The FWCJUA provides workers compensation and employers liability insurance to Employers consistent with the rules and procedures set forth in its Plan of Operation and in conformance with the rules and rating plans approved for the FWCJUA for use in Florida by the Office of Insurance Regulation.

FWCJUA Rating Plans
There are established three rating tiers for various classifications of risk which reflect risk of loss, hazard grade, actual losses, size of premium, and compliance with loss control.

All Employers shall be assigned to one of three rating tiers. The eligibility criteria, applicable rates, applicable surcharges and assessable features for each of the three rating tiers are given below:

Tier One: (Rated and Non-rated Employers with good loss experience)

Eligibility Criteria for Rated Employers:


• Experience modification of less than 1.00 and
• No lost-time claims subsequent to the applicable experience modification rating period and
• Total medical-only claims subsequent to the applicable experience modification rating period did not exceed 20% of premium.

Eligibility Criteria for Non-rated Employers:


• No lost-time claims for the immediately preceding 3 years and
• Total medical-only claims for the immediately preceding 3 years did not exceed 20% of premium and
• Workers compensation coverage was secured for the immediately preceding 3 years and
• Provides the entire loss history with corresponding policy premium generated by prior workers compensation Insurer(s) for the immediately preceding 3 years and
• Not a New Business.

Note:


1. For rated Employers, the phrase “subsequent to the applicable experience rating period” refers to the experience period beginning on the first date immediately following the last date included within the Employer’s applicable experience modification rating, for purposes of securing FWCJUA coverage, through the date immediately preceding the inception or renewal date of the FWCJUA policy.
2. A rated Employer shall provide his or her applicable experience rating worksheet at time of application.
3. A rated Employer shall provide his or her entire loss history with corresponding policy premium generated by his or her prior workers compensation Insurer(s) for the rating period subsequent to the applicable experience rating period through the inception or renewal date of FWCJUA coverage.
4. For non-rated Employers, “immediately preceding 3 years” is defined as 3 years prior to the inception or renewal date of the FWCJUA policy.
5. A non-rated Employer who has not elected to secure workers compensation insurance coverage for his or her operations during any portion of the immediately preceding 3 years is deemed ineligible for Tier One.
6. A rated or non-rated Employer who is unable to produce the required loss history with corresponding policy premium generated by prior workers compensation Insurer(s) is deemed ineligible for Tier One. Exception: If the Employer is unable to provide this information due to the insolvency of an Insurer, the Employer must submit the loss history and corresponding policy premium generated by the Receiver for the insolvent Insurer; however, if the Receiver is unable to produce such information, the Employer may submit an affidavit from the Employer and the Employer’s insurance agent setting forth the loss history and the corresponding policy premium.

Applicable Rates:


• FWCJUA rates and minimum premiums

Applicable Surcharges & Fees:


• $475 flat fee
• 10% above voluntary comparable premium. 

Assessable Feature:


• Tier 1 is not assessable.

Tier Two: (Rated Employers with moderate loss experience and Non-rated Employers with limited or no loss experience)

Eligibility Criteria for Rated Employers:


• Experience modification of equal to or greater than 1.00 but less than or equal to 1.10 and
• No lost-time claims subsequent to the applicable experience modification rating period and
• Medical only claims that do not exceed 20% of premium subsequent to the applicable experience modification rating period.

Eligibility Criteria for Non-rated Employers:


• A New Business or
• Less than an immediately preceding 3 years of loss experience with
  1. No lost-time claims for the immediately preceding 3 years and
  2. Medical-only claims that do not exceed 20% of premium for the immediately preceding 3 years.

Note:


1. For rated Employers, the phrase “subsequent to the applicable experience rating period” refers to the experience period beginning on the first date immediately following the last date included within the Employer’s applicable experience modification rating, for purposes of securing FWCJUA coverage, through the date immediately preceding the inception or renewal date of the FWCJUA policy.
2. A rated Employer shall provide his or her applicable experience rating worksheet at time of application.
3. A rated Employer shall provide his or her entire loss history with corresponding policy premium generated by his or her prior workers compensation Insurer(s) for the rating period subsequent to the applicable experience rating period through the inception or renewal date of FWCJUA coverage.
4. For non-rated Employers, “immediately preceding 3 years” is defined as 3 years prior to the inception or renewal date of the FWCJUA policy.
5. A rated or non-rated Employer who is unable to produce the required loss history with corresponding policy premium generated by prior workers compensation Insurer(s) is deemed ineligible for Tier Two. Exception: If the Employer is unable to provide this information due to the insolvency of an Insurer, the Employer must submit the loss history and corresponding policy premium generated by the Receiver for the insolvent Insurer; however, if the Receiver is unable to produce such information, the Employer may submit an affidavit from the Employer and the Employer’s insurance agent setting forth the loss history and the corresponding policy premium.

Applicable Rates:


• FWCJUA rates and minimum premiums

Applicable Surcharges & Fees:


• $475 flat fee
• 70% above voluntary comparable premium. 
  

Assessable Feature:


• Tier 2 is not assessable.

Tier Three: (Rated and Non-rated Employers with “poor” loss experience)

Eligibility Criteria:


• Includes all insureds within the plan that are not eligible for Tier One or Tier Two.

Applicable Rates:


• FWCJUA rates and minimum premiums

Applicable Surcharges & Fees:

• $475 flat fee
• 70% above comparable premium and the Assigned Risk Adjustment Program (ARAP).
  

Assessable Feature:

• Tier 3 is an assessable rating tier. Employers qualifying for Tier 3 shall receive an assessable policy and shall be required to contribute on a pro-rata-earned-premium basis the money necessary to meet any assessment levied to cover any deficit attributable to Tier 3. Participants in Tier 3 may be assessed more than once, and any assessment may be made either while the Tier 3 policy is in effect or at any time after the termination, expiration or cancellation of the Tier 3 policy. Assessments levied against Tier 3 participants shall cover only the deficits attributable to Tier 3.

Employers are required to meet the eligibility criteria for Tiers 1, 2 and 3 at inception of a new or renewal policy, and the tier assignment shall apply throughout the policy period unless the tier assignment was incorrectly assigned or the Employer's experience rating modification or loss history report(s) with corresponding policy premium generated by prior workers compensation Insurer(s) valued as of the date immediately preceding the effective date of the new or renewal policy does not support the tier assignment.

Coverage in Other States
Coverage for Florida Employers working in other states on an incidental, unanticipated basis is provided under your basic FWCJUA policy.  Employers assigned for any period of time or permanently located in another state require a separate policy in that state.  if you need other states' coverage, please contact your Designated Producer.

Experience Rating Plan
Experience rating is a way to calculate premium based on a company’s individual loss experience. If your losses are lower than expected for your industry group, you will receive a premium credit. If your losses are higher, your premium will be increased. Attention to effective safety practices should result in fewer losses and lower premiums for all businesses.

Assigned Risk Adjustment Program (ARAP)(This Program only applies to Tier 3)
An Employer shall be eligible for the Assigned Risk Adjustment Program if it is eligible for an experience rating modification and it qualifies for Tier 3.  The application of this program is mandatory for all eligible Insureds and shall apply to all policies written for such Insureds.  If an ARAP surcharge factor exists for an Employer qualifying for Tier 1 or Tier 2 it should not be applied to the FWCJUA policy. 

Drug-Free Workplace Premium Credit Program
An Employer who establishes a drug-free workplace may qualify for a premium credit under the Florida Drug-Free Workplace Premium Credit Program. Please refer to the NCCI Basic Manual, Florida Miscellaneous Rules for the rules related to this premium credit program.

Employer Safety Premium Credit Program
An Employer who establishes a Safety Program in accordance with Section 440.1025, Florida Statutes, may qualify for a premium credit under the Florida Employer Safety  Premium Credit Program.  Please refer to the NCCI Basic Manual, Florida Miscellaneous Rules for the rules related to this premium credit program.

Contracting Classification Premium Adjustment Program 
An Employer with a contracting classification on its policy may qualify for a premium credit under the Floriida Contracting Classification Premium Adjustment Program (FCCPAP).  Please refer to the NCCI Basic Manual, Florida Miscellaneous rules for the rules related to this premium credit program.

For more information on FWCJUA special programs, please call (941) 378-7400 or e-mail underwriting@fwcjua.com.

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