In short order, Florida Insurance Commissioner Kevin McCarty quickly directed all the joint underwriting associations and quasi-governmental insurers in the state to submit, for OIR review, their respective standards of conduct for directors, officers, and senior management.
"It is imperative that the residual markets in our state protect the interest of their policyholders by enhancing the post-employment and conflict-of-interest policies in their plans of operation," McCarty said.
His letter set a Dec. 15th deadline for boards to submit necessary amendments that reflect greater transparency and accountability in their operations.
Among his guidelines:
o All joint underwriting associations and quasi-governmental insurers should require background investigations for officers and senior management;
o The Florida Division of Insurance Fraud should be notified within 48 hours of any suspected fraud or compromise of public trust by an employee; and
o Provisions regarding conflicts of interest and post-employment restrictions, along with clear guidance to employees about gifts or other financial interests from vendors, must be demonstrated.
His mandate affected the following entities: Healthy Kids, Florida Comprehensive Health Association, Florida Medical Malpractice JUA, Small Employer Health Reinsurance Board, Florida Birth-Related Neurological Injury Compensation Association, Florida Surplus Lines Service Office, Florida Health Maintenance Organization Consumer Assistance Plan, Florida Automobile JUA and Florida Workers' Compensation JUA.
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