Meeting Recap: FIGA Board Meets in Tallahassee

On October 11, 2007, the Florida Insurance Guaranty Association, Inc. (“FIGA”) Board of Directors (“Board”) met in Tallahassee, Florida.  Chairman of the Board John Watson called the meeting to order.  The General Counsel read the antitrust statement and the Board approved the minutes of the prior meeting.

Following introductions, Michelle Lovern with FIGA provided the Operations Report.  The Board approved two items:  (1) two additions and one subtraction to the number of signatories for bank signature cards; and (2) changes to the 401(k) plan.  Also, the selection process for the next term’s Board members was initiated.  All existing Board members expressed their desire to continue serving on the Board.

The Board selected Paul Green to serve as FIGA’s representative for the American Guaranty Fund Group, a body comprised of three FIGA members and three Workers’ Compensation group members.  Sandy Robinson with FIGA updated the Board on the activities and current status of the relocation and consolidation of the Jacksonville and Tallahassee offices.  The Board also discussed draft contract language for the American Guaranty Fund.

Next, a legal report was provided to the Board members.  The plan of operation and amendments that must be submitted to and approved by the Department of Financial Services (“DFS”) was discussed and approved by the Board. 

A legislative update was also provided.  Specifically, FIGA has successfully amended the statutes to clarify a misconception, that is, the misconception that FIGA insures some of the newly created self-insurance funds, such as condominium associations.  Discussion regarding this misconception ensued, given that these self-insurance funds are representing that they are being insured by FIGA.  The Board informally agreed to move forward with legislative proposals to require the self insurance funds to notify prospective groups that they are not covered by FIGA.

There was discussion regarding bond finance changes.  In particular, FIGA is going to research whether it is in its best interest to set up an independent bond issuing entity.   Finally, it was noted that FIGA is currently involved in 73 new lawsuits.

The Claims Report was next.  The Poe and Vanguard insolvencies have resulted in many new claims.  There was further discussion about the mediation process and the public adjuster activities that have driven costs up slightly.  It was noted that many new claims from Hurricane Wilma (which made landfall in 2005) continue to come in and that it is very difficult to determine whether the reported claims were a result of wind-related damage from that storm or otherwise. 
           
The Board next discussed the activities from the Finance and Audit Committee.  The budget was approved with minor changes.  The Board also discussed the investment report, the Public Finance Working Group and the DFS’ Operational Review and Charter Review Checklist.  These issues were discussed thoroughly in yesterday’s Finance and Audit Committee meeting and for complete details, please click here to view the report we released yesterday.

There were no announcements made or old business discussed and the meeting adjourned.

For your review, a copy of the Agenda is included.

 

 

The above information is intended to be a general summary of the discussions that took place during the Board meeting.  It is neither intended to provide specific analysis nor should it be relied upon as legal advice, regulatory advice or in making individual business decisions, specific in nature.

 

Should you have any questions or comments regarding this information, please feel free to contact this office.