FWCJUA Producer Committee Meeting Report: August 20

On Wednesday, August 20, 2008, the Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) held a Producer Committee (“Committee”) meeting to discuss proposed revisions to the FWCJUA Agency Producer Agreement (“Agreement”) authorization process.

Committee Chairman Dan Dannenhauer called the meeting to order with Rick Hodges, Beth Vecchioli, Jim Watford and legal counsel in attendance.  Also in attendance was FWCJUA Executive Director Laura Torrence.

Ms. Torrence presented FWCJUA staff recommendations related to the Agreement authorization process. The suggested changes are as follows:

• Clarification that payment of producer fees on outstanding business is allowed during FWCJUA suspension of an authorized agency and its designated producers. Suspensions typically last from one to three months, but could last up to a year.
• Requirement of a complete reapplication for authorization to submit business to the FWCJUA every two years, rather than requiring a renewal application. This change was requested due to the complexity of the Agreement and will simplify the reapplication process.
• Clarification that every agency and designated producer must abide by the following at all times during their agreement by the FWCJUA:
• Agencies and producers must serve as agency/agent of an insurer that is actively writing workers’ compensation and employers’ liability insurance in Florida’s voluntary market
• Agencies and producers must abide by the FWCJUA Plan of Operation, as amended from time to time
• Agencies and producers must provide proof of errors and omissions or professional liability coverage through a valid certificate of insurance issued to the FWCJUA
• Clarification that the FWCJUA has only one office and its location
• Clarification in the Agreement to read “the FWCJUA may, in its sole discretion, immediately suspend or terminate the Agreement upon the occurrence of any material misrepresentation made in connection with FWCJUA business or the demonstrated lack of competency, fitness or trustworthiness to act as an Agency or Designated Producer.” This clarification will ensure consistency between the Agreement and FWCJUA Operations Manual.

Discussion ensued regarding the requirement that agencies/agents must be “actively writing” workers’ compensation and employers’ liability insurance in Florida’s voluntary market during their agreement with the FWCJUA. Committee members expressed concern that if the voluntary market suffered a significant downturn similar to the one that occurred in 1975, undue hardship could be presented to employers seeking coverage.

Although the word “actively” ultimately was left in the clarification, it was requested that “actively” be defined.

The Committee approved all staff recommendations and will present them to the full FWCJUA Board of Governors for final approval. To view a copy of the proposed Agreement revisions and Operations Manual, click here.

The meeting was then adjourned.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

 

 

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