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P. 3 <br />In the first year of operation, 54 members joined the fund with a total <br />premium of $1,580,787. This premium was nearly $280,000 less than the standard <br />rated premium of these members. <br />Seventy precent of the premium dollar is available for the payment of <br />losses. In the first year, 70% of the premium amounted to $1,106,551. Total <br />Incurred losses for.the first year were $1,068,381 or 67.6% of the total premium, <br />which leaves a surplus after the year-end audit of over $38,000. With approval <br />-of the Bureau of Worker's Compensation, the Board of Trustees may return this <br />surplus to members as a dividend. <br />In addition to total incurred losses falling well within the allocated loss <br />fund, no member penetrated excess coverage on any claim the first year, There <br />were 14 members, however, who closed the year with loss ratios greater than <br />70%. Of these 14 members, only 2 have maintained loss ratios,over 70% for the <br />second year to date. <br />The 300 of premium dollar that is not allocated to the loss fund is used <br />to pay the fixed costs associated with the fundis operation. The fixed costs <br />a4 broken down as follows: 15.45%1 pays for specific & aggregate <br />reinsurances with Lloyd's of <br />London (including the Florida <br />premium receipt tax) <br />9.20% is the service fee of Risk Manage- <br />ment Services, Inc. <br />3.3502 is the Dept. of Commerce tax for <br />•funding of the Special Disability <br />(Second Injury) Fund, and the <br />Worker's Compensation Administration <br />Fund <br />2.00% is the administrative fee of Florida <br />League of Cities, Inc. <br />30.00% TOTAL <br />SEP 191979 Boa 41 FAvF. 52 <br />