Florida Insurance Commissioner Kevin McCarty has ordered 16 workers compensation insurance companies to return more than $9.4 million in excessive profits to their policyholders.
Under state law, workers compensation insurers are required to return excess profits. The law says “an excessive profit has been realized if underwriting gain is greater than the anticipated underwriting profit plus 5 percent of earned premiums for the 3 most recent calendar years.”
According to the Office of Insurance Regulation (OIR), a recent audit determined that 16 different workers compensation companies or groups realized excess profit as defined by statute for the 2005, 2006 and 2007 calendar/accident years.
The 16 companies that have been ordered to return premiums include: American Interstate Insurance Co. ($867,843), Florists’ Insurance Group ($83,131), Guard Insurance Group ($835,474), Hanover Insurance Group ($6,140), Harco National Insurance Co. ($4,530), Indiana Lumbermen’s Mutual Insurance Co. ($913), the Liberty Mutual Insurance Companies ($1,071,841), MAG Mutual Insurance Co. ($132,618), Memic Indemnity, Co. ($17,097), One Beacon Insurance Group ($733,028), Safety National Group ($136,512), St. Paul Travelers Group ($5,291,320), State Auto Mutual Group ($11,293), Transguard Insurance Company of America ($187,118), Ullico Casualty Co. ($29,927), and the Westfield Companies ($12,859).
The companies have 60 days from the date of the order to return the premiums or provide policy renewal credits to policyholders.
“These results confirm the importance of the workers compensation insurance reforms enacted by the Florida Legislature in 2003, which continue to yield positive results,” said McCarty. “These premium refunds contribute to lowering costs for Florida businesses and in contributing to our state’s future economic growth.”
Source: Florida OIR
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