Florida Regulations 69O-189.010: Workers’ Compensation Insurance Dividend Plans Defined
Current as of: 2024 | Check for updates
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(1) An insurer, in order to avoid policy and advertising misrepresentation as set forth in Florida Statutes § 626.9541(1), shall not include an estimated amount of dividend which may be received, in the calculation of premium on proposals for workers’ compensation insurance in the State of Florida.
(2) Insurers may, in connection with such proposals, advise and disclose actual dividends which have been paid by said insurer on policies which expired prior to the date of the proposal, and on which dividends were declared. In all cases, the proposal must include a statement that dividends are declared only at the option of the company’s board of directors and cannot be guaranteed.
(3) Any favor or advantage in paying or allowing dividends or other benefits as an inducement to an insurance contract is defined as an unfair method of competition under section 626.9541(8)(a)2., F.S.
(4) A retention plan may be a rating plan or a dividend plan depending on the method by which the return is made to the policyholder. If any return of premium to the policyholder is subject to the decision of the board of directors of the insurer and is returned in the form of a dividend, then the plan under which the premium is returned is not construed to be a rating plan.
(5) If any return of premium to the insured is not subject to the decision of the board of directors, then the plan under which the premium is returned to the insured is construed to be a rating plan and must be filed by the carrier or a designated rating organization.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307(1), 626.9541(1), (8)(a)2., 628.361, 628.371, 628.391 FS. History-New 6-4-92, Formerly 4-189.010.
Terms Used In Florida Regulations 69O-189.010
- Contract: A legal written agreement that becomes binding when signed.
(3) Any favor or advantage in paying or allowing dividends or other benefits as an inducement to an insurance contract is defined as an unfair method of competition under section 626.9541(8)(a)2., F.S.
(4) A retention plan may be a rating plan or a dividend plan depending on the method by which the return is made to the policyholder. If any return of premium to the policyholder is subject to the decision of the board of directors of the insurer and is returned in the form of a dividend, then the plan under which the premium is returned is not construed to be a rating plan.
(5) If any return of premium to the insured is not subject to the decision of the board of directors, then the plan under which the premium is returned to the insured is construed to be a rating plan and must be filed by the carrier or a designated rating organization.
Rulemaking Authority Florida Statutes § 624.308(1). Law Implemented 624.307(1), 626.9541(1), (8)(a)2., 628.361, 628.371, 628.391 FS. History-New 6-4-92, Formerly 4-189.010.