Florida Regulations 69O-166.040: Commercial Property and Casualty Risk Management Plans
Current as of: 2024 | Check for updates
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(1) Each insurer or insurer group offering commercial casualty insurance and/or commercial property insurance covering risks located in this state for which Florida taxable premiums are reported shall develop and make available to its insureds guidelines for risk management plans.
(a) “”Commercial property insurance”” means insurance as defined in Florida Statutes § 624.604, but limited to coverage of commercial risks, excluding windstorm coverage, federal crop insurance, crop hail insurance, the Pollution Liability Insurance Association, and other federal governmental pools and associations.
(b) “”Commercial casualty insurance”” means insurance as defined in Florida Statutes § 624.605, other than workers’ compensation and employer’s liability insurance, but limited to coverage of commercial risks.
(c) “”Guidelines for risk management plans”” are descriptive instructions and criteria for the establishment of risk management plans and deal with one or more specific aspects of risk handling appropriate to one or more insureds.
(d) “”Risk management plans”” are detailed plans for the management of risk specific to one or more insureds.
(e) “”Risk management programs”” include all measures, services, guidelines, and plans established by the insurer for the use of its insureds in the handling of the insured’s risks.
(2) A description of the risk management program including the guidelines for risk management plans developed by a company or group for its insureds shall be in writing and maintained on file by the insurer and shall be available for inspection by the Office.
(3) The existence and availability of the risk management program shall be communicated in writing to the insured both at the time a new policy is issued and at the time an existing policy is renewed. The insured shall at such time be given information covering the description and scope of the risk management program and the availability of guidelines for risk management plans. If requested in writing by the insured, the insurer or insurer group shall develop and provide the insured with guidelines for a risk management plan within 60 days. The guidelines for the risk management plan shall be evidenced by a written document detailing its specific features.
(4) The risk management program shall include the following:
(a) Safety measures, including, as applicable, the following areas:
1. Pollution and environmental hazards;
2. Disease hazards;
3. Accidental occurrences;
4. Fire hazards and fire prevention and detection;
5. Liability for acts from the course of business;
6. Slip and fall hazards;
7. Product injury; and
8. Hazards unique to a particular class or category of insureds.
(b) Training to insureds in safety management techniques.
(c) Safety management counseling services.
(5) A risk management plan may differ in scope and degree from one insured to the next; however, each plan shall be oriented towards the reduction of losses that are typically associated with the given type of risk.
(6) In developing and making available to insureds guidelines for a particular risk management plan, each insurer or insurer group shall ensure that the guidelines:
(a) Are reasonably related to both the type of risk being insured and the goal of the reduction of losses that are typically associated with that type of risk; and
(b) Are clearly distinguished from the insurer or insurer group’s underwriting requirements.
(7) The costs associated with implementation of risk management measures which are required by the insurer as a condition for the acceptance of the risk shall be borne by the insured.
(8) The costs associated with the development of guidelines for risk management plans and the costs of distribution of these guidelines shall be borne by the insurer. Also, the costs of providing any other services available through the insurer’s risk management program to an insured which are not voluntarily requested by the insured shall be borne by the insurer.
(9) The costs of developing a risk management plan or of providing any other services available through an insurer’s risk management program to an insured when voluntarily requested by the insured may be borne by the insurer or the insured at the option of the insurer.
(10) An insurer can provide training to insureds in safety management techniques and safety management counseling services as part of its own operations or it can supply these services with the use of contractual providers. The insurer or insurer group shall ensure that its insureds have reasonable access to such services.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307(1), 627.0625(3) FS. History-New 1-1-89, Formerly 4-75.001, 4-166.040.
(a) “”Commercial property insurance”” means insurance as defined in Florida Statutes § 624.604, but limited to coverage of commercial risks, excluding windstorm coverage, federal crop insurance, crop hail insurance, the Pollution Liability Insurance Association, and other federal governmental pools and associations.
(b) “”Commercial casualty insurance”” means insurance as defined in Florida Statutes § 624.605, other than workers’ compensation and employer’s liability insurance, but limited to coverage of commercial risks.
(c) “”Guidelines for risk management plans”” are descriptive instructions and criteria for the establishment of risk management plans and deal with one or more specific aspects of risk handling appropriate to one or more insureds.
(d) “”Risk management plans”” are detailed plans for the management of risk specific to one or more insureds.
(e) “”Risk management programs”” include all measures, services, guidelines, and plans established by the insurer for the use of its insureds in the handling of the insured’s risks.
(2) A description of the risk management program including the guidelines for risk management plans developed by a company or group for its insureds shall be in writing and maintained on file by the insurer and shall be available for inspection by the Office.
(3) The existence and availability of the risk management program shall be communicated in writing to the insured both at the time a new policy is issued and at the time an existing policy is renewed. The insured shall at such time be given information covering the description and scope of the risk management program and the availability of guidelines for risk management plans. If requested in writing by the insured, the insurer or insurer group shall develop and provide the insured with guidelines for a risk management plan within 60 days. The guidelines for the risk management plan shall be evidenced by a written document detailing its specific features.
(4) The risk management program shall include the following:
(a) Safety measures, including, as applicable, the following areas:
1. Pollution and environmental hazards;
2. Disease hazards;
3. Accidental occurrences;
4. Fire hazards and fire prevention and detection;
5. Liability for acts from the course of business;
6. Slip and fall hazards;
7. Product injury; and
8. Hazards unique to a particular class or category of insureds.
(b) Training to insureds in safety management techniques.
(c) Safety management counseling services.
(5) A risk management plan may differ in scope and degree from one insured to the next; however, each plan shall be oriented towards the reduction of losses that are typically associated with the given type of risk.
(6) In developing and making available to insureds guidelines for a particular risk management plan, each insurer or insurer group shall ensure that the guidelines:
(a) Are reasonably related to both the type of risk being insured and the goal of the reduction of losses that are typically associated with that type of risk; and
(b) Are clearly distinguished from the insurer or insurer group’s underwriting requirements.
(7) The costs associated with implementation of risk management measures which are required by the insurer as a condition for the acceptance of the risk shall be borne by the insured.
(8) The costs associated with the development of guidelines for risk management plans and the costs of distribution of these guidelines shall be borne by the insurer. Also, the costs of providing any other services available through the insurer’s risk management program to an insured which are not voluntarily requested by the insured shall be borne by the insurer.
(9) The costs of developing a risk management plan or of providing any other services available through an insurer’s risk management program to an insured when voluntarily requested by the insured may be borne by the insurer or the insured at the option of the insurer.
(10) An insurer can provide training to insureds in safety management techniques and safety management counseling services as part of its own operations or it can supply these services with the use of contractual providers. The insurer or insurer group shall ensure that its insureds have reasonable access to such services.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307(1), 627.0625(3) FS. History-New 1-1-89, Formerly 4-75.001, 4-166.040.