1. 1 Robert Lindquist- President Lindquist and Associates Casualty Actuarial Society Ratemaking Seminar March 7-8 2002 Tampa Fla. Regulatory Topic #37 Rate Filing Requirements

2. 2 Property and Casualty Rates From Florida Perspective Rates/Rules/Forms/ Underwriting Guide Personal Property- H.O., M.H.O., D.F.

3. 3 Structure/Environment Insurance Commissioner- Currently Elected. Also Treasurer, State Fire Marshall, Cabinet. –Future, merged with Comptroller. Head will be State Chief Financial Officer

4. 4 Major Companies/Results –See Attached- MRKT Share by Line, L/R Results, Complaint Ratio –DI4-308- Attached, Direct Profit/Loss Statement by Line Detailed

5. 5 Structure/Environment F.I.C.-Lobbying, Rade Musulin F.H.C.F.- Florida Hurricane Catastrophe Fund –Personal Property, Commercial Residential –90%, 75%, 45% –Cov. A+B+C, D? –Payout 1 out of 7 yrs. –Andy Rappaport –Jack Nicholson

6. 6 Primary Statutes 1. Personal Automobile- 627.0651 F.S. 2. Workers Compensation- 627.072 F.S. 3. All Other- 627.062 F.S.

7. 7 627.062 F.S.- Rate Standards -Accepted Actuarial Techniques -90 day Deemer -Components -File/Use or Use/File -Excessive/Inadequate/Unfairly Discriminatory -Catastrophe -Underwriting Expenses -Indications, 5 yrs. Cal./Acc. Yr. data -Recourse (s)

8. 8 Supporting Statutes - 627.0628; F.H.C.F., Use of Models - 627.0629; Construction; 3/03 - ; Building Code - ; Separate Hurricane /Non-Hurr. Rates - 627.0654; Sprinkler Credits - 627.701 ; Hurricane Deductibles - 627.0645; Annual Rate Filings

9. 9 Supporting Ad. Rules 4-170.013- Filing Procedures 4-170.006- Rate Manual Filings 4-170.007- Annual Rate Filings 4-170.003- Investment Income

10. 10 Supporting Ad. Rules- Cont. 4-170.014 - Homeowners Rate Making (Attached) - Direct - Fla. Data - # Filing Copies - Applicable Forms - Indications vs. Support

11. 11 Filing Format - 3 copies to the Fla. D.O.I. - Cover page Memo/Shirley Kerns Bureau Chief - Consultant, Letter of Authorization

12. 12 Filing Forms DI4-582 (Basic) Separate coverage forms from Rules/Rates/U.W. One (1) Line per filing. File/Use or Use/File Proposed Effective date(s) –45 days Renewal

13. 13 Filing Forms- cont. DI4-583; Use for adoption of I.S.O. Loss Costs (Not Rules) ; Calculation of Deviation ; Calculation of L.C.M. ; Minimum Premium/Return Premium

14. 14 Filing Forms- cont. DI4-585-Certification DI4-586-Annual Rate Filing Certification DI4-584-Exemption to Annual Rate Filing

15. 15 Filing Forms- cont. DI4-595 - Expense Supplement for Independent Filings - E.L.R. - U.W. profit - Net cost of reinsurance - Private - F.H.C.F.

16. 16 Detailed Filing Memorandum Summarize Indexed Filing Material. Cross Reference Exhibits

17. 17 Indexed Filing Material (i.e.) - Indications - I.B.N.R. Factors - Catastrophe Factor(s) Development - Rate Comparisons (Attached)

18. 18 Indexed Filing Material – cont. - Other filings “me too” - U.L.A.E. Support (Sch. P.) - Support for C.R.L. - Support for Premium Trend and Loss Trend (Fast Track?)

19. 19 Indexed Filing Material- cont. - New Manual Pages (Highlight) - Non- F.H.C.F. Reinsurance Agreements - M.G.A. Agreement

20. 20 Indexed Filing Material- cont. - DI4-1102, Rating Example by county Split Hurricane/Non-Hurr. - DI4-1103, Summary of overall % change by Form - DI4-1104, By Form by County % change (Example)

21. 21 Indexed Filing Material- cont. -If applicable the F.I.G.A. Recoupment (Invoice, check) -7 Exhibits on Credits, Exhibit 7* “Cat Factor consistent with Ex Wind credits” *- 1÷ (1-Ex Wind % Credit/ Load)= Cat Factor Ex Wind Cat Factor= 1.00

22. 22 Computer Disks Homeowners (H.R.C.S.) Dwelling (D.R.C.S.) Automobile (A.R.C.S.) Mobile Home (M.R.C.S.)

23. 23 Some Frequently asked Questions - F.H.C.F. is tax exempt - Credibility Formula,Consistency - Complement of Credibility (95’ Joe Boor) - Support of credits that are not I.S.O. -Modeling, Black Box

24. 24 Some Key D.O.I. Employees Area Code 850 Shirley Kerns-413-5310 Richard Koon-413-5346 Ken Ritzenthaler-413-5314 Vern Ivarson-413-5366 Tim Bazer-413-5378 Kay Cleary-413-5254 Jack Swisher-413-5344 Srinivasa Ramanujam-413-5354 Bill Bodiford-413-5352

25. 25 Tim Rundle-413-5318 Howard Eaglefeld-413-5319 Doug Haseltine-413-5330 Jim Watford-413-5368 Jack Nicholson (F.H.C.F.)- 413-1340