McCarty Announces Requirements To Trigger Commercial Insurance Unit Have Been Met
TALLAHASSEE (8/18/2006) – Florida Insurance Commissioner Kevin McCarty announced today that the requirements to activate a state run commercial insurance unit have been met. The statute (F.S. 627.351 (5)) that allows for the creation of a commercial property joint underwriting association (JUA) plan mandates that a set number of applications must be received to exhibit a need for such a plan.
"This is yet another demonstration of what we have been hearing from businesses across our state, but because of the triggering requirements it is the most important feedback we have received," said McCarty. "We will continue working to complete this plan as quickly as possible so we can bring some relief to those businesses faced with losing their insurance in the middle of hurricane season."
For the JUA to be launched, a minimum of 100 applications have to be received by the Florida Market Assistance Plan (FMAP) within a 3-month period. FMAP must try to find coverage and unless 80 percent of those applicants receive a quote for insurance coverage, the new JUA is triggered. FMAP reported that it has received the 100 applications, shopped for coverage, and only 11 percent of the applicants received even tentative quotes for coverage. Therefore, the trigger requirement has been met for commercial property insurance.
The first meeting of the JUA's new board of directors is scheduled for next Friday, at 10:00 a.m., in Tallahassee. At the meeting, the Board is expected to decide on rates and forms for its first policies, and make plans to make more coverage available quickly by reinsuring commercial insurance companies. The meeting will be held in Room 116 of the Larson Building, located at 200 East Gaines Street.
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