The FWCJUA provides workers' compensation and employer's 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 with Tier 1 minimum premiums

Applicable Surcharges & Fees


• $475 flat fee
• 25% 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 with Tier 2 minimum premiums

Applicable Surcharges & Fees


• $475 flat fee
• 83% 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 with Tier 3 minimum premiums

Applicable Surcharges & Fees

• $475 flat fee
• 134% above voluntary 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 and may not be offset by any surplus generated within Subplan “A,” Subplan “B,” Subplan “C,” Subplan “D,” Tier 1 or Tier 2 regardless of whether the Employer was ever a participant in another rating subplan or tier.

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 insurance 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.  The ARAP was developed to surcharge insureds with a record of losses greater than expected under the current Experience Rating Plan. The ARAP targets experience rated risks with poor loss records to share in the underwriting losses of the FWCJUA. 

Florida Drug-Free Workplace Premium Credit Program
The premium for an Employer may be reduced by 5% for an Employer  who has certified that it has established a drug-free workplace in accordance with the rules as established by the Division of Workers’ Compensation of the Florida Department of Financial Services. The premium credit shall be applied to the insured's policy pro rata as of the date of receipt of certification by the Service Provider. Self-certification by the Employer may be accomplished by completing Form 09-1 and is subject to physical verification by the Service Provider. Certification is required for each year in which a premium credit is permitted under this program. For more details or to print an application for the Drug-Free Workplace Premium Credit program, please refer to the FWCJUA Operations Manual.

Employer Safety Premium Credit Program
The premium for an Employer shall be reduced by 2% for an Insured which has certified that it has established a Safety Program in accordance with Section 440.1025., Florida Statutes.  The premium credit shall be applied to the Insured's policy pro rata as of the date of certification by the Employer.  Self-certification by the Employer may be accomplished by completing Florida Form 09-3 and is subject to physical verification by the FWCJUA or its Service Provider and/or Division of Workers Compensation.  Certification is required for each year in which premium credit is permitted under this program and is based upon evidence contained in the file of the insurer at the time the credit is allowed.  For more details or to print an application for the Certification of Employer Workplace Safety Program Premium Credit, please refer to the FWCJUA Operations Manual. 

Florida Contracting Classification Premium Adjustment Program (FCCPAP)
The Florida Contracting Classification Premium Adjustment Program provides for a premium credit for a policy that contains one or more contracting classifications.  The credit applies commencing with the anniversary date occurring in the current calendar year.  For those contractors who meet the eligibility requirements, the FWCJUA offers the premium credit associated with the Florida Contracting Classification Premium Adjustment Program. The eligibility requirements and specific rules for calculating the premium discounts are available by consulting the FWCJUA Operations Manual or by contacting NCCI at 800-622-4123 or via the internet at http://www.ncci.com/.

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

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