Changes to 69L6.027 69L6.028 and 69L6.035

The following notice was published last week, Page 5108, Volume 40, Number 227, November 21, 2014

DEPARTMENT OF FINANCIAL SERVICES

Division of Worker’s Compensation

RULE NOS.: RULE TITLES:

69L-6.027 Penalty Calculation Worksheet

69L-6.028 Procedures for Imputing Payroll and Penalty

Calculations

69L-6.035 Definition of Payroll for Calculating Penalty

PURPOSE AND EFFECT: The amendment to Rule 69L-6.027, F.A.C., revises a penalty calculation worksheet to provide the premium credit for the initial payment of premium made to secure coverage against an assessed penalty and to adjust the penalty look back period and the penalty multiplier to conform to statutory changes. The amendment to Rule 69L-6.028, F.A.C., changes the time frame to impute the employer’s payroll in the absence of business records from 20 to 28 days after receipt of the department’s request to produce records, and changes the factor to calculate employee payroll from 1.5 to 2 times state average weekly wage, to conform to Section 440.107, Florida Statutes as it now reads. Also, the timeframe for the employer to provide additional records is revised to twenty business days after the service of the first amended order of penalty assessment. The amendment to Rule 69L-6.035, F.A.C., also changes the factor to calculate employee payroll from 1.5 to 2 times state average weekly wage, to conform to Section 440.107, Florida Statutes as it now reads. Additionally the amendments change citations in Rules 69L-6.028 and 69L-6.035, F.A.C., to reflect the current convention of naming to the specific subdivision cited. SUBJECT AREA TO BE ADDRESSED: The subject area to be addressed is amending Rules 69L-6.027, 69L-6.028, and 69L-6.035, F.A.C. to conform to Section 440.107, Florida Statutes as it now reads. 

RULEMAKING AUTHORITY: 440.107(9), 40.591 FS. LAW IMPLEMENTED: 440.107(7)(d)1., (e) FS. IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW: 

DATE AND TIME: Wednesday, December 10, 2014, 9:30 a.m.

PLACE: 102 Hartman Building, 2012 Capital Circle Southeast, Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Robin Delaney, (850)413-1775 or Robin.Delaney@myfloridacfo.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice). THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Robin Delaney, Chief, Bureau of Compliance, Division of Workers’ Compensation, Department of Financial Services, 200 E. Gaines Street, Tallahassee, Florida 32399-4228, (850)413-1775 or Robin.Delaney@myfloridacfo.com 

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS AVAILABLE AT NO CHARGE FROM THE CONTACT PERSON LISTED ABOVE.

Florida Rates to Decrease in 2015

The following is quoted from the Office of Insurance Regulation press release November 5, 2014

TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today issued an Order notifying the National Council on Compensation Insurance (NCCI) that its proposed 3.3% overall decrease in workers’ compensation rates in Florida as filed has been disapproved. NCCI, which files on behalf of approximately 250 workers’ compensation insurers with Florida policyholders, can re-file an overall rate reduction of 5.2% instead by next Tuesday and receive final approval.

After a careful review and analysis by the Office, the filing reflected an increase in the underwriting profit and contingency provision from its current approved 2.5% to 4.5% that was deemed excessive and unsupported.

“Just last year, NCCI requested and was approved for a 2.5% profit and contingency provision and the record does not reflect any significant change in the economy in the past year that would justify a near doubling of the underwriting profit,” said Commissioner McCarty.  “Florida’s Workers’ Compensation market is functioning very well, taking into account current economic conditions, and we want to ensure it remains doing so.”

The required re-filing by the Office is to include a negative 2% annual trend for indemnity costs and a positive 0.5% annual trend for medical costs.  The new rates would be effective January 1, 2015 for new and renewal policies. For more information about the 2015 NCCI annual rate filing, visit the Office’s “Past Public Rate Hearings By Date” website page.