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News from Tallahassee for 11/22/14
by JESSICA PALOMBO | WFSU
Florida’s small businesses should see their workers’ compensation rates drop at the beginning of next year. State Insurance Commissioner Kevin McCarty has ordered an average premium reduction of 5.2 percent. That’s a deeper cut than the 2.5 percent insurers originally requested.
Taylor Gibson manages the Tallahassee branch of Two Men and a Truck moving company. He says the cuts will take a burden off businesses.
“This is a part that’s out of our control," he says, "whether we have safety plans in place, whether we have safety programs, whether we have training for every guy, this is still something that’s out of our control that is being changed that can help us financially have the best kind of support for when claims do arise.”
Gibson says workers comp rates are so high that employers often pay small doctor’s bills out of pocket instead of filing full claims. Rates have increased in Florida for each of the last three years. The new lower rate is expected to go into effect in January, barring an administrative challenge by the insurance industry.
FL 28th in Workers’ Comp Rates posted on 10/28/14
by staff | Health NEws Florida
Florida ranks 28th in the nation for workers’ compensation premium rates, according to The Workers' Compensation Premium Rate Ranking Summary from Oregon’s Department of Consumer and Business Services.
The report reveals that Florida businesses spend $1.82 for every $100 of payroll on workers’ compensation expenses. California has the highest premium rates at $3.48 per $100 of payroll and North Dakota has the lowest at just 88 cents per $100 of payroll, according to the summary.
Citizens Insurance approves early end to Hurricane Wilma assessment posted on 9/25/14
by JIM Turner | NEWS SERVICE OF FLORIDA
A Citizens Property Insurance Corp. surcharge imposed on most Florida homeowners’ policies because of damages from the last of the 2005 hurricanes will end two years earlier than planned.
The state-owned insurer’s Board of Governors unanimously voted Wednesday to end the 1 percent charge on July 1, 2015. The storm assessment, on the books since 2007, was previously scheduled to continue until June 30, 2017.
In recommending the change, Citizens Chief Financial Officer Jennifer Montero told the board the balance of the remaining debt on the bonds issued for the 2005 storm is expected to be paid off next year.
Citizens imposed the storm assessment in 2007 on insurance policyholders throughout the state — whether they were Citizens customers or not — to recoup $887 million of the roughly $1.7 billion deficit created by Hurricane Wilma, which hit South Florida on Oct. 24, 2005. The state picked up $623 million of the costs from Wilma, while the rest was covered by additional assessments on Citizens policyholders.
Citizens has been working to reduce the number of policies it carries. Chief Risk Officer John Rollins said assessments should be an incentive for homeowners to seek private coverage rather than going with the state-run carrier.
The storm assessment, initially set at 1.4 percent and reduced to 1 percent in 2011, is imposed on a variety of property-insurance policies.
The announcement of the early end to what critics have labeled a storm “tax” comes two months after the Office of Insurance Regulation issued orders for insurance companies to end on Jan. 1 a 1.3 percent “emergency assessment” for the state-run Florida Hurricane Catastrophe Fund, which provides backup coverage to insurers.
by News Service of Florida
The Citizens Property Insurance Corp. inspector general found no improprieties in how three former executives left for employment with private firms that have ties to the state-backed insurer.
However, Inspector General Bruce Meeks’ findings note the state code of ethics applies to fewer managers at Citizens than at other state agencies. And Meeks recommended the insurer should consider clarifying parts of its ethics code, expand post-employment restrictions at the management level and include post-employment rules as part of ethics training for leadership.
“Post-employment restrictions are equally stringent and, in fact, are one and the same for Citizens senior managers and others subject to the state ethics code,” Meeks wrote in his report dated Aug. 31 and released Thursday. “The significant difference is that only Citizens senior managers are subject to the restrictions while a far larger number of public employees are subject to the post-employment restrictions in the state ethics code.”
Citizens President and CEO Barry Gilway said in a release he will review the recommendations. If changes are needed, Gilway will present them to the agency’s Board of Governors in December.
“The bottom line is that we expect all our employees, especially our senior executives, to uphold the highest ethical standards and I’m pleased that the inspector general’s report concludes we are doing just that,” Gilway said.
427,584 of Citizens' policies to be in latest take-out round posted on 9/5/14
by Donna Gehrke-White | Sun Sentinel
Citizens Property Insurance Corp. has received approval to shift almost half of its policies to fourteen private insurers, the Florida Office of Insurance Regulation announced Thursday.
The office approved the removal of up to 427,584 residential policies from the state-run insurer, including 2,227 policies for rental units, condominiums and homeowners associations, spokesman Harvey Bennett said.
Property owners can opt out of the switch, but they must send in a form, which will be included in the letters from the 14 state-approved insurance companies. Last month, Florida Insurance Consumer Advocate Steve Burgess voiced his concern that some homeowners might not open a letter announcing a proposed policy transfer.
The latest move accounts for nearly 46 percent of Citizens' policies and represents the largest single reduction since 2011, said Office of Insurance Regulation spokesman Bennett.
But not all of the policies will leave the public insurer, Citizens' spokesman Michael Peltier predicted.
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