THE BILL ITSELF
HB 1243
Workers’ Compensation Insurance
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A bill to be entitled
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An act relating to workers' compensation insurance;
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amending s. 627.171, F.S.; authorizing an insurer to
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use excess rates for a specified percentage of its
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workers' compensation insurance policies; specifying
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the workers' compensation policies that are excluded
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from such percentage; removing provisions relating to
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the exclusion of specified commercial insurance
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policies from the percentage of policies that are
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subject to excess rates; amending s. 631.912, F.S.;
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revising the composition of the board of directors of
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the Florida Workers' Compensation Insurance Guaranty
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Association, Incorporated; providing an effective
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date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Subsection (2) of section 627.171, Florida
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Statutes, is amended to read:
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627.171 Excess rates.—
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(2)(a) An insurer may not use excess rates pursuant to
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this section, only as follows:
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1. For no more than 10 percent of its commercial insurance
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policies written or renewed in each calendar year for any line
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of commercial insurance, other than workers' compensation.
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2. For no more than 20 percent of its workers'
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compensation insurance policies written or renewed in each
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calendar year. or
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3. For no more than 5 percent of its personal lines
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insurance policies written or renewed in each calendar year for
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any line of personal insurance.
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(b) In determining the 20 percent 10-percent limitation
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for workers' compensation commercial insurance policies, the
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insurer shall exclude any workers' compensation policy that was
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written for an employer who had coverage in the joint
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underwriting plan created by s. 627.311(5) immediately before
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prior to the writing of the policy by the insurer and any
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workers' compensation policy that was written for an employer
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who had been offered coverage in the joint underwriting plan but
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who was written a policy by the insurer in lieu of accepting the
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joint underwriting plan policy. Such These workers' compensation
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policies must shall be excluded from the 20 percent 10-percent
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limitation for the first 3 years of coverage.
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Section 2. Subsection (1) of section 631.912, Florida
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Statutes, is amended to read:
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631.912 Board of directors.—
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(1) The board of directors of the corporation shall be
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composed consist of nine 11 persons, one 1 of whom is the
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insurance consumer advocate appointed under s. 627.0613 or his
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or her designee and one 1 of whom is designated by the Chief
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Financial Officer. The department shall appoint to the board
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four 6 persons selected by private carriers from among the 20
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workers' compensation insurers with the largest amount of direct
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written premium as determined by the department, one person
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nominated by a statewide trade association representing Florida
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employers, which is designated by the Chief Financial Officer,
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and one person nominated by the largest property and casualty
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insurance agents association in this state. The Chief Financial
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Officer may appoint and 2 persons selected by the self-insurance
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funds or other persons with experience in workers' compensation
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insurance to the board to serve in place of a nominee of either
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association as determined by the Chief Financial Officer. These
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appointments are deemed to be within the scope of the exemption
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provided in s. 112.313(7)(b). The Governor shall appoint one
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person who has commercial insurance experience. At least two of
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the private carriers shall be foreign carriers authorized to do
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business in this state. The board shall elect a chair
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chairperson from among its members. The Chief Financial Officer
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may remove any board member for cause. Each board member shall
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be appointed to serve a 4-year term and may be reappointed. A
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vacancy on the board must shall be filled for the remaining
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period of the term in the same manner by which the original
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appointment was made.
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Section 3. This act shall take effect July 1, 2026.