FWCJUA MAP Committee Meeting Report: April 22

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Market Assistance Plan Committee (“Committee”) met via teleconference on Wednesday, April 22, 2009, for its annual review of the FWCJUA’s Market Assistance Plan (“MAP”) and to consider whether modifications to the Plan are warranted.

FWCJUA Executive Director Laura Torrence said alterations to the current MAP were minimal in 2008, inasmuch as it has been an effective tool in the FWCJUA’s depopulation efforts and goes beyond the requirements of the law.

She added that the FWCJUA has reduced its residual market share from $300 million in 1993 to $6.4 million in 2008.

In addition, the number of voluntary market insurers participating in the MAP Partnership program has increased from 10 to 24, and some of the insurers have expanded their underwriting guidelines so more FWCJUA applicants qualify for voluntary market consideration.

Members agreed that the current MAP effectively addresses the FWCJUA’s statutory charge to establish programs encouraging insurers to provide coverage to applicants and insureds of the plan.  Thus, the Committee had no recommendations for any MAP modifications.

Members also determined that the FWCJUA is well-positioned to facilitate the voluntary market placement of workers’ compensation coverage through Internet MAP report access, a voluntary quote reporting mechanism, and the MAP Partnership Program.

The Committee will send out a bulletin reminding insurers of the MAP program, Ms. Torrence said.  The Committee’s findings will be presented at the FWCJUA Board of Governors meeting on May 1.

The purpose of the MAP is to implement Florida law requiring an accessible market assistance plan to assist in the voluntary market placement of workers’ compensation and employer’s liability insurance coverage for employers applying for, or securing coverage through, the FWCJUA.  The law also states that:

• All applications for coverage in the plan received 45 days before the effective date for coverage shall be processed through the plan, which is specifically designed to serve the needs of small policyholders.  This plan must be reviewed and updated periodically.
• The FWCJUA shall provide for a depopulation program to reduce the number of insureds in the plan.  An employer insured through the plan is no longer eligible for FWCJUA coverage if offered coverage from a voluntary market carrier: during the first 30 days of coverage under the plan; before a policy is issued under the plan; by issuance of a policy upon expiration or cancellation of the policy under the plan; or by assumption of the plan’s obligation with respect to an in-force policy.  The premium for risks assumed by the voluntary market carrier must be no greater than the premium the insured would have paid under the plan, and shall be adjusted upon renewal to reflect changes in the plan rates and the tier for which the insured would qualify as of the time of renewal.  The insured may be charged such premiums only for the first three years of coverage in the voluntary market.

The MAP offers three reports to insurers and producers, which are available on the FWCJUA’s website, and include:

• Two depopulation reports, which identify MAP Account Profiles for employers covered in prior months and those currently covered by the FWCJUA; and
• A “Keep-Out” report for those employers applying for coverage through the FWCJUA, in hopes that the voluntary market will be able to offer coverage before FWCJUA coverage becomes binding.

The FWCJUA’s MAP also includes a “MAP Partnership Program” that provides greater access and coverage placement assistance in the voluntary market for employers applying for FWCJUA coverage.  Since the inception of the program in 2005, the FWCJUA has been able to place 2.7 percent of applicants. 

To view the MAP, which can be found in Part Two of the FWCJUA Operations Manual (Pages 9-11), click here.

With all business concluded, the meeting adjourned.

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

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