NU Online News Service, June 20, 2:34 p.m. EDT
Florida Gov. Rick Scott has signed into law a commercial rate deregulation bill that expands the types of commercial insurance exempt from the rate filing and approval process.
The National Association of Mutual Insurance Companies (NAMIC) in a statement says the governor's signing of the "rate modernization" bill, HB 99, is an "important component of a healthy insurance market." NAMIC adds Scott's "support of free-market principles is evidenced" by the signing of the legislation.
HB 99 expands on legislation signed into law last year by then-Gov. Charlie Crist that exempted certain excess and specialty commercial lines from rate regulation.
This year's bill includes commercial property, excess property and general liability. It also includes commercial auto lines for fleets under 20 vehicles. Larger fleets were included in the bill last year.
Rates still cannot be excessive, inadequate or unfairly discriminatory.
Should the industry successfully demonstrate that commercial deregulation works, it hopes the same can be extended to personal lines, industry members have said.
"We hope the Legislature's next step is applying rate modernization to personal lines," NAMIC says.
Scott earlier signed massive property-insurance reform bill SB 408 into law. The measure addresses replacement-cost methodology, sinkholes, public adjusters, expedited filings to recoup reinsurance costs and the timeframe to file a claim after a storm.
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