HB 785 Adopts Workers Compensation Large-Risk Rating Provision
HB 785 amended Florida’s workers’ compensation rating law to create flexibility in large-risk rating. The bill amends section 627.072 to specify that a retrospective rating plan may contain a provision allowing for negotiation of a premium between the employer and the insurer for employers having (i) exposure in more than one state, (ii) an estimated annual standard premium in Florida of at least $100,000, and (iii) an estimated annual countrywide standard premium of at least $750,000. An insurer must have at least $500 million in surplus on order to participate.
Any such plans must be filed by a rating organization and approved by the Office of Insurance Regulation. However, the premium negotiated between the employer and the insurer pursuant to an approved plan is not subject to review.
If the bill becomes law, its provisions will be effective July 1, 2014.