Florida Workers’ Compensation Insurance Guaranty Association Board of Directors Meeting Report–September 24, 2012
Sep 25, 2012
The Florida Workers’ Compensation Insurance Guaranty Association (“FWCIGA”) Board of Directors met on September 24, 2012.
After approving the June 19, 2012 meeting minutes, the Board heard a report on current insurer insolvencies from the Director of the Division of Rehabilitation and Liquidation, which is part of the Florida Department of Financial Services. It was noted that the deadline for filing claims with Southern Eagle Insurance Company falls during December 2012.
As of August 31, 2012, the FWCIGA has 727 open claims. Through the end of August 2012, there have been 450 new claims filed this year.
The FWCIGA has assets of $133 million as of July 31, 2012 and $40 million in claims as of August 3, 2012. The FWCIGA has an investment portfolio valued at $131 million as of the end of August 2012. Eight percent of the portfolio is cash; four percent is invested in short-term investments; and 88 percent is invested in long-term investments, such as government securities.
It was reported that the FWCIGA workgroup on large-deductible policies (“workgroup”) has met three times so far and will likely meet two more times prior to the next FWCIGA Board meeting, which is scheduled for November 30, 2012. Most of the workgroup’s discussions have focused on the quality and protection of collateral. The workgroup also has discussed whether there should be a greater financial review of companies that offered large-deductible policies.
With no further business before the Board, the meeting was adjourned.
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