Florida Workers’ Compensation Insurance Guaranty Association Workgroup Meeting Report: August 16, 2012
Aug 16, 2012
The Florida Workers’ Compensation Insurance Guaranty Association Workgroup (“Workgroup”) met today, August 16, 2012. The purpose of the Workgroup was to discuss issues and concerns resulting from recent insolvencies including large deductible policies, collateral and employee leasing policies. This meeting was held to educate Workgroup members regarding the nature of the issues at hand.
A representative of the employee leasing industry provided an overview of duties of the Florida Board of Employee Leasing Companies and the regulation of employee leasing companies.
Similarly, Florida Self-Insurers Guaranty Association Executive Director Brian Gee outlined the regulations for individual self-insurers.
Jim Watford, an actuary with the Florida Office of Insurance Regulation (“OIR”), presented background on how large deductible policies were first implemented in Florida and how they have evolved over the years. Mr. Watford noted that companies need OIR approval for the forms and rates, but there is not a requirement that the OIR cannot use lack of financial strength as a reason for disapproving a large deductible filing.
Workgroup members also discussed the financial responsibilities of insurance companies and the independent audit requirement. There also was discussion of the underwriting and collateral requirements and procedures relating to large deductible policies.
While the Workgroup discussed the possibility of additional financial requirements for companies writing large deductible policies, it was noted that members wanted to remain sensitive to insurers doing business in Florida, while still addressing the issues related to insolvencies.
The Workgroup will formulate a list of issues and identify alternatives for addressing the issues at its next meeting.
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