance written on auto physical damage type policies.
(c) The information required by this rule shall be included as a required component of the filing made pursuant to subsection 69O-170.013(3), F.A.C.
(2) Filing Submittal Requirements:
(a) Each insurer shall file electronically the information required by the I-File System and the Homeowners’ Rate Collection System (HRCS) as adopted in Fl. Admin. Code R. 69O-170.0155, at http://www.floir.com/iportal.
(b) Required supporting documentation referenced in the I-File System and HRCS shall be provided.
(c) Accurate entry of information into the rate indications workbook component of the I-File System will result in an aggregate average statewide rate indication. The accuracy and integrity of the information provided shall be the responsibility of the insurer.
(3) The information identified in subsections (4) through (9) below is submitted within the I-File System and HRCS collection indicated in subparagraph (2)(a)1. above.
(4)(a) Each rate filing shall contain either:
1. Separate rate level indications and support for such indications on a statewide basis for each type of homeowners policy which the insurer writes in Florida; or
2. If a series of homeowner types of policies bear a uniform statewide factor relationship to each other, combined rate level indications and support for such indications on a statewide basis for the total program along with supporting data for the proposed factor relationships between each type of policy.
(b)1. The provisions of this subsection shall apply to all rate filings regardless of whether a filing requests rate changes for one, more than one, or all of the types of policies written.
2. This subsection shall not apply if a rate change is filed in response to law changes which relate to specific types of policies filed.
(5)(a) Each rate filing which proposes changes to base rates as to any policy for which rates vary by territory shall contain either:
1. Separate support by territory for each type of homeowners policy for which a proposed rate change is filed; or
2. If a series of homeowners types of policies include identical territory relativities, support by territory for all types of policies combined.
(b) The provisions of this subsection shall apply to each territory regardless of whether the rate filing requests rate changes for one, more than one, or all territories.
(6) The earned premiums and incurred losses included in the rate level indications shall be direct calendar/accident year or direct fiscal/accident year, Florida-only data.
(7) The expense factors in each homeowners rate filing shall be divided into the following categories:
(a) Commissions and brokerage;
(b) Other acquisition expenses;
(c) General expenses;
(d) Premium taxes;
(e) Miscellaneous licenses and fees;
(f) Reinsurance costs; and
(g) Other expenses.
(8) The cost of reinsurance shall be included as an expense factor and shall consider:
(a) The amount to be paid to the reinsurer;
(b) Ceding commissions to be paid to the insurer by the reinsurer;
(c) Expected reinsurance recoveries; and
(d) Other relevant information specifically relating to cost such as a retrospective profit sharing agreement between the insurer and the reinsurer.
(9) The use of contingent commissions as supporting data for rate changes is prohibited unless:
(a) There is a contractual arrangement between the insurer and its agents concerning the payment of contingent commissions; and
(b) The insurer demonstrates that it is not paying contingent commissions from profits higher than anticipated in its filings.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307, 624.424, 627.062, 627.0645 FS. History-New 8-23-93, Amended 10-3-94, 10-2-96, 3-31-98, 1-25-99, 6-19-03, Formerly 4-170.014, Amended 9-5-07.