Florida Regulations 69O-149.007: Annual Rate Certification (ARC) Filing Procedures
Current as of: 2024 | Check for updates
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(1) This rule applies to filings made pursuant to Section 627.410(7)(b)2., F.S., in which no rate change is proposed.
(2) The filings required by this rule shall be on an individual company basis.
(3) This rule is not applicable for Medicare supplement coverage. Medicare supplement forms are subject to Fl. Admin. Code R. 69O-149.003
(4) Non-cancellable coverages which are no longer available for sale and which have not been sold or marketed for at least 5 years and are in compliance with the reasonableness standards of Fl. Admin. Code R. 69O-149.005, shall be exempt from the filing requirements of this rule. If a company is subsequently discovered not to have met the standards, they shall, in addition to other administrative remedies, be required to enhance benefits and make premium refunds to bring the form into full compliance with the loss ratio standards of Fl. Admin. Code R. 69O-149.005
(5) An ARC filing shall consist of:
(a) A cover letter indicating the nature of the filing;
(b) Form OIR-B2-1507, as adopted in Fl. Admin. Code R. 69O-149.022; and,
(c) A certification by an actuary, in accordance with subFl. Admin. Code R. 69O-149.006(3)(b)28. For policies subject to the provisions of Part II of Fl. Admin. Code Chapter 69O-157, the certification in accordance with Fl. Admin. Code R. 69O-157.108(1)(c), is required.
(6) A filing shall include only forms that are pooled together for rating purposes as provided by subsection 69O-149.003(1), F.A.C. Separate filings shall be made for separate rating pools.
(7) For noncredible blocks of business on a nationwide basis, the company may request a waiver of the requirement. The request shall be made annually and be accompanied by a letter indicating the nature of the filing, the type of product, and the reason for the request.
(8) When a company using a current rate schedule is unable to demonstrate that the minimum loss ratio standards in Fl. Admin. Code R. 69O-149.005, are met, it shall make a rate filing with the Office pursuant to Fl. Admin. Code R. 69O-149.003, to reduce rates, enhance benefits, make refunds, or a combination of these to satisfy the standards.
(a) A company may make a certification in compliance with this rule without such change to benefits, refunds, or premiums if the A/E ratio for the past experience periods are, both in pattern and aggregate value, consistently at or in excess of .85; or
(b) For rating pools that are not fully credible, the company may make a certification in compliance with this rule if both the lifetime A/E ratio and the future A/E ratio are at or in excess of .85 when assuming best estimate assumptions in determining projected values.
(c) If the certification in paragraph (a) or (b), is unable to be made, and the company has been in compliance with these rules, the company shall make a rate filing pursuant to Fl. Admin. Code R. 69O-149.003, to reduce rates, enhance benefits, make refunds, or a combination of these which shall target a future A/E ratio of at least 1.0.
(9) A company may request exemption from all future ARC filings upon demonstration that the form or rating pool consists only of policy forms which are no longer available for sale; and,
(a) The company has no other form with similar benefits that is currently available for sale;
(b) The accumulated experience from inception to date exceeds the required lifetime loss ratio standard for the form;
(c) The present value of future premiums is less than 10 percent of the accumulated value of past earned premiums or the data is 0 percent credible; and,
(d) The company certifies that it will not increase premiums in the future.
(10) All filings made pursuant to this rule shall be on a company distinct basis and submitted electronically to http://www.floir.com/iportal.
Rulemaking Authority 624.308 FS. Law Implemented Florida Statutes § 627.410. History-New 5-14-92, Amended 11-20-02, Formerly 4-149.007, Amended 5-18-04, 11-2-06.
(2) The filings required by this rule shall be on an individual company basis.
(3) This rule is not applicable for Medicare supplement coverage. Medicare supplement forms are subject to Fl. Admin. Code R. 69O-149.003
(4) Non-cancellable coverages which are no longer available for sale and which have not been sold or marketed for at least 5 years and are in compliance with the reasonableness standards of Fl. Admin. Code R. 69O-149.005, shall be exempt from the filing requirements of this rule. If a company is subsequently discovered not to have met the standards, they shall, in addition to other administrative remedies, be required to enhance benefits and make premium refunds to bring the form into full compliance with the loss ratio standards of Fl. Admin. Code R. 69O-149.005
(5) An ARC filing shall consist of:
(a) A cover letter indicating the nature of the filing;
(b) Form OIR-B2-1507, as adopted in Fl. Admin. Code R. 69O-149.022; and,
(c) A certification by an actuary, in accordance with subFl. Admin. Code R. 69O-149.006(3)(b)28. For policies subject to the provisions of Part II of Fl. Admin. Code Chapter 69O-157, the certification in accordance with Fl. Admin. Code R. 69O-157.108(1)(c), is required.
(6) A filing shall include only forms that are pooled together for rating purposes as provided by subsection 69O-149.003(1), F.A.C. Separate filings shall be made for separate rating pools.
(7) For noncredible blocks of business on a nationwide basis, the company may request a waiver of the requirement. The request shall be made annually and be accompanied by a letter indicating the nature of the filing, the type of product, and the reason for the request.
(8) When a company using a current rate schedule is unable to demonstrate that the minimum loss ratio standards in Fl. Admin. Code R. 69O-149.005, are met, it shall make a rate filing with the Office pursuant to Fl. Admin. Code R. 69O-149.003, to reduce rates, enhance benefits, make refunds, or a combination of these to satisfy the standards.
(a) A company may make a certification in compliance with this rule without such change to benefits, refunds, or premiums if the A/E ratio for the past experience periods are, both in pattern and aggregate value, consistently at or in excess of .85; or
(b) For rating pools that are not fully credible, the company may make a certification in compliance with this rule if both the lifetime A/E ratio and the future A/E ratio are at or in excess of .85 when assuming best estimate assumptions in determining projected values.
(c) If the certification in paragraph (a) or (b), is unable to be made, and the company has been in compliance with these rules, the company shall make a rate filing pursuant to Fl. Admin. Code R. 69O-149.003, to reduce rates, enhance benefits, make refunds, or a combination of these which shall target a future A/E ratio of at least 1.0.
(9) A company may request exemption from all future ARC filings upon demonstration that the form or rating pool consists only of policy forms which are no longer available for sale; and,
(a) The company has no other form with similar benefits that is currently available for sale;
(b) The accumulated experience from inception to date exceeds the required lifetime loss ratio standard for the form;
(c) The present value of future premiums is less than 10 percent of the accumulated value of past earned premiums or the data is 0 percent credible; and,
(d) The company certifies that it will not increase premiums in the future.
(10) All filings made pursuant to this rule shall be on a company distinct basis and submitted electronically to http://www.floir.com/iportal.
Rulemaking Authority 624.308 FS. Law Implemented Florida Statutes § 627.410. History-New 5-14-92, Amended 11-20-02, Formerly 4-149.007, Amended 5-18-04, 11-2-06.