State-run insurer for businesses now open

The group was officially created when at least 80 percent of applicants were unable to find coverage.

By TOM ZUCCO
Published August 19, 2006

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The state-run insurer for businesses that can't find property coverage in the marketplace just went from temporary to permanent.

Although the commercial joint underwriting association, or JUA, was already up and running and could have continued until November, regulators said Friday that a state law was triggered that formally created the organization.

The trigger for the JUA: a minimum of 100 applications within a three-month period and an inability to find private-market coverage for at least 80 percent of those applicants.

Out of the 100-plus applications the state received by Friday, only 11 percent received even tentative quotes.

Through the new organization, the state will back the policies written by private insurers by providing reinsurance or an extra layer of insurance bought by insurers much like the Florida Hurricane Catastrophe Fund already does for homeowners insurance. If there's a catastrophe, the state could borrow money to pay claims and assess business property owners later to pay off those debts.

Though the deal will make commercial insurance available, it's not expected to keep the lid on rising insurance rates.

The first public meeting of the JUA's 13-member board of governors will be Friday in Tallahassee. At the meeting, board members are expected to decide on rates and forms, and discuss ways to make more coverage available quickly. A copy of the agenda can be found at www.floir.com.

Board members, selected by Chief Financial Officer Tom Gallagher, had not been named as of Friday.

Tom Zucco can be reached at zucco@sptimes.com or (727) 893-8247.