Florida lawmakers on Thursday filed legislation to significantly broaden insurance companies’ ability to apply excess rates in the state’s workers compensation market when managing high-risk policies.
H.B. 1243 would raise the cap on the share of workers compensation policies an insurer may price using excess rates from 10% to 20% of its policies written or renewed in a calendar year — effectively doubling the portion of the market where insurers can charge above-standard rates.
The bill also tightens which policies count toward that cap by excluding certain coverage written for employers transitioning from the joint underwriting plan.
If enacted, the changes would take effect July 1.