CopyCited 5 times | Published | Florida 1st District Court of Appeal
...Because the laws governing MEWAs are so recent, and consequently have not been the subject of much litigation, this appeal raises many issues of first impression. Appellants and cross-appellants appeal the order of the trial court authorizing an assessment against appellants under Section 624.4415, Florida Statutes (1989)....
...rves. In early 1989, the department conducted an examination and concluded that IFF was substantially in arrears in paying claims and that the trust was insolvent in spite of the trust's statements reporting a positive net worth. On October 1, 1988, Section 624.4415 became effective, [2] providing that MEWAs would be authorized to assess employer/participants for shortfalls in funds if the arrangement's balance of funds showed a deficit....
...Brant,
141 So.2d 777, 778 (Fla. 3d DCA) (property in the hands of a receiver is legally in possession of the court), cert. denied,
146 So.2d 752 (Fla. 1962). As to issue III, appellants claim they had no notice of assessment liability, thus the assessment is void. Section
624.4414(2), Florida Statutes (1989), provides: Each employer participant shall have a contingent assessment liability pursuant to s.
624.4415 for payment of actual losses and expenses incurred while the policy was in force. Section
624.4415(2) provides: For those multiple-employer welfare arrangements which have a valid certificate of authority before October 1, 1988, the arrangement shall comply with this section and s.
624.4414 by September 30, 1989. Section
624.4414(3) requires each policy to contain a statement of the assessment liability....
...gainst employers. This is not the test, however. Appellants must show that an ERISA provision is inconsistent with the state's assessment law, and this they have failed to do. Appellants next claim in issue VII that even if the assessment is proper, Section 624.4414(2) [6] limits assessments to actual losses; thus, the trial court erred in including the 50 percent uncollectible assessment factor, 15 percent costs for levying the assessment, 7 percent claims evaluation costs, and the 5.6 percent receiver's administrative expenses, in reaching its total assessment base for claims filed after October 1, 1989. On the contrary, Section 624.4415(5)(d) provides: The department shall have the authority to assess, as set forth in this section, all employers for all necessary funds in the event of the liquidation or the rehabilitation of the multiple-employer welfare arrangement. The phrase in Section 624.4414(2) that imposes assessment liability on employers for "payment of actual losses and expenses *440 incurred while the policy was in force" includes the funds necessary for liquidation as an expense incurred when the policy was in force....
...As to issue IX, the providers claim that the employers should be assessed both before and after October 1, 1989, because the IFF contract for benefits makes no distinction between years in which an employer shall be assessed. Nevertheless, we read Section 624.4415(2), which requires MEWAs with certificates of authority issued before October 1, 1988 to comply with the assessment statutes by September 30, 1989, as a statement that an assessment provision would not be incorporated into MEWA contr...
...1989, which stated, "I hereby certify that the International Forum of Florida Health Benefit Trust has sent the mutually agreed upon notification regarding the multiple employer welfare arrangement assessability clause under the authority of Statute 624.4415, to all employers enrolled in the Trust according to instructions set forth by the Department of Insurance." We do not find this document anywhere in the record. Sosso then testified that a computer list was generated indicating the employers to whom the notice was sent, and that that document was among those seized by the state and in possession of the department. [5] See, e.g., § 624.441(1), Fla. Stat. (1989). [6] See Section 624.4414(2), supra issue III, at page 438.
CopyPublished | District Court of Appeal of Florida | 1992 Fla. App. LEXIS 9999
...Because the laws governing MEWAs are so recent, and consequently have not been the subject of much litigation, this appeal raises many issues of first impression. Appellants and cross-appellants appeal the order of the trial court authorizing an assessment against appellants under Section 624.4415, Florida Statutes (1989)....
...es. In early 1989, the department conducted an examination and concluded that IFF was substantially in arrears in paying claims and that the trust was insolvent in spite of the trust’s statements reporting a positive net worth. On October 1, 1988, Section 624.4415 became effective, 2 providing that MEWAs would be authorized to assess employer/participants for shortfalls in funds if the arrangement’s balance of funds showed a deficit....
...denied,
146 So.2d 752 (Fla.1962). As to issue III, appellants claim they had no notice of assessment liability, thus the assessment is void. Section 624.-4414(2), Florida Statutes (1989), provides: Each employer participant shall have a contingent assessment liability pursuant to s.
624.4415 for payment of actual losses and expenses incurred while the policy was in force. Section
624.4415(2) provides: For those multiple-employer welfare arrangements which have a valid certificate of authority before October 1, 1988, the arrangement shall comply with this section and s.
624.4414 by September 30, 1989. Section
624.4414(3) requires each policy to contain a statement of the assessment liability....
...oyers. This is not the test, however. Appellants must show that an ERISA provision is inconsistent with the state’s assessment law, and this they have failed to do. Appellants next claim in issue VII that even if the assessment is proper, Séction 624.4414(2) 6 limits assessments to actual losses; thus, the trial court erred in including the 50 percent uncollectible assessment factor, 15 percent costs for levying the assessment, 7 percent claims evaluation costs, and the 5.6 percent receiver’s administrative expenses, in reaching its total assessment base for claims filed after October 1, 1989. On the contrary, Section 624.4415(5)(d) provides: The department shall have the authority to assess, as set forth in this section, all employers for all necessary funds in the event of the liquidation or the rehabilitation of the multiple-employer welfare arrangement. The phrase in Section 624.4414(2) that imposes assessment liability on employers for “payment of actual losses and expenses *440 incurred while the policy was in force” includes the funds necessary for liquidation as an expense incurred when the policy was in force....
...As to issue IX, the providers claim that the employers should be assessed both before and after October 1, 1989, because the IFF contract for benefits makes no distinction between years in which an employer shall be assessed. Nevertheless, we read Section 624.4415(2), which requires MEW As with certificates of authority issued before October 1, 1988 to comply with the assessment statutes by September 30, 1989, as a statement that an assessment provision would not be incorporated into MEWA cont...
...1989, which stated, "I hereby certify that the International Forum of Florida Health Benefit Trust has sent the mutually agreed upon notification regarding the multiple employer welfare arrangement assessability clause under the authority of Statute 624.4415, to all employers enrolled in the Trust according to instructions set forth by the Department of Insurance.” We do not find this document anywhere in the record. Sosso then testified that a computer list was generated indicating the employers to whom the notice was sent, and that that document was among those seized by the state and in possession of the department. . See, e.g., § 624.441(1), Fla.Stat. (1989). . See Section 624.4414(2), supra issue III, at page 438.
