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Compensation Fund (FPCF) to provide liability coverage in excess
of basic policy limits for its participant members. Each
hospital was required to pay a yearly fee and assessments.
Petitioner first became a participant in FPCF sometime
during the fund year 1977-78. Pursuant to the FPCF statute, as
in effect in the 1977-78 time frame, petitioner was self-insured
for the first $100,000 per claim of liability and any excess
liability was to be paid by FPCF. As of November 30, 1979,
petitioner had established a reserve fund of $345,000 for this
purpose. Subsequent to June 30, 1982, petitioner was insured for
medical malpractice with a commercial insurance carrier, and the
reserve fund reverted to working capital.
FPCF made a series of assessments against its members to
cover the deficits arising from the costs of the claims exceeding
the membership fees it had collected with respect to a fund year.
These assessments represented a proration of the fund deficits
among the members based on a formula composed of factors such as
type of provider, net fees, and number of providers in each
class. As of September 30, 1982, petitioner had been assessed
$58,594 for coverage provided for the fund years 1977-78, 1978-
79, and 1981-82, and $56,221 for the fund year 1979-80, for a
total of $114,815.
Member hospitals, including petitioner, filed a law suit
against the State of Florida Department of Insurance and FPCF in
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