Florida: Comp rates to decline by more than 4 percent, officials say
The ratemaking organization, which files workers' comp rates for all carriers in the state, proposed a 4.2 percent rate cut in its filing with the Office of Insurance Regulation. Insurance Commissioner Kevin McCarty said this will be the eighth decrease since reforms were enacted in 2003, making the statewide average decrease in rates nearly 65 percent.
NCCI made the rate filing due to a change in the Special Disability Trust Fund assessment, a change that McCarty said ultimately reduces an insurance company's overhead expenses. The assessment rate went from 4.52 percentto 1.46 percent. This lower rate will be evident on new and renewal policies effective July 1.
The Florida Legislature established the SDTF in 1955 to encourage the employment of workers with preexisting conditions. The SDTF was modified in 1997 to eliminate the eligibility for accidents after Jan. 1, 1998. The fund is maintained by assessments on carriers and self-insurers. McCarty said this is the first decrease in the SDTF assessment since 1994.
Insurers to issue refunds. McCarty also announced that his office has ordered 16 workers' comp insurance companies or groups to return over $9.4 million in excessive profits to their policyholders. The OIR recently performed an evaluation of data submitted by insurers that included earned premium and incurred losses. The office determined that the firms realized excess profit as defined by state law for the 2005, 2006 and 2007 calendar/accident years.
The companies ordered to return premiums are American Interstate Insurance Co., Florists' Insurance Group, Guard Insurance Group, Hanover Insurance Group, Harco National Insurance Co., Indiana Lumbermen's Mutual Insurance Co., the Liberty Mutual Insurance Companies, MAG Mutual Insurance Co., Memic Indemnity Co., One Beacon Insurance Group, Safety National Group, St. Paul Travelers Group, State Auto Mutual Group, Transguard Insurance Company of America, Ullico Casualty Co., and the Westfield Companies.
Read more at the WorkersComp Forum homepage.
July 8, 2010
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