U.S. DHS M-274 Handbook NAPEO Update

Published by Brian Urso on August 17, 2017

Compass Readers,

Quickly after Michael Miller’s memo went out yesterday about the M-274 handbook, Farrah Fielder (General Counsel, NAPEO) sent out an email with NAPEO’s updates and plan for tackling this head on.

Farrah expressed the following points on the M-274 change and NAPEO’s federal governmental affairs plan:

NAPEO has been aware of this change since February, when several NAPEO members mentioned to NAPEO that the PEO content had been removed from the M-274 handbook.
Contact with ICE by NAPEO member companies at that time yielded no information on the changes.
There was no political leadership at ICE when these changes occurred.
NAPEO has seen no changes in enforcement from ICE towards the PEO industry since the Trump Administration took office.
No NAPEO member, to our knowledge, has changed its policies on the I-9 form based on the removal of the PEO content from the M-274 handbook.
And, as far as we are aware, ICE has not rejected/refused/prohibited PEOs from filing I-9s on behalf of clients or filing client I-9s as agents since the changes to the M-274 handbook.

Farrah continued, “NAPEO, as part of its federal legislative and regulatory agenda, has immigration reform as an agenda item.”

The following is the associations plan of action:

Ask the Immigration and Customs Enforcement agency to clarify the responsibilities of a PEO under E-Verify, addressing the following issues:
- PEO and client compliance responsibilities under E-Verify
- Compliance with E-Verify for individuals and clients that are already in a PEO relationship
- Creating an E-Verify compliance safe harbor for PEOs
NAPEO also plans to form a working group to implement these items once there is political leadership at ICE.

To understand more on this topic, please refer to this previous article that was published yesterday: https://peocompass.com/u-s-department-homeland-security-m-274-handbook/

If you have any questions feel free to contact Farrah Fielder (ffielder@napeo.org) or Thom Stohler (tstohler@napeo.org – VP, Federal Government Affairs NAPEO) directly.

We will continue to update as more information comes in.

Regards,

Brian Urso
Risk Consultant
burso@libertateins.com
LinkedIn

Internal Revenue Service Posts List of PEO Small Business Efficiency Act Participants

Published by phughes on July 27, 2017

Unfortunately for the PEO industry, there have been cases in the past of payroll tax money not making its proper way to the Internal Revenue Service from a PEO, leaving small employers being forced to repay SUTA and FUTA. A solution to allow PEO’s to be accredited/certified/recognized by the IRS was sought by NAPEO to help the credibility of the industry and ensure proper payments of tax for American business.

As background and straight off the NAPEO website…

www.napeo.org

On December 19, 2014, President Obama signed the Tax Increase Prevention Act of 2014. Included in this legislation was the Small Business Efficiency Act (SBEA), which created a voluntary IRS certification program for professional employer organizations. It was previously approved by the House of Representatives as a provision in the ABLE Act to off-set the costs associated with that proposal, then incorporated into the Tax Increase Prevention Act of 2014 and passed by the Senate.

IRS PEO certification is important because it:

Confirms the certified PEO (CPEO) can pay federal employment taxes under its EIN.
Protects customers through the CPEO’s sole liability on wages paid to WSEs by CPEO.
Provides certainty with respect to when a wage base restart is not necessary for new customers.
Confirms the CPEO’s FUTA credit for all SUTA paid by CPEO or customer.
Offers clear guidance for the CPEO and the customer on pass-through of tax credits and employment tax exclusions.
Gives increased comfort for potential client with use of an IRS-certified PEO.
Lends credibility to PEO business model, especially with investor community and federal regulators.

—–

This is a huge win for the industry in its quest for more market share against the traditional deployment of employment related functions and I believe will become a huge competitive advantage for the current and future participants of this PEO certification.

The initial list is below…Kudos to NAPEO and the 30 or so PEO control groups to take the lead on this initiative. For those looking to certify, Thom Stohler and Farrah Fielder at NAPEO are standing by to help — PRH

List of CPEOs

Applicant Name	Street Name	Addr Line 2	City	State	Postal/Zip	Country	Effecctive Date
ACCESS HUMAN RESOURCES LLC	28800 Orchard Lake Road	2nd Floor	FARMINGTON	Michigan	48334	United States	1/1/2017
ACCESS MANAGEMENT LLC	28800 Orchard Lake Road	2nd Floor	FARMINGTON	Michigan	48334	United States	1/1/2017
ACCESS RESOURCE SOLUTIONS LLC	28800 Orchard Lake Road	2nd Flr	FARMINGTON	Michigan	48334	United States	1/1/2017
ADP TOTALSOURCE CO XXI INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE CO XXII INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE DE IV INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE FL XI INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE FL XIX INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE FL XVI INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE FL XVII INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE FL XVIII INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE FL XXIX INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE I INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE II INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE III INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE INC	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE MI VI LLC	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE MI VII LLC	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE MI XXX INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE NH XXVIII INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ADP TOTALSOURCE OF CO XXIII INC.	10200 Sunset Drive		MIAMI	Florida	33173	United States	1/1/2017
ALCOTT HR GROUP LLC	71 Executive Blvd		FARMINGDALE	New York	11735-4709	United States	1/1/2017
AVALON HR 2 LLC	100 S Pace Blvd		PENSACOLA	Florida	32502	United States	1/1/2017
AVALON HR 3 LLC	100 S Pace Blvd		PENSACOLA	Florida	32502	United States	1/1/2017
AVALON HR LLC	9685 Soldier Creek Rd		LILLIAN	Alabama	36549	United States	1/1/2017
AVITUS INC.	175 N. 27th Street	Suite 800	BILLINGS	Montana	59101	United States	1/1/2017
AVITUS TWO LLC	175 N. 27th Street	Suite 800	BILLINGS	Montana	59101	United States	1/1/2017
AXCET HR SOLUTIONS	8325 Lenexa Drive	Suite 410	LENEXA	Kansas	66214	United States	1/1/2017
ENGAGE PEO LLC	3001 Executive Drive	Suite 340	CLEARWATER	Florida	33762	United States	1/1/2017
EXTENSIS II INC.	900 Route 9 North	Third Floor	WOODBRIDGE	New Jersey	07095	United States	1/1/2017
EXTENSIS III INC.	900 Route 9 North	Third Floor	WOODBRIDGE	New Jersey	07095	United States	1/1/2017
EXTENSIS INC.	900 Route 9 North	Third Floor	WOODBRIDGE	New Jersey	07095	United States	1/1/2017
EXTENSIS IV INC.	900 Route 9 North		WOODBRIDGE	New Jersey	07095	United States	1/1/2017
EXTENSIS VI LLC	900 Route 9 North		WOODBRIDGE	New Jersey	07095	United States	1/1/2017
EXTENSIS VIII INC.	900 Route 9 North		WOODBRIDGE	New Jersey	07095	United States	1/1/2017

G&A OUTSOURCING VII LLC	17220 Katy Freeway Suite 350		HOUSTON	Texas	77094	United States	1/1/2017
GENESIS HR SOLUTIONS INC.	One Burlington Woods	Suite 203	BURLINGTON	Massachusetts	01803	United States	1/1/2017
HELM HR LLC	201 South Court Street	Suite 700	FLORENCE	Alabama	35630	United States	1/1/2017
INSPERITY PEO SERVICES L.P.	19001 Crescent Springs Drive		KINGWOOD	Texas	77339	United States	1/1/2017
INTANDEM HUMAN RESOURCES LLC	650 S Cherry St.	Suite 1221	DENVER	Colorado	80246	United States	1/1/2017
JUSTWORKS EMPLOYMENT GROUP LLC	151 West 26th Street	12th Floor	NEW YORK	New York	10001	United States	1/1/2017
LBMC EMPLOYMENT PARTNERS LLC	201 Franklin Road	Suite 200	BRENTW OOD	Tennessee	37027	United States	1/1/2017
MBA PAYROLL SERVICES II INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
MBA PAYROLL SERVICES INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
MIDWEST VENTURES LLC	1200 Internationale Pkwy	Suite 200	WOODRIDGE	Illinois	60517	United States	1/1/2017
MIDWESTHR LLC	1200 Internationale Pkwy	Suite 200	WOODRIDGE	Illinois	60517	United States	1/1/2017
MINUTE MEN SELECT INC.	3740 CARNEGIE AVENUE		CLEVELAND	Ohio	44115	United States	1/1/2017
MODERN BUSINESS ASSOCIATES V INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
MODERN PAYROLL SERVICES II INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
MODERN PAYROLL SERVICES III INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
MODERN PAYROLL SERVICES INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
NEXTEP BUSINESS SOLUTIONS IV INC.	1800 N. Interstate Drive		NORMAN	Oklahoma	73072	United States	1/1/2017
NEXTEP BUSINESS SOLUTIONS V INC.	1800 N. Interstate Drive		NORMAN	Oklahoma	73072	United States	1/1/2017
NEXTEP BUSINESS SOLUTIONS VI INC.	1800 N. Interstate Drive		NORMAN	Oklahoma	73072	United States	1/1/2017
NEXTEP BUSINESS SOLUTIONS VII INC.	1800 N. Interstate Drive		NORMAN	Oklahoma	73072	United States	1/1/2017
NEXTEP INC.	1800 N. Interstate Drive		NORMAN	Oklahoma	73072	United States	1/1/2017
OASIS HR SOLUTIONS III INC.	2054 Vista Parkway Suite 300		WEST PALM BEACH	Florida	33411	United States	1/1/2017
PAYCHEX PEO VI LLC	970 Lake Carillon Drive	Suite 400	ST. PETERSBURG	Florida	33716	United States	1/1/2017
PAYCHEX PEO VII LLC	970 Lake Carillon Drive	Suite 400	ST. PETERSBURG	Florida	33716	United States	1/1/2017
PROFESSIONAL EMPLOYER SERVICES II INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017

PROFESSIONAL EMPLOYER SERVICES INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017
PROGRESSIVE EMPLOYER MANAGEMENT COMPANY IV LLC	6407 Parkland Drive		SARASOTA	Florida	34243	United States	1/1/2017
PROPEL PEO INC.	669 N. Academy Street		GREENVILLE	South Carolina	29601	United States	1/1/2017
PROPEL PEO OF TEXAS INC.	669 N. Academy St.		GREENVILLE	South Carolina	29601	United States	1/1/2017
RESOURCING EDGE I LLC	1309 Ridge Road	Suite 200	ROCKW ALL	Texas	75087	United States	1/1/2017
S2 HR SOLUTIONS 1A LLC	3001 Executive Drive	Suite 340	CLEARWATER	Florida	33762	United States	1/1/2017
S2 HR SOLUTIONS 1B LLC	3001 Executive Drive	Suite 340	CLEAWATER	Florida	33762	United States	1/1/2017
S2 HR SOLUTIONS 1C LLC	3001 Executive Drive	Suite 340	CLEARWATER	Florida	33762	United States	1/1/2017
S2 HR SOLUTIONS 1D LLC	3001 Executive Drive	Suite 340	CLEARWATER	Florida	33762	United States	1/1/2017
S2 HR SOLUTIONS 2D LLC	3001 Executive Drive	Suite 340	CLEARWATER	Florida	33762	United States	1/1/2017
S2 HR SOLUTIONS GROUP 1 LLC	3001 Executive Drive	Suite 340	CLEARWATER	Florida	33762	United States	1/1/2017
STAFF MANAGEMENT INC.	5919 Spring Creek Road		ROCKFORD	Illinois	61114	United States	1/1/2017
STS ADMINISTRATIVE SERVICES OF FLORIDA INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
STS NATIONAL ADMINISTRATIVE SERVICES INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
STS NATIONAL MANAGEMENT SERVICES INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
STS REGIONAL ADMINISTRATIVE SERVICES INC.	9455 Koger Blvd	Suite 200	ST PETERSBURG	Florida	33702	United States	1/1/2017
SWBC PROFESSIONAL EMPLOYER SERVICES I LLC	30815 US Hwy 281 N		BULVERDE	Texas	78163	United States	1/1/2017
SWBC PROFESSIONAL EMPLOYER SERVICES II LLC	30815 US Hwy 281 N		BULVERDE	Texas	78163	United States	1/1/2017
SWBC PROFESSIONAL EMPLOYER SERVICES III LLC	30815 US Hwy 281 N		BULVERDE	Texas	78163	United States	1/1/2017
SYNDEO OUTSOURCING LLC	3504 N Great Plains Dr Ste 200		WICHITA	Kansas	67230	United States	1/1/2017
TANDEM PROFESSIONAL EMPLOYER SERVICES II INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017
TANDEM PROFESSIONAL EMPLOYER SERVICES III INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017
TANDEM PROFESSIONAL EMPLOYER SERVICES INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017
TANDEM PROFESSIONAL EMPLOYER SERVICES IV INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017
TANDEM PROFESSIONAL EMPLOYER SERVICES V INC.	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017
TANDEM PROFESSIONAL EMPLOYER SERVICES VII	2400 Wolf Rd. Ste. 100		W ESTCHESTER	Illinois	60154	United States	1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES VIII INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

Last Updated 07/14/2017

2016 Workers’ Compensation Combined Ratio is a 94 per NCCI

Published by phughes on May 21, 2017

It has been a busy month of conventions… NAPEO Legal and Legislative, RIMS and last week the NCCI. On the ground at the PACE conference in New Orleans, a look back at the NCCI AIS.

The National Council of Compensation Insurance (“NCCI”) Annual Issues Symposium is the preeminent conference for understanding all things workers’ compensation. Industry experts in the carrier, reinsurance and brokerage communities converge in Orlando every year in May to better understand the meaningful trends in the workers’ compensation line of insurance. The most meaningful number of this year’s event was 94… the lowest combined ratio of any other year since 1990 with the exception of 2006 (93). It should also be noted that this is a 6 point drop from the 100 of last year and represents one of few years <100.

Based on typical patterns, this is now where capital enters the market… which was illuminated when the NCCI literally sold out of tickets.

With NAPEO’s Legal and Legislative Conference two weeks ago, the NCCI conference last week and PACE in New Orleans this week… it has been a high school reunion of sort – seeing good friends, telling old stories and commiserating on how to make the PEO industry the optimal platform for American business. Health insurance maybe in the news every day but workers’ compensation is the line of business that PEO’s must have.

The origination of the PEO Compass was to provide an executive summary of all things workers’ compensation and how they impact all things PEO. The NCCI is a huge driver of this nationwide and sets rates and rules in 37 states. The document attached is a must read for those like me that are workers’ compensation and data geeks.

https://www.ncci.com/Articles/Documents/II_AIS2017-SOL-Guide.pdf

For those that are not (or would prefer not going through 57 slides), the highlights below:

The total P/C industry’s 2016 combined ratio (101%) represents a three-point increase versus that for 2015.
Combined ratios increased in all lines of business except workers compensation (slide 4)
Premium for the NCCI-serviced Residual Market Pools has remained stable over the last four policy years, at approximately $1.1 billion. (slide 12)
Between 2015 and 2016, countrywide private carrier direct written premium grew +2.4% (slide 15)
The percentage change in payroll (+4.5%) is approximately equal to the percentage change in the average wage (+2.5%) plus the percentage change in employment (+1.9%). Employment grew at an above-average rate for the Professional and Business Services; Education and Health Services; Construction; and Leisure and Hospitality sectors. Employment in the Manufacturing sector was flat, while the All Other sector posted a decrease primarily due to declines in Natural Resources and Mining employment (slide 17)
NCCI workers’ compensation filings with effective dates in 2017 averaged –6.7%… California and New York are already seeking approval for rate decreases which are not even part of this data set (slide 18)
In 2013, more than 70% of respondents saw an increase in premium at renewal, but by the fourth quarter of 2016, 62% reported seeing a decrease in premium at renewal (slide 23)
The workers compensation 2016 calendar year combined ratio for private carriers was 94%. This is the second consecutive year that the industry has posted a six-point underwriting gain. Consecutive combined ratios at this level have not been seen in at least the last 30 years (slide 24)

What this means is that workers’ compensation has become a very sexy line of insurance risk-bearers. With favorable improvements in operating and investment performance, the median expected rate of return is +20%. Again, it is therefore no surprise that this years NCCI AIS conference was sold out months prior to the event.

For those that happen to be in New Orleans this week for the annual PACE conference, let’s meet up and strategize in person about the great opportunities ahead for the industry.

– Paul R. Hughes

c: 321.217.7477

e. phughes@libertateins.com

Florida Workers’ Compensation Rates Get No Legislative Relief

Published by phughes on May 15, 2017

There will be a certain increase in Florida workers’ compensation rates this coming year as the Florida legislature failed to pass anything to address the Castellanos and Westphal cases that lead to a 14.5% rate increase on 12.1.16. The 14.5% was at the low end of the range that NCCI used in recommending n increase.

Paul R. Hughes

Florida Fails to Pass Workers’ Compensation Reform

Florida businesses shouldn’t expect relief for workers’ compensation rates, this year at least. The Florida Legislature failed to pass legislation this session addressing 2016 decisions by the Florida Supreme Court that sent the state’s workers’ comp system into disarray and led to a rate increase of 14.5 percent.

After much back and forth between the House and Senate over their respective bills, it came down to attorney fees, which the industry says are to blame for the majority of the rate increase.

Lawmakers sought to reform the state’s workers’ comp system through two bills – House Bill 7085 and Senate Bill 1582 – in response to decisions by the Florida Supreme Court that found aspects of the Florida Workers’ Comp Act unconstitutional.

[Lawmakers also failed to pass other closely-watched insurance reforms addressing insurance claims (assignment of benefits) abuse. Read more on the failed AOB legislation.]

Debate over the Senate and House bill went on throughout the final legislative day on Friday with the House, in an attempt to lure the Senate to its side, passing an amendment capping attorney fees at $180 an hour on approval by a judge of compensation claims. The Senate version of the bill capped attorney fees at $250 an hour versus the House’s previous $150 an hour cap. On Friday, the Senate voted not to lower the cap in its bill to $200 an hour, but the House still tried later to compromise with the $180 cap.

Another key difference in the Senate version was a provision moving Florida to a loss-cost system. Rep. Danny Burgess, who sponsored the House bill, told House members “the jury’s still out” on whether a loss cost system leads to a premium reduction, based on data from states that had switched to this model.

Burgess said he hoped the Senate would agree to the attorney fee compromise so lawmakers could get “something across the finish line.”

“The bill, as it stands today is on the end of the rope,” he told House members Friday. “[We are] trying to provide substantial reform to address rising rates from recent court decisions…We have to solve this problem before us. Every small business in the state of Florida is watching us now.”

The Florida Supreme Court’s decisions that caused the upheaval came in two cases – Castellanos v. Next Door Company and Westphal v. City of St. Petersburg. The biggest cost driver behind the 14.5 percent rate increase, according to the National Council on Compensation Insurance (NCCI), was Castellanos. That decision found the state’s mandatory attorneys’ fee schedule for workers’ compensation cases eliminated the right of a claimant to get a reasonable attorney’s fee — a “critical feature” of the workers’ compensation law. The impact of the Castellanos decision equaled 10.1 percent of the 14.5 rate increase, while Westphal accounted for 2.2 percent.

Burgess said the House version could offer up to a 5 percent reduction in rates and the Senate’s version would offer only about a 1 percent reduction.

The insurance industry supported the House version, agreeing that attorney fees are the main cost driver behind rate increases. The Property Casualty Insurers Association of America (PCI) said the bill would have addressed “decisions by the Florida Supreme Court rulings that could cause workers compensation rates to increase by 14.5 percent in the state, costing Florida job creators more than $1.5 billion.”

But ultimately, the two branches couldn’t reach an agreement before time ran out for lawmakers on Friday night.

Florida businesses now have the rate increase to contend with and the possibility of additional rate increases next year. An actuary from NCCI told the Florida House at a hearing last month that it is reasonable to expect that there would be continued pressure on rates without legislative reform.

The Florida Chamber of Commerce called lawmakers’ failure to enact reform a “failed fix to Florida’s broken workers’ comp system” and said it was a missed opportunity by lawmakers to make Florida more competitive.

California Workers’ Compensation Rates About to Drop in July

Published by phughes on May 8, 2017

Last Thursday, the Workers’ Compensation Insurance Rating Bureau of California (“WCIRB”) testified before the California Department of Insurance that a 16.5% rate reduction was appropriate for the businesses of California effective 7/1/17. California is a state where rates do not follow anniversary rating dates (“ARD’s) and therefore the impact of this reduction will be immediate for those that shop.

“WCIRB Executive Vice President and Chief Actuary Dave Bellusci and with President and CEO Bill Mudge presented the actuarial basis for the WCIRB’s average proposed July 1 advisory pure premium rate of $2.02, which is 16.5 percent lower than the corresponding industry average filed pure premium rate of $2.42 as of Jan. 1 2017 and 7.8 percent less than the insurance commissioner’s approved average Jan. 1 advisory pure premium rate of $2.19.”

http://www.insurancejournal.com/news/west/2017/05/04/450074.htm

A fertile market for aggressive carriers.

The California Department still has to approve, but that is anticipated in the next 30 days with the effective date of the proposed reduction less than 60 days from today.

While this is a sharp reduction, California still has and will have the highest workers’ compensation rates in the country by far and the State represents approximately 1/3 ‘rd of all workers’ compensation insurance premiums countrywide. A fertile market for aggressive carriers. For more info on national State rates and how they compare before credits/dividends and deductibles, review the following link…

http://www.cbs.state.or.us/external/dir/wc_cost/files/report_summary.pdf

-Paul R. Hughes

December 1 Florida Workers’ Compensation Rate Hike Back in Effect

Published by phughes on November 30, 2016

A 14.5 percent increase to state workers’ compensation rates will take effect Dec. 1 after the Florida Office of Insurance Regulation (“OIR”) filed and won an appeal to a ruling that would have voided the rate hike.

The increase occurs after the OIR filed a notice of appeal with the First District Court of Appeal Monday. It came in response to a court order from Circuit Judge Karen Gievers of Leon County Nov. 23 that voided the increase.

The OIR originally disapproved a requested increase from the National Council on Compensation Insurance for 19.5%, but then approved a Florida rate set of a 14.5% increase.

What a ride! A final rate approval 24 hours prior to the day the rates are to be implemented. Unless something crazier happens, we go back to the approved 12/1/16 rates for new and renewal business (not in force). For those that are experience rated, regardless of policy expiration, the new rates will take effect at the policyholder NCCI Anniversary Rating Date.

Paul R. Hughes

IT’S OFFICIAL – FL RATES INCREASE 14.5% FOR WORKERS’ COMPENSATION

Published by dcampbell on October 12, 2016

Announced yesterday, NCCI filed the approved 14.5% rate increase with the OIR on October 4, 2016. The effective date of the Workers’ Compensation increase is December 1st, 2016 and no amendment has been made to the ruling that this will only affect new and renewal policies.

12-1-16-fl-rates-by-code Click here for the spreadsheet of all updated rates by class code.

For more information visit: http://www.insurancejournal.com/news/southeast/2016/10/11/428955.htm

The Next Generation of Insurance?

Published by phughes on October 3, 2016

A former associate has helped to found a company called Lemonade. Unfortunately most people when they think of insurance think of lemons, not Lemonade.

The reputation of the insurance community has been suspect, especially to younger buyers of insurance. The Lemonade model provides clarity to the insurance transaction which is rarely seen, especially at the individual consumer level.

Love this business model:

A transparent 20%
fee to run everything
We pay claims
super fast
If there’s money leftover,
we give it back to causes

https://lemonade.com/

Here’s a good interview with their senior execs…

http://www.lifehealthpro.com/2016/09/21/3-reasons-lemonades-ceo-wants-to-disrupt-the-insur?t=company-news&slreturn=1475508546

Kudos to this disruptive model and look forward to watching their success! Always nice to see something new in the insurance world and this appears like Lemonade has legs.

Paul R Hughes

Libertate Insurance