OIR Adopts Emergency Rule Implementing Premium Tax Discounts

The Florida Office of Insurance Regulation (OIR) has adopted emergency rule 69OER24-1 implementing a law passed at the end of the 2024 session providing premium discounts for residential policyholders. Under the new law, policyholders will receive discounts in amounts equal to the state premium tax and fire marshal assessments. Insurers will recover the discount amounts through corresponding reductions in their premium tax and state fire marshal assessment obligations.
The new law, codified at Section 624.5108, applies to policies with effective dates between October 1, 2024, and September 30, 2025. The new legislation provides emergency rulemaking authority in light of the relatively short time between the new law’s effective date and insurers’ renewal notice cycles. The OIR’s notice of its emergency rule indicates its intent to inform insurers how the premium reductions deductions are to be listed on the declarations page and the format of required reports. According to the rule, the reductions must be separately stated on the declarations page and must be identified as part of the renewal notice for existing policies or the quote for new business. The rule goes on to specify the premium reductions must “be applied to the entirety of the premium due at the effectuation of the policy term.”
The emergency rule specifies that for consistency, the discounts should be labeled, as applicable:
- Legislative Premium Tax Discount of 1.75% pursuant to section 624.5108(1)(a), F.S.
- Legislative Fire Marshall Assessment Discount of 1.00% pursuant to section 624.5108(1)(b), F.S.
- Legislative Flood Premium Tax Discount of 1.75% pursuant to section 624.5108(1)(c), F.S.
If a policy includes both dwelling coverage and flood coverage, the premium tax discount applies only once to the policy premium. In this case, the discount can be labeled: “Legislative Premium Discount of 1.75% pursuant to section 624.5108(1)(a), F.S.”
OIR also is adopting a form for insurers to use when reporting the amount of discounts provided. The form, which will be numbered OIR-B1-596, will be available on the OIR’s website. It will be due at the same time as insurers’ quarterly and annual reports.
Because OIR has adopted the rule using its emergency authority, it takes effect immediately.