General FAQ's from Agencies/Producers
Your premium is calculated by assigning a business classification code (or combination of codes) that best describes your business operations. Each code represents a rate per $100 of payroll that is multiplied by your total estimated annual payroll for that code. Other factors may affect the calculation, such as your business's experience modification and applicable tier surcharges.[top]2. What is an experience modification?
An experience modification allows for an adjustment to your organization's premium rate. It reflects your claims history compared to other businesses in your classification. Premiums are adversely affected if losses are worse than average; premiums are positively impacted if the experience is better than average.[top]3. Who do I contact if I have questions about my bill?
Our policy administration Service Provider is Travelers, who is available at 1-800-247-7218 to explain your bill, give you a balance, and/or help you with any other billing questions you may have.[top]4. Who do I contact to discuss the FWCJUA's mandatory safety program?
The Employer should contact the FWCJUA Service Provider who is responsible for providing Loss Control and Safety services. Currently, that is:[top]5. What if company officers want to exclude themselves from coverage?
Travelers Property Casualty
P.O. Box 5600
Hartford, CT 06102-5600
Phone: (800) 247-7218
Fax: (877) 634-3710
Email: arwc@travelers.com
Website: http://www.travelers.com/
Corporate officers of a corporation and Managing Members of a limited liability company (LLC) shall automatically be covered under a FWCJUA policy unless the officer/member files the proper Notice of Election to be Exempt from coverage (DWC250) form with the Department of Financial Services, Bureau of Compliance. Corporate officers and Managing Members in the construction industry are permitted to elect exemptions, only if they maintain at least 10 percent ownership in the corporation/LLC; however, no more than three corporate officers or Managing Members within the corporation/LLC are permitted to be exempt. Corporate Officers of corporations in non-construction industries are also permitted to elect exemptions; however, without either of the above-referenced restrictions applicable within the construction industry. Managing Members of a non-construction LLC are permitted to elect exemptions, only if they maintain at least 10 percent ownership in the LLC and no more than 10 members may elect exemption. Officers and Managing Members must electronically file online through the Department of Financial Services website. Partners and sole-proprietors of non-construction industries are automatically excluded from coverage and do not need to file a Notice of Election to be Exempt form.[top]6.What do I do if my Agency is no longer authorized with the FWCJUA?
[top]7. How do I change my agency/producer of record?Normally, an Employer discovers that their current Agency is no longer authorized with the FWCJUA when they receive a non-renewal notice from the FWCJUA's Service Provider. The notice is usually sent between 60-75 days prior to the policy renewal date and will indicate the reason for non-renewal is the current Agency is no longer authorized with the FWCJUA. When this happens, the Employer can easily locate another authorized Agency on the FWCJUA's website. Simply follow this link, Agency/Producer Locator, and enter your county, city or zip code. The system will generate a list of the Agencies with the Authorized Producer's names, addresses and phone numbers authorized to submit Applications for Coverage to the FWCJUA. Once you've established the Agency who will represent you, a new FWCJUA online Application for Coverage will need to be submitted by the new FWCJUA Authorized Producer.
Please note, it is recommended the new Online Application for Coverage be submitted at least 30 days prior to the renewal date to avoid a potential lapse in coverage.
Changes of Agency of Record must be requested in writing and be accompanied by a submission of an online FWCJUA Application for Coverage for the Employer by a Designated Producer of the Employer's requested Agency of Record.
The FWCJUA requires the following for each Agency of Record letter:
- Typed on the Insured's letterhead.
- Complete with the Insured's name, policy number, and names of the authorized agency and Designated Producer.
- Signed by a corporate officer, owner, member or partner along with their printed name and title.
The requested Agency of Record change shall become effective upon the policy inception date of any coverage bound resultant from the online FWCJUA Application for Coverage submission. Any inforce coverage that the Employer may have with the FWCJUA shall be cancelled to coincide with the effective date of any new coverage bound.
If there is no change to the Agency but merely a change in the Designated Producer, submit a written request to the FWCJUA, which will be processed upon receipt provided the request is:
Requests for Designated Producer of Record changes may be emailed to underwriting@fwcjua.com.
- Typed on the Insured's letterhead;
- Complete with the Insured's name, policy number, and names of the authorized agency and Designated Producer; and
- Signed by a corporate officer, owner, member or partner along with their printed name and title.
The FWCJUA Board of Governors has ruled that all exposures are to be rated on an annual basis with premiums collected accordingly. A policy may be cancelled at any time on a pro rata basis.[top]2. Why doesn't the FWCJUA provide coverage for operations in additional states?
Pursuant to Florida statute, the FWCJUA is only authorized to provide workers compensation and employers liability insurance in the state of Florida. Thus, the FWCJUA is unable to provide coverage for a Florida Employer's operations in another state. The FWCJUA does, however, provide limited other states coverage to Florida Employers who have temporary and incidental exposures in other states.[top]3. Will the FWCJUA provide an "if any" policy for an Employer who leases all of its employees?
The FWCJUA will issue an "if any" policy for an eligible Employer who leases all of its employees only if the Employer's leasing company is also insured by the FWCJUA. If the Employer's leasing company is not insured by the FWCJUA, the FWCJUA will not issue the Employer an "if any" policy.[top]4. Assume an Employer owns a construction business and all of the construction work is done by subcontractors. If the Employer only has one employee who performs clerical work, why does the Employer's policy have to include a construction code, and why does the Employer have to pay the higher minimum premium for the construction code?
In order to properly classify an Employer, the FWCJUA utilizes the one basic classification that best describes the business. In this instance, the business in question is not a clerical company, as a customer would not contact this company to have clerical work done. This company is a construction business, and whether or not the Employer uses employees or subcontractors to do the construction work, the construction code that describes the business must appear on the policy.[top]5. Would a bankruptcy preclude an Employer from obtaining coverage with the FWCJUA?
The FWCJUA's position is consistent with the classification system utilized in Florida. It is the business of the employer within Florida that is classified and not the separate employments, occupations or operations of individual employees within the business. Some reasons for this are:
In summary, a classification system based upon the business of the Employer has the advantage of reflecting the liability which has been insured. The FWCJUA minimum premium rule requires the one basic classification that best describes the business of the Employer within Florida appear on the policy. This reflects the general liability that the FWCJUA is insuring. Regardless of whether an Employer develops payroll under the one basic classification that best describes its business, a liability associated with the Employer's line of business exists for the FWCJUA. Given that the FWCJUA is to be self-funded, it is reasonable for the FWCJUA to charge Employers at a minimum for the liability exposure.a. A workers compensation insurance policy agrees to pay all compensation and other benefits required of the insured by the workers compensation law. Although the injured worker is the beneficiary of the policy, it is the business which is actually insured.
b. Workers compensation laws hold the Employer responsible for compensation benefits to workers injured on the job without any regard to fault. The law places the liability with the Employer, and the insurance contract, in consideration of payment of premium, obliges the insurer to pay all compensation-related costs established by law. Because the Employer's liability is covered, employers are classified by the business undertaken rather than by the duties of individual workers.
No, as long as the Employer is eligible for the coverage. However, the FWCJUA will require a copy of their bankruptcy filing and 100% of the premium must be collected prior to coverage being bound. Acceptable forms of payment are cashier's check, money order, producer check, premium finance check, or a wire transfer from the Employer's bank. For Chapter 7, premium will be based on the most recent 4 quarters of payroll from their RT-6's unless the most recent quarter shows reduced payroll due to downsizing/termination of employees. For Chapter 11, premium will be based on the most recent 4 quarters of payroll from their RT-6's. If a trustee has been appointed, a copy of the most recent monthly operating report must be provided prior to binding coverage. Monthly reports are due within 5 days of filing with the bankruptcy court.[top]6. If the Employer's policy is cancelled prior to the expiration date, will the Flat Fee be pro-rated?
No. The flat fee is fully earned upon commencement of coverage, therefore it shall not be pro-rated upon the cancellation of coverage.[top]7. If an Employer has a minimum premium policy that is cancelled prior to the expiration date, is the published minimum premium fully earned?
FWCJUA minimum premium policies that are cancelled prior to the expiration date are subject to a pro-rata cancellation. Thus, the minimum premium may not be fully earned; however, the flat fee shall be fully earned.[top]8. What is the difference between the advance premium and the deposit premium?
All Employers are required to submit an advance premium to secure or renew coverage. The advance premium paid by the Employer at application or renewal is either all or a portion of the total estimated annual premium.[top]9. Are both an advance premium and a deposit premium required at every renewal?
The deposit premium is a true deposit that is required to be paid by certain Employer's in addition to the advance premium to secure or renew coverage. Employers who fall below a specified total estimated annual premium threshold and/or who have presented collection challenges for the FWCJUA, are required to provide deposits on their policies. At final audit, a deposit is applied to any earned premium due or to the renewal premium (not to the renewal deposit).
The advance premium is required at every renewal; however, the deposit premium may not be required at renewal. If less than 5% additional premium inclusive of fees and surcharges develops for the first policy year and through the second consecutive policy year and any additional premium is timely paid, the Employer shall not be required to pay a deposit premium for the third consecutive policy year or thereafter, as long as additional premium generated for each policy year continues to be less than 5% inclusive of fees and surcharges and any additional premium is timely paid.[top]10. Can one check be submitted for both the advance premium and the deposit premium?
Yes. The money will be applied first to the deposit premium and then to the advance premium. If there is any shortage in the amount submitted, the balance will be due for the advance premium.[top]11. The Employer's total estimated annual premium is $1,200. If the deposit and advance premiums are each 50% of the total estimated annual premium, why does the Employer have to submit $1,600 to secure coverage instead of $1,200?
The Employer's advance premium must be at least 50% of the estimated annual premium or $1,000, whichever is greater. Given this scenario, the advance premium required to secure coverage is $1,000, and the deposit premium (50% of the total estimated annual premium) is $600. Thus, the total monies required to secure coverage is $1,600.[top]12. If an Employer fails to comply with the FWCJUA's mandatory safety program, will the Employer's policy be cancelled?The following chart summarizes the FWCJUA's deposit and advance premium requirements; however, you may prefer to use the FWCJUA's website pricing tool to calculate these premiums:
Total Estimated Annual Premium Deposit Premium Percentage Advance Premium Percentage* Required Additional Payments Total Up-Front Cost < = $1,000
> $1,000 and < = $3,500
> $3,50050%
50%
0%100%
50%
50%0
3**
3**150%
100% (Up to 150%)
50%* Advanced premium shall not be less than $1,000.
** Balance of 50% TEAP (total estimated annual premium) is payable in equal installments at 3, 6 and 9 months from policy inception.
If the Employer fails to demonstrate substantial evidence of compliance or intent to comply with the safety program, the Employer may be disqualified from eligibility, thereby resulting in the cancellation of the Employer's policy.
It is an FWCJUA requirement that was filed and approved by the Florida Office of Insurance Regulation.[top]13. Is it permissible for the Designated Producer's Customer Service Representative (CSR) or another Agency representative to sign the Application for Coverage on the Designated Producer's behalf if the individual has power of attorney?
No, the FWCJUA does not permit a signature from a Designated Producer's attorney-in-fact on an Application for Coverage.[top]14. Can the Designated Producer notarize the Employer's signature?
No, pursuant to section 117.107, Florida Statutes, Designated Producers are not permitted to notarize any forms. Specifically, section 117.107, Florida Statutes, provides that a notary public may not notarize a signature on a document if the notary public has a financial interest in or is a party to the underlying transaction. While there are exceptions to this rule, there does not appear to be any exception allowing insurance agents to notarize documents related to a policy for which they receive a commission or producer fee. In fact, the Governor's Reference Manual for Notaries state in pertinent part as follows:[top]15. Can an Agency employee other than the Designated Producer notarize the Employer's signature?
What constitutes financial interest? There is no exact answer to this question. Although the term is not defined in the notary laws, there are some clear examples of financial interest. For instance, when a notary receives a sales commission on the transaction at hand (the sale of an automobile, an insurance policy, real estate, etc.), he or she would be prohibited from notarizing the signatures of those persons involved. (emphasis provided)
Yes, pursuant to section 117.107, Florida Statutes, the FWCJUA does permit notary public's that are salaried employees of authorized Agencies that do not act as a Designated Producer on an Application for Coverage to notarize forms provided those employees do not receive a benefit other than his or her salary and the fee for services as a notary public authorized by law.
The FWCJUA percentage surcharges in Tiers 1, 2 and 3 apply to voluntary comparable premium, but not to the FWCJUA minimum premiums applicable in each tier. If the voluntary comparable premium after the application of the percentage surcharge is less than the FWCJUA minimum premium for a Tier 1 or Tier 2 policyholder, the applicable FWCJUA minimum premium shall be charged. For Tier 3, the ARAP factor shall apply prior to the application of the appropriate percentage surcharge. If the voluntary comparable premium inclusive of ARAP and after the application of the percentage surcharge is less than the FWCJUA minimum premium for Tier 3, the FWCJUA minimum premium shall apply. The percentage surcharge is not applied to the FWCJUA minimum premium for any tier; however, the flat fee is added to the minimum premium to develop the policy premium.[top]2. What medical-only claim and premium information shall be used to determine the tier eligibility?
The sum of the total incurred medical-only claims reported for the applicable experience period and the total reported policy premium for that same period shall be utilized to determine whether the total medical only claims exceed 20% of premium.[top]3. What loss run information shall be required to determine tier eligibility?
Employers with no experience modification shall be required to provide loss history report(s) with corresponding policy premium generated by prior workers compensation Insurer(s) for any portion or portions of the immediately preceding three years for which the Employer secured coverage.[top]4. Why do loss history reports have to be valued through the date immediately preceding the inception date of FWCJUA coverage?
Employers with an experience modification shall be required to provide loss history report(s) with corresponding policy premium generated by prior workers compensation Insurer(s) for 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. The Designated Producer must also provide the applicable experience modification rating worksheet for purposes of securing coverage through the FWCJUA.
If the Employer is not able to produce its loss history report(s) with corresponding policy premium for the immediately preceding years for which the Employer secured coverage, the Employer shall be assigned to Tier 3 unless the Employer's inability to produce such information is due to the insolvency of its prior Insurer. If the prior Insurer is insolvent, the Employer must submit the loss history with 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 corresponding policy premium.
The FWCJUA must consider the loss experience immediately preceding the inception date of its policy when determining tier eligibility.[top]5. What tier shall be assigned to an Employer with prior coverage if the Employer is unable to provide the required loss history reports with corresponding premium generated by its prior workers compensation Insurer?
The Employer shall be assigned to Tier 3 unless the Employer's inability to produce such information is due to the insolvency of its prior Insurer. If the prior Insurer is insolvent, the Employer must submit the loss history with 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 corresponding policy premium.[top]6. May an Employer who provides its prior loss and premium information valued through an earlier date than the inception date of FWCJUA coverage secure coverage with the commitment to provide the required information at some later date?
If the Employer provides loss history reports with corresponding policy premium for the required experience period which has been valued within the last 30 days, the FWCJUA shall make an initial tier assignment based upon that information. However, the Employer shall be instructed to provide the loss history report(s) with corresponding policy premium for the required experience period valued as of the date immediately preceding the effective date of the FWCJUA policy within 30 days of coverage being bound, with failure to do so resulting in the issuance of a notice of cancellation. The properly valued loss and premium information shall be used to confirm the Employer's initial tier eligibility and may result in the reassignment of the Employer to another rating tier.[top]7. If the Employer's prior Insurer is no longer in business, may the Employer submit old loss runs?
No. The Employer must provide loss runs valued through the date immediately preceding the inception date of the FWCJUA policy for purposes of tier eligibility or the Employer shall be assigned to Tier 3, unless the Employer's inability to produce such information is due to the insolvency of its prior Insurer. If the prior Insurer is insolvent, the Employer must submit the loss history with 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 corresponding policy premium.[top]8. If an Employer with multi-state operations makes application to the FWCJUA for its Florida operations, what premium and loss information shall be used to determine tier eligibility?
If the Employer has an experience modification, the multi-state premium and loss information subsequent to the applicable experience rating period for all operations included within the experience rating shall be utilized to determine tier eligibility.[top]9. If an Employer with an FWCJUA policy provides a loss history report valued mid-term during its policy period to support a lower rated tier assignment, will the FWCJUA consider reassignment?If the Employer does not have an experience modification, all multi-state premium and loss information for the immediately preceding three years shall be utilized to determine tier eligibility.
Yes. The FWCJUA shall consider reassignment of the Employer's tier at renewal. The FWCJUA determines tier eligibility based upon losses valued as of one day prior to the effective date of coverage.[top]10. When determining tier eligibility with regard to medical-only claims, will the decision be based upon paid losses or upon total incurred losses?
The total incurred losses shall be considered in making the tier assignment.[top]11. Is a loss history valuation date the same as the date the Insurer generates the loss run report?
No, not necessarily. The loss history valuation date is the date that the losses were last valued, while the report date may merely reflect the date the report was generated by the Insurer.[top]12. Will a "no loss" letter from the Employer's former workers compensation Insurer be acceptable for purposes of Tier 1 and Tier 2 eligibility?
Yes. The FWCJUA shall accept a "no loss" letter generated by a prior Insurer provided the letter identifies the Employer's prior policy number, policy period and policy premium.[top]13. If an Employer with no recent losses has a contingent experience modification of 1.05, but feels its final experience modification will be less than 1.00, will the FWCJUA consider a Tier 1 assignment?
No. The FWCJUA will utilize the contingent experience modification for purposes of making the initial tier assignment; however, when the Employer's experience modification becomes final, the FWCJUA shall apply it in accordance with the Experience Rating Plan rules regarding contingent modifications. In this case, if the final modification did turn out to be less than 1.00, the Employer would be reassigned to Tier 1 retroactive to policy inception.[top]14. When an Employer's preliminary experience modification is finalized after the issuance of a policy can the Employer's tier assignment change?
Yes. The FWCJUA shall apply the final experience modification in accordance with Experience Rating Plan Manual rules, and if the final experience modification is to be applied retroactively to the inception of the Employer's policy, the Employer's tier assignment shall be re-evaluated. If the Employer's tier assignment changes based upon this re-evaluation, the change in tier assignment shall apply retroactively to the inception of the Employer's policy.[top]15. When an Employer's applicable experience modification changes during the FWCJUA policy term, will the Employer's tier assignment be changed?
An increase or a decrease in the Employer's applicable experience modification that is required to be applied retroactively to the inception date of the Employer's policy pursuant to Experience Rating Plan Manual rules shall also cause a re-evaluation of the Employer's tier assignment. If the Employer's tier assignment changes based upon this re-evaluation, the change in tier assignment shall apply retroactively to the inception of the Employer's policy. An increase in the Employer's applicable experience modification that is required to be applied pro-rata as of the date of endorsement to the Employer's policy pursuant to Experience Rating Plan Manual rules shall be appropriately endorsed on the Employer's policy; however, the Employer's tier assignment shall not be re-evaluated until renewal.[top]16. If a non-rated Employer is found to be combinable with another entity that is rated, will the experience modification be used to determine tier eligibility? If yes, does the experience for the other entity need to be provided to determine tier eligibility even if the other entity's operations are not similar to the Employer's operations?
Yes, because the FWCJUA follows the Experience Rating Plan approved for use in the state of Florida. Accordingly, the losses for the other entity shall be required by the FWCJUA to determine the Employer's tier eligibility, regardless of the other entity's type of operations.[top] 17. If an Employer has an experience rating modification of .97 with no losses subsequent to the applicable experience rating period, but did not secure coverage for some portion of that subsequent period, what tier assignment shall apply?
Tier 3 shall apply. A rated Employer must have secured coverage for the entire period subsequent to the applicable experience rating period to qualify for a Tier 1 or Tier 2 assignment.[top]18. What is a "new business" for purposes of tier eligibility?
A "new business", for purposes of determining Tier 1 and Tier 2 eligibility, means a business enterprise, regardless of business form, which began business operations, such as the sale of goods or the rendition of services, within six months prior to the date the Application for Coverage is received by the FWCJUA. A mere change in the business form of the Employer does not constitute the creation of a new business. For example, a new business is not created when a Sole Proprietor creates a corporation or a limited liability company to transact the same or similar business to that previously transacted by the Sole Proprietor. Furthermore, changes in ownership interest that would result in the continuation of experience if the existing business enterprise were subject to the Experience Rating Plan, shall not result in the creation of a new business.[top]19. If an Employer purchased an existing business that had prior workers compensation insurance and is not considered a "new business" by FWCJUA definition, what tier shall the Employer be assigned to if the Employer is unable to obtain the premium and loss runs from the solvent prior Insurer?
The Employer shall be assigned to Tier 3 if the premium and loss information for the applicable experience period is not provided to the FWCJUA as required. If the Employer and its Designated Producer are unable to obtain information from the prior Insurer, the Employer may contact the Office of Insurance Regulation.[top]20. Can the tier assignment change mid-term during a policy period?
No. The tier assignment assigned at the inception of the policy 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.[top]21. What if the Employer's prior Insurer is not insolvent and will not cooperate in providing the necessary loss history reports with corresponding premium for the required experience period?
The Employer shall be assigned to Tier 3 if it is unable to secure the required loss and premium information from an uncooperative prior Insurer. If the Employer and its Designated Producer are unable to obtain information from the Employer's prior Insurer, the Employer may contact the Office of Insurance Regulation. If, however, the Employer is able to secure the required loss and premium information from the uncooperative prior Insurer during the first 90 days of the FWCJUA policy term and the Employer has maintained proof of non-cooperation of the prior Insurer, the FWCJUA shall reassign the Employer to the appropriate tier retroactive to the inception date of the policy term. At least two valid attempts to secure the information from the Insurer must be documented in order to establish proof of non-cooperation.[top]22. If the Employer contends that its prior Insurer mismanaged claims, will the FWCJUA take the matter under consideration when determining tier eligibility?
No. The FWCJUA shall consider the loss history and premium information for the applicable experience period as generated by the prior Insurer in determining tier eligibility, because the FWCJUA has no authority to act upon allegations that a prior Insurer mishandled claims. The Employer should contact its prior Insurer to resolve such issues.[top]23. If the Employer utilized a deductible program with a prior Insurer, shall the losses the Employer paid be included in the loss history for purposes of determining tier assignment?
Yes. The Employer's complete loss history shall be utilized for purposes of determining tier eligibility.[top]24. If a non-rated Employer starting operations in FL has insured operations in California, New York and Michigan, must I provide the FWCJUA with premium and loss information from those states? If so, how will the premium and loss history information from each state be utilized to determine tier eligibility?
Yes. The FWCJUA shall require the Employer's prior loss history and premium information from the other states to determine the Employer's tier assignment. The premium and loss information from each state shall be added together and totaled to determine whether the medical-only claims exceed 20% of premium for purposes of Tier 1 and Tier 2 eligibility?[top]25. If an Employer starting operations in FL has insured operations in Georgia and Alabama with an applicable NCCI interstate experience rating modification, and also in Michigan with an applicable Michigan intrastate experience rating modification, how will the experience modifications apply for purposes of tier eligibility and must premium and loss information from all three states be submitted for consideration?
The FWCJUA shall utilize the NCCI interstate experience rating modification and the corresponding loss and premium information subsequent to the applicable experience rating period for the Alabama and Georgia operations in determining tier eligibility. The filed and approved Experience Rating Plan in Florida supports the use of the interstate modification; and therefore, the use of the corresponding loss and premium information for Alabama and Georgia.[top] 26. If an Employer secured prior workers compensation coverage as a Client of an employee leasing or staffing company, will a letter from the employee leasing or staffing company regarding the Employer's prior loss and premium information suffice for purposes of Tier 1 and Tier 2 eligibility?
No. The required loss and premium information must be generated by the Insurer for the employee leasing or staffing company.[top]27. May an Employer qualify for Tier 1 or Tier 2, if the previous coverage was through an employee leasing or staffing company?
Yes. The Employer must meet the tier eligibility requirements and provide loss history and premium information generated by its prior Insurer.[top]28. What is the Flat Fee and why is it charged in each tier?
Effective July 1, 2004, the Flat Fee is the non-refundable fee authorized by section 627.311(5)(c)26., Florida Statutes, that is applicable to all new and renewal policies to cover the costs of administration and fraud prevention.< [top]29. Does the Flat Fee apply to a minimum premium policy written in the tier rating plan?
Yes. Pursuant to Florida law effective July 1, 2004, each Application for Coverage and each renewal premium is required to be accompanied by a non-refundable fee of $475 to cover the costs of administration and fraud prevention. Thus, an Employer securing a minimum premium policy shall be charged the minimum premium plus the Flat Fee for FWCJUA coverage.[top]30. If a small Employer has been in business for several years, but has not been required by law to secure workers compensation coverage before making application to the FWCJUA, will the Employer be required to provide the FWCJUA with a "no loss" statement?
No. The Employer shall be viewed as non-rated with less than three years of experience and would be only eligible for Tier 2.[top]31.Will the FWCJUA accept a loss run or a "no loss" letter from a Producer or Managing General Agent (MGA) in lieu of a prior Insurer?
No. The loss history and premium information must be generated from the prior Insurer for purposes of determining tier eligibility.[top]32. If the premium is not displayed on the Employer's currently valued loss runs, what does the Employer need to provide the FWCJUA to satisfy this requirement for tier assignment?
There is no requirement that the premium information be included on the loss run. The FWCJUA must receive verifiable information regarding premium from the Insurer, such as a final audit/billing statement or a declaration page and any endorsements issued subsequent to the declaration page thay changed the premium..[top]33. For purposes of Tier 1 and Tier 2 eligibility for non-rated Employers, what does the FWCJUA consider the "immediately preceding three years"?
For non-rated Employers, "immediately preceding 3 years" is defined as 3 years prior to the inception or renewal date of the FWCJUA policy.[top]34. For purposes of Tier 1 and Tier 2 eligibility for rated Employers, what does the phrase "subsequent to the applicable rating period" refer to?
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.
Your business purchased workers compensation insurance coverage from us for a policy year in which the FWCJUA Board of Governors determined there was a positive underwriting gain exceeding the association's reasonable retention needs. As your company's individual results were better than your assigned rating tier's results, you are eligible for a dividend.[top] 2. I received a policyholder premium dividend check from the FWCJUA, but my company is no longer in business and I am unable to cash the check at the bank under the company's name. Is it possible to get the dividend check re-issued to me individually?
If your business has ceased operations, the FWCJUA can re-issue the dividend check in the name of the rightful owner(s) of the business. The FWCJUA will require a written request and a copy of the company's final tax return (Form 1120s, schedule K-1) so we may verify the name(s), address(es) and ownership interests of the owner(s) of the business at cessation.
Subject to verification by the Office of Insurance Regulation, the FWCJUA may levy assessments against Employers with assessable policies on a pro-rata-earned-premium basis to fund any deficits that exist within their specific tier. Employers with assessable policies may be assessed more than once, and any assessment may be made either while the Employer's assessable policy is in effect or at any time after the Employer's assessable policy is no longer in effect.[top]2. Is there a maximum amount that an Employer with an assessable policy can be assessed for one policy period?Assessments levied against Employers in a specific assessable tier shall cover only the deficits attributable to that specific tier and may not be offset by any surplus generated within another tier regardless of whether the Employer was ever a participant in another tier.
In no event shall the FWCJUA levy any assessments against any person or entity, except as authorized by Section 627.311(5), Florida Statutes.
No, there is no maximum assessment limitation for a policy period; however, the Employer's share of the assessment is limited on a pro-rata-earned premium basis. Further, Employers with assessable policies may be assessed more than once, and any assessment may be made either while the Employer's assessable policy is in effect or at any time after the Employer's assessable policy is no longer in effect.[top]3. Will an Employer with an assessable policy be assessed even if it has incurred no losses?
Yes, an Employer with an assessable policy may be assessed regardless of the Employer's individual performance. Such an Employer may be assessed on a pro-rata-earned-premium basis to fund any deficits that exist within the Employer's tier. Additionally, such an Employer may be assessed more than once, and any assessment may be made either while Employer's assessable policy is in effect or at any time after the Employer's assessable policy is no longer in effect.[top]4. Is there a time limitation on when assessments may be levied against an Employer with an assessable policy?
No, there is no time limitation on when an assessment may be levied against an Employer with an assessable policy. Assessments may be levied either while the Employer's assessable policy is in effect or at any time after the Employer's assessable policy is no longer in effect. Additionally, an Employer with an assessable policy may be assessed more than once.