Florida Insurance Commissioner David Altmaier issued an Order late yesterday notifying the National Council on Compensation Insurance (NCCI) that its 2018 rate filing has been disapproved and, if amended by November 7, 2017, will be approved with a slightly larger workers’ compensation rate decrease. Approval of a revised rate decrease is contingent on the amended filing being submitted with changes as stipulated within the Order. If approved by the Office, the revised rate decrease would become effective on January 1, 2018 for new and renewal business.
Florida Office of Insurance Regulation
National Council on Compensation Insurance (NCCI) Public Rate Hearing
MEDIA ADVISORY
WHO: National Council on Compensation Insurance (NCCI)
WHAT: The Florida Office of Insurance Regulation (Office) will conduct a public hearing to discuss NCCI’s proposed overall statewide average workers’ compensation premium decrease of 9.6%. This includes a statewide average rate decrease of 9.3% and a reduction of the fixed expense cost applicable to every workers’ compensation policy in Florida from $200 to $160. The general public is welcome to submit comments about NCCI’s proposed rate filing by sending an email to: [email protected] with “NCCI” in the subject line of the email. Comments will be accepted for consideration until 5:00 p.m. (Eastern Time) on October 25, 2017. Under Florida law, written communications to the Office are public record and subject to disclosure, including being available to the public and media. To learn more, visit the Office’s Internet Privacy Policy.
A copy of the hearing agenda can be viewed here. The Florida Channel will stream the hearing live online via its website and a link to the video recording will be available at a later date. For additional information, visit the Office’s “NCCI Public Rate Hearing” webpage.
WHEN: Wednesday, October 18, 2017 at 1:00 p.m.
WHERE: The public hearing will be held at 412 Knott Building, 404 South Monroe Street, Florida Capitol Complex, Tallahassee, Florida 32399
Office Introduces New Resource to Help Public Stay Informed About Insurance Activities in State
The Office of Insurance Regulation (Office) is pleased to introduce a new subscription service that allows consumers and other interested parties an opportunity to sign up and receive their choice of several Office-issued communications. This includes notifications about important press announcements, informational memoranda/bulletins, emergency orders, rulemaking, and public hearing notices.
“This enables us to communicate more closely with Florida’s consumers and other interested parties,” stated Commissioner David Altmaier. “I encourage anyone who has an interest in learning more about the insurance issues affecting our state to sign up today and take advantage of this new service.”
This new resource will keep subscribers informed about insurance-related information shared by the Office, such as updates on hurricane claims data and related preparedness information; important legislative developments; and, public hearings where participation and feedback by the general public is requested to assist the Office in its regulatory decision-making responsibilities.
To sign up, visit www.floir.com and select the blue envelope icon at the bottom of the homepage.
CONSUMER ALERT: Know What You Are Signing for Repairs After Hurricane Irma
Insurance Commissioner David Altmaier is encouraging Floridians who are now dealing with the aftermath of Hurricane Irma and assessing damage to their homes and businesses to be aware of what they may be signing for repair work. A homeowner who has a loss may contact a contractor, water extraction company, roofer, or a plumber to assist with emergency repairs. After assessing the damage, the homeowner may be presented with a document to sign before repair work begins, which could also contain what is known as an Assignment of Benefits (AOB). If signed by the homeowner, it may give the repair vendor the right to exclusively communicate with the insurance company, negotiate and endorse insurance claim payments and file a lawsuit against the insurance company, with or without the homeowners knowledge. AOBs have been a cost driver leading to rising homeowners insurance rates across the state due to unnecessary litigation associated with certain AOB claims.
“As Floridians return to their communities and begin the tedious process of evaluating damages to their homes and property following Irma, it is vital that they pay attention to any requests that may involve an AOB,” stated Commissioner Altmaier. “Homeowners are encouraged to file a claim directly with their insurance company to maintain control of the rights and benefits provided by their insurance policy in resolving a claim.”
The following are a few tips to assist homeowners:
- Read your insurance policy and know what your responsibilities are following a loss.
- Contact your insurance company prior to signing any document that may contain an AOB.
- If the homeowner elects to sign the AOB, read everything carefully and do not feel pressured to sign it.
- Beware of language that allows all proceeds of the claim to be made to anyone other than the homeowner or the homeowners mortgage company.
- Do not sign the document if there are any blank spaces.
For more information, read the Office’s “Post-Loss Assignment of Benefits (AOB) Fact Sheet” or visit the Office’s “AOB Resources” webpage.
Patronis and Altmaier Stress Hurricane Irma Preparedness
In advance of Hurricane Irma’s impact to Florida, CFO Jimmy Patronis and Insurance Commissioner David Altmaier are advising the state’s more than 20 million residents to take actions now and get prepared.
“I know that Floridians have worked hard for their homes, but nothing is more important than protecting your life, so I ask all Floridians to please heed evacuation orders in their area and head to safer ground today,” said CFO Patronis. “We will help homeowners navigate through their insurance issues after Hurricane Irma has passed, and we will do everything possible to protect Florida’s policyholders.”
“Hurricane Irma is a dangerous storm and everyone in Florida should be taking it seriously. This includes monitoring weather advisories and making preparations to protect their families and homes for its pending landfall in our state,” stated Insurance Commissioner David Altmaier.
Numerous hurricane preparedness resources are available on both the Department of Financial Service’s (DFS) “Hurricane Irma” webpage and on the Office of Insurance Regulation’s (Office) “Hurricane Season Resources” webpage.
These include tips such as:
- Know the phone number and contact information for your insurance agent and insurance company. Make sure to have easy access to this information and your insurance policy if you must evacuate your home.
- Review your insurance policy and make sure you understand what may or may not be covered under your policy. Typically, flood insurance is not covered under a homeowners policy. In addition, some policies may cover expenses related to a mandatory evacuation, so it will be important to save all receipts.
- Strengthen your home’s defenses against a storm through simple mitigation techniques, such as covering windows and outside doors with storm shutters or plywood, replacing worn weather stripping under doors, and removing tree limbs that may fall on your home or become flying projectiles.
- Inventory your valuables and possessions using a home inventory checklist, which is available as a form you can download and print here. If you prefer to use a smartphone, there is a link to a free app created by the National Association of Insurance Commissioners, which allows you to take pictures and add descriptions of your belongings.
- Most importantly, have a plan for you and your family if evacuation becomes necessary and know where the designated evacuation routes are in your community. Do not wait to evacuate if it becomes necessary.
- Following the storm, document all damaged property and belongings (take photos or shoot video of any damage before attempting temporary repairs), contact your insurance company or agent as soon as possible to report damages, and be wary of signing any documents for repairs that will give away your rights as an insured to a third-party vendor without understanding who will be responsible for paying the vendor, you as the consumer, or the insurance company. For more information about how an assignment of benefits (AOB) for repairs works, visit the DFS “AOB” or Office “AOB Resources” webpages.
Consumers who have questions about their insurance coverage are encouraged to call CFO Patronis’ Insurance Consumer Helpline at 1-877-693-5236. This helpline can also help consumers to gain contact information for their insurance company, and can also help to verify the license of an insurance agent or adjuster.
Office Statement on Annual Workers’ Compensation Rate Filing
The Office of Insurance Regulation has received the 2018 Florida workers’ compensation rate filing by the National Council on Compensation Insurance (NCCI), which proposes a statewide average premium decrease of 9.6%. This includes a statewide average rate decrease of 9.3% and a reduction of the fixed expense cost applicable to every workers’ compensation policy in Florida from $200 to $160. The new rates would become effective January 1, 2018.
As always, the Office will review the filing to ensure the proposed changes are not excessive, inadequate, or unfairly discriminatory and evaluate its potential effects on the insurance marketplace and employers, who are required by law to carry this insurance on their employees. A public rate hearing will be conducted in October.
NCCI is a licensed rating organization authorized to make rate filings on behalf of workers’ compensation insurance companies in Florida. For more information about the filing, read the NCCI press statement.
Insurance Commissioner Altmaier’s Message to Floridians: Prepare Now for the 2017 Hurricane Season
Florida Insurance Commissioner David Altmaier has an important message for Floridians ahead of the hurricane season beginning on June 1.
“Florida’s unique risk to tropical weather, especially during the hurricane season, means all Floridians need a disaster plan,” said Altmaier. “The time to evaluate your insurance coverage, fortify your home and prepare for how to protect yourself and your family is now.”
Altmaier is also advising Floridians to take advantage of numerous hurricane preparedness resources available to them on the Office of Insurance Regulation’s (Office) website and offers the following additional tips:
- Review your insurance policy with your insurance agent or insurance company to make sure the coverage is adequate to your individual needs. The “Declarations Page” of your policy will summarize the coverage you have purchased.
- Understand the differences between your insurance policy’s coverages and deductibles.
- Strengthen your home’s defenses against a storm through simple mitigation techniques, such as replacing worn weather stripping under doors and removing tree limbs that may fall on your home or become flying projectiles.
- Inventory your valuables and possessions using a home inventory checklist, which is available as a form you can download and print. If you prefer to use a smartphone, there is a link to a free app created by the National Association of Insurance Commissioners, which allows you to take pictures and add descriptions of your belongings.
- Know the phone number and contact information for your insurance agent and insurance company. Make sure to have easy access to it if you must evacuate your home.
- Most importantly, have a plan for what you will do if a storm system is expected to impact where you live. Do not wait to evacuate if it becomes necessary.
For more information, visit the Office’s “Hurricane Season Resources” webpage.
Office Update on Florida Blue’s Payment Processing Issue
The Florida Office of Insurance Regulation (Office) is aware that many Florida Blue customers experienced multiple fund withdrawals from their bank accounts to pay for what should have been a one-time scheduled payment of their May health insurance policy premium. Florida Blue advised this was a processing error by the company’s third-party vendor.
The Office has been in regular contact with the company since Monday morning, May 1, as it looks at the adequacy of the refund and reimbursement process and conducts a complete review of this error.
Florida Blue has provided the following information:
- 9,480 Florida Blue customers were impacted statewide by this payment processing error.
- 8,177 are Affordable Care Act (ACA)-Compliant Individual Plan policyholders
- 453 are Pre-ACA-Compliant/Transitional Individual Plan policyholders
- 850 are Medicare policyholders
- As of 2:00 p.m. on Monday, May 1, Florida Blue’s primary banking institution reversed these transactions to refund all affected customers. Florida Blue has received confirmation from several large banks that these refunds have been returned to the accounts of their members, but it may take more time for other banks to complete this process.
- Customers will be advised on how to obtain reimbursement for overdraft bank fees or other expenses as a result of this error.
- For more information, customers are asked to email [email protected] or call the phone number listed on the back of their insurance card to reach the appropriate call center for their policy.
The Office’s primary focus at this time is working closely with the Department of Financial Services and Florida Blue to ensure consumers are made whole as soon as possible.
For additional assistance, consumers may also contact the Department of Financial Services, Division of Consumer Services, via email at [email protected] or through the statewide toll-free helpline at 1-877-693-5236 (in-state callers) or 850-413-3089 (out-of-state callers).
Statement from Commissioner David Altmaier on passage of HB 1421
Florida Insurance Commissioner David Altmaier issued the following statement:
“I applaud the Florida House of Representatives for their favorable vote on HB 1421 today, and I am especially grateful to Representative James Grant, the bill sponsor, and Representative Rene Plasencia, the prime co-sponsor. This legislation makes significant progress in protecting Florida consumers from homeowners insurance rate increases fueled by rising litigation costs associated with an Assignment of Benefits (AOB). We appreciate the support and efforts of the entire Florida Legislature as they considered this legislative priority of the Office of Insurance Regulation during the 2017 Session.”
For more information about this issue, visit the Office’s “Assignment of Benefits Resources” webpage.
Office of Insurance Regulation Launches Assignment of Benefits (AOB) Resource Webpage
The Florida Office of Insurance Regulation (Office) today launched an Assignment of Benefits (AOB) resource webpage with information to educate Florida’s consumers about changes needed to discourage fraudulent AOB activity. The new webpage provides a sobering projection of insurance rate increases homeowners can expect to see in the next five years without any legislative reform. It also includes various presentations, video links, and news articles related to this issue.
To learn more, visit the Office’s “Assignment of Benefits” webpage.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm and Facebook.
