The Florida Workers’ Compensation Joint Underwriting Association Rates & Forms Committee Report: October 21

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Rates and  Forms Committee (“Committee”) met Wednesday, October 21 via teleconference to consider revisions to the FWCJUA Producers Agreement (“Agreement”) and corresponding revisions to the FWCJUA Operations Manual (“Manual”) made by the Producers Committee at its most recent meeting on October 5.

The Committee voted to accept all the revisions as presented and forward them to the full FWCJUA Board of Governors (“Board”) for consideration at its October 26, meeting.

The changes are intended to include an automatic renewal provision in the Agreement to render it “perpetual,” as well as to address the process for future amendments to the Agreement. The new provisions also would allow the FWCJUA executive director to suspend agencies or designated producers in lieu of terminating their Agreement or revoking their authorization in cases where FWCJUA eligibility compliance can be demonstrated. 

Section 4.2 of the Agreement was amended to make the Agreement automatically renew at the end of each two-year term and to add a provision that if the FWCJUA provides an agency with at least 30 days advanced written notice of an amendment, the amendment will be effective as stated unless the FWCJUA has received a notice of Agreement termination.

Section 2.8 of the Agreement was amended to remove the requirement to maintain adequate errors and omissions insurance or professional liability coverage because the Committee felt that this issue was more appropriately addressed in Section 4.3 of the Agreement.

Section 4.3 was amended to allow the FWCJUA executive director to suspend, rather than terminate or revoke the authorization of an agency or its designated producers to submit business. This is to allow time for the agency or producer to cure the issue and demonstrate compliance with the terms of the Agreement.

Part Four, Section M of the Operations Manual was amended to describe the aforementioned suspension option. In addition, a provision was added to clarify that termination for failure to satisfy minimum eligibility requirements does not necessarily result in the revocation of an agency or its designated producers’ privileges, and that reapplication is an option once compliance has been demonstrated. It would not apply to revocation for disciplinary reasons.

If the above amendments are adopted by the Board the Agreement and Manual revisions will be filed with the Florida Office of Insurance Regulation for approval.

The meeting agenda and materials outlining the changes are attached.

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

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