The overall management of the Fund is provided by the Fund’s Chief Executive Officer. The Fund operates like a cooperative or mutual insurance company wherein the program is owned by the members/policyholders.
Any excess premiums collected by the Fund that remains after booking provisions for the satisfaction of claims and operating expenses is reported as ‘surplus as regards policyholders’. These surplus funds provide the financial underpinning for the Fund and may be returned to the members over time, based upon affirmative action by the Board of Trustees.
The FCBI Fund reports to the Florida Office of Insurance Regulation via quarterly financial filings, as well as submissions of an annual independent financial audit and an independent actuarial evaluation.
All Fund operations, other than claims administration, are handled through a licensed managing general agent, United Association Services, Inc. (“UAS”), which has a common affiliation with FUBA. UAS, through a contractual agreement with the Fund, is responsible for all marketing, underwriting, policy services, billing, premium accounting, payroll audits and other administrative services. UAS provides these services with a staff of 50 employees housed in the UAS offices in Tallahassee, Florida.
The Fund’s claims and loss control services are performed by USIS, based in Orlando, Florida. USIS is a wholly-owned subsidiary of Brown & Brown, a publicly-traded insurance brokerage and services firm.
USIS has a specific unit of adjusters and a claims supervisory team that are exclusively dedicated to and responsible for overall management of the Fund’s claims.
The Fund was an outgrowth from a special study committee that was established under the auspices of the Florida Citrus Packers Association. The committee evaluated the opportunities and challenges of creating a group self-insurance fund to serve the citrus industry, as had been successfully done by other business and industry sectors. The Fund commenced operations in February 1977 after securing approval from the Florida Department of Insurance.
In 1999, the Fund’s Board of Trustees voted to accept sponsorship and endorsement by the Florida United Businesses Association, Inc. (“FUBA”), at which time the Fund changed its name to the Florida Citrus, Business & Industries Fund (“FCBI”).
Prior to its partnership with FUBA, FCBI issued coverage directly to businesses engaged in citrus production, packaging and processing. Coincident with its sponsorship by FUBA, FCBI initiated the utilization of the independent agents’ network for marketing support, and expanded its underwriting guidelines to encompass a broader range of general business, including retail establishments, construction, and service industry businesses.