THE NEWS SERVICE OF FLORIDA: Insurer Wins Excess Profits Fight
Jul 10, 2012
The following article was published by THE NEWS SERVICE OF FLORIDA on July 10, 2012:
Insurer Wins Excess Profits Fight
By THE NEWS SERVICE OF FLORIDA
An administrative law judge has sided with a workers-compensation insurer in a battle with the state Office of Insurance Regulation about whether the company earned “excess” profits.
The case, filed by Premier Group Insurance Co., centered on whether federal income taxes should be included as expenses in calculating excess profits. Workers-compensation insurers have been required to return excess profits to policyholders — though lawmakers this year made a change to end the requirement effective this month.
Administrative Law Judge Lisa Shearer Nelson issued an order Thursday that said OIR had failed to approve a necessary rule to back its position that federal income taxes should be excluded from calculating excess profits.
“First, the wisdom of the office’s position is not at issue here,” the order said. “What is at issue is the need to adopt the agency statement as a rule so that all those substantially affected by the agency policy have the opportunity for public input and participation in the rule-making process.”
Premier filed the challenge after facing the possibility of being required to refund nearly $7.7 million from past years.
To view the Final Order, click here.