Commercial rate de-regulation

Both Senate and House insurance committees voted out legislation this week that would expand the commercial lines products for which rate pre-approval is not required.  CS/SB 178 was approved by the Senate Banking and Insurance Committee on Monday.  The House companion bill (HB 99) was approved by the House Insurance and Banking Committee on Wednesday.

Some commercial products were exempted from rate pre-approval during the 2010 legislative session.  The 2011 bills now working their way through the Capital would add the following products to the list:  fiduciary liability, general liability, nonresidential property, nonresidential multiperil, excess property, and all commercial motor vehicle insurance (the 2010 law exempted commercial motor vehicle insurance covering a fleet of 20 or more vehicles).  The Florida Office of Insurance Regulation (OIR) would retain authority to review rates after they are put into effect.

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Posted by Perry Cone at www.TallyInsLaw.com/

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