Florida Office of Insurance Regulation Orders Workers’ Compensation Insurance Companies to Refund $9.4 Million in Excess Profits
May 18, 2010
The Florida Office of Insurance Regulation (“OIR”) announced today, May 18, 2010, that it has ordered 16 workers’ compensation insurance companies to return a total of more than $9.4 million in profits to their policyholders pursuant to Florida’s excessive profit law.
An OIR news release listing the 16 insurers is reprinted below with hyperlinks to each order.
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Office Orders Workers’ Compensation Insurance Companies to Refund Millions in Excess Profits
Tuesday, May 18, 2010
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced the Office has ordered 16 workers’ compensation insurance companies or groups to return a total of over $9.4 million in excessive profits to their policyholders.
Workers’ compensation insurers are required to return excess profits pursuant to Section 627.215, Florida Statutes. The Office recently performed an evaluation of submitted data that included earned premium and incurred losses. The Office determined that 16 different workers’ compensation insurance companies or groups realized excess profit as defined by statute for the 2005, 2006 and 2007 calendar/accident years.
“These results confirm the importance of the workers’ compensation insurance reforms enacted by the Florida Legislature in 2003, which continue to yield positive results,” stated Commissioner McCarty. “These premium refunds contribute to lowering costs for Florida businesses and in contributing to our state’s future economic growth.”
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.
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