The Notice (filed on May 19, 2008, and described in the company’s Current Report on Form 8-K, dated May 23, 2008) indicated that FOIR had made a preliminary finding that AmCOMP had realized excessive profit in the amount of approximately $11.7 million for accident years 2003, 2004 and 2005.
In the Petition, AmCOMP has asked, among other things, that the Petition be referred to the Florida Division of Administrative Hearings for assignment of an administrative law judge in order to conduct a proceeding involving the matters set forth in the Notice, and that such administrative law judge recommend that FOIR withdraw or rescind its Notice or otherwise find that AmCOMP does not owe any excessive profits for accident years 2003, 2004 and 2005. As the Notice was issued on a preliminary basis, AmCOMP will not be required to return the allegedly excessive profits unless required to do so upon the conclusion of the above proceedings. There can be no assurance that the Division of Administrative Hearings will refer the Petition for assignment to an administrative law judge or that an administrative law judge will accept AmCOMP’s position.
AmCOMP Inc. is an insurance holding company whose wholly owned subsidiaries, AmCOMP Preferred and AmCOMP Assurance, are mono-line workers' compensation insurers with products that focus on value-added services to policyholders. Currently marketing insurance policies in 17 core states and targeting small to mid-sized employers in a variety of industries, AmCOMP distributes its products through independent agencies.