Florida Workers’ Compensation Joint Underwriters Association Board of Governors Authorizes $4.7 Million Dividend for ‘New’ Subplans A and C 2003-2004 Policyholders

At its meeting today, June 7, 2011, the Florida Workers’ Compensation Joint Underwriters Association (“FWCJUA”) Board of Governors (“Board”) unanimously authorized a 2003-2004 policy year gross policyholder dividend of over $4.7 million for “new” Subplans A and C policyholders.  The FWCJUA will retain a five percent underwriting gain, resulting in a net policyholder dividend of $4,769,411 after expenses.

During the meeting, the Board also approved the following FWCJUA operations-related and administrative matters:

• The filing of a revision to the Loss Control and Safety Performance Standards in the Operations Manual to modify the list of governing classification codes requiring a loss control survey for those policies with estimated annual premium between $10,000 and $25,000 to become effective July 1, 2011
• The filing for Florida Office of Insurance Regulation (“OIR”) approval of the proposed revision to Part Two of the Market Assistance Plan in the FWCJUA Operations Manual that removes the reference to exclusion of the incurred loss ratio for applications not submitted online from the “Employers Applying for Coverage Through the FWCJUA” keep-out report and the “Applications Bound and Awaiting Processing” depopulation report to become effective July 1, 2011
• The continued holding of the two Lehman Brothers bonds and the CitiGroup bond within the FWCJUA’s portfolio as authorized Investment Policy exceptions
• The finalization of a draft letter to the OIR outlining the program to eliminate the FWCJUA’s 2010 Subplan D deficit through May actual. Submission of the letter would be no later than August 11, 2011
• Confirmation of booking the 2011 losses utilizing the January 1, 2011 filed rate changes, along with the loss ratios indicated from the loss experience evaluated as of December 31, 2010
• Confirmation of the revision made to the Contractor Supplemental Application as filed, with an effective date of April 1, 2011

The meeting agenda and materials are attached, which include the FWCJUA legislative update and approved Committee meeting minutes.

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

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