The Florida Department of Financial Services, Division of Workers' Compensation Notice of Adopted Rule:
- Rule 69L-5.209, F.A.C. Financial Statements Reporting
- Rule 69L-5.215, F.A.C. Parental Guaranty
- Rule 69L-5.219, F.A.C. Excess Insurance
- Rule 69L-5.225, F.A.C. Requirements
The Florida Department of Financial Services, Division of Workers Compensation has adopted Rule 69L-5.209, F.A.C., deleting references to a Current or Former Self-Insurer’s Net Worth requirements, with regards to Financial Statements Reporting requirements; the adopted rule is renumbered, accordingly. Rule 69L-5.225, F.A.C., is amended to provide guidance to Current and Former Self-Insured entities regarding purpose-specific distinctions in methodologies used when determining a self-insured’s Net Worth. Rule 69L-5.219, F.A.C., is amended to increase a self-insurer’s maximum per occurrence retention from the greater of $500,000 or 1% of the self-insurer’s net worth to the greater of $600,000 or 1.5% of the self-insurer’s Net Worth, and to clarify factors that the Department must consider when reviewing a Current Self-Insurer’s request for a higher self-insured retention. The aforementioned changes are made to reflect inflation in the costs of claims and to provide self-insurers with a measure of control over premium costs for excess insurance. Rule 69L-5.215, F.A.C., is amended to delete erroneous references to Rule 69L-5.209, F.A.C., and to make certain technical changes.
SUMMARY: The rule provides guidance to current, former and prospective self-insurers regarding allowable, purpose-specific methods for use when determining a self-insured’s Net Worth. The rules also provides for an increase in the maximum dollar-amount (and, in the alternative an increase in the percentage-amount of a self-insured’s net worth) of a self-insured’s per occurrence retention rate. The rule increase in the maximum amount of the per occurrence retention rate provides self-insurers with a measure of flexibility in controlling the costs of excess insurance.
The rule was adopted on April 23, 2014 and will be effective on May 13, 2014. If you have questions about the contents of this rule, please contact Dwayne Manning, Insurance Administrator, Bureau of Financial Accountability, Division of Workers' Compensation at (850) 413-1784 or Dwayne.Manning@Myfloridacfo.com.
House Bill 5203 from the 2012 Legislative Session, which was signed by Governor Scott on April 20, 2012, transferred workers' compensation reemployment services responsibilities from the Department of Education to the Division of Workers' Compensation. Questions about these services can be directed to (800) 342-1741 – option 4, or e-mail firstname.lastname@example.org.
The Florida Division of Workers'
Compensation has submitted a Notice of
Proposed Rule Development for Rule
69L-5.201, F.A.C. Definitions. The notice
provides that, if requested in writing and
not deemed unnecessary by the agency head, a
rule development workshop will be held on
Wednesday, October 19, 2011 at 9:30 a.m.,
eastern daylight time (EDT) at 2012 Capital
Circle, SE, Room 102, Hartman Building. The
original intent of the rule was to avoid the
complexities of an affiliated self-insurer
structure where a parent company exists to
hold the self-insurance authorization, was
addressed by the clause "which do not have a
parent company to hold the self-insurance
authorization". A parent company able to,
but not wanting to hold the self-insurance
authorization, and wanting to execute a
parental guaranty under Rule 69L-5.215,
F.A.C., would be precluded from doing so
under the existing language of Rule
69L-5.201(2), F.A.C. The added language will
allow an affiliated self-insurer structure
and utilization of the financial strength of
a parent company for purposes of providing a
parental guaranty for affiliated
self-insurers under Rule 69L-5.215, F.A.C.,
where the parent company could but elects to
not hold the self-insurance authorization.
The official Notice of Proposed Rule Development appears in the Volume 37, Number 39, of the Florida Administrative Weekly, which was published on September 30, 2011. If you have questions about the contents of this notice, please contact Pam Macon, Chief, Bureau of Monitoring and Audit, Division of Workers' Compensation at (850) 413-1708 or Pamela.Macon@myfloridacfo.com.
The Florida Division of Workers'
Compensation has submitted a Notice of Proposed Rule
for the Self-Insurers Rule Chapter 69L-5.205,
F.A.C., Loss Data Reporting and 69L-5.217, F.A.C.,
Civil Penalties and Fines. The notice provides that,
if requested in writing within 21 days of the
publication of the official notice, a rule hearing
will be held on Friday, October 14, 2011 at 2:00 pm
in Room 102, Hartman Building, 2012 Capital Circle
SE, Tallahassee, Florida. The purpose of proposed
Rule 69L-5.205, F.A.C. is to clarify that former
self-insurers must report loss data for the final
period of authorization only once. The proposed
amendments to Rule 69L-5.217, F.A.C., will reduce
the penalties assessed against self-insurers for
late filing of required forms, reports and
documents. The official
of Proposed Rule will be published in the September 16th edition of
the Florida Administrative Weekly.
If you have any questions about the contents of this notice, please contact Pam Macon, Chief, Bureau of Monitoring and Audit, Division of Workers’ Compensation at (850) 413-1708 or Pamela.Macon@myfloridacfo.com.
The Bureau of Monitoring & Auditing has posted compliance charts for First Report of Injury or Illness compliance, carrier medical bill compliance, and average experience modifications. Compliance Charts
The Bureau of Monitoring and Audit will add an EOBR and evaluation component to its claims audits beginning January 1, 2011. See attached memorandum titled Explanation of Bill Review (EOBR). Memorandum
The Division of Workers' Compensation, Bureau of Monitoring and Audit has completed a rewrite of rule 69L-24, F.A.C. Workers Compensation Insurers' Standards and Practices. The rule is effective January 12, 2010