Summary


The National Council on Compensation Insurance (NCCI) is a U.S. insurance rating and data collection bureau specializing in workers’ compensation. Operating with a not-for-profit philosophy and owned by its member insurers, NCCI annually collects data covering more than four million workers’ compensation claims and two million policies. NCCI provides data and analysis to insurance companies, state workers’ compensation insurance funds, regulatory authorities, employers needing information on workers’ compensation issues, and non-governmental workers’ compensation agencies. Pursuant to Section 440.381, F.S., the Financial Services Commission is to promulgate rules for applications for workers’ compensation coverage, and for audits of payroll and classifications of workers. In 2008, NCCI filed with the Office, on behalf of its carriers, a proposal for a rule addressing these matters. This proposed rule is based on NCCI’s proposal. The proposed rule allows electronic signatures in the application for workers’ compensation coverage and in the annual audit so long as the electronic signature process complies with Florida’s Uniform Electronic Transaction Act as provided in Chapter 668, F.S. The current rule incorporates NCCI publications by reference. The proposed rule explicitly provides the procedures for the audits required by the current rule. The proposed rule also raises the threshold for an onsite audit from $5,000 to $10,000. Any audit for under $10,000 will be handled by a mail audit, to save costs both for the employer and the carrier.