FASI E-Newsletter
• 35th Annual Convention & Trade Show Update
• FASI Annual Golf Outing 2004 Update
• Thank you to our 35th Annual Golf Sponsors
• First Audit Report - New Law
• Self-Insurance Committee Report
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35th Annual Convention & Trade Show Update FASI’s annual golf outing was Sunday at Tiburon Golf Club (see golf
article for details). The Welcome Reception was in The Club Room with
music featuring Rodger’s Professional DJ Services. Attendees and guests
were greeted by the FASI Officers and the Board of Directors, while they
enjoyed the opportunity to socialize in anticipation of an excellent
educational program on the "Changes & Challenges" facing the industry.
Monday morning Beach Walk/3K Run raised more than $300 in Honor of Mike
Reid and Fran Brown that will be donated to the American Heart Association
in their memory. Many thanks to Black Diamond Transportation and
Translation Services and York Insurance Services Group, Inc., for
sponsoring the tee shirts and for being there to greet the walkers and
runners. Thanks to those who signed up and participated and to those who
bought a tee shirt.
The general session opened with "Presumption”. The panel was made up of
a diverse group of professionals providing pertinent information
surrounding this topic. Many thanks to the panel of Joel Storm, M.D., USF
Physicians Group, Tampa; Lou Stern, Esq., of McConnaughhay, Duffy,
Coonrod, Pope and Weaver, P.A., Tallahassee, Gail Shuffler, Risk Manager,
City of Tallahassee and Moderator, Sondra Seay, Choice Medical Management,
Tampa. Dr. Strom and Attorney Stern addressed the medical and legal
ramifications of the existing Presumption legislation while Ms. Shuffler
and Seay discussed the financial challenges faced by municipalities. There
was a spirited question and answer exchange that focused on the proposed
"First Responders" Legislation.
The next session of “Employment Law Issues” was presented by Peter
Corbin, Esq., managing partner of the law firm of Ford & Harrison LLP,
Jacksonville. This presentation brought us up-to-date on the legal
challenges of this continuing problem in the work place.
Nancy Cavey, Esq., of St. Petersburg and Martin Leibowitz, Esq., of
Jacksonville reviewed 36 recent Florida Workers’ Compensation Appellate
Decisions in just over an hour. The lively discussion was moderated by
John Darin, Esq., Wicker, Smith et al, of Orlando.
Dennis Ross (R), of the Florida House of Representatives, and Ross,
Vecchio & Trussell, P.A., of Lakeland, Florida, presented in the
session the "Legislative Update". Dennis did an outstanding job
summarizing the recent Workers' Compensation Legislative and bringing us
up-to-date on the “changes & challenges” of the laws that become
effective as of October 1, 2004. Dennis also discussed some bills which
did not pass both houses last year but can be expected to be discussed
again in the upcoming legislative session, such as the First Responder
Bill, which would grant generous causation presumptions to emergency
personnel.
“TPA Best Practices” by Michael McClain, CPCU, Bourchard Insurance, of
Clearwater, FL was a wonderful and concise “nuts and bolts” discussion of
what every self-insured should be looking for in the selection of a third
party administrator. If you couldn’t make the seminar, you may want to
contact FASI or Mike for a copy of his power-point. It was great!
The Exhibitor's Showcase, Reception and Prize Drawings were held Monday
in the Plaza Ballroom with music once again featuring Rodger’s
Professional DJ Services. The festive atmosphere offered an excellent
opportunity for camaraderie amongst the self-insureds, exhibitors,
attendees and guests who filled the room. Names of registered attendees
were placed in a bucket and the exhibiting company representative drew the
names and presented the winner with that company 's door prize. Winners
had to be present to win.
Tuesday's sessions began with “Vendor Selection”. Sondra Seay with
Choice Medical Management, Tampa, explained there criteria procedures for
selection of facilities for there managed care network. Mike McDonald with
Danka Business Systems, St. Petersburg, explained what Danka looks for and
expects in an RFP (Request for Proposal) in the selection process for
Third Party Administrative Services. Susan Moore with Osceola County Human
Resources presented her prerequisite for selecting vendors to provide
surveillance, rehabilitation, transportation and DME to name a few. Jack
Winter of Black Diamond Transportation & Translations, Ft. Lauderdale,
as Moderator was able to encourage audience participation making the
session lively and educational.
Next was a very informative session on "Corporate Fraud”. Gail
Shuffler, Risk Manager, City of Tallahassee shared with the audience that
“Corporate Fraud” does not only take place in the largest of corporations,
but is prevalent and ongoing in many companies of all sizes. Stating that
the City of Tallahassee has a “Corporate Fraud Policy” in place, she
provided in-sight on what a company or entity will go through while
investigating a possible department fraud. Scott Woodall, of Woodall &
Broome Investigative Services, Acworth, GA., explained how and when a
fraud is suspected as well as when it is necessary to bring in a third
party to investigate suspicions.
We were pleased that Brian Gee, Executive Director of Florida Self
Insurers Guaranty Association, Inc. (FSIGA), Tallahassee joined us again
this year and agreed to be the speaker in a session titled “How to
Re-Enter Self-Insured Status”. If you missed this session and are thinking
about re-entering it, FSIGA is the agency to contact.
During our Annual Business Lunch, the 2003-2004 Board of Directors were
recognized for their contributions this past year. The new slate for the
2004-2005 Board of Directors was read and approved. John Steele will begin
his second year as President and retain ownership of the Presidential
Gavel. Thank you to those who have served and to those who are about to.
FASI was privileged to have Doug Davidson, Bank of America Global
Treasury Management as our guest speaker. He is an experienced speaker
having given many informative presentations regarding “Fraud and Identity
Theft”. It was an eye opener for many of us on how easy it is to steal an
identity. The presentation prompted a lively discussion with many
questions from the audience with extremely important consumer information
shared by Mr. Davidson. This will be a continuing and growing problem as
time goes on and we hope that Mr. Davidson will agree to return and update
us as new safe guards are developed.
The evening ended with FASI's 35th TropiCasino Dinner Party, featuring
music by Rodger’s Professional DJ Services, delicious cuisine and
desserts. There were more than 15 door prizes provided by FASI which all
guests had an opportunity to win (everyone received a drawing ticket at
the door). Thank you to Black Diamond Transportation and Translation
Services, Free State Adjusters and Woodall & Broome Investigative
Services for donating prizes along with FASI for the bidding with casino
winnings on more than 10 prizes auctioned off at the end of the evening.
Lots of bidding wars ensued, with bids as high as $2 million dollars. Wow!
Thank you to all of our sponsors, exhibitors and attendees for making
this convention a success. We look forward to seeing you again next year.
Mark your calendars for July 24 – 27, 2005.
Membership Report The FASI membership renewal process for the 2004 was quite a success.
Our membership increased by 24 percent. We are also encouraged by the
continued upward trend of members from self-insured public sector, as well
as from the corporate self-insured. We hope this continues.
Our future focus will be on the 440 self-insured entities in Florida.
In addition, we feel FASI has expansive opportunities throughout the
Southeast.
I now want to take a moment to extend a warm welcome to the following
new members for 2004:
FASI
Annual Golf Outing 2004 On July 25, 2004, The FASI Annual Golf Outing was played at a Greg
Norman Course. Tiburon Golf Club, home of the Franklin Templeton Golf
Shootout in Naples Florida. The format was a scramble with a requirement
of using a minimum of two (2) drives per player, no matter how bad. Tee times began at 8:30 a.m., and it was hot. Thank you to Albors
Language /Alnet Transportation Services for sponsoring our much needed
beverages. Awards and prizes were given out after a delicious lunch
buffet, co-sponsored by Heritage Consultants, Inc. and Black Diamond
Transportation and Translation Services, Inc., was awaiting the players in
the Sydney Room at Tiburon at the end of play. Golf tee sponsorship signs
were displayed at tee boxes, recognition and acknowledgment flyers placed
on each golf cart; and a sponsorship sign was displayed daily throughout
the conference. Each registered sponsor was given a ribbon recognizing
their continued support and dedication to The Florida Association of Self
Insurance.
Congratulations to our team winners. 1st Place winning honors and
prizes awarded to Alan Kalinoski, Chris Kalinoski, Jeff Ballou and Nick
Cooper. 2nd Place winning honors and prizes awarded to Trent Lyght, Mark
Crowley, Michael Graham and Jerrold Young and 3rd Place honors and prizes
awarded to Sean Tobin, Marc Wilder, Jim Moody and Bob Bodolay
Congratulations to Pam Staub for Women’s Closest to the Pin and Bob
Widmer for Men’s Closest to the Pin. Proximity hole and prizes sponsored
by York Insurance Services Group, Inc. Congratulations to Mary Beth
Michael for Women’s Longest Drive and Bob Bodolay for Men’s Longest Drive.
Proximity hole and prizes sponsored by Genex. Congratulations to Jeff
Ballou for the Men’s Straightest Drive, Bob Widmer for the Men’s Longest
Putt and Joann Gallo for Women’s Longest Putt. Congratulations to Mark
Crowley for winning the Putting Contest, sponsored by Sports &
Orthopedic Rehabilitation Services, Inc.
I would like to thank all of those who participated in the new 50/50
raffle established this year in Honor of Fran Brown. The inaugural year
raised $200 and I hope it will continue to grow. 50% of the proceeds go to
the winner and 50% donated to the American Heart Association in Memory of
Fran Brown.
At the golf outing, with a $20.00 donation you receive an envelope that
contained a ticket to participate in the Putting Contest, play “The Golf
Poker Hand” around the course and win prizes and cash for 1st and 2nd Best
Hands” and “The Worst Hand” and two Mikeigans (mulligan). Proceeds from
the envelopes are used for cash prizes for the three winners of the golf
poker hand and $200 will be donated to the Mike Reid Scholarship fund.
The Golf Poker Hand and electronic games were sponsored by York Claims
Service, Inc. 1st Best Poker Hand, Electronic Game and $75.00 to Gary
Dove, 2nd Best Poker Hand, Electronic Game and $50.00 to Jim Moody and the
Worst Poker Hand, Electronic Game and $25.00 to Mike McDonald.
Thanks to Bonnie Windsor of Pro-Med who was able to capture the moment
by providing foursome photographs for each golfer and thanks for having
pictures available to be picked up at Welcome Reception and at
Registration throughout the conference.
Throughout the eighteen holes of play, golfers hope their drive is in
the fairway, their short game is good and they are on the green. Some may
shot par, others bogey, even a birdie or make and eagle or some just come
to have fun and help. Thank you to all of Commercial Risk Management who
volunteered there “time” to assist with the golf poker hand and thanks to
John Steele, Miller Electric and Sheryl McLain for helping at registration
and for running the putting contest.
Our thanks too Diane Mummaw of Free State Staffing, Inc., for
collecting and assembling goody bags for all the golfers and thank you to
the companies who donated items. (Please see flyer insert)
Thank you to everyone who participated for his or her commitment and
loyalty to FASI. Without your dedication and continued support this event
would not be possible.
Thank you to our FASI 35th Annual Golf Tournament
Sponsors
First Audit Report - New Law The audit notice letter specified that the state would review all
claims, open and closed, which had any payment activity for the period
06/01/2001 through 03/31/2004. We had a TPA for part or that period and no
specific notice of audit was sent to them. We learned one week prior to
the auditors arriving on site that they were also going to audit their
files as well. We have been self administered since 04/01/2001 and this
resulted in the pre-audit pulling and review of over 1500 files and
completing a spread sheet for the state prior to their arrival. The
auditors examined less than 400 files and then notified us that they need
to examine our TPA's files. Fortunately, our TPA is located in Tallahassee
and part of the audit team went to their site. We do not yet have the
final audit report but the exit interview indicated that we, the City's WC
Claims section faired well. We were penalized for a few late medical
payments, etc. Our TPA, however, had several late indemnity payments, many
late medical payments, miscalculations, etc. We were advised that the
carrier/employer will be fined, not the party responsible. We fully intend
to pursue recovery of these fines from our former TPA. It should also be
noted that the auditors stated that they have fined two different
carriers, $300K each. Please also note that penalties and fines are now
also calculated, for some items, as a percentage of one's annual
assessment. All in all, I was pleased with the outcome but chilled by some
of the informatio n the auditors shared regarding their purpose, mission,
etc. In fact, as one of them stated, they were told in some of their staff
meetings, "There is a new Sheriff in town"
We did a great deal of advance preparation and our files were noted to
be quite neat, orderly and easy to audit. The auditors commented that they
had great difficulty with some other carriers/employers whose files were
not well organized or well documented.
Self-Insurance Committee Report If you missed the 35th Annual Convention and Trade Show, you missed an
excellent presentation by Brian Gee, Executive Director of the Florida
Self-Insurers Guaranty Association, Inc. Brian explained how to reapply
for self-insurance, how to maintain your self-insurance privilege and gave
an overview of the operations of the Guaranty Association. We are
fortunate to have two FASI Board members, Claude Revels and Arden Young,
serving on the Guaranty Association Board.
The process for re-entering self-insurance is the same as a new
applicant. Former self-insurers are given credit for assessments paid
under a former self-insurance privilege. Currently, once you have paid 59
quarters of assessments to the Guaranty Association, the assessment rate
drops to zero.
As a result of 2002 legislation, the Florida Department of Financial
Services, Division of Workers’ Compensation was given the authority to
contract with the Florida Self-Insurers Guaranty Association, Inc. to
perform the day-to-day administrative activities relative to
self-insurance oversight. The Guaranty Association makes recommendations
to the State with final approval or disapproval of the recommendations
being made by the State of Florida.
If you are interested in reapplying for self-insurance or have
questions on your ongoing self-insurance requirements, a visit to the
Guaranty Association’s website is in order. The website is quite
comprehensive and easy to navigate. The address is: www.fsiga.org
The Guaranty Association is working with the Division of Workers’
Compensation in drafting new rules for self-insurers. At this point,
however, the rule changes as a result of the 2004 legislation are taking
precedence. FASI will be actively involved in this process once it is
initiated. Brian did indicate the Guaranty Association would support the
increase in the maximum self-insured retention to $500,000 which is the
lowest retention currently being offered to Florida self-insurers by the
excess insurance market. This would potentially reduce the additional
security deposits currently being required by the State. The maximum
self-insured retention under the current rules is $350,000 or 1.0% of the
employer’s net worth, whichever is greater. Many self-insurers have seen
their security deposits increase by $300,000 or more due to this rule and
the current excess insurance market.
One item that was discussed during our convention was the prospect of
the Division of Workers’ Compensation claims audits. One of our Board
members has received notice of an impending audit to be performed the
first part of August, 2004. We have seen the “Hypothetical” penalty
exhibits from the State which were being sent to all carriers and
self-insurers. Our experience has been that these reports are not entirely
accurate and our members should be vigilant in the future as these
“Hypothetical” penalties become a reality.
If you have questions or comments about the
FASI E-Newsletter, please contact: Bill Kautter at bkautter@kmgnet.com (800-226-3274)
or Newsletter Chair John Darin at jdarin@wickersmith.com
Please note that letters and comments sent to the publisher are
automatically considered for use in upcoming issues unless you expressly
request that they not be used. You may request that you remain anonymous
in the case that your letter or comments are used. We reserve the right to
edit for brevity and/or clarity.
This eNewsletter is automatically sent to all FASI members as an added,
free benefit of membership.
FASI, P.O. Box 150127, Altamonte Springs, FL 32715-0127, 800-226-3274.
--by Bethan Hyde of York Insurance Services
Group, Inc.
The
FASI 35th Annual Convention and Trade Show was held Sunday, July 25, 2004
to Wednesday, July 28, 2004 at The Ritz Carlton, Naples, Florida.
--by Mark C. Resler, CPCU,
AIC of Anderson Columbia Co., Inc.
Membership Committee Chair
As noted in previous newsletters, please
contact FASI directly at 1-800-226-FASI (3274) if you know of anyone
interested in discussing FASI memberships, or pass this number on to the
interested party, or refer them to the FASI website www.fasi-fl.org. Again, welcome to the
new members of FASI, and many thanks to all our renewed members.
--by Bethan Hyde of York
Insurance Services Group, Inc.
as of July 16, 2004
Albors, Alnet Language & Transportation
Beverage Sponsor
Black Diamond Transportation & Translations
BBQ Lunch Buffet
Commercial Risk Management
Golf Tee Sign
CorVel Corporation
Golf Tee Sign
Dean, Ringers, Morgan & Lawton, P.A.
Golf Tee Sign
Edwin Watts
Bags
FASI
1st Place Prizes; 2nd Place Prizes; 3rd Place
Prizes;
Proximity Prizes and Door Prizes.
Florida 1st Service Administrators, Inc.
Golf Tee Sign
Forcon International Corp.
Golf Tee Sign
Free State Staffing, Inc.
Snacks; Door Prize
GENEX
Women’s & Men’s Longest Drive & Winning Prizes
Heritage Consultants, Inc.
BBQ Lunch Buffet
Hurley Rogner Miller Cox Waranch & Westcott PA
Golf Tee Sign
Investigation Specialists, Inc.
Pens
Lauderdale Orthopaedic Surgeons
2 Golf Tee Signs
Pro Med
Foursome Photographs, Bags & Pens
Robson Lapina
Golf Tees Package
Sports & Orthopedic Rehabilitation Services, Inc.
Putting Contest
TechHealth
Golf Tee Sign
Woodall & Broome Investigative Services
Golf Tee Sign & Door Prizes
York Insurance Services Group, Inc.
Golf Poker Hand; Golf Tees and Proximity Prizes
York Special Investigations, Inc.
Beverage Holder
--by Gail
Shuffler, City of Tallahassee
--by Bob
Widmer and Kenneth M. Johns, III