Property and Casualty JUA Board of Governors Meeting 9/15/06
Jan 14, 2007
The Board of Governors of the new Property and Casualty Joint Underwriting Association (PCJUA) held an emergency meeting this morning to finalize a contract with ICAT Specialty Insurance Company as the servicing carrier to the PCJUA. The Board approved two major changes to the contract which set the payment schedule for ICAT and the modified the requirements for the appointed agents. Among other things, agents will be required to have at least two current appointments with commercial carriers and have written at least $250,000 worth of premium with those carriers within the last two years. Agents will also be required to have at least one surplus lines carrier appointment. Also, ICAT will not have a guaranteed minimum for its contract, and the amount of its compensation will be based on the premium sold.
The PCJUA is now prepared to write policies. The Board repeatedly stated that the contract with ICAT is not an exclusive contract.
Further, in a subsequent press conference, the PCJUA announced that the base rate for the policies will be $1.49 per $100.00 of coverage, which will be adjusted based on the particulars of the property being insured. The PCJUA reiterated that it will only issue wind coverage up to one million dollars.
We will continue to monitor developments and provide updates accordingly.
Regards,
Fred E. Karlinsky