FWCIGA Meeting Report–March 3
Mar 3, 2009
The Florida Workers’ Compensation Insurance Guaranty Association’s (“FWCIGA”) Board of Directors (“Board”) held its first quarterly meeting of 2009 on Monday, March 2. To view meeting notice, click here. The meeting agenda is attached for your review.
A letter from Florida Chief Financial Officer (“CFO”) Alex Sink was received by the Board on Friday, February 27. In the letter, CFO Sink expressed concern over the circumstances regarding the contract termination of former FWCIGA Deputy Director Michelle Lovern at the end of 2008.
At issue for CFO Sink was the transparency of Ms. Lovern’s contract terms, and whether her termination had been a violation of the Board’s by-laws. Board members disagreed on their recollection of the contract terms. A member indicated the position was intended to be only transitional, adding that it wasn’t in the 2009 budget. Another said the contract terms were unclear and shared CFO Sink’s concerns about the appearance of impropriety, even if the by-laws were essentially followed.
The CFO requested that the issue be discussed at the Board’s next meeting.
Board members agreed they have a fiduciary responsibility to examine contract terms, even if they satisfy by-law requirements, and that future contract procedures should be considered. The Board agreed to draft a letter to CFO Sink informing her that the issue of contract clarification and terms would be a formal agenda item at the Board’s next meeting.
In other matters:
With regard to the 2009 Florida Legislative Session that began Tuesday, March 3, the FWCIGA statute is affected by Senate Bill 1138, which authorizes the formation of Electric Cooperative Self-Insurance Fund.
SB 1138 also amends the statutory definition of “Self-Insurance Fund,” to exclude both the Electric Cooperative Self-Insurance Fund and the Independent Educational Institution Self-Insurance Fund from FWCIGA membership. The bill, which can be viewed by clicking here, has been filed in the Legislature for each of the past two years.
The Florida Workers’ Compensation Investment Committee recommended that the Board issue a Request for Proposal to contract with an independent investment consultant. The motion to issue a Request for Proposal was passed by the Board.
The FWCIGA’s financial report showed assets had increased by $14.6 million at the end of 2008, and the cash flow remained consistent despite difficult economic conditions. The favorable performance was due largely to a switch from bonds to money market funds, which put the FWCIGA in a good position going into 2009.
The meeting was adjourned.
A date has not been set for the Board’s next meeting.
Should you have any questions or comments, please contact Colodny Fassand Abate.
To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com.