Docstoc

Office of Insurance Regulation

Document Sample
Office of Insurance Regulation Powered By Docstoc
					         Financial Services Commission

Office of Insurance Regulation
An Overview of Florida’s Insurance Market Trends




            Transition Manual




                December 2010
                                                                 Office of Insurance Regulation
                                                                                Transition 2010


                                    Table of Contents


PART I…………………………………………………………………………………………………….3
THE OFFICE OF INSURANCE REGULATION……………………………………………………..3
      Vision……………………………………………………………………………………………………………………3
      Mission Statement………………………………………………………………………………………………….3
      Insurance Regulation and the Department of Financial Services…………………………………3
      Administrative Overview…………………………………………………………………………………………4
      Insurance Company Regulation – Overview……………………………………………………………..5
      Financial Oversight…………………………………………………………………………………………………5
      Insurance Product Review………………………………………………………………………………………5
      Market Investigations…………………………………………………………………………………………….6
      Legal Services……………………………………………………………………………………………………….6
      Regulatory Division: Life and Health – Property and Casualty…………………………………….6
      The Office of Inspector General………………………………………………………………………………7
      Business Development/Company Admissions……………………………………………………………7
      Market Research & Technology……………………………………………………………………………….8
         Technology Achievements…………………………………………………………………………………..9
         Technology Initiatives……………………………………………………………………………………….12
      Organizational Chart…………………………………………………………………………………………….14
      Legislative Achievements………………………………………………………………………………........15
      Florida’s National Leadership Role………………………………………………………………………….17
         The National Association of Insurance Commissioners…………………………………………17
         Florida and the NAIC………………………………………………………………………………………..17
         International Insurance Regulation…………………………………………………………………….18
         National Conference of State Legislators……………………………………………………………18
      The Florida Insurance Marketplace Snapshot, September 2010………………………………..19
      Florida Domestic Insurance Companies as of June 30, 2010……………………………………20
      Top 20 Personal Residential Writers in Florida Policies as of December 31, 2009………..21
      Top 20 Personal Automobile Writers in Florida Premium for Calendar Year 2009………..22
      Life & Annuity Writers in Florida Premium for Calendar Year 2009……………………………23
      Accident & Health Writers in Florida Premium for Calendar Year 2009………………………23
      World/States Premium Comparison……………………………………………………………………….24
      Enforcement Actions Fiscal Year 2009 – 2010………………………………………………………..25
      Regulatory Activities Fiscal Year 2009 – 2010…………………………………………………………26
      Historical Budget Overview……………………………………………………………………………………27
      FY 2010-11 Budget Overview………………………………………………………………………………..28
PART II…………………………………………………………………………………………………29
LEADERSHIP AND BUSINESS UNITS OF THE OFFICE OF INSURANCE REGULATION…………29
      Office of the Commissioner…………………………………………………………………………………..29
      Office of Inspector General…………………………………………………………………………………...31
      Office of the Chief of Staff…………………………………………………………………………………….33
      Legal Services………………………………………………………………………………………………………40
         Market Investigations……………………………………………………………………………………….42




                                             1
                                                  Office of Insurance Regulation
                                                                 Transition 2010


Office Deputy Commissioner, Property and Casualty Insurers…………………………………44
   Property and Casualty Product Review……………………………………………………………..46
   Property and Casualty Financial Oversight………………………………………………………….48
Office of Deputy Commissioner, Life and Health Insurers…………………………………………50
   Life and Health Product Review…………………………………………………………………………52
   Life and Health Financial Oversight…………………………………………………………………….55
Office of Company Admissions/Business Development……………………………………………..58
Market Research and Technology…………………………………………………………………………..60




                                2
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

PART I
THE OFFICE OF INSURANCE REGULATION

The Florida Legislature created the Office of Insurance Regulation (Office) in 2003:

“The Office of Insurance Regulation, which shall be responsible for all activities concerning
insurers and other risk bearing entities, including licensing, rates, policy forms, market conduct,
claims, issuance of certificates of authority, solvency, viatical settlements, premium financing,
and administrative supervision, as provided under the insurance code or chapter 636. The head
of the Office of Insurance Regulation is the Director of the Office of Insurance Regulation, who
may also be known as the Commissioner of Insurance Regulation.”
                               --Section 20.121,(3)(a)1, F.S.

The Commissioner is appointed by, and reports to, the Financial Services Commission. The
Commission is comprised of the Governor, the Attorney General, the Chief Financial Officer, and
the Commissioner of Agriculture. The Commission serves as agency head for purposes of
rulemaking pursuant Sections 120.536-120.565, F.S. Commission action is taken by majority
vote. The Director (Commissioner) of Insurance Regulation is considered the agency head for
purposes of final agency action for all areas within the regulatory authority delegated to the
Office.1

The Office is, for purposes of administrative, personnel, and technology support, housed within
the Department of Financial Services. Office funding is appropriated directly by the Legislature
from the Insurance Regulatory Trust Fund (IRTF), funded by insurance company licensing fees,
fines that may be levied for non-compliance with provisions of the Insurance Code.

Vision
The Office envisions a robust and competitive insurance market that maintains consumer
protection and provides protection for the Florida insurance buying public.

Mission Statement
To ensure that insurance companies licensed to do business in Florida are financially viable;
operating within the laws and regulations governing the insurance industry; and offering
insurance products at fair and adequate rates which do not unfairly discriminate against the
buying public.

Insurance Regulation and the Department of Financial Services
The Office’s interaction with insurance regulatory responsibilities assigned to the Department of
Financial Services (DFS) occurs at several regulatory intersections. Consumer complaints
received by the DFS Division of Consumer Services may constitute patterns of company
practices in violation of the Insurance Code and are referred to the Market Investigations unit
for investigation. In turn, Market Investigations examinations may discover potential fraudulent
actions that are referred to and worked with the law enforcement personnel of the DFS Division
of Insurance Fraud. In some instances, such investigations involve insurance agents licensed by
the DFS Division of Agent and Agency Services and Office staff will work with the DFS to assist

1
    Section 20.121,(3)(c), F.S.

                                                3
                                                                       Office of Insurance Regulation
                                                                                      Transition 2010

in making cases with the Division’s Bureau of Agent Investigations. In instances where an
insurance company financial condition has significantly deteriorated to the point of insolvency,
the Office will refer a company to the DFS Division of Rehabilitation and Liquidation.


Administrative Overview
As previously noted, the Office is administratively housed with DFS. In statute, that relationship
is expressed in this excerpt of Section 20.121, F.S., emphasis provided:

       Section 20.121, F.S. Department of Financial Services.--

       (3) FINANCIAL SERVICES COMMISSION.--Effective January 7, 2003, there is
created within the Department of Financial Services the Financial Services Commission,
composed of the Governor, the Attorney General, the Chief Financial Officer, and the
Commissioner of Agriculture, which shall for purposes of this section be referred to as the
commission. Commission members shall serve as agency head of the Financial Services
Commission. The commission shall be a separate budget entity and shall be exempt
from the provisions of s. 20.052. Commission action shall be by majority vote consisting of
at least three affirmative votes. The commission shall not be subject to control,
supervision, or direction by the Department of Financial Services in any manner,
including purchasing, transactions involving real or personal property, personnel, or
budgetary matters.

       (e) Administrative support.--The offices shall have a sufficient number of attorneys,
examiners, investigators, other professional personnel to carry out their responsibilities and
administrative personnel as determined annually in the appropriations process. The
Department of Financial Services shall provide administrative and information
systems support to the offices.

Pursuant to this provision, the Office develops and presents its budget requests directly to the
Executive Office of the Governor and the Florida Legislature. The Office has developed
performance measures and standards to assess the performance of its activities in support of its
budget requests.

With respect to the Office’s interaction with DFS in matters involving administrative support, the
Office has inherited the responsibility to directly manage its personnel matters – i.e., to recruit,
advertise, and hire personnel -- subject to DFS personnel office review for compliance with
required state agency hiring and personnel policies and procedures.

With respect to the Office’s interaction with DFS in matters involving information systems
support, the Office seeks independent and project specific appropriations for technology
initiatives and upgrades. The Office has direct liaison with DFS technology support staff and it is
the DFS Division of Information Systems that provides the Office with standard desktop,
network, and programming assistance for integrated computer systems in use by both the
Office and DFS.




                                                 4
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Insurance Company Regulation – Overview
An insurance company’s decision to enter the Florida marketplace may well begin with the
Office’s Business Development and Company Admissions unit. From this office, an insurance
company can obtain general information about the business climate in Florida, become
acquainted with the requirements of making an application for a Certificate of Authority (COA)
to transact the business of insurance in this State, and examine detailed, public information
about Florida’s markets for an insurance product.

The Company Admissions Section which handles company licensure and company acquisition
filings. After licensure, a COA is granted for those lines of business for which the company will
write insurance coverage, and the new company begins its interaction with the core units of the
Office charged with regulatory oversight of Florida’s insurance industry.

Financial Oversight
The Office is charged with the responsibility for review of the financial books and records of
insurance companies and related entities to ensure that insurance companies remain financially
viable and are in compliance with Florida law.

The Office’s professional financial examiners conduct quarterly and annual reviews of each
company’s financial statements. The monitoring of company financial status includes the tasks
of conducting actuarial reviews, field examinations and analyses of financial statements and
reports. As required by law, periodic on-site financial examinations are conducted to assure
compliance and verify that accurate information has been submitted pursuant to statute and
administrative rule regulation. In addition to the monitoring of established companies, reviews
are conducted of all new applicants desiring entrance to the Florida marketplace; and specific,
targeted reviews are undertaken under a variety of circumstances warranting enhanced review,
including when there are any material changes in ownership of carriers domiciled in Florida. The
financial oversight offices also participate in multi-state financial examinations under the
auspices of the National Association of Insurance Commissioners (NAIC).

With respect to national accreditation of state insurance regulatory functions, the Office
participates in the NAIC’s Financial Regulation Standards and Accreditation Program. The
objective of the accreditation program is to provide consistent solvency regulation of multi-state
insurance companies with an emphasis on developing minimum solvency laws and regulation
standards, effective and efficient financial analysis and examination processes, and appropriate
organizational and personnel practices. In 2008, an independent review team reviewed the
Office and awarded the Office its fourth consecutive accreditation.

Insurance Product Review
In addition to financial oversight, a second core function of the Office’s insurance regulatory
role is that of product review – review and approval of insurance product forms and rates. Form
filings include policy forms (contracts), which can be new products or changes to existing
products, and may in some product lines include applications and marketing materials. Rate
filings are requests from an insurer to increase, decrease, or maintain current rates associated
with specific policy forms. Policy forms and rates receive rigorous review by Office staff to
determine compliance with Florida Statutes and to ensure that the products are offered at a fair
and adequate price, that premiums are reasonable in relation to the benefits they provide, and

                                                5
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

that they do not unfairly discriminate against segments of the public.

Florida Statutes establishing filing requirements and Office approval for products to be
marketed in Florida are intended to provide a stabilizing effect on rates – to avoid dramatic rate
changes and to encourage carriers to keep rate changes closely aligned with underlying cost
changes over time. The statutes intend to facilitate objective competition in a rate and
benefits/coverage environment that best meets the needs of Florida’s insurance consumers.

Market Investigations
The Market Investigations Unit conducts examinations and investigations of insurers and related
parties regarding business practices and patterns of alleged violations of the Florida Insurance
Code. The unit is comprised of four sections: Property and Casualty Section; Life and Health
Section; Unauthorized Entities Section; and Market Analysis Section.

The Property and Casualty and Life and Health Sections of the unit conduct examinations and
investigations of the business practices of authorized Florida insurers. The Unauthorized Entities
Section investigates allegations of unauthorized and illegal insurance activity. The Market
Analysis Section identifies trends and analyzes patterns of insurer data related to industry or
marketplace issues which may arise from a pattern of consumer complaints, financial trending,
and other business environment developments. The findings of market conduct examinations
and investigations may result in administrative action, the imposition of fines, and can require
corrective action in order to protect insurance consumers from unlawful or harmful business
practices.

It is important to note, however, that the role of Market Investigations is multi-purpose – i.e.,
the unit is driven not only by its investigative role, but engages in the opportunity to provide
technical assistance and corrective guidance as the unit interacts with insurance companies.
Most apparent in its business-friendly relationship with new companies is providing advice and
counsel on the best practices to ensure continuing compliance with Florida Statutes and
administrative rules. The goal of the unit is to create a “partnership in regulation” environment
that works to the benefit of companies, the Office, and Florida’s insurance consumers.

Legal Services
The attorney, paralegal, and administrative staff of the Office’s Legal Services Unit provides
legal advice and counsel to the Office, under the direction and supervision of the General
Counsel. The Legal Services unit represents the Office in state and federal courts, informal
administrative hearings, hearings at the Division of Administrative Hearings, proceedings and
cases pending in any other forum. The Legal Services Office also reviews applications for new
companies, works with the examiners on regulatory issues, and handles the issuance of rules,
orders, and other legal documents produced by the Office.

Regulatory Division: Life and Health – Property and Casualty
The regulation of life and health insurance, property and casualty insurance and specialty
insurance products requires different financial, actuarial and regulatory expertise. The Office is
thus divided into Life and Health Product Review and Financial Oversight business units and
Property and Casualty Product Review and Financial Oversight business units. In 2010, the
Office merged the regulation of specialty insurance products into the appropriate business units

                                                6
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

to streamline processes and provide additional resources to the business units. Specialty
insurance products include auto, home and service warranties, premium finance companies,
legal expense insurance, third party administrators, continuing care retirement communities,
donor annuities and viatical settlement providers.

The Office of Inspector General
The Office of Inspector General is charged with the responsibility to conduct financial and
program audits, management reviews, business and technical consultation engagements, and
risk assessment methodologies appropriate for the activities of the Office. The Inspector
General reports directly to the Commissioner of Insurance Regulation.

Business Development/Company Admissions
The primary role of the Business Development and Company Admissions (BDCA) unit is to
facilitate the regulatory process for companies and to streamline the many steps companies
must take to comply with the Florida Insurance Code. The goal of this effort is to retain
companies, while attracting new insurers and products to increase competition that ultimately
benefits Florida’s consumers. Another goal of the unit is to identify financially fit, highly rated
companies not writing in Florida, communicate to them the positive aspects of the Florida
marketplace, and encourage them to expand or domesticate in Florida. As required by statute,
this outreach to the marketplace is a program that has been developed within the existing
resources of the Office.

Initially, the BDCA unit worked with Enterprise Florida and other economic development
councils throughout the state to promote the benefits of expanding or moving lines of business
to Florida and facilitating the regulatory process for established and new insurance companies.
This involved travel in and outside of the state of Florida. However, due to significant budget
reductions, the Office has curtailed this type of travel.

The BDCA has played a proactive role in promoting the opportunities available to insurance
companies in the Florida marketplace and in light of current economic conditions, continues its
outreach without travel and within the existing resources of the Office. In addition, the unit
continuously reviews and where necessary, modifies certain of the Office’s website information
to accommodate the ever-changing statutory and business requirements in Florida’s insurance
market. BDCA makes every effort to assist companies that have submitted applications for
licenses or amendments to licenses throughout the process.

The BDCA works closely with companies to submit applications via an online system called I-
Apply. The intent of this system is to decrease application processing time, thereby increasing
speed to market of new insurance products for consumers and bringing enhanced competition
to Florida’s marketplace. The system does not reduce the scrutiny given to new insurance
company applications, but enhances and organizes the information so that decisions may be
made quickly and based on complete information.

Since the creation of the Office in 2003, the number of entities regulated by the Office has
increased from approximately 3,400 to 3,972.




                                                7
                                                                    Office of Insurance Regulation
                                                                                   Transition 2010

Market Research & Technology
The Market Research and Technology Unit serves as the data clearinghouse for the collection
and dissemination of public insurance industry data. This unit is comprised of two areas that
support the Office in the oversight and development of Florida’s insurance markets.

The primary purpose of the Market Research Unit is to ensure efficiency and transparency in
the collection and validation of data that is collected from regulated entities. This section
provides the data to satisfy public record requests, legislatively mandated reports and internal
business unit requests.

The Technology Unit’s primary role is to support the Office in the day-to-day maintenance and
development of computer applications. This unit works very closely with technical staff
augmentation vendors and with the Department of Financial Services/Division of Information
Systems to meet the needs of internal and external users by ensuring that systems are
functioning properly.




                                               8
                                                                        Office of Insurance Regulation
                                                                                       Transition 2010

Technology Achievements
The Office has developed one of the most advanced regulatory technology systems in the
country – boasting comprehensive electronic insurance company form, rate and data filing
systems with a corresponding structure of internal electronic management tools.

The Office makes insurance data it collects available to the public at www.floir.com.




               Critical Technology Systems

                                       I-Portal/I-File



  I-Apply    QUASRng       DCAM         REFS         PCRDCMS     FASS              PLCR                  SERCS




                                      CCOREN
                                  Company Information
                                      Database
                                                                        A detailed explanation of each system is contained
                                                                        within the following narrative.




The Office’s Internet Portal and I-File (I-Portal/I-File) are critical to insurance company filings,
as well as the Office’s ability to meet its mission. The I-Portal was opened in July of 2002 to act
as an umbrella for all Office Internet business processes and is the central location for
insurance companies to conduct business with the Office by submitting filings through I-File.
Each year, the I-File system is modified to implement significant legislative changes and
technology enhancements. I-Portal/I-File has decreased insurance company response time and
the speed at which new products or rates are brought to the market.

The following section details many of the critical systems that are housed within the I-Portal/I-
File.

I-Apply

The Office implemented I-Apply during 2007-2009 to allow for insurance companies to
electronically submit company applications. The system has decreased application processing
time, increased the speed-to-market of new insurance products for consumers and enhanced
competition to Florida’s marketplace. The system does not reduce the scrutiny given to


                                                 9
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

insurance company applications, but organizes the information so that decisions may be made
quickly and based on complete information.

Quarterly and Supplemental Reporting System Next Generation (QUASRng)

Insurance companies writing personal and commercial residential policies are required to report
quarterly data to the Office. In 2008, the Office launched the newest revision of the Quarterly
and Supplemental Reporting System (QUASR) -- the Quarterly and Supplemental Reporting
System Next Generation (QUASRng). First established in 1996, the original purpose of QUASR
was to help the Office monitor the state’s moratorium prohibiting insurers from cancelling or
non-renewing personal and commercial residential policies subsequent to Hurricane Andrew in
1992.

Since its inception, QUASR has been instrumental in assisting the Office in analyzing the Florida
property insurance marketplace by providing market share data from companies writing
personal and commercial residential policies and in assisting the Office in monitoring the
influence of the residual market.

In 2009, the Office launched a new public QUASRng Website that includes prepared reports by
Policies in Force, Structure Exposure, Premiums Written, Non-renewed Policies, Cancelled
Policies and New Policies Written. A comprehensive database is also available to the public to
directly query QUARSng statistical data for Florida’s personal and commercial residential
marketplace.


Data Collection and Analysis Modules (DCAM)

The DCAM system is housed within the Office’s I-Portal and it administers both ad hoc and
standardized data collection events including, but not limited to, informational documents,
surveys, questionnaires and numeric data. This system provides the Office with quicker access
to important company data.

In 2008, DCAM handled the Florida Legislature’s Office of Program Policy Analysis and
Government Accountability’s (OPPAGA) Long-Term Care Partnership Survey. DCAM is also used
annually to facilitate the data collection survey for the Report on Life Insurance Limitations
Based on Travel to Foreign Countries.

Additionally, each year DCAM is prepared to administer the collection of data for damage
caused by a catastrophic event, such as a tropical storm or hurricane.

In August 2010, the Office activated DCAM to collect sinkhole claims data from insurance
companies for the years 2006 – 2010. The data collection concluded during the fall of 2010.
The objective of the sinkhole data call was to obtain specific information about sinkhole claims
on a claim level basis so that trends and other data elements could be analyzed.

In May 2011, DCAM is scheduled to administer the Office’s Annual Reinsurance Data Call. Each
year, the Office conducts a Reinsurance Data Call to determine whether insurers writing
property risks in Florida will be able to meet their policy obligations in the event of one or more


                                                10
                                                                       Office of Insurance Regulation
                                                                                      Transition 2010

catastrophic events during the hurricane season.

Electronic Document Management System (EDMS)

Established in 2002, EDMS was designed to allow the Office to internally process form and rate
filings electronically. EDMS captures company filings and provides a workflow process for
business unit staff involved in form and rate reviews. The Financial Analysis and Monitoring
Electronic Data Management System (FAME), as well as the Property and Casualty Rate Data
Collection and Management System (PCRDCMS) utilize EDMS as an internal management tool
(refer to the following summaries for detail).

Regulatory Electronic Filing System (REFS)

REFS was launched in 2006 to allow insurance companies to submit all financial-related
documentation via the I-Portal/I-File, including various agreements, reinsurance documents,
dividend requests, and all other requests and correspondence with the Property and Casualty
and Life and Health Financial Oversight business units.

REFs interfaces with the Financial Analysis and Monitoring Electronic Data Management System
(FAME), which captures insurance companies financial statements and other financial-related
documents and automatically indexes filed documents into a workflow system for electronic
review and routing to internal supervisors and examiners.

Property and Casualty Rate Data Collection and Management System (PCRDCMS)

To meet the changing needs of the insurance industry and changes in technology, the Office
identified the need to replace the existing rate collection and rate management systems for the
property and casualty lines of business and to expand the I-File system to incorporate filings in
the commercial insurance market. In 2006 and early 2007, the Office developed a new property
and casualty rate data collection and management solution and expanded the capabilities of I-
File.

PCRDCMS allows for the collection and review of rate data for several lines of business. There
are two components – a collection mechanism through I-File and an internal management
component through the Electronic Data Management System (EDMS).                     PCRDCMS also
incorporates the Filing Assembly and Submission System (FASS) within I-File. FASS is a secure
online application (via I-Portal) that enables an I-File user to submit an electronic form and rate
filing instead of mailing hardcopy filings to the Office. FASS uses filing component lists as a tool
for users to accurately complete a filing according to Florida Law.

Professional Liability Claims Reporting System (PLCR) and Medical Malpractice Financial
Information Closed Claim Database and Rate Filings Report

The Office collects closed claims data from medical and legal professionals, as well as for
officers and directors of insurers. The data is utilized to prepare an annual report detailing the
medical malpractice insurance market in Florida. The report provides a review of the profitability
and solvency characteristics of the medical malpractice insurers doing business in Florida, a
review of rate filings received by the Office during the year, and a review of the characteristics


                                                11
                                                                          Office of Insurance Regulation
                                                                                         Transition 2010

of the medical malpractice closed claims required to be filed with the Office. The data can be
found at http://www.floir.com/Liability/index.aspx within the Professional Liability Claims
Reporting (PLCR) System.

Small Employers Rate Collection System (SERCS)

The Small Employers Rate Collection System (SERCS; also known as RCS) is utilized to gather
small-group health coverage rate data for insurance company rate filings.

The consumer Website interface is called the Small Employer Sample Rate Search (SESRS). It
allows small business owners to input information including county, deductible range, coverage
type (e.g., HMO, PPO, etc.), plan type (basic, standard, high-deductible) and one-life group
availability.

Company and Related Entities Navigator (COREN) and a Technical Upgrade from .ASP platform
to .Net platform

COREN was designed to be the cornerstone of the Office’s business applications and provides
information to over 700 users and interfaces with multiple Office and DFS applications/systems.

COREN is the centralized interactive database that contains insurance company information
regulated by the Office. All information pertaining to companies including, but not limited to,
contact information, Website, email address, licensing information, lines of business, domiciliary
state, National Association of Insurance Commissioners (NAIC) data, Federal Employer
Identification Number (FEIN), internal Office assigned financial examiner, addresses, AM Best’s
Rating, company officers, company history and list of major transactions, and some links to
financial data.    CORE has three main functions: to view, edit and issue reports based on
company information contained within the database.

Implemented in 1998, the original CORE was developed using the .ASP platform. As technology
has advanced over the years the need to upgrade COREN has become a priority. The re-write
of COREN application code into standard .NET architecture is a necessity. This project will
commence in January 2011 and is slated to end in June 2012. The upgrade will improve
performance, security, stability, scalability and the ability to implement enhancements, and
improved report generation.

Technology Initiatives

The following highlights additional significant technology initiatives.

www.ShopAndCompareRates.com

In 2007, the “Shop and Compare Rates,” Website was launched to assist consumers comparing
homeowners’ insurance rates throughout Florida. “Shop and Compare Rates” is an interactive
tool available online at www.ShopAndCompareRates.com. The program assists consumers with
comparing homeowners’ insurance rates in all 67 Florida counties. By clicking on each county, a
consumer will see a pop-up window with a representative sample of companies and rates for
insuring a typical Florida home. The list of insurers is sorted from the lowest to highest


                                                 12
                                                                   Office of Insurance Regulation
                                                                                  Transition 2010

premium.

Life and Health Medicare Supplement Rate Management System (MediGap)

In 2007, the Office developed a Medicare Supplement rate collection system to provide
accurate, current rate pricing and availability of Medicare supplement insurance plans for
seniors, consumers and their families to enable them to make more informed health coverage
purchasing decisions and to enable the Office to quickly organize carrier-submitted data for
useful analysis for its stakeholders.

The Office has developed a system to efficiently collect rate information from insurers and
provide a Website for consumers, with which they can enter their demographic statistics and
obtain prices for different plans and from different carriers.

Oracle 10G Upgrade

In November 2009, a significant upgrade was executed for a nearly 10-year old relational
database management system called Oracle 8i (launched by Oracle in 1999) to Oracle 10g
(launched by Oracle in 2007). This upgrade affected the majority of the Office’s systems.
Over a three month period, all systems’ technical code was frozen and only well-documented
emergency deployments were executed. Once the upgrade from Oracle 8i to 10g was in effect,
the Office’s technology and business unit staff tested the impacted systems to ensure they were
operating properly. The upgrade has been completed successfully.




                                              13
                            Office of Insurance Regulation
                                           Transition 2010

Organizational Chart




                       14
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

Legislative Achievements

Florida Public Hurricane Model

The Public Model, housed at Florida International University (FIU), was created in 2001 to be
the first public, transparent model of its kind in the United States. It is the work product of the
state university system and included large contributions of resources from FIU, the University of
Florida and The Florida State University. The current version of the Public Model meets the
standards of the Florida Commission on Hurricane Loss Projection Methodology and is used by
the Office of Insurance Regulation and Citizens Property Insurance Corporation as a benchmark
for rate filings. The State Board of Administration uses the Public Model and the other
approved models to establish reimbursement rates for the Florida Hurricane Catastrophe Fund.
The Office runs most residential rate filings through the Public Model. Every assumption and
method of the Public Model is open to public inspection, which gives greater transparency to
the rate review process.

Implementation of HB 1A (2007)

In January 2007, the Legislature convened for a special session focused exclusively on the
availability and affordability of property insurance. The resulting legislation (HB 1A) required
the Office to, among other things, develop and implement a “presumed factor” by which
insurance rates were to be lowered in exchange for the state assuming increased risk through
expansion of the Florida Hurricane Catastrophe Fund. The resulting presumed factor filings
decreased insurance rates by a statewide average of 15.9%.

Federal Natural Catastrophe Legislation

Commissioner McCarty has been a consistent advocate for a Federal Catastrophe Plan aimed at
fortifying the nation from financial ruin as a result of natural disasters. Under the Leadership of
former US Representative Ron Klein (D-West Palm Beach) the US House passed HR 2555, the
Homeowners Defense Act of 2009, which had bi-partisan support from every member of the
Florida delegation. In addition to HR 2555, there have been numerous other legislative
initiatives to address National Catastrophe exposure. The office will continue to support efforts
to create a national disaster plan.

Funding for Insurers’ Financial Examinations

The Office successfully lobbied for statutory changes which allowed for financial exams of
insurance companies to be outsourced. Prior to 2007, all examinations conducted by the Office
were done by state employees at a significant cost to taxpayers. The statutory changes made
in HB 1549 also allow insurers to be billed directly for the cost of the exam, allowing for
streamlined payment for these services. The outsourcing of these examinations has resulted in
cost savings and has brought Florida in compliance with national standards established by the
National Association of Insurance Commissioners.

Discount Medical Plan Organizations

The Discount Medical Plan Organization enabling legislation charged the Office with the

                                                15
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

responsibility to regulate products sold in the Discount Medical Plan industry. Prior to the
enactment of a regulatory structure in this industry, the Department of Financial Services,
Division of Consumer Services, received over 1,000 consumer complaints per year. Through the
legislative changes and implementation efforts of the Office, consumer complaints have
decreased by 90%.

Long-Term Care Insurance

In 2005, the Office conducted a comprehensive study of Long-Term Care (LTC) Insurance in an
effort to find solutions to rate increases on older LTC policies and to enhance sales on newer
adequately priced products. The collected feedback from the study, private insurers, consumers
and the regulators as well as from the 2005 public hearing ultimately led to the Long-Term Care
Insurance market reforms of 2006. The Florida Legislature approved a senior protection bill, HB
947 (Ch. 2006-254), which makes Long-Term Care Insurance (LTC) more affordable, available,
and marketable. The law is designed to restore confidence in the LTC market and increase
overall sales to seniors which have declined in recent years due to problems in the market. The
legislation establishes a Long-Term Care Partnership Program with Medicaid, which provides
seniors incentives to purchase more affordable Long-Term Care Insurance, by allowing them to
protect their personal assets in an amount equal to the benefits provided by their policy from
Medicaid spend-down requirements.

In closed blocks of business, the law protects seniors by limiting the amount of a rate increase
applicable to in-force long term care policies and provides a non-forfeiture benefit on lapse as
well as an incontestability provision. As a result, seniors will know that their insurer did a
thorough job of reviewing their application and will be protected from post-claim underwriting
or any frivolous allegations of fraud when applying for benefits. Seniors and their families are
protected from excessive rate increases in the future that result from an insurer choosing to
close a block of business and sending it into a rating “death spiral.”

In the event of justifiable rate increases, seniors now have options to reduce benefits or cancel
their policy but at least walk away with a paid up policy equal to the amount of premiums
already paid. This is currently available to seniors that purchased a LTC policy after March
2003; however, at that time, the Legislature did not include the same protections to policies
already in force.

Life Insurance, Intent to Travel

This Legislation makes it an unfair trade practice to use travel plans in underwriting life
insurance policies unless the insurer can prove that it is based on sound actuarial principles and
actual or reasonably anticipated experience and provides a process to make exceptions to the
law using the rulemaking authority of the Florida Financial Services Commission. Under the
legislation, the Office is required to review all applications that are denied based on travel in
market conduct examinations and triple the fines for such violations.

The law prevents insurance companies from unfairly discriminating against people who travel
outside the country. The measure prohibits charging higher rates or refusing coverage to those
applying for insurance solely on the basis of that individual’s past lawful foreign travel
experiences or solely on the basis of the individual’s future lawful foreign travel plans (unless


                                               16
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

the insurer can provide justification as to why the travel has an adverse effect on the insured’s
health or life expectancy).

Florida’s National Leadership Role

The National Association of Insurance Commissioners (NAIC)

The National Association of Insurance Commissioners (NAIC) is the organization of insurance
regulators from the 50 states, the District of Columbia and the five U.S. territories. The NAIC
provides a forum for the development of uniform insurance regulatory policy, when uniformity
is appropriate.

State insurance regulators created the NAIC in 1871 to address the need to coordinate
regulation of multi-state insurers. The first major step in that process was the development of
uniform financial reporting by insurance companies.

Since then, new legislative concepts, new levels of expertise in data collection and delivery, and
a commitment to even greater technological capability have moved the NAIC forward into its
role as a multidimensional, regulatory support organization.

With offices in Kansas City, Missouri, New York and Washington, D.C., the NAIC staff provides
invaluable support and information to insurance regulators, companies and consumers.

The mission of the NAIC is to assist state insurance regulators, individually and collectively, in
serving the public interest and achieving insurance regulatory goals in a responsive, efficient
and cost effective manner, consistent with the wishes of its members.


Florida and the NAIC

Florida has exercised leadership within the NAIC by serving as Chair or Vice Chair of significant
standing committees and continues to be actively involved in several key committees of the
NAIC. The Office is an active participant in the NAIC Commissioner McCarty currently serves as
Vice President of the organization. In 2011, he will serve as President-Elect and in 2012,
President of the NAIC.

Florida chairs the NAIC’s Senior Issues Task Force, which deals with issues such as Medicare,
Medicare supplement insurance, and long-term care insurance that affect so many of Florida’s
senior population. In addition, Florida chairs the International Insurance Relations Committee,
which is responsible for strengthening the international insurance regulatory system and
providing a forum for cooperative efforts among state insurance regulators, international
regulators, and multi-national associations of regulators on issues of mutual interest.

Florida has been active in recent years in the areas of Catastrophe Insurance, the Solvency or
Financial Oversight committees, as well as many national market conduct issues that have
resulted in millions of dollars being returned to consumers. Participation in NAIC activities has
put Florida in the forefront of many issues that are critical to the ability of the Office to
understand and influence insurance markets.

                                               17
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010


International Insurance Regulation
Commissioner McCarty has elevated Florida’s international presence by serving as a United
States representative on the International Association of Insurance Supervisors’ (IAIS)
Executive and Technical Committees, as well as the Joint Forum, a key group of leading
international regulators from the insurance, banking and securities sectors.

The Joint Forum works collaboratively with the Financial Stability Board – an international body
of financial ministers and central bank governors from countries with the largest economies in
the world. As Chair of the International Insurance Relations (G) Committee of the NAIC,
Commissioner McCarty is working with European leaders to achieve a transitional equivalence
for Europe’s Solvency II requirements. Gaining EU equivalency is critical for the United States in
order to prevent an exodus of capital. Without equivalency, American companies would be
required to post additional collateral to operate in Europe.


National Conference of State Legislators (NCOIL)

Historically, the Office participated in the National Conference of Insurance Legislators
(NCOIL). However, due to severe budget cuts, the Office restricts travel to NCOIL meetings to
only those meetings where the Office is presenting to a committee at NCOIL.

NCOIL consists of state legislators from around the country that serve in leadership positions or
are active members of the committees responsible for insurance and banking in their respective
legislative houses. NCOIL assists legislators in making informed decisions on insurance issues
that affect their constituents and improves the quality of state legislation by providing
interaction and open dialogue with elected legislative officials from around the country. When
attending an NCOIL meeting, Office staff participate in and attend committee meetings, special
subcommittee meetings, roundtable discussions, and general sessions.

NCOIL and the NAIC have made recent efforts to improve collaboration and communication of
insurance issues affecting the states through Legislative Liaison committees.




                                               18
                                                                         Office of Insurance Regulation
                                                                                        Transition 2010

The Florida Insurance Marketplace Snapshot, September 2010


Regulated Entities as of June 30, 2010

The Office regulated a total of 3,972 insurance entities.

Life & Health Insurers                            828
Property & Casualty Insurers                    1,448
Specialty & Other Entities                      1,524
Surplus Lines                                     172

Excludes advisory organizations and rating organizations.


Overview of Insurance Premium in Florida

                                      Calendar Year 2009

Admitted
Property & Casualty                           $38.5 billion
Life & Health                                 $64.6 billion
Other                                         $0.9 billion
Total                                         $104.0 billion

Surplus Lines Market*                         $3.9 billion
Citizens Property Insurance                   $2.4 billion
Residual Markets**                            $0.03 billion

Total Written Premium                                   $110.3 billion

*Surplus Lines Companies write unique risks that often include high value residential and
commercial properties.

**Residual markets are entities that sell coverage for consumers who cannot obtain coverage
through private companies in Florida.




                                                19
                                                                 Office of Insurance Regulation
                                                                                Transition 2010

Florida Domestic Insurance Companies as of June 30, 2010

Authority Category                               Authorities
Property & Casualty                                 133
Third Party Administrators                          94
Service Warranty Associations                        70
Premium Finance Companies                            56
Continuing Care Retirement Communities               54
Motor Vehicle Service Organizations                  60
Health Maintenance Organizations                     37
Risk Purchasing Groups                               43
Life & Health                                        18
Self-Insurance Funds                                207
Other*                                              400
Total Domestic Authorities**                       1,172

Total Domestic Companies***                         1,120

*The “Other” category is predominately donor annuities (281).
** 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.




                                            20
                                                            Office of Insurance Regulation
                                                                           Transition 2010

Top 20 Personal Residential Writers in Florida Policies as of December 31, 2009

                                              Policies
1 Citizens Property                           975,500
2 State Farm Florida                          765,998
3 Universal Property & Casualty               536,692
4 St. Johns                                   195,613
5 USAA                                        157,020
6 Castle Key (Allstate)                       150,094
7 ASI Assurance                               129,179
8 Homewise Preferred                          115,646
9 Florida Peninsula                           114,609
10 Nationwide                                 112,738
11 Royal Palm                                 112,520
12 Universal                                   97,712
13 United Property & Casualty                   93,094
14 Liberty Mutual                               88,792
15 American Integrity                           87,657
16 American Strategic                           86,997
17 Tower Hill Prime                             81,644
18 Southern Fidelity                            81,570
19 Florida Family                               81,467
20 Sunshine State                               76,633




                                         21
                                                                Office of Insurance Regulation
                                                                               Transition 2010


Top 20 Personal Automobile Writers in Florida Premium for Calendar Year 2009

                                      (Premium in millions)
1 State Farm Mutual                          $2,360
2 GEICO General                              $953
3 Progressive American                       $686
4 Allstate Property & Casualty               $664
5 Allstate Insurance                         $594
6 Progressive Select                         $542
7 GEICO Indemnity                            $510
8 Government Employees                       $344
9 USAA                                       $333
10 Allstate Fire & Casualty                  $266
11 USAA Casualty                             $237
12 Allstate Indemnity                        $168
13 Direct General                            $166
14 Depositors Insurance                      $160
15 State Farm Fire & Casualty                $159
16 Security National                         $143
17 Mercury                                   $142
18 Metropolitan Casualty                     $130
19 Progressive Express                       $128
20 Liberty Mutual                            $127

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




                                            22
                                                                  Office of Insurance Regulation
                                                                                 Transition 2010

Life & Annuity Writers in Florida Premium for Calendar Year 2009

                                         (Premium in millions)
1 John Hancock Life                           $1,555
2 Lincoln National Life                       $1,264
3 Metlife Investors USA                        $ 998
4 Transamerica Life                            $ 982
5 Jackson National                             $ 975
6 Metropolitan Life                            $ 941
7 New York Life                                $ 898
8 Massachusetts Mutual                         $ 851
9 Allianz Life                                 $ 849
10 Prudential Annuities                        $ 832


Accident & Health Writers in Florida Premium for Calendar Year 2009*

                                         (Premium in millions)
1 Blue Cross & Blue Shield                    $6,168
2 Humana Medical Plan                         $4,569
3 UnitedHealthcare                            $4,423
4 Aetna Health                                $1,988
5 Wellcare of Florida                         $1,412
6 UnitedHealthcare of Florida                 $1,301
7 AvMed                                       $1,068
8 Careplus Health Plans                       $ 992
9 Coventry Health Care                        $ 771
10 Health Options                             $ 674

*Accident and Health premium dollars represent all lines of accident and health insurance:
major medical, limited benefit, Medicare supplement, long-term care, etc.

Source: National Association of Insurance Commissioners’ I-Site




                                              23
                                                                 Office of Insurance Regulation
                                                                                Transition 2010

World/States Premium Comparison

   Rank         Country/State             Premium in Millions

                  United States              $1,139.8
                  Japan                         506.0
                  United Kingdom                309.2
                  France                        283.1
                  Germany                       238.4
                  Italy                         169.4
                  China                         163.1
                  California                    114.8
                  Netherlands                   108.1
                  New York                       104.6
                  Canada                         98.8
                  South Korea                    92.0
                  Spain                          82.8
                  Texas                          77.6
                    Florida                       75.2
                  India                          65.1
                  Taiwan                         63.7
                  Australia                      60.3
                  Brazil                         48.8
                  Switzerland                    48.5
                  Pennsylvania                   46.8
                  Illinois                       46.6
                  Ireland                        44.6
                  New Jersey                     41.3
                 Belgium                         40.5

*Total Premium includes Property & Casualty Premium, Life Premium, and some Health
premium. Excludes Health Maintenance Organization data.

Source: Insurance Information Institute 2010 Fact Book (based on 2008 data).




                                            24
                                                               Office of Insurance Regulation
                                                                              Transition 2010

Enforcement Actions Fiscal Year 2009-2010

Financial/Regulatory
Certificates of Authority Suspended                             6
Certificates of Authority Revoked                               13

Administrative Fines
Life & Health Product Review                                    $6,000
Property & Casualty Product Review                              $128,500
Specialty Product Administration                                $1,359,600
Market Conduct/Investigations                                   $603,750
Life & Health Financial Oversight                               $117,600
Property & Casualty Financial Oversight                         $79,700
Surplus Lines                                                    $2,500
Bad Check Service Fees                                           $305
Attorneys’ Fees                                                  $559,426

Total Administrative Fines                                       $2,857,381
Total Consumer Refunds*                                          $39,215,494

Public Hearings
Rate Hearings                                                   7
Other Hearings                                                  3
Rule Hearings/Workshops                                         13

*Consumer refunds represent monies returned to consumers due to activities of the
Market Investigations business unit.




                                          25
                                                          Office of Insurance Regulation
                                                                         Transition 2010

Regulatory Activities Fiscal Year 2009-2010

Financial Reviews (Desk Audits)
Life & Health                                            2,491
Property & Casualty                                      4,513
Specialty                                                2,067

Market Conduct
Market Conduct Examinations                               82
Market Conduct Investigations                            1,164

Financial Field Examinations
Life & Health                                            14
Property & Casualty                                      63
Specialty                                                91


Form and Rate Filings Processed
    Business Unit             Files                Time to Process
    Life & Health               7,565              20 Days
    Property & Casualty       10,002               44 Days
    Total                     17,567               Average 34 Days

Applications                                                          Statistics

In Fiscal Year 2009-2010, the Office processed 561 company applications, which
were processed in an average of 46 days. These applications were either
approved, denied, withdrawn or deemed incomplete.           In addition, 848
investigations of Officers and Directors were completed in an average of 61
days.




                                        26
                                                                        Office of Insurance Regulation
                                                                                       Transition 2010




      Historical Budget Overview



             FY 2004-     FY 2005-      FY 2006-     FY 2007-    FY 2008-      FY 2009-        FY   2010-
             2005         2006          2007         2008        2009          2010            2011




FTE          302          305           311          315         314           300             290



OIR          $23,777,3    $21,623,1     $24,150,6    26,939,1    $24,966,9     $28,003,46      $28,141,64
Budget       84           02            45           44          51            2*              1*
      *Fiscal Year 2009-2010 and 2010-2011 Budget includes a special category of $4,701,763 in
      budget authority for the outsourcing of some financial examinations. This is budget authority
      only. The Insurance Regulatory Trust Fund (Trust Fund) acts as a pass-through and insurers
      pay the cost of the examination back to the Trust Fund; therefore it is revenue neutral.




                                                    27
                                                                    Office of Insurance Regulation
                                                                                   Transition 2010


FY 2010-11 Budget Overview


Full-Time Employees                                  290
Total Budget*                                       $28,141,641

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

*FY 2010-2011 Budget includes a special 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 2010-2011)
Regulatory                                          89%
Administration                                      11%

Position Allocation (Fiscal Year 2010-2011)
Regulatory                                          88%
Administration                                      12%

Revenue Collected (Fiscal Year 09-10)*
Insurance Premium Tax**                            $667,900,000
Examination Cost Assessments                       $7,991,412
Fees                                               $1,436,845
Penalties/Fines                                    $2,857,381

*Office revenue is deposited into the Insurance Regulatory Trust Fund.

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




                                              28
                                                                    Office of Insurance Regulation
                                                                                   Transition 2010

PART II
LEADERSHIP AND BUSINESS UNITS OF THE OFFICE OF INSURANCE REGULATION

Office of the Commissioner

Kevin M. McCarty
Commissioner of Insurance Regulation

       Larson Building       Room 101 A
       Phone                 413-5914
       VoIP                  15914
       Fax                   488-3334
       Email Address         Kevin.McCarty@floir.com

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

During his tenure, Commissioner McCarty has led the Office of Insurance Regulation’s (Office)
efforts to address a myriad of regulatory deficiencies that negatively impact consumers and the
insurance industry. Working with the Legislature, McCarty led the effort to enact some of the
nation’s most comprehensive consumer protections in the long-term care market. In addition,
Commissioner McCarty’s leadership resulted in legislation that prohibits life insurers from
discriminating based on the travel plans of their policyholders. Following the 2004-05 hurricane
seasons that featured an unprecedented eight hurricanes, Commissioner McCarty has worked
with the Florida Legislature and Congress to address challenges in the property insurance
market.

In addition to his role as Florida’s Insurance Commissioner, McCarty serves as the Vice
President of the National Association of Insurance Commissioners (NAIC), an organization
comprised of leaders from all 50 states and five U.S. territories that acts as the voice of
regulators on national and international issues concerning the insurance industry. Under
McCarty’s leadership, the Office was recently awarded the esteemed “Esprit de Corps” award,
which recognizes exemplary service by a state regulatory agency. Commissioner McCarty is
slated to become the President of the NAIC in 2012.

Commissioner McCarty has been privileged to testify before numerous committees of the United
States Senate and House of Representatives on matters relating to almost every sector of the
insurance industry.

Commissioner McCarty has elevated Florida’s international presence by serving as a United
States’ representative on the International Association of Insurance Supervisors’ (IAIS)
Executive and Technical Committees, as well as the Joint Forum, a key group of leading
international regulators from the insurance, banking and securities sectors.

In addition to McCarty’s service as Insurance Commissioner, he has served on the State of
Florida Executive Board as the Event Chair of the Tallahassee Chapter of the March of Dimes,


                                              29
                                                                   Office of Insurance Regulation
                                                                                  Transition 2010

helping to raise more than $1 million for pre-natal care and the treatment of infant birth
defects.

Commissioner McCarty received his bachelor’s degree and Juris Doctor from the University of
Florida.

Overview of Office of the Commissioner
The Commissioner of Florida’s Office of Insurance Regulation provides the Office’s policy and
executive leadership.     In this capacity, the Commissioner supervises two Deputy
Commissioners, the Chief of Staff, General Counsel and the Inspector General.

In addition, the Commissioner employs a Policy Advisor, responsible for providing guidance to
senior staff members on proposals and market trends impacting the Office and regulated
entities. Further, the Office of the Chief Economist provides guidance and research on the
economic impacts associated with emerging regulatory issues, production of statutorily
mandated annual reports, and produces complex analysis of Florida’s role in the global
insurance marketplace.

The Commissioner serves as a member of the National Association of Insurance Commissioners
(NAIC), the national organization of insurance regulators from all 50 states, the District of
Columbia and the five U.S. territories. The NAIC provides states with a forum for the
development of uniform policy where appropriate. Participation at the NAIC affords the Office
the opportunity to take part in resolving major insurance issues and contribute to the
development of national policies.

The Commissioner is responsible for formulating and submitting strategic goals of the Office to
the Financial Services Commission. This includes an annual submission of Performance
Measures to ensure accountability, measures which are approved by and reported to the FSC.

All functions within the Commissioner’s Office are divided into one of two program areas:
Executive Direction and Support, and Compliance and Enforcement.

Executive Direction and Support includes the Commissioner’s Office, the Office of General
Counsel/Legal Services, and the Office of the Inspector General (OIG).

Compliance and Enforcement consists of the Office of the Chief of Staff, Insurer Regulation
Offices of Deputy Commissioner for Life and Health Insurance, Deputy Commissioner for
Property and Casualty Insurance, and Market Research.




                                              30
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Office of Inspector General

Bonnie Deering
Inspector General

       Claude Pepper Bldg    Room 680E
       Phone                 413-3113
       VoIP                  14974
       Fax                   488-9843
       Email Address         Bonnie.Deering@floir.com

Bonnie Deering is the Inspector General for the Florida Office of Insurance Regulation. Her
primary responsibilities include overall supervision and operation of the Office of Inspector
General. The Office of Inspector General is the central point within the Office of Insurance
Regulation for coordination of and responsibility for activities that promote accountability,
integrity, effectiveness, efficiency and cost-effectiveness of the Office’s operations and
administration. This is accomplished by conducting internal audits, investigations, management
reviews and other accountability activities in accordance with professional standards and
applicable federal and state laws and rules.

Ms. Deering received her Bachelor of Science degree in Finance from The Florida State
University School of Business. She was employed as an Assistant National Bank Examiner with
the United States’ Office of the Comptroller of the Currency prior to being selected as an
Internal Auditor with the Florida Department of Labor and Employment Security’s Office of
Inspector General in 1988. In 2000, Ms. Deering transferred to the Agency for Workforce
Innovation’s Office of Inspector General, where she served as Lead Investigator and was later
promoted to Investigations Manager. Ms. Deering came to the Office of Insurance Regulation
in 2005, and was selected to serve as the Office’s Audit Director. Ms. Deering was appointed
Inspector General for the Office of Insurance Regulation in July 2009.


Overview of the Office of Inspector General
The mission of the Office of Inspector General is to assist the Commissioner of Insurance and
other Office of Insurance Regulation managers in successfully fulfilling the goals and objectives
of the Office by:
     Providing investigative services, internal audits, and internal management reviews,
        business consultation services and technical consultation services.
     Providing assessments of the effectiveness of management functions.
     Promoting integrity, economy, efficiency, effectiveness and cost-effectiveness with
        regard to the Office of Insurance Regulation’s operations and administration.

The Office of Inspector General has developed and implemented the charter, programs, policies
and procedures that are required to support the mission of the Office of the Inspector General.
The Office of Inspector General recently underwent a Quality Assurance Review that was
performed by the State’s Auditor General (dated October 16, 2009). The results of the review
showed that the Office of Insurance Regulation’s Office of Inspector General had conformed to
professional auditing standards, as well as the provisions of Section 20.055, F.S., which governs

                                               31
                                                                  Office of Insurance Regulation
                                                                                 Transition 2010

the operations of State agencies’ offices of inspector general.

Annual or Recurring Events
      Review and update as needed, the Office of Inspector General’s charter, mission,
       policies and procedures.
      Review and update the Office’s Auditable Unit descriptions.
      Review, update, and execute the Office of Inspector General’s risk assessment process
       for purposes of assessing risks associated with the Office’s Auditable Units.
      Review and update both the Office of Inspector General’s Annual Work Plan and the
       Office of Inspector General’s Long-Term Work Plans.
      Prepare the Annual Report that summarizes the activities of the Office of Inspector
       General, as required by Section 20.055(7), F.S.




                                                32
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Office of the Chief of Staff

Audrey Brown
Chief of Staff

       Larson Building         Room 121 B
       Phone                   413-5100
       VoIP                    15100
       Fax                     488-2348
       Email Address           Audrey.Brown@floir.com

Audrey Brown serves as Chief of Staff to Florida Insurance Commissioner Kevin McCarty. She
serves as a policy advisor to the Commissioner, chief lobbyist on agency fiscal matters and
manages the operations of the Florida Office of Insurance Regulation (Office). Ms. Brown
directly oversees the offices of Deputy Chief of Staff, Government Affairs,
Communications/Press, the National Association of Insurance Commissioners (NAIC) Liaison,
Budget, Personnel, and Contracts. Ms. Brown participates on several NAIC committees relating
to technology issues and government relations. Ms. Brown was appointed to this post by
Commissioner McCarty in November 2007.

Ms. Brown previously served as Deputy Chief of Staff to Commissioner McCarty from June 2007
to November 2007. Her responsibilities included overseeing the Market Research, Technology
and Cabinet Affairs offices. Ms. Brown also served as Cabinet Affairs Liaison and then Director
of Legislative Affairs for the Office from 2003-2005.

Ms. Brown began her professional career in 2000. From January 2000 through June 2003, she
served in the Executive Office of Governor Jeb Bush, where she worked as the assistant to the
Director of Scheduling and later in the Appointments office, where she was responsible for
reviewing applicants and recommending appointments to boards, commissions, judgeships and
agency heads to the Governor.

From September 2005 through June 2007, Ms. Brown served as Manager of Contract
Compliance & Administration for AvMed Health Plans, a not-for-profit health maintenance
organization (HMO) in Gainesville, FL. In that role, Ms. Brown was responsible for regulatory
affairs: ensuring compliance of policy forms, contracts and advertisements. During that time,
Ms. Brown returned to public service for a 60-day period where she worked with the Governor’s
office, the Department of Financial Services and the Office as Director of Fortify Florida, which
later evolved into the My Safe Florida Home Program.

In addition, Ms. Brown is a member of the Florida TaxWatch 2010 Governor’s Transition
Decision Handbook Steering Committee.

Ms. Brown graduated from The Florida State University in Tallahassee, FL where she received a
Bachelor of Science Degree in Political Science and a minor in Communications.

Overview of the Office of the Chief of Staff
The Office of Chief of Staff is the senior executive management unit of the Office of Insurance
Regulation (Office). The Chief of Staff provides leadership, administrative direction and policy

                                               33
                                                                   Office of Insurance Regulation
                                                                                  Transition 2010

advice to the units within the Office, manages the fiscal resources and personnel to maximize
the delivery of services and technical assistance, and advises the Commissioner, Governor,
Cabinet and Legislature on policies relating to the regulation of insurance.

The Office of Chief of Staff is responsible for the coordination and completion of a series of
required executive actions, including:
      Submitting the Office’s annual legislative budget requests;
      Serving as the chair of the Technology Steering Committee, which conducts bi-weekly
       meetings to identify, prioritize and oversee system technology plans and projects;
      Coordinating and approving Office personnel actions;
      Serving as the agency’s safety coordinator;
      Serving as the agency’s disaster coordinator;
      Serving as the agency’s personnel and purchasing liaison contact for matters involving
       the Department of Financial Services;
      Coordinating informational memoranda releases.

The Chief of Staff directly supervises the Communications Office, Government Relations Office,
and the budget and personnel managers of the Office.




                                             34
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

Office of the Deputy Chief of Staff

Rebecca                            S.                          McCarley
Deputy Chief of Staff

       Larson Building        Room 121
       Phone                  413-5086
       VoIP                   15086
       Fax                    488-2348
       Email Address          Rebecca.McCarley@floir.com

Rebecca McCarley joined the Office of Insurance Regulation (Office) as the Deputy Chief of
Staff in 2008. In this capacity, she assists in managing internal operations, including budget,
personnel, contracting, and advises on legislative, cabinet affairs and communications
initiatives. In addition, Ms. McCarley directs the market research/data collection and technology
business unit – charged with ensuring efficiency and transparency in the collection and
validation of data that is collected from regulated entities, as well as the day-to-day operations,
maintenance and development of Office technology systems.

Prior to joining the Office, Ms. McCarley directed the legislative program for the Department of
Management Services – a Governor’s agency with an annual budget of $658 million and the
delivery of more than $7 billion in government programs and services – including state
employee and retiree health insurance and benefits, procurement, information technology,
retirement system, human resource management, real estate management and private
prisons. Ms. McCarley also served as the legislative affairs director for the Florida Lottery – a
Governor’s agency that generates more than $4 billion per year in annual sales and more than
$1 billion contributed to education annually.

Additionally, Ms. McCarley has served in lead communications roles for two statewide
associations and two political campaigns. She was the Vice President of Communications for
the Florida Bankers Association having served as the spokesperson for state and national
media; directed media relations, marketing and multi-media campaigns; and was the Editor of
Florida Banking magazine (a monthly publication featuring banking and insurance industry
related articles and member features).

Ms. McCarley is a Certified State of Florida Contract Manager and received her Bachelor of
Science degree in Communications and a minor in Political Science from The Florida State
University.


Overview of the Office of the Deputy Chief of Staff
Supports the Chief of Staff in:
      Directing the planning and organizing of administrative activities for the Office of
       Insurance Regulation (Office)
      Overseeing Office personnel, budget, contracts, legislative affairs, cabinet affairs,
       communications
      Advising on public policy and emerging issues
      Administering business development initiatives and marketing materials
      Participating as a member of the Office COOP Team and Department of Financial
       Services’ Disaster Response Team

                                                35
                                                                    Office of Insurance Regulation
                                                                                   Transition 2010

      Acting chair of the Technology Steering Committee – a monthly meeting to identify,
       prioritize and oversee technology plans and projects

Market Research & Technology
In addition, the Deputy Chief of Staff’s Office directs the Market Research and Technology Unit,
which serves as the data clearinghouse for the collection and dissemination of public insurance
industry data. This unit is comprised of two areas that support the Office in the oversight and
development                 of              Florida’s             insurance            markets.

The primary purpose of the Market Research Unit is to ensure efficiency and transparency in
the collection and validation of data that is collected from regulated entities. This section
provides the data to satisfy public record requests, legislatively mandated reports and internal
business unit requests.

The Technology Unit’s primary role is to support the Office in the day-to-day maintenance and
development of computer applications. This unit works very closely with technical staff
augmentation vendors and with the Department of Financial Services/Division of Information
Systems to meet the needs of internal and external users by ensuring that systems are
functioning properly.




                                              36
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Communications Office

Jack McDermott
Director of Communications

       Larson Building        Room 121
       Phone                  413-5083
       VoIP                   15083
       Fax                    488-2348
       Email Address          Jack.McDermott@floir.com

Jack McDermott has been the Director of Communications since January 2010 although he
assumed the “acting” role in August 2009. His responsibilities include representing the Office of
Insurance Regulation (Office) to the news media, responding to media requests for information,
and coordinating interviews. He is also the Office’s primary speechwriter, and writes material for
internal reports, press releases, congressional testimony, and the website.

Mr. McDermott has 14 years of experience with the Office beginning in 1996 as a senior
management analyst in the former Department of Insurance. During his career, he has served
as a special project manager assisting in the development of computer applications (QUASR &
METS), worked in the Life and Health Solvency section, and worked for five years as a manager
for Life and Health market conduct examinations.

He also worked in the Market Research Unit to develop statutory reports including the Freedom
to Travel Report, Workers’ Compensation Report, and Medical Malpractice Report. He also has
conducted internal reports including a study of the National Flood Program and the Florida
Long-Term Care Marketplace; he most recently served as a senior policy analyst and
speechwriter before assuming his current position.

Mr. McDermott received a Bachelor’s degree in political science with honors from Colgate
University, and received a Master’s in Public Policy (M.P.P.) from Harvard University. He is a
Chartered Property Casualty Underwriter (CPCU), a Fellow of the Life Management Institute
(FLMI), a Certified Public Manager (CPM), and has an Associate in Risk Management (ARM)
from the Insurance Institute of America.

Overview of Communications office
The Communications Office serves as the primary contact with the news media and the
significant responsibilities of the Communications Office include:
      Researching, writing, editing and distributing Office press releases;
      Coordinating interviews with news media and the Commissioner and Senior
       management;
      Responding to public or media requests for information;
      Coordinating internal communications to assure the media and interested parties have
       access to the most current information and expertise available to better understand
       complex insurance regulatory issues and actions.
      Serves as the primary speech writers for the Commissioner and staff.



                                               37
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Government Affairs Office

Monte Stevens
Director of Government Affairs

       Larson Building       Room 121
       Phone                 413-5042
       VoIP                  15042
       Fax                   488-2348
       Email Address         Monte.Stevens@floir.com

Monte Stevens has served as Government Affairs Director for the Office of Insurance Regulation
(Office) since June 2009. In this capacity, he serves as the Office’s primary representative to
the Legislature and the Florida Cabinet.

Mr. Stevens frequently represents Commissioner McCarty in a variety of public capacities
including Cabinet meetings, Legislative committees and town hall meetings throughout the
state. Further, he is responsible for advocating the Office’s Legislative agenda and overseeing
the Office’s outreach efforts to Legislative members and staff.

Prior to joining the Office, Mr. Stevens served as a policy analyst in the Majority Office of the
Florida House of Representatives, and was the Deputy Legislative Director for the Department
of Financial Services and Agency for Health Care Administration. A native of Niceville, Florida,
Mr. Stevens graduated from the University of Missouri-Kansas City with a Bachelor’s Degree in
Political Science and Kansas State University with a Master’s in Communication Studies.

Overview of Government Affairs Office
The Government Relations Office consists of a Cabinet Affairs Office and Legislative Affairs
Office and is responsible for the development, coordination, and communication of legislative
priorities and rulemaking.

The Legislative and Cabinet Affairs Office’s are responsible for establishing and maintaining
contacts on legislative matters within the Executive Office of the Governor, the Florida
Legislature, and other local, state, and federal entities. Among its responsibilities:
      Response and communication to legislative members and staff matters affecting policy
       and administration of Office insurance programs and activities.
      General oversight of legislative activities involving Office business units.
      Administration of pre-legislative activity that includes:
          o Coordination of interim meetings with legislators.
          o Coordination of interim legislative projects.
          o Gathering, where appropriate, input from industry representatives and other
              interested parties related to potential legislative initiatives.
          o Coordination of drafts for proposed bills and bill amendments.
          o Solicitation of legislative sponsorship for regulatory initiatives.
          o Providing briefing materials for Financial Services Commission/Legislative
              Directors of interested or affected executive and cabinet agencies.
      Representation of the Office during Legislative Session that includes:


                                               38
                                                                   Office of Insurance Regulation
                                                                                  Transition 2010

          o   Meeting with and providing information to legislators on matters that affect the
              regulation of the insurance industry.
          o Managing legislative calendars and required committee appearances.
          o Monitoring and prioritizing of legislation affecting the Office.
          o Coordinating bill analyses provided to legislative members and staff.
          o Appearing before legislative committees, as required.
          o Coordinating responses to legislative information requests.
      Coordination of post-session activities that include:
          o Publication/distribution of post-session legislative summaries and reports.
          o Implementation of policies, procedures and programs that assure the accurate
              and timely implementation of legislation.
          o Management of Office response to constituent requests from legislative offices
              and committee staff.
          o Management of the Office’s internal program to assure timely implementation of
              legislative mandates, to assure appropriate rules are developed and
              implemented, and ensure the impact of new legislation is communicated
              effectively within the Office and its regulated entities.

The primary role of the Cabinet Affairs Office is to facilitate communication with and response
to matters affecting Office oversight by the Financial Services Commission. The Cabinet Liaison
works with and is an active part of the Governmental Relations Office. Unique responsibility
assigned to Cabinet Affairs includes:
      Interaction with the Financial Services Commission -- providing information regarding
       proposed rules, board recommendations, legislation and other matters affecting the
       Office
      Coordination and presentation to Cabinet Aide briefings on matters affecting the Office
      Coordination of appointments and recommendations for boards and commissions




                                              39
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Legal Services

Office of General Counsel
Steven H. Parton
General Counsel

        Larson Building      Room 612 L
        Phone                413-3110
        VoIP                 14274
        Fax                  413-7460
        Email Address        Steve.Parton@floir.com

Steve Parton has been the General Counsel of the Office of Insurance Regulation (Office) since
the Office’s inception in 2003. As the Office’s General Counsel, Steve directs the Legal Services
Office which consists of 22 lawyers that are divided into two broad functional areas: Regulatory
Actions and Litigation. In addition, he provides legal counsel to the Commissioner and the
Financial Services Commission regarding all matters related to the regulation of insurers.

Mr. Parton previously headed the Property and Casualty Section of the Legal Division in the
former Department of Insurance. That Section was responsible for legal oversight of all matters
related to property and casualty including licensing and acquisition of companies, opinions
related to property and casualty issues, and all litigation arising from property and casualty
issues, including rates, forms, and administrative actions taken against companies and their
directors and officers. He originally came to the former Department of Insurance in 1997 as its
Special Litigation Counsel because of his extensive litigation and trial experience. In that
position he was responsible for all major litigation of the Department as directed by the
Treasurer and Commissioner of Insurance.

In his more than 30 year legal career, Mr. Parton has had the opportunity to serve the public in
a number of capacities. He has held such positions as Assistant Public Defender, Chief Assistant
State Attorney, Executive Director of the Office of Prosecution Coordination in the Executive
Office of the Governor, Chief of the Civil RICO Section of the Attorney General’s Office, and
Assistant Director of the Economic Crimes Division of the Attorney General’s Office.

Mr. Parton received a Bachelor’s Degree in Business Administration and a Juris Doctor from The
Florida State University.

Overview of Office of Legal Services

Legal
The attorney, paralegal, and administrative staff of the Office’s Legal Services Unit provides
legal advice and counsel to the Office, under the direction and supervision of the General
Counsel. The Legal Services unit represents the Office in state and federal courts, informal
administrative hearings, hearings at the Division of Administrative Hearings, and cases pending
in any other forum. The Legal Services Office also reviews applications for new companies,
works with the examiners on regulatory issues, and handles the issuance of rules, orders, and
other legal documents produced by the Office.


                                               40
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

Legal Services
The Office of General Counsel and Legal Services provides legal counsel to the Commissioner of
Insurance Regulation, represents the Office in judicial, administrative and rule-making
proceedings, provides legal assistance, coordination and oversight to the Market Investigations
Business Unit.

The Legal Services Unit is organized into two principal legal sections:

Regulatory Actions Section
      Provides legal counsel to the Commissioner and staff, regarding all matters related to
       the regulation of insurers.
      Responds to requests for legal opinions from inside and outside the Office.
      Advises the Commissioner and Office staff on a daily basis on all legal matters.
      Assists in the development and analysis of new legislation and rules.
      Assists Office staff in the preparation of complex contracts and agreements concerning
       financial and market conduct examinations of insurers.
      Reviews and provides analysis of the legal sufficiency of admissions applications and
       other company documents.
      Provides assistance to the Legislative Affairs Office in the development of and
       interpretation of proposed legislation.

Litigation Section
      Handles all litigation including judicial proceedings in state and federal courts,
       administrative proceedings before the Division of Administrative Hearings, and appeals
       before the Florida Supreme Court and District Courts of this State as well as cases from
       the Subscriber Assistance Panel (HMO appeals) referred to the Office by the Agency for
       Health Care Administration.
      Responds to public information requests and handles related litigation, including
       injunction hearings on alleged trade secret documents.
      Provides advice and litigation support in personnel matters and for challenges to Office
       rules.
      Provides advice as requested regarding the Office’s review of insurers’ annual rate filings
       required by the Insurance Code, including assistance with public rate hearings and
       defending Office actions regarding those filings if challenged.




                                                41
                                                                        Office of Insurance Regulation
                                                                                       Transition 2010

Market Investigations

Anoush Arakalian Brangaccio
Interim Director

       Larson Building       Room 645A3
       Phone                 413-4116
       VoIP                  14116
       Fax                   922-2543
       Email Address         Anoush.Brangaccio@floir.com

Anoush Arakalian Brangaccio is the Interim Director of Market Investigations for the Florida
Office of Insurance Regulation (Office). As Chief of enforcement and compliance, she is
responsible for the oversight of four sub-units; including Life and Health, Property and Casualty,
Special Investigations and market analysis.

As Chief Assistant General Counsel for Litigation, Ms. Brangaccio also oversees the Legal
Services Office’s Litigation Section. She also headed the Life and Health Section of the Legal
Division in the former Department of Insurance. That Section was responsible for legal
oversight of all matters related to life and health insurers and health maintenance organizations
including licensing and acquisition of companies, opinions related to life and health issues, and
all litigation arising from life and health issues, including rates, forms, and administrative actions
taken against companies and their directors and officers. She originally came to the former
Department of Insurance in 2000.

Before joining the Department of Insurance, Ms. Brangaccio was an Assistant State Attorney for
the Twentieth Judicial Circuit. During her career as a prosecutor, she was the Office Head for
the Hendry/Glades Office, Supervisor for Lee County misdemeanor and juvenile court attorneys,
felony attorney, juvenile court attorney and misdemeanor court attorney. She assisted with
hiring and training of assistant state attorneys. She was recognized as the Attorney of the Year
in 1997 by the State Attorney’s Office.

Ms. Brangaccio received a Juris Doctor in 1993 and a Bachelor’s Degree in Political Science in
1990 both from the University of Florida.

Overview of Market Investigations Business Unit
Market Investigations is the compliance and enforcement unit for the Office. It conducts
examinations and investigations of insurers and related parties regarding business practices and
patterns of alleged violations of the Florida Insurance Code. The unit is comprised of four
sections: Property and Casualty section, Life and Health section, Special Investigations section,
and Market Analysis section.
      The Property and Casualty and the Life and Health sections of the unit conduct
       examinations and investigations of the business practices of authorized Florida insurers
       and Specialty license types. The fundamental charge of these sections is to assure
       compliance with governing statutes and rules, and to monitor how the industry interacts
       with the citizens of Florida.



                                                 42
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

      The Special Investigations section investigates allegations of unauthorized and illegal
       insurance activity, as well as other research unique to market conduct activities.
      The Market Analysis section evaluates periodically filed statements and other pertinent
       information to identify trends in insurer data related to the industry or marketplace.
       Issues of concern may arise from a pattern of consumer complaints, financial trending,
       legislative changes, and other business environment developments. Referrals to the
       other sections are made as warranted.

The Market Investigations unit also actively participates with other states in NAIC multi-state
examinations and reviews. The multi-state approach allows regulators to work together to
resolve similar problems and to address issues with uniformity and collaborative actions that
may affect consumers in numerous states. Over the last couple of years, Florida has been a
lead or managing lead state for 6 multi-state examinations. Recent multi-state examination
settlements have resulted in payments to Florida of over $4.74 million dollars.

Market Investigations has the authority to assess administrative penalties, direct corrective
action and restitution, and mandate conduct that protects the insurance consumer from
unlawful or harmful business practices.

Annual or Recurring Events
      Pursuant to Section 627.351(6)(l), F.S., Market Investigations conducts a comprehensive
       market conduct examination on Citizens Property Insurance Corporation every 2 years.
      Pursuant to the requirements of Section 626.9541(1)(dd), F.S., an annual report to the
       President of the Senate and Speaker of the House is made regarding The Freedom to
       Travel Act; Market Investigations provide support in the preparation of this report.
      Pursuant to Section 627.311, F.S., the plan and activities of the Florida Automobile Joint
       Underwriting Association is subject to continuous review.
      Section 627.311(v), F.S., requires that periodically, a market conduct examination of the
       Florida Workers’ Compensation Joint Underwriting Association be performed.
      Market Investigations is responsible for:
           o Annual performance measures/activity report
           o Monthly performance measures/activity reports
      Each unit is responsible for reporting to the National Association of Insurance
       Commissioners (NAIC) the relevant statistics for all examinations and investigations.
      Professional staff frequently participate in various NAIC committees conference calls.




                                              43
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Office of Deputy Commissioner, Property and Casualty Insurers

Belinda H. Miller
Deputy Commissioner

       Larson Building       Room 121 A
       Phone                 413-5000
       VoIP                  15000
       Fax                   488-2348
       Email Address         Belinda.Miller@floir.com

Belinda Miller has over 20 years of insurance regulatory and receivership experience. She has
worked for the Office of Insurance Regulation (Office) for the past seven years and for the
Department of Insurance prior to the creation of the Office. Her current responsibilities include
the oversight of Property and Casualty Insurance Product Review and Financial Oversight.

She first served as an attorney for the receiver beginning in 1986, and later as Director of the
Division of Rehabilitation and Liquidation, accumulating over 10 years of receivership
experience. She is certified by the International Association of Insurance Receivers as a
Certified Insurance Receiver, qualified for appointment as deputy receiver for either Property &
Casualty or Life and Health insurers.

In 1999, Ms. Miller moved to the Division of Insurer Services, a part of the Department of
Insurance at the time, where she served as Director of that Division for two years. In 2001, she
became the Director of the Legal Services Division. She had a brief (18 months) experience as a
private attorney primarily representing receivers and regulators during 2002-2003 before
returning to the Office.

She has represented the Commissioner on a variety of boards and working groups, and has
testified in court proceedings and legislative hearings. She has taught segments of Legal
Continuing Education courses sponsored by the NAIC and the Regulating for Solvency program.
Ms. Miller has participated in complex investigations and resulting legal cases, and has been
closely involved in the supervision of financially troubled insurance companies.

Ms. Miller holds a Bachelor of Arts degree with a major in International Studies from Emory
University. Her law degree is from Florida State University. She has been a member of The
Florida Bar since 1986.

Overview of Office of Deputy Commissioner, Property and Casualty Insurers
The Deputy Commissioner of Insurance Regulation of Property and Casualty Insurers provides
direction and support for the Business Units regulating statutory compliance and monitoring of
property and casualty industry markets. In addition, the Deputy Commissioner handles residual
market issues including Citizens Property Insurance Corporation, CAT Fund assessments, certain
data calls, boards and committees.

The Deputy Commissioner for Property and Casualty Insurance provides leadership,
administrative direction, and policy advice to the regulatory business units; manages fiscal
resources and personnel; and advises the Commissioner and the Legislature on policies relating

                                               44
                                                                 Office of Insurance Regulation
                                                                                Transition 2010

to the regulation of insurance.

Business Units
The Deputy Commissioner directly supervises the Property and Casualty Product Review and
Property and Casualty Financial Oversight business units.

Business Unit Directors oversee the daily regulatory activity of the unit and manage the
personnel and budget matters affecting the unit. The Director is also charged with the
responsibility to manage the development and implementation of legislation, and to represent
the Office in local, state, and national forums.




                                            45
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Property and Casualty Product Review

Richard C. Koon
Director

       Larson Building       Room 233 B
       Phone                 413-5310
       VoIP                  15310
       Fax                   922-3865
       Email Address         Richard.Koon@floir.com

Richard “Rich” Koon has oversight responsibility for the approval of property and casualty
insurance policy forms and rates through the supervision of contract and actuarial staff. Mr.
Koon was appointed Director in 2006 during a period of unprecedented change in the
regulations governing insurance products. Under his leadership, the unit has reviewed a
historic volume of insurance products as required by legislative changes to statute.

Mr. Koon has over 20 years of experience in insurance. Prior to serving as Director, he held the
position of Policy Forms Manager for five years. He spent over 10 years in various insurance
analyst positions becoming an expert in several lines of property and casualty insurance,
including workers' compensation, private passenger automobile and homeowners' insurance.
He has served as an insurance contract expert, having testified in legal proceedings in the areas
of homeowners' insurance and private passenger automobile insurance. In addition, Mr. Koon
has served on a number of working groups and committees established to address issues in the
areas of medical malpractice and homeowners' insurance. On request, he serves as an
insurance consultant to other public sector entities.

Mr. Koon has taught courses in homeowners' and private passenger automobile insurance for
employees of the Office of Insurance Regulation (Office), the Department of Financial Services
(DFS), and the Collins Center for Public Policy.

Mr. Koon received his Bachelor of Science Degree in Risk Management and Insurance from The
Florida State University's College of Business.


Overview of Property and Casualty Product Review
Property and Casualty Product Review is responsible for the review and approval of policy
forms, policy rates, policy rules and underwriting guidelines for property and casualty insurance
products marketed in this State.

Product Review analysts understand how insurance policies are structured, the coverage
traditionally offered, and are sensitive to the affect of any changes in policy language that may
reduce coverage for the insurance consumer. By law, the office must approve policy language
changes for various lines of coverage that include but are not limited to: private passenger
automobile; homeowners; farm owners; mobile homeowners; personal inland marine; auto,
home and service warranties; boiler and machinery; burglary and theft; commercial fire and
allied lines; dwelling fire and allied lines; glass; fidelity; surety; bond; financial guaranty;
mortgage guaranty; personal liability; and personal umbrella liability insurance lines.

                                               46
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010


The unit also reviews forms and rates for medical malpractice, professional liability, general
liability, products liability, commercial auto, as well as other miscellaneous and related lines.
Product Review analysts are also responsible for enforcing laws related to the filing of forms
and rates of warranty products, prepaid legal products and premium finance agreements.

As each rate filing is received, Property and Casualty Product Review actuaries and analysts
read the filing and perform independent calculations to determine whether the filing complies
with applicable actuarial standards, statutes, and administrative rules. The actuaries make
certain that rates are not inadequate, excessive, or unfairly discriminatory.

The actuaries and analysts are also responsible for the review of rates, rules and forms for all
insurance companies writing workers' compensation and employer’s liability insurance in Florida.
Each year, the National Council on Compensation Insurance (NCCI) files a rate filing to establish
a rate for all member workers’ compensation insurers. The Office conducts a hearing on this
filing where evidence is received from affected businesses, NCCI, the Consumer Advocate and
others. This process, primarily as a result of law changes and greater enforcement, has resulted
in substantial reductions in rates for workers’ compensation over the past few years. Analysts
answer consumer and business inquiries related to workers' compensation issues, and
coordinate and monitor the activities of the NCCI Appeals Board, the Florida Workers'
Compensation Joint Underwriting Association, and the Florida Legislature. The Workers’
Compensation actuary and analysts also provide technical assistance and advice to other areas
within the Office and DFS, including market conduct, solvency, consumer services, and risk
management units.

Florida law requires auto and workers’ compensation insurers to return amounts to consumers
that are defined by law as excess profits. Private passenger automobile insurers are required to
submit information to enable the office to determine if those insurers have made excess profits.
The actuaries in this area provide analysis and expert testimony in these excess profits cases.
Other data collection and analysis activities include the management of databases for reporting
medical malpractice, lawyer’s liability and directors’ and officers’ liability closed claims.

The Property and Casualty Product Review unit must comply with specific statutory timelines for
the review of each type of filing received. The statutory timelines range from 15 days for certain
types of recoupment filings to 90 days for certain types of rate filings. Each year the unit
receives an estimated 4,000 form filings and 3,700 rate/underwriting rule filings.

Property and Casualty Product Review is organized into two principal regulatory sections:
Rates Unit
      Responsible for conducting a timely review of each rate or rule filing submitted to
       ensure filings comply with the actuarial guidelines specified in law and rule; and,
      Responsible for the oversight and compliance requirements for the reporting of excess
       profits of private passenger automobile and workers’ compensation insurance.

Forms Unit
      Responsible for conducting a timely review of each form filing submitted to ensure
       filings comply with the requirements specified in law and rule.

                                               47
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010



Property and Casualty Financial Oversight

Robin Westcott
Director

       Larson Building        Room 216
       Phone                  413-5019
       VoIP                   15019
       Fax                    488-2935
       Email Address          Robin.Westcott@floir.com

Robin Westcott is the Director of Property and Casualty Financial Oversight for the Florida Office
of Insurance Regulation (Office). In this capacity, she is responsible for licensure and
monitoring solvency and compliance with Florida’s financial requirements for all property and
casualty insurance companies.

Ms. Westcott began her legal career in 1993 with the Florida Department of Insurance, Division
of Rehabilitation and Liquidation as an attorney handling legal matters relating to the
receivership estates of insolvent companies. Ms. Westcott served with the Receiver until 2001
when she left to enter private practice. Ms. Westcott returned to the public sector in 2002 with
the Florida Agency for Workforce Innovation where she served as Assistant General Counsel
and Counsel to the Florida Partnership for School Readiness.

In 2004, Ms. Westcott returned to the Office as an Assistant General Counsel focusing her
practice in the creation and licensure of new insurance companies, acquisitions, solvency issues
and a variety of other regulatory actions. In 2006, Ms. Westcott moved to Property and
Casualty Financial Oversight as the Deputy Director and was appointed as the Director in 2007.

Ms. Westcott earned a Juris Doctor from The Florida State University College of Law and was
admitted to the Florida Bar in 1993. She received her Bachelor’s of Science from The Florida
State University in 1991.

Overview of Property and Casualty Financial Oversight
Property and Casualty Financial Oversight is responsible for monitoring the financial condition of
property and casualty companies, title insurance companies, self insurance funds, risk retention
groups, and risk purchasing groups, as well as other specialty companies including prepaid legal
companies, warranty companies and premium finance companies through the review of
applications, ongoing financial analysis, periodic financial examinations and appropriate
regulatory action.

The unit performs field examinations which include actuarial reviews to assure companies
maintain adequate reserves and continuously monitors companies through the analyses of
financial statements and other required or requested reporting from the companies. The unit is
also responsible for the review of applications for licensure and any material changes of
ownership of insurers domiciled in Florida.


                                               48
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

As part of the Office’s involvement with the National Association of Insurance Commissioners
(NAIC), the financial surveillance areas participate in the Financial Regulation Standards and
Accreditation Program. The objective of the accreditation program is to provide consistent
solvency regulation of multi-state insurance companies with an emphasis on developing
minimum solvency law and regulation standards, effective and efficient financial analysis and
examination processes, and appropriate organizational and personnel practices.

Property and Casualty Financial Oversight is organized into three principal sections:

Applications Section
      Reviews applications for material changes in ownership of insurers, as well as
       applications for new insurers requesting to conduct or expand business in Florida.

Examinations Section
      Responsible for periodic on-site financial examinations, including NAIC coordinated,
       multi-state exams of larger entities.

Analysis Section
      Responsible for the receipt and review of financial statements, submitted by insurers at
       least four times per year, holding company registration statements, and other requested
       documents related to the financial solvency of a regulated insurer.

Annual or Recurring Events
      Receive and review annual financial statements from all Property and Casualty and title
       insurers (due March 1).
      Receive and review quarterly financial statements from all Property and Casualty and
       title insurers (due May, August and November 15).
      Receive and review annual audited financial statements from all Property and Casualty
       and title insurers (due June 1).
      Develop annual and quarterly filing requirements and instructions for the next calendar
       year.
      Process Certificate of Authority applications within 60 (foreign insurer) to 90 (domestic
       insurer) days of receipt.
      Respond to public information requests.
      Participate in initiatives sponsored by the NAIC.
      Make legislative proposals to enhance the Office’s ability to regulate financial solvency.
      Continual review of statutes, analysis and examination policies and procedures to ensure
       continued compliance with NAIC Accreditation Standards.




                                               49
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Office of Deputy Commissioner, Life and Health Insurers

Mary Beth Senkewicz
Deputy Commissioner

       Larson Building        Room 121 B
       Phone                  413-5104
       VoIP                   15104
       Fax                    488-2348
       Email Address          MaryBeth.Senkewicz@floir.com

Mary Beth Senkewicz is an attorney and is the Florida Office of Insurance Regulation's (Office)
Deputy Commissioner for Life and Health. As such, Ms. Senkewicz oversees the daily activities
of the Life and Health Product Review and Life and Health Financial Oversight Units, which are
responsible for the regulation of all insurers operating in Florida in relation to life and health
form and rate filings; licensure; and financial solvency. She previously lived in Washington, DC,
where she had a private consulting practice, specializing in health policy and insurance. Among
her clients were the government of Puerto Rico, where she consulted with the insurance
department on a major revision to the Puerto Rico Insurance Code, and the U.S. Agency for
International Development, where she advised the Egyptian government on establishing a
health insurance regulatory unit within the Egyptian Insurance Supervisory Authority. She also
testified before the U.S. Senate Committee on Small Business and Entrepreneurship about the
issues concerning health insurance and small businesses, and recently testified on behalf of the
Office before the Senate Special Committee on Aging on the life settlement industry. She also
testified before that same committee on behalf of the National Association of Insurance
Commissioners (NAIC) on long-term care insurance. On behalf of Commissioner Kevin McCarty,
she chairs the NAIC’s Senior Issues Task Force.

Ms. Senkewicz was formerly Senior Health Policy Counsel and Legislative Advisor at the NAIC
for over 11 years. She served as support staff for the NAIC’s Health Insurance and Managed
Care (B) Committee and the Senior Issues Task Force. Those NAIC groups deal with such issues
as Congressional proposals affecting health insurance regulation, the uninsured, Employee
Retirement Income Security Acts (ERISA), individual and small group market reform, Health
Insurance Portability and Accountability Act (HIPAA) compliance, Medicare supplement
insurance, Medicare Advantage, Medicare Prescription Drug Plans and long-term care insurance.
She was the NAIC representative on the Board of the Long-Term Care Insurance Educational
Foundation, a nonprofit organization that provided a nonpartisan educational forum about the
evolving long term care insurance marketplace. She was NAIC representative to, and chair of,
the Public Sector Advisory Committee of the National Committee on Quality Assurance. She has
been an expert speaker at a variety of health seminars across the country.

Prior to joining the NAIC, Ms. Senkewicz supervised the Consumer Affairs Division of the
Wyoming Insurance Department and served as the Insurance Department’s liaison to the
Governor’s Health Care Reform Commission. She is also a former Executive Director of the
Wyoming State Bar.

Ms. Senkewicz received her Juris Doctor degree from St. John’s University in New York City. She
has a Bachelor’s Degree in English and Philosophy from Cabrini College in Radnor,

                                               50
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Pennsylvania. She was the first Cabrini alumnus to receive the College’s Ivy Young Willis
Memorial Award, established to honor women in public affairs. She is a New York City native.

Overview of the Office of Deputy Commissioner for Life and Health Insurers
The Deputy Commissioner of Insurance Regulation of Life and Health provides direction and
support for the Business Units regulating statutory compliance and monitoring of life and health
and specialty industry markets.

The Deputy Commissioner for Life and Health provides leadership, administrative direction, and
policy advice to the regulatory business units; manages fiscal resources and personnel; and
advises the Commissioner and the Legislature on policies relating to the regulation of insurance.

Business Units
The Deputy Commissioner directly supervises the Life and Health Product Review and the Life
and Health Financial Oversight business units.

Business Unit Directors oversee the daily regulatory activity of the unit and manages the
personnel and budget matters affecting the unit. The Director is also charged with the
responsibility to manage the development and implementation of legislation, and to represent
the Office, the Commissioner or the Deputy in local, state, and national forums.




                                               51
                                                                        Office of Insurance Regulation
                                                                                       Transition 2010

Life and Health Product Review

Eric Lingswiler
Director

       Larson Building         Room 312B
       Phone                   413-5110
       VoIP                    15110
       Fax                     922-3866
       Email                   Eric.Lingswiler@floir.com

Since August 2008, Eric Lingswiler has directed the activities of Division of Life and Health
Product Review business unit whose mission is to ensure companies comply with statutory
provisions governing life and health insurance products. Mr. Lingswiler leads a team of
actuarial and contract analysts that review and approve policy forms and approve or disapprove
premium rate requests. This team ensures that products are offered to the public at a fair and
adequate price and that premiums are reasonable in relation to the benefits provided.

Mr. Lingswiler began his career with the former Department of Insurance in 1995 and quickly
became an integral member of the Office of Insurance Regulation (Office) at its inception. He
has served in various positions during the past 15 years including the divisions governing life
and health, viaticals, property and casualty and market investigations.

Mr. Lingswiler is an active member of the KidCare Coordinating Council, MediKids and the
Children’s Medical Services Network. He also monitors the activities of Florida Healthy Kids, the
Florida Comprehensive Health Association and the NICA – Birth Related Neurological Injury
Compensation Association.

Mr. Lingswiler holds a degree in Public Administration from Barry University and has been
admitted to the Master’s program at The Florida State University for 2011.

Overview of Life and Health Product Review
Life and Health Product Review is responsible for the review and approval of policy form and
rate filings received from Health and Life insurance companies, health maintenance
organizations, discount medical plans, and related entities and products.

Health insurance includes, but is not limited to, indemnity and preferred provider organization
major medical policies, managed care policies, Medicare Supplement policies, long-term care
policies, limited benefit, disability income and catastrophic illness indemnity insurance.
Continuing Care Retirement Community plans, Health Flex plans, Prepaid Limited Health plans,
and Discount Medical Plan Organization filings are included in the health category. The unit is
also responsible for the actuarial review of individual health insurance rates and rates for
groups of 50 or less, to ensure premiums are reasonable in relation to benefits as required by
law.

Life insurance includes term life, whole life, universal life, variable life, as well as fixed and
variable annuities. Credit life, credit disability and viatical filings are also included in the life


                                                 52
                                                                        Office of Insurance Regulation
                                                                                       Transition 2010

category.
The business unit receives policy and rate filings from over 800 carriers licensed to sell life and
health products, including companies that are active in the Florida small group market.
Life and Health Product Review is organized into two principal regulatory specialties:

Rates Unit
      Performs actuarial reviews of rate filings to ensure compliance.
      Makes actuarial recommendations regarding approval or disapproval of each rate filing
       submitted.

Forms Unit
      Responsible for enforcing compliance with statutes and rules governing insurance policy
       contract forms, applications, endorsements or other forms associated with life and
       health insurance products.
      For calendar year 2009, the unit processed 9,015 submissions in an average of 20 days
       – a statistic that makes Florida a national leader among state regulatory offices.

New Federal Health Insurance Law
The Patient Protection and Affordable Care Act (PPACA) was passed by the U.S. Congress and
signed by the president in March 2010. This new law requires, among other things, that issuing
carriers provide a rebate to consumers if the percentage of premiums expended for medical
services and activities that improve health care quality is less than 85% in the large group
market and 80% in the small group and individual markets.          The Office participated in a
national effort, through the NAIC, to determine what activities can qualify as improving health
care quality.

The following changes were effective September 23, 2010, and are applicable to group health
plans and health insurance issuers offering group or individual health insurance coverage, with
certain provisions also being applicable to “grandfathered” policies. Most policies issued or
renewed on or after September 23, 2010, will have to comply with the reforms outlined below:

      Rescissions will be      prohibited   except   for   instances   of   fraud   or   intentional
       misrepresentation;
      Plans will be required to provide first-dollar coverage for a defined set of preventive
       medical services without cost to the policyholder or certificateholder;
      Plans may not establish lifetime limits on the dollar value of benefits; plans may only
       establish restricted annual limits prior to January 1, 2014, on the dollar value of
       Essential Health Benefits;
      Plans will be required to implement internal appeals and external review processes
       pertaining to coverage determinations and claims;
      Plans will be prohibited from imposing preexisting condition exclusions for children under
       age 19;
      Plans that offer and provide dependent coverage of children shall continue to make such
       coverage available for an adult child until the child turns 26 years of age;

                                                53
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

       Plans will be prohibited from requiring “preauthorization” for emergency health services.
        A patient cannot be penalized for visiting a hospital outside of the plan’s network for
        emergency services. The health plan cannot charge the patient a higher co-payment
        than if the emergency services were provided by an in-network hospital;
       Plans may not require authorization or referral for female patients to receive obstetric or
        gynecological care from participating providers and must treat their authorizations as the
        authorization of a primary care provider; and
       Plans must submit to the U.S. Secretary of Health and Human Services and State
        insurance commissioner and make available to the public the following information in
        plain language:
           o   Claims payment policies and practices
           o   Periodic financial disclosures
           o   Data on enrollment
           o   Data on disenrollment
           o   Data on the number of claims that are denied
           o   Data on rating practices
           o   Information on cost-sharing and payments with respect to out-of-network
               coverage
           o   Other information as determined appropriate by the Secretary.

The Office has worked with health carriers to ensure that these new consumer protections are
contained in Florida health insurance policies.

Annual or Recurring Events
   Compliance with statutory timelines allowing no more than 45 days before a final decision
    must be made on any form or rate filing.
   On an annual basis, the unit surveys all individual health insurance carriers relative to their
    rates and benefits and subsequently develops the “Standard Risk Rates” that serve as the
    limit on conversion and Florida Comprehensive Health Association (FCHA) policies.
   Each year, the unit will be surveying all companies that sell Long-Term Care insurance
    policies in Florida to determine the average new business rate for each of the categories of
    Long-Term Care coverage, facility, non-facility and comprehensive, available for sale in
    Florida. This information will be used as an upper limit on the rate that can be charged on
    existing policies of these types for companies that do not currently sell the product or
    products in Florida.
   Annually, the unit surveys all health carriers for enrollment and income data and produces a
    detailed report, that serves as a valuable tool to the Legislature and other parties interested
    in the composition of Florida’s health insurance market.




                                                54
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

Life and Health Financial Oversight

Al Willis
Director

       Larson Building        Room 319 B
       Phone                  413-5050
       VoIP                   15050
       Fax                    488-7061
       Email Address          Al.Willis@floir.com


Al Willis is the Director of Life and Health Financial Oversight at the Florida Office of Insurance
Regulation (Office). His primary responsibilities include overall supervision and operation of the
Life and Health Financial Oversight business unit. The unit is primarily responsible for the
licensure and regulation of all Life and Health Insurers admitted to do business in Florida.
Additionally, the unit regulates Health Maintenance Organizations (HMOs), Prepaid Health
Clinics, Prepaid Limited Health Service Organizations, Discount Medical Plan Organizations,
Multiple Employer Welfare Arrangements, Fiscal Intermediary Service Organizations and several
Specialty Product Lines.

Since coming to the Office, Mr. Willis has been closely involved in major changes that have
occurred in the regulation of HMOs, Multiple Employer Welfare Associations, Warranty
Companies, Viatical Settlement Providers, and Continuing Care Retirement Communities. These
changes have come in the form of improved statutory requirements, effective regulation and
implementation of statutes. Furthermore, the financial solvency and well-being of licensed
companies has increased significantly, which ultimately results in better protection for Florida
consumers.

Mr. Willis earned a Bachelor’s Degree in Accounting from The Florida State University. He is
also a licensed Certified Public Accountant (CPA).

Overview of Life and Health Financial Oversight
Life and Health Financial Oversight monitors the financial solvency of life and health insurers
licensed to do business in the State of Florida.

The unit is also responsible for the review of material changes of ownership of insurers
domiciled in Florida. The unit also administers the admissions process for new life and health
entities as well as those proposing to expand into additional lines of business.

Entities subject to the unit’s regulatory oversight include life and health insurers, fraternal
benefit societies, health maintenance organizations, pre-paid limited health service
organizations, pre-paid health clinics, multiple employer welfare arrangements, fiscal
intermediary service organizations, discount medical plan organizations, insurance
administrators, continuing care retirement communities, viatical settlement providers, life
expectancy providers, as well as Healthflex entities that are either licensed, authorized or
otherwise approved to operate in the State of Florida.


                                                55
                                                                       Office of Insurance Regulation
                                                                                      Transition 2010

The Unit conducts actuarial reviews to assure companies maintain adequate reserves and
performs field examinations and analyses of financial statements and reports. The unit conducts
desk reviews, on-site financial examinations and targeted reviews in the event there are
changes or potential changes to a company’s financial condition.

As part of the Office’s involvement with the National Association of Insurance Commissioners
(NAIC), the financial surveillance areas participate in the Financial Regulation Standards and
Accreditation Program. The objective of the accreditation program is to provide consistent
solvency regulation of multi-state insurance companies with an emphasis on developing
minimum solvency laws and regulations standards, effective and efficient financial analysis and
examination processes, and appropriate organizational and personnel practices.

Life and Health Financial Oversight is organized into five principal sections:

Life and Health Insurer Financial Analysis Unit
      Monitors the financial condition of all life and health insurers and fraternal benefit
       societies;
      Performs financial monitoring via the review of periodically filed financial statements to
       ensure continued compliance with all applicable financial statutes and rules as well as to
       identify any signs of deteriorating financial condition; and,
      Reviews applications for new domestic insurer certificates of authority, foreign insurer
       certificates of authority, request to add lines-of-business, reorganizations, mergers and
       acquisitions.

Managed Care Financial Analysis Unit
      Monitors the financial condition of all health maintenance organizations, pre-paid limited
       health service organizations, pre-paid health clinics, multiple employer welfare
       arrangements, fiscal intermediary service organization as well as Healthflex entities;
      Performs financial monitoring via the review of periodically filed financial statements to
       ensure continued compliance with all applicable financial statutes and rules as well as to
       identify signs of deteriorating financial condition; and,
      Reviews applications for new domestic entities, reorganizations, mergers and
       acquisitions.

Actuarial Analysis Unit
      Assists the analysis and examination units on actuarial related items for all life and
       health insurers, health maintenance organizations, pre-paid limited health service
       organizations, pre-paid health clinics, multiple employer welfare arrangements, fiscal
       intermediary service organization as well as Healthflex entities;
      Conducts actuarial analysis and examinations both at the Office and on-site at the
       offices of the regulated entity; and,
      Participates with the review of actuarial related items in regards to applications for new
       domestic entities.

Specialty Product Administration Unit



                                                  56
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

      Reviews Continuing Care Retirement Communities (CCRCs) applications for licensure and
       acquisition and Donor Annuity applications for registration, licenses and registers entities
       to do business in Florida, examines for statutory compliance, and monitors solvency;
      Regulates Viatical Settlement Providers and Life Expectancy Providers; and,
      Regulates Insurance Administrators.

Examinations Unit
      Responsible for periodic on-site financial examinations, including NAIC coordinated,
       multi-state exams of larger entities.


Annual or Recurring Events/Deadlines
      Receive and review annual financial statements from all life and health insurers (due
       March 1) and health maintenance organizations (due April 1).
      Receive and review quarter financial statements from all life and health insurers as well
       as health maintenance organizations (due May, August and November 15).
      Receive and review annual audited financial statements from life and health insurers
       (due June 1) and health maintenance organizations (due April 1).
      Receive and review annual, quarterly and audited financial statements from a variety of
       other regulated entities on a periodic basis as required by statute or rule.
      Develop annual and quarter filing requirements and instructions for the next calendar
       year.
      Process certificate of authority applications within 60 (foreign insurer) to 90 (domestic
       insurer) days of receipt.
      Respond to public information requests.
      Participate in national initiatives sponsored by the NAIC.
      Make legislative proposals to enhance the Office’s ability to regulate financial solvency.
      Engage in continuing review of statutes, analysis and examination policies and
       procedures to ensure continued compliance with NAIC Accreditation Standards.




                                               57
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Office of Company Admissions/Business Development

Mary Mostoller
Director

       Larson Building        Room 220A
       Phone                  (850)413-5350
       VoIP                   15350
       Fax                    (850) 922-2229
       E-mail                 Mary.Mostoller@floir.com


Ms. Mostoller is the Director of Company Admissions/Business Development for the Florida
Office of Insurance Regulation (Office). Her primary responsibilities include promoting
opportunities for insurance companies and other insuring entities to enter or expand their
presence in the Florida marketplace and managing the application/licensing process for those
same entities.

She began her insurance career with the Office as an assistant to the Chief Actuary, and
became the first actuarial analyst, with responsibilities spanning both property and casualty and
the life and health kinds of insurance. Ms. Mostoller has since served in various positions within
the Office. Prior to serving as Director, she was the Financial Administrator for Property and
Casualty Financial Oversight, overseeing the financial regulation and licensure of all property
and casualty insurers.

Through the various positions held, Ms. Mostoller has participated in several National
Association of Insurance Commissioners (NAIC) working groups.       Ms. Mostoller has also
represented the agency on numerous boards and interagency matters and has participated in
disaster assistance recovery beginning with Hurricane Andrew. She is also active with the
National Treatment and Coordination Working Group, and participated in the development and
implementation of a standardized application for insurance company licensure for utilization
throughout the country.

Ms. Mostoller has a Bachelor’s Degree in Mathematics Education from The Florida State
University and continues to maintain her teaching certification.

Overview of Office of Company Admissions/Business Development
The primary role of Company Admissions/Business Development (formerly Business
Development and Market Research) is to facilitate the regulatory process for company licensure
with the goal to retain companies while attracting new insurers, thereby increasing product
competition and speed to market, which ultimately benefits the insurance buying public. The
unit manages the company application process, serves as the Office’s ombudsman assisting
companies with the regulatory process, and is also responsible for the coordination of licensure
approvals by the Commissioner.

Commissioner McCarty created the Business Development and Market Research Unit in 2005 to
oversee the expansion and retention of Florida’s insurance company marketplace and to serve
as the information clearinghouse for the collection and dissemination of insurance data that can

                                               58
                                                                      Office of Insurance Regulation
                                                                                     Transition 2010

better inform and educate Florida’s insurance consumers.             In 2007, Company
Admissions/Business Development separated itself from Market Research and became a stand-
alone business unit.

The Director coordinates, facilitates and represents the Office in meetings with insurers,
reinsurers, applicants for licensure and other interested parties. The Director also reviews all
applications for company licensure for presentation to the Commissioner for final agency action.
Though the unit previously coordinated its outreach efforts with Enterprise Florida and other
economic development councils throughout the state to promote the Florida market, it has been
limited in those efforts due to current economic conditions. The unit, within its existing
resources, continues its outreach by coordinating pre-filing conferences and has established a
public website which allows for a one-on-one customer relationship.

In addition, the unit continuously reviews and where necessary, modifies certain of the Office’s
website information to accommodate the ever-changing statutory and business requirements in
Florida’s insurance market. The Company Admissions/Business Development unit makes every
effort to assist companies that have submitted applications for licenses or amendments to
licenses as the application goes through the various steps in acceptance and the review
process. The section also coordinates background and fingerprint investigations of persons in
key management or oversight positions for licensed companies.

After becoming its own unit, in an effort to increase speed to market and enhance competition,
the Office contracted with a vendor to web-enable the submission of Company Admissions
applications and to provide an automated means for collecting and transferring data within
Company and Other Related Entities Navigator (COREN) to facilitate collection, management
and workflow of admissions applications and affiliated filings. The system, iApply, is now
operational.    Noteworthy, functionality never envisioned in iApply, combined with
enhancements made in COREN have resulted in increased efficiencies, reductions in
storage/imaging costs and a means to measure productivity not previously captured.

Annual or Recurring Events
      Develops application packages for new statutorily created insuring entities
      Participates in NAIC sponsored initiatives
      Active participant in the National Treatment and Coordination Working Group
      Reviews each application submitted through iApply and background/fingerprint
       investigations, including setup, and assures that it is processed within statutory timeline,
       including actual issuance of license
      Conducts weekly meetings with application units of Property and Casualty Financial
       Oversight, Life and Health Financial Oversight and regulatory unit of Legal
      Arranges and participates in pre-filing conferences
      Presents applications to Commissioner for final agency action




                                               59
                                                                     Office of Insurance Regulation
                                                                                    Transition 2010

Market Research and Technology

Dianne Williams-Cox
Director

       Larson Building       Room 312 K
       Phone                 413-5004
       VoIP                  15004
       Fax                   413-5099
       Email Address         Dianne.Williams-Cox@floir.com


Dianne Williams-Cox became the Director of Market Research and Technology at the Florida
Office of Insurance Regulation (Office) on January 7, 2008. Her primary responsibilities include
oversight of the Market Research and Technology Unit, which serves as the data clearinghouse
for the collection and dissemination of insurance industry data. This unit is comprised of two
areas that support the Office in the oversight and development of Florida’s insurance markets.
The primary purpose of the Market Research Unit is to ensure efficiency and transparency in
the collection and validation of data that is collected from regulated entities. This section
provides the data to satisfy public record requests, legislatively mandated reports and internal
business unit requests. The Technology Unit’s primary role is to support the Office in day-to-day
maintenance and development of computer applications. This unit works very closely with
technical staff augmentation vendors and with the Department of Financial Services/Division of
Information Systems (DFS/DIS) to meet the needs of internal and external users by ensuring
that systems are functioning properly.

Since joining the Office, Ms. Williams-Cox has provided project management for the deployment
of two major computer applications (Medigap and QUASRng) and provided management of staff
to navigate industry data from the source to becoming a resource by way of reports or other
formats. She serves as a liaison between the Office and DFS/DIS to insure that the technology
needs of the Office are met. She is an active member of internal committees such as the Living
Documents Committee where priorities of proposed technology requests are vetted and
forwarded to the Technology Steering Committee (TSC). Ms. Williams-Cox also serves as a
representative to the TSC. She has attended meetings of the National Association of Insurance
Commissioner (NAIC) for the Electronic Regulation (E-Reg) group to learn what other states are
doing and to share Florida experiences.

Ms. Williams-Cox has over 25 years of proven leadership in the Information Technology area
and is certified as a Public Manager (1994) and is a Project Manager Professional (2006). She
earned a Bachelor’s Degree in Data Processing Technology from Florida Agricultural and
Mechanical University and a Master’s Degree in Business Administration from Nova
Southeastern University.




                                               60

				
DOCUMENT INFO