Hartford Financial Services Group to Refund $48 Million in Excess Workers’ Comp Profits to Florida Businesses
– Florida Insurance Commissioner Kevin McCarty today announced the Office of Insurance Regulation (Office) and the Hartford Financial Services Group (Hartford) have entered into a consent agreement
whereby Hartford will issue refunds or credits totaling $48.2 million to Florida businesses for excess profits it earned on its workers’ compensation policies for accident years 2004, 2005 and 2006.
Hartford’s refund will bring the total amount of refunded excess workers’ comp profits for all companies workers’ comp writers in Florida to more than $98.8 million so far this year. Over $29.7 million in excess workers’ comp profits were refunded to Florida businesses in 2008.
“During these tough economic times, Florida businesses will receive a very significant and important return of premium,” said Commissioner McCarty. “Companies certainly are entitled to earn reasonable profits; but the excess profit law protects Florida business owners from paying more than what is actuarially justified.”
Hartford must provide refunds or renewal credits within 60 days from the date of this order and provide documentation of its compliance to the Office.
In addition, Hartford must certify that it has attempted to locate all policyholders whose refund checks are returned; and if unable to locate those policyholders, the funds must be processed as unclaimed or abandoned property pursuant to Chapter 717, Florida Statutes. Hartford also must pay the Office $5,000 in administrative costs.