New Filings For Limited Reinsurance/Financing Costs
By: Karen Asher-Cohen
The Office of Insurance Regulation has created a new filing category on its I-file system to accommodate the new reinsurance cost filings established by HB 1495 (Section 7), which amended section 627.062, Florida Statutes, with a new subsection (2)(k). The new filing is labeled “Limited Reinsurance/Financing Costs” and is available now. It requires less components and contains less interrogatories than a typical, full base rate filing. The new statutory provision provides that an insurer may make the new limited reinsurance filing if, among other things:
- the insurer includes no other changes to its rates;
- has not implemented a rate increase in the six months preceding the filing;
- does not file for a rate increase pursuant to any provision of section 627.062 for six months following the filing; and
- the insurer only makes one such limited reinsurance filing every 12 months.
Because of the six-month prospective prohibition on any rate filing, Mike Milnes, Deputy Director of Property & Casualty Product Review, included the following clarification statement in the Office’s press release on July 2nd: “If an annual rate filing or annual rate certification is due during this six month period, the insurer will not be required to make the filing until six months have expired.”
The OIR held a webinar to further explain the requirements for the filing on July 8, 2009. However, participation in the webinar was not required to make the filing.
For additional information on the new Limited Reinsurance/Financing Costs filing, or HB 1495, please contact any of our Insurance Team.