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Old 03-19-2015, 06:09 PM
Nate! Nate! is offline
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Default Bartlett JUA's

Page 9.39 talks about Joint Underwriting Associations for Auto.

Second paragraph mentions, "If an applicant submitted to an insurer ... is found to be unacceptable, the application is forwarded to the JUA servicing insurer... A servicing insurer issues the policy, handles the collection of premiums and claims..."

Then the third paragraph says, "Servicing insurers receive a percentage of the premiums written to cover costs of placing..."

Sooo, I'm confused. With JUA's the servicing insurers are THE companies servicing and doing EVERYTHING for the residual risks, so what's the third paragraph talking about? It sounds like they don't keep all the premiums, but who's getting the rest of it?

Is the intent that really all the companies in the state share in premiums and losses according to market share, but the servicing insurers in the JUA will take more of the premium because of the fact they're handling claims and doing other stuff?


Also there's mention that they carefully screen all applicants to the JUA. But isn't the JUA the last resort provider? Where will residual risks go if they don't get into the JUA?
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