Florida Workers’ Compensation Joint Underwriting Association Board of Governors Meeting Report: December 7
Dec 14, 2010
The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Board of Governors (“Board”) met on December 7, 2010. The following is a brief summary of Board actions:
2011 FWCJUA Board Appointments
The Board unanimously voted to have FWCJUA Executive Director Laura Torrence, who fills the Board Secretary position, to also fill the Treasurer vacancy. Board members also unanimously agreed to retain the following current FWCJUA Officers for another term. They are:
- Dan Dannenhauer, Vice Chair/Vice President
- Laura Torrence, Secretary
- Michael Cleary, Assistant Secretary
2011 FWCJUA Meeting Schedule
The following FWCJUA 2011 Board meeting dates and locations were finalized:
- February 22: 10:00 a.m., Quarterly Meeting (teleconference)
- June 7: 10:00 a.m., Quarterly Meeting (teleconference), Sarasota
- September 7: 10:00 a.m. Annual Membership Meeting and Quarterly Meeting (teleconference), Sarasota
- December 6: 10:00 a.m., Quarterly Meeting (teleconference)
Other Board Actions:
- Approved a maximum fee of $30,625 to enhance the FWCJUA’s Online Application for Coverage to ensure completion of supplemental applications and the ERM-14 Form as required prior to submitting an FWCJUA application. The change is expected to speed operations.
- Reconfirmed the continued holding of two Lehman Brothers bonds and a CitiGroup bond within the FWCJUA’s portfolio as authorized by exceptions to its investment policy.
- Extended the contract of the existing FWCJUA investment manager for an interim period not to exceed one year. A permanent investment manager is expected to be hired by March, 2011. Wells Capital Management, the FWCJUA’s previous investment manager, resigned effective October 1, 2010.
- The FWCJUA’s reinsurance broker was authorized to place the 2011 FWCJUA reinsurance program. The rate structure is divided into four layers, each with a base of $8 million and a minimum premium of 70 percent of the deposit.
- Board members agreed to continue monitoring the payment patterns of Excaliber Re and, if there is a significant change, consider a possible commutation at a later date.
Rates and Forms
The Board unanimously agreed to extend its actuarial contract with Milliman at the current rate for an additional three and a half years to ensure actuarial consistency during the incoming Board’s transition.
Also approved was the filing of the reformatted FWCJUA Operations Manual for Florida Office of Insurance Regulation approval to be effective January 1, 2011.
To facilitate future updates, the Manual has been reformatted. It includes the complete definition of “Application for Coverage,” with appropriate references to the ACORD 130 FL & 133FL Additional Information Forms.
Also approved were several revised application forms. The following forms are affected:
- ACORD 130 FL Additional Information Form
- ACORD 133 FL (Addendum to ACORD 130 FL)
- Contractor Supplemental Application
- Employee Leasing Supplemental Application
- Horse Trainer Supplemental Application
- Trucker Supplemental Application
Executive Compensation
The Board voted to approve three percent annual salary increases for Ms. Torrence and FWCJUA Board Chairman Charlie Clary effective January 1, 2011. Additionally, Board members agreed to increase the executive staff’s life insurance benefit to twice their salary, subject to a $450,000 maximum benefit, and to correct an executive benefit deficiency related to long-term disability.
Operations
Citing a price difference of $200,000, the Board hired DSM, Inc. for the provision of computer server co-location services instead of Sungard, a cloud-hosting vendor.
The fundamental difference between “co-location” and “cloud-hosting” services is that co-location would afford a dedicated space for FWCJUA equipment, with all the responsibility and expense for maintenance and hardware support belonging to the FWCJUA. Cloud hosting would offer the FWCJUA’s virtual servers on the provider’s hardware. The provider would then maintain and support the equipment.
In other actions, the Board also agreed to hire Comcast as the FWCJUA’s telecommunications provider. It also authorized the purchase of a new phone system from Shared Technologies to replace the FWCJUA’s outdated system.
2011 Business Plan and Forecast
Board members unanimously adopted the 2011 FWCJUA Business Plan and Forecast, which includes projected capital expenditures.
Should you have any comments or questions, please contact Colodny Fass.