Florida Senate - 2026                                     SB 618
       
       
        
       By Senator Truenow
       
       
       
       
       
       13-00377A-26                                           2026618__
    1                        A bill to be entitled                      
    2         An act relating to workers’ compensation insurance;
    3         amending s. 627.171, F.S.; specifying that an insurer
    4         may use excess rates only under certain circumstances;
    5         amending s. 631.912, F.S.; revising the composition of
    6         the board of directors of the Florida Workers’
    7         Compensation Insurance Guaranty Association; providing
    8         an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Subsection (2) of section 627.171, Florida
   13  Statutes, is amended to read:
   14         627.171 Excess rates.—
   15         (2)(a) An insurer may not use excess rates pursuant to this
   16  section, only as follows:
   17         1. For no more than 10 percent of its commercial insurance
   18  policies written or renewed in each calendar year for any line
   19  of commercial insurance, other than workers’ compensation.
   20         2.For no more than 20 percent of its workers’ compensation
   21  insurance policies written or renewed in each calendar year. or
   22         3. For no more than 5 percent of its personal lines
   23  insurance policies written or renewed in each calendar year for
   24  any line of personal insurance.
   25         (b) In determining the 20 percent 10-percent limitation for
   26  workers’ compensation commercial insurance policies, the insurer
   27  shall exclude any workers’ compensation policy that was written
   28  for an employer who had coverage in the joint underwriting plan
   29  created by s. 627.311(5) immediately before prior to the writing
   30  of the policy by the insurer and any workers’ compensation
   31  policy that was written for an employer who had been offered
   32  coverage in the joint underwriting plan but who was written a
   33  policy by the insurer in lieu of accepting the joint
   34  underwriting plan policy. Such These workers’ compensation
   35  policies must shall be excluded from the 20 percent 10-percent
   36  limitation for the first 3 years of coverage.
   37         Section 2. Subsection (1) of section 631.912, Florida
   38  Statutes, is amended to read:
   39         631.912 Board of directors.—
   40         (1) The board of directors of the corporation shall be
   41  composed consist of nine 11 persons, one 1 of whom is the
   42  insurance consumer advocate appointed under s. 627.0613 or his
   43  or her designee and one 1 of whom is designated by the Chief
   44  Financial Officer. The department shall appoint to the board
   45  four 6 persons selected by private carriers from among the 20
   46  workers’ compensation insurers with the largest amount of direct
   47  written premium as determined by the department, one person
   48  nominated by a statewide trade association representing Florida
   49  employers, which is designated by the Chief Financial Officer,
   50  and one person nominated by the largest property and casualty
   51  insurance agents association in this state. The Chief Financial
   52  Officer may appoint and 2 persons selected by the self-insurance
   53  funds or other persons with experience in workers’ compensation
   54  insurance to the board to serve in place of a nominee of either
   55  association as determined by the Chief Financial Officer. These
   56  appointments are deemed to be within the scope of the exemption
   57  provided in s. 112.313(7)(b). The Governor shall appoint one
   58  person who has commercial insurance experience. At least two of
   59  the private carriers shall be foreign carriers authorized to do
   60  business in this state. The board shall elect a chair
   61  chairperson from among its members. The Chief Financial Officer
   62  may remove any board member for cause. Each board member shall
   63  be appointed to serve a 4-year term and may be reappointed. A
   64  vacancy on the board must shall be filled for the remaining
   65  period of the term in the same manner by which the original
   66  appointment was made.
   67         Section 3. This act shall take effect July 1, 2026.