For the first time since 1989, Florida has changed the continuing education requirements for licensed adjusters by dropping the mandatory category requirements of Law, Ethics, and Optional categories and how many of each that adjusters must take.
Effective today, October 1st, ALL Florida-licensed (resident-adjusters in most cases) adjusters whose CE compliance periods end this month, and from here on out, MUST complete a specific 5-Hour Law & Ethics Update course in each two-year license CE compliance period. The content of this 5-Hour Update course is highly regulated and most of the content has been specifically described by Florida’s Department of Financial Services/Education Section.
The problem is…despite nearly two years of communication from the Division of Agent & Agency Services to Florida insurance licensees, the message has not effectively reached its intended audience, and now adjusters are panicking and rushing to ensure compliance and save their licenses. Estimates are that from now on, with each passing month, approximately 2,500 Florida licensed adjusters will come face to face with this mandatory requirement…and find limited ability or availability to meet the requirement…and with penalties of $250 per licensee for failure to do so, that’s a scary thought. But there is a solution… Continue Reading
2012 was a good year for one self-insured Florida municipality. It not only avoided more than $5 Million in future self-insured workers’ compensation exposures by successfully securing acceptance of a serious injury claim by its excess carrier, it also recovered in excess of $3 Million in prior payments from other excess carriers. What makes these results so significant? The claims had been either denied or rights-reserved due to delayed or poor excess claims management. Fortunately, quick action and sound legal arguments prevailed.
Over the past 20 years I have had the opportunity to conduct reserve adequacy reviews on literally thousands of ‘self-insured’ workers’ compensation claim files. These claims were, and still are, being managed by carriers, third party administrators, and self-insured self-administered entities. While the quality of handling and reserving is all-over-the-board, from very good to very bad, one of the most consistent findings had been the lack of timely and appropriate management of claims with excess exposures…and the consequences have been the loss of tens, if not hundreds, of millions of dollars in excess recovery.
Fortunately, this can be fixed; and it doesn’t take a lot of money or time to do so. It just takes appropriate action… Continue Reading
Traditional notions of insurance are nearly extinct, and the brave new world of retained risk has given new meaning to the notion of self-insurance as commercial consumers become the majority, and often exclusive, stakeholders in the financial outcome of claim exposures. One might argue that, except in the case of a catastrophic loss, true insurance in the commercial arena no longer exists as today’s consumers find themselves facing a much greater risk of loss through increased self-insured retentions and deductibles.
Consequently, it should come as no surprise that risk managers are demanding higher quality, comprehensive claim management vs. low-cost administration. The challenge facing them is where to find it and how to recognize it. A simple and effective method for identifying “best in class” claim practice does exist, though. Continue Reading