menú principal título de página menús destacados contenido pie de página
My Florida CFO

Iniciativas

Manténgase Conectado

Siga al
Departamento de
Servicios Financieros

¡Suscríbase al boletín informativo del Oficial Principal de Finanzas!

Nota de Prensa

Noticias   RSS RSS   Oficina de Prensa   Archivo

Gallagher Holds the Line on Rising Workers’ Compensation Premiums

6/19/2002

GALLAGHER HOLDS THE LINE ON RISING WORKERS' COMPENSATION PREMIUMS

TALLAHASSEE - Florida Treasurer and Insurance Commissioner Tom Gallagher issued a consent order today rejecting an 8 percent rate hike in workers' compensation premiums in favor of a modest 2.7 percent. Gallagher's decision will save Florida employers nearly $186 million in workers' compensation premiums.

The National Council on Compensation Insurance (NCCI), a rating organization that submits rate requests on behalf of insurers that write workers' compensation coverage, submitted its request for an 8 percent statewide average increase in workers' compensation premiums in September 2001.

In November 2001, Gallagher rejected NCCI's request for an 8 percent increase in favor of a more reasonable 2 percent change. The rate change would have taken effect on Jan. 1, 2002.

However, NCCI disagreed with Gallagher's decision and requested a formal hearing with the state's Division of Administrative Hearings (DOAH).

On April 12, 2002, an administrative law judge issued an order upholding Gallagher's disapproval of the 8 percent rate request and remanded the case back to the Department of Insurance. State law requires the Treasurer and Insurance Commissioner to issue a final order after a formal hearing is held.

Under the consent order, Gallagher upheld his decision to disapprove NCCI's request for an 8 percent increase and instead agreed to a 2.7 percent change, effective August 1, 2002, for new and renewal business. NCCI has waived its rights to appeal Gallagher's decision.

Insurance companies currently collect about $2.7 billion per year in workers' compensation premiums in Florida.