Florida Workers’ Compensation Joint Underwriting Association Safety Committee Report: April 15, 2011

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Safety Committee (“Committee”) met briefly via teleconference on April 15, 2011 to approve proposed modifications to the FWCJUA’s Loss Control and Safety Standards Operations Manual that updates claim and policy classification codes.  The meeting materials are attached.

FWCJUA Operations Manager Michael Cleary opened the meeting, briefly summarizing the 2011 FWCJUA Cause of Loss and Safety Program Analysis and offering the following select highlights:

• FWCJUA policy count between 2009 and 2010 decreased by 15.7 percent, compared with a 41.7 reduction between 2008 and 2009, indicating a slowdown in the depopulation rate
• Total incurred amounts increased 178 percent from 2009 to 2010
• Nine claims totaling over $1.4 million in incurred claim costs make up 81.4 percent of the FWCJUA’s total claims costs in 2010
• 2010 results were significantly impacted by two severe accidents, one due to a helicopter crash and one due to an explosion in an ammunition factory

An analysis of existing FWCJUA policy and claim classification codes over a period from 2001 to 2010 showed a need to eliminate 139 classifications from the current list of governing classification codes  for industries that meet certain criteria.  The study also showed a need to add 24 new categories, Mr. Cleary stated.

“Those 139 codes are just classes we have never insured.  They are just something that doesn’t come to the JUA,” he explained.  The code classifications to be eliminated include exposures the FWCJUA has historically not insured, he said.  He did not review the list of classifications to be eliminated.

The 24 proposed new classifications are categories that appear to be generating large or excessive losses for Florida’s residential market, as well as throughout the nation, Mr. Cleary said.  The new classifications include:

• Iron or Steel: Fabrication: Iron or Steel Works (Shop, Structural and Drivers)
• Computing, Recording or Office Machine Manufacturing (“MFG”): Not otherwise classified (“NOC”)
• Machinery or Equipment Erection, or Repair NOC; Drivers
• Explosives or Ammunition MFG: NOC; Drivers
• Carpentry – Installation of Cabinet Work or Interior Trim
• Wallboard, Sheet Rock, Drywall, Plasterboard or Cement Board Installation within Buildings; Drivers
• Sheet Metal Work – Installation and Drivers
• Cleaner – Debris Removal – Construction
• Ship Repair Conversion – All Operations and Drivers
• Taxicab Companies: All Other Employees and Drivers
• Ambulance Service Companies and Emergency Medical Services Providers and Drivers
• Police Officers and Drivers
• Storage Warehouse NOC
• Automobile Service or Repair Center and Drivers
• Retirement Living Centers: Health Care Employees
• Retirement Living Centers: All Other Employees, Salespersons and Drivers
• Physician and Clerical
• Group Homes – All Employees and Salespersons; Drivers
• Social Services Organization – All Employees and Salespersons; Drivers
• College: Professional Employees and Clerical
• Buildings – Operation by Owner or Lessee or Real Estate Management Firm: All Other Employees
• Restaurant NOC
• Restaurant: Fast Food
• Janitorial Services by Contractors – Includes Window Cleaning Above Ground Level; Drivers

With little discussion, the Committee unanimously voted to recommend that the FWCJUA Board of Governors approve the code classification additions and deletions to the Operations Manual at its next meeting.

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

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

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