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Proposed Workers’ Compensation Insurance Rates Would Drop For 6th Consecutive Year
29 Aug, 2008 WorkersCompensation.com
Tallahassee, FL (CompNewsNetwork) - Florida Insurance
Commissioner Kevin McCarty announced today that he has received the latest rate filing from
the National Council on Compensation Insurance (NCCI) for workers' compensation insurance
rates due to become effective next year. The filing calls for an overall average rate
decrease of 14.1 percent statewide, which would produce a savings of more than $465 million
for Florida employers.
If approved, the rate decrease would be the
sixth consecutive drop since the Legislature passed sweeping reforms to the state's
workers' compensation system in 2003. The cumulative overall statewide average rate
decrease since 2003 would total 58.3 percent.
"These lower workers' compensation rates will have a positive impact on every segment
of our marketplace," said Commissioner McCarty. "It is great news for business owners and
their employees, because Florida employers are paying lower rates, and benefits are being
delivered fairly and effectively. The reduction of fraud and abuse in the system is
certainly paying off."
Prior to the legislative reforms, the state of Florida
consistently ranked No. 1 or No. 2 in the country for the highest workers' compensation
rates; however, post-reform, Florida has dropped out of the top 10
rankings.
NCCI, which produces and files rates for insurers in many states,
said the rate decline was primarily due to a significant drop in claims frequency and a
reduction in the costs of claims.
A rate hearing on the filing will be scheduled by the Office of Insurance Regulation in
October, and the rate change would be effective for new and renewal business as of Jan. 1,
2009.
The law passed in 2003 instituted provisions for enhanced fraud
compliance and revised permanent and temporary disability definitions. It also set new
parameters for attorney and physician compensation and improved dispute resolution
procedures, in addition to making many other improvements to the system.
About the Florida Office of Insurance Regulation
The Florida Office
of Insurance Regulation (Office) has primary responsibility for regulation, compliance and
enforcement of statutes related to the business of insurance and the monitoring of industry
markets. Business units within the Office are organized based on regulatory expertise and
include the areas of life and health, property and casualty, specialty lines and other
regulated insurance entities. It is within the Office that the mission of public protection
is implemented through regulatory oversight of insurance company solvency, policy forms and
rates, market conduct performance and new company entrants to the Florida
market.
For more information about the Office, please visit www.floir.com. If you would like to review and compare
homeowners insurance rates in Florida, go to www.shopandcomparerates.com.
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