627.782  Adoption of rates.--

(1)  Subject to the rating provisions of this code, the department must adopt a rule specifying the risk premium to be charged in this state by insurers for the respective types of title insurance contracts and services incident thereto. The department may, by rule, establish limitations on such reasonable charges made in addition to the risk premium based upon the expenses associated with the services rendered and other relevant factors. The department must also adopt rules incident to the applicability of the risk premium, including the percentage or amount of the risk premium required to be maintained by the title insurer, and related rules to ensure that the amounts required to be maintained by the insurer are not less than 30 percent of the risk premium for policies sold by agents.

(2)  In adopting premium rates, the department must give due consideration to the following:

(a)  The insurers' loss experience and prospective loss experience under insured closing service letters, search and examination services, and policy liabilities.

(b)  A reasonable margin for underwriting profit and contingencies, including contingent liability under s. 627.7865, sufficient to allow insurers and agents to earn a rate of return on their capital that will attract and retain adequate capital investment in the title insurance business.

(c)  Past expenses and prospective expenses for administration and handling of risks.

(d)  Liability for defalcation.

(e)  Other relevant factors.

(3)  Rates may be grouped by classification or schedule and may differ as to class of risk assumed.

(4)  Rates may not be excessive, inadequate, or unfairly discriminatory.

(5)  The risk premium applies to each $100 of insurance issued to an insured.

(6)  The risk premium rates apply throughout this state.

(7)  The department shall, in accordance with the standards provided in subsection (2), review the risk premium and the related title services rate as needed, but not less frequently than once every 3 years, and shall, based upon the review required by this subsection, revise the risk premium and the related title services rate if the results of the review so warrant.

(8)  The department may, by rule, require licensees under this part to annually submit statistical information, including loss and expense data, as the department determines to be necessary to analyze risk premium and related title services rates, retention rates, and the condition of the title insurance industry.