Personal Lines Forms Certifications Face Uncertain Future
Under orders issued by the Office of Insurance Regulation last year, property and casualty insurers may certify their product forms’ compliance with the insurance code as an alternative to submitting them to the OIR for prior review and approval. The OIR’s most recent order, issued in December 2012 and numbered 130176-12, covers both commercial and personal property and casualty insurance but excludes workers’ compensation. By its terms, the order expires June 24, 2013.
In the 2013 legislative session, the Florida legislature adopted section 627.4102 as a new statute as part of SB 468. The Governor signed this bill into law and it subsequently became known as chapter law 2013-66. The new statute continues the forms certification process as to commercial property and casualty insurance forms, but it does not apply to personal lines forms (or workers’ compensation). The chapter law provides that it supersedes the OIR’s prior orders, although the reason for this statement is unclear because the latest order expires June 24 and the new law does not take effect until July 1. Last week several media sources reported that the OIR is evaluating whether it will issue any new or extended orders. However, a representative of the OIR indicated that it has not yet decided whether to do so. Absent a new or extended order covering personal lines insurance, insurers’ ability to certify personal residential forms will expire Monday.