4765433, 69O-149.002 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 4765433

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-149.002

Scope and Applicability

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-149.002, Florida Administrative Code, published on March 16, 2007 in Vol. 33, No. 11, of the F.A.W., No notice of change was published. This takes the place of the earlier Notice published on October 5, 2007, about the December 18, 2007 Public Hearing.

THE FULL TEXT OF THE PROPOSED RULE IS:
PART I FILING OF RATES FOR HEALTH INSURANCE
69O-149.002 Scope and Applicability.
(1) through (5) No change. 
(6) Pursuant to the provisions of Section 627.410(6)(b), F.S., rate filings required by Rule 69O-149.003, F.A.C. and Annual Rate Certification (ARC) filings required by Rule 69O-149.007, F.A.C., are not required to be made for the following; however, the rating standards contained in this Part I and applicable statutes shall continue to apply as if the rate schedules were required to be filed for approval:
(a)1. Annually rated group health insurance policies as defined by Section 627.652(1), F.S., including blanket insurance as defined by Section 627.659, F.S., issued in this state that provide availability of coverage only to groups with 51 or more employees/members.
(b)2. This filing exemption does not apply to franchise policies issued pursuant to Section 627.663, F.S.
(c)3. This filing exemption does not apply to stop-loss policy forms, unless the policy is issued only to employers with 51 or more employees.
(7)(a)(b)1. Forms that provide for the acceleration of the benefits of a life insurance policy that are is incidental to the total life insurance coverage are not subject to the annual rate or ARC filing requirements of Section 627.410, F.S., or these rules. The insurer is required to submit an actuarial demonstration with the initial filing for approval demonstrating such incidental compliance.
(b)2. The acceleration is considered incidental if the value of the accelerated benefit is less than 10 percent of the total value of the benefits provided by the life insurance coverage. These values shall be measured as: a. tThe present values of the benefits determined as of the date of issue, determined according to the formula (NSP2-NSP1)/NSP1, applied over a range of underwriting classes and plans at which the benefit is being made available, is not in any case greater than 10%, where; or
1. NSP1 and NSP2 are determined using an effective annual interest rate of 6%.
2. NSP1 is the net single premium for the base policy benefits assuming there is no accelerated death benefit.
3. NSP2 is the net single premium for the base policy benefits assuming that the full death benefit is paid at time of death or the occurrence of the non-death accelerated death benefit trigger.
(b) The relationship between the premiums if the premiums are separable and fixed at issue.
(c) If a separate premium or cost of insurance (COI) charge is the only charge being charged for the accelerated benefit provided, the ratio of the present value of the accelerated benefit premiums or COI charges over the life of the policy to the present value of the policy premiums or COI charges exclusive of any riders, does not exceed 10%, the present values shall be determined using an effective annual interest rate of 6%.
(d) Upon request of the Office, the insurer shall provide an actuarial demonstration that the accelerated death benefit continues to meet these standards. If it is determined that the accelerated death benefit fails to comply with these standards, the provisions of these rules shall apply.
Specific Authority 624.308(1), 627.410(6)(b) FS. Law Implemented 624.307(1), 627.402, 627.410(1), (2), (6), (7), 627.411(1)(e), (2), 627.6515(2)(a), 627.6699 FS. History–New 7-1-85, Formerly 4-58.02, 4-58.002, Amended 4-18-94, 4-9-95, 10-27-02, Formerly 4-149.002, Amended 5-18-04, _______.

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:

10/26/2007 Vol. 33/43

REFERENCE MATERIALS:

No reference(s).

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