REQUEST FOR LETTERS OF INTEREST
FLORIDA AUTOMOBILE JOINT UNDERWRITING ASSOCIATION
The FAJUA is the Joint Underwriting Association created
for the equitable apportionment of automobile liability and other motor
vehicle insurance apportioned to applicants who are in good faith entitled to,
but are unable to procure such insurance through ordinary methods. The FAJUA
performs many of its insurance functions through designated members acting as
servicing carriers. The FAJUA Board of Governors appoints the servicing
carriers pursuant to the Plan of Operation. The Plan outlines the duties of
the servicing carrier including underwriting, policy issuance, premium
collection, accounting, statistical services, data processing, claims
handling, record keeping and agency provision.
The FAJUA is soliciting “Letters of Interest” from
qualified members of the FAJUA to act as servicing carriers to perform
services on behalf of all members of the FAJUA. in accordance with the terms
and conditions set forth in the Plan of Operation.
A respondent submitting a Letter of Interest has no
vested right to an award or other disposition of its response as the response
is merely an offer by the respondent that the FAJUA may in its sole discretion
accept or reject.
MINIMUM ELIGIBILITY REQUIREMENTS
- A respondent must be a member of the FAJUA.
- A respondent must have a policyholder surplus of
not less than $20 million as evidenced by an audited financial statement
provided for in the Florida Insurance Code, or by its most recent Annual
Statement filed with the Florida Department of Financial Services.
- A respondent must have a current A.M. Best’s rating
of at least A-.
- A respondent must have written in Florida an
average annual net written premium for private passenger auto lines over the
past three years of at least $25 million and an average annual net written
premium for commercial auto lines of at least $5 million for the same period.
- A respondent must be licensed and writing on a
direct basis, in Florida, automobile physical damage and liability insurance
on both private passenger and commercial motor vehicles for a minimum period
of five years ending with the calendar year completed immediately prior to
submission of it’s Letter of Interest.
- A respondent must warrant and represent to the
Board that it has the ability to: 1) provide policy issuance and premium
collection services for all classes of risk, statewide; 2) service insurance
claims in every state and Canada; 3) make financial responsibility filings
wherever required.
- A respondent must warrant and represent
to the FAJUA that it will provide all servicing carrier services in accordance
with the Service Standards as contained in the Plan of Operation or as
instructed by the FAJUA.
- A respondent must agree that in performing servicing
carrier services it will use staff, method and systems of a comparable quality
to those that the respondent uses for its Florida motor vehicle voluntary market
business.
This Request for Letters of Interest does not commit the
FAJUA to award a contract to a respondent or pay any costs incurred in the
preparation of such a response. The FAJUA reserves the right to accept or
reject any or all responses received as a result of this Request for Letter of
Interest. Further, the FAJUA expressly reserves the right to negotiate with
some, all or none of the respondents to this request.
RESPONSE TO THE REQUEST FOR LETTER OF INTEREST
A respondent to this Request for Letter of Interest shall
make a sealed submission of one original copy of its response to the following
address:
Florida Automobile Joint Underwriting
Association
Attention: Eugenia Tyus
1425 Piedmont Dr. East, Ste. 201A
Tallahassee, FL 32308
INFORMATION REQUIRED IN RESPONSE TO
REQUEST FOR LETTER OF INTEREST
The respondent must provide all the information required by
this Request for Letter of Interest. This would include written verification of
the general requirements listed above, including policyholder surplus, AM Best
rating and Florida based written premium.
The FAJUA is encouraging innovation in how respondents
price their proposal to perform services. It is anticipated that any contract
that might result from any respondent’s Letter of Interest would be for a period
of three years.
INQUIRIES
All inquiries regarding this Request for Letter of Interest
should be submitted in writing to the FAJUA General Manager at the above-listed
address. No phone calls will be accepted.
| 
