IBA Southeast: Two key issues dominate P/C industry’s priorities in 2017

Concerns over attorneys’ fees and a Florida Supreme Court decision dominate concern in workers’ compensation in the Southeast state

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Restoring balance to a beleaguered Florida workers’ compensation system is the number one priority for property/casualty insurers in the state in 2017, honing in on two specific goals: amending the attorneys’ fee schedule and dealing with fallout related to the striking down of the statute of limitations on temporary total disability benefits.

The spring and summer decisions by the Florida Supreme court in lawsuits against insurers resulted in a 14.5% jump in workers’ compensation insurance premiums, igniting blowback from state leaders and the business community.

Industry groups are also attempting to craft solutions that will address both concerns.

“We’re working with [Florida state legislature] members now to develop legislation that will find a balance in the attorney fee system,” Joe Woods, vice president of state government relations for PCI, told Insurance Business America. “We want to ensure lawyers are paid an adequate amount for representing injured workers, but we also want to avoid a situation where there is an incentive to milk the system for $200 an hour.

“When there is $20,000 worth of lawyers’ fees over a $1,200 medical bill, there’s a problem.”

The other concern for PCI and members of the workers’ compensation community is the court’s June decision that temporary total disability benefits “broke the grand bargain” by causing a statutory gap in benefits in violation of an injured worker’s right of access to the courts.

The Supreme Court reinstated the 260-week limitation that was in effect prior to the 1994 law change, which had decreased it to 104 weeks.

“Inevitably, we’ll be involved in that,” Woods said.

Florida Insurance Commissioner David Altmaier has also pledged his support, saying he expects to be “actively involved” in the conversation around triggers for the substantial comp rate increase.

“We are going to have opinions on how potential legislation protects injured workers and how they access the workers’ comp market and things of that nature,” Altmaier said.

The next Florida legislative session begins March 7, 2017.
 

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