FWCIGA October Board Meeting Report
Oct 3, 2008
The Florida Workers’ Compensation Insurance Guaranty Association (“FWCIGA”) recently held a Board of Directors (“Board”) meeting to receive updates on legal issues, claims, financial issues, and assessments for 2009.
The meeting was called to order by Chairman Tom Stahl, with a quorum of members in attendance.
Legal issues were reviewed. The FWCIGA has two main ongoing legal actions; both are moving forward.
A report on claims was given. The FWCIGA has 727 open claims, representing $269 million in reserves.
The Board reviewed the Financial Report. The FWCIGA holds a $191.4 million account balance.
The FWCIGA investment portfolio holds $193.5 million. This figure is up from 2007, despite the current market turmoil. As a response to the state of the financial market, a portion of the FWCIGA’s investments have been shifted from money market accounts to federal agencies. Some FWCIGA bonds have been affected, but not a significant amount.
The Receiver’s Report was presented. A hearing is scheduled to be held on December 11, 2008, for the Insurance Company of the Americas (“ICA”). The ICA wrote workers’ compensation insurance policies for professional employer organization companies, but currently has no policies in force due to ICA’s suspension. A legitimate third-party is attempting to acquire the ICA, and if this happens, a hearing will not be held.
The Board discussed assessments for 2009. It was determined that an assessment is not needed due to the cash flow projections, and the Board voted unanimously to not levy an assessment, and to notify all members of this interim decision. If an assessment is required for 2009, the FWCIGA could collect a maximum of $103 million.
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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