FWCJUA Board of Governors June 29 Meeting Recap

The Florida Workers’ Compensation Joint Underwriters Association (“FWCJUA”) held a Board of Governors meeting on June 29, 2007. 

To view the agenda and Board meeting packet, which includes minutes from the previous Board of Governors, Safety Committee and Producer Appeals Committee meetings, click here.  All minutes documented within the Board packet were approved with no discussion.

The Board reviewed a possible draft letter to be sent to the Office of Insurance Regulation regarding a Market Conduct examination and draft report of the recent FWCJUA audit.  It was determined that there were no compliance issues to be addressed with OIR regarding the report, but only minor, non-substantive typographical edits not required to be implemented.  It was discussed that if these non-substantive changes were made, the possibility of being billed by the auditor existed.  The Board also discussed whether or not to state in the letter that it supports the audit recommendations and that it would cooperate as appropriate.

General Bob Milligan made a motion, which was adopted to have FWCJUA Executive Director Laura Torrence determine whether there was a cost to adopting the non-substantive changes in the Market Conduct report, and that if there is no cost, then the report and transmittal letter should be sent in Ms. Torrence’s name and not the Board’s.

It was reported to the Board that both Workers Compensation-related bills, SB 1894 and HB 7169 were signed by the Governor and take effect on July 1, 2007.

The Board then discussed issues as to how it should address moving forward in light of the passage of the bills, and which of the interim Board members should be involved during the transition period, given the parameters of the new legislation.  Members of the Board felt that after July 1, until such time as the Financial Services Commission (“FSC”) made its appointments, that the Board should be comprised of five members:  The Florida Insurance Consumer Advocate, three FSC appointees and an agent association appointee. 

The members of the Board voiced opinions that the insurance companies could not continue to serve on the board in the holdover capacity and stated that the OIR is not taking a formal position.  Steve Frederickson of the OIR stated that this view seems reasonable and that the OIR is desirous that the current Board move forward as quickly as possible so that the question of appropriate composition of the Board never becomes an issue.

Regarding the filing of Board financial disclosure forms, it was asked that all forms be filed no later than the end of July.  General Milligan also reminded the Board that the issue of governance responsibility does not go away during the interim period and that the current holdover Board still has a governance responsibility until such time as the new Board members are seated.

The Interim Board was reported by Tom Maida to be:
• Ray Neff (Chair)
• Beth Vecchioli
• Claude Revels
• Bob Milligan
• Dan Dannenhauer

A motion was made and unanimously adopted for the current Board to authorize the interim Board members to act on any proposal brought before the Board prior to the new Board being seated, and that the current Chairman would continue to act as Chairman, as well as being Chairman of all Committees, and that all Committees would be comprised of interim Board members.  Jim Watford and Steve Fredrickson then reported that form filings and operations manual filings have been made and approved. 

On June 12, the Board adopted the Seventh Amended Bylaws for review and approval by OIR.  Several issues regarding the Bylaws were discussed.  Concerns included language regarding reconvening of Board and Committee meetings that may not comply with Florida Sunshine Laws, and that the words “Committee Members” should be stricken from certain portions of the Bylaws, given that the FWCJUA will no longer permit non-Board members to serve on Committees.

Another concern was voiced that the proposed Bylaws regarding requirements for 48-hour notification of internal fraud should include Board members or Officers, as well as employees.  Pending direction from the OIR to act specifically on these concerns, the Board decided to take no action unless OIR, after its review, brought concerns to the current or new Board for action.

Regarding the new Board nominating process, OIR was reported to be in agreement with the nominating process as set forth in the proposed Bylaws and that the current FWCJUA should proceed with the nominating process notwithstanding the fact the Bylaws have not yet received OIR approval.

Prior to adjourning the meeting, the outgoing Board members were then recognized by Chairman Neff and thanked for their service.

 

Should you have any comments or questions, please do not hesitate to contact this office.