FWCJUA Producer Committee Meeting Report: August 24
Aug 28, 2009
The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Producers Committee (“Committee”) met via teleconference on August 24, 2009. The agenda and meeting materials are attached for review.
Agency Producer Agreement Authorization Process Modified
After consideration of the current Agency Producer Agreement (“Agreement”) authorization process, the Committee voted to recommend its modification to permit a one-time agency authorization with a perpetual agreement that could be amended, but would remain in force until otherwise terminated. It was agreed this would save time and paperwork, as well as be consistent with the voluntary market process. At least annually, FWCJUA staff will continue to confirm an agency’s errors and omissions coverage, registration and license, as well as those of its designated producers’ and customer service representatives’ licenses.
The FWCJUA previously revised the Agreement authorization process in 2007 in order to coincide with statutory changes regarding agency licensing and registration requirements. At that time, one of these modifications had changed the term of an Agreement from one to two years, with no change in the fee structure. This resulted in a 50 percent savings for agencies seeking authorization to submit business to the FWCJUA.
The suggested changes to the Agreement will be made and reviewed by the Committee. If the changes ultimately are adopted by the FWCJUA Board, the revised Agreement and FWCJUA Operations Manual (“Manual”) would be filed for approval with the Florida Office of Insurance Regulation (“OIR”).
Suspension and Revocation Rule Revisions Approved
Clarifications to the FWCJUA Operations Manual Rule relating to the suspension or revocation of agencies, designated producers and/or customer service representatives were discussed.
Currently, the Agreement provides for immediate and automatic suspension or termination upon the occurrence of three events, as well as the possible suspension or termination of the Agreement upon the occurrence of another ten events.
FWCJUA Executive Director Laura Torrence proposed that her position be empowered to terminate an Agreement if an agency or designated producer no longer meets the minimum standards of authorization eligibility. In addition, similar authority to terminate Agreements would be invoked upon a change of control of 10 percent or more of an agency’s voting shares or other voting ownership interest if the FWCJUA determines that this type of change of control provides grounds for termination of an Agreement.
The Committee agreed that the Manual Rule regarding revocation and suspension should be revised to reflect more objectivity and clarify any ambiguities. If these changes are approved by the FWCJUA Board, the revised Agreement and Manual would be filed with the OIR for approval.
On-Line Coverage Application Process
The Committee was updated on the progress of the creation of an on-line, interactive system for coverage application submissions. Customized software is being installed for insurance agencies to submit new business applications via the internet.
Although the target completion date had been set at January 1, 2010, the Committee plans to have the on-line application process running by March 1, 2010. After six months, on-line applications would be mandatory.
The meeting was then adjourned.
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