Mother Nature – summertime and the “Nature of the Season”
“Summertime, and the Living Is Easy.” Many of us remember that refrain from the old, familiar song of many years ago. Well, can’t necessarily agree that the “living is easy,” but Mother Nature sure keeps it interesting during our summer months. In Tally (also known as Tallahassee), and around the state, we experience the ups and downs of days of no rain and then, here comes that torrential thunderstorm that sends even the most devoted golfer, runner and gardener dashing inside for shelter. But really, is there anything better during these balmy days than the delights of the season. For the gardener, we relish in checking our veggie crop (even the little gardeners like myself), to see if there is a yummy, red plum tomato ready for the plucking. So with delight, we gather a handful, and with a quick rinse from the outside water hose, we pop them into our mouths all at once. Good grief, so sweet and fresh right off the vine. For the golfers, there’s that extra nine holes when the sky is blue and clear and of course, the runners just get to run a little longer and clear even more toxins from the work week. Of course, Mother Nature also sends us a few reminders that it is summer, with those pesky mosquitoes that force us inside and we are often stopped in our tracks while enjoying the golf, gardening and outside exercising. Believe it or not, mosquitoes are “timid” in June (WHAT?), and don’t really get aggressive until July, continuing their attacks through at least October. So, with the increased rains, comes the birth of more of the pesky insects (over 50 species in Florida). But even with the mosquito and summertime thunderstorm fears that keep us in the house, we hope you brave the “easy summertime living” and when the insects attack during our summer fun, just run, golf and garden even more, swatting as you go.
Feds May Require Truckers to Carry Higher Insurance Limits
Insurance costs for operating highway freight hauling businesses may soon be rising under a recent federal proposal to require truckers to purchase higher insurance limits, although how much higher is yet to be determined. The Federal Motor Carrier Safety Administration (FMCSA) has asserted in a report to Congress that current minimum financial responsibility limits for the commercial motor vehicle industry, including the $750,000 limit for general freight carriers, are inadequate to meet the costs of some crashes, largely due to rising medical costs. In its report, FMCSA stopped short of recommending specific new limits but could have a proposal by the end of this month (June) and new limits could be published in November. Truckers are split on the issue, with some accepting higher limits and others opposing them as unnecessary and a burden on smaller trucking firms.Insurance carriers aren’t saying much at present, while insurance agents and brokers, noting that many truckers already buy more than the minimum limits, agree that current minimum limits are too low.The FMCSA study found that catastrophic motor carrier crashes resulting in injury, death and/or damages that exceed the current limits are relatively rare, less than one percent of the roughly 330,000 crashes analyzed. However, while catastrophic crashes are rare, the costs for the resulting severe injuries can exceed $1 million and current insurance limits do not adequately cover these costs, according to the report. Congress required the FMCSA report on comparing the benefits of increasing insurance minimums, including improved compensation for crash victims and reductions in commercial vehicle crashes, with the costs imposed on commercial motor vehicle operators and the insurance industry. FMCSA regulates all registered commercial motor vehicles that operate interstate or that carry hazardous materials- or close to 540,000 motor carriers- and their 5.6 million drivers. Current minimum financial responsibility levels imposed under federal law are:
•$750,000 for for-hire interstate general freight carriers
•$1,000,000 for for-hire private carriers of oil and hazardous materials
•$5,000,000 for for-hire and private carriers of other hazardous materials
•$1,500,000 for for-hire passenger carriers of 15 or fewer seats
•$5,000,000 for for-hire passenger carriers with more than 15 seats
•$300,000 for for-hire general freight carriers of less than 10,0001 pounds
These limits do not adequately cover catastrophic crashes mainly because of increased medical costs, the report says. From 1985 to 2013, the medical consumer price index (CPI) increased at a higher rate of 4.9 percent annually than the core CPI rate of 2.8 percent. The medical CPI has outpaced overall inflation in all but one of the last 29 years. According to FMCSA, if the current minimum financial responsibility limit for general freight coverage ($750,000) had been adjusted for inflation using the core CPI, it would be $1.7 million; if adjusted for the medical price index, it would be $3.2 million. Trucking firms’ insurance premiums have remained stable or declined since the 1980s at about $5,000 per bus or truck, according to the report. FMCSA said that it does not have data on what insurance premiums for motor carriers would be if the limits are raised because there is no uniform pricing scheme and insurers are protective of their pricing for competitive reasons. An association for small truckers, the Owner-Operator Independent Drivers Association (OOIDA), criticized the FMCSA’s call for higher limits, noting that the report acknowledges that 99 percent of commercial vehicle accidents are readily covered under current requirements. The trade group, which represents about 150,000 small truckers, also said that FMCSA has not assessed the financial impact of increased requirements on small businesses. The Kansas City, Missouri-based OOIDA contends that an increase in insurance requirements would hurt small businesses that it says comprise more than 90 percent of the trucking industry. LMA will monitor this situation and let you know when a final decision is made regarding requiring higher limits.
Governor, USAA Break Ground on New Tampa Center
Tuesday 6/10/14- This past Tuesday Governor Rick Scott was joined by Shon Manasco, executive vice president, and other leaders from United Services Automobile Association (USAA) to celebrate the ground breaking on USAA’s new Tampa campus. USAA has hired 130 employees in the Tampa area since January 2014, and is continuing to hire more. Governor Scott said, “I applaud USAA’s commitment to growing jobs in Florida, and supporting our active duty military, veterans and their families. This expansion and these 130 jobs are helping more Floridians provide for their families, and live the American dream. We have worked hard to create an environment where businesses can grow and expand, and we must keep working to ensure that more companies like USAA are able to create jobs and opportunities for future generations.” Governor Scott also awarded USAA’s Shon Manasco with the Governor’s Business Ambassador Award which is given to individuals for their efforts in creating jobs and opportunities for Florida families. “For more than 40 years, Tampa has been a critical part of our success as an association,” said Shon Manasco, USAA, executive vice president, member experience. “USAA’s expansion in this vibrant city marks an important step in broadening the impact that this community, and our employees who live and work there, will have as we continue in the pursuit of our mission to serve even more military families.” This groundbreaking is part of USAA’s expansion announced last year that will expand its presence in Hillsborough County, creating up to 1,215 new jobs and $164.3 million in capital investment by 2019. To accommodate the anticipated growth, USAA is leasing 50,000 square feet of temporary office space at Lakeview Center in Tampa, with plans to construct a new, 420,000 square foot facility at the Crosstown Center in Brandon by 2015.
Bills Signed by the Governor Last Week
Not that we ever stop thinking about all things legislative, but even with the “quiet” of the summer, we do want to update you on a few bills that were signed approved by Gov. Scott this last week.
CS/CS/HB 271 – Workers’ Compensation – This is the bill that changes how stop-work orders are handled by the Division of Workers’ Compensation; HB 291 Warranty Associations- This is the bill that authorizes electronic transmission of service agreements & home warranties; CS/CS/HB 633 Division of Insurance Agents & Agency Services – This bill covered a myriad of subjects regulated by the Division of Insurance Agents & Agency Services including revising certain insurance rep’s appointment & renewal fees, and revises requirements for licensure of nonresident surplus lines agents. This is an extensive bill and lots of revisions. We suggest you review the bill in it’s entirely if you are an insurance representative and last but not least, CS/HB 785 Workers’ Compensation – This bill was the final version of the bills that authorizes employers to negotiate the retrospectively rated premium with insurers (under certain conditions) and includes the requirements for insurers engaging in the negotiation of premiums with eligible employers. We will continue to keep you updated as bills are approved by the governor. SB 542 – Flood Insurance– This bill puts Florida in the driver’s seat when it comes to private insurance carriers who want to explore writing PRIMARY flood insurance in Florida, the first of any state with such a legislative and regulatory framework now in place.
Comp Rule Workshop Wednesday for Medical Services Billing, Filing & Reporting
The Division of Workers’ Compensation will conduct a rule workshop for Rule 69L-7.710 regarding Workers’ Compensation Medical Services Billing, Filing and Reporting held on Wednesday (6/18/14) from 9:00 AM until 12:30 PM in Tallahassee. The Division’s proposed rule revisions represent a substantial rewrite and reorganization of Rule 69L-7.710 (this rule was formerly known as Rule 69L-7.602, F.A.C.). Rule 69L-7.710, F.A.C., is being rewritten and reorganized into five proposed rules that are intended to replace existing Rule 69L-7.710, F.A.C. The proposed rules incorporate updated versions of form DFS-F5-DWC-9, related instructions, including revised billing instructions for dispensing practitioners when billing for dispensed medications and for pharmacists billing on form DFS-F5-DWC-10. The proposed rules, likewise, incorporate revised form completion instructions for pharmacies and pharmacists, hospitals, ambulatory surgical centers, health care providers, work hardening programs, nursing homes and home health agencies. In addition, there are new, revised and deleted definitions that support the implementation of SB 662, Ch. 2013-131, L.O.F., and upon federal implementation, use of the ICD-10. This proposal would also incorporate Revision F to the Florida Medical EDI Implementation Guide (MEIG). The proposed rules transfer an entire section of the former rule, titled, “Materials Incorporated by Reference.” The aforementioned section is transferred to proposed new Rule Chapter 69L-8, F.A.C., titled, “Selected Materials Incorporated by Reference,” and organized under proposed new Rule 69L-8.074, F.A.C., titled, “Materials for use throughout Rule Chapter 69L-7, F.A.C.” The creation of Rule Chapter 69L-8, F.A.C., will facilitate future timely and efficient revisions to materials used in the billing and adjustment of workers’ compensation medical services, such as the Current Procedural Terminology (CPT) Manual. The documents for the Billing Rule workshop are:
www.myfloridacfo.com/Division/WC/pdf/69L-7710-750-NOTDEV-6-2-2014.pdf
This is the notice and proposed rule language for dividing 69L-7.710 into multiple rules.
www.myfloridacfo.com/Division/WC/pdf/2014-Draft-Billing-Rule-Revision-Strike-Through-Version.pdf
This illustrates the revision in a more user friendly way. While the revision shows as all new language, it really has only been revised. So, this document shows the revision as strike-through language to emphasize the parts that have been revised. Please contact LMA if you have any questions about the upcoming workshop or proposed revised rules and we’ll be happy to assist you.
Office Approves Takeout of up to 15,000 Citizens Policies for August
Thursday 6/5/14- The Florida Office of Insurance Regulation (OIR) has approved the removal of up to 15,000 multi-peril personal residential policies from Citizens Property Insurance Corporation to Heritage Property & Casualty Insurance Company. This is part of the state’s ongoing effort to reduce the number of policies in state-backed Citizens and transfer them into the private insurance market. Heritage has requested to remove 13,178 policies from Citizen’s Personal Lines Account (non-coastal properties) and 1,822 from the Coastal Account (coastal properties) for the August 19, 2014 take-out period. This announcement brings the total number of policies approved for take-outs this year to 359,341. Polices approved for removal by the OIR are not all necessarily eliminated from Citizens inventory. The policyholder has the choice to remain with Citizens. Policyholders choosing to be transferred have a lower risk of being charged higher amounts for Citizens assessments. To date, 106,380 policies have been removed from Citizens. For more information, please visit the Office’s “Take-Out Companies” webpage at: http://www.floir.com/Sections/PandC/TakeoutCompanies.aspx
Citizens Inspector General Examines Post Citizens Employment Issues
Tuesday 6/2/14 – Citizens Property Insurance Corporation’s Board of Governors Chairman Chris Gardner and President/CEO and Executive Director Barry Gilway have asked Citizens’ Inspector General to review policies and procedures regarding post-Citizens employment to address questions raised about the ability of former employees to seek jobs in the private market. Citizens leaders indicated that the post-Citizens employment issues raised by the media comply with all current legal and ethical requirements, but in an abundance of caution, requested that newly appointed Inspector General Bruce Meeks review state law and corporate restrictions related to the matter. Meeks, whose position was created by lawmakers in 2013, was appointed by, and serves at the pleasure of, the Financial Services Commission (FSC). Under the law, Citizens’ staff may not prevent or prohibit the Inspector General from initiating, carrying out, or completing any audit, review, evaluation, study or investigation. The requested review is the latest effort by Citizens to continue improvements made to standardize management and internal oversight to ensure Citizens is operating in a transparent and ethical manner, according to Barry Gilway, Citizens President/CEO and Executive Director.
Post Session -Revenue Estimating Conference
It was certainly a “meeting of the minds” on May 30 at the Revenue Estimating Conference held in the Capitol Complex’s Knott Building. We attended to get the color and as much information as possible about the revenue impact of many of the bills which passed during the 2014 Regular Session. It was a long and detailed filled conference and in total, 29 tax items and even more bills were discussed. They varied from the Moffit Distribution, the Medical Use of low THC Cannabis, ie, Marijuana, and the Special Disability Trust Fund which is a funding source for permanently injured employees in the work comp arena. With a room of about 35 folks, including the members of the conference, representatives of various regulatory agencies and we who like to be in the know and share with you, it was a detailed and heavy conversation meeting. We intend to continue to attend these ongoing conferences and will give you more details as we obtain more.
So, before we Start Begging for Cooler, Fall Weather, Let’s Enjoy our summertime and…..
Take a few moments to take a quick look at your homeowners/property insurance policies. As we all know June 1, started hurricane season again, so we keep our eyes and ears on the weather and watch out for the drastic thunder storms and weather warnings. In fact, we may want to make a summertime habit of just making sure our policyholders’ insurance coverage is up to date, property values are well covered and even just have a brief chat with those in your world to remind them to talk with their insurance agent to make sure everything is current and what does happen when our insurance is asked to respond. Understanding what happens when a pine tree falls in a policyholder’s yard, or falls into a neighbor’s yard due to a weather event, and how a policy will respond is just one “little” event that can become a big event when it happens. We often remind those that call our offices when they find our organization on the net and think that we are an insurance hotline that there are several policy types that cover property. We point them to HO-3s and for renters who call; the HO-4s and you know the drill. Again, we want our readers and those they connect with in our industry to just “feel better.”
Until next time, be safe, and do have some summertime fun.
Lisa and the Team
