Florida Workers’ Compensation Insurance Guaranty Association Reviews Proposed Legislation To Address Impact of Insurer Insolvencies Through Large-Deductible Policies
Nov 15, 2012
During a Workgroup meeting Tuesday, November 13, 2012, the Florida Workers’ Compensation Insurance Guaranty Association (“FWCIGA”) discussed proposed statutory language intended to address the recent impact of workers’ compensation insurer insolvencies by protecting policyholders and the public from the burden of guaranty fund obligations.
These legislative recommendations included the incorporation of large deductible workers’ compensation policies and programs, and the strengthening of collateral requirements.
Workgroup members discussed a 20 percent per-claim deductible to be assumed by policyholders, but determined that a 10 percent deductible was more appropriate.
On hand for the meeting, Florida Insurance Consumer Advocate Robin Westcott said that the option of large deductible policies should be maintained, but that availability needs to be considered and factored in.
Part of the proposal also would have required the filing of an annual report by an insurer with the Florida Office of Insurance Regulation (“OIR”). The Workgroup agreed to eliminate this requirement, and suggested instead that the insurer provide the information upon OIR’s request.
Members of the Workgroup agreed not to put forth any language that would make significant changes to Chapter 440, F.S. The revised proposed language is expected to be available on the FWCIGA Web site by November 16, and will be presented and discussed with the FWCIGA Board at its November 30 meeting.
To view the meeting materials, click here.
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