Florida Insurance Commissioner Kevin McCarty disapproved a workers’ compensation rate filing from National Council on Compensation Insurance (NCCI) and called for a new filing with a larger rate decrease.
In his order, McCarty said he would approve a revised filing with an overall statewide premium reduction of 13.5 percent. Among the reasons the filing was disapproved were disagreements with supporting documents, loss trend calculations and loss development provisions. McCarty ordered amendments to the filing be made as soon as possible.
Citing improved compliance and reduction in fraud, the commissioner commended efforts made by the Division of Workers’ Compensation as key to the cost savings.
NCCI had proposed an overall statewide average decrease in premiums of 7.2 percent, which would have become effective Jan. 1, 2006. A public hearing was held earlier this month October to allow interested parties to testify about the filing.
Senate Bill 50A, passed by the 2002 Legislature, ordered substantial reforms to Florida’s workers’ compensation system. Florida’s employers were paying some of the nation’s top rates while the workers received some of the lower benefits. This would be the third decrease in workers’ compensation rates since the reform bringing the cumulative effect of an overall decrease of more than 29 percent.
Source: Florida Office of Insurance Regulation
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