A Florida company in "Tier 2" under FWCJUA must pay what percentage higher than voluntary market rates?

In the Florida Workers’ Compensation Joint Underwriting Association (FWCJUA), companies classified in "Tier 2" face specific premium rates set significantly higher than those in the voluntary market. The correct answer indicates that a Tier 2 company must pay 50% more than the rates typically found in the voluntary market. This increase reflects the higher risk associated with companies that cannot obtain coverage from standard market insurers, leading them to the FWCJUA for workers' compensation insurance.

The rationale for such a premium structure is to encourage firms to improve their safety practices and reduce potential claims, ultimately guiding them back into the voluntary market where rates and coverages are generally more favorable. This tier-based system is designed to manage risks and ensure that those businesses that are considered higher risk are appropriately charged to reflect that status. By setting distinct tiers with corresponding rate increases, the FWCJUA aims to promote a more organized and efficient approach to underwriting for businesses that experience difficulties in securing adequate insurance coverage.