FWCJUA Board of Governors Meeting Report: Feb. 25

Feb 25, 2008

The Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) held a meeting of its Board of Governors (“Board”) on Friday, February 22, 2008. To view the agenda and meeting packet, click here.

Supplemental data for the Rates and Forms Committee was also included with the meeting materials. To view that information, click here.

The meeting was called to order by Vice-Chairman Dan Dannenhauer, with the following Board members in attendance: Brett Stiegel, Rick Hodges, Terry Butler, and Jim Ward. Also in attendance were FWCJUA’s General Counsel, Jim Watford, Bonnie Shek, Mark Mulvaney and Fred Bennett.

The General Council gave a brief legislative update and reported that while there are many rumors circulating about legislative interest in workers’ compensation reform and FWCJUA rating plans, there is no substantial evidence that the Florida Legislature is actually considering any action on these issues.

Mr. Stiegel then gave a report on the Operations Committee, which has requested Board approval for the service provider fee adjustment. This adjustment was proposed by Travelers for policies issued on behalf of the FWCJUA with effective dates between January 1, 2008 and December 31, 2008. The Operations Committee feels this increase is reasonable, within contract guidelines, and is 35 percent less than what Travelers could have requested. To view a report on the Operations Committee’s February 8 meeting, click here. The Board unanimously approved the Travelers fee adjustment.

Mr. Stiegel also detailed the selection process FWCJUA will use to issue a request for a service provider proposal in March, 2008. No Board action was requested on this issue.

Mr. Stiegel explained FWCJUA’s data disaster recovery procedures and document management and retention schedules. The Operations Committee proposed that the Board enter into a contract with SunGard to provide vaulting services for all critical FWCJUA data, including databases, document management of public records and working documents. This contract would require a $22,850 out-of-budget expenditure for 2008. The Board unanimously approved the additional expenditure, along with changes to the document management and retention schedules.

Mr. Hodges reported on the Rates and Forms Committee, which requested that the Board determine and authorize net reserves. The reserve amount was indicated in a Milliman report. The Board unanimously approved the recommendations set forth in the Milligan report.

In spite of the proposed increase in Travelers’ service provider fees for the 2008 contract year, the Board approved maintaining FWCJUA current rates effective January 1, 2008 with no effective increase. This motion was approved by the Board with no opposition.

Mr. Bennett gave a report on the Investment Committee, which included a request that the Board authorize an exception to FWCJUA’s investment policy by allowing four downgraded bonds currently held in the FWCJUA portfolio to remain. The Board approved the motion to keep the bonds in FWCJUA’s portfolio.

The meeting was then adjourned.

Should you have any questions or comments, please do not hesitate to contact this office.


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