Minimum Premium Requirements

Local Inspection Issues Florida and SUNachi Inspectors
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I can get them from the agent if need be. The OIR should have them available also. The rates are presented to the OIR and approved by them.

I am not trying to single out certain companies. I am sure they will all follow with their new rate filings also. I am hoping that inspectors will be prepared for the drop in business. I want the inspectors to understand that just because they qualify for discounts on the 1802 it does not mean that they will pay less for insurance.

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Thanks!

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How is this:

  1. Minimum Premium

A. The minimum annual premium charged for each policy shall be as follows:

  1. Applicable to HO3 wind-covered policies only:
    a. Coastal territories .3% of Coverage A
    b. lnland territories .2% of Coverage A
    c. The minimum premium will not be less than $300 nor exceed $1,000
  2. Applicable to HO4 and HO6 wind-covered policies only:

a. Coastal territories .3% of Coverage C
b. Inland territories .2% of Coverage C

c. The minimum premium will not be less than $150 nor exceed $1,000 for HO4

d. The minimum premium will not be less than $200 nor exceed $1.000 for HO6
3. Applicable to HO3 wind-excluded policies only: $300 minimum annual premium.
4. Applicable to HO4 wind*exc|uded policies only: $150 minimum annual premium.
5. Applicable to HO6 wind-excluded policies only: $200 minimum annual premium.

B. The minimum annual premium shall include all chargeable endorsements or coverages, if written at

inception of the policy.
C. The MGA policy fee and the EMPATF surcharge are not included in the minimum annual premium, and

are fully earned upon inception.

D. FIGA surcharges, xxxxx assessment surcharges, and FHCF assessment surcharges are not
included in the minimum annual premium. These surcharges are not fully earned - if the policy is
amended or cancelledI the additional or return premium, including these surcharges, shall be

calculated on a pro rata basis.

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It really is very simple… Insurance Carries have to purchase re-insurance for every policy they write.

Re-insurance is expensive.

If an underwriter is not going to make enough to cover the cost of their expenses or re-insurance by writing a policy that is less than their expenses WITH wind mitigation credits… they don’t have a choice but to say the property is ineligible to be placed with their company.

In other words… they have Minimum Premium Requirements…

It is happening more and more… talk to your agents… they are the biggest source of information you have.

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I have several say the problem is with re-insurance costs…The whole sytem has issues.

Thanks for the info Michelle.

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In other words…“Cherry-Picking”! :mrgreen:

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I’m not sure what affects it will have on the insurance rates but coastal areas are now zone D, as far as I am aware there is no longer a zone B.