6 Fla. Workers’ Comp Cos. Ordered to Refund ‘Excess’ Profits
Feb 21, 2008
Insurance Journal–Feb. 20, 2008
Florida Insurance Commissioner Kevin McCarty has ordered six workers’ compensation insurance companies to return $4.2 million in what his agency says are excessive profits to their policyholders.
By law, workers’ compensation insurers operating in Florida are required to return profits in excess of 5 percent. The Florida Office of Insurance Regulation said it evaluated data that included, among other things, earned premium and incurred losses to determine if the insurers realized an excess profit for the three most recent calendar/accident years reported: 2003, 2004 and 2005.
“This is further evidence that the workers’ compensation insurance reforms implemented by the Florida Legislature in 2003 are working,” said McCarty. “These policyholders are businesses that will get back some of the premium they’ve been paying for the past three years.”
The six companies ordered to return premiums to policyholders are: Alaska National Insurance Co. ($144,488), American Interstate Insurance Co. ($3,027,030), Church Mutual Insurance Co. ($768,259), Harco National Insurance Company ($4,819), Midwest Employers Casualty Co. ($218,337) and Petroleum Casualty Co. ($94,329).
The companies have 60 days from the date of the order to return the premiums or provide policy renewal credits.
Source: Florida Office of Insurance Regulation