Proposed Overhaul of Self-Insurer Rules Chapter Would Increase Worth Requirement Tenfold
Jun 24, 2009
Today, June 24, 2009, the Florida Department of Financial Services (“DFS”), Division of Workers’ Compensation held a Rule Development Workshop on Rule Chapter 69L-5, F.A.C. entitled “Rules for Self-Insurers under the Workers’ Compensation Act.”
The proposed Rules would repeal all existing Rules in Chapter 69L-5 and replace them with new Rules that have been revised to clarify regulatory guidelines for self-insuring workers’ compensation pursuant to Chapter 440, Florida Statutes. Among the proposed revisions are requirements regarding financial strength, credit quality, net worth, security deposits, and excess insurance associated with the self-insurance process. Provisions for noncompliance are also included in the proposed revised Rules.
Regarding the Chapter revisions, a representative for Payroll Management Inc. commented that the proposed increase in the net worth requirement from $1 million to $10 million would create an undue hardship on a select few self-insurers. Further, he suggested that the Rule in question should include a grandfather clause for all current self-insurers, so as to exempt them from this requirement.
The DFS officials noted that this suggestion would be considered, but did not provide any additional insight. Following the brief discussion, the Workshop concluded. The record will be kept until July 8, 2009 for additional written comments.
To view the meeting notice and proposed Chapter revisions, click here.
Should you have any questions or comments, please feel free to contact Colodny Fass.
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