- Reinsurance Committee Recommends Approval of 2013 FWCJUA Reinsurance Program
- December 7, 2012
- Law Firm: Colodny Fass Talenfeld Karlinsky Abate Webb P.A. - Fort Lauderdale Office
Also meeting on November 29, the FWCJUA Reinsurance Committee unanimously voted to recommend Board approval of the following framework for the FWCJUA's 2012 Reinsurance program:
- Purchase the $10,000,000 xs $20,000,000 catastrophe layer on a per-occurrence basis, with onereinstatement at 100 percent and a $10,000,000 Maximum Any One Life ("MAOL")
- Purchase the $10,000,000 xs $10,000,000 catastrophe layer on a per-occurrence basis, with onereinstatement at 100 percent and a $10,000,000 MAOL
- Purchase the $5,000,000 xs $5,000,000 layer on a per occurrence basis with one reinstatementat 100 percent
- Purchase the $4,000,000 xs $1,000,000 layer on a per-occurrence basis, with or without an Annual Aggregate Deductible ("AAD") preferably with an AAD of $300,000, and a reinstatement pattern of "1 free, 1 @ 50 percent, 1 free"
- Terminate all existing reinsurance coverages on a cut-off basis effective December 31, 2012
- Provide FWCJUA Staff and the FWCJUA's reinsurance broker with the flexibility to negotiate the best economic outcome with these directives
The Committee also unanimously agreed to present for Board consideration, without recommendation, an additional reinsurance option for a per-person coverage excess of $10,000,000, possibly recognizing a co-participation in the $4,000,000 xs $1,000,000 layer.
Additionally, the Committee agreed to authorize FWCJUA Staff to pursue a commutation with Excalibur Re.
Ms. Torrence noted that Excalibur Re continues to lag in overdue payments, with an approximate $15,000 now added to the already overdue $42,000. Excalibur Re would like to consider a commutation before the end of the year, she added. The FWCJUA Staff will begin the process immediately.
With no further business before the Committee, the meeting was adjourned.