Producer Frequently Asked Questions.

1. Why aren't short term policies available through the FWCJUA?
   
   
2. Why doesn't the FWCJUA provide coverage for operations in additional states?
   
   
3. Will the FWCJUA provide an "if any" policy for an Employer who leases all of its employees?
   
   
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?
   
   
5. Why won't the FWCJUA provide a policy for any Employer that wants coverage for certain types of employments, such as professional athletic teams?
   
   
6. Why are the FWCJUA rates/surcharges higher than those utilized in the voluntary market?
   
   
7. What is an expense constant?
   
   
8. Does an expense constant apply to a minimum premium policy?
   
   
9. If the Employer's policy is cancelled prior to the expiration date, will the Flat Fee be pro-rated?
   
   
10. If an Employer has a minimum premium policy that is canceled prior to the expiration date, is the published minimum premium fully earned?
    
    
11. Since the rates and minimum premiums are so high, what are an Employer's payment options?
    
    
12. What is the difference between the advance premium and the deposit premium?
    
    
13. Are both an advance premium and a deposit premium required at every renewal?
    
    
14. Can one check be submitted for both the advance premium and the deposit premium?
    
    
15. 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?
    
    
16. Does the Anniversary Rating Date (ARD) rule apply to FWCJUA policies?
    
    
17. Effective July 26, 2003, participation in the FWCJUA's safety program is mandatory by law. How will this be implemented?
    
    
18. If an Employer fails to comply with the FWCJUA's mandatory safety program, will the Employer's policy be canceled?
    
    
19. Who should an Employer contact to discuss the FWCJUA's mandatory safety program effective July 26, 2003?

ASSESSMENTS:

1. When and how often will assessments be made against Employers with assessable policies?
   
   
2. Is there a maximum amount that an Employer with an assessable policy can be assessed for one policy period?
   
   
3. Will an Employer with an assessable policy be assessed even if it has incurred no losses?
   
   
4. Is there a time limitation on when assessments may be levied against an Employer with an assessable policy?

TIER RATING STRUCTURE: (Effective July 1, 2004, applicable to new and renewal business as well as to the remainder of the unexpired term for business written with inception dates of May 28, 2004 through June 30, 2004.)

1. Is the Tier 1, Tier 2 or Tier 3 percentage surcharge applied to the minimum premium when a policy is issued on a minimum premium basis?
   
   
2. Will an Employer's payment options be any different with the introduction of the tier rating structure?
   
   
3. Will an Employer's deposit and advance premium requirements be any different with the introduction of the tier rating structure?
   
   
4. What medical-only claim and premium information shall be used to determine the tier eligibility?
   
   
5. What loss run information shall be required to determine tier eligibility?
   
   
6. Why do loss history reports have to be valued through the date immediately preceding the inception date of FWCJUA coverage?
   
   
7. What tier shall an Employer with prior coverage be assigned to if the Employer is unable to provide the required loss history reports with corresponding premium generated by its prior workers compensation Insurer?
   
   
8. 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?
   
   
9. What is the Flat Fee and why is it charged in each tier?
   
   
10. Does the Flat Fee apply to a minimum premium policy written in the tier rating plan?
    
    
11. If an Employer secured prior workers compensation coverage through an employee leasing arrangement such as with a PEO, will a letter from the PEO regarding the Employer's prior loss and premium information suffice for purposes of Tier 1 and Tier 2 eligibility?
    
    
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?
    
    
13. What is a "new business" for purposes of tier eligibility?
    
    
14. If the Employer's prior Insurer is no longer in business, may the Employer submit old loss runs?
    
    
15. If an Employer with no recent losses has a contingent modification of 1.05, but feels his or her final modification will be less than 1.00, will the FWCJUA consider a Tier 1 assignment?
    
    
16. When an Employer's preliminary modification is finalized after the issuance of a policy can the Employer's tier assignment change?
    
    
17. When an Employer's applicable experience modification changes during the FWCJUA policy term, will the Employer's tier assignment be changed?
    
    
18. 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?
    
    
19. If an Employer with multi-state operations makes application to the FWCJUA for his or her Florida operations, what premium and loss information shall be used to determine tier eligibility?
    
    
20. If an Employer with an FWCJUA policy provides a loss history report valued mid-term during his or her policy period to support a lower rated tier assignment, will the FWCJUA consider reassignment?
    
    
21. When determining tier eligibility with regard to medical-only claims, will the decision be based upon paid losses or upon total incurred losses?
    
    
22. Can the tier assignment change mid-term during a policy period?
    
    
23. 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?
    
    
24. If the Employer contends that his or her prior Insurer mismanaged claims, will the FWCJUA take the matter under consideration when determining tier eligibility?
    
    
25. 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?
    
    
26. 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 shall the premium and loss history information from each state be utilized to determine tier eligibility.
    
    
27. 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?
    
    
28. If an Employer has an experience rating modification of a .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?
    
    
29. Is a loss history valuation date the same as the date the Insurer generates the loss run report?
    
    
30. May an Employer qualify for Tier 1 or Tier 2, if the previous coverage was through a PEO?
    
    
31. 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?
    
    
32. 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?
    
    
33. 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?
    
    
34. 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?
    
    
35. For purposes of Tier 1 and Tier 2 eligibility for non-rated Employers, what does the FWCJUA consider the immediately preceding three years?
    
    
36. For purposes of Tier 1 and Tier 2 eligibility for rated Employers, what does the phrase "subsequent to the applicable rating period" refer to?