Florida Workers’ Compensation New Rule Update

The Florida Department of Financial Services, Division of Workers’ Compensation hereby issues a Notice of Adopted Rule 69L-3, Florida Administrative Code.

The rule was adopted on June 10, 2014 and will be effective on June 30, 2014. If you have questions about the contents of this rule, please contact Pam Macon, Chief, Bureau of Monitoring and Audit, Division of Workers’ Compensation at (850) 413-1708 or Pamela.Macon@Myfloridacfo.com.

Summary:

The rule chapter is amended to clarify that the filing of paper documents, when approved by the Division of Workers’ Compensation, does not supersede the requirements for electronic submittal of claims information, as specified under Rule Chapter 69L-56, F.A.C. The amendments also update terminology and contact information, delete an obsolete form and related language, and make additional technical changes.

Upon adoption, a copy of the Rule may be found here.

The Florida Department of Financial Services, Division of Workers’ Compensation Notice of Adopted Rule:

• Rule 69L-4.001, F.A.C. Reporting Assessment Information and Paying Assessments
• Rule 69L-4.002, F.A.C. Offsets for Dividends and Premium Refund

Summary:

Rule 69L-4.001 adopts a spreadsheet form that is be used by all carriers and self-insurance funds to quarterly report to the Department all assessments owed to the WCATF and SDTF pursuant to Sections 440.49(9) and 440.51, F.S. The Department will provide the form to all active carriers and self-insurance funds no later than five days prior to the expiration of each calendar quarter. All carriers and self-insurance funds must return an accurately completed form and pay all assessments due to the WCATF and SDTF no later than 30 days from the end of the calendar quarter for which the form applies.

Rule 69L-4.002 provides that for the purposes of its quarterly WCATF assessment, a carrier or self-insurance fund may offset from its total of premium collected during the quarter, all amounts actually paid or credited to policyholders for dividends and returned premiums during the quarter regardless of the calendar year the policy incepted. For the purpose of its quarterly SDTF assessments, a carrier or self-insurance fund may offset from its total amount of premiums written during the quarter, all amounts actually paid or credited to policyholders for dividends and returned premiums during the quarter regardless of the calendar year the policy incepted. If the Department determines that a carrier or self-insurance fund has overpaid its annual WCATF or SDTF assessment, the amount of any actual overpayment deposited into the State Treasury may, at the option of the carrier or self-insurance fund, be carried forward as a dollar-for-dollar credit against future assessment liabilities or be refunded by the Department. No carrier or self-insurance fund shall be entitled to credits that exceed the assessments amounts paid for the specific calendar year to which the assessments apply.

The Florida Department of Financial Services, Division of Workers’ Compensation has adopted Rule 69L-4.001, F.A.C., Reporting Assessment Information and Paying Assessments. This rule was adopted June 2, 2014, and will be effective on June 22, 2014. This rule can be viewed at the following link: Rule 69L-4.001. Rule 69L-4.002, F.A.C., Offsets for Dividends and Premium Refund. This rule was adopted June 2, 2014, and will be effective on June 22, 2014. This rule can be viewed at the following link: Rule 69L-4.002 . If you have any questions about this communication please contact Greg Jenkins, Chief, Bureau of Financial Accountability, Division of Workers’ Compensation, Department of Financial Services: 200 East Gaines Street, Tallahassee, Florida 32399-4221, (850) 413-1630 or by email at: Greg.Jenkins@myfloridacfo.com.

The Florida Department of Financial Services, Division of Workers’ Compensation Notice of Adopted Rule:

-Rule 69L-5.209, F.A.C. Financial Statements Reporting
-Rule 69L-5.215, F.A.C. Parental Guaranty
-Rule 69L-5.219, F.A.C. Excess Insurance
-Rule 69L-5.225, F.A.C. Requirements

The Florida Department of Financial Services, Division of Workers Compensation has adopted Rule 69L-5.209, F.A.C., deleting references to a Current or Former Self-Insurer’s Net Worth requirements, with regards to Financial Statements Reporting requirements; the adopted rule is renumbered, accordingly. Rule 69L-5.225, F.A.C., is amended to provide guidance to Current and Former Self-Insured entities regarding purpose-specific distinctions in methodologies used when determining a self-insured’s Net Worth. Rule 69L-5.219, F.A.C., is amended to increase a self-insurer’s maximum per occurrence retention from the greater of $500,000 or 1% of the self-insurer’s net worth to the greater of $600,000 or 1.5% of the self-insurer’s Net Worth, and to clarify factors that the Department must consider when reviewing a Current Self-Insurer’s request for a higher self-insured retention. The aforementioned changes are made to reflect inflation in the costs of claims and to provide self-insurers with a measure of control over premium costs for excess insurance. Rule 69L-5.215, F.A.C., is amended to delete erroneous references to Rule 69L-5.209, F.A.C., and to make certain technical changes.

SUMMARY: The rule provides guidance to current, former and prospective self-insurers regarding allowable, purpose-specific methods for use when determining a self-insured’s Net Worth. The rules also provides for an increase in the maximum dollar-amount (and, in the alternative an increase in the percentage-amount of a self-insured’s net worth) of a self-insured’s per occurrence retention rate. The rule increase in the maximum amount of the per occurrence retention rate provides self-insurers with a measure of flexibility in controlling the costs of excess insurance.

The rule was adopted on April 23, 2014 and will be effective on May 13, 2014. If you have questions about the contents of this rule, please contact Dwayne Manning, Insurance Administrator, Bureau of Financial Accountability, Division of Workers’ Compensation at (850) 413-1784 or Dwayne.Manning@Myfloridacfo.com.