Florida Workers’ Compensation Insurance Guaranty Association Board Meeting Report: March 26, 2012

The Florida Workers’ Compensation Insurance Guaranty Association (“FWCIGA”) Board of Directors met in Tallahassee today, March 26, 2012. 

The Board was informed that, since its last meeting, Southern Eagle Insurance Company has been placed in liquidation as of December 16, 2011.  Southern Eagle had 29 policyholders and over 200 claims.  Most of the policyholders were Professional Employer Organizations (“PEOs”).

It was reported that the FWCIGA has no pending litigation.  The Board then reviewed the organization’s financial statements.  The FWCIGA is projected to have a cash balance of $100 million by the end of 2012.  FWCIGA’s 2011 audit report also was approved.

A discussion on successful 2012 legislation ensued.  However, it was noted that none of the bills passed directly affect the FWCIGA.  The Board agreed that it should begin planning for the 2013 Regular Legislative Session.  FWCIGA Executive Director Sandra Robinson stated that her staff is researching whether the recent insurer insolvencies could be attributable to PEOs or large deductible policies.  

Board members were updated on outstanding FWCIGA claims.  As of February 29, 2012, there are 976 open claims versus 872 open claims as of October 31, 2011.  The rise in the number of claims is due to the failure of Southern Eagle.

The next Board meeting will be scheduled for May or June 2012, possibly in Orlando.  

With no other business to discuss, the meeting concluded.

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