No. HB 1243
Filed under Insurance.
Workers’ Compensation Insurance; Authorizes insurer to use excess rates for specified percentage of its workers' compensation insurance policies; specifies workers' compensation policies that are excluded from such percentage; removes provisions relating to exclusion of specified commercial insurance policies from percentage of policies that are subject to excess rates; revises composition of board of directors of Florida Workers' Compensation Insurance Guaranty Association, Incorporated.
Plain English Summary
AI-GENERATEDThe board of the Florida Workers' Compensation Insurance Guaranty Association shrinks from 11 members to nine, and the seats reserved for private carriers drop from six to four.
The two seats previously chosen by self-insurance funds are replaced with one seat nominated by a statewide employers' trade association and one nominated by the state's largest property-casualty insurance agents association.
Separately, workers' compensation insurance gets its own excess-rate cap: insurers can use excess rates on up to 20% of their workers' comp policies each year, instead of sharing the 10% cap that covers other commercial insurance.
AIReduces the total size of the Florida Workers' Compensation Insurance Guaranty Association's board of directors from 11 persons to nine, restructuring how the remaining seats are filled.
AIReduces the number of board seats filled by persons selected by private carriers from among the largest workers' compensation insurers from six to four, out of a smaller nine-member board.
AIReplaces the two seats previously filled by nominees of self-insurance funds with a seat nominated by a statewide trade association representing Florida employers and a seat nominated by the state's largest property and casualty insurance agents association.
AISplits workers' compensation out of the general commercial-insurance cap on excess rates and gives it a separate, higher ceiling. The 10% cap on excess rates for commercial insurance no longer counts workers' compensation policies toward it; instead, insurers may use excess rates on up to 20% of their workers' compensation policies each year.
AIThe Chief Financial Officer may appoint a substitute person with workers' compensation experience only when the employers' trade association or the insurance agents association fails to make a nomination, rather than having a broader independent appointment power.
AIThe existing rule excluding certain workers' compensation policies -- those written for employers coming out of the joint underwriting plan -- from the excess-rate limitation for their first 3 years of coverage is retargeted to run against the new 20% workers' compensation limitation instead of the old 10% commercial limitation.