On November, 13, 2020, the FWCIGA Board of Directors met and discussed 2020 assessment cash flow impacts and future assessment needs. After deliberations, the Board determined the cash position to be adequate and no additional assessment is needed after the current 2020 assessment levy expires December 31, 2020. All new and renewal policies issued (incepting) effective January 1, 2021 are not subject to an assessment, nor surcharge.
The 2020 FWCIGA assessment covers new and renewal policies issued (incepting) from January 1st through December 31st 2020. Through September 30, 2020, FWCIGA has collected over $29M in assessment surcharges from its members. Premiums and adjustments relating to the 2020 policies, whether collected or adjusted in 2020 or during the three following years, are part of the 2020 assessment process and will require ongoing remittance and reporting.
If you have any further questions, please do not hesitate to contact us at (866) 909-9200 or send us a comment at https://fwciga.org/contactus/.
The FWCIGA Board of Directors certified the need for a 1.0% assessment on its member insurers at its June 18, 2019 meeting. The Florida Office of Insurance Regulation issued a 1.0% assessment levy on all new and renewal policies with effective dates beginning January 1, 2020 through December 31, 2020. Assessments will be due the FWCIGA quarterly after applying and collecting a 1.0% surcharge to all workers’ compensation and excess workers’ compensation policies.
FWCIGA regularly monitors whether adequate funds are available to pay covered claims and expenses for recently insolvencies. Currently, cash on hand combined with future receipts from the 2020 assessment is sufficient to cover the Association’s immediate claim obligations without delay. Should the need arise; FWCIGA is prepared to work with OIR to levy an assessment to secure additional funding. However, at this time, no assessment has been levied for 2021.
The National Conference of Insurance Guaranty Funds publishes on their website actual and projected assessment information for all P&C guaranty funds by quarter-end. The Assessment Liability Report can be found at https://www.ncigf.org/industry/guaranty-fund-assessment-liability-information/. The Assessment Liability Report includes – by a statutory account of each state guaranty fund – the maximum assessment, net assessable premium and actual and projected assessment information.
FWCIGA Assessment Reporting & Remittance Webinar