Florida Approves Two New Underwriting Association Plans

Florida Insurance Commissioner Kevin McCarty and the Office of Insurance Regulation have reviewed and approved substantive amendments to the plans of operation for Florida Comprehensive Health Association and Florida Medical Malpractice Joint Underwriting Association.

The two groups submitted amendments to their plans regarding the executive director, board members, senior management and other employees to provide greater transparency and accountability.

The amendments establish standards for conduct of the executive director, board members, senior management and other employees to provide greater transparency and accountability.

The amendments require that the executive director and senior management be subject to background investigations and that the Florida Division of Insurance Fraud will be notified within 48 hours of any suspected fraud and/or compromise of public trust by any employee or member of the board.

A code of ethics also addresses conflicts of interest and post-employment restrictions as well as clear guidance concerning gifts from vendors and other financial interests in vendors.

Over the past four months, the commissioner has approved similar amendments to plans of operation for Citizens Property Insurance Corporation, Florida Patient’s Compensation Fund, Florida Health Reinsurance Program and Florida Health Maintenance Organization Consumer Assistance Plan.

Last fall the office sent a letter to the joint underwriting associations and quasi-governmental insurers in the state requesting their Boards review the entity’s plan of operation and submit amendments for improving transparency, oversight and accountability.

Topics Florida Underwriting