The Florida Senate

440.51  Expenses of administration.--

(1)  The division shall estimate annually in advance the amounts necessary for the administration of this chapter, in the following manner.

(a)  The division shall, as soon as practicable after July 1 in each year, determine the expense of administration of this chapter for the preceding fiscal year. The expense of administration for such preceding fiscal year shall be used as the basis for determining the amount to be assessed against each carrier in order to provide for the expenses of the administration of this chapter for the current fiscal year.

(b)  The total expenses of administration shall be prorated among the insurance companies writing compensation insurance in the state and self-insurers. The net premiums collected by the companies and the amount of premiums a self-insurer would have to pay if insured are the basis for computing the amount to be assessed. This amount may be assessed as a specific amount or as a percentage of net premiums payable as the division may direct, provided such amount so assessed shall not exceed 4 percent of such net premiums. The insurance companies may elect to make the payments required under ¹s. 440.15(1)(e) rather than having these payments made by the division. In that event, such payments will be credited to the insurance companies, and the amount due by the insurance company under this section will be reduced accordingly.

(2)  The division shall provide by regulation for the collection of the amounts assessed against each carrier. Such amounts shall be paid within 30 days from the date that notice is served upon such carrier. If such amounts are not paid within such period, there may be assessed for each 30 days the amount so assessed remains unpaid, a civil penalty equal to 10 percent of the amount so unpaid, which shall be collected at the same time and a part of the amount assessed.

(3)  If any carrier fails to pay the amounts assessed against him or her under the provisions of this section within 60 days from the time such notice is served upon him or her, the Department of Insurance upon being advised by the division may suspend or revoke the authorization to insure compensation in accordance with the procedure in s. 440.38(3)(a).

(4)  All amounts collected under the provisions of this section shall be paid into the fund established in s. 440.50.

(5)  Any amount so assessed against and paid by an insurance carrier, self-insurer authorized pursuant to ²s. 440.57, or commercial self-insurance fund authorized under ss. 624.460-624.488 shall be allowed as a deduction against the amount of any other tax levied by the state upon the premiums, assessments, or deposits for workers' compensation insurance on contracts or policies of said insurance carrier, self-insurer, or commercial self-insurance fund.

(6)(a)  The division may require from each carrier, at such time and in accordance with such regulations as the division may prescribe, reports in respect to all gross earned premiums and of all payments of compensation made by such carrier during each prior period, and may determine the amounts paid by each carrier and the amounts paid by all carriers during such period.

(b)  The Department of Insurance may require from each self-insurer, at such time and in accordance with such regulations as the Department of Insurance prescribes, reports in respect to wages paid, the amount of premiums such self-insurer would have to pay if insured, and all payments of compensation made by such self-insurer during each prior period, and may determine the amounts paid by each self-insurer and the amounts paid by all self-insurers during such period. For the purposes of this section, the payroll records of each self-insurer shall be open to annual inspection and audit by the Department of Insurance or its authorized representative, during regular business hours; and if any audit of such records of a self-insurer discloses a deficiency in the amounts reported to the Department of Insurance or in the amounts paid to the Department of Insurance by a self-insurer pursuant to this section, the Department of Insurance may assess the cost of such audit against the self-insurer.

(7)  The division shall keep accumulated cost records of all injuries occurring within the state coming within the purview of this chapter on a policy and calendar-year basis. For the purpose of this chapter, a "calendar year" is defined as the year in which the injury is reported to the division; "policy year" is defined as that calendar year in which the policy becomes effective, and the losses under such policy shall be chargeable against the policy year so defined.

(8)  The division shall assign an account number to each employer under this chapter and an account number to each insurance carrier authorized to write workers' compensation insurance in the state; and it shall be the duty of the division under the account number so assigned to keep the cost experience of each carrier and the cost experience of each employer under the account number so assigned by calendar and policy year, as above defined.

(9)  In addition to the above, it shall be the duty of the division to keep the accident experience, as classified by the division, by industry as follows:

(a)  Cause of the injury;

(b)  Nature of the injury; and

(c)  Type of disability.

(10)  In every case where the duration of disability exceeds 30 days, the carrier shall establish a sufficient reserve to pay all benefits to which the injured employee, or in case of death, his or her dependents, may be entitled to under the law. In establishing the reserve, consideration shall be given to the nature of the injury, the probable period of disability, and the estimated cost of medical benefits.

(11)  The division shall furnish to any employer or carrier, upon request, its individual experience. The division shall furnish to the Department of Insurance, upon request, the Florida experience as developed under accident year or calendar year.

(12)  In addition to any other penalties provided by this law, the failure to submit any report or other information required by this law shall be just cause to suspend the right of a self-insurer to operate as such, or, upon certification by the division to the Department of Insurance that a carrier has failed or refused to furnish such reports, shall be just cause for the Department of Insurance to suspend or revoke the license of such carrier.

History.--s. 51, ch. 17481, 1935; CGL 1936 Supp. 5966(49); s. 17, ch. 18413, 1937; s. 1, ch. 24081, 1947; s. 14, ch. 28241, 1953; ss. 14, 15, ch. 29778, 1955; ss. 13, 17, 35, ch. 69-106; s. 23, ch. 74-197; s. 25, ch. 75-209; s. 23, ch. 78-300; ss. 39, 124, ch. 79-40; s. 21, ch. 79-312; s. 19, ch. 80-236; s. 281, ch. 81-259; s. 16, ch. 88-206; s. 43, ch. 89-289; s. 56, ch. 90-201; s. 52, ch. 91-1; s. 46, ch. 93-415; s. 128, ch. 97-103.

¹Note.--Redesignated as s. 440.15(1)(f) by s. 20, ch. 93-415.

²Note.--Transferred to s. 624.4621 by s. 79, ch. 93-415.