“The excessive amount shall be refunded on a pro rata basis in relation to the final compilation year earned premiums to the policyholders of record of the insurer group on December 31 of the final compilation year.”
So if a policyholder had a loss, even a bad one, they still get a refund as long as their carrier made (excessive) profits. No one complains about this because the only ones getting hurt are getting refunds, just that they’re not as large as they should be.
they can’t apply it to the oil companies but these politicians both state and federal get so much money in donations and under the table from the oil companies. I think Kevin should pay back 30% of his salary, because he is nothing more than a puppet and it doesn’t cost that much to live in Tallahassee
I don’t understand how a work comp carrier can have excessive profits if they are charging the state mandated rates? Does it mean they run their company like a business and don’t waste money? or are there additional fees a company can charge?
Is Fidel’s new job a consultant for Mr. McCarthy?
Over 5% profit is excessive?
If a claim is still open at $5,000 from 2005 and is closed today at $10,000,000, then who owes who money?
Other than monopolies, when did it become constitutional for the gevernment to be able to set profits?
Somebody, please help me understand?
I always thought we lived in a capitalistic society (for the most part). I can’t really say there’s any such thing as “excess profit”. Especially if the margin your looking at is only 5%. That’s barely enough to grow on. Let them have their profits. Eventually the company will have a terrible year and need the money. Or the stock-holders can get rich; either way it’s better than this.
The excess profits laws applies in all commercial lines of insurance–perhaps also personal lines. If you have one really bad year that negates the previous 20 years it is just too bad. “That is what insurance is for.” So, you can make 5% underwriting profit in any given 3 year period, which is probably adequate, but over time you can never make an adequate profit in any line in Florida.
I wonder how the banking industry would accept only a 5% return? Insurance companies under-perform when compared to banking, steel, oil, manufacturing, let alone the auto companies. There would be a down turn in the stock market if any other industry had to return “excess” profits. This is nothing but more crap from Tallahassee. The state government in Florida created a mess and now they spend all their time grandstanding to make it look like they are actually doing something worthwhile….ONLY in Florida, where everyone expects an entitlement program for insurance, as well as social security, umemployment etc. That mentality is what is driving this expectation that ALL losses are covered, but not necessarily insured by paying premiums…..premiums, what are those? Give me coverage but don’t charge me, charge those big bad old rich insurance companies. Let’s share the wealth, afterall, and by that I mean THEIR wealth (sarcasm fully intended!)
It would truly be aweful if these carriers were able to keep this money, make capital investments and improvements, and build a better system.
I don’t understand how anyone could be against this; let’s look at what this allows and creates in the marketplace….
Since carriers can’t make an “unseemly” profit in one year to set aside funds for the next year, they have to charge higher rates each year because there is no may to accurately how many employees are going to fall off of a roof during the year (sure, there is a best guess estimate, but people and storms don’t live up to the predictions).
So, the benefit is the rates remain artifically high and the the government can say it is protecting the consuming public.
Socialism is great, the equal sharing of misery and woe.
Wait, I was under the impression that Florida’s Excess Profits law only applied to Work Comp and Private Passenger Auto Liability. I used to do the filings for my company and those were the only lines I ever had to do.
The Excess Profit law isn’t “new” crap from Tallahassee, but it is crap. The justification is that since the state mandates the coverage, those providing it shouldn’t reap too great a profit from it, given the guaranteed market.
If I remember correctly, the EP law refers to an underwriting profit only. These two lines are pretty long-tailed, so it actually wouldn’t be all that uncommon for a carrier to operate at an underwriting loss, and still be profitable on the investment income on the reserves.
However, laws like this stifle competition, which is far more effective than regulatory nonsense in preventing an excessive profit. The work comp law is doubly bogus because carriers have to use the State/NCCI loss costs.
Note to Florida regulators:
PRICE GOUGING CANNOT EXIST IN A MARKET WITH HEALTHY COMPETITION!
They should apply this to the oil companies!!!!
“The excessive amount shall be refunded on a pro rata basis in relation to the final compilation year earned premiums to the policyholders of record of the insurer group on December 31 of the final compilation year.”
So if a policyholder had a loss, even a bad one, they still get a refund as long as their carrier made (excessive) profits. No one complains about this because the only ones getting hurt are getting refunds, just that they’re not as large as they should be.
they can’t apply it to the oil companies but these politicians both state and federal get so much money in donations and under the table from the oil companies. I think Kevin should pay back 30% of his salary, because he is nothing more than a puppet and it doesn’t cost that much to live in Tallahassee
I am sure Kevin will let them send each insured an additional premium billing when the insurers have a bad year
I don’t understand how a work comp carrier can have excessive profits if they are charging the state mandated rates? Does it mean they run their company like a business and don’t waste money? or are there additional fees a company can charge?
Why stop here?
I would like a refund of the profit on my $50 steak at Ruth’s Chris.
And what about the airline ticket I just purchased for $265 that is on sale for $99 today.
How much does a $10 martini acutually COST to produce? Let’s get it all back!
This would make Joseph Stalin a proud man!
Is Fidel’s new job a consultant for Mr. McCarthy?
Over 5% profit is excessive?
If a claim is still open at $5,000 from 2005 and is closed today at $10,000,000, then who owes who money?
Other than monopolies, when did it become constitutional for the gevernment to be able to set profits?
Somebody, please help me understand?
I always thought we lived in a capitalistic society (for the most part). I can’t really say there’s any such thing as “excess profit”. Especially if the margin your looking at is only 5%. That’s barely enough to grow on. Let them have their profits. Eventually the company will have a terrible year and need the money. Or the stock-holders can get rich; either way it’s better than this.
Does the 5% excess profit rule only apply to work comp, or to othe lines as well?
The excess profits laws applies in all commercial lines of insurance–perhaps also personal lines. If you have one really bad year that negates the previous 20 years it is just too bad. “That is what insurance is for.” So, you can make 5% underwriting profit in any given 3 year period, which is probably adequate, but over time you can never make an adequate profit in any line in Florida.
I wonder how the banking industry would accept only a 5% return? Insurance companies under-perform when compared to banking, steel, oil, manufacturing, let alone the auto companies. There would be a down turn in the stock market if any other industry had to return “excess” profits. This is nothing but more crap from Tallahassee. The state government in Florida created a mess and now they spend all their time grandstanding to make it look like they are actually doing something worthwhile….ONLY in Florida, where everyone expects an entitlement program for insurance, as well as social security, umemployment etc. That mentality is what is driving this expectation that ALL losses are covered, but not necessarily insured by paying premiums…..premiums, what are those? Give me coverage but don’t charge me, charge those big bad old rich insurance companies. Let’s share the wealth, afterall, and by that I mean THEIR wealth (sarcasm fully intended!)
It would truly be aweful if these carriers were able to keep this money, make capital investments and improvements, and build a better system.
I don’t understand how anyone could be against this; let’s look at what this allows and creates in the marketplace….
Since carriers can’t make an “unseemly” profit in one year to set aside funds for the next year, they have to charge higher rates each year because there is no may to accurately how many employees are going to fall off of a roof during the year (sure, there is a best guess estimate, but people and storms don’t live up to the predictions).
So, the benefit is the rates remain artifically high and the the government can say it is protecting the consuming public.
Socialism is great, the equal sharing of misery and woe.
Wait, I was under the impression that Florida’s Excess Profits law only applied to Work Comp and Private Passenger Auto Liability. I used to do the filings for my company and those were the only lines I ever had to do.
The Excess Profit law isn’t “new” crap from Tallahassee, but it is crap. The justification is that since the state mandates the coverage, those providing it shouldn’t reap too great a profit from it, given the guaranteed market.
If I remember correctly, the EP law refers to an underwriting profit only. These two lines are pretty long-tailed, so it actually wouldn’t be all that uncommon for a carrier to operate at an underwriting loss, and still be profitable on the investment income on the reserves.
However, laws like this stifle competition, which is far more effective than regulatory nonsense in preventing an excessive profit. The work comp law is doubly bogus because carriers have to use the State/NCCI loss costs.
Note to Florida regulators:
PRICE GOUGING CANNOT EXIST IN A MARKET WITH HEALTHY COMPETITION!
Great Point Ratemaker!