Blog
NIMA Adopts “Kentucky Proposal”
NIMA announced in recent days that it has adopted a premium allocation method for distributing surplus lines premium taxes on casualty insurance. A NIMA release indicates that the newly adopted method will streamline the allocation and distribution of surplus lines premium taxes for surplus lines brokers and member states. NIMA believes it remains on track to launch its Surplus Lines …
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The Citizens Decertification Statute
Policyholder groups and other interested parties in recent weeks have been debating various aspects of the coverage provided by Citizens Property Insurance Corporation. These discussions show the challenge of dealing with issues affecting a residual market as large as Citizens in a market as challenging as Florida. In some areas of the state policyholders generally …
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OIR Provides Guidance on PIP Fee Schedule
The Florida Office of Insurance Regulation (OIR) issued Informational Memorandum OIR-12-02M earlier this month providing guidance to insurers and they implement new Personal Injury Protection reforms. The Informational Memorandum coincided with Governor Scott’s signing HB 119 into law. The Informational Memorandum points out that one of the new provisions of the PIP reform requires insurers …
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The Law Behind the Citizens Rate Debate
The rate levels of Citizens Property Insurance Corporation have received considerable attention in recent weeks. Citizens committees have considered the possibility that under current law it should be charging actuarially sound rates for new customers and its capped rates should apply only to existing customers. Although the statutory basis for this approach has been part …
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Citizens Forum to Focus on Depopulation
Citizens Property Insurance Corporation is hosting a forum on June 1, 2012, in Tampa to discuss proposals for depopulation. Accordingly to a recently published agenda, the meeting will concentrate on barriers to depopulation and potential solutions. This will include the adequacy (or lack thereof) of Citizens’ rates as well as issues pertaining to data quality. …
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FHCF Projects Shortfall on 12-Month Basis
The Florida Hurricane Catastrophe Fund (FHCF) Advisory Council has suggested that the fund will have a potential shortfall of $1.75 billion if it is required to attempt to reach its maximum payout within 12 months of an event. The Advisory Council encouraged FHCF Chief Operating Officer Jack Nicholson to seek pre-event financing this year to close this potential gap. Nicholson sought …
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Insurance “Train” Bill Becomes Law
Governor Rick Scott has signed HB 1101 into law, and it has become Chapter Law 2012-151. This is the insurance “train” bill that picked up a wide variety of insurance-related measures as it progressed through the 2012 regular legislative sesion. The new law is varied in its impact on the Florida Insurance Code. It contains …
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Citizens Rates and the Silent Majority
The board of governors of Citizens Property Insurance Corporation considered a proposal Thursday that would have resulted in its charging actuarially appropriate rates for new customers while maintaining the statutorily-imposed glide path for existing customers. The board ultimately decide to give further consideration to the issue before acting. A significant factor in the decision to …
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Florida Seeks Captives
OIR released an announcement on April 25, 2012 touting changes to its captives law after the implementing bill was signed by the Governor. The release noted that existing law had already created provisions authorizing the creation of U.S. domiciled captive insurers by establishing operational criteria and standards. This year’s legislation, House Bill 1101, added new …
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OIR Offers Workshop on Life and Health Reinsurance Collateral Rule
If requested by interested parties, the Florida Office of Insurance Regulation (OIR) will hold a workshop to discuss a proposed rule relating to life and health reinsurance collateral requirements. The Office of Insurance Regulation may allow ceding insurers to take credit for reinsurance with unauthorized reinsurers that do not fully collateralize their programs as long …
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Florida Surplus Lines Service Office to Act as Clearinghouse for NIMA, Inc.
The member states of NIMA, the Non-Admitted Insurance Multi-State Agreement, approved a Premium Tax Clearinghouse services agreement and license agreement, through which NIMA, Inc. contracted with the Florida Surplus Lines Service Office (“FSLSO”) to act as its central clearinghouse for the collection and allocation of surplus lines premium tax payments for multi-state surplus lines policies. …
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FHCF Holds Rule Hearing Today
The Florida Hurricane Catastrophe Fund (FHCF) has a rule hearing scheduled for 9:00 today relating to its reporting and insurer responsibility rules. Administrative rule 19-8.029 pertains to insurer reporting requirements, and rule 19-8.030 sets forth insurer responsibilities. The purpose of the rule hearing is to discuss the rules and receive public input pertaining to the …
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Governor Nixes FHCF Premium Tax Program
Governor Rick Scott has vetoed HB 5505, which would have created a program by which insurers could prepay premium taxes in exchange for future credits, with the proceeds being used to create liquidity for the Florida Hurricane Catastrophe Fund (FHCF). The Governor stated in his veto message that he would not approve the bill because …
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PIP Reform and Other Insurance Bills Head to Governor
Governor Rick Scott was presented with several insurance-related bills on Friday, perhaps most notably including the bill reforming Florida’s Personal Injury Protection (PIP) laws. These bills passed during the recent legislative session. The Governor has 15 days from receipt of the bills to decide whether to sign them into law, allow them to become law …
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Citizens Releases Claims Performance Measures
Citizens Property Insurance Corporation’s claims volume is up but policyholder satisfaction has increased according to claims performance measures through the first quarter of 2012. Based on activity through the first quarter Citizens estimates it will receive First Notice of Loss on approximately 70,000 claims in 2012. This would be an increase over the 66,044 First …
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