JUA vs. RF

edited October 2019 in Cook.Personal

It is unclear to me what the differences between the JUA and RF are, besides the servicing insurer. Is there a difference in how the rates are set?

Edit(additional question):
In the Cook wiki page it says the RF profits/losses/expenses are allocated based on the private voluntary business market share.

in the spring 2016 exam, the examiner report for question 8 says that for Reinsurance Facilities " Profit or loss is shared by insurers based on a formula."
Has this allocation changed?


  • Q1:

    Yes, the 2 differences between a JUA and RF are:

    • who services the policies
    • how rates are set

    There are a few more details in the wiki page, but the source text doesn't really explain how RF sets rates other than noting that RF's are essentially intended to be non-profit enterprises to fulfill the social good of universal availability of auto insurance (and rules can vary greatly from state to state.)


    Yes, the rules have changed. There is a footnote below the BattleTable in the wiki article for Cook.Personal that notes this.

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