Florida Workers’ Compensation Joint Underwriting Association Operations Committee Meeting Report: February 11

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Operations Committee (“Committee”) met via teleconference on February 11, 2011.  The meeting materials are attached.

Among other agenda items, the Committee reviewed competitive bids for a collection services provider for hire. 

Two companies responded to the FWCJUA’s Request for Proposal, which was issued in early December 2010: 

• Revenue Systems Inc. (“RSI”), the FWCJUA’s existing provider
• Receivable Management Services (“RMS”)

With little discussion, the Committee unanimously recommended that the FWCJUA continue with using RSI as the sole provider of collection services for the next five years with the option of two one-year extensions, beginning July 1, 2011.

Committee members deemed both candidates to be excellent choices, but chose RSI because the FWCJUA had used the company since 1998 with good results.  RSI also submitted the better-priced bid. 

The FWCJUA Board of Governors will consider the Committee’s recommendation to hire RSI at its February 22, 2011 meeting.

It was also announced that the FWCJUA’s controller resigned her position effective February 18, 2011.  Until a permanent replacement is found, Dave Webber has been hired to assist with the transition.  It was explained that the cost associated with the search for a new controller and the hiring of transitional help was not forecast in the 2011 budget, and it is unknown if budget can absorb the cost at this time.

Other Operations Developments

• The FWCJUA’s Web site has been amended to incorporate a schedule of free workplace safety seminars being conducted throughout the State of Florida by the Division of Workers Compensation and the Occupational Safety and Health Administration during the first quarter of 2011.
• The Florida Office of Insurance Regulation (“OIR”) has approved the FWCJUA’s reformatted Operations Manual, as well as revisions to various forms within the Manual that were filed on December 7, 2010.
• Six reinsurance recoveries whose total paid amounts exceeded the reinsurance limits within the accident year were filed with the FWCJUA’s reinsurer.
• The FWCJUA filed its 2011 Reinsurance Program with the OIR on January 3.
• An announcement to all authorized FWCJUA agencies and designated producers has been issued in regard to the form revisions and the reformatted Operations Manual.
• Revised supplemental applications have been installed into the FWCJUA’s Web platform for use effective January 1, 2011.
• The FWCJUA has converted its payroll administration services from SunTrust to Paychex.
• A notice has been sent from the FWCJUA to all Florida licensed insurers regarding the FWCJUA’s free internet-based Market Assistance Plan (“MAP”) product that provides access to key application data to evaluate potential employers insured through the FWCJUA, including the MAP Partnership Program.
• The FWCJUA has redesigned the “login” selection at the top right-hand side of the FWCJUA’s Web site homepage to link the user directly to the Online Application for Coverage, instead of the MAP, considering a majority of the agents prefer to be linked to the Online Application for Coverage.
• A fourth quarter review of the FWCJUA’s book of business identified one EAP account exceeding $300,000. It was determined that circumstances were substantially insufficient to initiate implementation of the Loss Sensitive Rating Plan (“LSRP”); thus, given that the FWCJUA currently only has one account at such a premium level, there remains insufficient activity to warrant activating the LSRP.
• The 2001, 2002 and 2003 Policyholder Return of Premium Dividend distribution results are noted on the meeting materials, which are attached for review.

With no further business before the Committee, the meeting was adjourned. 

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