Florida Workers’ Compensation Insurance Guaranty Association Board of Directors Meeting Report: June 15, 2011

 

The Florida Workers’ Compensation Insurance Guaranty Association (“FWCIGA”) held a Board of Directors (“Board”) meeting today, June 15, 2011 to hear updates on legal issues, claims, operations and financial issues.  The meeting was called to order by Chairman Tom Stahl, with a quorum of members in attendance.

The meeting agenda is attached.

The FWCIGA Receiver’s Report was presented.  Effective February 28, 2011, AequiCap Insurance Company was ordered into receivership for the purpose of rehabilitation.  On March 7, 2011, the court ordered AequiCap’s liquidation. 

The Legal Report indicated there is currently no pending FWCIGA-related litigation.

A claims report was given.  As of April 30, 2011, there are 1,217 claims on file and $12.9 million in reserves.  On March 7, 2011, AequiCap listed its reserves at $12.5 million, but after an investigation (which is still pending), the reserves were listed at $33.9 million.

AequiCap has a target goal of closing 25 percent of the open claims for 2011.  According to the insurer, a serious evaluation of its prescription medical billing programs will be made to determine whether the assistance of an outside vendor is needed.  Currently, however, the claims process is well under control.

The Operations Report detailed an upcoming election to fill the Board’s vacancies sometime at the end of September, 2011. 

The Board is anticipating that HB 1007, which relates to Insurer Insolvency, will be signed into law.  The bill was presented to Governor Scott June 9, 2011.

The Board reviewed the Financial Report.  At the end of May the FWCIGA held a $169 million account balance, $5.6 million in early access funds, claims expenses of $18.8 million and $532 thousand in general administration expenses. 

The FWCIGA Investment Committee is scheduled to meet on July 20, 2011.

The next FWCIGA meeting may be scheduled during the weeks spanning September 21 through 29.

The meeting was then adjourned.

 

 

 

 

Should you have any questions or comments, please contact Colodny Fass.

 

 

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