PIP reform analysis 2012: Only 2 changes likely to lower costs

Just two! That's the number of provisions of 2012 PIP law HB 119 that are predicted to have a material impact on reducing PIP loss costs and premiums. The key changes are the $2,500 cap on non-emergency treatment and the exclusion of massage therapy. Their combination is estimated to be as much as 96% of the new law's impact on cost savings.

These are some of the conclusions of Pinnacle Actuarial Resources, Inc. (Pinnacle), in its actuarial analysis of HB 119. Enacted in the 2012 Florida legislative session, HB 119 directed the Office of Insurance Regulation (OIR) to engage an independent actuary to calculate the savings expected from HB 119. OIR selected Pinnacle, which released its final report on August 20, 2012.

OIR publishes 2011 legislative summary

The Florida Office of Insurance Regulation has published its summary of the 2011 Florida legislative session, which is available on the OIR's Legislative Affairs web page or at this direct link: OIR 2011 Legislative Summary.

This summary was prepared by Perry Cone and posted at www.tallyinslaw.com/

Legal Notice and Disclaimer

OIR staff changes - March 2011

Florida Insurance Commissioner Kevin McCarty announced the following staff changes at the Florida Office of Insurance Regulation (OIR):

• Al Willis has been appointed acting Deputy Commissioner for Property & Casualty. Willis was the Director of Life & Health Financial Oversight and has been with OIR since 1987.

OIR Requests Waiver from MLR implementation

A petition to waive the new medical loss ratio (MLR) requirements for insurance companies was filed by Florida Insurance Commissioner Kevin McCarty with the U.S. Department of Health and Human Services.  McCarty argues that the 80 percent MLR would cause insurance companies to leave the market or stop selling new policies, reduce choice of plans and "hamper" insurance agent involvement "to the severe detriment of Florida consumers."

Can OIR prohibit use of public adjusters?

A lawsuit has been filed in Tallahassee, Florida circuit court, challenging the authority of the Florida Office of Insurance Regulation to approve form filings allowing  insurers to prohibit policyholders from hiring licensed public insurance adjusters as a condition of insurance coverage. 

OIR 2010 Annual Report and other public data

OIR provides a good bit of data on its website, including at this link:  Public Records Requests.  It has just released its 2010 AnnualReport, which is actually a report on calendar year 2009 activities of the OIR and summary data for numerous lines of business in 2009.  For annual reports from earlier years, go to this link:  OIR Annual Reports.

This summary was prepared by Perry Cone and is posted at www.tallyinslaw.com/

Legal Notice and Disclaimer

Insurance Regulations Not Covered by Governor's Freeze, Yet

There are not many of them, but most insurance regulations pending approval are not covered by Governor Rick Scott's executive order that freezes rulemaking.  Still, these regulations could be put on hold by the Governor and Cabinet.

OIR Releases 2010 Workers' Compensation Report

The Florida Office of Insurance Regulation (OIR) has released its 2010 Workers' Compensation Annual Report on the state of the workers' compensation insurance market in Florida. The report analyzed the availability and affordability of coverage for workers' compensation insurance in Florida with data for the calendar year 2009 with the benefit of information available from 2010 and concluded that Florida's market is competitive.

OIR approves 7th reinsurer under new collateral requirements

The Florida Office of Insurance Regulation (OIR) announced that it has approved Bermuda-based Renaissance Reinsurance Ltd. (Renaissance Re) for modified collateral requirements.