FWCJUA Board of Governors Meeting Report: February 20
Feb 23, 2009
The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Board of Governors (“Board”) met on Friday, February 20, 2009.
The Board approved FWCJUA reserve estimates for unpaid loss and loss adjustment expenses for the years 1994 through December 31, 2008 at $47.1 million for gross reserves and $25.3 million for net reserves.
An overall average rate decrease of one-half percent (0.5%) to be effective April 1, 2009 also was approved. This decrease will be applicable to all new and renewal business and will be adjusted to reflect the recently-approved voluntary workers’ compensation market rate level and class relativity changes effective April 1, 2009.
As a result of the half-percent rate decrease, the FWCJUA’s maximum minimum premium amount will increase from $2,400 to $2,500. FWCJUA surcharge tiers will decrease as follows:
- Tier 1-from 35 to 33 percent
- Tier 2-from 126 to 123 percent
- Tier 3-from 139 to 138 percent
It was discussed that if voluntary market rate changes occur as a result of any 2009 legislation stemming from the Florida Supreme Court ruling in Emma Murray vs. Mariner Health, the FWCJUA would follow suit and adjust its rates accordingly.
Two recently-filed bills that appear to restore the attorneys’ fee schedule as overturned in Emma Murray were briefly identified by FWCJUA Executive Director Laura Torrence.
One of those bills, House Bill 311 by State Representative Priscilla Taylor (D-Riviera Beach), was withdrawn prior to introduction. To view the bill text, click here.
The second bill, HB 903 by State Representative Anitere Flores (R-Miami ), would make substantive attorneys’ fee changes in addition to removing the ambiguity of the fee schedule as identified by the Supreme Court. The bill, which can be viewed by clicking here, also would prohibit excess awards.
The fee schedule provided under HB 903 specifies a maximum fee, but provides that a Judge of Compensation Claims or court may approve a lower fee. However, the bill does not provide standards by which a Judge of Compensation Claims or court may determine whether to award the maximum fee or a lower amount.
HB 903 would not affect the Florida law that allows a Judge of Compensation Claims to approve an alternative attorney’s fee (not exceeding $1,500) when the judge expressly finds that the fee schedule fails to fairly compensate an attorney for a disputed medical-only claim.
Revisions to the FWJUCA investment policy designed to ensure continued prudent investment in competitive government-backed programs were approved by the Board. Guidelines for investment in certificates of deposit issued by banks or thrift institutions that are not fully insured by the FDIC were included. Commercial banks were deleted from the list of acceptable institutions.
The next Board meeting will be held on March 10, 2009 via teleconference. The meeting was originally scheduled to be held at the FWCJUA Headquarters in Sarasota, Florida, but now will be held via teleconference in response to a letter from Florida Insurance Commissioner Kevin McCarty urging all state joint underwriting associations and other governmental entities to review and reduce their expenses.
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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