Section 69O-166.051 - Examination of Significant Rate Increases(1) Purpose. Substantial rate increases by insurers adversely affects the welfare of the insurance consuming public of the State of Florida. The Office is authorized to conduct investigations of insurance matters as it deems proper to determine whether any person has violated any provision of the Florida Insurance Code and to secure information useful in the lawful administration of the Insurance Code. The Office is further authorized to examine each insurer as often as warranted for the protection of the policyholders and the public interest of this State. The Office has determined that the significant increase of rates fundamentally affects the rights of policyholders and the public interest of this State. The Office has determined further that in order to protect the public and to ensure compliance with the Insurance Code, and in the administration of the Code, the public welfare requires an examination of insurers which significantly increase rates in this State. These examinations will be conducted in an open forum, in the form of public hearings.(2) Scope. This rule applies to residential and habitational, personal and commercial property insurance in the State of Florida (hereinafter, "residential property insurance"). This rule shall not be construed to limit the Office's authority or ability to conduct any examination authorized by Section 624.316, F.S.(3) Public Hearings. (a) Significant Rate Increases. The Office will hold a public hearing on any rate filing where the percentage of rate increase is 25% or more and the aggregate amount of such rate increase is $2,000,000 or more, or a rate increase of 50% or more.(b) Procedure. 1. The time and place of the public hearing will be noticed by order of the Office.2. The public hearing shall be for the purpose of gathering information and evidence, and is not subject to the procedures of Chapter 120, F.S. Each insurer shall bear its own costs, including any attorney's fees, which may be associated with this examination and with its attendance at the public hearing. Specifically, the public hearing will provide the Office with, and the insurer shall be prepared to present, information necessary to determine whether the increase renders the rates excessive, inadequate, or unfairly discriminatory.Fla. Admin. Code Ann. R. 69O-166.051
Rulemaking Authority 624.308 FS. Law Implemented 624.307, 624.316, 624.321, 624.324, 627.062, 627.0629(7) FS.
New 2-28-95, Formerly 4-166.051.New 2-28-95, Formerly 4-166.051.