3931718, 69O-149.005 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 3931718

Notice of Meeting/Workshop Hearing

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

OIR – Insurance Regulation

Chapter:

FILING OF FORMS AND RATES FOR LIFE/HEALTH INSURANCE

Overview

RULE:

69O-149.005

Reasonableness of Benefits in Relation to Premiums

The The Financial Services Commission announces a hearing to which all persons are invited.

DATE AND TIME:

PLACE:

Subject:

This is the Final Public Hearing on the adoption of proposed amendments to Rule 69O-149.005, Florida Administrative Code, published on December 22, 2006 in Vol. 32, No. 51, of the Florida Administrative Weekly.  A Notice of Change was published in the Weekly on March 9, 2007.

THE FULL TEXT OF THE PROPOSED RULE IS:
     69O-149.005 Reasonableness of Benefits in Relation to Premiums.
     (1) through (13) No change.
     (14) An insurer may issue multiple year rate guarantee or rating cap provisions subject to the following:
     (a) The coverage is for annually rated group health insurance policies for which filing of rates is exempted by Section 627.410(6), F.S., and excluding disability income policies; 
     (b) The provision may not apply for greater than 24 months;
     (c) The rate for the entire rating period reflects the increased risk of a rate guarantee with an increased premium or other consideration, is actuarially sound, includes claim costs projected at trend levels at least as high as those applicable to  other groups with similar benefit structures in the rating area covered under the form(s) and is reasonably anticipated to meet the target loss ratio for the group;
     (d) The provision is available to groups on a nondiscriminatory basis as determined by the insurer’s underwriting standards; and 
     (e) The insurer uses experience rating in determining the group’s rate consistently based on its rating and underwriting practices without regard to whether the rate is issued with or without a rate guarantee.

Specific Authority 624.308(1), 627.410(6)(b), (d), (e) FS. Law Implemented 626.9541(1), 627.410(6)(d), (e), 627.410(7), 627.411(1)(a), (e), 627.9175 FS. History–New 7-1-85, Formerly 4-58.05, 4-58.005, Amended 4-18-94, 11-20-02, Formerly 4-149.005, Amended 5-18-04,  _________________.

A copy of the agenda may be obtained by contacting: A copy of the agenda may be obtained by contacting: The Governor and Cabinet Website at http://www.myflorida.com/myflorida/cabinet/mart.html. The agenda should be available approximately one week before the cabinet meeting.

PRINT PUBLISH DATE:

3/30/2007 Vol. 33/13

REFERENCE MATERIALS:

No reference(s).

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