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OIR Fast Facts Florida Office of Insurance Regulation

VIEWS: 7 PAGES: 12

  • pg 1
									overnment  aFFairs • liFe and HealtH Financial oversigHt • market investigation
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 arket researcH and tecHnology • communications oFFice • commissioner’s oFFic

roperty and casualty Financial oversigHt • specialty product administratio

FFice oF tHe inspector general • Florida oFFice oF insurance regulatio

ompany admissions • legal services • liFe and HealtH Financial oversig

Fe and HealtH product review • property and casualty product revie

overnment aFFairs • market researcH and tecHnology • communications oFFic

roperty and casualty oversigHt • commissioner’s oFFice • specialty produ




           Fast
lorida oFFice oF insurance regulation • company admissions • legal servic

overnment aFFairs • liFe and HealtH Financial oversigHt • market investigation

Fe and HealtH product review • property and casualty product revie

 arket researcH and tecHnology • communications oFFice • commissioner’s oFFic

roperty and casualty Financial oversigHt • specialty product administratio




           Facts
FFice oF tHe inspector general • Florida oFFice oF insurance regulatio

ompany admissions • legal services • liFe and HealtH Financial oversig

Fe and HealtH product review • property and casualty product revie

overnment aFFairs • market researcH and tecHnology • communications oFFic

roperty and casualty oversigHt • commissioner’s oFFice • specialty produ

lorida oFFice oF insurance regulation • company admissions • legal servic

overnment aFFairs • liFe and HealtH Financial oversigHt • market investigation

Fe and HealtH product review • property and casualty product revie

 arket researcH and tecHnology • communications oFFice • commissioner’s oFFic




            November 2011
roperty and casualty Financial oversigHt • specialty product administratio

FFice oF tHe inspector general • Florida oFFice oF insurance regulatio

ompany admissions • legal services • liFe and HealtH Financial oversig

Fe and HealtH product review • property and casualty product revie

overnment aFFairs • market researcH and tecHnology • communications oFFic

roperty and casualty oversigHt • commissioner’s oFFice • specialty produ

lorida oFFice oF insurance regulation • company admissions • legal servic

overnment aFFairs • liFe and HealtH Financial oversigHt • market investigation

Fe and HealtH product review • property and casualty product revie

 arket researcH and tecHnology • communications oFFice • commissioner’s oFFic

roperty and casualty Financial oversigHt • specialty product administratio

FFice oF tHe inspector general • Florida oFFice oF insurance regulatio

ompany admissions • legal services • liFe and HealtH Financial oversig

Fe and HealtH product review • property and casualty product revie
About the Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary
responsibility for regulation, compliance and enforcement of
statutes relating to the business of insurance and the monitoring of
industry markets. The Office pursues its mission of public protection
via oversight of insurance company solvency, policy forms and
rates, market conduct performance and monitoring new company
entrants into the Florida market.

About the Insurance Commissioner
                      Kevin M. McCarty has served as an insurance
                      regulator since 1992 and became Florida’s first
                      appointed insurance commissioner in January
                      2003. Commissioner McCarty was appointed
                      by the Financial Services Commission, which
                      is comprised of the Governor and Florida
                      Cabinet.

                      The Commissioner is leading a multi-state,
                      multi-agency effort to evaluate claim
                      settlement practices, use of the U.S. Social
Security Administration’s Death Master File, and compliance with
unclaimed property laws for life insurance and annuity companies.
The Commissioner also has been instrumental in the formation
of the Non-Admitted Insurance Multi-State Agreement (NIMA)
designed to equitably distribute surplus lines taxes.

Commissioner McCarty is President-Elect of the National Association
of Insurance Commissioners (NAIC) through 2011; and is slated to
become the President of the NAIC in 2012.

The Commissioner continues to promote Florida’s presence in the
world’s financial industry by serving on the International Association
of Insurance Supervisors’ (IAIS) Executive and Technical Committees,
and the Joint Forum - a group of international regulators from the
insurance, banking and securities sectors.

                                  1
  Resources: Office of Insurance Regulation
                      Fiscal Year 2011-2012

Full-Time Employees                                              283
Total Budget*                                            $27,754,538

100% of the budget is derived from the Insurance Regulatory
Trust Fund.

*FY 2011-2012 budget includes a special appropriations category
of $4,701,763 in budget authority for the outsourcing of financial
examinations. The Insurance Regulatory Trust Fund acts as a pass-
through and insurers pay the cost of the examination to the Trust
Fund; therefore, it is revenue neutral.

Operating Costs (Fiscal Year 2011-2012)
Regulatory and Enforcement                                      94%
Administration                                                   6%

Position Allocation (Fiscal Year 2011-2012)
Regulatory and Enforcement                                      93%
Administration                                                   7%

Revenue Collected (Fiscal Year 2010-11)*
Insurance Premium Tax**                              $698,000,000
Fees                                                   $1,901,192
Penalties/Fines                                        $4,196,811

**Insurance premium taxes are collected by the Florida
Department of Revenue.




                                   2
            Insurance and Related Entities
                       As of June 30, 2011
The Office has oversight of a total of 4,025 insurance and
related entities, of which 158 are new entities.
                            New Entities              Total Entities
Property & Casualty               21                        1,006
Life & Annuity                     2                          438
Health                             1                           72
Title                              0                           21
Fraternal                          0                           37
Other*                           132                        2,274
Citizens/Other Residual Markets** ---                           7
Surplus Lines                      2                          170
Excludes advisory organizations and rating organizations.

  Overview of Insurance Premium in Florida
                       Calendar Year 2010
Admitted
Property & Casualty                               $ 30.5 billion
Life & Annuity                                    $ 38.5 billion
Health                                            $ 26.5 billion
Fraternal                                         $ 0.3 billion
Title                                             $ 0.7 billion
Other*                                            $ 2.5 billion
TOTAL                                             $ 99.0 billion
Surplus Lines Market                              $    3.9 billion
Citizens Property Insurance                       $    2.6 billion
Residual Markets**                                $   .014 billion
Total Written Premium                           $ 105.5 billion
*Other is specialty companies and other entities that do not file
with the NAIC.
**Residual markets are entities that sell coverage for consumers who
cannot obtain coverage through private companies in Florida.
                                   3
    Florida Domestic Insurance Companies
                       As of June 30, 2011

Authority Category                                   Authorities
Continuing Care Retirement Communities                       46
Health Maintenance Organizations                             36
Life & Health Insurers                                       22
Motor Vehicle Service Companies                              62
Premium Finance Companies                                    56
Property & Casualty                                         121
Risk Purchasing Groups                                       49
Self-Insurance Funds                                        213
Service Warranty Associations                                66
Third Party Administrators                                   94
Other*                                                      394

Total Domestic Authorities**                               1,159

Total Domestic Companies                                   1,112


* The “Other” category includes 281 donor annuities.
** Companies are given “authority” to write multiple kinds of insurance
(e.g., a company may simultaneously be a Health Maintenance
Organization and a Third Party Administrator). Therefore, the number
of authorities exceeds the number of companies.




                                   4
                   Enforcement Actions
                      Fiscal Year 2010-2011

Financial/Regulatory
Certificates of Authority Suspended                                4
Certificates of Authority Revoked                                  7

Administrative Fines/Fees
Life & Health Product Review                           $     83,500
Property & Casualty Product Review                     $    157,000
Specialty Product Administration                       $    109,050
Market Conduct/Investigations                          $ 2,061,399
Life & Health Financial Oversight                      $    142,061
Property & Casualty Financial Oversight                $    200,250
Surplus Lines                                          $           0
Bad Check Service Fees                                 $          50
Attorneys’ Fees                                        $ 1,443,500
Total Administrative Fines/Fees                        $ 4,196,811

Total Consumer Refunds*                                $48,995,664

Public Hearings
Rate Hearings                                                     13
Other Hearings                                                     4
Rule Hearings/Workshops                                            4

*Consumer refunds represent monies returned to consumers due to
activities of the Market Investigations Business Unit, as well as excess
profits and rate refunds.



                                    5
                   Regulatory Activities
                     Fiscal Year 2010-2011

Financial Reviews (Desk Audits)
Life & Health                                                2,851
Property & Casualty                                          4,736
Specialty                                                    1,681

Market Conduct
Market Conduct Examinations                                     91
Market Conduct Investigations                                  903

Financial Field Examinations
Life & Health                                                     6
Property & Casualty                                              58


Form and Rate Filings Processed
 Business Unit          Files                  Time to Process
 Life & Health                  7,468                       21 Days
 Property & Casualty            7,478                       55 Days
 Total                          14,946             Average 38 Days


Applications Statistics
In Fiscal Year 2010-2011, the Office processed 644 company
applications, which were processed in an average of 42 days. These
applications were either approved, denied, withdrawn or deemed
incomplete. In addition, 990 investigations of Officers and Directors
were completed in an average of 77 days.




                                  6
                            Top 20
     Personal Residential Writers in Florida
              Policies as of December 31, 2010

                                                            Policies
1. Citizens Property                                      1,232,397
2. State Farm Florida                                       580,308
3. Universal Property & Casualty                            574,172
4. St. Johns                                                172,786
5. USAA                                                     149,377
6. Castle Key Insurance (Allstate)                          138,862
7. Castle Key Indemnity (Allstate)                          125,562
8. ASI Assurance                                            122,127
9. Security First                                           109,561
10. Florida Peninsula                                       105,395
11. Royal Palm                                              103,217
12. American Integrity                                      102,537
13. Tower Hill Prime                                         93,426
14. American Bankers                                         86,199
15. Universal Insurance                                      85,864
16. Homewise Insurance                                       82,914
17. Florida Family                                           82,389
18. Southern Fidelity                                        79,217
19. Nationwide                                               78,729
20. American Strategic                                       78,061

Source: National Association of Insurance Commissioners’ I-Site




                                   7
                           Top 20
    Personal Automobile Writers in Florida
            Premium for Calendar Year 2010

                                            (Premium in millions)
1 State Farm Mutual                                      $ 2,449
2 GEICO General                                          $ 1,063
3 Progressive American                                      $646
4 Progressive Select                                        $575
5 Allstate Insurance                                        $549
6 Allstate Property & Casualty                              $533
7 GEICO Indemnity                                           $525
8 Allstate Fire & Casualty                                  $468
9 Government Employees                                      $368
10 United Services Auto. (USAA)                             $358
11 USAA Casualty                                            $251
12 Travelers Home & Marine                                  $203
13 Security National                                        $163
14 Liberty Mutual                                           $159
15 Mercury Insurance                                        $157
16 United Auto                                              $150
17 Allstate Indemnity                                       $147
18 Direct General                                           $142
19 Depositors Insurance                                     $135
20 Metropolitan Casualty                                    $133

Source: National Association of Insurance Commissioners’ I-Site.
Premium is direct premium written and includes private passenger
auto, other auto liability and auto physical damage.




                                  8
         Life & Annuity Writers in Florida
             Premium for Calendar Year 2010
                                             (Premium in millions)
1. Pruco Life                                             $1,366
2. John Hancock Life                                      $1,361
3. Lincoln National Life                                  $1,359
4. Jackson National Life                                  $1,251
5. MetLife Investors USA                                  $1,131
6. Metropolitan Life                                      $ 880
7. Allianz Life                                           $ 876
8. Nationwide Life                                        $ 866
9. Transamerica Financial                                 $ 856
10. Massachusetts Mutual Life                             $ 847


      Accident & Health Writers in Florida
             Premium for Calendar Year 2010
                                             (Premium in millions)
1. Blue Cross & Blue Shield                               $6,073
2. UnitedHealthcare                                       $4,995
3. Humana Medical                                         $4,834
4. Aetna Health                                           $1,641
5. AvMed                                                  $1,248
6. WellCare of Fla.                                       $1,240
7. United Healthcare of Fla.                              $1,076
8. CarePlus Health Plans                                  $1,033
9. Connecticut General Life                               $ 796
10. Coventry Health Care                                  $ 790

Source: National Association of Insurance Commissioners’ I-Site




                                   9
       2010 World/States Premium Volume
Rank                 Country/State           Premium in billions
1.                   Japan                        $ 557.4
2.                   United Kingdom               $ 310.0
3.                   France                       $ 280.1
4.                   Germany                      $ 239.8
5.                   PR China                     $ 214.6
6.                   California                   $ 211.7
7.                   Italy                        $ 174.3
8.                   New York                     $ 130.4
9.                   Canada                       $ 115.5
10.                  South Korea                  $ 114.4
11.                  Florida                      $ 105.8
12.                  Texas                        $ 103.7
13.                  Netherlands                  $ 97.0
14.                  Pennsylvania                 $ 82.6
15.                  India                        $ 78.3
16.                  Taiwan                       $ 76.4
17.                  Spain                        $ 76.1
18.                  Australia                    $ 72.5
19.                  Brazil                       $ 64.1
20.                  Illinois                     $ 59.8


The United States has the most premium in the world at $1.602 trillion;
this list features state premiums, therefore, the United States is excluded.

Source: National Association of Insurance Commissioners (NAIC)




                                     10
 Office of Insurance Regulation
         200 East Gaines Street
       Tallahassee, Florida 32399
             850-413-3140
             www.floir.com


Department of Financial Services
          Consumer Help Line
         877-693-5236 (in-state)
       850-413-3089 (out-of-state)




              6th Edition
            November 2011

								
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