Florida Regulations 69O-157.005: Qualified Right of Renewal
Current as of: 2024 | Check for updates
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No long-term care policy may contain a renewal provision less favorable to the insured than a right of renewal upon timely payment of premium, except that rates may be revised by the insurer on a class basis. However, the Office may authorize nonrenewal on a statewide basis, on terms and conditions deemed necessary by the Office, to best protect the interests of the insureds, if the insurer demonstrates:
(2) That:
(a) The actual paid claims and expenses have substantially exceeded the premium and investment income associated with the policies; and
(b) The policies will continue to experience substantial and unexpected losses over their lifetime; and
(c) The projected loss experience of the policies cannot be significantly improved or mitigated through reasonable rate adjustments or other reasonable methods; and
(d) The insurer has made repeated and good faith attempts to stabilize loss experience of the policies, including the timely filing for rate adjustments.
Rulemaking Authority Florida Statutes § 624.308(1), 627.9407(1) FS. Law Implemented 624.307(1), 627.9407(1), (3) FS. History-New 5-17-89, Formerly 4-81.005, 4-157.005.
(1) That renewal will jeopardize the insurer’s solvency; or
(2) That:
(a) The actual paid claims and expenses have substantially exceeded the premium and investment income associated with the policies; and
(b) The policies will continue to experience substantial and unexpected losses over their lifetime; and
(c) The projected loss experience of the policies cannot be significantly improved or mitigated through reasonable rate adjustments or other reasonable methods; and
(d) The insurer has made repeated and good faith attempts to stabilize loss experience of the policies, including the timely filing for rate adjustments.
Rulemaking Authority Florida Statutes § 624.308(1), 627.9407(1) FS. Law Implemented 624.307(1), 627.9407(1), (3) FS. History-New 5-17-89, Formerly 4-81.005, 4-157.005.