How is the "servicing carrier" determined for a JUA?
As title says. If claims are handled by the servicing carrier rather than the insurer they applied to, how is the servicing carrier chosen?
It looks like you're new here. If you want to get involved, click one of these buttons!
As title says. If claims are handled by the servicing carrier rather than the insurer they applied to, how is the servicing carrier chosen?
Comments
The process of determining a servicing carrier can vary based on the JUA’s structure and the state or jurisdiction in which it operates, but the typical methods are:
The carrier’s experience and expertise in the specific insurance market.
Their ability to provide the necessary administrative services efficiently.
Their financial stability and claims-handling capacity.
Cost and efficiency of operations.
Ability to handle claims and provide policyholder services.
Experience in managing high-risk policies.
Rotation Among Member Insurers: In some JUAs, member insurance companies may rotate as servicing carriers on a periodic basis. This helps to spread the administrative burden among the member companies, ensuring that no single insurer is overwhelmed.
Specialized Insurers: Some JUAs may appoint insurers that specialize in high-risk insurance or have a particular expertise in the type of coverage the JUA provides, such as workers’ compensation, health insurance, or property insurance.