No. CS/SB 618
Filed under Insurance.
Workers’ Compensation Insurance; Specifying that an insurer may use excess rates only under certain circumstances; revising the composition of the board of directors of the Florida Workers’ Compensation Insurance Guaranty Association, etc.
Plain English Summary
AI-GENERATEDWorkers' compensation insurance now gets its own excess-rate cap, separate from the cap that applies to every other line of commercial insurance.
Insurers can use excess rates on up to 20% of their workers' comp policies each year, instead of sharing the 10% cap that applies to other commercial lines.
The bill also changes who nominates two board members of the Florida Workers' Compensation Insurance Guaranty Association: those seats move from self-insurance funds to an employers' trade association and a property-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.
AIAdds a board 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, replacing seats previously tied to self-insurance funds.
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.