OIR to Adopt Rule Implementing Closed Claim Reporting Requirement
The Florida Office of Insurance Regulation (OIR) recently indicated it anticipates initiating rulemaking by November 1 with respect to the new closed claim reporting requirement in SB 76 (Chapter Law 2021-77). Adopted in the 2021 legislative session, SB 76 added a new subsection (11) to Section 624.424 governing insurers’ submissions of annual statements. The new requirement mandates that when residential property insurers file their annual statements, they also must submit a supplemental report on closed property insurance claims.
The report must be submitted on a form prescribed by the Financial Services Commission, which is the impetus for the OIR’s expected rulemaking. The reporting form will require insurers to report the following types of information for claims closed during the preceding calendar year, excluding liability claims:
(a) The unique claim identification number.
(b) The type of policy.
(c) The zip code of the property where the claim occurred.
(d) The county where the claim occurred.
(e) The date of loss.
(f) The peril or type of loss, including information about:
- The types of vendors used for mitigation, repair, or replacement; and
- The names of vendors used, if known.
(g) The date the claim was reported to insurer.
(h) The initial date the claim was closed, including information about whether the claim was closed with or without payment.
(i) The date the claim was most recently reopened, if applicable.
(j) The date a supplemental claim was filed, if applicable.
(k) The date the claim was most recently closed, if different from the initial date the claim was closed.
(l) The name of the public adjuster on the claim, if any.
(m) The Florida Bar number and name of the attorney for the claimant, if any.
(n) The total indemnity paid by the insurer.
(o) The total loss adjustment expenses paid by the insurer.
(p) The amount paid for claimant’s attorney fees, if any.
(q) The amount paid in costs for claimant’s attorney’s expenses, including, but not limited to, expert witness fees.
(r) The contingency risk multiplier, if any, that the claimant’s attorney requested to be applied in calculating the attorney fees awarded to the claimant’s attorney.
(s) The contingency risk multiplier, if any, that a court applied in calculating the attorney fees awarded to the claimant’s attorney.
(t) Any other information deemed necessary by the commission to provide the office with the ability to track litigation and claims trends occurring in the property market.