JUA vs. RF
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?
Comments
Q1:
Yes, the 2 differences between a JUA and RF are:
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.)
Q2:
Yes, the rules have changed. There is a footnote below the BattleTable in the wiki article for Cook.Personal that notes this.
Can you explain what it means for policy to be serviced by a servicing carrier vs an insurer? What is a servicing carrier exactly? I haven't seen that terminology before
See my response from Sep 2022 to a question on this issue in the link:
https://battleacts6us.ca/vanillaforum6us/discussion/27/jua-and-rf#latest:~:text=I%20think%20Graham%27s,their%20face%2Dvalue.
Let me know if this does not answer your question.