Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida 2-20 General Lines Agent is advising a commercial client who owns a fleet of delivery vehicles. The client is having difficulty securing standard auto insurance due to a high loss history. The agent informs the client about an entity designed to provide coverage for applicants who are unable to obtain insurance in the voluntary market. Which entity is the agent referring to?
- AFlorida Life and Health Insurance Guaranty Association
- BFlorida Workers' Compensation Joint Underwriting Association (FWCJUA)
- CCitizens Property Insurance Corporation
- DFlorida Automobile Joint Underwriting Association (FAJUA)
Show answer & explanationAnswer & explanation
Correct answer: D. Florida Automobile Joint Underwriting Association (FAJUA)
The Florida Automobile Joint Underwriting Association (FAJUA) is Florida's residual market mechanism for automobile insurance. It provides coverage for applicants who, in good faith, are entitled to but are unable to procure automobile insurance coverage through the voluntary market.
Why the other options are wrong
- A. The Florida Life and Health Insurance Guaranty Association provides protection to policyholders in case a life or health insurer becomes insolvent, it does not provide insurance coverage.
- B. FWCJUA provides workers' compensation insurance for employers unable to find coverage, not automobile insurance.
- C. Citizens Property Insurance Corporation provides property insurance, not auto insurance, for those unable to obtain it in the voluntary market.
Florida Automobile Joint Underwriting Association (FAJUA)
FAJUA is Florida's residual market for automobile insurance, providing coverage to individuals and businesses who are unable to obtain auto insurance in the standard, voluntary market.
- Provides automobile liability, PIP, and physical damage coverage.
- Serves as a market of last resort.
- All admitted auto insurers in Florida are members.
- Governed by a Board of Governors and regulated by the OIR.
Memory trick: FAJUA is for cars, Citizens for homes, FWCJUA for workers.