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Joint Underwriting Association

Type of insurance mechanism established in a state to act as the market of last resort.;

A joint underwriting association (JUA) is another type of insurance mechanism established in a state to act as the market of last resort. Employers may apply and obtain a policy underwritten by the JUA, as opposed to a specific insurance carrier. With a self-funded JUA, workers compensation insurance carriers in the state are not required to participate in any sharing of the JUA's losses. Instead, the policyholders of the JUA share in all the losses of the JUA, potentially requiring that policyholders receive assessments for excess losses generated by the JUA policies.

The state of Florida established a self-funded workers compensation joint underwriting association effective 1994. To date, it is the only state using this mechanism and its employers have not received any assessments, although there is a significant differential between the voluntary market and JUA rates. Florida JUA policies have the limitation that they are not able to offer additional coverages such as the extension of coverage into other states due to jurisdictional limitations.

The material in this document has been prepared and shared for informational purposes only and should not be relied upon as legal advice on any particular situation.