NCCI Recommends Fla. Comp Rate Reduction

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NU Online News Service July 29, 12:50 p.m.EDT?The rate setting agency for Florida's workers'compensation system has said it recommends a cut of up to 14percent for some workers' comp insurance premium rates.

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The reduction, proposed by the National Council on CompensationInsurance, is a consequence of savings the NCCI estimates willresult from new legislation reforming the Florida workers' compsystem.

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The measure (Senate Bill 50A) was signed by Republican Gov. JebBush on July 15. On July 16, the Office of Insurance Regulationordered NCCI to make a filing to reduce rates to reflect the costsavings associated with the new measure

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NCCI said it made its recommendation on July 18, after the OIRmandate.

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This filing proposes a rate level decrease of 14 percent forindustrial classes and an overall decrease of 10.47 percent forclassifications related to the US Longshore and Harbor Workers Act.There are less than 20 such "F" classes, which are covered underfederal rather than state law. The proposed rate level decreaserepresents a decrease of $420 million in workers compensationcosts, NCCI estimated.

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NCCI said the reduced rates will apply to new and renewalpolicies effective on or after Oct. 1. Additionally, the reducedrates will apply to all policies in effect Oct. 1 on a pro ratabasis through the remainder of the term of these policies.

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Other revisions, referred to as revised rating factors, will beeffective Oct. 1 for new and renewal policies only. NCCI said thefactors include those related to the coinsurance and deductibleprograms, the retrospective rating program, and other miscellaneousvalues, but not including experience rating factors.

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The revised rating factors will not apply to policiesoutstanding on Oct. 1. This filing does not propose changes to theexperience rating factors, NCCI said.

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