Section 440.49(9), F.S., creates the Special Disability Trust Fund (SDTF) which is maintained by annual assessments, paid quarterly, by the insurance companies writing workers’ compensation insurance in the state, the commercial self-insurers, the ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Worker’s Compensation

RULE NOS.:RULE TITLES:

69L-4.001Definitions

69L-4.002General Requirements for the Payment of Assessments

PURPOSE AND EFFECT: Section 440.49(9), F.S., creates the Special Disability Trust Fund (SDTF) which is maintained by annual assessments, paid quarterly, by the insurance companies writing workers’ compensation insurance in the state, the commercial self-insurers, the assessable mutuals, and the self-insurers. Section 440.49(9), F.S., requires the Department to determine the rate each year for the next calendar year based on the statutory formula and such amount shall be prorated among the insurance companies writing compensation insurance in the state and the self-insurers. Section 440.51, F.S., provides for the maintenance of the Workers’ Compensation Administrative Trust Fund (WCAFT) by annual assessments, paid quarterly, upon the carriers writing compensation insurance in the State of Florida and self-insurers. The Department is required to notify, by July 1 of each year, carriers and self-insurers of the assessment rate, which shall be based on the anticipated expenses of the administration of Chapter 440, F.S., for the next calendar year. The total expenses of administration shall be prorated among the carriers writing compensation insurance in the State of Florida and self-insurers.

Section 624.5094, F.S., provides that for purposes of calculating the annual assessments for the SDTF and WCAFT, any amount paid or credited as dividends or premium refunds in the same calendar year by the insurer to its policyholders must be deducted from “net premium,” “net premiums written,” “direct premium,” and “net premium collected” for the calendar year. Such offset for dividends or premium refunds paid or credited for the current year must be applied against the current year’s net premium for that year’s assessment regardless of the policy year for which the dividends or premiums are being reimbursed.

SUMMARY: Proposed Rule 69L-4.001will adopt a form that shall be used by all carriers authorized to write the workers’ compensation line of business and workers’ compensation self-insurance funds to report quarterly assessments owed to the Workers’ Compensation Administration Trust Fund and the Special Disability Trust Fund. Proposed Rule 69L-4.002 will provide for an offset for dividends and premium refunds when calculating assessments.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department conducted an economic analysis of the potential impact of the proposed rule amendment and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 440.49(9)(b)3., 440.51(2), (6), 440.591 FS.

LAW IMPLEMENTED: 215.26, 440.49(9), 440.51(1)-(5), 624.5094 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: May 19, 2014, 2:00 p.m.

PLACE: Room 102, Hartman Building, 2012 Capital Circle S.E., Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Greg Jenkins at [phone] or [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Greg Jenkins, Chief, Bureau of Financial Accountability, 200 E. Gaines Street, Tallahassee, FL 32399-4220 or [e-mail] or [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69L-4.001 Reporting Assessment Information and Paying Assessments.

(1) Form DFS-F7-DWC-2133, Carrier and Self-Insurance Fund Quarterly Premium Report, Premium Documentation Spreadsheets, Carrier Profile and Instructions (Eff. 2/2014), is hereby incorporated by reference and required for use by all carriers and self-insurance funds for quarterly reporting to the Department of Financial Services, Division of Workers’ Compensation (Division) of assessments owed to the Workers’ Compensation Administration Trust Fund (WCATF) and Special Disability Trust Fund (SDTF) and payment of those assessments to the Division pursuant to Sections 440.49(9) and 440.51(1)-(5), F.S.

(2) The Division will provide Form DFS-F7-DWC-2133 or its electronic equivalent to all active carriers and self-insurance funds authorized to write the workers’ compensation line of insurance in Florida that are known to it not later than five (5) days prior to the expiration of each calendar quarter. All carriers and self-insurance funds required to pay assessments to the WCATF and SDTF must return accurately completed Form DFS-F7-DWC-2133 to the Division, in accordance with instructions included in the form, and pay all assessments to the WCATF and SDTF that are due not later than thirty (30) days from the end of the calendar quarter for which the form applies. No carrier or self-insurance fund required to report assessment information to the Division and pay assessments to the WCATF and SDTF is excused from those obligations because it did not receive Form DFS-F7-DWC-2133 from the Division.

Rulemaking Authority 440.49(9)(b)3., 440.51(2), (6), 440.591 FS. Law Implemented 440.49(9) 440.51(1)-(5) FS. History–New_________.

 

69L-4.002 Offsets for Dividends and Premium Refunds.

(1) For purposes of its quarterly WCATF assessments under this rule, a carrier or self-insurance fund may offset from its total of premiums collected during the quarter all amounts actually paid or credited to policyholders for dividends and returned premiums during the quarter regardless of the calendar year the policies incepted for which the dividends or returned premiums apply. For purposes of its quarterly SDTF assessments under this rule, a carrier or self-insurance fund may offset from its total amount of premiums written during the quarter, all amounts actually paid or credited to policyholders for dividends and returned premiums during the quarter regardless of the calendar year the policies incepted for which the dividends or premiums apply.

(2) In the event a carrier or self-insurance fund is determined by the division to have overpaid its annual WCATF or SDTF assessment, the amount of any actual overpayment deposited into the State Treasury may, at the option of the carrier or fund, be carried forward as a dollar-for-dollar credit against future assessment liabilities; or be refunded by the division. No carrier or self-insurance fund shall be entitled to credits that exceed the assessment amounts actually paid for the specific calendar year to which the assessments apply.

Rulemaking Authority 440.49(9)(b)3., 440.51(2), (6), 440.591 FS. Law Implemented 215.26, 440.49(9), 440.51(1)-(5), 624.5094 FS. History–New_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Greg Jenkins, Chief, Bureau of Financial Accountability

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 21, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 13, 2014