McCarty Calls For Greater Transparency, Accountability
Contact: Beth Scott
Tallahassee – Florida Insurance Commissioner Kevin McCarty sent a letter to the joint underwriting associations and quasi-governmental insurers in the state requesting them to provide their standards of conduct for directors, officers and senior management for review by the Office of Insurance Regulation.
"It is imperative that the residual markets in our state protect the interest of their policyholders by enhancing the post employment and conflict of interest policies in their plan of operations," McCarty said.
The letter requests each board to consider necessary amendments to provide greater transparency and accountability at its next board meeting, but no later than Dec. 15. Upon approval, the boards are required to submit amendments to the Office.
McCarty said all joint underwriting associations and quasi-governmental insurers should require background investigations for officers and senior management; notification of the Florida Division of Insurance Fraud within 48 hours of any suspected fraud or compromise of public trust by an employee; provisions regarding conflicts of interest and post-employment restrictions and clear guidance to employees about gifts or other financial interests from vendors.
Commissioner McCarty requested amendments to the following plans of operation: Healthy Kids, Florida Comprehensive Health Association, Florida Medical Malpractice JUA, Small Employer Health Reinsurance Board, Florida Birth-Related Neurological Injury Compensation Association, Florida Surplus Lines Service Office, Florida Health Maintenance Organization Consumer Assistance Plan, Florida Automobile JUA and Florida Workers' Compensation JUA.
In addition, the Office has been working with Citizens to prepare appropriate amendments to the Citizens plan of operation establishing stronger ethical standards and disclosure requirements similar to those governing state employees.