Division of Rehabilitation and Liquidation
What is this bill for? Why am I being assessed?
UBO was liquidated in June 1998. The company did not have sufficient assets to pay all the claims and related expenses. Under the UBO membership application and agreement, in the event that there are insufficient funds to pay these expenses, the members of UBO agreed to be assessed in an amount sufficient to pay such expenses.
What gives the Department the authority to assess me?
The application you signed for workers compensation coverage created a binding contract which made you responsible for the assessment, inasmuch as it stated that if UBO did not have enough money to cover all its claims that the policyholders agreed to contribute an amount sufficient to cure such deficiency. In addition, the Department is given the authority for such assessment under Sections 624.474 and 631.311 through 631.331, Florida Statutes, as well as by the court order.
Why am I just now getting a bill when UBO was liquidated in 1998?
The Department has been in the process of identifying and paying claims over the last few years, as well as marshaling the available assets to determine if an assessment would be necessary. Unfortunately, enough assets were not available, making the assessment necessary.
Why did I get more than one bill? Do I owe for each bill, or are they duplicates?
Each bill is separate. The amount on each bill is owed. The reason for more than one bill is that when the policy was active the earned premiums were based on separate locations.
Where can I get a copy of the court order or other documents concerning calculation of the assessment?
The court order and other documents concerning the assessment calculation are posted on the Internet at this website.
What is the assessment for? For what will the money collected be used?
The money collected is used to pay claims of injured workers employed by the member companies of UBO and related expenses.
What is the assessment base?
The assessment base is the total of the expenses and claims already incurred, as well as a reserve for the claims and expenses expected to be incurred to finish up the company’s business.
How was the assessment calculated?
The assessment was based on earned premiums, not premiums received. Your bill was calculated by dividing the total deficiency for each year that you were insured by the fund’s total earned premium for that year. The resulting “assessment factor” for each year that you were insured is then multiplied by your earned premium for that year, giving you the amount of assessment that you owe for that year. Your total assessment for each year that you were insured is then added to determine your total assessment for all years, and that is the amount you owe.
What is the period to which the assessment pertains?
The assessment was calculated on all policies in force between 1994 and 1998. Each policyholder’s portion is based on the period for which its policy was in force.
Why should I have to pay for other people’s claims?
When you signed the insurance application, you agreed to pay a pro rata portion of all claims against the fund. You and the other policyholders authorized the company to assess you in the event there were insufficient funds to pay all claims and expenses.
I have already been billed. Why am I getting billed again?
If you received a bill previously, it would have been for additional premium due as a result of the year-end audit or for past due premiums. Such a bill would have been individual to your company. On the other had, all policyholders are receiving an assessment bill.
My company can’t afford to pay the entire amount due right now. Can we pay in installments?
Yes. To elect an installment payment plan, complete the enclosed Remittance Advice form. The installment payments will include an interest charge at the annual rate of nine percent (9%) simple interest. The monthly installment periods are 12 months for those owing $5,000 to $25,000 and 24 months for those owing more than $25,000. If you make the election, then a promissory note, payment schedule, and payment instructions will be provided at a later date.
Will I get a discount if I pay or elect an install payment plan after the due date of September 15, 2002?
No.
Does the payment or installment plan election form have to be received by September 15, 2002, to receive the discount, or does it just have to be postmarked by that date?
The payment or election form needs to postmarked on or before September 15, 2002.
What if I object to this assessment?
You must file a written answer or response on or before September 15, 2002, showing cause why a judgment should not be entered against you. If you timely file a written answer or response, the Court will schedule a hearing at a later date to determine the matter set for in your written answer or response and enter a judgment in accordance with its decision.
Where do I send my objection?
Any written answer or response must be in writing and filed with the Clerk of the Court as follows:
Clerk of Court,
Second Judicial Circuit
Leon County, Florida
301 S. Monroe Street
Tallahassee, FL 32301
Re: Case No. 98-0906
And to the Receiver’s counsel at:
Korge and Korge
230 Palermo Avenue
Coral Gables, FL 33134
Attention: UBO Objections
With a copy sent to the Receiver.
Where do I send my payment?
Receiver for UBO
Asset Recovery Section
2020 Capital Circle SE
Alexander Building, Suite 310
Tallahassee, Florida 32301
What form of payment is acceptable?
Checks, Money Orders, Visa and MasterCard. Please do not send cash.
Do you take any credit cards other than Visa and MasterCard?
No.
My company went out of business years ago and/or I cannot pay this bill? Am I still responsible for this bill?
You could still have a judgment entered against you or your business. You will still need to file an objection with the court.
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