Florida Regulations 69O-141.020: Procedures for Withdrawal, Surrender of Certificate of Authority, or Discontinuance of Writing Insurance in this State Pursuant to Section 624.430, Florida Statutes
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(1) Scope and Purpose. This rule provides implementation procedures and Office policy regarding Florida Statutes § 624.430
(2) Definitions.
(a) “”Office”” refers to the Office of Insurance Regulation.
(b) “”Reduce presence in Florida,”” “”Reduce,”” and “”Reduction,”” as used in this rule, are inclusive terms meant to collectively refer to any and all of the following actions as may be desired or taken by an insurer: to surrender its Florida certificate of authority; to withdraw from Florida; or to discontinue the writing of any one or multiple lines or kinds of insurance in Florida.
(c) “”Kinds”” of insurance, as used in Florida Statutes § 624.430, and this rule, includes the kinds set out in Florida Statutes § 624.6011, which kinds of insurance are as follows: Life; Health; Property; Casualty; Surety; Marine; and Title.
(d) “”Lines of insurance,”” as used in Florida Statutes § 624.430, and this rule, is as defined in Florida Statutes § 624.6012 Pursuant to the express rulemaking authority given the Office in Florida Statutes § 624.6012, for the purpose of implementation of Florida Statutes § 624.430, the Office determines each of the following to be a line of insurance (in addition to lines of insurance as may be elsewhere established by rule of the Office): Homeowners property insurance; mobile homeowners property insurance; condo unit owners contents insurance; renter’s/dwellers contents insurance; and residential condominium association property coverages.
(3) Actions Having the Substantial Effect of a Withdrawal or Discontinuance of Writing Insurance in this State. Reductions subject to Florida Statutes § 624.430, include any action or actions the reasonably foreseeable substantial effect of which is, or will be when the action is completed, to have discontinued the writing of a kind or line of insurance or to have withdrawn from Florida. “”Substantial effect”” means that, for example, the continuance of a token amount of writing in Florida will not prevent a conclusion that a reduction subject to Florida Statutes § 624.430, has or will occur. Furthermore, it is not determinative of the existence of a reduction requiring notice under Florida Statutes § 624.430, that the action is taken in a single step, or by a series of steps over time, if the reasonably foreseeable effect of the action or actions is or will to be to have substantially effected a reduction. The application of Florida Statutes § 624.430, does not depend upon the insurer’s subjective statement of desire or intent as to the effect of its actions.
(4) The Office interprets the requirement of notice as authorizing the Office to prohibit the withdrawal, surrender, or discontinuance of writing, when such withdrawal, surrender, or discontinuance of writing is done in violation of any law or rule.
(5) Notice to Precede Action to Reduce Presence in Florida. An insurer shall take no action in furtherance of a reduction, prior to the expiration of 90 days after the receipt by the Office of the notice required by Florida Statutes § 624.430 Prohibited actions include sending any notice of cancellation of termination, or notice of intent to cancel or terminate, to any policyholder, agent, managing general agent, reinsurer, or other person or entity.
(6) Procedure for Providing Notice of Reduction.
(a) Format of Notice. The notice required under Florida Statutes § 624.430(1), shall be in the form of a letter, on the letterhead of the insurer, dated and signed by an officer of the insurer. The letter shall begin with the following language after the salutation: “”This constitutes the notice required by Florida Statutes § 624.430, of this insurer’s desire to _____,”” where the blank space is filled in as applicable with “”surrender its certificate of authority,”” or “”withdraw from the state,”” or “”discontinue writing one or more lines of insurance.””
(b) Copies. The notice shall consist of an original and two complete copies of the notice and all attachments.
(c) Designated Filing Office. The letter of notice with the two copies shall be addressed to and delivered by certified or registered mail to the following address: Insurance Commissioner, Office of Insurance Regulation, 200 East Gaines Street, Tallahassee, FL 32399-0326. There shall be no constructive receipt of the notice by the above-designated filing office, other than upon receipt by the Office’s mail room in the usual course of business, of a properly addressed notice by U.S. mail. The 90 days shall not begin to run until a properly addressed notice, in a form substantially complying with this rule, is received by the Office, by U.S. mail.
(d) Incomplete Notices; Notices Not in Proper Format. Notices that are incomplete or not in proper format shall be summarily returned and are not effective as notice under Florida Statutes § 624.430
(e) Contents of Notice.
1. If the notice is of discontinuance of writing one or more lines in this state, it shall specify the lines to be discontinued.
2. The notice shall specify the desired timetable of events related to the desired reduction.
3. The notice shall specify in detail the reason for the proposed action.
4. Insurers shall also provide the Office with the following information in the notice:
a. A listing of all lines of insurance the insurer then has in force in Florida which will be affected by the reduction, and for each line, a statement of the approximate number of policies and dollars of premium then in force in Florida and which will be affected by the desired reduction.
b. A description of what notice and treatment will be given by the insurer to its affected Florida policyholders concerning the reduction; and what steps will be taken by the insurer regarding processing of any outstanding covered claims of such policyholders while and after the insurer accomplishes its reduction.
c. A description of projected impact of the reduction upon the insurer’s Florida agent and agency force, if any. In addition to any other information related to the impact on agents, the insurer shall state the number of affected agents and give a brief description of what they are being told.
d. A description of any reduction or discontinuation of writings in any other state or states.
(7) Office Action Upon Receipt of Notice.
(a) Subsequent to receiving the initial filing, the Office will request the insurer to provide further information, or will conduct such other investigation as is necessary to determine whether the initial information provided is accurate and whether the proposed action will have the effects projected by the insurer.
(b) The Office shall inform the insurer if the proposed reduction would be in violation of, or cause a violation of, any provision of the Insurance Code or rule of the Office. Within 5 calendar days of the date of such notice, the insurer shall file with the Office a response indicating whether it will proceed to implement the reduction.
(8) Notwithstanding Fl. Admin. Code R. 69O-167.001, when an insurer withdraws from a line of business resulting in the cancellation of residential property insurance policies, the insurer must return to the insured, within fifteen (15) working days of the postmark date of the cancellation notice, the gross unearned premium corresponding to coverage beyond the effective date of the cancellation.
Rulemaking Authority 624.308(1), 624.6012 FS. Law Implemented 624.307(1), 624.430, 624.6011, 624.6012 FS. History-New 1-8-96, Amended 5-26-96, Formerly 4-141.020, Amended 9-14-06.
Terms Used In Florida Regulations 69O-141.020
- Continuance: Putting off of a hearing ot trial until a later time.
(a) “”Office”” refers to the Office of Insurance Regulation.
(b) “”Reduce presence in Florida,”” “”Reduce,”” and “”Reduction,”” as used in this rule, are inclusive terms meant to collectively refer to any and all of the following actions as may be desired or taken by an insurer: to surrender its Florida certificate of authority; to withdraw from Florida; or to discontinue the writing of any one or multiple lines or kinds of insurance in Florida.
(c) “”Kinds”” of insurance, as used in Florida Statutes § 624.430, and this rule, includes the kinds set out in Florida Statutes § 624.6011, which kinds of insurance are as follows: Life; Health; Property; Casualty; Surety; Marine; and Title.
(d) “”Lines of insurance,”” as used in Florida Statutes § 624.430, and this rule, is as defined in Florida Statutes § 624.6012 Pursuant to the express rulemaking authority given the Office in Florida Statutes § 624.6012, for the purpose of implementation of Florida Statutes § 624.430, the Office determines each of the following to be a line of insurance (in addition to lines of insurance as may be elsewhere established by rule of the Office): Homeowners property insurance; mobile homeowners property insurance; condo unit owners contents insurance; renter’s/dwellers contents insurance; and residential condominium association property coverages.
(3) Actions Having the Substantial Effect of a Withdrawal or Discontinuance of Writing Insurance in this State. Reductions subject to Florida Statutes § 624.430, include any action or actions the reasonably foreseeable substantial effect of which is, or will be when the action is completed, to have discontinued the writing of a kind or line of insurance or to have withdrawn from Florida. “”Substantial effect”” means that, for example, the continuance of a token amount of writing in Florida will not prevent a conclusion that a reduction subject to Florida Statutes § 624.430, has or will occur. Furthermore, it is not determinative of the existence of a reduction requiring notice under Florida Statutes § 624.430, that the action is taken in a single step, or by a series of steps over time, if the reasonably foreseeable effect of the action or actions is or will to be to have substantially effected a reduction. The application of Florida Statutes § 624.430, does not depend upon the insurer’s subjective statement of desire or intent as to the effect of its actions.
(4) The Office interprets the requirement of notice as authorizing the Office to prohibit the withdrawal, surrender, or discontinuance of writing, when such withdrawal, surrender, or discontinuance of writing is done in violation of any law or rule.
(5) Notice to Precede Action to Reduce Presence in Florida. An insurer shall take no action in furtherance of a reduction, prior to the expiration of 90 days after the receipt by the Office of the notice required by Florida Statutes § 624.430 Prohibited actions include sending any notice of cancellation of termination, or notice of intent to cancel or terminate, to any policyholder, agent, managing general agent, reinsurer, or other person or entity.
(6) Procedure for Providing Notice of Reduction.
(a) Format of Notice. The notice required under Florida Statutes § 624.430(1), shall be in the form of a letter, on the letterhead of the insurer, dated and signed by an officer of the insurer. The letter shall begin with the following language after the salutation: “”This constitutes the notice required by Florida Statutes § 624.430, of this insurer’s desire to _____,”” where the blank space is filled in as applicable with “”surrender its certificate of authority,”” or “”withdraw from the state,”” or “”discontinue writing one or more lines of insurance.””
(b) Copies. The notice shall consist of an original and two complete copies of the notice and all attachments.
(c) Designated Filing Office. The letter of notice with the two copies shall be addressed to and delivered by certified or registered mail to the following address: Insurance Commissioner, Office of Insurance Regulation, 200 East Gaines Street, Tallahassee, FL 32399-0326. There shall be no constructive receipt of the notice by the above-designated filing office, other than upon receipt by the Office’s mail room in the usual course of business, of a properly addressed notice by U.S. mail. The 90 days shall not begin to run until a properly addressed notice, in a form substantially complying with this rule, is received by the Office, by U.S. mail.
(d) Incomplete Notices; Notices Not in Proper Format. Notices that are incomplete or not in proper format shall be summarily returned and are not effective as notice under Florida Statutes § 624.430
(e) Contents of Notice.
1. If the notice is of discontinuance of writing one or more lines in this state, it shall specify the lines to be discontinued.
2. The notice shall specify the desired timetable of events related to the desired reduction.
3. The notice shall specify in detail the reason for the proposed action.
4. Insurers shall also provide the Office with the following information in the notice:
a. A listing of all lines of insurance the insurer then has in force in Florida which will be affected by the reduction, and for each line, a statement of the approximate number of policies and dollars of premium then in force in Florida and which will be affected by the desired reduction.
b. A description of what notice and treatment will be given by the insurer to its affected Florida policyholders concerning the reduction; and what steps will be taken by the insurer regarding processing of any outstanding covered claims of such policyholders while and after the insurer accomplishes its reduction.
c. A description of projected impact of the reduction upon the insurer’s Florida agent and agency force, if any. In addition to any other information related to the impact on agents, the insurer shall state the number of affected agents and give a brief description of what they are being told.
d. A description of any reduction or discontinuation of writings in any other state or states.
(7) Office Action Upon Receipt of Notice.
(a) Subsequent to receiving the initial filing, the Office will request the insurer to provide further information, or will conduct such other investigation as is necessary to determine whether the initial information provided is accurate and whether the proposed action will have the effects projected by the insurer.
(b) The Office shall inform the insurer if the proposed reduction would be in violation of, or cause a violation of, any provision of the Insurance Code or rule of the Office. Within 5 calendar days of the date of such notice, the insurer shall file with the Office a response indicating whether it will proceed to implement the reduction.
(8) Notwithstanding Fl. Admin. Code R. 69O-167.001, when an insurer withdraws from a line of business resulting in the cancellation of residential property insurance policies, the insurer must return to the insured, within fifteen (15) working days of the postmark date of the cancellation notice, the gross unearned premium corresponding to coverage beyond the effective date of the cancellation.
Rulemaking Authority 624.308(1), 624.6012 FS. Law Implemented 624.307(1), 624.430, 624.6011, 624.6012 FS. History-New 1-8-96, Amended 5-26-96, Formerly 4-141.020, Amended 9-14-06.