Florida Workers’ Compensation Joint Underwriting Association Producers Committee Report: October 5

The Florida Workers’ Compensation Joint Underwriting Association, Inc. (“FWCJUA”) Producers Committee (“Committee”) met via teleconference on October 5, 2009, during which the Producer Agreement (“Agreement”) and Operations Manual were amended. 

The changes, which were all approved unanimously by the Committee, are intended to (1) include an automatic renewal provision in the Agreement to render it “perpetual,” as well as address the process for future amendments to the Agreement, and (2) allow the FWCJUA executive director to suspend agencies or designated producers in lieu of terminating their Agreement or revoking their authorization if compliance with the eligibility requirements of the FWCJUA can be demonstrated. 

The following additional related changes were made: 

Section 4.2 of the Agreement was amended to add a provision that if the FWCJUA provides an agency with at least 30 days advanced written notice of an amendment to its Agreement, the amendment will be effective as stated in the 30-day notice, unless the FWCJUA has received a prior notice of Agreement termination.

Section 2.8 of the Agreement was amended to remove the requirement to maintain adequate errors and omissions insurance or professional liability coverage because the Committee felt that this issue was more appropriately addressed in Section 4.3 of the Agreement.

Section 4.3 was amended to allow the FWCJUA executive director to suspend, rather than terminate or revoke the authorization of an agency or its designated producers to submit business. This is expected to allow time to demonstrate compliance with the terms of the Agreement.

Part Four, Section M of the Operations Manual was amended to describe the aforementioned suspension option. In addition, a provision was added to clarify that termination for failure to satisfy minimum eligibility requirements does not necessarily result in the revocation of an agency or its designated producers’ privileges, and that reapplication is an option once compliance has been demonstrated. It would not apply to revocation for disciplinary reasons.

If the changes are ultimately adopted by the FWCJUA Board of Governors, the Agreement and the Operations Manual revisions will be filed for Florida Office of Insurance Regulation approval.

The meeting agenda and materials outlining the changes are attached.

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

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