Florida/Georgia Personal Injury & Workers Compensation

...of a penalty within the meaning of Section 440.50(4), which provides that: “All civil penalties provided in this chapter, if not voluntarily paid, may be collected by civil suit brought by the division and shall be paid into such fund.” See F.S. section 440.51, F.S.A....

...fund. The board of trustees of each fund shall take all necessary precautions to safeguard the assets of the fund, * * * ” The duty on the part of members of group self-insurer funds to pay such assessments is clearly evident from the language of Section 440.51 and Rules 8AW-4.14, 8AW-4.15, 8AW-4.17, 8AW-4.19, 8AW-4.20 and 8AW-4.21, Fla.Adm.Code, as well as in the fund agreement referred to in the petition heretofore discussed....

...Department of Revenue v. Zurich Insurance Company, 667 So.2d 365 (Fla. 1st DCA, 1995) (Rule 12B-8.016(3)(a)(4), which provides that assessments imposed by other states which are comparable to the worker's compensation administrative assessment imposed by section 440.51, Florida Statutes, shall be included in the calculation of the retaliatory tax, constitutes an unlawful exercise of delegated legislative authority)....

...n the insurance companies writing compensation insurance in the state, . . . which assessments shall become due and be paid quarterly at the same time and in addition to the assessments provided in s. 440.51....

...Disability Trust Fund in accordance with such regulations as the department prescribes. Amerisure is also required to pay quarterly assessments to the Workers’ Compensation Administration Trust Fund (WCATF) pursuant to section 440.51(1), Florida Statutes (2008), which provides in part: Expenses of administration.— 2  (1) The department shall estimate annually in advance the amounts necessary for the administration of this chapter ....

...otwithstanding any statutory provision to the contrary, for the purposes of calculating the annual assessments for the Special Disability Trust Fund under s. 440.49 and expenses of administration under s. 440.51, any amount paid or credited as dividends or premium refunds in the same calendar year by the insurer to its policyholders must be deducted from “net premium,” “net premiums written,”...

...payment obligations, full credit for all overpayments made by it to the WCATF.” The Department took the position that to allow Amerisure to obtain in addition the cash refunds Amerisure requested “would be inconsistent with the provisions” of Sections 440.49(9)(b) and 440.51(1), Florida Statutes....

...carriers—not on policyholders. See §§ 440.49(9)(b)1., Fla. Stat. (2008) (“The Special Disability Trust Fund shall be maintained by annual assessments upon the insurance companies writing compensation insurance in the state. . . .”) (emphasis supplied); 440.51(1)(b), Fla....

...(2008) (“The total expenses of administration shall be prorated among the carriers writing compensation insurance in the state and self-insurers. The net premiums collected by carriers . . . are the basis for computing the amount to be assessed.”) (emphasis supplied); 440.51(5), Fla....

...rative Code, as an unlawful exercise of delegated legislative authority. The challenged rule provides, in pertinent part, that assessments imposed by other states which are comparable to the worker's compensation administrative assessment imposed by section 440.51, Florida Statutes, shall be included in the calculation of the retaliatory tax provided in section 624.5091, Florida Statutes (1993)....

...te in connection with particular kinds of insurance other than property insurance" shall be excluded from the retaliatory tax calculation. The challenged rule requires the inclusion of "[t]he workers compensation administrative assessment imposed by s. 440.51, F.S., as well as comparable assessments in other states" in the retaliatory tax calculation....

...The Hearing Officer concluded that "[t]he challenged rule enlarges and modifies the retaliatory tax statute and contravenes the statutory exclusion by including in the retaliatory comparison the special purpose assessments of other states comparable to the assessment under Section 440.51, Florida Statutes." First, the Department of Revenue asserts that the Hearing Officer applied an *367 incorrect standard of review, by failing to give appropriate deference to the agency's interpretation of the statute....

...dence standard, not the rule making decision of the agency. Id. at 1274. The parties agree that the New York Worker's Compensation Administration Board Fund assessment is comparable to the worker's compensation administrative assessment contained in section 440.51, Florida Statutes. Thus the parties and the hearing officer addressed their reasoning to whether section 440.51 is a "special purpose obligation or assessment imposed in connection with particular kinds of insurance other than property insurance" rather than the relevant New York statute. We accept this reasoning based upon the fact that there is no dispute over the similarity between the New York assessment at issue and the comparable Florida law. We conclude that if section 440.51 is a "special purpose obligation or assessment," Zurich may not be required by rule to include the New York Workers' Compensation Administration Board Fund assessment in its retaliatory tax calculations, because section 624.5091(3), Fl...

...revenue fund. Nonetheless, the Department takes the position that the workers' compensation administrative assessment is not a special purpose obligation or assessment because it funds an operation of government. That interpretation is unreasonable. Section 440.51 clearly provides that these monies are to be deposited into a "special fund" to be used for specified purposes and that the money is "not to be the money or property of the state." The Legislature clearly indicated its intent that the...

...’ compensation carriers. Applicable statutes provided simply that assessments be based on “net premiums written,” § 440.49(9)(b)(3), Fla. Stat. (1999), amended, by ch. 2000-150, § 2, at 564-65, Laws of Fla., and “net premiums collected.” § 440.51(l)(b), Fla....

...riod of many years. In Florida Depart *1254 ment of Financial Services v. RISCORP Insurance Co., 871 So.2d 261 (Fla. 1st DCA 2004), we recounted history that is also pertinent to the present case: In 1975, the Legislature amended sections 440.49 and 440.51, which had both used the term “gross premiums collected,” to prescribe that assessments would be based on “net premiums collected.” See Ch....

...In 1997, the Legislature enacted a law authorizing the deduction of “any amount paid or credited as dividends or premium refunds ... by the insurer to its policyholders” from “net premiums written” and “net premiums collected,” as contained in sections 440.49 and 440.51....

...BARFIELD and WEBSTER, JJ., CONCUR. . Workers' compensation carriers are still required by statute to pay assessments into two trust funds, the Special Disability Trust Fund (SDTF) and the Workers' Compensation Administration Trust Fund (WCATF), pursuant to sections 440.49 and 440.51, Florida Statutes....

...Insurance companies are assessed for contributions to the SDTF based on the amount of "net premiums written,” and companies are assessed for contributions to the WCATF on the amount of "net premiums collected.” § 440.49(9)(b)(2.)-(3.), Fla. Stat. (2005); § 440.51(l)(b), Fla. Stat. (2005). . We held in Florida Department of Financial Services v. RISCORP Insurance Co., 871 So.2d 261, 262 (Fla. 1st DCA 2004), "that the term 'net premiums collected,’ as contained in section 440.51, Florida Statutes, and the term 'net premiums written,’ as contained in section 440.49, Florida Statutes, include ceded reinsurance premiums,” and that no deduction for ceded reinsurance premiums was allowable....

...were entitled to refunds for their overpayment into Florida’s Special Disability Trust Fund (“SDTF”) and Workers’ Compensation Administration Trust Fund (“WCATF”). 1 Concluding that the term “net premiums collected,” as contained in section 440.51, Florida Statutes, and the term “net premiums written,” as contained in section 440.49, Florida Statutes, include ceded reinsurance premiums, we reverse the final judgments to the extent that appellees’ refunds are attributable to reinsurance premiums....

...440.15(1)® and the funding of the Bureau of Workers’ Compensation Fraud within the Department of Insurance.” § 440.50(l)(a), Fla. Stat. (1999). The total expense of the administration of the WCATF is to be prorated among insurance carriers writing compensation insurance in Florida and self-insurers. § 440.51(l)(b), Fla....

...“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.” Id. (emphasis added). HISTORY OF THE STATUTES In 1975, the Legislature amended sections 440.49 and 440.51, which had both used the term “gross premiums collected,” to prescribe that assessments would be based on “net premiums collected.” See Ch....

...In 1997, the Legislature enacted a law authorizing the deduction of “any amount paid or credited as dividends or premium refunds ... by the insurer to its policyholders” from “net premiums written” and “net premiums collected,” as contained in sections 440.49 and 440.51....

...it overpaid its assessments by not deducting ceded reinsurance premiums. RISCORP sought a declaratory judgment that the *264 term “net premiums written,” as contained in section 440.49, and the term “net premiums collected,” as contained in section 440.51, do not include reinsurance premiums....

...n underreporting discrepancy in excess of $100 with respect to their liability under section 440.49 and the SDTF. In 1995, only 17.6% of the reporting carriers had an underreporting discrepancy in excess of $100 with respect to their liability under section 440.51 and the WCATF....

...J.M., 824 So.2d 105, 110 (Fla.2002) (citation omitted). Legislative intent is determined primarily from the language of a statute. State v. Rife, 789 So.2d 288, 292 (Fla.2001) (citations omitted). In looking at the plain language of sections 440.49(9)(b)3. and 440.51(l)(b) and the terms “net premiums written” and “net premiums collected,” it is clear that the Legislature intended that certain costs or expenses should be excluded from a carrier's assessment base....

...word can be ascertained by reference to a dictionary). The annual amounts necessary to fund the SDTF and the WCATF are to be prorated among the insurance companies writing compensation insurance in Florida and the self-insurers. §§ 440.49(9)(b)2., 440.51(l)(b), Fla....

...unreasonably permit a carrier who chooses to purchase reinsurance to reduce its assessment base while a carrier who chooses not to purchase reinsurance would be unable to do so. Such an outcome would be contrary to the intent of sections 440.49 and 440.51....

...In the first place, both the carrier (Travelers) and the Division are in error in taking the position that the carrier can have no obligation to pay supplemental benefits prior to the amendment in 1984. See footnote 1, supra. As the Division points out in its brief, Section 440.51(1)(b) allows a carrier to elect to pay supplemental benefits directly and have such payments credited to their assessment under that section....

...The expense of such payments should be *182 reported by the carrier to the Division for inclusion in the annual expense of administration of this chapter, including supplemental benefits, so that these sums could be recouped by the Trust Fund as contemplated in subsection 440.51(1)(a)....

...Since the carrier agreed that it was still responsible for contribution to the Trust Fund to insure the continuation of supplemental benefits payments, these two paragraphs could be construed as requiring the carrier to see to the payment of such benefits even if it meant an election to pay them directly under Section 440.51(l)(b) with credit for such payments....

...rminated or released. Had Travelers complied with its undertaking pursuant to the stipulation and order, the Division could have properly included the expense of supplemental benefits for claimant in its estimate of expense required to be made under Section 440.51(1)(a)....

...s in this unique posture. Accordingly, it is not necessary to overrule the intent and purpose of the 1985 order and stipulation; instead, Travelers should be treated as having elected to pay the supplemental benefits directly to claimant pursuant to Section 440.51(2), and the question of whether the Division should allow Travelers to take a credit for such payments in view of its failure to properly report the periodic payments being made to claimant is a matter between Travelers and the Division that is beyond the scope of the dispute raised in this proceeding....

...for the payment of supplemental benefits in all cases in which the injury occurred on or after July 1, 1984. Chapter 84-267, Laws of Florida. Section 440.50 provides for the establishment of the Workers’ Compensation Administration Trust Fund, and Section 440.51 provides that the Division’s expenses for administration of the Workers' Compensation Act are to be assessed against the state's workers' compensation carriers and self-insurers....

administration for the current fiscal year. Section 440.-51(1), Fla.Stat. (1983). There is no provision

disability benefits since that time. In accordance with § 440.51(l)(b), Florida Statutes (1981),1 the carrier initially