603454 - Florida Administrative Rules, Law, Code, Register

Florida Department of State and Division of Library and Information Services


Notice: 603454
Notice of Meeting/Workshop Hearing

Department:	DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Division:	Board of Professional Geologists


Overview



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

DATE AND TIME:	September 19, 2006. 9:00 a.m., during a regular meeting of the Financial Services Commission

PLACE:	Cabinet Meeting Room, Lower Level, The Capitol, Tallahassee, Florida

Subject:	This is the Final Public Hearing on the adoption of proposed amendments to Rules 69O-149.005, .006, .007, Florida Administrative Code, published on April 28, 2006, in Vol. 32, No. 17, of the Florida Administrative Weekly. A notice of change was published on July 14, 2006, in Vol. 32, No. 28, of the Florida Administrative Weekly. Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this program, please advise the contact person at least 5 calendar days before the program by contacting Linda Ziegler at E-mail: linda.ziegler@fldfs.com. THE FULL TEXT OF THE PROPOSED RULE IS: 69O-149.005 Reasonableness of Benefits in Relation to Premiums. (1) through (11) No change. (12) Upon request of the Office, the company shall provide an actuarial demonstration that benefit and premium relativities provided on a form currently available for sale are reasonable in relation to benefit and premium relativities provided in other forms currently available for sale in the same rating pool, given actuarial considerations generally used in pricing a product. (13)(a) Whenever a company makes a non-contractual offering to existing insureds, without underwriting, to replace or exchange their policy with alternate coverage where the original policy is priced on an issue age rate schedule, the rate charged to the insured for the new policy shall recognize the policy reserve buildup, due to the prefunding inherent in the use of an issue at rate basis, to the benefit of the insured. The method proposed by the company must be filed for approval. The rate for the conversion shall be at the most similar rating class as was the original coverage. A statutorily required conversion provision would be considered contractual. (b) Not withstanding the above, a company may always convert at the original issue age and duration of the insured without providing justification to the Office. 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,____________. 69O-149.006 Actuarial Memorandum. (1) through (2) No change. (3) Descriptions. (a) No change. (b) The descriptions, by item number, of the terms listed above in subsection (2) follow: 1. through 22. No change. 23. Experience on the Form (Past and Future Anticipated): This section shall display the actual experience on the form and that expected for the future. a. through c. No change. d. The experience exhibit shall be available to be submitted upon request directly to the assigned analyst electronically in an active Excel worksheet or workbook, i.e., not converted to a PDF or other image format. Formulas used to develop other values in the worksheet or workbook shall be included. It is noted that the I-file system does provide for the submission of information on a trade secret basis. If this is used, the company shall additionally file a workbook without the trade secret information for the public domain. 24. through 28. No change. Specific Authority 624.308(1), 627.410(6)(b), (e) FS. Law Implemented 627.410(1), (2), (6), 627.411(1)(e) FS. History–New 7-1-85, Formerly 4-58.06, 4-58.006, Amended 4-18-94, 4-9-95, 11-20-02, 6-19-03, Formerly 4-149.006, Amended 5-18-04,___________. 69O-149.007 Annual Rate Certification (ARC) Filing Procedures. (1) through (3) No change. (4) Non-cancellable coverages which are no longer available for sale and which have not been sold or marketed for at least 5 years and are in compliance with the reasonableness standards of Rule 69O-149.005, F.A.C., shall be exempt from the filing requirements of this rule. If a company is subsequently discovered not to have met the standards, they shall, in addition to other administrative remedies, be required to enhance benefits and make premium refunds to bring the form into full compliance with the loss ratio standards of Rule 69O-149.005, F.A.C. (5) An ARC filing shall consists of: (a) through (b) No change. (c) A certification by an actuary, in accordance with subparagraph 69O-149.006(3)(b)28., F.A.C. For policies subject to the provisions of Part II of Rule 69O-157, F.A.C., the certification in accordance with Rule 69O-157.108(1)(c), F.A.C., is required. (6)(a) A filing shall include only forms that are pooled together for rating purposes as provided by Rule 69O-149.003(1), F.A.C. Separate filings shall be made for separate rating pools. (b) Forms that are pooled together for rating purposes should be submitted under a single ARC filing. The company may request that an ARC filing may be made for a form separate from the other forms within the rating pool. Making separate ARC filings for forms that would otherwise be considered combined for rating purposes does not constitute a change in the forms to be pooled for rating purposes. At the time any of the forms would be filed for a rate change, all forms shall be pooled as required by subsection 69O-149.003(1), F.A.C., regardless of how the forms were filed for ARC compliance. (7) No change. (8) When a company using a current rate schedule is unable to demonstrate that the minimum loss ratio standards in Rule 69O-149.005, F.A.C., are met, it shall make a rate filing with the Office pursuant to Rule 69O-149.003, F.A.C., to reduce rates, enhance benefits, make refunds, or a combination of these both to satisfy the standards. (a) A company may make a certification in compliance with this rule without such change to benefits, refunds, or premiums if the A/E ratio for the past experience periods are, both in pattern and aggregate value, consistently at or in excess of .85; or. (b) For rating pools that are not fully credible, the company may make a certification in compliance with this rule if both the lifetime A/E ratio and the future A/E ratio are at or in excess of .85 when assuming best estimate assumptions in determining projected values. In determining the necessary adjustment, the company may assume up to a 15 percent margin in future projected claim costs and may target a future and lifetime actual to expected ratio of .85. (c) If the certification in (a) or (b) is unable to be made, and the company has been in compliance with these rules, the company shall make a rate filing pursuant to Rule 69O-149.003, F.A.C., to reduce rates, enhance benefits, make refunds, or a combination of these which shall target a future A/E ratio of at least 1.0. (9) through (10) No change. Specific Authority 624.308 FS. Law Implemented 627.410 FS. History–New 5-14-92, Amended 11-20-02, Formerly 4-149.007, Amended 5-18-04, __________.


	A copy of the agenda may be obtained by contacting:

PRINT PUBLISH DATE:	8/18/2006 Vol. 32/33


REFERENCE MATERIALS:	No reference(s).

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Overview