Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 31 No. 52, December 30, 2005 issue of the Florida Administrative Weekly.

These changes are being made to address concerns expressed by the Joint Administrative Procedures Committee.

Rule 69O-141.020 is changed to read as follows:

69O-141.020 Procedures for Withdrawal, Surrender of Certificate of Authority, or Discontinuance of Writing Insurance in this State Pursuant to Section 624.430, Florida Statutes.

(1) Scope and Purpose. This rule provides implementation procedures and Ooffice policy regarding Section 624.430, Florida Statutes.

(2) No change.

(a) through (c) No change.

(d) “Lines of insurance,” as used in Section 624.430, Florida Statutes, and this rule, is as defined in Section 624.6012, Florida Statutes. Pursuant to the express rulemaking authority given the Ooffice in Section 624.6012, Florida Statutes, for the purpose of implementation of Section 624.430, Florida Statutes, the Ooffice determines each of the following to be a line of insurance (in addition to lines of insurance as may be elsewhere established by rule of the Ooffice): Homeowners property insurance; mobile homeowners property insurance; condo unit owners contents insurance; renter’s/dwellers contents insurance; and residential condominium association property coverages.

(3) No change.

(4) The Ooffice interprets the requirement of notice as authorizing the Ooffice to prohibit the withdrawal, surrender, or discontinuance of writing, when such withdrawal, surrender, or discontinuance of writing is done in violation of any law or rule.

(5) Notice to Precede Action to Reduce Presence in Florida. An insurer shall take no action in furtherance of a reduction, prior to the expiration of 90 days after the receipt by the Ooffice of the notice required by Section 624.430, Florida Statutes. Prohibited actions include sending any notice of cancellation of termination, or notice of intent to cancel or terminate, to any policyholder, agent, managing general agent, reinsurer, or other person or entity.

(6) No change.

(a) through (b) No change.

(c) Designated Filing Office. The letter of notice with the two copies shall be addressed to and delivered by certified or registered mail to the following address: Insurance Commissioner ~~Director, Division of Insurer Services~~, Office of Insurance Regulation, 200 East Gaines Street, Tallahassee, FL 32399-0326. There shall be no constructive receipt of the notice by the above-designated filing office, other than upon receipt by the Ooffice’s mail room in the usual course of business, of a properly addressed notice by U.S. mail. The 90 days shall not begin to run until a properly addressed notice, in a form substantially complying with this rule, is received by the Ooffice, by U.S. mail.

(d) No change.

(e) No change.

1. through 3. No change.

4. Insurers shall also provide the Ooffice with the following information in the notice:

a. through d. No change.

(7) Office Action Upon Receipt of Notice.

(a) Subsequent to receiving the initial filing, the Ooffice will request the insurer to provide further information, or will conduct such other investigation as is necessary to determine whether the initial information provided is accurate and whether the proposed action will have the effects projected by the insurer.

(b) The Ooffice shall inform the insurer if the proposed reduction would be in violation of, or cause a violation of, any provision of the Insurance Code or rule of the Ooffice. Within 5 calendar days of the date of such notice, the insurer shall file with the Office a response indicating whether it will proceed to implement the reduction ~~or, if paragraph (9)(b) applies, shall file any application for relief required thereby~~.

~~(8) Certificate of Authority Surrender Effected by Office Order. No surrender or attempted surrender of a certificate of authority is effective until accepted by order of the office.~~

(9) Relationship of Reduction to Moratorium Phaseout. The office interprets Section 627.7013(2)(a)4., Florida Statutes, relating to certain applications for reduction filed prior to August 24, 1992, as indicating a legislative intent that as to all attempted or desired reductions affecting “Florida personal lines residential policies” (hereinafter “residential policies”), other than those in which such reduction notice was filed prior to August 24, 1992, Section 627.7013, Florida Statutes, applies and takes precedence over Section 624.430, Florida Statutes, and prohibits or limits such reductions affecting residential policies, initiated for the purpose of reducing the insurer’s exposure to hurricane claims.

~~(a) Factors which will be given great weight in evaluating whether a desired reduction is for the purpose of reducing the insurer’s exposure to hurricane claims include:~~

~~1. Would the reduction in Florida be accompanied by reduction action by the insurer in other states?~~

~~2. If so, would a disproportionate amount of the impact be in areas of the country especially subject to risk of loss from hurricane?~~

~~3. How much of the reduction in Florida would be in residential policy exposures as compared to exposures in other lines of insurance in Florida?~~

4. If the insurer is discontinuing writing only some lines of insurance, are the lines being discontinued especially subject to risk of loss from hurricane, as compared to the lines not being discontinued?

~~5. Does the insurer have a significant concentration of residential policies and exposure in coastal areas of Florida?~~

~~6. Would the desired reduction significantly reduce the insurer’s exposure to risk of loss from hurricane exposure under residential policies in Florida?~~

(b) If the office determines that any proposed reduction violates Section 627.7013, Florida Statutes, the insurer shall not proceed with the reduction as it affects residential policies, and shall file an application under Rule 69O-141.021, F.A.C., which implements Section 627.7013, Florida Statutes. The reduction in residential policies shall be limited to the extent of relief granted the insurer by the office under Section 627.7013, Florida Statutes and Rule 69O-141.021, F.A.C.

(8)~~(10)~~ No changes.

Specific Authority 624.308(1), 624.6012 FS. Law Implemented 624.307(1), 624.430, 624.6011, 624.6012 FS. History–New 1-8-96, Amended 5-26-96, Formerly 4-141.020, Amended .

The remainder of the rule reads as previously published.