The Florida Financial Services Commission took further steps to implement the insurance reforms Gov. Charlie Crist has called for and the House and Senate passed into law during the January special session.
Florida Insurance Commissioner Kevin McCarty presented two rules to the FSC that were adopted by unanimous vote.
“Governor Crist and the legislature promised Floridians insurance reform, and they delivered,” said McCarty. “The rules adopted today (May 1) will help the Office of Insurance Regulation ensure that hurricane claims are paid in a timely manner and that all future rate filings are signed by company executives swearing under oath that the information in the filings is true and accurate.”
The first rule provides standard requirements for insurance companies to report to the OIR in the event of a declared catastrophe.
“The point of having insurance companies report their losses promptly after a natural disaster is to ensure the OIR’s ability to make sure claims are paid to policyholders in a timely fashion,” said McCarty.
In the past, the OIR has gathered this information by emergency rule, but having a standardized reporting format in a permanent rule is expected to greatly reduce the submission of incorrect company data, while also allowing the information to be processed and disseminated more quickly to policymakers and interested parties.
The second rule adopts a standard affidavit for insurance company officers and their chief actuary to sign attesting to the accuracy and completeness of each rate filing.
“No longer can companies submit data to this Office requesting a rate increase and when the data is challenged, claim they were not aware of the incorrect or insufficient information,” McCarty said.
The form requires the chief actuary and either the chief executive officer or chief financial officer of the insurance company to swear to and sign the notarized document.
Source: Florida Office of Insurance Regulation
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